KUALA LUMPUR, Sept 17 (Bernama) — The Federation of Malaysian Manufacturers (FMM) hopes the government will not introduce additional taxes on the manufacturing industry during the tabling of Budget 2026.
Its president Tan Sri Soh Thian Lai said the exclusion of additional taxes for the sector could provide some breathing space and allow businesses to focus on their activities amid rising operational costs and global uncertainties.
“Just leave the money in the economic system. Let the money flow inside the economic system. If the government keeps on taxing the industry, it will not be able to make profits,” he told a press conference during the release of the FMM Business Conditions Survey for the first half of 2025, here today.
Soh hoped that the government would understand the needs of industry players and provide them with space to focus on their business while continuing to generate sufficient revenue for the sector.
He said FMM has also proposed that the government set up an ASEAN supply chain coordination council to connect and strengthen regional supply chains.
“This is so that the whole ASEAN supply chain gets connected through the council. This is a big opportunity, as we are able to enhance revenue generation through the ASEAN supply chain council,” he said.
According to Soh, the coordination network is needed so that each ASEAN country can work together to enhance its potential through the reshoring or nearshoring of its products.
He noted that with the ASEAN governments’ assistance, the private sector, particularly in business-to-business transactions, can further enhance its capabilities.
“Like Malaysia, we can work together with Thailand and Vietnam to source some of our intermediate goods. This is one of the strategies that we can work on to (enhance) our supply chain system,” he added.
Soh said the federation will hold its first meeting with the ASEAN Business Advisory Council (ASEAN-BAC) to discuss the proposed idea on Sept 23, 2025.
— BERNAMA
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