Cost of living, cost of doing business 'top issues': survey
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Small and Medium enterprises (SMEs) rate the government's economic management slightly above the pass mark, while the cost of living and the cost of doing business are seen as the most pressing issues it must solve, according to a recent survey by the Dhu
Survey respondents, meanwhile, forecast on average that gross domestic product in the second half of this year would expand by around 6.2 per cent.
The centre conducted a survey between May 5 and May 22 of 504 small and medium-sized enterprises, seeking their views on the economic outlook in the second half of 2013, as well as on the government’s economic management.
On their expectations about the overall economic outlook of the second half compared to the first six months, 12.8 per cent of the SMEs said the economy would improve; 45.6 per cent felt it would be about the same; 36.3 per cent forecast it would be worse than in the first half; and 5.3 per cent were unsure.
The respondents were asked to rate, on a scale of one to 10, the government’s performance on managing the economy. The average rating was 5.1 points, slightly above the pass mark of 5.
Promotion of short-term growth received the highest rating, at 6.8 points.
Improving the confidence of international investors was rated at 6.4 points; improving the confidence of domestic investors at 5.9; promotion of economic stability at 5.1; promotion of long-term growth at 4.8; cost of production/doing business at 4.5; efficiency in using public funds at 4.3; and transparency in using public funds and the cost of living were both rated at 4.1.
When asked about the most pressing issue they would like the government to tackle, 35.1 per cent of SMEs said the cost of living; 30.8 per cent cited the cost of production/doing business; and 17.6 per cent ticked the box for assistance in finding new markets for offsetting the effects of currency appreciation.
Corruption was cited as the most pressing issue by 9.7 per cent of respondents; comprehensive economic policy by 5.6 per cent; and 1.2 per cent mentioned other issues, such as access to government-guaranteed loans, and staff training.
Kiatanantha Lounkaew, the centre’s director, said poor ratings in certain categories should be viewed as a warning to the government to prioritise the tasks. The concerns expressed about the rising cost of living as well as the cost of doing business were both politically unhealthy, he suggested.
