KUALA LUMPUR, Oct 22 — The Federation of Malaysian Manufacturers (FMM) looks forward to closer and regular engagements with the government on relevant programmes and initiatives under the 11th Malaysia Plan’s (11MP) 19 priority areas and the six policy pillars’ 66 strategies.
FMM President Datuk Soh Thian Lai said the federation was optimistic that these economic targets and aspirations would be executed and achieved through close collaboration and consultation between the government and the business sector.
“In particular, this is for the manufacturing sector to receive better fitting policies in order to meet the challenging demands of competition and technological advancements,” he said in a statement today.
The FMM also applauded the government for tabling a comprehensive and pragmatic 11MP mid-term review plan to balance fiscal consolidation, while supporting inclusive growth by adjusting macro strategies and setting new priorities.
Soh said the federation strongly believed that the local manufacturing sector could contribute significantly towards helping achieve the macro strategies of productivity, investments, moving up the value-chain and strengthening exports.
He hoped that the proposals to increase government revenue as part of fiscal consolidation would not lead to additional and unnecessary regulatory burden to the manufacturing sector.
“The manufacturing sector has always been the main catalyst of growth with extensive upstream and downstream linkages throughout the value chain.
“The government should support the sector by ensuring a business-friendly operating and investment environment through the reduction of unnecessary regulatory burden and costs, and a more level playing field to facilitate fair and open competition and access to market opportunities,” Soh said.
He pointed out that the priority should be on supporting and promoting expansion of the economic pie to reap higher returns to enhance business sustainability, and more importantly, medium and long-term growth.
“Existing tax incentives such as reinvestment allowance, accelerated capital allowance, double deduction incentives for research and development, export growth should be enhanced to facilitate and spur the manufacturing sector to quickly undertake upgrading, expansion and diversification activities,” he added. — Bernama