Kuala lumpur: Small Medium Enterprise Development Bank Malaysia Berhad ('SME Bank'), a subsidiary of Bank Pembangunan Malaysia Berhad ('BPMB') Group, has released the findings of its SME Sentiment Index for the second half of 2025 ('2H 2025'). The index indicates a boost in economic momentum and rising optimism across the country's MSME landscape, with the overall Sentiment Index climbing to 56.8 from 55.1 in the first half of 2025. This increase reflects improved expectations regarding economic conditions, sales prospects, expansionary activities, and employment, despite ongoing external pressures.

According to BERNAMA News Agency, SME Bank's Relief President and Chief Executive Officer, Samad Majid Zain, emphasized the resilience of Malaysian MSMEs, which continue to be supported by stronger economic fundamentals and prospective opportunities. The rise in the Sentiment Index, with 68% of respondents anticipating higher sales and 53% planning to expand their workforce, suggests a more positive operating environment. This is noteworthy as businesses navigate challenges such as higher external import tariffs, a broader application of the Sales and Services Tax ('SST'), and adjustments in electricity costs.

The strongest optimism is observed among manufacturing segments, where 89% of businesses expect growth. These trends indicate that MSMEs are preparing for increased demand and renewed investment activity. SME Bank remains committed to supporting MSMEs in strengthening their financial position, improving productivity, and enhancing competitiveness as Malaysia moves toward sustainable economic growth.