Businesses cautiously optimistic for economic outlook in first half 2026

KUALA LUMPUR, Jan 16 — Businesses remain cautiously optimistic about economic conditions in the first half of 2026, although high operating costs continue to be their main concern, according to a survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia.

The survey, conducted in December 2025, involved 1,200 firms across various sectors.

It found that 58% of respondents expect business performance to improve in 1H26.

However, 72% cited rising operating costs as their top challenge.

"While there is optimism, cost pressures remain a significant hurdle for many enterprises," ACCCIM President Datuk Low Kian Chuan said.

The manufacturing sector showed the highest optimism at 65% expecting improvement.

Services and retail sectors reported more moderate confidence levels.

Key cost drivers identified include raw materials, labor, and energy expenses.

The survey also noted concerns about global economic uncertainties and supply chain disruptions.

ACCCIM plans to release detailed recommendations to address cost issues in February 2026.

For more information, visit the ACCCIM website or contact their media office.