FEDERATION OF MALAYSIAN MANUFACTURERS' RECOMMENDATIONS

The Federation Of Malaysian Manufacturers Selangor Branch in collaboration with Selangor State Investment Centre Bhd held a Dialogue Session with YAB Dato' MB Selangor and all the ADUNs.

In a paper presented during the session entitled "IMPACT OF RECENT FUEL PRICE INCERASE ON INDUSTRIES IN SELANGOR" the representative from the Federation drove home the points:

Impact On Transportation Costs

• Transporters (Conventional cargo transportation i.e lorry operators as well as Container haulage transportation i.en Hauliers like Kontena nasional, MISC haulage etc) have increased their charges citing the increase in fuel prices,
• Average transportation cost hike is between 40% - 60%,
• Average contribution of logistics costs to total manufacturing costs is 20 %,
• Impact of hike in fuel costs to overall logistics costs is about 1%.
  

Impact on Other Forms of Transportation:

1. Factory Bus Transportation- Factory bus Operators have requested for increase in bus fares between 30% - 50%,

2 Staff Travelling Reimbursement/Allowance

• General Incerase of 10% - 15% on staff mileage claims
• 40% increase for fixed transport allowance

RECOMMENDATIONS:

1. Reduce import duties of Cars
2. Abolish Road Tax
3. Encourage Use of natural Gas Vehicles (NGV)
4. Encourage development and Use Of hybrid cars
5. Improve Public Transport System
6. Encourage Sales of Euro 4 Diesel
7. Extend Fleet card to all Commercial Vehicle
8. Standardize Road Tax of Lorry Operators with Hauliers
9. Encourage Use of Multitrailers.

We would like to add 2 more: viz Increase subsidy for Fuel and abolish toll for highways.