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FMM Urges Budget 2027 Incentives For Pollution Prevention, Green Technologies

KUALA LUMPUR, Oct 9 (Bernama) --  The Federation of Malaysian Manufacturing (FMM) has called on the government to introduce stronger incentives under Budget 2027 for environmental technologies, pollution prevention, industrial research and development, innovation, and small and medium enterprise (SME) sustainability investments.

FMM president Jacob Lee Chor Kok said support should include accessible assistance for workplace air-quality monitoring and filtration upgrades, as well as investments to prevent pollution at source.

“For manufacturers, haze can affect workers’ health and attendance, disrupt outdoor operations and logistics, and increase spending on air filtration, protective equipment and operational adjustments.

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“Preventing haze is therefore also an investment in industrial resilience and competitiveness,” he said in a statement today.

Lee said the FMM was deeply concerned about haze affecting Malaysia and neighbouring ASEAN countries, warning that it posed serious risks to public health, worker safety, economic productivity and environmental sustainability.

He acknowledged regional measures already in place but said the priority was to accelerate implementation, improve coordination and deliver measurable results in preventing fires and reducing exposure to haze.

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The FMM proposed five priority actions: strengthening monitoring and early warning systems; stepping up enforcement and preventing fires at source; promoting responsible and sustainable regional supply chains; accelerating financing, technology and research; and protecting workers and communities while strengthening accountability.

On financing, Lee called for greater mobilisation of funds under the ASEAN Investment Framework for Haze-Free Sustainable Land Management, endorsed in August 2023. The framework aims to mobilise an estimated US$1.5 billion by 2030 to address the underlying causes of haze.

“The FMM urges partners to translate these arrangements into accessible financing and projects that deliver measurable outcomes in fire prevention and sustainable land management,” he said.

Lee also urged manufacturers sourcing agricultural and forest-based raw materials to strengthen traceability and engage suppliers more closely, particularly when sourcing from areas at risk of land and peat fires.

Companies should activate haze-response and business-continuity plans covering employee communications, health reporting, safe working arrangements and logistics contingencies. Employers should also consider reasonable flexibility for workers affected by school closures, he said.

Lee said environmental sustainability and industrial competitiveness should reinforce each other.

“ASEAN cannot aspire to become a leading sustainable manufacturing and investment destination while recurring haze continues to undermine the health and well-being of its people.

“The objective must go beyond managing haze when it occurs. ASEAN must progressively eliminate its preventable causes,” he said.

-- BERNAMA