Tan (centre), with (from left) Kuek, Chai, Wee and Ho at the news conference – each holding a copy of the ACCCIS survey.
KUCHING: Only 10.7 per cent of businesses in Sarawak are optimistic about the country’s economic conditions and the outlook for this year, in view of the ongoing Covid-19 pandemic, according to a poll conducted by the Associated Chinese Chambers of Commerce and Industry Sarawak (ACCCIS).
The survey on ‘Business and Economic Conditions Survey Report (2H 2020 and 2021F) was carried out from Dec 14 to 31 last year.
Based on this, ACCCIS secretary-general Jonathan Chai said the percentage of those being optimistic about the nation’s economic conditions and outlook for next year (2022) rose to 35.3 per cent.
He added that 31.2 per cent of them opined that Malaysia’s economy would remain challenging or get worse this year.
“This percentage will drop to seven (per cent) next year (2022),” he said during a press conference at Wisma Chinese Chambers here yesterday, where ACCCIS president Dato Tan Jit Kee, vice-presidents Datuk Wee Kok Hui and Kuek Eng Mong, and assistant treasurer Ho Siew Hua were among those present.
The survey involved 215 ACCCIS members from across Sarawak.
ACCCIS has 23 constituent members with a combined membership of not more than 5,000.
According to Chai, more than 95 per cent of ACCCIS members are running small and medium enterprises (SMEs) across various industries including retail, construction, manufacturing and agriculture.
Based on the survey, he said 71.6 per cent of them remained concerned about the 3Cs – cash flow, cost and credit – while 23.3 per cent said they could manage.
The survey also found 57.7 per cent of members having cut down on the recruitment of new employees, while 37.2 per cent businesses had hiked up the price of goods and services as a result of the pandemic.
Meanwhile, Tan said he was surprised to discover that 70.2 per cent of ACCCIS members had maintained employees’ salaries, while 39.5 per cent retained the existing number of employees despite all the economic challenges arising from Covid-19.
“Our members are concerned about their employees, worrying about where they could seek employment should retrenchment take place.
“We consider it as part of fulfilling our CSR (corporate social responsibility). We are part of society and so, we play our role to help the society,” he said.
Tan added that some of his own employees did not contribute much to his company during the pandemic, but they still received full salaries.
According to the survey, 89.3 per cent of ACCCIS members did not retrench their employees last year, and 89.8 per cent said they had no plan of retrenchment this year.
The survey also pointed out that 60.5 per cent members felt that the 2021 National Budget would not help the SMEs.
In responding to a question, Chai said ACCCIS president Tan is sitting on the State Economic Action Council (SEAC) and would forward proposals, if any, to the Sarawak government to help businesses in the state.
He noted that at present, the Sarawak government lacked the input from the private sector with regard to formulating economic policies.
“Our national body ACCCIM (Associated Chinese Chambers of Commerce and Industry Malaysia) has its Socio-Economic Research Centre, so we are trying to emulate our national body to conduct survey in Sarawak and the collected data can be helpful to the government when it comes to formulating policies.
“It’s just like a doctor prescribing medicine, which should be more effective. And the data collected should reflect the accurate situation and conditions on the ground,” he said.
Chai added that ACCCIS wanted to keep the state government informed about what was happening on the ground so that the latter could come up with better policies to help businesses.
Asked how many SMEs in Sarawak had faced closure throughout the pandemic, he said the latest survey did not touch on this aspect.
Nonetheless, he felt that the most recent figure released by the government had not been ‘accurately’ reflecting the actual scenario, given that the figures was based on the winding-up statistics of the Companies Commission of Malaysia (SSM).
He said there were proprietorships and partnerships registered under the Inland Revenue Board (LHDN) that could have seen the winding-up of businesses too.
“As for a comprehensive figure, we would try to see in the future to have some survey on this,” he added.