ACCCIM upbeat about 2017 economic outlook

KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is upbeat about the country’s economic prospects for 2017, supported by increases in sales and production compared with last year’s figures.

“Exports are starting to pick up marginally since last year and ACCCM members believe there will be investments in the first half of 2017,” said Peck Boon Soon, member of Economic Survey Unit of Commerce Committee.

He said this at a media briefing on ACCCIM’s survey on the economic situation of Malaysia for the second half of 2016.

Peck said according to the survey results, 72 per cent of the respondents said that their firms’ sales were either ‘good’ or ‘satisfactory’, meaning that the businesses were able to sustain through the trough.

On the manufacturing sector, 75 per cent of the respondents said their performances were somewhat ‘improved’ or ‘sustained’, he said, adding that seven per cent in the wholesale and retail sectors reported ‘improvements’.

“The marginal improvement in sales performance may be attributed to the slight expansion in the Malaysian economy, where it has shown continued growth over the past quarters of 2016.

“Malaysia’s economic performance continues to be largely supported by private sector demand, which too, has shown continued positive growth to record 6.2 per cent in the fourth quarter of 2016,” Peck said.

ACCCIM President, Datuk Ter Leong Yap, said he was optimistic about the economic outlook for the year despite the cautious sentiment among stakeholders in the business community.

He said 35.3 per cent of the respondents said they were optimistic or somewhat optimistic.

In tandem with improvement in sales, the survey showed that 66 per cent of the respondents indicated their production had improved or held stable.

The respondents who forecast reduced production volumes in the next six months remained at 33 per cent compared with 40 per cent in the previous corresponding year.

According to the survey, there was greater expectation and confidence in the Malaysian economy by 2019, with the economic situation slowly nursing its way through 2017 and 2018.

The survey aims to gauge the economic situation faced by Chinese business community in the period concerned.

It covers four major areas – Malaysian economic situation in Second Half of 2016; factors affecting business performance; economic outlook and current issues; and, challenges in relation to trade, investment and industrial development in Malaysia.