FMM PRESS STATEMENT: FMM New Year Message to the Government – Looking Ahead Together

December 29, 2025

Head Office, KL

Kuala Lumpur, December 29, 2025 — As Malaysia ushers in 2026, the Federation of Malaysian Manufacturing (FMM) commends the Government’s continued stewardship of national economic priorities, including Malaysia’s successful ASEAN chairmanship and strong foreign direct investment performance. These accomplishments reinforce Malaysia’s strategic industrial positioning and align with the execution thrusts of both the New Industrial Master Plan (NIMP 2030) and Rancangan Malaysia Ke-13 (RMK-13) to drive high-value growth, innovation, and competitiveness.

As 2026 marks a pivotal delivery year under the NIMP and represents the transition from planning to implementation within RMK-13, FMM underscores that industrial development must increasingly emphasise disciplined execution, coherent policy delivery, and measurable outcomes at firm and sector levels. Building on positive momentum over the past year, FMM looks to continued policy focus, consistency, and effective implementation to ensure growth remains broad-based, sustainable, and inclusive of domestic manufacturers.

i. Strengthening Cost Competitiveness and a Predictable Business Environment

FMM calls on the Government to advance Malaysia’s cost competitiveness as a foundational enabler of investment retention, industrial upgrading, and long-term manufacturing expansion. This includes addressing operating and compliance costs, ensuring competitive and predictable energy pricing to support the energy transition, improving logistics and trade facilitation efficiency, and maintaining a stable, transparent, and internationally competitive tax environment. FMM also welcomes the full, consistent, and facilitative implementation of the ILTIZAM Act to enhance regulatory coherence, ease of doing business, and investor confidence as Malaysia competes for high-quality, long-term industrial investments under the NIMP and RMK-13 frameworks.

ii. Workforce, Foreign Workers Policy, and Digital Enablement to Support Productivity-Led Growth

FMM emphasises that the successful delivery of the NIMP and RMK-13 hinges on a skilled, productive, and adaptable workforce supported by clear, predictable, and workable labour and employment policies at the workplace level. This includes well-sequenced labour reforms with consistent enforcement, transparent labour governance, and a coherent, demand-driven foreign labour policy that supports business planning while facilitating Malaysia’s transition towards automation, higher productivity, and higher value-added employment. In parallel, FMM encourages the Government to further operationalise digitalisation, automation, and Industry 4.0 roadmaps into practical, accessible implementation support, particularly for SMEs, through simplified access to incentives, advisory support, and financing mechanisms to accelerate technology adoption, productivity growth, and workforce upskilling in line with RMK-13’s human capital and innovation goals.

iii. ESG, Net-Zero Transition, and Industrial R&D for Sustainable and Inclusive Industrial Development

FMM urges the Government to advance environmental, social and governance (ESG) integration, the net-zero transition, and industrial R&D as core enablers of Malaysia’s next phase of sustainable industrial development under both the NIMP and RMK-13. This includes deeper integration of capable local manufacturers, especially SMEs, into advanced and strategic value chains in priority sectors such as semiconductors, electrical & electronics (E&E), electric vehicles (EVs), aerospace, and the energy transition, to strengthen domestic value creation and resilience. FMM also calls for a strengthened industrial R&D ecosystem with faster and more predictable approval and co-funding mechanisms, deeper industry–academia collaboration, and a focus on commercialisation, scale-up, and measurable industrial outcomes to ensure innovation investments yield tangible productivity, sustainability, and competitiveness gains.

In conclusion, FMM emphasises that delivering on the NIMP and RMK-13 requires not only strong policy intent but disciplined execution, structured industry engagement, and a coordinated whole-of-government approach. FMM calls on the Government to anchor policy design and rollout on the principles of credibility, clarity, consistency, and certainty so that businesses have the confidence and visibility needed to plan, invest, develop talent, and upgrade capabilities in alignment with national industrial objectives. When policies under the NIMP and RMK-13 are predictable, consultative, and workable on the ground, manufacturers can focus greater resources on innovation, skills development, and productivity growth, thereby reinforcing Malaysia’s long-term competitiveness and supporting sustainable, inclusive economic growth.

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Mr Jacob Lee Chor Kok

President, Federation of Malaysian Manufacturing

FMM Advocates Transparency, Integrity, Accountability and No Corruption

About FMM

The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,300 member companies (4,200 direct and 9,100 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business networking and trade opportunities as well as regular information updates.

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