88 Pct German Firms Satisfied With Malaysia's Business Climate -- MGCC Survey

KUALA LUMPUR, July 17 (Bernama) -- The latest World Business Outlook Spring 2026 Survey has revealed that 88 per cent of German businesses rate their current business situation in Malaysia as “good” or “satisfactory”, reflecting sustained confidence, even as geopolitical pressures mount worldwide.

The survey conducted by the Malaysian-German Chamber of Commerce and Industry (MGCC) also found that some 87 per cent of respondents expect their business situation to remain the same or improve over the next 12 months, with 35 per cent anticipating improvement and 52 per cent expecting it to stay about the same.

“Employment intentions reinforce this -- 34 per cent of companies plan to increase headcount over the coming year, while 46 per cent intend to maintain current staffing levels,” it said in a statement Friday.

MGCC executive director Hannes Farlock said German companies are telling a clear story that Malaysia remains a stable, trusted base even as the world around it gets noisier.

“Our latest survey demonstrates the country’s resilience against a backdrop of global uncertainty and its continued standing as a strategic base for German businesses in Southeast Asia,” he said.

The survey also found that some 71 per cent of respondents view Malaysia’s economic outlook for the next 12 months as stable or favourable; about 41 per cent intend to retain their current investment plans in Malaysia; and 21 per cent plan to invest more locally over the next 12 months.

It said that 24 per cent plan to invest less and 13 per cent plan to make no investment at all.

“Despite the more cautious economic outlook, German investors show little appetite for leaving Malaysia.

“Only 18 per cent of companies are actively relocating production to other locations, and 67 per cent have no such plans whatsoever,” it said.

Instead, MGCC said firms are adapting around their Malaysian base, with 54 per cent already exploring new sales markets and 40 per cent expanding their supplier networks.

“This points to a strategy of diversification rather than relocation that speaks to Malaysia’s continued appeal as a regional hub,” it said.

In Malaysia, the survey was conducted between March 16 and April 10, 2026, with 99 respondents from MGCC member companies, comprising mostly German companies with branches or subsidiaries in Malaysia, primarily from the services (47 per cent), manufacturing and construction (36 per cent), and trade (16 per cent) sectors.

The survey is part of the broader AHK World Business Outlook, a bi-annual global research initiative conducted by the German Chamber of Commerce and Industry (DIHK).

It surveys member companies from the network of German Chambers of Commerce Abroad (AHKs), which represent over 40,000 companies in 93 countries.

For more information about the DIHK, visit its website at https://www.dihk.de.

-- BERNAMA