ACCCIM MEDIA CONFERENCE on Survey Report on Economic Situation of Malaysia for the 2nd Half of Year 2013
21-3-2014 (Friday), 11.30 am, ACCCIM Conference Room
Speech by Dato’ Lim Kok Cheong, President of ACCCIM
1. First of all, I would like to express my appreciation to all the media representatives for your presence this morning.
2. The global economy grew at a slower pace. The Malaysian economy remains confronted with challenges and uncertainties. Findings from the past ACCCIM surveys reflected that the business community has experienced continuous challenges in doing business. Given the weak domestic demand and deterioration in sales performance, more and more SMEs compete fiercely with each other. There were some businesses forced to lower selling prices to maintain their sales volume or to reduce number of employees to stay in business.
3. In year 2013, the business community was affected by several policies announced by the Government such as minimum wage policy, the extension of retirement age and petrol price increased due to fuel subsidies cut. This was followed by rise in electricity tariffs this year and implementation of GST in year 2015 and so on.
These measures were no doubt leading to an increase on cost of doing business and thus contributing to the inflationary pressure in Malaysia. More businesses are caught in a dilemma in a wake of difficulties in managing the rising costs and inability for companies to pass-on the cost increased to consumers.
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