Manufacturers' group wants plan to address labour quarters shortage
The Federation of Malaysian Manufacturing (FMM) has proposed that the government formulate a National Action Plan on Labour Quarters to address the shortage of proper accommodation for workers, especially in key industrial areas and logistics hubs across the country.
Its president, Soh Thian Lai, proposed that the action plan be implemented jointly by the Housing and Local Government Ministry, the Human Resources Ministry, and local authorities.
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Borneo Post
a day ago
- Borneo Post
FMM calls for stamp act update to reflect modern employment practices
Tan Sri Dato' Soh Thian Lai KUCHING (June 7): The Federation of Malaysian Manufacturing (FMM) has urged the government to consider regularising and updating the First Schedule of the Stamp Act 1949 to reflect current economic and business realities. FMM president Tan Sri Dato' Soh Thian Lai said the federation recommends increasing the threshold for stamp duty exemption on employment contracts from the current RM300 to RM10,000, in line with modern salary benchmarks and industry norms. 'We call for a comprehensive review of the Stamp Act 1949, particularly in relation to the classification of employment contracts and appointment letters as instruments subject to stamp duty,' he said in a statement today. Soh further urged the Finance Minister to exercise his powers under Section 80 of the Stamp Act 1949 to make the necessary changes by way of subsidiary legislation, without the need to table amendments in Parliament. According to him, this approach will enable a timely and effective update to the law, ensuring that it remains practical, business-friendly and aligned with current employment practices. He expressed appreciation to the Finance Ministry and the Inland Revenue Board of Malaysia for their 'prudent and considerate decision' to exempt employment contracts executed before Jan 1 this year from stamp duty, and for remitting penalties on all late stamping for such contracts. This decision, he said, is a significant relief for employers, especially in the manufacturing sector, as it addresses the concerns raised by FMM in its engagements with the government. 'It recognises that the requirement to stamp employment contracts was not widely known or enforced in the past, and that penalising past non-compliance would have created an unnecessary burden on businesses,' he said. He said FMM also welcomed the further decision on the remission of penalties for any non-compliance involving contracts executed during the 2025 transition year, provided these are stamped before Dec 31 this year. Deferring the full implementation of the regulation to be effective only from Jan 1 next year is an excellent and pragmatic move, lauded Soh. He said it provides a much-needed adjustment period for employers while also paving the way for the Finance Minister to update the regulation under the Stamp Act 1949 without retroactive implications. employment Federation of Malaysian Manufacturing lead soh thian lai stamp
The Star
2 days ago
- The Star
‘Flood prevention rules to be updated'
Continuous rainfall from March 19 to 20 this year caused floods in parts of Taman Tampoi Indah 2, Johor Baru. — Filepic Johor government will hold workshops to enable all 16 local authorities to better tackle floods, said state executive councillor Datuk Mohd Jafni Md Shukor. The housing and local government committee chairman said they would start with local councils in the Johor-Singapore Special Economic Zone as these faced the most flood-related issues. 'Our workshops since 2023 focused on getting higher allocations for flood mitigation efforts, and improving enforcement. 'This year, we will focus on improving regulations, especially for retention ponds, irrigation and drainage systems. 'This also includes standard operating procedures (SOP) that developers must follow before starting work on a site,' he said in an interview. He added that the workshops would begin in the third quarter of this year. Under the SOP, developers must build retention ponds before starting a project. Mohd Jafni also said outdated regulations must be reviewed. 'The regulations had been in use for more than 10 years and can no longer cope with the current volume of rainfall which is four to six times more than before,' he said. Mohd Jafni said earlier workshops had yielded some results. 'Just this year we received more than RM100mil, which is likely one of the highest allocation amounts from the Housing and Local Government Ministry for flood-related issues,' he disclosed. He said that some RM213mil had been allocated to carry out over 350 flood-related projects since 2023. This includes RM106mil for flood mitigation efforts involving all local authorities this year. 'Of the 123 projects for this year, 16 are under Johor Baru City Council, which has been allocated about RM42mil. 'Another 16 are under Pasir Gudang City Council with RM9.1mil, while 13 are under Iskandar Puteri City Council with some RM36mil' said Mohd Jafni. 'Through the projects, we hope to resolve at least half of the flood issues,' he added.
The Star
4 days ago
- The Star
24% US tariff looms for Malaysia
PETALING JAYA: With just one month remaining before the United States imposes a 24% tariff on all Malaysian goods exported there, exporters are expressing concerns that more than half of them will be negatively affected if Malaysia fails to secure a deal. The Federation of Malaysian Manufacturers (FMM) said about 52% of local exporters expect demand to decline if the United States proceeds with its tariff hike, with nearly half anticipating profit margins to be slashed by over 30%. Its president Tan Sri Soh Thian Lai warned that such pressures could force some companies, especially those in cost-sensitive sectors like electrical machinery services (EMS), which supports US-linked manufacturing operations in Malaysia, to scale back operations. 'While the full financial impact and potential job losses remain difficult to quantify, FMM cautions that the combined effects of order cuts, shrinking margins and prolonged cost pressures could have serious repercussions for the country's export-reliant industries,' he said when contacted recently. In April, the United States offered a 90-day pause to negotiate new country-specific rates based on trade imbalances. The window is expected to close early next month. Soh added that even if Washington settles for a lower tariff range of 10 to 15%, Malaysia would still be at a competitive disadvantage compared to countries with preferential US market access, raising concerns over a possible long-term shift in sourcing decisions by American buyers. 'Since April 2025, all Malaysian exports entering the United States have already been subjected to an across-the-board 10% tariff, which has added considerable pressure on companies, especially those whose products previously enjoyed low or zero tariffs. 'A further escalation of tariffs would significantly deepen this impact and pose a serious threat to Malaysia's export performance,' added Soh. At the same time, FMM lauded the Investment, Trade and Industry Ministry (Miti) for its proactive efforts through the National Geoeconomic Command Centre Task Force and its recent trade mission to Washington, DC, which included negotiations with the US Trade Representative. FMM said that these engagements are crucial for seeking exemptions from existing levies on products such as steel and aluminium. Socio-Economic Research Centre executive director Lee Heng Guie said that based on its engagement with local players, many businesses are still closely monitoring how the situation unfolds. 'What we've observed since April is that some local exporters, particularly in the electrical and electronics (E&E) sector, have been front-loading their shipments to the United States to beat the higher tariff deadline. 'This spike in export numbers is likely to continue until May or perhaps early June, based on feedback from businesses and buyers we've spoken to,' he said. However, he added that some US buyers are taking a more cautious approach. 'They are delaying shipments and deliveries, adopting a 'wait-and-see' attitude regarding the final tariff decision. 'The concern is that if the tariff jumps to 24%, they may not be willing to absorb that additional cost. 'On the other hand, if the outcome is less than or remains at 10%, they would prefer to wait and only proceed once the situation is clear,' said Lee. He said there were also ongoing negotiations between US buyers and Malaysian sellers on how to manage the tariff burden. Lee stressed that the adjustment process will likely continue well beyond the 90-day pause, as businesses prepare for various outcomes. Malay Economic Action Council senior fellow Ahmad Yazid Othman said, in principle, the council's position is that Malaysia must accept that tariffs would be imposed. 'We hope that the government will do more to spur domestic consumption and be prepared that tariffs will increase. 'As an exporting country, not every sector will be equally affected, which is why we shouldn't put all our eggs in one basket. 'We need to diversify and spread the risk by investing in more economic opportunities across other sectors, especially those not reliant on exports. I believe there's a silver lining in this situation as well,' he said.
