Sabah manufacturers propose additional relief measures

KOTA KINABALU: The Federation of Malaysian Manufacturers (FMM) Sabah is proposing new measures to the State government to consider in addition to the recently announced Sabah Covid-19 Assistance Package.

FMM Sabah chairman, James Ha Haw Yew said among proposals the Government can consider are the waiver of storage, removal and demurrage charges by Sabah Ports Sdn Bhd during the Movement Control Order (MCO) period.

This, he said, was to help with the companies’ cash flow that would also benefit importers, distributors and stockists.

He also urged the government to waive rental in KKIP and POIC for 24 months upon issuance of licence of operation as FMM Sabah believed this would boost the growth of industry and create new job opportunities to offset losses of jobs due to retrenchment.

The government, he said, should consider the waiver of quit rent and house assessment for all businesses including industries in KKIP for two years adding that the recent announcement to reduce 30 percent in quit rent was insufficient to cushion the Covid-19 impact.

“Property tax for year 2020-2021 should be reduced to half for all commercial properties and 50 percent subsidy should be given for business premises rental for the next six months

“In order to protect our local industries the government should consider boosting domestic consumption and government procurement and projects to buy/use madein-Sabah products and services and curb unnecessary imports.

“It will bring multiplier benefits to the State economy,” he said adding that FMM Sabah also suggested that the government tighten the importation of finished goods/products to the State.

Give priority to local manufacturers to produce consumer products for local consumption/use, stressed Ha before pointing out that FMM called on the government to regulate and control foreign contractors to not import and purchase building materials from overseas but proritise the purchase of building materials from local manufacturers.

This, he said, in turn, would help create more job opportunity and the same time reduce the flowing of money overseas.

The State government should also give priority to local manufactured products and encourage collaboration with local architect, building engineers and building authority/ local institutions to specify and approve quality of local products, he said.

“The government can also consider to introduce import tax for overseas building materials to protect the local manufacturers and generate additional revenue for the State.

“Similarly, imposed levy for products from Peninsular Malaysia and be added to income for the State,” Ha said.

FMM Sabah also proposed the government grant electricity discount of 50 percent for all major industrial and commercial users for three months, providegGrants of between 30 percent and 50 percent working capital to selected and critical businesses.

This, however, he said would depend on the business size and nature of business.

“The government should consider more lenient documentation. This will ensure the survival of critical industries and job retention and lastly, it should look into a special soft loan scheme with a low 2 percent interest rate for companies to cover the fixed capital payments such as rentals and utilities as well as administration payments including salaries during this period,” said Ha.