(22-3-2018 at 2 pm at the ACCCIM Conference Room)

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

2 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 on the nation’s economic situation and government policies. This will enable relevant parties to better understand the situation on the ground and the needs of the business community, thereby enhancing their efficiency and productivity, lowering the business community’s cost of doing business, and ultimately creating a more people- and business-friendly environment.

3 The current survey shows that the business sector is increasingly optimistic, with 55% of respondents claiming that they were ‘optimistic’ or ‘somewhat optimistic’ about the Malaysian economy in 2018. The general outlook for the coming years is also encouraging, with this percentage increasing to 63% and 71% for 2019 and 2020 respectively.

4 In conjunction with the new policies implemented by the government, the ACCCIM Commerce Committee had incorporated in the survey questionnaire topics pertaining to the Employment Insurance System (EIS) to gauge the views of the business community. Findings of the survey showed that most members of the ACCCIM were aware of the government’s need to implement the EIS on 1st January 2018, and they are taking the necessary registration procedures. However, some business people are unaware of the objectives and benefits of the scheme. The ACCCIM is prepared to work with PERKESO [Social Security Organisation (SOCSO)] to educate and explain the system to both employers and employees.

5 Other key areas of concern are the developments of the Fourth Industrial Revolution or IR 4.0 and the Digital Economy, including the Digital Free Trade Zone (DFTZ) jointly developed by Malaysia and the Alibaba group. Most respondents are positive towards the development of the latest information and communication technology, and are actively exploring this area to keep pace with developments.

6 However, some business people are relatively ignorant about IR 4.0 – about half of the respondents said they do not understand how IR 4.0 will impact future business models. We are of the view that there is an absence of a platform for the business community to gain a deeper insight on the impact and benefits of IR 4.0. Therefore, Chambers of commerce and the relevant authorities should work hand in hand to instil knowledge in this area.

7 To ensure our members can access the latest business information, the ACCCIM and the Malaysia Digital Economy Corporation (MDEC) will explore opportunities for co-operation in organising activities relating to digital economy. The business community can check out updates in our website and Facebook, and take advantage of the digital economy in their businesses and future growth.

8 The current survey has also covered some current economic topics such as the rise in price of gas, the property sector, tax matters and others. Dr. Leong Kai Hin, Chairman of ACCCIM Commerce Committee will provide you a detailed report on the findings of the survey shortly.

9 Looking forward, the global economy is expected to continue to grow steadily. The International Monetary Fund (IMF) is also very positive about Malaysia’s economy. The government has announced a number of business-friendly incentives in the 2018 National Budget in its effort to optimize the overall business environment, especially the significant importance placed on the development of Small and Medium Enterprises (SMEs). The ACCCIM hopes that our members and the business community would seize the right timing and proactively seek out opportunities.

10 Lastly, on behalf of the ACCCIM, I would like to thank the Economic Survey Unit of the Commerce Committee and the team from Universiti Tunku Abdul Rahman (UTAR) for their joint effort in successfully conducting this report.

Thank you.

To view the ACCCIM Survey Report on the Economic Situation of Malaysia for the 2nd Half of 2017