MARGMA urges removal of export levy and stronger incentives in Malaysia's 2027 budget

The Malaysian Rubber Glove Manufacturers Association has lodged a set of recommendations ahead of the 2027 budget. Its leader, Oon Kim Hung, urged the removal or significant reduction of the 0.2% export cess, proposing a review mechanism tied to market conditions. He called for reforms to natural-gas and electricity tariffs, including more flexible take-or-pay arrangements and transparent tariff revisions.

The association also wants a dedicated tax incentive for manufacturers commercialising home-grown R&D, complemented by matching grants for high-impact projects such as advanced materials and AI. To support workforce upskilling, MARGMA proposes tax deductions for technical training and faster foreign-worker approvals for firms with proven compliance. Finally, it recommends extending the Green Investment Tax Allowance beyond Dec 31 2026 and creating a multi-year investment framework that rewards automation and digitalisation. These suggestions will be reviewed as Prime Minister Datuk Seri Anwar Ibrahim, who also serves as finance minister, prepares to table the budget on Oct 9.