'SMEs confident and ready to invest'
The HSBC's Small Business Confidence Monitor survey revealed that 42 per cent of small and medium-sized enterprises (SMEs) in Malaysia are planning to increase their capital expenditure (CAPEX) in the next six months.
Increasing confidence has been showed by SMEs across the globe with Malaysia demonstrating steady signs of recovery by maintaining their levels of confidence in the first half of 2010, said HSBC Bank Malaysia Bhd's Deputy Managing Director Commercial Banking and Director Sales, Thomas Varughese.
"This has encouraged businesses to continue to invest in capital expenditure and increase their workforce," he said after a media briefing on the survey, in Kuala Lumpur today. To a question on whether the SMEs will continue to see growth in view of a projected slowdown in the second half of the year, he said he was confident of continued growth.
Malaysia's economy still relies on the government expenditure and therefore the growth would continue for SMEs, he said.
Private SMEs are now prepared to spend on capital and labour, therefore, there is definitely a demand for more business.
The issue might even be labour shortage and capital as the competition is quite high, he said.
"The cost of doing business will grow because there is high demand for capital and labour as there is intention to expand the business," he explained.
The HSBC Small Business Confidence Monitor is the largest SME survey of its kind in the world. It gauges the outlook of small businesses in 21 markets all over the world with 6,346 SMEs interviewed by the research company TNS.
-- BERNAMA
Increasing confidence has been showed by SMEs across the globe with Malaysia demonstrating steady signs of recovery by maintaining their levels of confidence in the first half of 2010, said HSBC Bank Malaysia Bhd's Deputy Managing Director Commercial Banking and Director Sales, Thomas Varughese. "In line with the improved confidence levels in the emerging markets, the confidence level of the local SMEs are also moving up as they expect gross domestic product (GDP) growth to continue.
"This has encouraged businesses to continue to invest in capital expenditure and increase their workforce," he said after a media briefing on the survey, in Kuala Lumpur today. To a question on whether the SMEs will continue to see growth in view of a projected slowdown in the second half of the year, he said he was confident of continued growth.
Malaysia's economy still relies on the government expenditure and therefore the growth would continue for SMEs, he said.
Private SMEs are now prepared to spend on capital and labour, therefore, there is definitely a demand for more business.
The issue might even be labour shortage and capital as the competition is quite high, he said.
"The cost of doing business will grow because there is high demand for capital and labour as there is intention to expand the business," he explained.
The HSBC Small Business Confidence Monitor is the largest SME survey of its kind in the world. It gauges the outlook of small businesses in 21 markets all over the world with 6,346 SMEs interviewed by the research company TNS.
-- BERNAMA
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