theSun | MONDAY JANUARY 5 2009 23

business

Optimism slumps
slumped from a balance of -49%
last year to -85% this year.
The pessimism drop is more
pertinent due to the nature of the
Japanese who tend to be very
cautious.
The United States scored its
optimism at -34% while China
own micro level, there are real action to defend their businesses’
opportunities for resilient and cash flow in the short term but
efficient MLEs,” he said. to hold their nerve and develop
When asked to identify the a strategic plan for the long term
single factor causing most con- – a new commercial environ-
cern for their business, MLEs in ment will emerge but it could be
33 out of the 36 economies cited very different to the current one,”
a fall in consumer demand with he added.

to record low
by Tim Leonard
newsdesk@thesundaily.com
PETALING JAYA: Optimism
among Medium to Large En-
terprises (MLEs) around the
world slumped by 56% in the
last 12 months, and pushed the
Grant Thornton International
optimism/pessimism barometer
to a record negative of -16% com-
pared to +40% last year.
Going It is the first time pessimists
cashless have outweighed optimists on
pg 26 their outlook for the economy
since the research began in
2003.
This year’s International
Business Report, which surveyed
senior executives from over
7,000 MLEs across 36 econo-
“The slump in consumer
demand is the greatest concern
for Malaysian business owners,”
said Jasani.
“And shortage of consumer
credit also holds threat to local
business owners,” he said.
In the survey, India came out
top as the most optimistic Asian
country with a score of +83%.
The second highest optimistic
Asian country is the Philippines
at +65% followed by Vietnam
+31%.
Hong Kong suffered the big-
gest swing, which went from
+81% optimistic last
year to -49%,
a factor of its
exposure not
International
only as one of Grant Thornton ism barometer
was at +30%.
The world’s four largest
trading nations – the US, China,
Japan and India had polarised
scores.
The US and Japan had their
optimism levels in the negative
while China and India had theirs
in the positive quadrant.
“These polarised results
suggest there is still hope in
the global marketplace and it is
no coincidence that MLEs are
the first to realise them,” said
Jasani.
“Their macro view of the
world economic stage explains
the overall slump in optimism
but while MLEs are preparing
for a prolonged and painful
downturn, those in the emerging
economies realise that at their
a shortage of business credit The Grant Thornton Inter-
the second most worrisome national Business Report (IBR),
concern. formerly known as the Interna-
Jasani added that the econo- tional Business Owners Survey
mies in the survey contribute to (IBOS), provides insight into the
81% of global GDP. views and expectations of chief
“If politicians were in any executive officers, managing di-
doubt about the need to take rectors, chairmen or other senior
steps to boost consumer spend- executives over 7,200 Medium to
ing and kick start the global Large Enterprises (MLEs) across
economy, this overwhelming 36 economies.
consensus from MLEs should The unique survey draws
surely persuade them.” upon 17 years of trend data for
“MLEs can have huge advan- most European participants and
tages over listed companies in seven years for many non-Euro-
times of commercial stress,” he pean economies.
explained. This is the fourth time the
“Management can make deci- Malaysian firm is participating
sions quickly because there are in the Global Report, now in its
fewer stakeholders involved and seventh consecutive year.
MLEs’ greater flexibility means Grant Thornton International
change can be will donate US$5 (RM18) to
implemented Unicef for every completed IBR
faster than questionnaire.
in more bu- In 2009, this will result in
reaucratic a donation of over US$36,000
mega enti- (RM129,600). The research was

optimism/pessim
mies, showed an overwhelming the hard hit fi- ties. conducted by Experian Business
consensus that falling consumer nancial services mont hs “We’re Strategies Limited.
e next 12
demand is the biggest threat to centres but also essimism over th telling our To find out more about IBR
age of optimism/p
MLE businesses. its close trading Balance percent Hong Kong
-59% c l i e n t s and to obtain details of IBR
2%
There is also a stark difference links with the 83% Malaysia -50% to take reports and results please visit
India -2% Taiwan s w i f t , www.internationalbusinessre-
in attitude towards the economic West. 65 % Ru ss ia -63%
crisis between those in mature The least op- Philippines -3% Thailand decisive port.com.
Germ an y -85%
31% Japan
and emerging economies. timistic business Vietnam w Zealand -15%
owners are the 30% Ne
SJ Grant Thornton Malaysia’s China
managing partner Datuk N.K. Japanese. 15% (Global -16%) ornton
Singa po re -34% Source: Grant Th
Jasani said Malaysian business- Pessimism 11% United States 2009 for more info log on:
Au stralia om -47% IBR
es’ optimism balance slumped levels in this 3% United Kingd www.internationalbusinessreport.com
year’s survey Cana da
deeply from +38% to +2%.