Kuala Lumpur:The Malaysian Rubber Glove Manufacturers Association (MARGMA) has urged the government to consider revising several policies, including the reduction or removal of the export cess, as part of Budget 2027.

According to BERNAMA News Agency, MARGMA President Oon Kim Hung highlighted that these proposed changes aim to bolster the industry's cost competitiveness and encourage investment and innovation. The association is also seeking improvements in tax and labor policies to maintain Malaysia's position as a leading global hub for rubber glove manufacturing.

Oon specifically called for the reduction of the current 0.2 percent export cess, suggesting that if its complete removal is not feasible, a substantial reduction should be considered. He also proposed a periodic review mechanism based on industry conditions and competitiveness. Additionally, Oon emphasized the need for a more flexible energy-cost framework for natural gas and electricity to remain internationally competitive.

MARGMA also advocates for enhanced tax incentives for Malaysian manufacturers who commercialize locally developed research and development outcomes. These incentives would cover various stages from pilot production to technology deployment. Oon suggested that these could be complemented by grants for high-impact projects in areas such as advanced materials and sustainable manufacturing.

On labor policies, Oon recommended establishing a predictable foreign-worker framework, allowing companies to apply based on verified manpower needs. He also suggested a quicker approval process for employers with strong compliance records.

Furthermore, Oon proposed extending the Green Investment Tax Allowance (GITA) and introducing a multi-year investment framework. This framework would include measures like enhanced reinvestment allowances and automation grants, allowing projects to be undertaken over a realistic timeframe.

Prime Minister Datuk Seri Anwar Ibrahim is expected to present Budget 2027 on October 9.