President Tan Sri Soh Thian Lai of the Federation of Malaysian Manufacturers (FMM) warned that such pressures could force some companies, especially those in cost-sensitive sectors like electrical machinery services (EMS), which supports US-linked manufacturing operations in Malaysia, to scale back operations.

Malaysia’s Ministry of Investment, Trade, and Industry (MITI), in partnership with the Malaysian Investment Development Authority (MIDA) and SIRIM Bhd, is developing a star rating system for industrial parks (IP).

The Federation of Malaysian Manufacturers (FMM) has urged the government of Malaysia to expedite the ratification process for the two major free trade agreements (FTAs) — the Regional Comprehensive Partnership Agreement (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — soon to help local manufacturers or exporters to recover faster during the post-pandemic era.

The Federation of Malaysian Manufacturers (FMM) said the freshly-signed trans-Pacific trade deal will give Malaysia a competitive edge in the region and build investor confidence.

Malaysia is facing a shortage of manpower, two months after implementing a Government decision to suspend the recruitment of foreign workers.