Thailand
Malaysia: CMCO eroding business cashflow, RAM survey says
PETALING JAYA: Business sentiment remains bleak over the next three months as the conditional movement control oder (CMCO) further eroded business cashflow by about one-third, according to a RAM Ratings survey.
The results of the latest RAM Business Confidence Index (RAM BCI) survey for Q4 2020 showed that the overall index was little changed at 35.9 (Q3 2020: 33.7).
The level is “still substantially below” the threshold of 50 for sentiment to turn optimistic, the survey revealed.
“The results suggest that businesses may be feeling the pressure from the third wave of Covid-19 and the reinstatement of the CMCO in the Klang Valley since mid-October.
“Nearly 70% of the survey respondents indicated that the CMCO had further eroded their business cashflow, by an average of 30%-35%, ” it said.
RAM said the recovery paths of small and medium enterprises (SMEs) and micro enterprises appear challenging in the absence of any brighter business prospects.
To help these small businesses, it suggested additional support to address their immediate challenges.
“It is unsurprising that the SME respondents want initiatives that will help alleviate pressure on their cashflow, ” it said.
Source: https://www.thestar.com.my/business/business-news/2020/12/08/cmco-eroding-business-cashflow-according-to-ram