FMM CALLS FOR GREATER COST COMPETITIVENESS TO SUPPORT MANUFACTURING GROWTH

KUALA LUMPUR, Dec 29 (Bernama) -- The Federation of Malaysian Manufacturing (FMM) has called on the government to strengthen Malaysia’s cost competitiveness to support manufacturing growth as the country ushers in 2026.

FMM said in a statement today that cost competitiveness is a foundational enabler of investment retention, industrial upgrading and long-term manufacturing expansion.

“This includes addressing operating and compliance costs, ensuring competitive and predictable energy pricing to support the energy transition, improving logistics and trade facilitation efficiency, and maintaining a stable, transparent and internationally competitive tax environment,” it said.

On labour, FMM said the successful delivery of the New Industrial Master Plan 2030 (NIMP 2030) and the 13th Malaysia Plan (13MP) hinges on a skilled, productive and adaptable workforce, supported by clear, predictable and workable labour and employment policies at the workplace level.

“This includes well-sequenced labour reforms with consistent enforcement, transparent governance and a demand-driven foreign labour policy that supports business planning while enabling Malaysia’s shift towards automation, higher productivity and higher value-added employment,” FMM said.

FMM also said the government should translate digitalisation, automation and Fourth Industrial Revolution roadmaps into practical support for small and medium enterprises through simpler access to incentives, advisory services and financing to boost technology adoption, productivity and workforce upskilling in line with the 13MP’s goals.

On sustainability, FMM urged the government to advance environmental, social and governance (ESG) integration, the net-zero transition and industrial research and development as key enablers of Malaysia’s next phase of sustainable industrial development under the NIMP 2030 and 13MP. 

“This includes deeper integration of capable local manufacturers, particularly SMEs, into advanced value chains in priority sectors such as semiconductors, electrical and electronics, electric vehicles, aerospace and the energy transition to strengthen domestic value creation and resilience,” it said. 

FMM added that delivering the NIMP 2030 and the 13MP requires not only strong policy intent but also disciplined execution, structured industry engagement and a coordinated whole-of-government approach.

-- BERNAMA