The Malaysian Knitting Manufacturers Association (MKMA), which caters to the welfare of all knitting-related industries such as spinning, dyeing, printing, knitting and sewing, says government support is crucial for the textile industry during bleak times.
Executive director Rebecca Chang said that without the support, the labour-intensive industry might not be able to survive.
“We are not asking the Government to bail out textile-related companies, but it could support us in many ways,’’ she told StarBiz.
She said the Government should emulate the steps taken by the Chinese government to keep the textile industry afloat during this period.
“For instance, China had raised the export rebate for the Chinese textile makers from 11% in August 2008 to 13% three months later,” she said, adding that when the global economy became worse, the rebate was increased to 14% in January and 15% in February and it would probably go up to 17%.
Chang said the Government was not swift enough to address the problems faced by the local manufacturing sector.
“Our textile industry does not enjoy what the Chinese are enjoying now … when we ask for something, it takes a few years but then it may be too late,’’ said Chang.
The sector also wants the Government to abolish the multi-level tax where textile makers have to pay 10% sales tax for every process.
The textile industry in Malaysia is specialised. For instance, the spinner will send the fabric for dyeing, printing and silk screening elsewhere and these processes will be taxed accordingly.
