FMM: Manufacturers expect slower economic growth in H1
KUALA LUMPUR: Malaysia’s manufacturers say their activities picked up in the second half of last year, but expect slower economic growth in the first half of this year.
Federation of Malaysian Manufacturers (FMM) president Datuk Soh Thian Lai said its members had indicated lower expectations of sales, production volume and employment due to rising costs.
“With global economic challenges confronting Malaysia, the manufacturing sector is heading into 2019 with more caution and lower expectations from sales to employment,” he said after presenting the Business Conditions Index, here, yesterday.
This is the 14th joint survey between FMM and the Malaysian Institute of Economic Research.
Soh said the survey involved 517 participants nationwide, acknowledged that local and export sales improved in the second half of last year.
Manufacturers, however, expect weaker demand in the first half amid rising production cost.
“The survey highlighted lack of clarity in the Sales and Services Tax (SST) exemptions and difficulty in usage of the mySST online system. Manufacturers have received inconsistent advice from Customs officials.
“The feedback from members showed since SST was implemented from September last year, it has generally increased cost of doing business by up to 10 per cent.
He confirmed that FMM members who had filed claims for Goods and Services Tax (GST) refunds have received the sums.
“Members who filed for GST refunds of RM50,000 and below have started to receive the sums from Customs.
“We hope the government will speed up documentation audits and GST refunds to manufacturers as this will help improve cash flows of small and medium businesses,” said Soh.