03/09/2024

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TUESDAY | SEP 3, 2024

Malaysian manufacturers upbeat on H2’24 prospects o FMM: Sector churns out growth in first half of the year despite challenges at home and abroad Ű BY JOHN GILBERT sunbiz@thesundaily.com

required to remove cancelled flights from all booking platforms immediately,“ she said. Pushpalatha noted that Mavcom had previously made cost-related improvements in 2019, and this is the second round of enhancements since the MACPC was introduced in 2016. “Before these latest enhancements, we held five consultation sessions with industry players and the public before finalising the changes. The MACPC applies in the event of flight disruptions in Malaysia involving all airlines, including foreign airlines operating in and out of the country,“ she said. - by AIMIE SHAZRIE KUALA LUMPUR: The Kuala Lumpur Convention Centre precinct (KLCC precinct) aims to establish itself as a global Sustainable Development Goal (SDG) hub, in both leisure and business, said KLCC Holdings Sdn Bhd (KLCCH) group CEO Datuk Md Shah Mahmood. He said KLCCH continues to advance its commitment to creating vibrant, inclusive, and sustainable urban ecosystems, and encouraged people to participate in all activities that can make a positive impact on communities and the environment. “Anchored by our dedication to innovation, community engagement, and responsible development, KLCCH remains steadfast in its mission to cultivate thriving urban landscapes that mirror the aspirations of a dynamic nation on the global stage,” he said at the launch of Sustainable September 2024 yesterday. KLCCH announced its annual campaign, Sustainable September 2024, with a focus on enhancing community engagement, promoting healthy living and fostering deeper colla boration. Underpinned by the four pillars of people, planet, peace, and prosperity, the campaign involves seven interconnected United Nations SDGs. The second edition’s theme is “Healthy Planet, Healthy You”. A nature conservation effort to restore coastal mangrove ecosystems in collaboration with the Selangor Maritime Gateway project, spearheaded by the Selangor state government, was also launched in conjunction with the campaign. By conserving these ecosystems, Md Shah said, they aim to build a sense of community, teamwork and educational opportunities for volunteers. He added that the campaign demonstrates their commitment to the KLCC Sustainability Plan 2030 and the UN’s SDGs. “Driving awareness towards sustainability is an ongoing effort and requires the dedication and commitment of various communities. We value the collaboration with the KLCC Business Events Alliance alongside our subsidiaries – KLCC, Suria KLCC, Mandarin Oriental Kuala Lumpur, Impiana Hotel, Traders Hotel Kuala Lumpur – and our partners, DoubleTree by Hilton and Everly Hotel in Putrajaya.” Furthermore, Md Shah said, KLCCH has redefined the art of city planning, highlighting urban symphony as modernity intertwined with cultural heritage. KLCC precinct aims to become global SDG hub for leisure, business Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia’s manufacturing sector delivered rowth in the first half of 2024 (H1’24) despite facing headwinds, inflationary pressure, volatile demand and global un certainties. Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said local manufacturers are optimistic and confident about growth in the second half of the year. Local manufacturers are confident that Malaysia’s economic direction is on the right path and they have expressed confidence in the country’s foreign direct investment and domestic direct investment climate, he said at a media briefing yesterday on the FMM Business Conditions Survey First-Half 2024. The survey showed that Malaysian manufacturers have maintained production volumes, increased capacity utilisation, strategically managed costs and kept employment levels stable. These outcomes suggest that local manufacturers are not merely responding to external pressures but are actively positioning themselves to shape their future in a competitive global landscape. The survey also showed that manufacturers have a mixed outlook for revenue growth in 2024, showing optimism and caution due to economic challenges. Half of the respondents expect their revenue to grow, supported by a recovering global economy and strong domestic demand. However, 21% think their revenue will stay the same, and 29% expect it to drop, likely due to rising operational costs, ongoing inflation, and global economic uncertainties. Notably, 9% of those surveyed anticipate significant revenue declines, especially in sectors reliant on exports or those already facing difficulties. Looking ahead to the second half of 2024, FMM said the manufacturing sector is poised for continued growth, bolstered by a global economic recovery and supportive domestic policies. It said key metrics, including business activity and production volumes, indicate robust momentum, and manufacturers are gearing up to meet domestic and international rising demand. However, the sector remains cognisant of increasing production costs and is taking a measured approach to workforce expansion. On minimum wage, the FMM survey KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) does not anticipate the changes made to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) will result in higher airfares. Mavcom consumer and public affairs director Pushpalatha Subramaniam does not foresee these improvements leading to significant costs for airlines. “However, if there are many disruptions, there will undoubtedly be increased costs, so airlines need to manage this effectively. “We monitor the prices of all domestic flight tickets and present this information to the transport minister every month,“ she said at a

Soh (fifth from left) and other FMM board members at the media briefing on FMM Business Conditions Survey First-Half 2024 yesterday.

showed that a majority of respondents (57%) support an increase to RM1,600, reflecting a consensus that a modest rise is manageable and aligns with current economic conditions. However, support for higher increases is limited, with only 14% and 13% favouring hikes to RM1,700 and RM1,800, respectively, due to concerns about rising operational costs and competitiveness. The survey showed that the top five challenges to business operations and growth in H2’24 will be weak demand, rising input costs, ringgit depreciation, increasing competition, expansion of the customer base, and geopolitical risks. Touching on the ringgit, Soh said the continued strengthening of the local currency would help manufacturers reduce operation costs and increase margin spread. On how the ringgit appreciation would affect businesses, a significant portion of respondents (47%) view the ringgit appreciation positively, which could imply that these businesses benefit from stronger domestic purchasing power or reduced import costs. Some 36% anticipate a negative impact, possibly due to reduced export competitiveness or other factors like higher ringgit costs for businesses relying on export sales. The 17% howed that a majority of respon t an i e to RM1600 media briefing on the MACPC enhancements at Mavcom’s headquarters here yesterday. Transport Minister Anthony Loke announced the enhancements to the MACPC on Aug 28, which were gazetted yesterday. Among the improvements are require ments that airlines offer refund options if a flight is delayed by more than five hours and the passenger opts not to continue the journey. The refund needs to be processed within 30 days. Pushpalatha said that within 30 days, airlines are urged to resolve 90% of the complaints received. She clarified that starting yesterday, airlines

who foresee no impact are involved in less sensitive sectors to currency fluctuations. Touching on government procurement, most respondents (88%) reported not supplying to the government, indicating barriers to entry or challenges in the procurement process. Only 12% are involved, suggesting government contracts are highly competitive or inaccessible. The main obstacles identified are a need for more transparency (34%), too much paperwork (23%), complicated government procurement processes (20%), and competition from traders and foreign suppliers (20%). To improve the system, 48% of the respondents suggest having a unified procurement policy with strict enforcement, 45% recommend creating a database of local manufacturers, 44% think using e procurement platforms would help, and 31% support protecting whistleblowers. On Budget 2025, 32% of respondents prioritise reducing corporate tax rates, highlighting the importance of maintaining Malaysia’s competitiveness in attracting foreign investment. Expanding tax incentives (16%) is also crucial for stimulating growth, especially in key sectors such as technology, manufacturing and green energy. must offer refunds in the original form of payment as the first option to passengers. “This applies in flight disruptions due to bad weather, safety risks, or other unavoidable factors. Before this amendment, airlines were not required to refund passengers,“ she said. According to Pushpalatha, the amendment also mandates airlines to adjust flight schedules within two weeks of the departure date, except in extraordinary circumstances or due to technical reasons. “Additionally, passengers will now enjoy extra protection, such as mandatory refunds for fuel surcharges, charges, and fees unrelated to non-refundable tickets. Airlines are also

Mavcom does not expect code enhancements to lead to higher airfares