Budget 2019 initiatives good for rubber industry

KUCHING: The Malaysian Rubber Glove Manufacturers Association ( Margma) is happy with initiatives announced at Budget 2019, pegging it as “fair and a very liveable budget”.

“For a first time budgeter, the Finance Minister has done well working alongside our Prime Minister in the preparation of this budget,” Margma prsident Denis Low Jau Foo said in a statement.

“Despite the difficult economic position that the government is facing, Margma lauds the various allocations to spur the local industries. These include the RM3 billion Industry Digitalisation Transformation Fund under Bank Pembangunan Malaysia Bhd with the subsidised incentive of two per cent interest rate, as well as the High Impact Fund ( HIF) matching grants provided by MIDA to accelerate adoption of Industry 4.0 initiatives among local manufacturers.

“This will help spur local manufacturers to adopt and utilise intelligent technologies including automation, robotics and Artificial Intelligence, as well as encourage companies to invest in activities such as research and development, modernising and upgrading of their manufacturing facilities as well as purchase of new or high technology.”

This is apt as the Malaysian rubber glove industry is now in the second phase of growth where companies compete in terms of product innovation and production technology, Low added.

“Heavy investments are required for this phase of growth to maintain our competitive advantage in light of the growing competition from foreign rubber glove manufacturers.”