BUDGET 2025 WISHLIST
Bursa Malaysia-listed Pensonic Holdings Bhd, a leading Malaysian manufacturer and distributor of household electrical appliances, is advocating for key government initiatives in the upcoming 2025 Budget. Pensonic believes these recommendations are essential for building a robust ecosystem that will enable local brands to thrive domestically and internationally.
A cornerstone of Pensonic’s wishlist is the need for advanced technology adoption and automation in the local manufacturing sector. Pensonic is calling for capital expenditure (capex) grants and tax incentives that will encourage local manufacturers to embrace technologies such as artificial intelligence (AI) and automation systems.
Additionally, the company recommends that the government offer special tax rates or rebates for local manufacturers. These targeted tax incentives would ensure that Malaysian brands maintain their competitive edge over international competitors in the manufacturing space.
Pensonic also urges the government to introduce a special accelerated capital allowance (ACA) rate for machinery used in the production of electrical products, reflecting the ACA provided for ICT equipment and customised software. This allowance would enable local manufacturers to quickly write off investments in machinery, encouraging further technological advancement and improving productivity in the sector.
In line with building a sustainable manufacturing ecosystem, Pensonic is also advocating for the government to take on a more active role as an investor. By setting up state-backed investment funds focused on supporting Malaysian manufacturers, the government can help drive the expansion of local brands into global markets.
This ecosystem-building approach should also encompass upskilling programs, infrastructure development, and access to global distribution networks. By addressing these gaps, Malaysia can build a fully integrated manufacturing ecosystem that allows local brands to overcome challenges in exporting and scaling their products to international markets.
Besides that, Pensonic emphasises that in order to support Malaysian brands in scaling globally, it is critical to address bureaucratic obstacles that hinder growth. To this end, the company proposes that the government establish a specialised taskforce to fast-track approval processes for businesses with high global growth potential.
This taskforce would play a pivotal role in removing bureaucratic barriers and simplifying procedures, making it easier for businesses to scale and expand internationally.
With e-commerce playing an increasingly significant role in modern commerce, Pensonic believes that the government should offer tax rebates or deductions for digital marketing expenditures.
This would encourage local companies to invest in expanding their digital presence, which would help local brands access global markets and tap into e-commerce opportunities more effectively.
Pensonic emphasises that to compete globally, local companies must be supported through reduced export customs rates and expanded tax deductions for exports. By widening the scope of tax deductions to cover all stages of the export process, from manufacturing to sales, the government can incentivise more local companies to enter the international market. This would make Malaysian products more competitive and accessible on the global stage.
