KUALA LUMPUR (Mar 30): The Malaysian Chinese business community is generally more pessimistic about the local economic outlook for 2015–2016, but are looking towards an improvement in 2017, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) survey found.

According to the ACCCIM survey report on economic situation of Malaysia for the second half of 2014, the factors that resulted in this finding includes the increase of cost, where 70% of respondents complained that they had experienced significant increase in cost.

Moreover, respondents are also wary that the ongoing low commodities prices are affecting the nation's export earnings.

The commerce association's deputy chairman of socio-economic research committee cum RHB Research economist Peck Boon Soon conceded that the current economic circumstances is not favourable to Malaysia.

"Nevertheless, these headwinds, such as the low oil prices, GST (Goods and Services Tax), and lacklustre property market, are temporary," he said.

Peck is of the view that after the market digested these new economic conditions, it will eventually normalise.

"I believe that is also the reason respondents felt that there would be an improvement in 2017, but probably by 2016 we will be able to see some normalisation already," he added.  

Peck also opined that GST is the main reason for the business community to worry.

"Definitely, there will be some additional cost added to them, despite the government expecting an inflation rate of 2% to 3% for 2015, we are expecting 3.3%–3.5%," he commented.