Latest news with #SohThianLai
The Sun
2 hours ago
- Business
- The Sun
FMM urges ASEAN to boost trade integration for economic growth
KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) has urged ASEAN to strengthen intra-regional trade and production networks to enhance economic integration. FMM President Tan Sri Soh Thian Lai emphasised the need for mutual recognition of standards, unified digital customs platforms, and regulatory alignment among member states. Soh highlighted that intra-ASEAN trade currently makes up only 22 per cent of the region's total trade, far below the European Union's 60 per cent. 'Closing this gap is crucial to unlocking ASEAN's full economic potential and ensuring long-term supply chain resilience,' he said in a statement. The FMM reaffirmed its commitment to collaborating with governments and regional stakeholders to foster a more integrated, stable, and competitive ASEAN economy. Soh also commended Prime Minister Datuk Seri Anwar Ibrahim's mediation in easing tensions between Thailand and Cambodia. 'This diplomatic success demonstrates Malaysia's growing influence in promoting ASEAN unity and stability. It also reaffirms the bloc's ability to resolve geopolitical challenges through dialogue and strong leadership,' Soh added. - Bernama
Barnama
2 hours ago
- Business
- Barnama
FMM Calls On ASEAN To Boost Intra-regional Trade, Integration
KUALA LUMPUR, July 30 (Bernama) -- The Federation of Malaysian Manufacturers (FMM) has called on ASEAN to intensify efforts to strengthen intra-ASEAN trade and production linkages. FMM President Tan Sri Soh Thian Lai stated that there is a need to advance mutual recognition of standards, harmonise digital customs platforms, and enhance regulatory coherence across member countries. He noted that intra-ASEAN trade currently accounted for only 22 per cent of total ASEAN trade, compared to around 60 per cent in the European Union. 'Closing this gap will be essential to unlocking ASEAN's full economic potential and building long-term supply chain resilience,' he said in a statement.
New Straits Times
6 days ago
- Business
- New Straits Times
Manufacturers face RM1bil loss if Sept 15 holiday not formalised: FMM
KUALA LUMPUR: Manufacturers may suffer up to RM1 billion in losses if the government does not promptly formalise the Sept 15 public holiday, the Federation of Malaysian Manufacturers (FMM) cautioned as it pressed for immediate gazettement. Yesterday, Prime Minister Datuk Seri Anwar Ibrahim declared that Sept 15 would be observed as a public holiday in conjunction with Malaysia Day, with the Human Resources Ministry stating that employers must comply. However, FMM said official confirmation via a gazette notification under the Holidays Act 1951 was still pending. "This is critical to provide legal clarity and enable businesses to plan operations, workforce scheduling, and ensure compliance with the Employment Act 1955," the federation said in a statement. FMM president Tan Sri Soh Thian Lai said last-minute declarations of public holidays disrupt tightly scheduled production timelines, export commitments and labour shifts, particularly in sectors that rely on continuous operations. "Declaring Monday, Sept 15, as a holiday effectively creates a four-day disruption for many manufacturers, covering Saturday through Tuesday for shift-based and continuous operations. Such interruptions require production lines to stop and restart, which is both costly and inefficient," he said. FMM estimated that each additional unplanned public holiday could result in up to RM1 billion in productivity and output losses for manufacturers. The impact is especially severe for export-driven industries and those with continuous production lines, such as steel, food processing and chemicals. Small and medium-sized enterprises, in particular, would struggle to absorb the added costs or manage overtime and replacement shifts, the group added. "Frequent ad hoc holiday declarations do not augur well for a country striving to achieve high-income nation status and position itself as a competitive, reliable, and attractive destination for investment," it added. FMM stressed the importance of policy clarity, consistency, certainty and credibility, noting that abrupt decisions could erode investor confidence and weaken Malaysia's standing in global supply chains. While acknowledging the spirit behind the Malaysia Day celebration, the federation called on the government to expedite the official gazettement, providing immediate legal certainty and enabling businesses to mitigate operational risks effectively.
Focus Malaysia
6 days ago
- Business
- Focus Malaysia
FMM: Ad hoc holidays unproductive, creates costly, inefficient disruption for manufacturers
THE Federation of Malaysian Manufacturing (FMM) has urged the government to immediately issue the official Gazette notification confirming the status of the holiday under the Holidays Act 1951. Its president Tan Sri Soh Thian Lai was responding to a recent announcement by Prime Minister Datuk Seri Anwar Ibrahim declaring Sept 15 as an additional public holiday in conjunction with the Malaysia Day celebrations. 'This is critical to provide legal clarity and enable businesses to plan operations, workforce scheduling, and ensure compliance with the Employment Act 1955,' he stated. 'The manufacturing sector is highly sensitive to last-minute holiday declarations due to tightly scheduled production timelines, export commitments, and labour shifts.' According to Soh, declaring Sept 15 a holiday effectively creates a four-day disruption for many manufacturers whereby such interruptions require production lines to stop and restart, which is both costly and inefficient. 'Based on past estimates, each additional unplanned public holiday can result in up to RM1 bil in productivity and output losses for the manufacturing sector alone,' he continued. 'The impact is particularly severe for export-oriented industries and those with continuous processes such as steel, food processing, and chemicals. 'SMEs, in particular, will face challenges in absorbing these costs or managing overtime and replacement shifts. These disruptions also have a cascading effect across supply chains and logistics operations.' Soh further stressed that policy announcements must reflect clarity, consistency, certainty, and credibility. He noted that frequent ad hoc holiday declarations do not augur well for a country striving to achieve high-income nation status and position itself as a competitive, reliable, and attractive destination for investment. 'Investors and global buyers require predictability and stability. Sudden changes that disrupt production and supply chain commitments risk undermining Malaysia's competitiveness, especially when the nation is working hard to secure global supply chain opportunities and high-value investments,' he elaborated. 'While FMM appreciates the spirit of celebrating Malaysia Day, we strongly urge the government to expedite the official gazettement to provide immediate legal clarity and enable businesses to manage operational risks effectively.' ‒ July 24, 2025
The Star
09-07-2025
- Business
- The Star
Tough duties ahead for exporters
'CLICK TO ENLARGE' PETALING JAYA: Higher tariffs on Malaysian imports to the United States have left exporters on edge, prompting manufacturers and small firms to urge the government to pursue further talks with the country's largest export market. They also want the government to provide tax exemptions and aid schemes to industries and to help them find alternative markets to mitigate the impact of the 25% tariff on Malaysian goods going to the United States. 'This latest escalation is risking an already fragile industrial landscape, severely impacting export competitiveness and placing additional strain on manufacturers,' said the Federation of Malaysian Manufacturing (FMM) yesterday. FMM president Tan Sri Soh Thian Lai said the sector is already reeling from a 10% tariff that had been imposed earlier and rising cost pressures from the expanded Sales and Service Tax (SST) and new electricity rates. The Federation of Malaysian Business Associations (FMBA) said the most severely impacted industries include electrical and electronics (E&E), medical devices and those making machine components. 'SMEs that supply to larger exporters or are part of the US-linked supply value chains will face declining profits and orders, ultimately affecting jobs and cash flow,' said FMBA vice-chairman Nivas Ragavan. Micro, small and medium sized firms (MSME) who are key players in the supply chains of the commodity-based export sector will also be impacted, said the Malay Businessmen and Industrialists Association of Malaysia (Perdasama). Another small business group, the SME Association of Malaysia, said that firms involved in the global semi-conductor supply chain will be impacted. 'CLICK TO ENLARGE' To overcome these tariffs, Perdasama president Mohd Azamanizam Baharon urged MSMEs to enhance their competitiveness and explore new markets, particularly in Asean, the Middle East and East Asia. 'Perdasama also recommends that the government introduce export support schemes, tax exemptions, or rebates for companies directly impacted by these tariffs so that they may sustain operations and protect jobs,' said Mohd Azamanizam. FMBA's Nivas also asked the government to provide timely updates for SMEs to prepare for shifting global trade dynamics. 'It is critical for Malaysia to position itself as a strategic, agile hub in the global supply chain and to reassure international stakeholders that we remain open for business despite geopolitical headwinds,' he said. Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong urged the government to immediately help local businesses have a 'soft landing'. 'Perhaps the government can come up with incentives similar to how China is assisting their EV market,' he said. While helping local firms deal with the impact, Malay Chamber of Commerce Malaysia (DPMM) president Norsyahrin Hamidon also urged the government to continue negotiating with the United States as the new tariff only goes into effect on Aug 1. 'There is still time for Malaysia to talk to the United States,' he said. Echoing this, SME Association of Malaysia president Dr Chin Chee Seong said Malaysia should press on with talks with the United States despite the fact that the chances of success are slim.
