Malaysia's manufacturing sector is being squeezed by rising cost burdens, with more than two-thirds of companies reporting at least a 10% increase in production and operating expenses, The Star reported Thursday, citing the Federation of Malaysian Manufacturers (FMM).
In response, authorities have approved a temporary waiver of import duties and sales tax until Dec. 31 for Malaysian goods returned due to export disruptions. An April survey cited by FMM showed 90.5% of manufacturers are already affected or expect to be, while 74.5% report cash flow pressure and 18.2% face disruptions to orders and supplier payments, according to the report.
To stabilize supply chains, the Health Ministry has secured cooperation with China to strengthen access to key inputs for medical devices, including resin and naphtha. FMM is urging similar arrangements for other critical materials such as sulphur, ammonia and selected polymers, alongside proposals for a Business Resilience Fund and expanded tax relief to offset logistics costs from ongoing geopolitical and shipping challenges, the news outlet said.
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