Reintroduced reinvestment allowance for rubber glove sector: Margma

KUALA LUMPUR: The Malaysian Rubber Glove Industry has submitted its 2019 Budget proposal for the extension and expansion of the reinvestment allowance to the industry.

The rubber glove industry has no longer been given reinvestment allowance as it is deemed a matured industry.

Margma said such allowance was important for Malaysian glove manufacturers to continue to reinvest huge capital to expand and build modern and automated factories in order to stay ahead as the world leader.

In justifying the proposal, Margma said the local industry had completed its first phase of rapid growth in production capacity and had helped positioned Malaysia as the world’s leader in rubber gloves manufacturing.

“The Malaysian rubber glove industry is now in the second phase of growth where companies compete in terms of product innovation and production technology. Heavy investments are required for this phase of growth to maintain our competitive advantage.”

It added that as competitors in neighbouring countries were catching up fast, the reinvestment allowance is crucial for Malaysia to maintain its leading position in the next five years.

Source: NST