Malaysia's business performance is expected to expand in the second half of 2016, with the net balance growing 7.9 percent compared with the corresponding period last year, the Department of Statistics (DoS) said.

In a statement today, the DoS said during the period under review, the net balance in the services and industry sectors is expected to increase 21 percent and 7.9 percent year-on-year (y-o-y), respectively.

However, it said the net balance in the construction and wholesale and retail trade sectors is expected to drop 14.7 percent and 12.5 percent y-o-y, respectively, during the July-December 2016 period.

For the third quarter of 2016 (3Q16), the DoS said the country's business performance is expected to increase as the confidence indicator rose 2.9 percent from 2.2 percent in the same period a year ago.

The confidence indicator summarises the overall views on the short-term business situation in various sectors in Malaysia, it said.

"The business performance for the industry sector is expected to increase in 3Q16 with the confidence indicator rising 8.3 percent y-o-y," it added.

On the other hand, the business performance in the wholesale and retail trade, construction and services is expected to decline in 3Q16, with the confidence indicator easing 8.5 percent, six percent and 0.5 percent y-o-y, respectively.