10/09/2014

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MALAYSIA: Glove-makers request reinvestment allowance for Budget 2015

According to Margma, providing these tax breaks would encourage players in the rubber glove sector to be more aggressive in moving towards implementing more automation and the creation of proprietary technology.

This would be in line with the Government's call to reduce dependency on foreign labour and to implement the minimum wage, it said.

Margma pointed out that the rubber glove industry continued to play a key role in the Malaysian economy, contributing 1.5 % of total exports in 2013, bringing in RM10.53 billion in export revenue, and was expected to maintain the same level this year.

However, the industry is facing rising costs.

"Margma is expecting production cost pressure on the manufacturers from now till next year due to the implementation of GST, possible rise in raw materials costs and other cost increases.

"Margma hopes the 2015 Budget will include Reinvestment Allowance for industry players in upstream and downstream of the rubber glove sector,” it said.

Source: Daily "The Star”, Kuala Lumpur; 3 Oct 2014
(Syed Rashid Ali, Karachi, Pakistan)



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