KUALA LUMPUR: Malaysia should remain vigilant as new trade policies from major global economies could impact the nation, says Datuk Ng Yih Pyng.
On behalf of the business community, the president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) expressed hope that the government will adopt pragmatic policies to support businesses, especially micro, small and medium enterprises, in navigating these challenges.
"Such measures include providing some form of export credit schemes for domestic SMEs, reducing import duties on raw materials, assisting in exploring new export markets, and diversifying supply chains," he said in his speech at the ACCCIM Chinese New Year Reception 2025 here Monday (Feb 3).
On the sentiments of the business community, he noted there is cautious optimism about this year’s economic outlook.
Preliminary findings from the ACCCIM Survey indicate that over 30% of respondents anticipate improved economic and business prospects for 2025, a significant increase from below 20% in 2024.
"This optimism is a beacon of hope," he said, highlighting concerns such as high operating costs, cash flow issues, and rising raw material prices.
Ng mentioned that increasing business costs are primarily driven by changes in government policy and regulatory requirements, prompting domestic businesses, manufacturers and exporters to brace for potentially disruptive trade and economic policies.
He stated that Malaysia’s recent signing of a Comprehensive Economic Partnership Agreement with the United Arab Emirates could pave the way for more trade in the Middle East. Along this line, the resumption of negotiations for the Malaysia-European Union Free Trade Agreement is expected to strengthen economic ties with the European Union.
"These agreements are stepping stones to broader economic alliances," Ng said.
He also stressed that economic and subsidy reforms must be gradual to avoid market disruptions and voiced concern over Tenaga Nasional Bhd’s announcement of a 14.2% increase in the base electricity tariff for Peninsular Malaysia starting July 1.
On this, ACCCIM urged the government to maintain current electricity tariffs for 2025-2026 to alleviate financial pressures on businesses.
Taking on a broader perspective, ACCCIM remains optimistic about Malaysia’s investment prospects.
On Jan 16, ACCCIM, the Singapore Chinese Chamber of Commerce and Industry, and UOB signed a landmark memorandum of understanding.
"This partnership aims to enhance cross-border collaboration, particularly in the Johor-Singapore Special Economic Zone and South-East Asia," Ng said in reaffirming the importance of the private sector in fostering strategic economic collaborations as Malaysia chairs Asean this year.
Ng also reaffirmed ACCCIM’s commitment to bridging the gap between the business community and the government while prioritising the needs and interests of local businesses.
Malaysia is considering hosting the inaugural joint summit between China, the Gulf Cooperation Council (GCC), and Asean, with the matter discussed during a meeting between Prime Minister Datuk Seri Anwar Ibrahim and Gen Liu Zhenli, chief of staff of the Joint Staff Department at China's Central Military Commission, last month.
GCC represents major Gulf countries, including Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Oman and Qatar.
On this proposal, Ng said the Asean-China-Gulf Cooperation Council Summit will be a gateway to multilateral cooperation.
