ACCCIM Survey Reports

Report on Economic Situation of Malaysia (2nd Half of 2009)


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 survey would be helpful to the Government either in making adjustments to the existing policies or in the formulation of new policies.
• Provide a basis for ACCCIM to submit relevant memoranda to the Government.

Profile of respondents

• The respondents are mainly from wholesale and retail, manufacturing, professional and business services, and construction.
• More than 90% of the respondents were from small and medium-scale enterprises (SME).
• Nearly 51% of the respondents were from manufacturing based businesses whereas 49% were from services based business.
• About 10% of the manufacturing based business surveyed reported having annual turnover that exceeded RM25 million and nearly 20% of the services based business companies had annual turnover are more than RM5 million.
• Nearly 80% of the respondents were domestic market oriented whereas 20% 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 2nd half of 2009 ?
• Pick-up in Sales Performance
• Production Volume Unchanged
• Increase in Inventory
• Improved in Collections of Payment
• New Orders from Overseas Market Increased
• Pick-up in New Local Orders
• Improvement in Local Sales Prices
• Unchanged for Employment Market
• Wages Were Stable
• Pick-up in Capacity Utilisation
• Investment in New Resources / Plant Shrank

The Malaysian economy continued to grown in the 2nd half of 2009

ii. What were the major factors adversely affecting business performances in the 2nd half of 2009 ?
• Government policies
• Increase in operating cost and price of raw materials
• Manpower shortage
• Domestic competition

iii. Are the Chinese business communities optimistic or pessimistic about the Malaysian economic outlook ?
• The Chinese business community remains cautiously optimistic about the economic outlook of Malaysia in 2010 and 2011.

iv. Current issues facing the Chinese businessmen in relation to trade, investment and industrial development in Malaysia.
• The Chinese businessmen have yet to fully benefit from the economic stimulus packages that were introduced by the Malaysian Government.
• Only 28% of respondents on overall replied that their business had somewhat benefited from the Working Capital Guarantee Scheme and Industrial Restructuring Loan Guarantee Scheme.
• About 57% of the respondents for 2nd half 2009 have indicated that they have benefited from the current low level of borrowing cost.
• The majority (60%) of respondents replied that the effects of the Government’s two economic stimulus spending had yet to trickle to their businesses.
• More than half of the respondents opined that the GST will bring the negative impact on their business.
• About 38% of respondents thought that the ACFTA would have negative impact on their businesses.
• More than 90% of the respondents polled expressed concern over the public safety in this country.

Click here to read the full report


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