Shaun Cheah, executive director of the Malaysian International Chamber of Commerce and Industry said while a rate cut in Bank Negara’s overnight policy rate would have made business loans cheaper, this was not what most companies and foreign investors need at the moment.
Bank Negara recently maintained the OPR rate despite expectations of a cut by another 25 basis points.
Cheah said what businesses and investors need now is confidence and this comes from the government sending a clear message that it has plans to ensure a robust rebound once the MCO is lifted.
This includes opening up the economy, tax incentives and measures tailored for businesses and foreign investors among others.
He said while the government has rolled out some measures these were not always effective, citing the example of the MyFutureJobs programme in relation to the manufacturing sector. He said many locals do not want to work in the sector because of the stigma attached to the industry.
“At the same time, many Malaysian businesses have a lot of orders in their backlog but lack the workers to operate at full capacity,” he said.
On the issue of labour, Cheah said the government could help businesses by fast tracking the rehiring of foreign workers that are already in the country to quickly fill vacancies for jobs that Malaysians do not want, such as those in the dangerous, difficult and dirty (3D) sectors.
“At the moment there are more sticks than carrots. We need incentives for a rebound once the MCO ends.”
He also said the government should consult stakeholders before deciding on rules which affect business, as some Covid-19 prevention rules were not well thought out, and later had to be reversed.
He cited the example of the extension of restaurant operating hours from 8am to 10pm following complaints from the public, businesses, and political parties.
A senior fellow of the Malay Economic Action Council, Ahmad Yazid Othman, said what the country needed now was less politicking.
He said businesses operate well under a politically stable environment with consistency in policies and rules.
“What we need now is less bickering and more action. We need an effective executive to pursue a long-term agenda which benefits the rakyat.”
On what the government can do, Yazid said it should be more generous and creative in raising funds to support people and businesses. “Do not allow lives and livelihoods to be destroyed by fears of being downgraded by ratings agencies,” he said.