Budget 2027 To Drive M&E Industry Towards Higher-value Activities, Enhance Competitiveness -- MEIF
By Danni Haizal Danial Donald
KUALA LUMPUR, Oct 15 (Bernama) -- Budget 2027 is expected to support the machinery and engineering (M&E) industry’s transition towards higher-value activities while enhancing its competitiveness, said the Machinery and Engineering Industries Federation (MEIF).
Its president, Mac Ngan Boon, said the support includes extended accelerated capital allowances for qualifying machinery and technology, proposed sales tax refunds on certain industrial purchases, reduced corporate tax rates for qualifying micro, small and medium enterprises (MSMEs), as well as expanded financing and guarantee facilities.
He said the M&E industry occupies a pivotal position in Budget 2027, as its companies invest in equipment, technology and skills to remain competitive, while simultaneously manufacturing, integrating, supplying and maintaining the systems that enable other industries to modernise.
“This has placed M&E on both the demand and supply sides of industrial transformation, with developments in one frequently creating opportunities in the other.
“Its interconnected role becomes increasingly significant as Malaysia pursues higher-value manufacturing, semiconductor development, energy transition and more sophisticated industrial activities,” Mac told Bernama in a statement today.
He also highlighted that the industrial investment incentives announced in Budget 2027 could generate value across the wider production ecosystem, while support for equipment modernisation could stimulate demand for domestic machinery builders, suppliers and engineering service providers.
“Expanded financing facilities also could contribute more effectively to industrial growth when their structures accommodate investment cycles, contractual obligations and business risks.
“Export support can extend these (M&E) capabilities into new markets through technical qualification, customer development and reliable after-sales services,” said Mac.
He added that Budget 2027 offers several complementary measures, with their overall impact depending on how effectively companies access, coordinate and implement them.
“For companies, the immediate task is to identify a business priority, establish the capability required and determine which available measures can support the investment.
“For policymakers and implementing agencies, the opportunity is to strengthen the connections between financial support, industrial needs and measurable business outcomes,” said Mac.
-- BERNAMA