PETALING JAYA – The Malaysian Employers Federation (MEF) hopes Budget 2024 will address issues on long term sustainability of businesses, especially micro, small and medium enterprises (MSMEs).
Its president Datuk Dr Syed Hussain Syed Husman said Malaysia’s business environment must be transformed to make it more attractive to retain and attract high quality investment.
He said more allocation is needed to revamp technical and vocational education and training (TVET).
He pointed out that 2023/2024 will be challenging for Malaysia as the export sector grapples with sluggish growth mainly due to changing consumer behaviours, global downturn in the semiconductor industry, geopolitical uncertainties and weak growth in key importing countries.
"The shift in consumer preferences from goods to services globally, coupled with the downturn in the semiconductor industry, has significantly impacted export growth in Malaysia.
"Geopolitical uncertainties and the escalating tensions between the US and China further complicate Malaysia’s export landscape," he said.
He said trade tensions and restrictions imposed by the US on China have also disrupted the flow of IT products between US and China .
Syed Hussain said Malaysian exporters are adjusting their strategies in response to these trade tensions and the shifting priorities of the Chinese authorities.
He said these developments dampened export growth prospects for Malaysia for the remaining part of 2023 and 2024.
"Challenges faced by the financial sector and tighter lending standards posed further challenges. The increase in interest rates, and impacts on global growth, put more pressures on export of goods .
"Faced with the above challenges it is important to put in place strategic planning and risk mitigation for Malaysia’s economy.
"Diversifying its economy, reducing reliance on exports and promoting domestic consumption are key strategies to be put in place in Budget 2024 to make Malaysian businesses more sustainable," he said.
Syed Hussain said Malaysia is currently experiencing a slowdown in its export whilst supporting the growth of the services sector, fostering innovation and embracing technological advancements will be able to mitigate the impact of the export slowdown.
He said Budget 2024 should introduce measures that will transform Malaysia to be a more business friendly environment to attract high quality investment.
He added that high quality investment will in turn create high quality jobs for the rakyat especially the youths.
Enhancing focus on TVET
Technical and Vocational Education and Training (TVET) is very important to produce highly skilled workers in line with IR 4.0, he stressed. Malaysia needs to quickly increase the percentage of high skilled employees to 35% by 2025.
He said the equipment in public TVET institutions should be upgraded so that students will be able to feel and experience the latest equipment and machines in TVET institutions.
"The government has embarked on the policy of industry-led TVET to ensure that the graduates from TVET institutions meet the skills requirements of the private sector employers .
"This effort is beginning to show results as the private sector plays a bigger role in providing workplace real work training especially under the NDTS where 70 to 80% of the training is done at the workplace and 20 to 30% in TVET institutions.
"The government needs to work closely with industry stakeholders to ensure that TVET prepares the students to meet industry skill requirements."
Syed Hussain also said Budget 2024 needs to introduce measures to control the spiralling cost of living that affected both rakyat and businesses.
He said controlling and reducing cost of living will enhance the purchasing power and this will eventually make the local economy more vibrant.
Syed Hussain added that to retain and enhance female labour force, issues related to child care and day care for aged parents need to be addressed. – The Vibes, October 13, 2023
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