Malaysian footwear and leather producers side-step cashflow difficulties
Footwear and leather manufacturing businesses are among those that appear to have escaped the rash of cashflow problems currently afflicting small to medium-sized industries (SMIs) in Malaysia.
According to the national financial press, around 70% of all Malaysian SMIs are now facing cashflow problems because of the global economic slowdown - the worst affected being those involved in the supply of building materials, automotive parts, printed materials, electrical goods and electronics.
Said Lee Teck Meng, vice president of the National Small and Medium-scale Industry Association: "I can't give an official figure but based on the feedback given by our members, some 10,000 companies dealing in 128 trades are affected by the global economic slowdown."
Apart from the leather and footwear trades, those businesses that appeared to be doing ‘reasonably well’ were those involved in the food business, clothing and textile, rubber and plastic products, Lee said. In 2000, SMIs accounted for 65%of Malaysia's total export volume.
