The company, which doubled its factory capacity in Phuket this month, will increase its output size by 100% at another plant in Songkhla that borders Malaysia, chairman Lim Wee Chai said Favourable tax breaks in Thailand and the ease of hiring workers prompted the company’s decision, he said. The stock gained 0.4 percent at the Friday close in Kuala Lumpur, the highest level in three months. which commands a quarter of the world’s glove market, has suffered from rising costs in Malaysia with the doubling of foreign-worker levies this year
Malaysia suspended the recruitment of overseas workers in February, only to lift the freeze partially on new foreign labour hires to four sectors including manufacturing in May.Still, the country can’t continue to increase its intake of foreign labour, according to Mah Siew Keong, the plantation industries and commodities minister on Tuesday. The ministry, which oversees the rubber sector, is instead seeking incentives for more mechanisation to cut reliance on foreign labour.