THE Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) expects the nation’s economy to slow down in the second half this year, following the hike in oil prices.
Its economic research committee deputy chairman Peck Boon Soon said Hurricane Katrina, which hit the main US oil production and refinery centre, also contributed to the escalating oil prices.
He said that under the circumstances, investors were likely to be more cautious in the second half.
“We have seen some indicators, such as the global manufacturing sector turning weaker in August, and I suspect that it could actually come down further in September due to the surge in oil prices,” he said at a briefing on ACCCIM’s Survey Report on Economic Situation of Malaysia for the First Half of 2005.
The survey noted that the Chinese business community was cautiously optimistic about the country’s economic outlook for the second half.
In the survey, about 17% of the respondents indicated that their local sales were likely to increase in the second half while 23% said they would be reduced.
About 32%, or one-third of the respondents, hoped to maintain their current level of sales.
Similarly, 25% of the respondents anticipated that their export sales would increase while 17% said they would be reduced.
About 33% expect their export sales to remain unchanged.
Overall, the businessmen are cautious about the domestic and export sales performance in the months ahead.
Deputy chairman of ACCCIM commerce committee-cum-head of economic survey unit, Chua Tia Guan, said Malaysia’s lower export data in July and the 4.1% economic growth in the second quarter were signs pointing to an economic downtrend in the second half of 2005.
In the first quarter, the country’s economic growth was 5.8%, which went down to 4.1% in the second quarter, he said. – Bernama
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