Good afternoon, ladies and gentlemen. Welcome to ACCCIM’s media conference for the Survey Report on the Economic Situation of Malaysia for the first half of 2017.

Twice a year, the ACCCIM Commerce Committee conducts a survey on the economic situation of Malaysia in order to obtain the business community’s views. The findings of the survey will form the basis of ACCCIM’s recommendations and proposals to the relevant ministries and agencies.

By closely working with the government to address a wide range of business issues, we hope that the relevant ministries and agencies would have a clearer understanding of business needs, thereby helping the business sector lower their cost of doing business.

For example, the ACCCIM and other related organisations are actively following-up on the proposed Employment Insurance System (EIS). It has held a joint meeting with the Malaysian Employers Federation (MEF) and the Malaysia Trade Union Congress (MTUC) to gather ideas and feedback, and to seek a consensus on the contribution rate and implementation of the EIS. We have also recommended that the government forms a tripartite committee comprising representatives from the government, employers, and employees to collect comprehensive views from all stakeholders.

Nation’s strong economic performance to benefit SMEsThe implementation of business friendly policies is a pre-requisite for promoting private investments and stimulating economic growth. For the economy to transform and achieve a quantum leap in its development, it is imperative that the government introduces new policies. Nevertheless, we hope that any new measure will be implemented in a moderate and gradual manner so as to allow more time for both enforcement agencies and businesses to familiarise and adapt to these new measures, thus minimising compliance cost and avoid disruptions to businesses.

2018 Budget—ACCCIM’s recommendations
In the 2018 Budget in October, ACCCIM hopes that the Budget will be a people-centric and business-friendly budget. ACCCIM has made several proposals and recommendations to the government, including a gradual reduction of the corporate income tax to 18%. For SMEs, chargeable income threshold should be increased to RM2million while tax rates to be lowered to 15%. We also appeal to the government to decrease personal income tax rates.

A highly efficient public transportation will be a key driver of the country’s economy and development. The country’s first MRT Line has begun operating, which has improved convenience and eased traffic congestion in Kuala Lumpur to some extent. We are also pleased to see the construction of the East Coast Rail Link (ECRL), which we believe will spur the economic development of the three East Coast states and improve the movement of both cargo and people.

According to the report by the World Bank’s Malaysia Economic Monitor: Transforming Urban Transport published in June 2015, residents of Greater Kuala Lumpur spend more than 250 million hours a year stuck in traffic, and the total cost of traffic in Greater Kuala Lumpur is estimated at 1.1 to 2.2 % of the nation’s GDP in 2014.

Being caught in traffic congestions for hours is not only a waste of resources, but also an economic loss and a reduction of efficiency. We welcome the construction of MRT and Rail Link to ease the traffic congestion.

Conclusion
The ACCCIM’s latest Survey Report of our country’s economic situation covers some topical issues such as inflation rate, hiring of foreign workers, tourism tax, digitalization of the economy, impact of the One Belt One Road Initiative, and so on. Dr Leong Kai Hin, Chairman of our Commerce Committee, will present the detailed findings of our Survey Report to you in a short while.

Lastly, on behalf of the ACCCIM, I would like to thank the economic survey task force and the team from Universiti Tunku Abdul Rahman (UTAR) for their joint effort in completing this report.

Thank you.

Survey Report on the Economic Situation of Malaysia for the First Half of 2017