KUALA LUMPUR, April 1 (Xinhua) -- A recent survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) highlighted growing concerns among Malaysian businesses on Wednesday, with most respondents expecting a deterioration in operating conditions if oil price shocks persist.
Its survey found that businesses are grappling with rising fuel costs, supply chain disruptions and limited visibility over the next three to six months, the ACCCIM said in a statement.
More than half of respondents (51.2 percent) expect total costs to rise between 6 percent and 20 percent, while a further 20.2 percent foresee increases exceeding 20 percent.
Energy remains a key cost driver, with 44.3 percent of firms reporting that energy accounts for more than 10 percent of their operating expenditure.
The survey also revealed mounting financial strain. About 46.3 percent of respondents reported moderate to significant deterioration in cash flow, while profitability is expected to decline across the board, with 26.6 percent anticipating a significant drop.
According to the survey, uncertainty linked to the Middle East conflict has compounded pressures, driving up transportation, raw material and logistics costs.
Industries outside the subsidized fuel scheme, including construction, manufacturing and retail, are particularly exposed. Energy-intensive sectors such as iron and steel, cement and textiles are among the hardest hit.
Looking ahead, most businesses foresee "moderate to significant deterioration" in their outlook over the next three to six months. Notably, 31 percent said they could sustain operations for only three to six months before requiring downsizing or additional financing.
The quick-take survey, conducted between March 19 and 25, gathered 203 responses across sectors. ■
