RM200 mln in Budget 2024 will drive NIMP2030 — FMM
14 Oct 2023
The Federation of Malaysian Manufacturers (FMM) is optimistic the RM200 million allocation in Budget 2024 as the initial fund to drive the New Industrial Masterplan 2030 (NIMP2030) would elevate the sector as the country’s engine of new growth.
Its president Tan Sri Soh Thian Lai said the allocation will focus on and prioritise high-growth, high-value (HGHV) sectors and the incentives, like the tiered reinvestment tax incentives introduced to support the contribution of these sectors to the overall gross domestic product (GDP) of the country.
“The introduction of the Investment and Trade Coordination Action Committee is also a step in the right direction further to attract more HGHV-related investments, both foreign and domestic,” he said in a statement.
Additionally, the focus on technology and innovation to drive new economic growth, supported by research, development, commercialisation and innovation (R&D&C&I), to achieve the country’s target of being in the Top 30 countries in the Global Innovation Index by 2026 is much welcomed.
In particular, the RM510 million allocation for R&D funds under the Ministry of Science, Technology and Innovation (Mosti) and the Ministry of Higher Education (Mohe) and the push for greater collaboration between public universities and industry would further drive initiatives in R&D&C&I.
Soh said the industry also noted the extension in the implementation date for the first phase of the e-invoicing by the Inland Revenue Board to August 1, 2024.
This move will certainly facilitate industries’ greater preparedness to meet this new mandatory requirement.
“FMM also wishes to express our gratitude to the Royal Malaysian Customs Department and the Ministry of Finance for introducing tax exemption on manufacturing aides effective January 1, 2024.
“This significant move will undoubtedly benefit our industries by enhancing the competitiveness of our Malaysian manufactured products as well as the focus on addressing the country’s food security which will further grow our food processing sector as a world-class food processing hub,” he said.
Overall, FMM believes the Budget 2024 strategy is well-balanced, prudent, and forward-thinking.
As the government repositions Malaysia in this new era of global competition, FMM fully supports the initial steps taken concerning sustainability and the green agenda as Malaysia transitions to a low-carbon economy without losing sight of food security.
Soh added the budget’s focus on digitalisation and adoption of advanced technology is critical and will enhance industry competitiveness in the medium to long term.