FMM Congratulates the New Cabinet Line-Up and Look Forward to Continued Government and Industry Collaboration

Kuala Lumpur, December 17, 2025 - The Federation of Malaysian Manufacturing (FMM) congratulates the newly appointed Cabinet Ministers and Deputy Ministers following the Cabinet line-up announced on December 16, 2025. FMM will continue to give its fullest support and cooperation to the new Cabinet Ministers and their respective Ministries in advancing effective policy implementation and constructive engagement with industry. This is particularly important as businesses continue to navigate a challenging global environment marked by heightened uncertainties and rising cost pressures.

FMM looks forward to policy continuity and stability that provide businesses and investors with the confidence to plan and invest over the long term. Consistent implementation of existing policies, clear communication, and coordinated execution across Ministries remain critical in sustaining investor confidence both domestically and internationally. In this context, a competitive and predictable tax environment is essential to support reinvestment, industry upgrading and the broader transformation of the manufacturing sector.

In this context, there is a need to focus on lowering the overall cost of doing business, particularly in light of the cost pressures currently faced by industry. Addressing energy, logistics and regulatory compliance costs together with a careful assessment of the impact of the recent expansion of the sales and service tax, is important as these directly affect operating costs and cash flow especially for manufacturers and SMEs. Improvements to the business environment through clearer regulations, more efficient approval processes and stronger inter agency coordination will further enhance ease of doing business and operational efficiency.

Policies and regulatory measures affecting industry should continue to be guided by the principles of Credibility, Clarity, Consistency, and Certainty. This requires policies to be simple, transparent, reliable and fair with strong emphasis on integrity, efficient service delivery and measurable outcomes that allow both Government and industry to assess effectiveness.

FMM views the Government Service Efficiency Commitment Act 2025 (ILTIZAM Act) which came into force on December 1, 2025, as a positive step towards strengthening service efficiency and regulatory discipline across the public sector. The Act’s focus on reviewing regulatory instruments and reducing regulatory burden provides a framework for more streamlined and accountable regulation. Its success, however, will depend on consistent implementation, transparent performance measurement and outcomes that translate into tangible improvements for businesses on the ground.

FMM reaffirms its readiness to work in partnership with the Government in advancing policies that support a competitive, resilient and future ready manufacturing sector. With clear and consistent policies, and a continued focus on cost competitiveness and service efficiency, FMM believes that close collaboration between Government and industry will be critical in supporting sustainable growth and strengthening business and investor confidence.

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