FMM: Budget 2020 addresses market challenges

11 Oct 2019 / 21:41 H.

PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) hailed Budget 2020 for addressing the problems and challenges that cut across all sectors of society.

It said in a statement that despite the current economic constraints, the budget has focused on expanding the economy, attracting more investments, growing foreign markets and focusing on driving the economy into the digital era.

“Sufficient initiatives and incentives have been provided towards the development of human capital, SMEs, export promotion, enhancement of innovation activities and the overall ease of doing business which are essential to restructuring the economy to be more progressive, knowledge-based and high-valued.”

FMM lauded the government’s actions to strengthen the local workforce with an allocation of RM6.5 billion to create 350,000 jobs for Malaysian through increased participation of unemployed graduates and women and toward reducing dependence on foreign workers.

“The increased budget allocation for TVET (Technical, Vocational Educational and Training) to RM5.9 billion, the RM100 incentive for TVET apprentices and the extension of the double deduction for participation in the Skim Latihan Dual Nasional and Structured Internship Programme under TalentCorp are also welcomed.”

It also applauded the government on raising the ceiling of the Market Development Grant (MDG), revising the allocation per export fair upwards and expanding the overall quantum allocated for export promotion activities for SMEs.

“The increased threshold from RM500,000 to RM600,000 for the reduced 17% tax rate of SMEs requires further clarity on the eligibility condition of annual sales of not more than RM50 million.”

In addition, FMM thanked the government for taking heed of its call to extend the time bar for the Accelerated Capital Allowance on Automation until 2023.

It said the manufacturing sector welcomed the RM210 million allocation under the National Fiberisation & Connectivity Plan (NFCP) to accelerate the deployment of new digital infrastructure in high impact areas, including industrial parks where broadband access is key to operations.

“The manufacturing sector notes the allocation of RM4.85 billion under the MARRIS fund to all state governments to maintain roads. We hope that these funds will also be used to upgrade and maintain the roads in industrial estates.”

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