UOB Study: Businesses remain resilient in 2026 as energy management gains strategic importance

As cost and operating pressures persist, UOB Malaysia provides targeted financial assistance to support SMEs navigating near term challenges
 
KUALA LUMPUR, June 30 (Bernama) -- According to the UOB Business Outlook Study 2026, rising cost pressures continue to shape business priorities in 2026 with energy management emerging as a critical focus area. While overall sentiment remains positive for businesses, smaller enterprises are adopting a more cautious approach amid persistent economic uncertainties.
 
The study finds that 77 per cent of small and medium-sized enterprises (SMEs) maintain a positive business outlook this year, although confidence is more subdued among smaller firms. However, nearly three in ten SMEs continue to face pressure from rising operating expenses, high manpower costs, and an increase in interest rates, prompting a shift toward tighter cost management strategies.
 
Energy Management Moves to the Forefront
In response to ongoing cost volatility, businesses are increasingly turning to energy management as a practical way to manage expenses. Around three in four businesses consider energy management and efficiency important, with 84 per cent of businesses in the manufacturing, engineering and industrials sector prioritising energy management and efficiency. Key priorities include reducing energy consumption (48 per cent), lowering energy costs (44 per cent), and ensuring a stable, reliable energy supply for their operations (40 per cent).
 
Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia, said: “The UOB Business Outlook Study 2026 shows that cost pressures, including energy and fuel costs, continue to weigh on many businesses. Energy management has become a practical priority, particularly for medium enterprises that are better positioned to execute efficiency initiatives, supported by sector-specific solutions that address their operating needs. 

For smaller firms facing tighter financial constraints, initiatives such as the BNM SME Stabilisation Relief Facility, complemented by our own relief assistance efforts, enable us to provide timely and practical support. This support is focused on helping our SME customers manage cash-flow pressures, sustain operations, and navigate evolving market conditions.”
 
UOB Malaysia has strengthened its financing support through the Bank Negara Malaysia (BNM) SME Stabilisation Relief Facility [1], helping businesses manage cash flow challenges and sustain operations amid evolving market conditions, including external disruptions. Alongside this initiative, the Bank remains committed to providing comprehensive relief assistance and financial solutions designed to support SMEs in building long-term resilience and navigating uncertainty.
 
Adoption of cost-effective solutions is already underway
Approximately two in five businesses have implemented solar panels and energy and LED lighting driven by their tangible benefits in lowering energy consumption. Aside from that, SMEs also express growing interest in digital tools to help improve energy efficiency (48 per cent), lower energy cost (44 per cent), and ensure stable energy supple for everyday operations (40 per cent).
 
Resilience Over Rapid Growth
The study highlights a broader strategic shift among businesses toward resilience-led execution rather than aggressive growth. Energy management is increasingly linked to broader resilience objectives, including maintaining operational stability, ensuring supply chain continuity, and meeting evolving customer expectations. Businesses pursuing supplier diversification, regional expansion, and localised manufacturing are also integrating energy stability into their risk management strategies.
Now in its seventh year, the UOB Business Outlook Study has been refreshed with a bi-annual cadence and the introduction of expanded focus areas, reflecting how rapidly changing economic and geopolitical conditions are reshaping the business landscape. The 2026 edition covers seven markets – Singapore, Indonesia, Malaysia, Thailand, Vietnam, Mainland China and Hong Kong SAR. To get a copy of the study with the full insights, please visit https://www.uobgroup.com/asean-insights/articles/uob-business-outlook-study-2026-malaysia-h1.page