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FMM – MIER Business Conditions Survey 2H2021 (GI/01/2022)

  FMM in collaboration with MIER is conducting the 20th FMM – MIER Business Conditions Survey on performance in the second half of 2021 (2H2021) and outlook for first half of 2022 (1H2022).
The FMM – MIER Business Conditions Survey this time will focus on assessing the economic outlook and business recovery as well as potential risks to growth in 2022 as well as an assessment on remuneration, minimum wage rate, business recovery strategies including progress on automation, regulatory compliance and impact of the recent floods.

As with the last 19 surveys since 2012, we are tracking the FMM – MIER Business Conditions Index (FMM – MIER BCI), which measures members’ feedback on their current and expected levels of business activity, local and export sales, production volume, capacity utilisation, capital investment, employment and cost of production.

Topical issues for this survey include:
  • Economic and Business Recovery including current work arrangements and investment/reinvestment plans
  • Potential Risks to Growth in 2022 including possible measures to be undertaken
  • Planned Salary Increment and Bonus
  • Acceptable Minimum Wages Rate
  • Progress on Automation
  • Compliance to the Employees’ Minimum Standards of Housing and Amenities Act 1990 (Act 446)
  • Impact of the Recent Floods
  • Strategies and Actions in the next six months
FMM aims to obtain over 1,000 responses for this survey. We seek members’ continued support and participation to ensure that the BCI is a REPRESENTATIVE and ACCURATE index of manufacturing business conditions and feedback on the current state of business, business recovery progress and further assistance required are reflective of the industry.

The survey will be conducted completely online. The questionnaire takes about ten to fifteen minutes to complete and can be accessed by scanning the QR code above OR online via this link:

This survey continues to be an important tool to collect members’ feedback on the current and expected levels of business activities as well as on topical issues of concern to the manufacturing sector. For instance, the last survey revealed the following:
Business activity had declined tremendously in the first six months of 2021. The general business activity index plunged far below the 100-point optimism threshold. Local sales performed worse than export sales in 1H2021. Slower sales had taken a toll on production and capacity utilisation while cost of production rose again. Capital investment (CAPEX) remained cautious and job intake in the manufacturing sector was rather passive.

  • Outlook continued to be sluggish for 2H2021 as the Covid-19 pandemic continued to cast uncertainties on the economy and prospects of firms going forward. While production costs was expected to climb higher, all the other indicators posted readings below the demarcation level of optimism, a connotation that the outlook for the sector was lacklustre.
  • The National Recovery Plan (NRP) restrictions had limited the sustainability of 44% of businesses to be between 1 to 6 months
  • The lockdowns under NRP caused 55% of respondents to have their orders cancelled due to their inability to deliver, and 40% to have their 2H2021 order contracts reviewed
  • Most respondents opined that the most effective exit strategy from the pandemic is to ensure all employees are fully vaccinated, including booster shots in 2022, and require all new employees to be vaccinated before commencing work
  • 56% of respondents reduced manpower cost by freezing headcount, removing non-contractual allowances and benefits, reducing workdays/week, imposing forced annual leave and prohibiting part-time work/outsourcing (Top 5 measures)
  • For those contemplating pay-cuts, possible pay-cut of 5-20% for top management and management, and 10% for executives and non-executives
  • 38% of respondents called for a moratorium on minimum wage increase for the next 1.5 years
  • 38% of respondents were able to cover more employees under the WSP4.0 with the relaxed condition
  • Corporate tax reduction topped the list of other assistance required from the Government
The closing date of the survey is February 7, 2022.

Thank you for taking valuable time off to complete the questionnaire.

Click here to download Circular GI/01/2022.

Enquiries: Puan Hema Thiruchelvam / Puan Kamsiah, Business Environment Division at Tel: 03-6286 7200, Fax 03-6274 1266/7288 or e-mail:

Tan Sri Dato’ Soh Thian Lai

FMM Advocates Transparency, Integrity and No Corruption

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