Friday 29 Mar 2024
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KUALA LUMPUR (Oct 27): The government’s move to allocate RM4.9 billion to implement the Technical and Vocational Education Training (TVET) Malaysia masterplan is a step in the right direction, says the Federation of Malaysian Manufacturers (FMM).

The federation noted that the merger of all TVET institutions as TVET Malaysia, was also one of its budget wishlist, in order to overcome fragmentation.

However, FMM hopes all relevant stakeholders, including the federation, are consulted on the masterplan.

"The manufacturing sector in particular is pleased that a lot of emphasis has been given to industry, trade, Industry 4.0, the digital economy, education and training," it said in a statement today.

"It is also reassuring to note that the government has kept the budget deficit to 3% and has committed to further reduce to 2.8% in next year’s budget," the statement added.

FMM noted that matching grants and tax incentives for smart manufacturing, automation and digital technologies as announced in Budget 2018, will help to reduce the cost of implementing Industry 4.0 technologies for manufacturers.

"FMM’s wishlist had also called for a RM1 billion transformation fund and the setting up of Industry 4.0 centres. The incentives for green technology financing, as well as efforts to resolve the non-revenue losses, were also on FMM’s budget wishlist," it added.

However, FMM said it had hoped the national budget could have included the extension of the reinvestment allowance, which is expiring in year of assessment 2019.

It also noted that corporate tax rates had not been further reduced in Budget 2018. "The manufacturing sector is of the view that reducing the rates would make Malaysia as competitive as neighbouring countries such as Hong Kong, which has a corporate tax rate of 17%, Singapore of 18%, Thailand of 20% and Vietnam of 20%," FMM added.

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