AMID a backdrop of global geopolitical headwinds, 74% of business leaders in Malaysia said they were cautiously proactive on their business prospects in the next 12 months, said a survey.

Monash Malaysia Research & Development CEO Prof S. Mahendhiran S. Nair, said businesses were cautiously optimistic in 2018 due to a brewing US-China trade war.

“Last year businesses were cautiously optimistic because we did not have the full fledged trade war, Brexit we thought there will be some settlement but the reality has changed over the last 12 months,” he said, while presenting the findings of the Malaysian Business Sentiment Survey 2019/2020.

However, businesses have since taken a more proactive approach in 2019 and that is expected to continue into 2020, he said.

“It is not optimistic but cautiously proactive,” he said, adding there were a few factors fuelling the concern of firms.

The worrying factors are the uncertainty stemming from the United States and China trade war, which has yet to see a resolution after several rounds of negotiations; technological advancements; and new, disruptive business models.

“The good thing is firms realise that with all these changes they have to do something and be proactive. They can’t be just sitting down and waiting for things to settle down.

“They realise they have to defend their existing markets and expand into new markets partly because consumers are more reserved in spending.”

The survey is a joint initiative between Monash University Malaysia and CPA Australia.

Approximately 69% respondents believed their business conditions would improve in 2019/2020 if strategies were put in place to enhance innovative capabilities using the best talent, leadership styles, technology and business models.

Traditional businesses said they were cautious and concerned over the disruptive technologies which could threaten their market position.

However, the overall sentiment was that businesses recognised the need to take proactive measures  to adopt new technology such as Industry Revolution 4.0 (IR4.0) and develop new business models to mitigate risks and uncertainties.

The survey with 604 respondents from various industries showed business leaders were of the view that competitive firms were able to tap into new opportunities amidst the escalating US-China trade frictions and Brexit

The survey noted that more had made the shift to IR4.0, with 16% saying that they had fully made the transition compared with 13% in 2018. – December 16, 2019.

About of 27% of the respondents said that they were prioritising new growth strategies in the coming year; and 35% said they were focusing on current products while also keeping an eye out for new opportunities. – December 16, 2019.