German firms in Malaysia see stable business conditions in 2026
A survey has found that most German companies operating in Malaysia are optimistic that the local business environment will remain robust
PETALING JAYA, Malaysia (MNTV) — A survey has found that most German companies operating in Malaysia are optimistic that the local business environment will remain robust heading into 2026 despite global economic uncertainties, reports FMT.
The Malaysian-German Chamber of Commerce and Industry (MGCC), which has over 430 member firms, said 87 pc of surveyees rated the current business situation as “good and satisfactory”.
MGCC executive director Hannes Farlock said 90 pc of respondents expect conditions in 2026 to remain stable and favourable, highlighting Malaysia’s position as a resilient economy with a predictable policy direction.
He added that 49 pc of companies expect improved business performance while 43 pc anticipate stable conditions. Only 7 pc of those surveyed foresee a downturn.
“This cautious but hopeful outlook aligns with Malaysia’s continued attractiveness as a diversified, strategically positioned manufacturing and services hub in Southeast Asia,” he said in a statement.
Farlock said nearly half of the companies plan to increase their workforce here over the next 12 months, while another 36 pc expect staffing levels to remain unchanged.
He said respondents identified global and structural challenges as their primary concerns in business development for 2026, including weak global demands (67pc) economic policy conditions (42pc), trade barriers and preferential treatment for domestic competitors (39pc), and skilled labour shortages (37pc).
On the effects of the U.S.’s trade policy, slightly more than half of the German companies (54pc) reported negative impacts while the rest experienced no direct consequence.
This is because nearly two-thirds of the respondents have no U.S. business connections, said Farlock.
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