Kuala lumpur: Business sentiment remained positive in the first quarter of 2026, supported by a Confidence Indicator (CI) of 4.0 percent, down from 6.2 percent in the previous quarter, the Department of Statistics Malaysia (DOSM) said. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin stated that all sectors anticipated favorable business conditions in the first quarter.

According to BERNAMA News Agency, the business confidence in the services sector remains positive, with a CI of 6.6 percent compared to 10.0 percent in the previous quarter. The industry sector also remained optimistic, with a CI of 3.3 percent, down from 5.8 percent in the fourth quarter of 2025. Meanwhile, the construction sector returned to positive territory, posting 1.4 percent compared to -1.2 percent in the previous quarter. Sentiment in the wholesale and retail trade sector remains positive, registering 2.5 percent, compared to 3.5 percent previously.

At the state level, business confidence showed a mixed pattern, with several states reporting improvements while others faced pressure. Optimism was observed in Johor (3.0 percent), Negeri Sembilan (8.0 percent), Pulau Pinang (4.5 percent), Perlis (3.7 percent), Selangor (13.1 percent), Terengganu (10.2 percent), Sabah (2.4 percent), Wilayah Persekutuan Kuala Lumpur (2.0 percent), WP Labuan (2.0 percent), and WP Putrajaya (3.4 percent). In contrast, Kedah (-0.9 percent), Kelantan (-5.3 percent), Melaka (-1.9 percent), Pahang (-9.8 percent), Perak (-7.5 percent), and Sarawak (-0.7 percent) recorded negative readings, indicating persistent challenges in these states.

Looking ahead to the first half of 2026, Mohd Uzir indicated that businesses remained upbeat, though at a slightly lower net balance of 10.8 percent, down from 12.0 percent previously. Positive outlooks were observed across all sectors, signaling promising business conditions for the forecast period.