ACCCIS survey shows that businesses experienced poor cash flow

KUCHING: The Associated Chinese Chambers of Commerce and Industry Sarawak’s (ACCCIS) Sarawak Economic Situation Survey Report shows that 36.4 per cent of businesses experienced poor cash flow for three months due to the pandemic.

This had prevented businesses from covering operating costs, purchasing raw materials as well as hiring manpower.

“While businesses are looking forward to a smooth transition towards a safe reopening of the economy under the National Recovery Plan), backed by the acceleration of the National Covid-19 Vaccination Programme, most businesses expect our economy to get worse in the second half of the year.

“Production and operation activities have been limited, there’s decline in demand, and they are anxious about the poor cash flow, credit and debtors’ conditions.

“Revenues were badly hit with 80.5 per cent of the survey respondents’ business revenues markedly below pre-pandemic level,” said ACCCIS president Datuk Tan Jit Kee.

He said this during a Zoom briefing on the report on Friday (Sept 24).

“Overall, 85.8 per cent of the respondents took a very cautious view and had no confidence that the economy would recover in 2022.”

Meanwhile, Tan stated that the survey was an important source of information that gave an insight into current and future economic conditions from the perspective of the business community.

At the same time, he added, it provided input for ACCCIS to engage and consult with the government and relevant agencies on issues and problems faced by the business community.

“We have submitted a number of proposals to various ministries on numerous occasions.

“As our members have made significant contributions to the economic development in Sarawak, a closer look and analysis of their assessments and expectations on the current development as well as future outlook of the economy and business would enable the government, research institutions, and researchers to better assess Sarawak’s economic and business environment, supplemented by the official statistics and other private surveys.”

ACCCIS hoped that the government, relevant ministries and agencies would come up with effective policies and work closely with the business chambers and other stakeholders to provide a more conducive environment for businesses post Covid-19.