KUALA LUMPUR: Household electrical appliance maker Pensonic Holdings Bhd is advocating for key government initiatives in the 2025 Budget to support local manufacturers and boost their global competitiveness.
The company highlighted the need for capital expenditure (capex) grants and tax incentives to help local manufacturers adopt advanced technologies like artificial intelligence (AI) and automation systems.
Pensonic also calls for the introduction of special tax rates or rebates to give Malaysian manufacturers a competitive edge over international counterparts and increase local production.
In addition, the company urges the government to introduce a special accelerated capital allowance (ACA) for machinery used in electrical product manufacturing, similar to existing allowances for ICT equipment.
This would incentivise manufacturers to invest in productivity-enhancing machinery by allowing faster write-offs for these investments, it said in a statement.
Pensonic further proposes the creation of state-backed investment funds to support Malaysian manufacturers in global markets by providing financial backing and resources.
It said that this ecosystem-building approach should also include upskilling programs, infrastructure development, and access to global distribution networks.
The company stresses the importance of digital transformation, advocating for tax rebates or deductions on digital marketing expenses to help local brands grow their online presence and tap into global e-commerce markets.
Additionally, Pensonic recommends lowering export customs rates and expanding tax deductions for all stages of the export process to make Malaysian products more competitive internationally.
"This would make Malaysian products more competitive and accessible on the global stage," the company said.