KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) said the Budget 2018 is very broad-based, covering practically all economic sectors as well as all segments of the population.
It said items of interest and favourable to the manufacturing sector include the Budget initiatives to invigorate investment, trade and industry particularly for small and medium enterprises (SMEs) and trade promotion, which included topping up funds.
“The manufacturing sector in particular is pleased that a lot of emphasis has been given to industry, trade, Industry 4.0, the digital economy, education and training,” the association said.
Besides that, it said encouraging youths to emphasise education in Science, Technology, Engineering and Mathematics (STEM) is in line with the manufacturing sector’s call for more technically competent manpower.
“Requiring private companies which have secured Government contracts to allocate one per cent of their contract value to the Skim Latihan 1Malaysia (SL1M) would allow more graduates to receive industrial training and enhance their employability,” it said.
FMM said it fully supports the government’s programme to allocate RM4.9 billion to implement the TVET Malaysia Masterplan as well as the merger of all TVET institutions as TVET Malaysia.
The latter is also on FMM’s Budget wishlist to overcome fragmentation by placing TVET under a single champion agency.
“FMM hopes that all relevant stakeholders including the FMM are consulted on the Masterplan,” it said.
FMM said the matching grants and tax incentives for smart manufacturing, automation and digital technologies would help to reduce the cost of implementing Industry 4.0 technologies for manufacturers.
“FMM’s wishlist had also called for a RM1 billion transformation fund and the setting up of Industry 4.0 centres.
“The incentives for green technology financing as well as efforts to resolve the non-revenue losses were also on FMM’s Budget wishlist,” it said.
However, FMM said it had hoped that the Budget could have included some of the items in its wishlist.
These include the extension of the Reinvestment Allowance, which is expiring in 2019, reduction in corporate tax rates, and making good regulatory practices mandatory across-the-board as part of the thrust.
“GRP would further improve efficiency, leading to the lowering of costs of doing business,” it said.