Manufacturers rue ‘lack of support’ in budget

The Federation of Malaysian Manufacturing has expressed dissatisfaction with the 2027 budget, stating it lacks support for the manufacturing sector. FMM president Jacob Lee lamented that the proposed RM1.5 billion support package was not included in the federal budget, leaving a gap in dedicated grant support for manufacturers. Lee emphasized that the industry is grappling with rising operating costs and hurdles to technology adoption, innovation, and green investments.

He called on the finance ministry to engage with the industry regarding the proposed RM2,500 monthly minimum wage for semi-skilled workers and graduates, arguing that the wage should be market-driven rather than government-set. Lee also stressed the importance of industry consultation on the proposed framework due to existing skills mismatches, which could lead to higher wage obligations and added training expenses for employers.

The FMM welcomed the review of the reinvestment allowance but urged for clearer eligibility criteria and enhanced accessibility to encourage manufacturers to invest in automation and technology, vital for competitiveness and higher-value job creation. Additionally, Lee supported the planned regulation of e-commerce platforms, particularly in light of foreign firms entering the market with minimal oversight.

He recommended a thorough review of the existing trade and regulatory measures, including safeguards against unfair trade practices, underpriced imports, and non-compliant products, with the aim of ensuring a level playing field for Malaysian manufacturers and SMEs without impeding legitimate trade or consumer options.