Malaysia: using foreign products will raise costs

Glass manufacturers in Malaysia are upset that a foreign consultant has asked Putrajaya Holdings not to use local products but to import these from Europe. According to the manufacturers, products fro…

Glass manufacturers in Malaysia are upset that a foreign consultant has asked Putrajaya Holdings not to use local products but to import these from Europe. According to the manufacturers, products from Europe would cost 15% to 20% more than those processed locally. The foreign consultant said the manufacturer and processor of the glass must be from the same company so that it will be easier to get a warranty. This has immediately disqualified local glass manufacturers who have never faced any issues of warranty, Krishna told reporters after speaking to MCA president Datuk Seri Dr. Chua Soi Lek and representatives from the Malaysian Glass Association. In Malaysia, glass manufacturer Malaysian Sheet Glass Sdn Bhd, wholly owned by the world“s largest float glass manufacturer Nippon Sheet Glass Pvt Ltd., is upstream of the industry with over 30 glass processors downstream. Dr. Chua urged the producers to prepare a memorandum and said he would then bring up the issue at the next National Economic Council meeting after Hari Raya. The local glass industry has invested over MYR 500 million in manufacturing facilities and has created more than 10,000 jobs. We hope this issue can be resolved as soon as possible so that it will not affect the livelihood of the workers, he said. Krishna said the consultant also argued that local products, especially tempered glasses, had been suffering from spontaneous breakage. However, this is a common problem all over the world and is an unfair argument. We can engage in discussion with Putrajaya Holdings if it wants different specifications for our products, he said. According to Krishna, the downstream of the industry employs more than 10,000 workers with an annual MYR 2 billion turnover while the upstream hires about 1,200 workers with a turnover of MYR 400 million yearly.