Business

Wednesday March 11, 2009

FMM says export sector not given prominence

By EUGENE MAHALINGAM


KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) believes that the export sector was not given prominence at the mini budget tabled yesterday.

FMM president Datuk Mustafa Mansur said the Government should have paid more emphasis on boosting the sector given the decline in exports in recent months.

“During the 1997 Asian financial crisis, what saved us was the export market and the Government needs to relook at provisions that will boost exports,” he said at a press conference yesterday.

“We hope that if there is a third stimulus package or a supplementary budget, the Government will consider an export-promotion drive to ensure the exporters continue to export,” Mustafa added.

According to him, the FMM had submitted numerous proposals to the Government on how the export sector could benefit.

Among the proposals were export tax rebates, double tax reduction on freight charges, greater financial support for export promotion activities undertaken by Government agencies and trade associations to assist exporters in retaining existing and securing new markets.

“If measures are not taken to boost exports, we will lose market share. About 85% of the manufacturing sector is export-orientated. As exports shrink, so will the manufacturing sector,” Mustafa said.

Export sector aside, he said the budget stimulus overall was fairly comprehensive and covered most sectors of the economy.

“The announcement of the RM60bil economic stimulus package is timely given the deterioration in the international economic environment and its impact on the Malaysian economy.”

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