News & Articles Businesses, consumers need confidence booster
Businesses, consumers need confidence booster
25 Aug 2015
KUALA LUMPUR: The government may have to take drastic measures to restore business and consumer confidence in the economy, which has been affected by the weak ringgit.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) secretary-general Datuk Low Kian Chuan said the uncertainty in the movement of the ringgit has caused fear among businesses and consumers.
“The government needs to do something drastic. Firstly, they may have to stop any unnecessary importation and buy local. All government procurement overseas has to stop and be replaced with local. If not, don’t buy now,” he told reporters after a briefing on ACCCIM’s Goods and Services Tax (GST) survey yesterday.
“You have to restore the confidence of consumers. Firstly, there is already cautious spending because of the GST. Secondly, as a business, at what price are you going to sell? If you raise prices you may not get the business but cost is increasing due to a weaker ringgit,” he said.
Low added that exporters also face problems as the currency has been fluctuating a lot.
He said the central bank will not be able to interfere in the currency market as international reserves have fallen below US$100 billion (RM426 billion), and so it should be left to market forces.
Malaysia’s international reserves fell to US$94.5 billion on Aug 14 from US$96.7 billion on July 31. The ringgit fell to a new low yesterday at 4.2630 to the dollar.
ACCCIM president Datuk Ter Leong Yap said the chambers will be drafting a proposal on what actions can be taken to improve the economy, which includes ideas on how to boost tourism. It will also include areas where the government and businesses can work together.
Ter said the proposal will be submitted to the government and ACCCIM will be making a courtesy call on International Trade and Industry Minister Datuk Seri Mustapa Mohamed this Thursday."
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) secretary-general Datuk Low Kian Chuan said the uncertainty in the movement of the ringgit has caused fear among businesses and consumers.
“The government needs to do something drastic. Firstly, they may have to stop any unnecessary importation and buy local. All government procurement overseas has to stop and be replaced with local. If not, don’t buy now,” he told reporters after a briefing on ACCCIM’s Goods and Services Tax (GST) survey yesterday.
“You have to restore the confidence of consumers. Firstly, there is already cautious spending because of the GST. Secondly, as a business, at what price are you going to sell? If you raise prices you may not get the business but cost is increasing due to a weaker ringgit,” he said.
Low added that exporters also face problems as the currency has been fluctuating a lot.
He said the central bank will not be able to interfere in the currency market as international reserves have fallen below US$100 billion (RM426 billion), and so it should be left to market forces.
Malaysia’s international reserves fell to US$94.5 billion on Aug 14 from US$96.7 billion on July 31. The ringgit fell to a new low yesterday at 4.2630 to the dollar.
ACCCIM president Datuk Ter Leong Yap said the chambers will be drafting a proposal on what actions can be taken to improve the economy, which includes ideas on how to boost tourism. It will also include areas where the government and businesses can work together.
Ter said the proposal will be submitted to the government and ACCCIM will be making a courtesy call on International Trade and Industry Minister Datuk Seri Mustapa Mohamed this Thursday."
Source: The Sun Daily