SHARP DECLINE IN CONFIDENCE AMID TARIFF UNCERTAINTIES

The Vistage CEO Confidence Index plummeted to 91.1 in 2Q2025, down sharply from 104.2 in the previous quarter. This 13.1-pointdecline marks the largest quarterly percentage drop since 3Q2021 and reflects growing economic uncertainty among business leaders.

The sharp fall is not surprising given the spike in global uncertainties caused by US President Trump’s unilateral tariff hikes on trading partners announced on 2 April and subsequent 90 days extension for negotiations that prevailed through the second quarter. A 10% baseline tariff and a reciprocal tariff of 24% was imposed on US imports from Malaysia. At the time this survey was conducted, negotiations between Malaysia and the US were still ongoing. The decline in the CEO Confidence Index is consistent with the downtrend in real GDP growth with the index below 100 broadly indicating weak growth (Figure 1).