CEO CONFIDENCE STABILIZES WITH CAUTIOUS OPTIMISM FOR FUTURE GROWTH

The Vistage CEO Confidence Index rose modestly by 1.8 points to 92.9 in 3Q2025, signaling a stabilization of business sentiment after a significant 13.1-point drop the previous quarter (Figure 1). This nascent recovery reflects a pivot in CEO outlook: while assessments of current conditions continued to soften, expectations for future performance improved across key metrics. However, the index remains 16% below its average level from the previous year, underscoring a persistent caution despite the quarterly improvement.

This stabilization was likely driven by two key factors. First, the announcement of Trump’s revised 19% tariff for Malaysia and other ASEAN countries on July 31, 2025, provided clarity after a period of initial uncertainty. Second, the steady 4.4% year-on-year GDP growth of the Malaysian economy recorded in Q2, released on August 1, helped reassure CEOs amidst ongoing global uncertainties stemming from geopolitical conflicts and Trump’s 2 April “Liberation Day” tariffs.