Yek Siew Liong
BINTULU (Sept 27): The business communities are now more cautious as they prepare to face challenges of a bleak global economy next year.
The fears of recession, rising inflation and disruptions caused by ongoing geopolitical tensions are among the possibilities that have been taken into account as they need to be prepared for worst-case scenarios.
Bintulu Chinese Chamber of Commerce and Industry president Yek Siew Liong has shortlisted four major challenges of businesses in the foreseeable future.
He said firstly, the high rate of inflation will impact the cost of living, especially of basic necessities which actually has been felt by the people.
He said it will also increase the cost of production, affecting the competitiveness of businesses in export.
“Secondly, the weakening of the ringgit has increased the cost of imported goods which reduced the purchasing power of consumers, though it benefitted the export of goods but not for long as buyers demanded price reduction to share the margin,” he pointed out.
Yek said the third challenge is the war between Russia and Ukraine that has disrupted the global supply chains, causing commodities prices to soar and production inefficiency due to short supply.
Fourthly, he added, the higher US interest rate that induced financial and pricing volatility.
Yek, 62, said this to The Borneo Post when asked about the challenges for businesses in 2023 and his wish list for the National Budget 2023, set to be tabled in Parliament this Oct 7.
“My wish list is a business friendly regulatory framework especially regarding the approval for foreign workers.
“A sustainable subsidy strategy for making life better for the people and to counter any leakage and finally a bigger allocation to Sarawak as an equal partner and a significant contributor to the coffer of Malaysia,” said Yek.