Manufacturers rue 'lack of support' in budget

The Federation of Malaysian Manufacturing said the industry was struggling with rising operating costs as well as barriers to technology adoption, innovation and green investments. (Bernama pic) PETALING JAYA: The Federation of Malaysian Manufacturing has expressed disappointment with the 2027 budget, saying it lacks support for the manufacturing sector.

FMM president Jacob Lee said the manufacturing industry was struggling with rising operating costs as well as barriers to technology adoption, innovation and green investments.

Lee said FMM was disappointed that its proposed RM1.5 billion support package was not adopted for the federal budget. "This leaves a gap in dedicated grant support to help manufacturing small and medium-sized enterprises meet technology adoption costs," he said in a statement.

Lee urged the finance ministry to consult the industry on the proposed minimum wage of RM2,500 per month for semi-skilled workers and graduates.

The wage should be driven by the market and not set by the government, he said. It should reflect job requirements while demonstrating the competence and productivity of the workers.

"Existing skills mismatches mean employers may face both higher wage obligations and additional training costs to equip recruits with the capabilities required for their roles. FMM therefore calls for industry consultation on the proposed framework."

However, Lee welcomed the review of the reinvestment allowance, expressing hope for a clearer eligibility criteria and greater accessibility. The allowance would encourage manufacturers to reinvest in automation and technology, which is key to boosting competitiveness and creating higher-value jobs, he said.

He also welcomed plans to enact a law to better regulate e-commerce platforms, particularly due to foreign firms entering the local market without proper oversight and enforcement.

Lee said Putrajaya should review the impact of low-priced imports entering Malaysia through conventional and online trade channels.

"The proposed E-Commerce Bill should be complemented by a comprehensive review of existing trade and regulatory measures, with appropriate safeguards against unfair trade practices, underpriced imports and non-compliant products," he said. "The objective should be to ensure a level playing field for Malaysian manufacturers and SMEs without restricting legitimate trade or consumer choice."