How are rising production costs impacting different Malaysian business sectors?

Question

Accepted Answer

Rising Production Costs Pose Significant Challenges Across Malaysian Business Sectors

Chinese Malaysian businesses faced substantial pressure from escalating production costs in the first half of 2026. The primary drivers of this strain were identified as increased raw material prices and higher operating expenses, impacting various sectors with differing degrees of severity. A survey conducted by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) between June 4 and June 30, which polled 791 businesses, highlighted these pervasive concerns.
Construction and Manufacturing Sectors Grapple with Input Costs

The construction industry reported the most acute impact from rising raw material prices, with 81.1 per cent of respondents citing this as a significant concern. This was closely followed by the manufacturing sector, where 71.2 per cent of businesses expressed similar worries. In tandem with material costs, operating expenses also presented a considerable hurdle. For the construction sector, 56.9 per cent of businesses highlighted high operating costs, while in manufacturing, this figure stood at 54.1 per cent.
Wholesale, Retail, and Business Services Sectors Face Cost Pressures

Businesses in the wholesale and retail trade sector also indicated significant challenges related to input costs. Nearly 60 per cent (59.7 per cent) of respondents identified higher raw material prices as a concern, with 50.7 per cent pointing to elevated operating costs. Meanwhile, the professional and business services sector experienced a different set of primary concerns. High operating costs were a worry for 41.4 per cent of these businesses, while changing consumer behaviour, influenced by rising living costs and inflation, was cited by 38.3 per cent.
Outlook Suggests Continued Input Cost Increases

Looking ahead to the second half of 2026, the sentiment among businesses suggests a continuation of these cost pressures. A significant majority of respondents anticipate a worsening of input costs, with 67.2 per cent expecting an increase in the cost of local inputs and 62.1 per cent forecasting a deterioration in the cost of imported inputs. This outlook indicates that managing escalating expenses will remain a critical focus for Malaysian businesses in the near future.

Reading history

Hide →

This history is cleared when the page is closed.

How are rising production costs impacting different Malaysian business sectors?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

2

0

0

Share with friends