KUALA LUMPUR: While remaining positive about Malaysia’s investment prospects, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) foresees challenges in 2025, highlighting a sense of cautious optimism for this year’s economic outlook and business conditions.
ACCCIM president Datuk Ng Yih Pyng said high operating costs, cash flow problems and increases in raw materials prices are the key factors affecting business performance in Malaysia.
He said preliminary findings of an ACCCIM survey show that more than 30% of respondents anticipate better economic and business prospects for 2025, compared to below 20% for 2024.
“Increasing business cost pressures are due mainly to government policy reforms and regulatory requirements changes. “Domestic businesses, manufacturers and exporters have to brace for disruptive trade and economic policy in the external business environment.
“The business community hopes the government will adopt pragmatic policies to support businesses, especially micro, small, and medium enterprises in navigating through the challenges. These include providing some forms of export credit scheme to domestic SMEs, reducing import duties on raw materials, assisting in exploring new export markets, and diversifying supply chains,“ Ng said at the 2025 ACCCIM Chinese New Year Reception today.
Prime Minister Datuk Seri Anwar Ibrahim was the guest of honour at the event. Other key government ministers, distinguished dignitaries and ambassadors representing foreign missions also attended the gathering.
Ng said the economic and subsidy reforms must be implemented gradually to prevent market disruptions and safeguard businesses.
“Of particular concern is that Tenaga Nasional Bhd base electricity tariff hike for Peninsular Malaysia will be 14.2% between 2025 and 2027 under Regulatory Period 4 and is proposed to be implemented starting July 1, 2025. The rise in electricity costs will have domino effects on the whole supply chain, potentially passing through to consumer inflation.
“Given the bunching of additional operating costs, we sincerely urge the government to maintain electricity tariffs at current levels throughout 2025-2026 to ease the financial burden on businesses and mitigate inflationary pressures from increased operating costs,“ Ng said, in expressing concern over the tariff hike that will potentially impact domestic industries.
In response, Anwar said the rise of electricity tariffs is to improve the country’s education system and support the poor.
He gave the assurance that the tariff increase would be manageable and necessary, as prices must adjust over time.
“How do I improve education? How do I assist the poor? How do I upgrade the roads? How do I enhance medical facilities? It is through a small tax increase. A slight increase is acceptable,“ he added.
Anwar said the development of digital transformation is crucial, requiring substantial funding for new faculties and specialised training.
He said countries such as the United States, China and those in Europe have prioritised centres of excellence in this field, relying on government support and significant private sector investment.
Moving on, Ng said ACCCIM remains positive about Malaysia’s investment prospects and will play a key role in fostering economic cooperation, promoting business collaboration and networking between Malaysians and foreign businesses.
He said the memorandum of understanding signed between ACCCIM, the Singapore Chinese Chamber of Commerce and Industry and UOB Bank on Jan 16 was designed to bolster cross-border business collaboration and investment opportunities, particularly in the Johor-Singapore Special Economic Zone (JS-SEZ) and Southeast Asia.
“The JS-SEZ exemplifies Malaysia’s commitment to regional integration. As the Asean chair in 2025, robust support from the private sector, including industry and chambers is crucial to deepen strategic economic collaborations and forge business partnerships within the Asean framework,” Ng said.
