Latest news with #FMM
Borneo Post
12 hours ago
- Business
- Borneo Post
M'sian manufacturing body urges govt support for automation, job redesign to tackle labour shortage
Soh says while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. KUCHING (June 21): The Federation of Malaysian Manufacturing (FMM) has suggested the government introduce targeted incentives for automation and support for job redesign to maintain manufacturing as a competitive and inclusive sector. According to FMM president Tan Sri Soh Thian Lai, while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. He said the latest Department of Statistics Malaysia (DoSM) data had confirmed that manufacturing wages in Malaysia were rising steadily and surpassing national averages. 'Employers in the sector remain committed to offering fair and competitive compensation, but urgent support is needed to address persistent labour shortage. 'The reliance on foreign workers stems from a shortage of willing and skilled local workers, not from any strategy to suppress wages. 'A balanced, data-driven and skills-based human capital strategy is crucial for us to remain competitive and inclusive,' he said in a statement, issued in response to DoSM's Monthly Manufacturing Statistics, which indicated that the average salary in the manufacturing sector rose to RM3,460 per month in April this year, reflecting a 1.2 per cent year-on-year increase. In comparison, the average monthly salary across all formal sectors stood at RM3,441 in the fourth quarter of last year, highlighting that manufacturing wages continued to outperform the national average, Soh pointed out. Additionally, he said total wages paid in the manufacturing sector climbed to RM8.31 billion in April 2025, marking a 2.4 per cent year-on-year increase. He added that the median wage across all formal sectors was recorded at RM3,045, while manufacturing median wages ranged between RM2,764 and RM3,052, well above the national minimum wage of RM1,700. 'FMM acknowledges that the data clearly demonstrates manufacturing wages in Malaysia are not only competitive, but are continuing to rise steadily. This affirms that employers in the sector are offering fair compensation, and it also counters the claim of the workers being underpaid. 'Despite competitive wage levels, the manufacturing sector continues to grapple with acute labour shortages, especially in 3D (dirty, dangerous, and difficult) job categories.' He emphasised again that the local workers were not being displaced by cheaper foreign labour, adding that hiring foreign workers involved considerable costs and regulatory compliance. 'Furthermore, even when wages offered exceed the national minimum wage, many of these roles remain unattractive to the local job-seekers.' As such, he recommended the government to expand technical and vocational education and training (TVET) programmes and industry-led training initiatives to the manufacturing sector and strengthen them, as well as to formalise informal workers and improve the enforcement of wage-related regulations. 'The government should also establish tripartite labour planning councils for collaborative workforce strategies. 'We reiterate our support for a voluntary, productivity-linked Progressive Wage Policy (PWP) that encourages wage growth aligned with skills enhancement and measurable performance, rather than arbitrary increases. 'A business-friendly and voluntary PWP, grounded in clear performance metrics, would gain manufacturers' support and ensure that wage increases are sustainable and linked to worker capability,' added Soh.
Toronto Sun
3 days ago
- Politics
- Toronto Sun
WATCH: Premier Ford on crime - 'People are done with this'
SASKATOON, SASK. - June 2, 2025 - 0603 news FMM - Ontario Premier Doug Ford speaks during the First Ministers' Meeting at TCU Place. Photo taken in Saskatoon, Sask. on Monday, June 2, 2025. (Michelle Berg / Saskatoon StarPhoenix) WATCH: Ontario Premier Doug Ford on people's frustration with crime, lax bail law, lenient judges and tow truck related violence. What do YOU think? Tell us your thoughts in the comment section below or send us a Letter to the Editor for possible publication to . Letters must be 250 words or less and signed. And don't forget to subscribe to our YouTube Channel. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account NHL Canada Soccer Toronto Maple Leafs Toronto & GTA
New Straits Times
5 days ago
- Business
- New Straits Times
FMM urges clarity, dialogue on port tariff hike
KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) remains concerned that the scale and timing of the recent port tariff hikes without detailed cost disclosures or comprehensive stakeholder consultation may place an undue burden on industry. In response to the explanations provided by the Port Klang Authority (PKA) in its press statement dated June 16, 2025, FMM said given the wide-ranging implications for trade, investment and the cost of doing business, it believes the rationale for the revision warrants further scrutiny. "FMM fully respects the right of all stakeholders, including PKA, to present and defend their positions. Constructive dialogue is essential to national development. "However, given the wide-ranging implications of this tariff hike, especially amid broader cost escalations and global uncertainties, we believe it is time to move beyond justification and toward pragmatic resolution," said FMM president Tan Seri Datuk Soh Thian Lai. Soh said the federation disagrees on PKA points that Port Klang's tariff rates will remain among the most competitive in the region. While Port Klang's official handling tariff of RM390 (approximately US$92 per TEU) may appear lower on paper, he said this figure does not reflect the actual cost borne by Malaysian shippers. "Terminal Handling Charges (THC) are not billed directly by port operators to shippers; instead, they are imposed by shipping lines, often with significant mark-ups. "Current publicly available rates by shipping lines show that Malaysian shippers are already paying an average of RM480 per 20-foot container, well above the existing RM300 port handling charge. "Increasing the tariff to RM390 without structural reform will effectively give shipping lines the latitude to raise THC further, potentially reaching the real-world cost range of US$120 to 130 per TEU," he said. Meanwhile, Soh pointed out that port operators face cost pressures like other industries, but it questions whether the proposed tariff hike is truly warranted given current financial and regulatory contexts. Under existing concession agreements, the costs associated with port development and infrastructure are contractually required to be fully borne by port operators, he said. As for the PKA's claims that relative to other increases, port charges are a small fraction of the total cost that consumers will ultimately bear indirectly, FMM disagrees with the narrow framing of cost impact based solely on per-kilogram increments. While PKA's micro-level calculation may appear negligible, he said it overlooks the broader and more significant issue, such as the cumulative cost burden placed on Malaysian exporters, importers and manufacturers. "PKA's analysis fails to acknowledge that logistics costs are already among the highest contributors to the cost of doing business in Malaysia. "The impact of a 30 per percent increase in container handling charges and a 200–243 per cent hike in storage charges cannot be minimised by simplistic per-unit cost metrics. "FMM reiterates that the evaluation of port tariff adjustments must be done holistically, accounting for their multiplier effect across the supply chain and national economy," he said. In addition, Soh said FMM reiterates that claims of "modest" increases are not supported by the quantum of the adjustments, which are among the steepest seen in recent memory. Without detailed, he said, transparent cost justifications, these increases will be viewed as revenue maximisation at the expense of trade facilitation. "Maintaining investor confidence and trade momentum requires a holistic approach where competitiveness is grounded in predictable pricing, stakeholder consultation and a transparent cost-recovery framework. "FMM urges the authorities to defer the hike and engage the industry in reassessing a sustainable, accountable tariff structure aligned with national economic goals," he added.
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Raise stamp duty exemption threshold for job contracts, says FMM
FMM president Soh Thian Lai has urged the government to raise the stamp duty exemption threshold for employment contracts from the current RM300 to RM10,000. (Bernama pic) PETALING JAYA : The Federation of Malaysian Manufacturing (FMM) has called on the government to revise the Stamp Act 1949 to better reflect current economic conditions and industry standards. FMM president Soh Thian Lai urged the government to raise the stamp duty exemption threshold for employment contracts from the current RM300 to RM10,000. 'This aligns with today's salary levels and industry practices,' Soh said in a statement. He also called for a comprehensive review of how employment contracts and appointment letters are classified under the law, questioning their status as instruments subject to stamp duty. Under the First Schedule of the Stamp Act 1949, certain types of documents — including employment-related contracts — are subject to stamp duty, unless specifically exempted. Soh welcomed the government's recent decision to exempt stamp duty for employment contracts signed before Jan 1, 2025, and supported the waiver of penalties for non-compliance this year— provided contracts are stamped by Dec 31, 2025. He described the government's move to delay full enforcement until Jan 1, 2026 as 'a pragmatic decision' that allows businesses time to adjust. 'This transition period also gives the finance ministry time to update the regulations without applying them retroactively,' he said.
The Sun
6 days ago
- Business
- The Sun
FMM strongly objects to Port Klang's tariff hike, warns of hit to export competitiveness
PETALING JAYA: The Federation of Malaysian Manufacturing (FMM) has expressed its strong objection to the impending tariff increase at Port Klang, which was approved by the Ministry of Transport (MoT) and officially gazetted on Friday. The association said these cost increases come at a time when industries are already under immense pressure from global trade disruptions and significant domestic policy shifts. It noted that the new tariff increase place a severe burden on Malaysian manufacturers and further weaken the nation's export competitiveness while eroding Malaysia's position as a preferred regional trade and logistics hub. To note, the overall tariff revision at Port Klang, amounting to a 30% increase, will be implemented in three phases, with the first phase taking effect on July 1. Among the key changes that will heavily impact importers and exporters are a 30% hike in container handling charges and a steep escalation in container storage charges, which are set to rise by between 197% and 243%. FMM president Tan Sri Soh Thian Lai said while the association notes MoT's decision to stagger the port tariff increase over three phases following engagement with FMM and the Malaysian National Shippers' Council, FMM maintains that the timing remains deeply concerning. 'The sharp initial escalation beginning July 1, 2025 poses immediate and damaging consequences to the cost structures of exporters and importers alike. 'This comes at a time when industries are already contending with unresolved external shocks, including the ongoing US tariff threats on Malaysian exports, the expansion of the Sales and Service Tax (SST), and a scheduled restructuring of electricity tariffs. 'The convergence of these cost pressures will deliver a heavy blow to manufacturers and exporters at a critical juncture in Malaysia's economic recovery, further eroding the country's export competitiveness,' Soh said in a statement. Under the newly gazetted tariff structure by the Port Klang Authority, container handling charges for a 20-foot container will increase by 30% in total, implemented over three phases. The current rate of RM300 will eventually rise to RM390, with an estimated RM90 added per container upon full implementation. Given that Port Klang handles about 12.5 million TEUs annually, the full increase could translate to an additional RM1.125 billion in annual costs to industry once all phases are in effect. Soh noted that Malaysian ports have traditionally enjoyed a competitive edge due to reasonable cost structures. 'However, with the new rates, container handling fees will approach US$120–130 (RM509-552) per TEU, similar to rates in Singapore and Hong Kong, but well above Asean neighbours such as Vietnam, Indonesia, and Thailand. 'This will erode Malaysia's value proposition and increase the risk of cargo diversion to competing regional ports. 'Furthermore, Malaysia's drop to 34th in the IMD World Competitiveness Ranking and its current standing at 26th in the World Bank's Logistics Performance Index highlight the urgency of containing cost escalations. 'This tariff hike sends the wrong signal to investors and could significantly disrupt trade flow and business planning at a time when manufacturers are already struggling with margin pressures, high logistics costs, and global uncertainty,' Soh said. FMM said the government must take a holistic view of the cascading cost impacts on Malaysian businesses and consumers. 'Port tariffs, SST expansion, electricity hikes and international trade headwinds must be evaluated together. No single ministry or agency can make isolated decisions without assessing the full burden being placed on industry,' Soh said. FMM called for an immediate pause in the implementation of the port tariff increase, electricity base tariff revision and expanded SST scope. 'We urge the government to reconvene with industry stakeholders to reassess the economic and operational consequences and align all measures under a coordinated national cost impact strategy. If these measures proceed as scheduled, July 1, 2025 will mark a critical inflection point for Malaysian industry. 'A combination of port tariff hikes, new SST taxes, electricity cost increases, and global tariff threats will crash down on businesses, overwhelming their ability to remain competitive and sustainable. These cost increases will eventually translate into higher prices for consumers and a slowdown in manufacturing investment and job creation,' Soh said. FMM stands ready to work with the government to realign policy implementation timelines, ensure transparency in cost justifications, and develop a coordinated national strategy to support industry growth and protect the welfare of consumers.
