|
15th January, 2009
KOTA KINABALU: The President of the Federation of Sabah Manufacturers (FSM), Datuk Wong Khen Thau yesterday urged consumers in Sabah to support local products as a defence and buffer against the negative effects of the global economic slowdown.
“By supporting made-in-Sabah products, we are helping to keep jobs and prevent retrenchment from happening,” he said in an interview with New Sabah Times at his office here.
“With the global economic crisis hitting developed countries triggered by the US subprime mortgage fiasco, there is a window of opportunity for Sabah to emerge unscathed or with minimum impact. This is possible provided all the stakeholders work closely together,” he said.
Wong asserted that there was no better way to stimulate the local economy than to buy Made-in-Sabah products as each ringgit spent will have a multiplier effect on the money in circulation, he added.
“With a population of two million, if one spends RM10 a day, there will be RM20 million in the Sabah economy in a particular day,” he said. This will help local industries perform better and create jobs for the people.
He said FSM would maximize its resources including its own building, due to be ready by early March, to showcase Made-in-Sabah products and spur local manufacturers to greater heights in terms of competitive pricing, quality and promotions.
Wong praised both the state and federal governments for working closely with the private sector by providing various incentives in the form of tax rebates, facilities and assistance in product promotions both locally and internationally.
“The state government is emphasizing local content in infrastructure development, especially building materials. Towards this end, FSM has set up a body to study government requirements and specifications,” he said.
Wong called on the federal government to look into reducing the cost of doing business in Sabah. He wanted the shipping of cargoes to be liberalized as the current Cabotage policy did not protect the interests of the consumers.
“Whilst the Cabotage policy is meant to protect the local shipping industry, it leaves the consumers in Sabah at the mercy of the shipping cartel,” he added. By opening this up to competition, he believed that costs could be considerably lowered.
On downstream activities, Wong expressed disappointment with giant oil palm plantations which, according to him, had failed to reinvest their profits in the setting up oleochemical, fertilizer, and feedmill plants in Sabah.
There is a need to add value to raw commodities for jobs and wealth creation, he stressed.
Nevertheless, FSM was pleased that Bank Negara was encouraging banks to give loans to small and medium enterprises (SMEs). “Although banks are more cautious and stringent in their lending policies as viability of the business has to be taken into consideration, there is not much of contraction of loans,” Datuk Wong noted.
|
