The Malaysian Rubber Glove Manufacturers Association (MARGMA) has encouraged its members to take full advantage of Thailand's 'Rubber City', which offers attractive tax incentives, abundant labour supply and proximity to raw materials.

"The Thai Government also provides water infrastructure and is also working on natural gas supply which will be available within three years, said MARGMA President, Denis Low Jau Foo.

Low said this to reporters at the Rubber City Songkla Roadshow here today.

The 'Rubber City' is located in the Southern Region Industrial Estate in Songkhla's Hatyai district.

The first phase is slated to be ready by June 2017 and the second to start in the next two years.

Industrial Estate Authority of Thailand Governor, Verapong Chaiperm, said among the incentives were exemption from corporate income tax on dividends for up to eight years and exemption of import duties on machinery.

"We already have two Malaysian companies in the Rubber City with over US$150 million (US$1 = RM4.21) in investments. We are scouting for more investments from Malaysian companies," said Verapong.

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.

The newly-established production site is located some 16 kilometres from the Hatyai International Airport, 45 km from Songkhla's deepsea port and about 80 km from the Malaysian border.

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. -- BERNAMA