The Malaysian Rubber Glove Manufacturers Association (MARGMA) is encouraging its members to take advantage of the attractive tax incentives, abundant labour supply, and close proximity to raw materials that Thailand’s Rubber City is offering to investors.
According to MARGMA President, Denis Low Jau Foo, the Thai government is also providing water infrastructure as well as working on natural gas supply which will be available within three years’ time.
Industrial Estate Authority of Thailand Governor, Verapong Chaiperm, also added exemption from corporate income tax on dividends for up to eight years and exemption of import duties on machinery as among the other incentives of investing in the Rubber City.
Verapong also said that they already have two Malaysian companies in the Rubber City with over US$150 million (approximately RM632 million) in investments, and that they are scouting for more investments from Malaysian companies.
The Rubber City, which will focus on the midstream and downstream industries, is intended to be an integrated centre of production for rubber processing, such as tyres, rubber gloves and compound rubber.
It was reported earlier that the Industrial Estate expected the Rubber City to attract an estimated investment of US$228.5 million. The city can accommodate at least 70 companies.
The Rubber City is located in the Southern Region Industrial Estate in Songkhla’s Hatyai district.The newly-established production site is located some 16 km from the Hatyai International Airport, 45 km from Songkhla’s deep sea port and about 80 km from the Malaysian border.
The first phase is slated to be ready by June 2017 and the second to start in the next two years.