KUALA LUMPUR: International trade chambers have requested the government to allow expatriates and their close family members to return to Malaysia under its short-term Economic Recovery Plan (ERP).
They said immigration was one of the main concerns among foreign businesses, besides human resources and cashflow.
European Union-Malaysia Chamber of Commerce and Industry (EUMCCI) chief executive officer Sven Schneider said in a recent meeting with the government, the chamber was informed that the situation was likely to improve based on a new process proposed by the Immigration Department.
He, however, said the proposal required the National Security Council's approval and that might limit the abilities of companies to bring employees with specific and needed skillsets back to Malaysia.
"The European business community in Malaysia and those stranded abroad are concerned about the limitations to re-enter Malaysia. Nearly all European chambers said investment projects were either put on hold or were being re-evaluated due to this uncertainty.
"While immigration matters could be resolved within the next two weeks, the chamber hopes for further action on taxation, labour law, licensing and public procurement," he told the New Straits Times.
Schneider said the chamber advocated for lower corporate and personal income taxes, which would enable people and organisations to maintain spending and support the economy.
It suggests the government consider the idea of a flat corporate tax rate at 17 per cent to compete with other global foreign direct investment (FDI) destinations.
"The main reason would be to respond to a likely fierce competition among global FDI destinations for a decreasing amount of FDI flows within this year and perhaps next year.
"In addition, a short-term zero-rating of the Sales and Service Tax could be an interesting measure to increase domestic consumptiond.
Echoing the statement, the American Malaysian Chamber of Commerce (AMCHAM) chief executive officer Siobhan Das Bachran said the chamber hoped that there would be measures under the ERP to boost investors' confidence in Malaysia as a key destination for high value-added FDIs.
"While Malaysia does not have the advantage of a large domestic market, we have strengths upon which we must build on fast so that we can capture (business) opportunities and counter the emergence of regional (FDI) locations like Vietnam and Indonesia and continue to challenge Singapore as well," she said.
Siobhan said the chamber's businesses were hopeful the government would cut the cost of doing business to increase competitiveness.
She said this could be done by simplifying and harmonising regulations, reducing the administrative costs of compliance by using technology to automate approvals and digital signatures.
The Malaysia Retail Chain Association (MRCA) urged the government to grant more loans at a special interest rate to help them to stay afloat during these challenging times.
MRCA president Datuk Seri Garry Chua said it was vital for the government to support SMEs to sustain their operations as it would help to safeguard jobs and the economy.
Chua said MRCA hoped that the government would provide a 50 per cent wage subsidy or more for workers of businesses that could not resume their operations immediately after the Movement Control Order was lifted, or those in hard-hit sectors.
He said MRCA expected a full exemption or reduction of the Employees Provident Fund contribution from April to December and a waiver of income tax for the year of assessment 2020 for corporate entities.
Sourced by New Straits Times
