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Miti mulls incentives for manufacturers
KUALA LUMPUR: The International Trade and Industry Ministry (Miti) has proposed that manufacturers be provided with more attractive incentives in the form of import duty exemption, rebates and tax incentives for energy-saving projects and equipment.
“Miti is now working closely with the Finance and Energy, Water and Communications ministries on the details of the incentives,” said Minister Tan Sri Muhyiddin Mohd Yassin.
Speaking at the launch of the 40th anniversary celebrations of the Federation of Malaysian Manufacturers (FMM), Muhyiddin said the country continued to attract a significant level of investments in the manufacturing sector.
“Investment in the manufacturing sector with approved projects totalled RM26.2bil between January and May this year,” he said, adding that foreign investments accounted for RM17.7bil of the amount.
Muhyiddin said the investment trend was towards capital intensive, high value-added and high technology projects as reflected in the capital investment per employee ratio, which showed an increasing trend.
He said despite the increasing competitive business environment, the sector recorded a 1.3% growth in overall productivity for the first quarter of this year.
For the first five months of this year, RM188bil worth of manufactured products were exported, he said.
The manufacturing sector employs 18.7% of the nation's total workforce.
FMM president Tan Sri Yong Poh Kon said the manufacturing industry was currently facing one of the most challenging phases.
“It is further complicated by a high cost environment, led by demand for a scarce pool of technically competent middle management to drive and sustain innovation as well as to adopt and adapt technology,” he added.
He said competition for investments and markets had intensified and the only solution to remaining competitive was to keep moving ahead.
“We need to compete on a level playing field. We must be more aggressive. We cannot be complacent,” he said.
He added that manufacturers, especially FMM members, must change, transform and grow in leading manufacturing excellence.- The Star
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