Chinese business community optimistic over 2013 To 2015 outlook

The Chinese business community is optimistic over the economic outlook from 2013 to 2015 on the back of a better 2012 second half (2H12) performance.

This is according to a survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

The survey, "Economic Situation of Malaysia for the 2nd Half of 2012," showed 56 per cent of respondents expressing confidence in the outlook, a 13 percentage points hike from the 46 per cent recorded in the previous survey.

National Council Member cum Chairman of Commerce Committee Dr Leong Kai Hin said the outcome was due to improvements experienced by businesses in respect of factors such as sales, production volumes and improved collections.

"Based on the 2H12 results, they (Chinese business community) project that the better performance would continue over the next three years, amid uncertainties in the global economic environment," he told a media briefing on the survey here today.

A total of 408 companies were involved in the survey, comprising various sectors like wholesale and retail, manufacturing, construction, real estate, professional and business services, as well as telecommunication and information technology.

The survey was conducted to gain feedback and opinion from Chinese businessman on the business environment for the period reviewed, and assist the government in gauging the economic situation facing the Chinese business community, while providing a basis for the ACCCIM to submit relevant memoranda to it.

The survey also reveals that the 2H12 recorded an increase in new orders from overseas markets, an improved employment market, stable wages and such.

The major factors affecting performance were government policies, manpower shortage, an increase in operating costs and the price of raw materials as well as domestic competition.

On investments, the Deputy Chairman of the Socio-Economic Research Committee, Peck Boon Soon said according to the survey, many Chinese small and medium enterprises (SMEs) appear not to have benefited from the various government initiatives.

He said this can be seen through the involvement of the Chinese business community in the government Economic Transformation Programme (ETP), especially in oil and gas projects, as well as development of the Iskandar Region.

He claimed that the survey should be taken as a guide for the government to intensify efforts to look into further means of assisting the Chinese SMEs.

For 2013, Peck said Malaysia's private investment as a whole, will probably be moderate, but growth would remain quiet strong at above 10 per cent.

"The upward momentum of 2012 investments is likely to be sustained this year but the path to growth would be moderate, due to high risk following an uncertain global economic outlook," he added.

He noted that the government's ETP and an expected recovery of the world's two major economies, the United States and China, will boost positive sentiment for investments.

Also present were ACCCIM President Datuk Lim Kok Cheong and Secretary-General, Datuk Low Kian Chuan.