MANUFACTURERS TO MAINTAIN OUTPUT DESPITE TOUGH BUSINESS ENVIRONMENT

By Ravichandran D.J. Paul
SHAH ALAM (Bernama) - Malaysian manufacturers should be able to
maintain their output for the rest of the year notwithstanding major upheavals
in the foreign markets, says Federation of Malaysian Manufacturers (FMM)
president Tan Sri Mustafa Mansur.

However, during the first quarter of 2011 the Industrial Production Index
(IPI) for manufacturing stood at six per cent, a slight decline from 6.6 per
cent in the last quarter of 2010.

The drop in the IPI is contributed by the decline in E&E; transport
equipment; wood products; furniture paper; and printing sector; due to weak
demand for the products from these sectors.

Nonetheless, many manufacturers have successfully mitigated the tough
business environment by emphasising greater automation that not only reduced
the dependence on foreign labour but also enhanced productivity and efficient
use of resources.

Mustafa said this to Bernama when met after the CEO Dialogue with FMM
President and Past-Presidents here today that dwelt into current issues
affecting the manufacturing sector, Pemudah's achievements and fighting
corruption in the private sector.

Pemudah is a high-powered task force established by the government to
address bureaucratic issues in business dealings.

The tough business environment also calls for labour-intensive
manufacturers to shift their operations to countries where the labour cost is
cheaper and they can maintain Malaysia for marketing and research and
development.

He said Malaysian manufacturers should also venture into the fast-emerging
Africa and reduce their dependence on traditional markets like the
United States and Europe beset with economic woes.

The FMM has sent a number of delegations to Africa to look into
opportunities available for Malaysian manufacturers with countries like South
Africa and Tanzania on top of the list.

During the recent Langkawi International Dialogue in Putrajaya, Prime
Minister Datuk Seri Najib Tun Razak suggested Malaysian carriers to establish
air links with the continent and tap its business potential.

Apart from better air linkages with the continent as suggested by Najib,
Mustafa also hoped sea links too be enhanced to facilitate trade and investment
with the resource-rich continent.