THE weakened ringgit is exerting pressure on the cost and profit margins of Penang-based Federation of Malaysian Manufacturers (FMM) members.
FMM vice-chairman Lee Teong Li said more than 60% of their members had been affected.
“These are members who import raw materials to make finished products sold in the domestic market.
“They buy the raw materials in greenback and sell in the domestic market, earning ringgit.
“That is why there is pressure on the profit margins,” Lee said.
Lee was speaking after a press conference on the forthcoming CEO talk to be held on Aug 1, featuring Top Glove chairman TanSri Lim Wee Chai and Silverlake Axis Ltd chairman Goh Peng Ooi as speakers.
FMM Penang has 360 members in Penang and over 3,000 in Malaysia.
“Most members in Penang import plastic resin from Japan and USA, and metal and steel-based raw materials from Korea, Taiwan, China, and Germany.
“Commodity prices have not risen, but the ringgit has declined substantially, making it expensive to do business,” Lee said.
On the upcoming CEO forum, FMM Penang chairman Datuk Ooi Eng Hock said the objective of the event was to inspire school children to emulate the success of eminent businessmen in the country.
“Lim, who owns one of the world’s largest rubber glove making operations in Malaysia, will talk on ‘Overcoming Business Challenges: The Top Glove Experience’.
“Goh, who produces financial software solutions for banks, will speak on ‘Managing IT Challenges in Manufacturing’,” he said.
On a separate matter, Ooi said FMM Penang would host the FMM Penang 3rd Futsal Carnival on Aug 23 in Mak Mandin, Butterworth.
Later, on behalf of FMM, he gave RM20,300 to the Tau Chi foundation to aid the victims of the Sabah earthquake, and RM20,000 to the St John’s Ambulance Penang to aid the Nepalese quake victims.
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