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The Cabinet will today consider waiving fees on all industrial factories to help reduce their financial burden, as manufacturers are already faced with having to lay off workers amid the economic crisis.

The Industry Ministry proposed the waiver as the Industrial Economics Department's manufacturing production index contracted 2 per cent on year in the fourth quarter. The department also forecast that the MPI would expand 1-2 per cent this year, compared to 6-7 per cent last year.

"This will lead to the laying off of at least 1 million workers in 2009," it said in papers to the Cabinet. "This waiver will help the manufacturers and also save jobs, in line with the government's economic stimulus package."

If approved, all manufacturers would benefit from the waiver from April 2009 to March 2010.

Meanwhile, the Finance Ministry will also ask for Cabinet approval for tax allowances for individual and corporate taxpayers who spend on new and working energy-saving equipment and machinery from now until end-2010. One-fourth of the spending could be deducted from their taxable income.

To be eligible for the deduction, the equipment and machinery must be certified as energy-saving devices by the Alternative Energy and Efficiency Department. Vehicles are exempted.