The Malaysian-German Chamber of Commerce and Industry (MGCC), which has over 430 member firms, said 87% of surveyees rated the current business situation as “good and satisfactory”.
MGCC executive director Hannes Farlock said 90% of respondents expect conditions in 2026 to remain stable and favourable, highlighting Malaysia’s position as a resilient economy with a predictable policy direction.
He added that 49% of companies expect improved business performance while 43% anticipate stable conditions. Only 7% of those surveyed foresee a downturn.
“This cautious but hopeful outlook aligns with Malaysia’s continued attractiveness as a diversified, strategically positioned manufacturing and services hub in Southeast Asia,” he said in a statement.
Farlock said nearly half of the companies plan to increase their workforce here over the next 12 months, while another 36% expect staffing levels to remain unchanged.
He said respondents identified global and structural challenges as their primary concerns in business development for 2026, including weak global demands (67%) economic policy conditions (42%), trade barriers and preferential treatment for domestic competitors (39%), and skilled labour shortages (37%).
On the effects of the US’s trade policy, slightly more than half of the German companies (54%) reported negative impacts while the rest experienced no direct consequence.
This is because nearly two-thirds of the respondents have no US business connections, said Farlock.