Local Manufacturers Commend 2021 Budget for Protecting People, Businesses

FMM in The News:  NEW STRAITS TIMES, KUALA LUMPUR, Friday, November 6, 2020 – The 2021 Budget has focused on protecting jobs and companies by helping ease the cash flow challenges of the people and businesses and move Malaysia towards a more sustainable and equitable economy, despite the current economic constraints.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the RM69 billion development spending under the budget was commendable. 

He said for the manufacturing sector, the budget had provided initiatives and incentives towards revitalising the economy.  

This includes facilitating greater access to financing, and SME (small and medium enterprises) development.  

FMM welcomes the allocation of RM42 million to upgrade Internet connectivity in 25 industry areas under the Jendela program.   

However, he said the government needed to review its Internet connectivity strategies to cover more industry areas with faster and affordable high speed broadband (HSBB) and implementation of 5G infrastructure in all parts of country as many industries and business rely heavily on the Internet.  

FMM also welcomes the additional allocation of RM150 million for the SME Digitalisation Grant Scheme and Automation Grant, which is also accompanied by the relaxation of qualifying criteria to facilitate access by SMEs and start-ups which have been in operation for six months.   

“We look forward to receive the full details from the government on the more relaxed criteria. The support for development of science and technology via the allocation for R&D (research and development) including the reintroduction of tax incentives for non-resource based R&D product commercialisation and extension of the incentive to private higher education institution would most certainly drive greater innovation activities and collaboration between industries and academia,” Soh said.

Article Reference : FMM