Latest news with #HSBCMalaysia
Malaysia Sun
9 hours ago
- Business
- Malaysia Sun
Malaysian businesses increase connections with China, HSBC survey shows
KUALA LUMPUR, June 13 (Xinhua) -- Malaysian businesses are adapting their trade strategy to significantly increase connections with China (61 percent) amid global uncertainties, a survey by HSBC showed. The bank said in a statement on Thursday that Malaysian businesses have been hit with surging costs and supply chain disruptions and are having to rethink their strategy and planned investments as U.S. tariffs and shifting trade policies continue to impact their enterprises. Considering current trade dynamics, Malaysian businesses have also been keen on increasing their connections with South Asia (55 percent) and North Asia (44 percent). Meanwhile, the survey found that currently, the biggest concern for more than half of Malaysian businesses (55 percent) is rising costs due to tariffs and other trade-related factors. In response to this, 42 percent of Malaysian businesses have shifted their focus to domestic markets, prioritizing local customers and reducing international exposure while 40 percent of businesses plan to do the same. In addition, 37 percent of Malaysian businesses have increased their inventory levels to manage supply disruptions, with 49 percent planning to do so as well. Despite global uncertainties, 250 Malaysian-based companies surveyed are optimistic about their international growth but are in need of external strategic advice on the matter. About 91 percent of companies are confident they can grow international trade, ahead of the 89 percent global average. More encouragingly, 73 percent think that trade uncertainty has encouraged their business to evolve and explore new opportunities while 55 percent are seeking strategic advice on international expansion, restructuring or supply chain realignment. "Despite the challenges posed by the uncertain tariff and trade landscape, businesses in Malaysia are demonstrating resilience and adaptability in the way they operate," said Omar Siddiq, chief executive officer and head of banking, HSBC Malaysia. While supply chains may be further reconfigured, he noted there continues to be strong potential for local companies to leverage on Malaysia's strong trade ties particularly in Asia.
BusinessToday
10 hours ago
- Business
- BusinessToday
Malaysian Businesses Rethink Strategy Amid Rising Trade Costs, HSBC Survey Reveals
Malaysian companies are feeling the pressure of rising trade costs and global supply chain disruptions, forcing a strategic shift in operations and investment plans, according to HSBC's 2025 Global Trade Pulse Survey. The survey, which captured insights from over 5,700 companies across 13 markets — including 250 from Malaysia — revealed that 55% of Malaysian businesses cite rising costs from tariffs and trade policies as their top concern. In response, 42% have already refocused on domestic markets, with another 40% planning to follow suit. Meanwhile, 37% have increased inventory levels to cushion against supply disruptions, with nearly half preparing to do the same. Despite these challenges, Malaysian firms remain optimistic as 91% believe they can grow international trade, surpassing the global average of 89%. Encouragingly, 73% revealed that trade uncertainty has prompted innovation and business evolution, while 55% are actively seeking strategic advice on restructuring, supply chain realignment and overseas expansion. 'The uncertain tariff and trade landscape is driving Malaysian businesses to adapt with remarkable resilience. 'While global supply chains are shifting, Malaysia's strong trade links, particularly in Asia, offer significant growth potential,' HSBC Malaysia Chief Executive Officer and Head of Banking Datuk Omar Saddiq said. The survey also shows a clear pivot in trade focus, with Malaysian businesses increasing engagement with China (61%), South Asia (55%) and North Asia (44%). Interest in markets outside of Asia remains steady, with 32% planning increased trade with both Europe and the US, especially in high-value sectors like electronics and semiconductors. As they navigate cost pressures, 64% of Malaysian firms have adopted new technologies, while nearly half (48%) have developed new products or services to remain competitive. Strategic shifts toward regional growth (57%) and internal efficiency improvements (54%) are also gaining traction, the survey showed. To manage working capital under strain, the survey highlighted that businesses identified cash and liquidity management (64%), better payment terms (56%) and supply chain finance (55%) as the most helpful support measures. With over 70% expecting prolonged cost increases and facing an average 18% drop in revenue, the path forward is clear: Businesses must stay agile and form strong strategic partnerships to thrive in an increasingly complex global trade environment. Related
The Sun
a day ago
- Business
- The Sun
Rising costs top concern of Malaysian businesses: HSBC survey
PETALING JAYA: Malaysian businesses are grappling with rising costs and persistent supply chain disruptions, prompting them to reconsider their strategies and investment plans. According to HSBC's 2025 Global Trade Pulse Survey, the ongoing changes in tariffs and evolving trade policies continue to exert pressure on local companies, reshaping the landscape for growth and operations. Insights from the survey capture the perspectives and intentions of more than 5,700 international firms across 13 markets, including Malaysia, on the challenges and outlook related to tariffs and global trade. The survey found that, currently, the biggest concern for more than half of Malaysian businesses (55%) is rising costs due to tariffs and other trade-related factors. In response to this, 42% of Malaysian businesses have shifted their focus to domestic markets, prioritising local customers and reducing international exposure while 40% of businesses plan to do the same. In addition, the survey showed 37% of Malaysian businesses have increased their inventory levels to manage supply disruptions, with 49% planning to do so as well. Despite global uncertainties, 250 Malaysia-based companies surveyed are optimistic about their international growth but need external strategic advice on the matter, the findings showed. Furthermore, 91% of companies are confident that they can grow international trade, surpassing the 89% global average. More encouragingly, 73% believe that trade uncertainty has prompted their business to evolve and explore new opportunities, while 55% are seeking strategic advice on international expansion, restructuring or supply chain realignment. Considering current trade dynamics, Malaysia-based businesses are adapting their trade strategy to significantly increase connections with China (61%), South Asia (55%) and North Asia (44%). Beyond Asia, Malaysian businesses also plan to trade more with Europe and the United States (both 32%). HSBC Malaysia CEO and head of banking Datuk Omar Siddiq said despite the challenges posed by the uncertain tariff and trade landscape, businesses in Malaysia are demonstrating resilience and adaptability in the way they operate. 'While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage on Malaysia's strong trade ties, particularly in Asia. Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors,' he said in a statement. While managing costs is top of mind for Malaysian businesses during this period of global uncertainty, the HSBC survey noted that companies are using the opportunity to innovate and adopt new technologies to boost operational efficiencies. It showed that 64% of Malaysian businesses have adopted new technology or digital platforms, while 48% have developed new products and services. Other growth opportunities that Malaysian businesses are considering include shifting their focus to domestic or regional growth (57%) and improving their internal efficiencies or changing their cost structures (54%). During the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64%), followed by improved payment terms with buyers and suppliers (56%) and supply chain finance (55%). 'With over 70% of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business, and businesses facing an average 18% drop in revenue, the imperative for strategic adaptation is clear. 'Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility, but strong partnerships to ensure sustained growth in a shifting global economy,' Omar said.
New Straits Times
2 days ago
- Business
- New Straits Times
HSBC Survey: Malaysian firms turn inward amid rising trade pressures
KUALA LUMPUR: Around 42 per cent of Malaysian businesses have shifted their focus to the domestic market, prioritising local customers and minimising exposure to global uncertainties, according to HSBC's 2025 Global Trade Pulse Survey. This strategic pivot reflects efforts by companies to mitigate the effects of tariffs and other trade-related challenges on their operations. Among the 250 Malaysian firms surveyed, more than half flagged rising costs from tariffs and trade barriers as a key concern. To address ongoing supply chain disruptions, 37 per cent have already increased inventory levels, while another 49 per cent plan to do the same, signalling a broader push towards strengthening supply chain resilience. Despite the global uncertainties, optimism about international growth remains high among Malaysian businesses but they need external strategic advice on the matter. 91 per cent of them expressed confidence in their ability to grow international trade, surpassing the global average of 89 per cent. Encouragingly, 73 per cent of respondents believe that trade uncertainty has prompted their businesses to evolve and seek new opportunities. Meanwhile, more than half are actively seeking strategic advice on international expansion, business restructuring or supply chain realignment. Considering current trade dynamics, 61 per cent of the local businesses are adapting their trade strategy to significantly increase connections with China, followed by South Asia (55 per cent) and North Asia (44 per cent). 32 per cent of them plan to trade more with Europe and the United States. HSBC Malaysia chief executive officer and head of banking Datuk Omar Siddiq said the businesses in Malaysia continue to show resilience and adaptability in navigating the challenges posed by the uncertain tariff and trade landscape. "While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Malaysia's strong trade ties, particularly in Asia. "Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors," he said in a statement. The survey also pointed out that while managing cost remains a top priority for Malaysian businesses amid global uncertainties, many are seizing the opportunity to innovate and adopt new technology to boost operational efficiencies. HSBC said 64 per cent of Malaysian businesses have adopted new technology or digital platforms, while 48 per cent have developed new products and services. Other growth opportunities that the businesses are considering include shifting their focus to domestic or regional growth (57 per cent) and improving their internal efficiencies or changing their cost structures (54 per cent). The survey also indicates that during the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64 per cent), followed by improved payment terms with buyers and suppliers (56 per cent) and supply chain finance (55 per cent). "With over 70 per cent of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business and businesses facing an average 18 per cent drop in revenue, the imperative for strategic adaptation is clear." "Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility but strong partnerships to ensure sustained growth in a shifting global economy," Omar added.
