Speaking to reporters after a meeting with the Council of Eminent Persons, MCCC president Tan Yew Sing said the chamber would prepare a report for the council on the views of grassroots businessmen on Chinese investments.

Tan added that when it came to investments, it was important that the interests of Malaysians be protected in terms of labour, technology transfer and the environment.

He also spoke on the government’s plans to reintroduce the sales and services tax (SST) to replace the goods and services tax (GST)

“The implementation of the GST was rushed and not systematic enough,” he said of the 6% GST which came into effect in April 2015.

He said for businessmen like him and the man on the street, the SST was better as the GST had an inflationary effect and led to higher prices.

On whether the implementation of the SST would lead to prices dropping, Tan said he believed this would be the case.

“The implementation will take some time. I will be surprised if prices of some goods don’t come down. If prices don’t come down then maybe something is wrong in between, maybe some businessmen are not responding.

“There is no reason why prices shouldn’t come down.”

He voiced confidence that the government would be able to find ways to make up for the shortfall in revenue from the zero-rating of the GST.

Tan also voiced optimism for the future saying Malaysia would be more competitive and attractive to investors if corruption was minimised and the judiciary strengthened.

He also said he believed the flight of foreign investment was only temporary.

“I believe the confidence of investors will return once they see that the new government is more efficient, transparent in doing business and has no tolerance for corruption.”

He added that multicultural Malaysia – with its three main races comprising Malays, Chinese and Indians – had an advantage in three big markets, namely the Muslim market, China and India.

So, he said, Malaysia “cannot fail” and just needed an efficient government and strong judiciary.