Bank Negara Malaysia in its second quarter 2016 report announced that the global economy expanded at a more moderate pace, with uneven growth momentum across economies.  Global economic activity is expected to remain subdued and the pace of expansion in the advanced economies is expected to remain modest but with higher downside risks, resulting from concern on the US presidential elections, UK-Brexit, volatility in the global crude oil prices, amongst other factors.

The Malaysian economy expanded by 4.0% in the 2nd quarter of 2016 (1Q2016: 4.2%), driven mainly by expansion in domestic demand and private sector and activity.  GDP growth of the Malaysian economy for 2016  is  expected  to  be  4-4.5%  underpinned  by  continued  growth in  wages and employment and additional disposable income from Government measures.  Exports are expected to remain subdued due to the weak global demand.  Bank Negara Malaysia expects domestic conditions to remain resilient for 2016, however, uncertainties in the external environment may pose domestic risks to Malaysia’s growth prospects. 

Given the challenging headwinds and the subdued external environment, our business private sector must stay vigilant and focussed, improve our operational  efficiencies,  increase  productivity  and embrace  innovation  and IoT.  Collectively, this is much needed in order to move Malaysia’s growth strategy away from a resource driven one so that Malaysia can be lifted out of its middle-income trap.

MASSA is organising a visit to East Coast Economic Region (ECER) on 22 September 2016.  This visit is arranged, in collaboration with the Pahang State Government and our MASSA member, IJM Corporation Berhad, to enable our members and their associates to see for themselves the value proposition of setting-up your business in this region, which is strategically located to reach markets in China, East Asia and the Americas.
 
MASSA held its 25th Annual General Meeting on 21 June 2016.  There was no re-election of office bearers and committee members as their term of office will only expire at next year’s AGM.

I wish to place on record my appreciation to all my colleagues on the Executive Committee for their time and service to the Association.  I also wish to thank all MASSA members for their support and participation at our events.

Tan Sri Azman Hashim
President