ACCCIM MEDIA CONFERENCE on Survey Report on Economic Situation of Malaysia for the 1st Half of Year 2013

26-8-2013 (Monday), 10.30 am, ACCCIM Conference Room

Speech by Dato’ Lim Kok Cheong, President of ACCCIM

First of all, I would like to express my appreciation to all the media representatives for your presence this morning.

Three and a half months after the 13th election, the private sector are expected to return to normal business, with hopes of a more stable economic and political environment, more open and “business-friendly” policies as well as positive consumer sentiments. The ACCCIM supports the government’s ambition to build a sustainable economy by stimulating more foreign investment and boosting domestic demand through in the implementation of Economic Transformation Programme (ETP).

The Government has a target to narrow the fiscal deficit to 4% of GDP this year and to 3% by 2015, while there is a debt-to-GDP ceiling of 55%. Prime Minister Dato’ Seri Najib would unveil detailed strategies on how to address growing concerns over the health of Malaysia’s public finances during the upcoming Budget in October this year.

In order to improve its public financial management and to strengthen its fiscal position, the Government needs to be more prudent in spending particularly in its Public-Private Partnership Programme and also in providing the guarantees to the GLCs to ensure the spending is purposeful, meeting strategic objective and greater transparency.

The ACCCIM also support government’s commitment and increased efforts in reducing crime rate in the country to create a safe and reliable environment for investment and business. The violent crimes and firearm incidents nationwide has affected Malaysia’s reputation caused concerns in the business community and the public at large. More effective measures have to be taken in combating crime to improve the public confidence.

Ladies and Gentlemen,
Under the ASEAN Economic Community (AEC), a single regional common market of ASEAN countries will be created by 2015. The regional integration’s objective is to create a competitive market of over 600 million people in ASEAN countries. More and more businesses are heading to ASEAN markets to increase sources of revenue regionally. Hence, besides productivity improvements and capability upgrading, Malaysia’s enterprises, particularly SMEs need to have an international mindset to prepare themselves in a more competitive and open market. For years the ACCCIM has been organising various activities to assist SMEs venturing into market abroad. I urge SMEs to tap on various government’s schemes available to access greater opportunities in ASEAN as well as for business expansion and diversification through internationalisation.

The ACCCIM survey for the 1st half of year 2013 covered some current issues in relation to the Government policies and measures, namely implementation of Goods and Service Tax (GST), plans to venture abroad, Free Trade Agreements (FTA), Trans-Pacific Partnership Agreement (TPPA), and so on.

From the survey, we found that businesses in Malaysia have now begun to accept the inevitability of the implementation of GST in Malaysia. However, we need a clear timetable for the introduction of the GST. The standard rate for GST should start from as low as possible and should not burden the rakyat and the ACCCIM expects GST implementation to be compensated by a reduction in personal income tax and corporate tax rates.

Chairman of the ACCCIM Commerce Committee Dr. Leong Kai Hin will brief on the survey findings in a short while. Last but not least, I commend ACCCIM Commerce Committee’s efforts, particularly Dr. Leong Kai Hin and Mr. Peck Boon Soon, with UTAR cooperation in making this survey a success.

I also take this opportunity to thank the media for your support and cooperation in giving continued coverage to this survey exercise.

Thank you.