Pessimism Prevails For Economy In Near Term, Sentiment Picks Up For 2018, says ACCCIM
“Attention should be focused on the issues that businesses face, as their adverse performance could have a significant impact on the economy. “Other concerns include a shortage of foreign workers in the country, which continues to impact the economy.
The local Chinese business community is optimistic of a turnaround in the Malaysian economy in 2018, when conditions are expected to improve.
However, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said businesses surveyed showed pessimism this year and for 2017.
“The level of pessimism is somewhat reduced for 2017 and there is greater confidence in the economy by 2018,” it said, in its survey report on the economic situation for the first half of the year.
For the first six months of 2016, sales performance deteriorated in the manufacturing sector, in contrast with an improvement in the sales performance for businesses in the wholesale and retail sector.
The local Chinese business community is optimistic of a turnaround in the Malaysian economy in 2018, when conditions are expected to improve.
Performance isn’t expected to improve in the near term, as businesses expect to experience ‘poor collections’ based on challenging conditions and cash flow issues.
The latest figures are in tandem with the growth pace of the Malaysian economy, which grew by 4.1 per cent in the first half of the year.
Private sector activity continues to be the main engine powering the growth.
“Attention should be focused on the issues that businesses face, as their adverse performance could have a significant impact on the economy.
“Other concerns include a shortage of foreign workers in the country, which continues to impact the economy, according to ACCCIM president Datuk Ter Leong Yap.
He urged the government to lift the freeze on foreign workers, saying most businesses are still facing labour shortage issues, resulting in a reduced ability to accept new orders or to operate manually.
The government has opened four sectors (manufacturing, construction, plantations and furniture-making industries) for application to employ foreign workers.
News Source: NST
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