Business keeps hiring, despite dip in confidence

Malaysian businesses still taking on employees, though outlook not as bright, finds Regus Business Confidence Index

MALAYSIA, 5 October 2011 | Malaysian businesses are still taking on staff, even though their views on economic growth are not as positive as they were a year ago, as almost three quarters (70%) of Malaysian companies report that they plan to increase headcount in the next two years. This is despite a downturn in the Regus Business Confidence Index, in which Malaysia has slipped thirty-seven points from April 2011, to 117 this autumn. As an indicator of the changing structure of employment, hiring intentions show a particular emphasis on freelancers, graduates and remote workers – as firms seek competitive advantage now and growth in the months to come.

· In Malaysia, a fifth (21%) of companies have pushed back their expectations for recovery to the second half of 2012;

· The proportion of Malaysian companies revenue growth (52%) has fallen twenty two percent compared with six months ago, those reporting profit growth (32%) has fallen thirty two percentage points over the period;

· Nevertheless, almost three quarters (70%) of companies plan to hire more employees over the next two years. Signaling a clear move toward more flexible working practices, 57% of Malaysian companies say they plan to hire more freelance staff and 43% will employ more remote workers in 2011/12.

William Willems, Regional Vice-President, for Regus Australia, New Zealand and South-East Asia comments, “The report finds that, six months on from a rosy start to 2011, the global outlook has suffered a clear reverse. The proportion of companies reporting revenues and profit growth has close to stalled and expectations for the full momentum of recovery have slipped yet again and are now set for the second half of 2012. However, national business sentiment and activity does not seem to be unduly affected, with businesses actively investing in their most valuable asset: people power.

“In Malaysia, freelance and remote working are becoming an increasingly popular solution to increase headcount while remaining flexible and rapidly scalable. In addition to this, by taking advantage of solutions already available on the market it is possible for even very small operations to establish a low-risk presence in their target markets without making lengthy premises or equipment commitments and allowing them to expand or withdraw depending on volatile market conditions.”