By SHAZNI ONG / Pic By MUHD AMIN NAHARUL
The Malaysian Rubber Glove Manufacturers Association (MARGMA) has called for an extension and expansion of the reinvestment allowance for the industry in the upcoming Budget 2019.
The association said it is cognisant of the difficult financial situation that the Pakatan Harapan government is now facing, and that it is really a predicament for which every citizen must come forward to assist.
“This is particularly important for Malaysian glove manufacturers to continue to reinvest huge capital to expand and build modern and automated factories in order to stay ahead as the world leader.
“We want to work hand in glove with the government to expand business worldwide and to bring in more revenue to the country,” MARGMA said in a statement yesterday.
According to MARGMA, the reinvestment allowance is no longer given to the rubber glove industry as it is deemed a matured industry.
It added that the incentive is crucial for Malaysia to maintain its leading position over the next five years as foreign competitors in neighbouring countries are catching up fast, with them embarking on ambitious expansion plans.
“The Malaysian rubber glove industry has completed its first phase of rapid growth in production capacity and has helped position Malaysia as the world leader in rubber gloves manufacturing.
“The industry is now in the second phase of growth where companies compete in terms of product innovation and production technology. Heavy investments are required for this phase of growth to maintain our competitive advantage,” it said.
MARGMA added that it had also submitted its budget recommendation on the reinvestment allowance to the Finance Ministry.
The intended impact the reinvestment allowance would bring is to ensure that Malaysia maintains its global leadership position in glove exports, as well as to promote and encourage more investments in factory expansions, modernisation, diversification and automation to improve and increase manufacturing activities, it noted.
The association hopes that the impact would also lead to spur the growth of more Malaysian engineering firms and inventions, to create more high-end jobs for university graduates and to further increase export revenue for Malaysia.