(From bottom left) A screenshot of the virtual press briefing led by Tan and ACCCIS secretary-general Jonathan Chai.
KUCHING (Sept 24): The Sarawak Economic Situation Survey Report has found that over 36 per cent of businesses experienced severe cash flow problems and were unable to cover business operations costs for three months during the Covid-19 pandemic.
Carried out by the Associated Chinese Chambers of Commerce and Industry Sarawak (ACCCIS) between Aug 12 and 31 this year, the report covering this year and next year involved 316 respondents from the business community across Sarawak.
Most of the respondents were from Kuching at 113, followed by Sibu (77), Bintulu (32), Miri (24), Simanggang (13), Sarikei (10), Betong (7), Mukah (7), Batu Niah (5), Serian (5), Kapit (5), Samarahan (5), Baram (4), Bau (2), Sebuyau (2), Saratok (1), Limbang (1), Bintangor (1), Sibuti (1), and Daro (1).
During a virtual press briefing today, ACCCIS president Datuk Tan Jit Kee said 36.4 per cent of the respondents had very tight cash flow problems and were unable to cover the costs of business operations, raw materials, and manpower for three months.
“Revenues were badly hit with 80.5 per cent of the respondents’ business revenues markedly below pre-pandemic levels.
“While businesses are looking forward for a smooth transition towards a safe reopening of the economy under the National Recovery Plan (NRP), backed by the acceleration of National Covid-19 Vaccination Programme, most businesses expect our economy and business conditions to get worse in the second half of this year,” he said.
Tan said 85.8 per cent of the respondents took a very cautious view and had no confidence that the economy would recover next year.
He said the survey served as an important source of information for direct insights on the assessment of current and future economic conditions from the perspective of the business community.
At the same time, it would also serve as input for ACCCIS’ engagement and consultation with the government and relevant agencies on issues and problems encountered by the business community, he said.
“ACCCIS has been actively engaging with the government and relevant agencies regarding the issues faced by the business community in Sarawak. We have submitted a number of proposals to various ministries on numerous occasions.
“As our members have made significant contributions to the economic development in Sarawak, a closer look and analysis of their assessments and expectations on the current development and future outlook of the economy and business would enable the government, research institutions, and researchers to better assess Sarawak’s economic and business environment, supplemented by the official statistics and other private surveys,” he explained.
Tan said the results also showed that most businesses are struggling to cope with the pandemic’s drawn-out impact.
He pointed out production and operations has been limited, demand has declined, and many are anxious about poor cash flow, credit, and debtors’ conditions.
Amidst the cautious view on the outlook of the State’s economic and business environment, he said ACCCIS hoped the government, relevant ministries, and agencies would come up with effective policies and work closely with business chambers and other stakeholders to provide a more conducive environment for businesses post Covid-19.
He also hoped that the State Disaster Management Committee (SDMC) would draw up practical initiatives and functional measures in the quest to overcome the Covid-19 pandemic’s challenges.
“In particular, we need to speed up the opening up of economic activities and lift up the workforce capacity of our civil service as soon as possible,” he added.