15 Sep 2015
ACCCIM Media Conference on Survey Report on Economic Situation of Malaysia for the 1st Half of Year
ACCCIM Media Conference on Survey Report on Economic Situation of Malaysia for the 1st Half of Year 2015
Speech by Datuk Ter Leong Yap, President of ACCCIM
15-9-2015 (Tuesday) at 11.00 a.m. at ACCCIM Conference Room
1. First of all, on behalf of the ACCCIM, I would like to welcome everyone to the ACCCIM Media Conference on Survey Report on Economic Situation of Malaysia for the 1st Half of Year 2015.
2. Bank Negara Malaysia announced in August that the Malaysian economic growth has reached 4.9% in the second quarter, even though it is lower than 5.6% in the first quarter, it was still higher than the expected 4.5%.
3. The private sector remains as the main driver in our country economic growth, however the cost of doing business has gradually increase at present, coupled with the adverse impact of GST implementation caused businesses to lament on the difficulties in doing business as it further induce the drop in sales volume.
4. Besides, the rise in the price of goods has caused the inflation rate to climb from 0.1% in February 2015 up to 3.3% recorded last month, bringing tremendous pressure to the livings.
5. Due to the fact of Ringgit depreciation, the importers encounter stress in rising costs of raw materials. The devaluation of China’s Renminbi has also triggered the plunge in the stock markets in the emerging market, major global economic market slumped, global economic growth continued to slow down resulting more industry players to face even tougher challenges.
6. The Government should strongly encourage Malaysian to buy local products to reduce Ringgit outflow. At the same time, provide more tax incentive and allowances for those local enterprises that manufacture Malaysian products in order to improve their competitiveness within the country and overseas.
7. Tourism has always been one of the main sources of foreign exchange earnings for Malaysia, this industry could promote hotel, food and beverages, transport and other industries simultaneously. Y.A.B. Prime Minister has announced yesterday that from 1st October 2015 to 31st March 2016, group tours from China will be exempted from visa requirement.
8. The ACCCIM is of the view that tourism industry may not be benefited from this measure as half year period is too short and the number of tourists has to be more than 20 in a group.
9. ACCCIM urge the Government to provide full visa exemption for all China citizens to visit Malaysia so as to facilitate the entry of business peoples and high spending tourists as they usually travel independently and often at short notice, and will spend much more on accommodation, shopping, food and beverage. Along with attracting more tourists from China to boost the tourism industry, visa-free is also an important factor to facilitate trade and businesses dealings. Tourism is an important source of foreign exchange earnings, and will help to stimulate economic activities in the country. The Government can try to run this measure for one year, and to adjust after reviewing its effectiveness.
10. The business community greatly concerns on the domestic political situations as it is closely related to business performance. The businesses hope that the Government to implement effective counter-strategies expeditiously to stabilise and strengthen the development of Malaysian economy so as to restore the investors’ confidence in Malaysia.
11. The priority now, regardless the Government, private sector or the public, is to safeguard social stability and harmony, and to speed up economic recovery. Any form of rally that would incite racial tension, damage national peace, obstruct efforts in encouraging foreign direct investment and attracting tourists should be stop and prevent. ACCCIM urged the Government to take severe actions to stop extreme remarks and actions that may harm ethnic relations and harmony.
12. The ACCCIM Economic Survey is carried out twice a year to gather the feedback and opinions from Chinese businessmen on various measures undertaken by the Government. It served as a basis for the ACCCIM to submit relevant memoranda to the Government in assisting the Government either in reviewing and making adjustments to the existing policies or in the formulation of new policies.
13. This economic survey covered many current issues, such as cost of doing business, world prices of commodities, Ringgit depreciation, “One Belt One Road” and “Asian Infrastructure Investment Bank” Initiatives, real property and so forth. Dr. Leong Kai Hin, Chairman of the ACCCIM Commerce Committee will brief on the findings of the survey.
14. On behalf of the ACCCIM, I would like to thank the Commerce Committee and University Tunku Abdul Rahman (UTAR) for their efforts in conducting this survey and prepare the survey report. The ACCCIM would also like to express our sincere appreciation to all the media for your continuous support and wide coverage on the survey findings.
Thank you.
