Recently MBAM (or MASTER Builders Association Malaysia) has appealed to the Malaysian government to lower import duty on heavy equipment and machinery spare parts. In Asean, the import duties on the machinery parts used in building and construction segment are considered among the highest. Commenting on this appeal Matthew Tee, president MBAM said “The current import taxes of machinery equipment for the construction sector are as high as 20-25 per cent. Ideally, in the Asean Economic Community spirit of freer movement of goods, they should be slashed to five per cent”.
There has been a growing demand for lowering import duties to increase productivity worldwide including China and Malaysia. Industry experts are of the faith that this would encourage prominent industry players to invest heavily in high-capacity equipment’s and machineries. In the past several countries across the globe have asked for lowering the import duties on spare parts that are not manufactured in their home country.
Matthew Tee explained “We have been putting our appeals since 2006. Effective 11th June 2015, the government had cut import taxes on three out of 10 tariff codes we had submitted". Majority of the machinery used for construction in Malaysia are old. Therefore, there is greater opportunity for several construction equipment brands to make the most of such situation, enter and expand their presence, to back the implementation of different project in Malaysia. Eyeing such opportunities of the machinery and equipment parts Prof Research Reports has added a reports “Parts - Market Research Reports & Industry Analysis.”
The market research report focuses on the major market drivers, obstacles and opportunities of the machinery parts market worldwide including China. Besides taking a closer look at the new projects, the study thoroughly examines them to understand their investment feasibility. The level of competition of companies operating in regions such as China, Japan, United States and Europe are also explored.