BM policy may affect ease of doing business, says trade group

 

Prime Minister Anwar Ibrahim wants all companies and universities to correspond with government agencies in the national language.

PETALING JAYA: While instructing companies to correspond with government agencies in the Malay language may not deter businesses, a business group says the policy could affect the country’s ranking on the ease of doing business index.

Small and Medium Enterprises Association (Samenta) president William Ng said encouraging local businesses to correspond with Putrajaya in Malay was a positive step, but should not be made compulsory.

“Businesses will continue to operate as usual, primarily using English, but the requirement to communicate solely in Malay when corresponding with the government may affect our ranking on the ease of doing business index since it is primarily a perception index,” Ng told FMT.

The index, published by the World Bank annually, ranks countries according to how conducive their regulatory environment is to the operation of business.

Ng said enforcing the policy may affect local companies whose CEOs are foreigners and those with foreign investors.

“Some subject matters may be better expressed in English, making it impractical to translate unless the companies involved have professional translators or employees proficient in both languages,” he added.

Last week, Prime Minister Anwar Ibrahim reminded all companies and universities to correspond with government agencies in the national language, adding that letters written in any other language would be returned to the sender.

Anwar said local entities should uphold Malay as the national language as stipulated in Article 152 of the Federal Constitution.

Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal commended the prime minister for encouraging the use of Bahasa Malaysia, but said it should not be made compulsory.

“I think it shouldn’t be mandatory for businesses as they should be granted some leeway to ease operations, especially as we are in the process of economic recovery,” Wan Fayhsal told FMT, adding that a high ranking on the ease of doing business index is key to attracting foreign investors.

Meanwhile, international business consultant Azran Deraman believes the policy only affects local companies and universities, and is unlikely to deter foreign investors.

Azran, a former eastern region director for the international trade and industry ministry, said the implementation of such a policy was long overdue as it would encourage proficiency in the national language.

“The main factors that drive foreign investment into the country are its tax policies, workforce availability, governmental support, and the country’s infrastructure including utilities and connectivity,” Azran told FMT.

He said the practice of corresponding in the local language is common in many developed nations, including Japan, whose economies continue to thrive.

“Therefore, suggesting that the policy would send a negative signal and deter foreign investors would be imprecise,” Azran added. - FMT