ACCCIM President Speeches

28 Feb 2013

Survey Report on Economic Situation of Malaysia for the 2nd Half of Year 2012

Survey Report on Economic Situation of Malaysia for the 2nd Half of Year 2012
28-2-2013 (Thursday), 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.

Bank Negara Malaysia announced that Malaysia achieved sustainable economic growth despite the global economy has yet to fully recover. The country’s economy recorded a growth of 5.6 per cent last year.

Nevertheless, not everyone is optimistic about Malaysia’s economy in view of the existing external economic scenario. Facing the challenges from home and abroad, it is expected that 2013 is yet another challenging year for Malaysian enterprises.

The cost of doing business and raw material prices continue to increase. Businesses are facing difficulties to maintain their competitiveness and profit- growth.

The manufacturing sector is currently confronted with a grim situation since the fully implementation of the minimum wage policy, which covers foreign workers as well. Many SMEs are running into difficulties being unable to cope with the sharp rise of labor cost.  ACCCIM has proposed a gradual scheme of implementation according to different regions, different industries and size of the companies. However, it is regrettable that the proposal has not been given consideration by the government, and now disputes between employees and employers are seen in many places where the SMEs are located.

In the meantime, the date of 13th general election is yet to be announced. Given the prevalence of uncertainty, most businesses continue to adopt a wait and see approach, or to defer their investment plans.

Under this circumstances, it is hard to see the real effect of the measures on stimulating private investment and domestic consumption announced in the Budget 2013 as well as the Economic Transformation Programme in driving the economy.

The pro-business policy is an important element to strengthen the economy by both government and the private sector. The government should further simplify the administrative procedures, improve efficiency and quality of service, in order to improve the business environment.

Feedback and proposals from business community should be given serious consideration by the government prior to implementation of any policy in order to avoid subsequent changes and adjustments when the implementation is not smooth.

On the other hand, I wish to once again urge the SMEs to seek ways and means to cope with the unprecedented impact of implementation of minimum wage, as well as to transform and overcome difficulties in the situation.

This survey is conducted as a means to gauge the economic situation of the Malaysian Chinese business community for the Second Half of year 2012. The survey also covered some current issues in relation to the Government policies and measures, namely implementation of minimum wage, impact of external economic factors, views in relation to the current state of the Malaysian economy in relation to the coming General Election, Competition Act, prices of properties in Malaysia, and so on.

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.


6th Floor, Wisma Chinese Chamber, 258, Jalan Ampang, 50450 Kuala Lumpur, Malaysia.


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