KUALA LUMPUR, Feb 1 — The majority of Chinese Malaysian business owners are cautious about the prospects of growth in the first half of this year as concerns about a weak ringgit and higher input cost lingers amid expectations of a global economic slowdown.
According to the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), over half of respondents in its biannual survey said the ringgit’s fluctuation tops the list of factors that have adversely impacted their business performance in the second half of 2023, followed by increase in prices of raw materials at 45 per cent.
A weaker currency has zapped consumer spending power and curb demand, ACCCIM said, which is first of top three business concerns.
Up to 91 per cent of total respondents said reduced purchasing power is their number one concern, followed by persistent cost pressures (90.6 per cent) and a weakening ringgit (90.3 per cent).
Slightly half of the respondents said they countered the ringgit’s depreciation either through absorbing increased costs or adjusting higher selling prices, ACCCIM found. “Businesses have a neutral view (leaning towards unfavourable) about the economy and cautious stance about business conditions in 2023,” the association said in a statement accompanying its survey results released today.
Higher percentage of respondents expect better economic and business prospects in 2H 2024 compared to 1H 2024.
Most respondents said they want the government to prioritise stabilising the ringgit (58 per cent), ease the cost of doing business (52 per cent), and provide clarity and consistency in business-friendly policies (41.1 per cent).
