Latest news with #Acccim
New Straits Times
31-07-2025
- Business
- New Straits Times
13MP key step towards becoming high-income nation: Acccim
KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) says the 13th Malaysia Plan (13MP) is a key step towards the country's goal of becoming a high-income nation by 2030. Acccim president Datuk Ng Yih Pyng said the complexity of global economic landscape requires the government to implement policies that are well-considered, and adaptable to shocks and disruptions, as well as having the ability to anticipate potential consequences of policies. "These include diversifying and deepening economic structure, products and markets, securing quality investment in high growth high value sectors, investing in education and human capital, fostering greater technology and artificial intelligence (AI) adoption and spurring innovation," he said in a statement today. Ng emphasised the need for strong coordination among various ministries and agencies in implementing the plan, as poor coordination has often been cited as a major stumbling block for businesses, especially MSMEs to move forward. He said the proposed improvement to the research, development, commercialisation and innovation (R&D&C&I) investment model to increase high-value research and development as well as the creation and commercialisation of intellectual property (IP) through the provision of research facilities and targeted incentives are a step in the right direction. Ng proposed a review and expand the scope of R&D incentives to allow more companies engaged in R&D and innovation activities. This is by offering more attractive R&D credits could entice investors to establish their R&D hubs in Malaysia, and prioritising collaborations between private sector, academia and government. He called for higher R&D expenditure to boost Malaysia's R&D intensity, aligning with global standards while actively seeking private sector partnerships to increase business participation. He also highlighted the need to simplify the nation's R&D tax incentive scheme and overhaul the grant system. This includes streamlining processes, simplifying applications, and removing bureaucratic hurdles that have discouraged businesses from pursuing innovation. Ng stressed that accelerating public service reform agenda is crucial for enhancing efficiency and effectiveness of service delivery to the people and businesses, rebuilding the trust in government through reforms concentrating on working in a more open, transparent way. He said utilising innovative technologies to heighten customer service experience, improve information sharing and lessen costs, and radically reduce costs to drive better value for money. "Towards this end, Acccim looks forward to the implementation of various initiatives to facilitate businesses and not to frustrate them, including the ILTIZAM Act, the establishment of Special Task Forces such as STAR, and review and amend outdated laws and regulations to reflect current needs. To turn the 13MP into timely, effective and impactful outcomes, he said effective implementation is crucial, drawing on extensive engagement across the public and private sectors. Ng also said good governance and accountability are another important factor in the implementation of the 13MP. This includes optimising limited resources and carefully prioritising the sequence of initiatives to ensure the desired outcomes are achieved.
New Straits Times
09-07-2025
- Business
- New Straits Times
Ministry's US engagement vital to securing equitable trade for Malaysia: Acccim
KUALA LUMPUR: Investment, Trade and Industry Ministry's continued engagement with the US is crucial for a balanced and fair trade deal for Malaysian industries, a trade body said. The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) said this is given the strong bilateral trade relations between the countries. The US is Malaysia's second largest trading partner and largest export destination, with total trade in 2024 rising nearly 30 per cent to RM324.9 billion (US$71.4 billion). The chamber believes that the government will make its best effort to negotiate for a lower tariff before the revised 25 per cent tariff coming into effect on Aug 1. Acccim said it stands firmly behind the government's principle of having an open discussion with the US in developing a well-considered and comprehensive as well as mutual benefits trade framework for both countries. It also supports the government's position that any negotiations must prioritise the national interest. This is particularly to safeguard the interests of small and medium enterprises (SMEs) and mitigate potential adverse effects on domestic industries and employment. Acccim president Datuk Ng Yih Pyng, however, expressed concerns about the cumulative impact of multiple cost increases on businesses, especially amid a challenging global and domestic economic environment as well as tariffs policy uncertainty. He said the potential impact of tariffs not only would dampen exports but also have negative spillover effects on domestic sectors. "These tariffs headwind and global external uncertainties come at a time when companies are already facing higher operating costs due to the implementation of multiple cost measures. "This adds to the financial strain on businesses, potentially impacting the ability to invest," he added. Hence, the chamber urged the government to reconsider a reduction in the expanded sales and service tax rate to four per cent for the first two years of implementation, down from 6.0-8.0 per cent now.
New Straits Times
12-06-2025
- Business
- New Straits Times
ACCCIM: Consider timing of expanded SST
KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) says it supports the expanded Sales and Services Tax (SST) to strengthen the country's fiscal's position. But there must be careful consideration of the timing and sequencing of measures to ensure they do not unduly burden businesses, especially the micro, small and medium enterprises (MSMEs), it added. Ultimately, increased business costs can lead to higher consumer inflation, according to Acccim president Datuk Ng Yih Pyng. Ng said the expansion of the SST at a time of the evolving US tariff policy uncertainty and potential global economic slowdown would contribute to domestic economic and business conditions uncertainty. "With businesses already facing rising operating costs, implementing expanded SST could further burden businesses with increased costs. "Ultimately, increased business costs, if not absorbed, would be passed onto consumers, potentially dampen discretionary consumer spending due to higher prices of non-essential goods and a wider range of taxed services." Ng added that the service tax on rental and leasing in particular would result in higher operating cost for many businesses given a low threshold of exemption from paying service tax for MSMEs with annual sales below RM500,000. "In this regard, we appeal to the government to consider deferring the implementation of the expanded SST to a later date, when macroeconomic conditions are more certain. "It must be noted that the deferment of e-invoicing implementation for businesses with annual income or sales between RM1 million and RM5 million (Phase IV) from July 1, 2025 to Jan 1, 2026 reflects the government's acknowledgment and consideration of businesses' concerns regarding its impact on operating costs," he said. Acccim also called for a review of the threshold exemption from the SST expansion, to be raised higher to RM2 million annual sales, to relieve the burden on more micro and small businesses.
