Strengthening / Supporting Trade Including Domestic Trade

i. Increase ceiling of Market Development Grant to RM500K

ii. Reinstate Brand Promotion Grant to complement M’sian brand promotion efforts

iii. Conclude Regional Comprehensive Partnership Agreement (RCEP) and implement Free Trade Agreements (FTAs) which have been signed such as the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) in order to provide market access for Malaysian exporters.

iv. Explore non-traditional markets including the Middle East, Eastern Europe and Africas through Preferential Trade Agreements (PTA) in order to provide greater market access for Malaysian products

v. Support needed for new business / diversify existing business ventures in the essential goods for import substitution and exports such as face masks, respirators and thermometers, hand sanitiser, protective wear; and reusable medical and surgical gown fabric.

vi. Reinstate Regional Distribution Centre (RDC)/ International Procurement Centre (IPC) Status – Would help the national agenda in terms of attracting more investment and increasing exports. Propose reinstating the RDC/IPC status especially for companies that wish to complement their manufacturing activities with repacking / break bulking / minimum value-added activities

vii. Reinstate GST at 3% with a threshold of RM500,000 and transition period of 6 months. There must be provisions for interest on late repayment of GST refunds and a more efficient scheme to replace the Approved Trader Scheme (ATS) and Approved Toll Manufacturing Scheme (ATMS) as these schemes are complicated and difficult to implement. Ensure that the outstanding GST refunds are paid in full before the new tax system is introduced.

viii. Allowance for Increased Exports (AIE) – in July 2019 the previous Rules and Order were revoked and new conditions set for both Allowance for Increased Exports (AIE) under Income Tax (Allowance for Increased Exports) Rules 1999 [PU(A) 128/1999] and incentive for significant increase in export penetration into new markets (Income Tax (Exemption) (No. 17) Order 2005 [PU(A) 158/2005]). The previous qualifying company condition for normal AIE was company resident in Malaysia and for AIE for significant increase in export penetration was 60% of issued share capital of the company is Malaysian owned. In July 2019 the new qualifying criteria for both schemes is 60% of issued share capital of the qualifying company is owned directly by Malaysian citizen. This has resulted in a company with minimum shareholding of 60% Malaysian citizens held through another company being no longer qualified and all Malaysian companies including SME with corporate shareholders no longer being entitled. The purpose of AIE is to promote export of Malaysian manufactured products and introduced to promote industrialisation in Malaysia especially for value added products. The previous gazette orders facilitated this where they have consistently not had the requirement for 60% shares of the company to be held by an individual. In this respect FMM requests for the qualifying criteria to be reviewed and to reintroduce the previous qualifying requirement where 60% of the issued shares of the company is Malaysian owned.

ix. Buy Made-in-Malaysia & Government Procurement Policy Enforcement

  • More tax incentives such as tax rebates and double tax deductions to encourage companies to continue to Buy Made-in-Malaysia
  • Welcome proposal by MOF to develop a singular GP legislation to house all GP related laws and policies relating to goods, works and services to ensure the regulations are enforced effectively.

x. Address Illegal Trade of Goods – tighten enforcement on smuggling & counterfeit

Article Reference : FMM