SME Sentiment Index Signals Continued Confidence Among Entrepreneurs Despite Moderating Outlook

KUALA LUMPUR, June 19 (Bernama) -- Small Medium Enterprise Development Bank Malaysia Berhad ("SME Bank") has released the results of its SME Sentiment Index for the first half of 2025 (“1H 2025”), reflecting continued confidence among Micro, Small, and Medium-sized Enterprises (“MSMEs”) despite anticipating economic and financial challenges arising from the United States’ Tariff announcement. The latest index serves as a timely barometer of entrepreneurial sentiment, combining MSME perspectives with forward-looking indicators to provide valuable insights into the evolving business landscape and Malaysia’s economic trajectory.

“SME Bank’s SME Sentiment Index registered a solid 55.2 in the first half of 2025, reflecting continued optimism among entrepreneurs nationwide. While this marks a slight moderation from 55.8 in the previous half, the index remains well above the neutral level of 50, indicating steady confidence despite a softening from the strong post-COVID rebound observed in earlier surveys. Entrepreneurs are showing more cautious optimism, citing softer expectations around sales, expansion, and hiring. This sentiment echoes broader economic signs, reflecting recalibration in alignment with the MADANI Economic Framework, which prioritises sustainable, inclusive growth. While short-term sentiment has softened, Malaysia remains on a steady growth path, supported by structural reforms, high-quality investments, and a focus on resilience and shared prosperity,” said Datuk Dr. Mohammad Hardee Ibrahim, Acting Group President/Chief Executive Officer of SME Bank.