US-based firm Flex has threatened to move its production from Sriperumbudur in Tamil Nadu to Malaysia, if the concessions promised earlier are not granted, Times of India reported.

The top contract manufacturer for electronics has also alleged the government’s functioning is entangled in "red tape", according to the report.

Flex, a letter sent to IT secretary Ajay Sawhney, said no move has been made by the government on its request, which was made in August, to allow its Chennai factory to get duty-free products from its second unit within a special economic zone (SEZ) in the same location, the report said.

The company told the paper it requested for a waiver of the mandated 20 percent customs duty.

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