Which states face the deepest business confidence challenges ahead?

Question

## Labuan and Melaka face the deepest business confidence challenges, with the lowest confidence indicators recorded across Malaysian states for the second quarter of 2026.

Accepted Answer

Labuan recorded the lowest confidence indicator at negative 9.5 per cent, followed closely by Melaka at negative 9.1 per cent. These figures reflect deeply pessimistic business sentiment in these regions, signalling that businesses anticipate significantly weaker performance in the coming quarter. The negative readings contrast sharply with states that maintain positive or near-neutral confidence levels, underscoring the uneven economic prospects across Malaysia.

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Which states face the deepest business confidence challenges ahead?

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