The Business Optimism Index (BOI) is one measure of the strength of Malaysia’s economy. It’s worth knowing what it is and how it’s developed because of the effect it can have on your business. Each quarter, the New Jersey-based information company Dun and Bradstreet does a survey of major economic indicators, and the way Malaysia’s big players feel about the direction of the economy is near the top of its interest.
Dun and Bradstreet develops its index by asking 200 business owners and high-level executives how they see things going in the next quarter. The subjects who represent Malaysia’s major industries are asked whether they expect to see increases, decreases, or no changes in several key factors. These factors are sales, profits, employment, new orders, inventory, and selling prices, and are often referred to as the key indicators for business optimism in Malaysia.