Manufacturers face haze-related disruption and cost pressures

Worsening haze could interrupt factory operations in Malaysia, affect attendance among workers and increase business expenses, the Federation of Malaysian Manufacturing (FMM) said. It warned that manufacturers may face additional costs for protective equipment, air filtration and workplace modifications.

Outdoor activities and logistics could also suffer as air quality declines, the federation said. Its president, Jacob Lee Chor Kok, linked recurring haze to risks for public health, economic productivity and the competitiveness of industry.

At 10am on Oct 9, IQAir put Kuala Lumpur's US Air Quality Index (AQI) at 210 and Petaling Jaya's at 207. Both were rated very unhealthy. Ipoh registered 176 and Klang 174, with both classified as unhealthy.

FMM advised manufacturers to activate plans for business continuity, reduce prolonged worker exposure and adapt outdoor tasks to worsening air conditions. It also sought tougher enforcement on illegal open burning, better systems for early warnings and increased investment to prevent fires.

The federation asked Asean to move faster on existing measures to control haze and monitor progress towards its haze-free ambition for 2030. Its Budget 2027 requests included stronger incentives for pollution prevention and environmental technologies, alongside assistance to monitor workplace air and improve filtration.

Separately, FMM sought support for Malaysian small and medium enterprises (SMEs) growing into larger businesses. Lee proposed a manufacturing SME eligibility threshold of RM100 million for annual sales turnover and 300 for full-time employees, so expanding companies could retain access to government assistance.

The federation also requested that the SME corporate tax threshold be reviewed. It called for improved payment discipline and debt recovery arrangements to strengthen businesses' cash flow and help fund expansion.