MARGMA Seeks Export Cess Cut, Enhanced Tax, Labour Policies in Budget 2027
KUALA LUMPUR, 5 October 2026 – The Malaysian Rubber Glove Manufacturers Association (MARGMA) has called on the government to review the existing export cess, introduce stronger investment and tax incentives, and enhance labour policies under Budget 2027 to strengthen the competitiveness and long-term sustainability of Malaysia’s rubber glove manufacturing industry.
MARGMA President, Mr. Oon Kim Hung, emphasised that these proposals aim to address rising operational costs, encourage continued investment and innovation, support workforce transformation and safeguard Malaysia’s position as a leading global hub for rubber glove manufacturing and exports.
Review of Export Cess and Energy Costs
Among MARGMA’s key recommendations is the removal or substantial reduction of the existing 0.2% export cess, alongside a periodic review mechanism that considers prevailing industry conditions and manufacturers’ cist burdens.
The Association also proposed a more flexible and competitive energy-cost framework, particularly for natural gas and electricity. This includes reviewing natural gas reserved capacity and take-or-pay arrangements, as well as ensuring greater transparency and predictability in future electricity tariff revisions.
Enhance Tax Incentives and Innovation Support
MARGMA highlighted the importance of introducing enhanced tax incentives for Malaysian manufacturers commercialising locally developed research and development (R&D) outcomes.
The proposed incentives would support pilot production, product testing and certification, technology deployment, specialised machinery and the transition from R&D to commercial production.
Additional support through matching grants and co-funding was also recommended for high-impact projects involving advanced materials, specialty gloves, sustainable manufacturing, automation, artificial intelligence (AI) and process innovation.
Workforce Development and Labour Policy Improvements
Recognising the industry’s ongoing transformation, MARGMA proposed targeted skills-development incentives to support manufacturers adopting automation and digital technologies.
These include enhance tax deductions for technical and digital training, matching grants for employee reskilling programmes and stronger collaborations between industry players, universities and Technical and Vocational Education and Training (TVET) institutions.
Strengthening Long-Term Investment
To encourage sustainable industrial growth, MARGMA recommended extending the Green Investment Tax Allowance (GITA) beyond 31 December 2026 and providing greater flexibility for investment projects implemented over multiple years.
Other proposed measures include enhance reinvestment allowances, accelerated capital allowances, automation grants and broader recognition of qualifying expenditures for smart manufacturing systems, digitalisation, AI and Industry 4.0 technologies.
These recommendations underscore MARGMA’s continued commitment to advocating policies that strengthen Malaysia’s rubber glove industry’s competitiveness, encourage technological advancement and support sustainable growth.