Speech by Dato’ Lim Kok Cheong, President of ACCCIM

【30-3-2015 (Monday) at 11.00 a.m. at ACCCIM Conference Room】

1.        First of all, on behalf of ACCCIM, I would like to welcome everyone to the ACCCIM Media Conference on Survey Report on Economic Situation of Malaysia for the 2nd Half of Year 2014.

2.        In February, Bank Negara Malaysia has announced that the Malaysian economic growth has reached 5.8% in the fourth quarter of 2014 and achieved an average growth of 6.0% in 2014. Even though Malaysia’s economic growth remain robust, however there remain many uncertainties as to the domestic and international economic environment as well as the changes in the economic measures adopted by the Malaysian Government. The global crude oil prices have fallen sharply since November 2014; in the meantime, Ringgit Malaysia depreciating over major currencies has caused the consumer price index (CPI) to rise in January 2015 as well as adding pressure to inflation. Besides that, the depreciation of ringgit has seem to be benefited the export enterprises as Malaysian products is now cheaper in overseas’ market, yet the import enterprises have to face with the rising costs of raw materials. These chain of effects of market changing continues to surface, as such, businesses must enhance their adaptation ability and to take effective measures in times for business sustainability and remain competitive and survive.

3.        The implementation of Goods and Services Tax (GST) in Malaysia will take effect in two more days. In preparation for this new tax regime, businesses have to spend an amount of money to purchase new accounting software, seeking consultancy advises and send staffs for training. Undoubtedly the implementation of GST has increased the costs of doing business; affect the cash flow of the company and consumer sentiment.  Businesses, especially the Small and Medium Enterprises (SMEs) need time to adapt to this new tax regime, and to face with a plethora of problems which may have arises with the implementation of GST. Therefore, ACCCIM would like to urge the Royal Customs of Malaysia to strengthen communication and provide proper guidance to the business community during the initial phase of implementation, and avoid taking stern actions and legal punishments to businesses. Cooperation between public and private sectors will ensure a smooth implementation of GST.

4.        ACCCIM supports the Government Transformation Programme and the Economic Transformation Programme which will lead Malaysia towards achieving the vision as developed and high income nation, generating an income per capita of 15,000 US dollars by 2020. Malaysia’s economic and political stability has always been one of the main considerations for foreign investors to invest in Malaysia. The Malaysia business community hopes that the Government will continue to adopt the advocacy of moderation, maintain social stability and harmony, to create a business friendly environment so as to boost the economic development by attracting more foreign investment and stimulating more local business development.

5.        The realisation of ASEAN Economic Community (AEC) will lead to a single-market and a region fully integrated into the global economy. The AEC has more than 600 million populations, a region of free flow of goods, services, investments, skilled labours and capitals. The AEC will bring both opportunities and challenges. The Malaysian Government has been taking efforts to create more awareness and understanding among the business community on the objectives and benefits of the AEC, and its impact to businesses. The Malaysian business community ought to prepare themselves for the AEC as this will enable them to tap the opportunities and to compete with our counterparts among the ASEAN countries.

6.         This economic survey covered many current issues, such as the high cost of doing business, prices of commodities, AEC, the effect of the Ringgit Malaysia exchange rate on businesses, and preparation for the implementation of GST and so forth. Dr. Leong Kai Hin, Chairman of the ACCCIM Commerce Committee will brief on the findings of the survey.

7.        On behalf of the ACCCIM, I would like to thank the Commerce Committee and 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.