ACCCIS: More targeted measures needed to help businesses operate amidst global uncertainties

BINTULU (April 8): There should be more targeted measures to help businesses address the pressures brought about by the current economic environment.

In making this call to the government, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) president Kong Chiong Ung said today’s global landscape is marked by a high degree of uncertainty.

“In particular, geopolitical conflicts and wars have triggered inflationary pressures that are impacting both the public and businesses, directly and indirectly.

“While the government has implemented several measures to support businesses such as offering low-interest loans to the MSMEs (micro, small, and medium enterprises), of which the business community is grateful, amidst persistently high operating costs, businesses are still hoping for further adjustments in tax policies to help reduce their financial burden,” he said in a statement.

In this regard, Kong said ACCCIS had proposed a number of measures aimed at supporting businesses, particularly the SMEs, amid ongoing economic challenges.

“Among the key recommendations are allowing SMEs the option to defer bank loan repayments via moratorium, as well as introducing targeted repayment assistance programmes for the MSMEs.

“We also propose a temporary exemption of the six to eight per cent service tax for a period of three months, subject to periodic review, to help reduce operational costs.

“To support contractors, we suggest the provision of financial buffers for those undertaking government projects, while optimising project management mechanisms.

“In addition, we call for the temporary deferment of LAD (liquidated ascertained damages) and related penalties on developers unable to complete projects on time.”

Kong further recommended offering low-interest loans or dedicated financing schemes to encourage businesses to invest in energy-efficient machinery and equipment, which could help lower long-term operating costs.

“To ease short-term financial strain, we propose reducing the required advance tax payment from 85 per cent of the previous year’s estimate, to 50 per cent.

“ACCCIS also calls upon the government to temporarily waive or reduce port, transportation, and freight-related charges to mitigate the ripple effects of rising logistics costs.

“Also, more targeted fuel subsidies and assistance measures for heavily-affected sectors such as agriculture, plantations, and tourism, as well as the introduction of targeted wage subsidy programmes focusing on the most impacted industries and workforce groups.”

At state level, Kong called upon the Sarawak government to consider offering subsidies or discounts on electricity supply and assessment taxes to further support businesses.

“At a time when the global economy is facing multiple challenges, the timeliness and precision of policy measures are crucial.

“Only through close collaboration between the government and the business community can economic fundamentals be stabilised, employment safeguarded, and sustained momentum injected into the economy,” he stressed.