Report on Economic Situation of Malaysia (1st Half of 2010)
EXECUTIVE SUMMARY
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 result of the survey would also provide a basis for ACCCIM to submit relevant memoranda to the Government.
Profile of respondents
• The respondents were mainly from the respondents were mainly from wholesale and retail, manufacturing, professional & business services and construction sectors.
• More than 13% of the respondents were from Non-Small and Medium-scale Enterprises [Non-SME] (according to annual turnover).
• For the manufacturing based business, 22.6% of the respondents reported that their companies’ annual turnover was between RM5,000,000 to RM9,999,999. Nearly 20% of the companies surveyed reported having annual turnover that exceeded RM25 million.
• Nearly 78% of the respondents were domestic market oriented whereas the remaining 22% focused on export or‘both domestic and export’ markets.
Major survey questions and findings
The major survey questions are as follows :
i. Did the Malaysian economy deteriorating, remain unchanged or grow in the 1st half of 2010 ?
• Pick-up in Sales Performance
• Increase in Production Volume
• Increase in Inventory
• Improved Collections of Payment
• New Orders from Overseas Market Increased
• Pick-up in New Local Orders
• Relatively Unchanged Local Sales Prices
• Unchanged Employment Market
• Wages Were Stable
• Pick-up in Capacity Utilisation
• Slight Increase in Investment in New Resources or Plant
The Malaysian economy continued to grown in the 1st half of 2010
ii. What were the major factors adversely affecting business performances in the 1st half of 2010 ?
• Government policies
• Manpower shortage
• Increase in operating cost and price of raw materials
• Domestic competition
iii. Are the Chinese business communities optimistic or pessimistic about the Malaysian economic outlook ?
• The Chinese business community remained cautiously optimistic about the economic outlook of Malaysia in 2010, 2011 and 2012.
iv. Current issues facing the Chinese businessmen in relation to trade, investment and industrial development in Malaysia.
(A) New Economic Model
• Half of the respondents (51%) replied that they understood the goals or aims of the NEM.
• 61% of the respondents thought that the NEM would not benefit their business.
• With regards to the goal of achieving high quality of life, nearly 60% of the respondents replied that it was possible to achieve such a goal.
• Over half of the respondents replied under the “possible” and “maybe” categories for the goal of high per capita income.
• Nearly 70% of the respondents replied under the“possible” and “maybe” categories for the goal of sustainability.
• 60% of the respondents chose the “not possible” category for the goal of equitable distribution of income.
(B) Foreign Workers
• More than 60% of the respondents claimed that the increase in the levy of foreign workers would result in a negative impact on their businesses. This could be due to the fact that 63% of the respondents being heavily dependent or somewhat dependent on foreign workers
(C) Effect of Reduction of Subsidies
• More than 80% of the respondents were of the opinion that the abovementioned subsidy cuts would lead to high inflation in the immediate term. In addition, 74% of the respondents claimed that these subsidy cuts would bring negative impact on their businesses.
(D) “Brain” drain problem
• 75% of respondents felt that their businesses had been negatively affected by the ‘brain’ drain problem that is currently afflicting Malaysia.
