External risks pose challenges for local businesses, says ACCCIM

KUALA LUMPUR, Sept 12 (Bernama) -- External risks posed challenges to local businesses despite projects under the Economic Transformation Programme and the government's measures to promote domestic demand, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

Its president, Tan Sri William Cheng Heng Jem, said external factors, such as developments in the US and Europe, would have a big impact on the Malaysian economy, which has seen Bank Negara Malaysia keeping the overnight policy rate unchanged at 3%.

"The US credit rating downgrade and the debt burden in Europe have an adverse impact on Malaysia's economy, especially the export-oriented manufacturing sector," he said here Monday.

Cheng said this at a media briefing after the release of the association's survey report on the economic situation for the first half of this year.

Given the increasingly uncertain global economy, he said, Malaysian businesses would continue to look towards the government to introduce and implement stimulating economic policies and accelerate implementation of public development projects to ensure domestic demand remained strong.

The Chinese business community has urged the government to review the price of natural gas for industrial usage, and the government should compare the price with other natural gas producing countries to have a competitive pricing, he said.

On electricity tariff, he said, ACCCIM has suggested the government conduct a study on how to reduce the cost of generating power and thus cut the cost of doing business.

"This will help enhance the global competitiveness of Malaysian industries," he said.

He urged the business community, particularly small and medium enterprises (SMEs) to constantly innovate as well as improve their business operations.

"Being productive and innovative by adopting new technologies are vital to the survival and profitability of SMEs in strengthening their competitiveness," he said.

Cheng said ACCCIM hoped the government would also supply goods to the 30,000 sundry shops nationwide besides to the 1Malaysia shops launched in June this year.

The 1Malaysia shops sell 250 grocery items under "Kedai Rakyat 1Malaysia" brand at 30% to 40% below market prices.

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