Media Conference on the Report of ACCCIM 2010 SMEs Survey

Speech by Tan Sri William Cheng, President of ACCCIM

10.00 a.m. 16th July 2010 ACCCIM Conference Room

A very Good Morning to all the friends from media. Thank you for attending this morning’s Press Conference on ACCCIM 2010 SMEs Survey Report.

With the transformation of national economy, and efforts to enhance development of the country and encourage more foreign investment to Malaysia, the ACCCIM has actively participate in various meetings with Government departments and agencies, as well as established closer rapport with other trade organisations and agencies such as FMM, MyIPO, PIKOM etc. to organise series of activities to create business community’s awareness on related issues, and submit proposals to raise the needs and concerns of private sector.

In order to assist the business community effectively, the ACCCIM is establishing a Socio-Economic Research Centre (SERC) to plan various projects for business community and prepare proposals address to related government departments through more professional, comprehensive and in-depth study on issues and problems encountered by Malaysian SMEs.

Ladies and gentlemen,

Vary from the previous SMEs Survey conducted by ACCCIM, the survey this year do not focusing on SMEs financing issues but rather focus on taxation matters, particularly on the proposed Goods and Services Tax (GST). It is with the hope that we can gather information on the problems faced by the SMEs prior to the implementation of GST and gauge their degree of readiness. By collecting such statistics and information, ACCCIM will be able to raise to the Government on the concerns of business community and propose possible remedial action to reduce the impact of GST to the industry.

The Government had announced the postponement on the second reading of proposed GST Bill originally scheduled in March 2010 to collect public opinion, especially after the first reading in December 2009. The ACCCIM’s survey, which is in line with the intention of the government, is to collect SMEs’ opinions. Although the Government has repeatedly stressed that the implementation of consumption tax is inevitable, yet according to the survey, obviously there is a big gap between public views and Government wish on the new consumption tax system. Publics do not understand the rational and the structure of this new consumption tax system. In view of this, Government need to strengthen its efforts in this regard, and educate the public through various medium for a positive view on the GST. The Government should also draw up a clear timetable and to provide more details so that public will have sufficient time to understand the details and to prepare accordingly. By having sufficient preparation, public, especially the businesses will not be caught by surprise and thus triggering series of negative impact, causing resistance and misunderstanding on GST. Secondly, the Government need to ensure the transparency and consistency on the GST and avoid unpredictable changes at all time so the businesses and public will not get confused. Meanwhile, business community, especially SMEs should take initiative, so as not to overlook the importance of computerising their companies’ accounts, because once the GST implemented, the SMEs without computerisation will be impacted directly and affecting its operations.

Malaysian SMEs, particularly SMEs operate in traditional ways, in general, are relatively passive to variety of new technologies and lack of access to information, and often lagging behind others. As Malaysian Government is now revising various acts and regulations, SMEs must take a proactive approach, to follow up and take a positive stand to those acts and its impact to the business sector, in order to be able to plan ahead and make appropriate adjustment to their operation and management style to ensure sustainable development. At the mean time, Government should give adequate time frame for private sector before the implementation of any new policy or new laws and provide sufficient and complete information and training, to ensure the effective implementation of policies or laws.

The detailed survey report will be briefed by Mr. Koong Lin Loong later. Finally, on behalf of the ACCCIM, I would like to thank all companies and individuals who involved and provided their assistance during the survey. The report will be submitted to the relevant government departments later, as well as upload to ACCCIM website for public access.

Thank you.

Read the ACCCIM 2010 SMEs Survey Report