James Ha
KUCHING: Sabah’s overall manufacturing sector continued its weak streak from last year into the first half of 2021 (1H21), based on findings from the Federation of Malaysian Manufacturers (FMM) Sabah’s latest survey.
Resurgence of the Covid-19 cases in early of 2021 pose challenges to the recovering process of businesses activities and manufacturers are equally cautious on their business outlook for 1H21.
Based on the survey, most manufacturers experienced up to 50 per cent drop in production, revenues and orders in 2H2020 but optimistic that business activity to pick up slightly in all three categories in 1H21.
Almost half (43 per cent) of respondents anticipate to face shortage of cash flow in 1H21 and cost production is expected to trend up as 32 per cent of respondents said shortage of raw materials supplies to sustain business activity in 1H21.
“Majority or 55 per cent of respondents have used either the SOCSO MYFutureJobs portal or PENJANA Kerjaya Programme. However, only 34 per cent claims to have benefited from this programme,” commented FMM Sabah chairman James Ha in a statement accompanying the survey findings.
“Meanwhile, 70 per cent of respondents are planning to retain current number of workers whilst only 17 per cent of the companies are willing to take new workers mainly in the operations, sales and marketing categories during the period.”
Looking forward, Ha noted that more than half or 54 per cent of respondents hope that the Sabah Economic Advisory Council will help to promote and protect Sabah made products to local consumers and state government.
“Findings of the quick survey showed that 55 per cent of the respondents wants the council to play important role in promoting and protecting Sabah made products to local consumers and government procurement.
“81 per cent agreed that Covid-19 vaccination should be made compulsory to all employees,” he said.
Similarly, Ha added the Council should give equal treatment and attention to domestic investment besides attracting foreign investment into the state.
“As for issues in KKIP, high quit rent is the top most critical issue with 77 per cent of respondents located in KKIP, followed by poor road maintenance and unstable internet connection.
The Sabah Budget was tabled last year and the state government has allocated RM142.85 million for the development of the industrial and trade sectors to implement various programmes and projects.
Some suggestions received include allowing the pioneer status incentives for companies willing to invest between 2021-2022 especially companies that are investing in IT and automation.
Survey respondents also called for attractive prices for local investors who are interested to invest in KKIP, abolish the 30 years leasing, as well as offer special financial assistance to micro SMEs/SMIs affected by the pandemic.