PORT KLANG: Plantation Industries and Commodities Minister Datuk Seri Mah Siew

Keong has assured medical device manufacturers' that he is in talks with Finance
Ministry to reconsider raising the limit and extending reinvestment allowance for
manufacturers beyond 2018.
"We're in talks with Finance Ministry to reconsider the appeal for reinvestment
allowance extension," the minister told reporters, after an official tour of Karex Bhd's
condom factory here today.
The medical device manufacturing sector has been pressing on with their appeal to the
government to extend tax incentives, despite earlier rejection under 2017 Budget.
Under the 2016 Budget, the government has accorded reinvestment allowance to
manufacturers, with up to 60 per cent of the allowed capital expenditure for the years
2016, 2017 and 2018.
Condom manufacturers like Karex have and will continue to pump in a lot of money,
time and effort to automate many processes along its production lines.
"Automation is key to ramping up productivity. Government incentives, such as the
raising the limit of reinvestment allowance and extending it beyond 2018, is vital for
capital intensive businesses such as ours," said Karex chief executive officer Goh Miah
Kiat.
Manufacturers of medical gloves, Foley catheters and condoms are reiterating their
appeal to the government to extend reinvestment allowance as they aggressively
reinvest to automate production lines, develop more innovative medical gloves and
seize a sizeable chunk of the world's lucrative condom market.
Mah also said he will forward the proposal to the Ministry of Women, Family and
Community Development to consider promoting condoms as first choice of birth
control.
"I will talk to the Minister in charge of family planning about promoting Malaysian
rubber as the preferred choice," he said.
This evening, Karex told the stock exchange its first quarter profits ended September
2016 fell 63.5 per cent to RM8.14 million from RM22.28 million a year ago, due to
lower foreign exchange gain.

The lower profit was also attributed to higher operating, administration and one-off
corporate exercise expenses with the consolidation of newly acquired Pasante
Healthcare Ltd. Revenue rose 5.2 per cent to RM80.04 million from RM76.09 million,
largely due to the consolidation of sales from Pasante.