Problems relating to Trade and Investment on Malaysia
26. Others |
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Issue |
Issue details |
Requests |
Reference |
| (1) Inadequate Broad Band Environment | - Improvement in the foundation for IT, telecommunications and broadcasting is indispensable for achieving a higher efficiency in business operation. Overhaul in the broadband environment is an absolute necessity. Digital broadcasting will enhance international competitive edge of the related industries. Early commencement of the digital broadcasting programme is an imperative necessity. | - It is requested that GOM overhauls the broadband environment that satisfies the business needs. | |
| (2) Hike in Electricity Charge for Commercial/ Industrial Use | - GOM officially announced hike in electricity charge by 15% (effective from January 2014). While this is a part of the measures that accompany reduction in government subsidy, the 15% hike is a large blow to enterprises consuming much power. In the case of MFS, it means the cost hike to the tune of RM2.4 million (or about 75 million in Japanese yen), an element aggravating its P/L picture. - Hike in electric power charge. |
- It is requested that GOM gives advance notice with sufficient lead-time to enable users' preparation for timely budgetary readjustment. - It is requested that GOM abolishes restrictions on entry into Power Supply Industries. - Relative to tax incentive on investment into energy saving, eco-tax (reduction) was terminated in November 2013. In the face of power charge hike, it is requested that GOM takes steps to consider provision of incentive that facilitates each factory's investment into energy saving. |
- Notification of Ministry of Energy, Green Technology and Water, Malaysia (KeTTHA). - Electricity Supply Act |
| (Action) - Since 1 May 2014, prices of industrial gas have been raised to 26.6% maximum. |
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| (3) Sudden Change/ Addition of National Holidays | - From time to time sudden abrupt changes take place in national holidays. GOM willy-nilly enforces the change, ignoring the severe impact upon private business sectors, (very much likely, due to political influence). - By GOM announcement, the change has taken place on public holidays in Johor State from Saturdays and Sundays to Fridays and Saturdays. While majority of enterprises and commercial-financial institutions would not observe the change, there is much concern that production and commercial activities will be affected. For example, no customs clearance is possible on Fridays. |
- It is requested that GOM gives a sufficient lead-time in making changes in national holidays. - It is requested that GOM reverts to the calendar in which Saturdays and Sundays are holidays. |
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| (4) Water Shortage Problems | - Water supply stoppage has been frequent due to the plumbing damage on the public road, however, since 2014, due to abnormal weather, water outage has arisen. Past record of water outage: -- 2012-13:, water outage: 8 times. -- 2014: water outage due to the same reason as above: once water outage due to drop in the dam water level: 13-times (Maximum 1.5-days) |
- It is requested that GOM takes step to overhauls the infrastructure lest the issues described in the left column does not occur. | - Lembaga Urus Air Selangor (Water Department) http://www.luas.gov.my/ |
| (5) Non Payment/ Payment Delays | - MFS is faced with collection problems with its customers: delays, difficulty in collection in its transactions, from differences in business custom, code of ethics, power balance, etc. While MFS deals on pre-payment principles, on short term business (smartphone parts manufacturing business, etc.), the highest priority falls on delivery and price, even the successful collection of accounts receivable has been achieved, the payment delays squeeze the profit. | - It is requested that GOM supports Small-to-Medium enterprises (SMEs) by providing information and warrants the collection risk. | |
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