Despite persistent cost pressures, 77% of Malaysian small and medium enterprises (SMEs) remain optimistic about their business prospects in 2026, with energy management emerging as a top priority as firms look to rein in operating expenses, according to the UOB Business Outlook Study 2026.
The study found that while overall business sentiment remains positive, nearly three in 10 SMEs continue to grapple with rising operating costs, manpower expenses and higher interest rates, prompting businesses to adopt tighter cost management strategies and invest in energy efficiency.
Around three in four businesses now consider energy management and efficiency a key priority, rising to 84% among companies in the manufacturing, engineering and industrial sectors. Their primary objectives are reducing energy consumption (48%), lowering energy costs (44%) and ensuring a stable and reliable energy supply (40%).
UOB Malaysia Chief Executive Officer Ng Wei Wei said rising energy and fuel costs continue to weigh on businesses, making energy management an increasingly practical priority, particularly for medium-sized enterprises that are better positioned to implement efficiency initiatives.
She added that for smaller firms facing tighter financial constraints, support through Bank Negara Malaysia’s (BNM) SME Stabilisation Relief Facility (SME SRF), alongside UOB’s own relief assistance programmes, is helping businesses manage cash flow, sustain operations and navigate evolving market conditions.
The bank said it has strengthened financing support under the BNM SME SRF to help SMEs weather external disruptions while continuing to provide broader financial solutions aimed at building long-term resilience.
The study also found that businesses are increasingly adopting cost-effective technologies, with about two in five SMEs already installing solar panels and LED lighting to reduce electricity consumption. Interest in digital tools is also growing, with 48% of businesses seeking technologies to improve energy efficiency and 44% looking to lower energy costs.
Beyond cost savings, the report points to a broader shift in corporate strategy, with businesses prioritising resilience over aggressive expansion. Energy management is becoming an integral part of efforts to strengthen operational stability, improve supply chain resilience and support regional expansion and localised manufacturing strategies.
The UOB Business Outlook Study covers seven markets — Singapore, Indonesia, Malaysia, Thailand, Vietnam, China and Hong Kong.
