Businesses in Malaysia less optimistic: Grant Thornton
BUSINESSES in Malaysia are less optimistic about the economy this year, said global advisory firm Grant Thornton.
Managing partner of SJ Grant Thornton, Datuk N.K. Jasani, said there will be a polarisation of business confidence between Europe and the rest of the world in 2012.
However, he said the threat of total meltdown in the eurozone means business leaders remain uncertain about this year and that uncertainty is sapping confidence and choking business growth prospects.
"The business optimism results mirror the perilous position of the global economy, stronger results for key markets such as Brazil, China and the US being offset by the lack of a clear resolution to the sovereign debt crisis in Europe," he said in a statement last week.
According to Grant Thornton's International Business Report (IBR), the global business confidence was balancing on a knife edge into 2012.
It said with the global economic outlook dominated by the crisis in the eurozone, fears are increasing that business growth will become more difficult than in 2011.
The research also suggest global trade is suffering.
Having risen by 10 percentage points in third quarter, the proportion of businesses citing a shortage of orders rose again in fourth quarter, up five percentage points to 37 per cent globally.
This result was largely driven by an increase of nine percentage points across the eurozone, but businesses in North America and Brazil, Russia, India and China are also suffering.
Jasani said the prospects for growth are mixed around the world. Businesses have to work harder to maintain margins and competitiveness in the face of powerful economic headwinds.
"This threatens to undermine business prospects around the world, not just in Europe. Businesses in the higher growth economies such as China and Brazil remain positive for now but Europe is the world's largest single market and consequently a key trading partner.
"The effects of a further downturn will resonate even in these high growth markets and beyond," he added.
Source: New Straits Times
Date : 3 January 2012
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