RAM’s BCI reflects increasing pressure on businesses arising from rising costs, intensifying competition, and external trade shocks, including imposed US tariffs – July 15, 2025
Firms cite rising costs, US tariffs, and global trade disruptions as key challenges in latest RAM-CTOS confidence index
MALAYSIAN businesses are urging the government to enhance access to financing and working capital support as they contend with mounting operational challenges, according to a recent survey by RAM Holdings Bhd.
In a statement released today, the credit rating agency said direct financial assistance, such as grants and subsidies, is also in high demand as companies seek relief from the impact of global trade disruptions.
“The latest RAM-CTOS Business Confidence Index (BCI) reflects increasing pressure on businesses in Malaysia arising from rising costs, intensifying competition, and external trade shocks, including tariffs imposed by the United States,” it said.
RAM’s Group CEO and Executive Director Chris W.K. Lee said that although business sentiment remains cautious, it is encouraging to see that companies are continuing to invest and hire.
He added: “The government and industry stakeholders must work together to respond to these emerging challenges, so that businesses can remain resilient and thrive.”
The Q2 2025 survey, conducted from 29 May to 28 June and involving 33 firms, focused on the effects of US tariffs on Malaysian goods.
“Approximately two-thirds of the firms surveyed anticipate negative repercussions from the tariffs, with 27 per cent expecting significant adverse effects, and a further 18 per cent anticipating moderate or minor impacts,” RAM stated.
Sales and revenue topped the list of areas most likely to be affected, followed by profit margins, supply chain operations, and cash flow.
In response, the survey found that companies are implementing cost-focused strategies to mitigate the impact, with 42 per cent reducing operational expenditure and 39 per cent adjusting pricing strategies to remain competitive. – July 15, 2025
About RAM Holdings Berhad
RAM Holdings is a leading provider of independent credit research and advisory services. RAM Holdings (formerly known as Rating Agency Malaysia Berhad) was established in November 1990 as a catalyst for the domestic debt capital market and as the nation’s first credit rating agency. Its shareholders comprise both local and foreign financial institutions. On 1 July 2007, the rating operations were novated to a newly formed subsidiary, RAM Rating Services Berhad (or RAM Ratings). Today, RAM Holdings spearheads the cultivation of new businesses and continues to provide training as well as economic research that promotes financial and credit expertise, in addition to soft skills. For more information, log on to www.ram.com.my.
About CTOS
CTOS is Malaysia’s leading registered Credit Reporting Agency (CRA), regulated by the Ministry of Finance under the Credit Reporting Agencies Act 2010. Established in 1990, CTOS facilitates credit extensions by empowering individuals and businesses with access to crucial information at greater ease and speed. CTOS delivers a complete portfolio of credit risk management solutions and services and is widely used by the country’s banking and financial institutions, insurance companies, telecommunication companies, large corporations, SMEs, legal firms and state bodies. For more information, visit our website at www.ctoscredit.com.my.
Source: thevibes.com
