Up to 34.2% of the respondents of a recent survey conducted by the Federation of Malaysian Manufacturers and Malaysian Institute of Economic Research believed that their business could sustain for more than 12 months, thanks to the initiatives introduced under the Economic Recovery Plan .
“The others are wage subsidy until September 2020 and reduction in work week, as well as extension of accelerated capital allowance on eligible capital expense, including information and communications technologies equipment until Dec 31, 2021,” he told press conference after chairing the FMM-MIER Business Conditions Survey for the first half of 2020 briefing here, today.
On outlook for 2H 2020, the survey, however, showed that manufacturers were taking a pessimistic stance on their businesses prospects, with all forward-looking indicators falling to the lowest level since the commencement of the survey in 2012. “Production volume index fell to 78 for 2H 2020 from 105 in 2H 2019, while capital investment index also dipped to 83 from 108 in the same period last year, with 36% contemplating lowering their capital expenditure for 2H 2020,” it said.
He believed banks have sufficient liquidity to reintroduce the blanket moratorium until year-end, so that businesses have enough cash flow to avoid retrenchment. To increase the productivity in the next six months, 61% of the respondents said they would implement lean management system, while 49% said they would conduct training and upskilling classes.