The Business Conditions Index was first mounted in the second quarter of 1987 to provide input for the Institute's economic forecasting activity. It is conducted on a quarterly basis to assist in assessing the short-term outlook for the economy. The survey findings are used to supplement the availability of quantitative information from conventional sources. A Business Conditions Index is constructed from the survey results which gives advance information that permits inferences to be drawn regarding emerging economic trends.

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The survey covers a sample of over 350 manufacturing businesses incorporated locally and foreign manufacturing concerns operating in Malaysia, covering 11 industries. Questions posed in the survey questionnaire are on key determinants such as production level, new order bookings, sales performances, inventory build-up and new job openings. Reports of the survey findings are published two weeks after the end of each quarter.