The industry was Malaysia’s 15th largest exporter for the period of January- December 2016, accounting for RM5.6 billion of the country’s total manufactured exports or approximately 0.7 per cent of Malaysia’s total exports of manufactured goods.
Major exports included mineral products (RM2.3 billion); glass and glassware (RM1.9 billion) as well as clay construction materials and refactory construction materials (RM772.3 million). While, major export destinations were Singapore, Japan and Republic of Korea.
To encourage investments in the non-metallic industry, several products/activities have been gazetted as promoted products/activities under the Promotion of Investment Act, 1986 and thus, could be considered for tax incentives in the form of Pioneer Status or Investment Tax Allowance. They are:
1. High alumina or basic refractories
2. Laboratory, chemical or industrial wares
3. Synthetic diamonds
4. Crystallized or moulded glass such as bricks, tiles, slabs, pellets, paving blocks and squares
5. Absorbent mineral clay
6. Marble and granite products
7. Panels, boards, tiles, blocks or similar articles of natural and synthetic fiber agglomerated with cement, plaster or other mineral binding substance.
In addition to these products, MIDA also continues to promote upstream activities for IBS manufacturers to produce materials, parts and components. Through the adoption of ecosystem approach in integrating the supply chain process, MIDA identifies and fills up gaps to help the construction industry improve its performance as well as reduce its strong dependency on labour. IBS, being a modern and comprehensive construction eco-system, will lead to a more competitive and sustainable industry. This will be in line with the productivity thrust of the Construction Industry Transformation Programme (CITP), launched on 10 September 2015. The CITP has identified modern construction techniques as one of the key drivers to increase productivity by two-and-a-half times.
The CITP, which aims to increase the adoption of IBS construction in Malaysia, is a national agenda to transform the construction industry. Its primary objective is to transform the construction industry towards becoming a highly productive and environmentally sustainable industry with globally competitive players focusing strongly on safety and quality standards.
The Government recently announced that companies that manufacture IBS components could be considered incentives in the form of either Pioneer Status or Investment Tax Allowance (ITA). These incentives are effective for applications received by MIDA from 10 September 2015 until 31 December 2020.