FMM applauds Sabah Budget 2020 transformative initiatives

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FMM Sabah commend the government’s actions to strengthen the local workforce with an increased allocation to RM267.43 million from RM238.37 million in 2019 for human capital development. — Bernama photo

KUCHING: The Federation of Malaysian Manufacturers (FMM) Sabah commends the state government for the positive people’s budget with its focus on accelerating the downstream economic activities, attracting more investments, strengthening the human capital development and infrastructure development.

In a statement yesterday, the federation lauded the many incentives and programmes laid out towards the development of downstream economy activities, human capital, exploring new agricultural potential, SMEs development, enhancement of innovation activities and the overall ease of doing business which are essential to restructuring the economy to be more progressive, knowledge-based and high-valued.

The state government has allocated RM146.79 million for the development of industrial and trade sectors next year. More focus will be given to encourage investment in opportunities in higher value-added downstream activities, particularly in oil and gas, wood based, palm oil and agricultural sectors.

“At the same time, continuous efforts to enhance competitiveness of existing industrial parks to attract more investment by creating Free Economic Zone, develop Aerospace and Autocity Industry, rebranding of POIC Sandakan to Sandakan Furniture Hub and POIC Lahad Datu as Legal Landing Place and Tender Port are seen as a wise move.”

“These eventually will reflect back on the creation of new job opportunities in the state.

“The plan to draft new state industrial policy in respond to the new development in Kalimantan and shipping logistics hub at Lombok Strait Makassar, Indonesia is a timely decision and FMM Sabah hopes that the industry will be consulted for inputs in the policy formulation.

“However, the setting up of new institution that focus on promoting investment opportunities in the State should be studied carefully to avoid redundancy.

FMM Sabah commend the government’s actions to strengthen the local workforce with an increased allocation to RM267.43 million from RM238.37 million in 2019 for human capital development.

In addition, allocation of RM23.06 million given to the Human Resources Development Department (JPSM) to implement Human Capital Development Blueprint for Sabah, 2021-2035 with aims to identify gaps between employment supply and demand from various industries, construct new Technical and Commercial Training Institute (ILTP) campus in Mesilou, Kundasang, Ranau, providing further studies to enhance trainees’ skills and knowledge to meet the industry’s needs are also welcomed. FMM Sabah hopes the state government will continue to consult the industry for feedback on the human capital needs.

FMM Sabah applauds the state government for its continuous effort towards the development of SME by raising the allocation to RM40.0million. The increased in allocation means more SMEs have the opportunities to participate in the entrepreneurship programmes as such the One District One Small Industry and skills enhancement courses.

Meanwhile, it helps to spur the creation of more young graduate entrepreneurs and youth businesses under the Youth Entrepreneurship Scheme, Rural Entrepreneurs Development Programme and KIKSTART course.

FMM Sabah wants the state government to encourage locals to consume more of quality Made-in-Sabah products in mega-projects as it can bring about multiplier benefits to the state economy.

FMM Sabah believes that local products are as good quality with the Peninsular or imported products. Likewise, the state government can direct all its ministries to prioritise Sabah made products.

This in turn, will help to boost the manufacturing industry in the state and create more job opportunities for locals.