ACCCIM Survey Reports


Significance of the survey

  • To assist the Government in gauging the economic situation facing the Chinese business community.
  • To collect feedback and opinion on various measures undertaken by the Government to enable them to evaluate the effectiveness of those measures.
  • This study would be helpful to the Government either in making adjustments to the existing policies or in the formulation of new policies.
  • The results from the survey also provide a basis for ACCCIM to submit relevant memoranda to the Government and serve as a reference for the business community and foreign investors in formulating investment plan and strategy.


Profile of respondents

  • The respondents were mainly from wholesale and retail (24.9%), manufacturing (18.3%), professional and business services (15.4%), construction (10.7%), real estate (5.8%), finance and insurance (5.2%), and tourism, shopping, hotels, restaurants, recreation and entertainment (5.2%) as well as others (14.5%).
  • About 21% of the respondents were from Non-SMEs (according to annual turnover and full time employees)
  • About 82.9% of the respondents were domestic market oriented whereas the remaining 17.0% focused on “both domestic and export” markets (10.1%) or ‘export’ markets (7.0%).


Major survey questions and findings
The major survey questions are as follows :
i. Was the Malaysian economy deteriorating, remaining unchanged or growing in the 2nd half of 2013 ?

  • Slight Deterioration in Sales Performance
  • Slight Improvement in Production Volumes
  • Inventory Levels Unchanged
  • Unchanged Pattern of Collections from Customers
  • Slight Improvement in New Orders from Overseas Markets
  • New Local Orders Show Significant Drop
  • More businesses have had to reduce their Local Sales Prices
  • Employment Market Relatively Unchanged
  • Wages Cost Per Unit of Output Increased Slightly
  • Significant Drop in Capacity Utilization
  • More Respondents Choosing to Reduce Investments in New Resources or Plant


The Malaysian economy was seen to have experienced little growth in the 2nd of 2013 ii. What were the major factors adversely affecting business performances in the 2nd half of 2013 ?

  • Government policies
  • Increase in operating cost and price of raw materials
  • Domestic competition
  • Manpower shortage


iii. Is the chinese business communities optimistic or pessimistic about the malaysian economic outlook ?
Overall, the Chinese business community is generally pessimistic about the economic outlook for Malaysia for 2014 and 2015 but are looking towards an improvement in 2016.

iv. Current issues facing the chinese businessmen in relation to trade, investment and industrial development in Malaysia. 
(I) Real Property Gains Tax (RPGT)(a) Curb Speculative Activities in the Property Sector

  • 47% of the respondents believed that the increase in the RPGT rates is likely to yield positive results in the property sector, in particular for those seeking to see a cooling of the property sector where many have viewed that the prices of properties have sky-rocketed to the extent of being beyond the means of the average persons on the street.
  • 21% of the respondents believed that in spite of the increase in the RPGT rates, property values are still expected to rise.
  • Some 32% of the respondents were of the opinion that the increase in the RPGT rates as provided for in Budget 2014 were too steep and would have negative effects on the property sector.


(b) Proposals in Budget 2014 affecting the Real Property Sector is likely to Curb Foreign Speculation
A large majority (72%) of respondents believe that efforts by the Government such as revisions made to the RPGT rates for disposal of properties by non-citizens and companies, the increase of the minimum price of property that may be purchased by foreigners to RM 1 million and the prohibition of developers from implementing new projects with Developer Interest Bearing Scheme (DIBS) feature very likely to negatively affect foreign buyers’ interest in the Malaysian property market.
(II) Goods and Services Tax (GST)(i) GST Rate
(a) The businesses however are still of the opinion the starting rate of 6% is too high (an almost unanimous response by the businesses).
(b) 41% of the respondents recommended a starting GST rate of 3% which 31% recommended 14% starting GST rate.
(ii) Operational Issues for GST
(c) Do you understand the workings of the GST system?  53.0%
(d) Are you prepared to send your staff to attend courses to get familiar with GST system? 84.0%
(f) Are you aware that registration for GST by businesses would be open starting October 2014 and may be done on-line via official website of Malaysia GST, Royal Malaysian Customs Department?  55.0%(g) Will the impending implementation of GST lead to increase in cost?  85.0%
(e) Learning Period 49% of the respondents felt that a minimum learning period of one (1) year should be granted with another 40% of respondents believing that the learning period should be up to two (2) years.
(III) Increase in Costs
(a) The business community is crying out for understanding and help from the Government as the majority of respondents (87%) claim that their businesses are finding it increasingly difficult to cope and survive, especially given that the business environment itself has become more competitive and  challenging.
(b) Some 60% of the respondents claimed to be able to pass on the rising costs to the consumers. Alarmingly however, is the fact that some 40% of businesses claim that they would not be able to pass on costs increases to consumers.

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