The government is exploring initiatives to encourage food and beverage (F&B) business operators to venture into other industries including manufacturing.
Economy Minister Rafizi Ramli said the effort will be carried out with relevant ministries, particularly in encouraging micro, small and medium enterprises (MSMEs) to start exploring activities that can be used as ‘feeders’ or intermediaries.
“About 79% of MSMEs are F&B sector related micro enterprises and a means must be found to ensure that they start exploring activities in the production and manufacturing sectors,” he said during a question-and-answer session in the Dewan Rakyat, today (Oct 10).
He said this in response to an additional question from Datuk Seri Noraini Ahmad (BN-Parit Sulong) regarding the impact of the decline of China’s manufacturing hub on the PMKS sector in this country.
Rafizi said the decline in China’s manufacturing hub activity could provide a good opportunity for the country’s industry to attract investors and international industry players when they start taking steps to reduce the risk of exposure to geopolitical risks in the country.
He added, with good policies the government will be able to attract more industries to come to Malaysia.
Meanwhile, Rafizi said businesses conducting international trade needs to embark on green compliance as it will be implemented by the European Union and the United States to ensure their imported goods comply with the Carbon Border Adjustment Mechanism (CBAM).
According to him, when the global economic slowdown affects Malaysia’s trade performance, it is important for the country and industry to ensure that products and services meet the needs of trading partners. Thus, he said, the government has prepared the National Energy Transition Roadmap (NETR) as a guiding policy to ensure continued competitiveness for the manufacturing industry that trade, internationally.
“This is because when the world economy starts to pick up again in one or two years, we are ready to improve our compliance with international regulations and put us in a better position than our competitors,” said Rafizi.
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