Malaysian government urged to cut footwear raw materials duty
The Malaysian government has said it will consider lowering the import duty that applies to raw materials used in the production of footwear.
Speaking at the launch of the Perak Shoemakers Association website last week, Deputy Finance Minister Datuk Chan Kong Choy said the Government was willing to consider reducing the import duty from its current level of 30%, so as to enhance the footwear industry’s export prospects.
The minister also advised that he had received a request from the shoe manufacturing sector to raise the threshold that applies to the payment of business sales tax from its current level of RM100,000 turnover per year to 500,000.
According to Malaysian Industrial Development Authority figures, Malaysia is home to some 1,200 footwear manufacturers, with most located in Perak, Selangor and Johor. Employing around 30,000 workers, the sector exports less than 20% of its output, however because of the high level of competition encountered in the international marketplace. Successful local brands that have made it into the global market include Dr Cardin, Crocodile, John Bird and Larrie. The Malaysian footwear sector produces an estimated 60 million pairs annually and imports most of its components, mainly PVC and PU leather, from China, Taiwan and Korea.
