MALAYSIAN SMEs BOUNCING BACK WITH CONFIDENCE, SURVEY SHOWS

KUALA LUMPUR, Feb 10 (Bernama) -- The Asian economic improvement has led to
Malaysian small and medium enterprises (SMEs) to bounce back with improving
confidence, according to HSBC Bank Malaysia.

The bank's HSBC Small Business Confidence Monitor survey showed the
confidence level among Malaysian SMEs climbing 24 points in the fourth quarter
of 2009 to 108 from 84, putting the country back in positive territory.

Its managing director David Morton said for the first time since the
economic downturn, SMEs around the world showed a bullish growing proportion in
the first quarter of 2010, foreseeing an increase of capital investment and
recruitment.

"This is good because the SMEs are not only confident about the economy's
improvement but also ready for investments in their own operations and people,"
he said at a media briefing on the survey results here Wednesday.

On the outlook for economic growth, Morton said that 55 per cent of the
local SMEs were looking forward to maintain the same pace of growth in six
months while 24 per cent were expecting to increase the pace.

He said in the survey, 28 per cent of the local SMEs were confident of
investing in their own business, up from 22 per cent recorded in the second
quarter of 2009, while a high number of SMEs were planning to increase their
capital expenditure.

On recruitment plans, the survey found that 78 per cent of the local SMEs
were prepared to retain their recruitment plans.

Morton said the survey also showed that 15 per cent of the local SMEs were
involved in international business while another 25 per cent planned to go into
it by 2011.

The top international markets targeted by Malaysian SMEs were Indonesia,
Singapore and China, he said.

On barriers to doing business internationally, Morton said: "The emerging
markets are becoming more and more important as a driver of growth. Small
businesses are at the heart of this growth, driving local job creation,
investment and productivity."

"And as they grow and develop, they look to world markets for new
opportunities," he said.

On the Asian index, Morton said that Malaysia was on the same level with
Hong Kong while Vietnam remained on top with 160 points, followed by India with
132, China with 124 and Singapore with 117.

The survey was carried on a total of 6,031 SMEs.
-- BERNAMA