German Businesses Remain Confident In Malaysia Amid Global Uncertainties - MGCC

KUALA LUMPUR, July 7 (Bernama) -- A majority of German companies in Malaysia remained highly confident in the country’s business environment, according to the latest World Business Outlook Spring 2025 Survey.

The survey, conducted by the Malaysian-German Chamber of Commerce and Industry (MGCC) revealed that 91 per cent of German businesses rate their current business situation in Malaysia as ‘good’ or ‘satisfactory’, underscoring sustained optimism despite a volatile global economic landscape.

The biannual survey is part of a global initiative by the German Chambers of Commerce Abroad (AHK) conducted from March 17 until April 15, 2025, with 104 respondents from MGCC member companies.

"This latest edition reflects a growing sense of resilience, with 93 per cent of respondents expecting business conditions in Malaysia to remain the same or improve over the next 12 months — a 30 per cent increase compared to 2024.

"This jump signals a rebound in sentiment and renewed trust in Malaysia’s position as a stable and attractive business destination," said MGCC in a statement today.

According to the survey, geopolitical tensions, ongoing supply chain disruptions, and uneven economic recoveries continue to create uncertainties worldwide.

In this context, 85 per cent of companies in Malaysia view the local economic outlook as stable or favourable, although this marks a 12 per cent decline from the previous year, indicating tempered expectations amid ongoing global headwinds.

MGCC executive director Jan Noether said the results reaffirm Malaysia’s position as a strategic business and logistics hub in Southeast Asia, underpinned by its stable infrastructure, competitive cost structure, skilled and multilingual workforce, and strong bilateral relations with Germany and the broader European Union.

"As companies seek resilient, future-ready markets to grow and invest in, Malaysia continues to stand out as a reliable and attractive destination for German businesses across various sectors.

"Despite a complex and evolving global landscape marked by geopolitical tensions, shifting trade policies, and economic uncertainty, German companies in Malaysia remain strongly optimistic about the country’s long-term prospects," he said.

The survey also revealed concerns over the impact of the recent United States trade tariffs, with 38 per cent of companies anticipating a minor impact on local operations and 20.4 per cent citing a major impact, largely due to expected increases in input costs, shifts in consumer behaviour, and reduced export demand.

"Interestingly, 36 per cent of respondents said the tariffs would have no impact, with some noting potential opportunities for Malaysian-based operations to fill emerging supply chain gaps," it added.

-- BERNAMA