(From left) MIA registrar Sudirman Masduki, Nurmazilah, Merina, Deputy Minister of Economic Affairs Dr Radzi Jidin, Salihin, ACCA council member Datuk Lock Peng Kuan and ACCA Malaysia head of strategic partnership Hishamuddin Jalil during the launch of the survey report.
KUCHING: The new government’s several policies addressing economic and anti-corruption themes will drive Malaysia’s business performance in 2019.
According to respondents to the inaugural joint Business and Economic Outlook 2019 Report released jointly by the Malaysian Institute of Accountants (MIA) and the Association of Chartered Certified Accountants (ACCA) Malaysia, government policies in addressing economic issues and combating corruption was ranked as the primary driver of Malaysia’s business performance in 2019.
The survey respondents also singled out Malaysia’s economic growth, the weak ringgit vis-à-vis exports and buoyant consumer spending as other positive drivers for growth in 2019.
In his opening remarks at the official launch of the survey report, MIA president Encik Salihin Abang said, “This survey is the first of its kind that focuses on the perspectives of leading accountants or finance professionals on the economic landscape and critical factors impacting business performance in Malaysia. Our survey respondents comprise of key advisors and decision-makers.”
Speaking from ACCA’s perspective, ACCA Malaysia Advisory Committee chair Datuk Merina Abu Tahir said, “Our vision is that this inaugural joint report will be the first of more to come, that it will eventually become “the go-to” annual business and economic outlook findings for the accounting and finance professionals in Malaysia. It is our hope that these resources will help support our accountants in their role as partners and advisors to their businesses, corporations and the government.”
Among factors impeding growth include the rising cost of living and low wage growth as key factors. Other factors impeding growth include the negative impact of hefty government debt on public sector investment expenditure, and the rationalisation of large public-private and infrastructure projects.
Meanwhile, 34 per cent of respondents cited Asean’s strong growth potential as a significant driver for 2019, and 53 per cent of respondents opined that China’s Belt and Road Initiative would be positive for Malaysian businesses. On the downside, 27 per cent of respondents are wary of the ongoing US-China trade war’s potential impact to Malaysian businesses, compounded by the slowing Chinese economy.
Looking at challenges to growth, 47 per cent of respondents named hiring the right talent as the leading challenge, with respondents in public practice ranking this much higher (64 per cent) compared to the corporate sector (36 per cent). Regulatory changes (42 per cent) ranked as the second most significant challenge, and rising operating costs and staff costs tied at third place (41 per cent).
A total of 399 accountants and finance professionals responded to the survey, which was conducted online between November 23 and December 9, 2018. More than three-quarters (78 per cent) of the respondents hailed from the corporate and public practice sectors. Nearly 50 poer cent of respondents were from firms with over 300 employees, both listed or non-listed, and both top and middle management were well represented.
Part of a collaborative research initiative undertaken by MIA and ACCA, this inaugural report seeks to provide insights into the collective view of accountants and finance professionals on the business and economic outlook for Malaysia in 2019.
Subsequently, in her presentation of the survey’s key findings, MIA chief executive officer Dr Nurmazilah Datuk Mahzan expressed hope that the survey “will facilitate further discussion on the development of pragmatic solutions and strategies that will effectively address some of the challenges faced by businesses in this country.”