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Business in Action @ Fmm JAN- MAR 2021 w w w . fmm.or g.my KDN NO.PP 16730/08/2012 (030376) BUSINESS IN ACTION @ FMM RCEP: A UNIFYING SET OF RULES FMM_BIA_Jan-Mac2021_FINAL.indd 1 06/04/2021 3:28 PM BSM_ZincalumeAds210x298_output.pdf 1 02/03/2021 8:51 PM JAN - MAR 2021 w w w . fmm.or g.my KDN NO.PP 16730/08/2012 (030376) BUSINESS IN ACTION @ FMM EDITORIAL ON THE COVER Advisor Follow us on Dr Yeoh Oon Tean www.fmm.org.my www.fb.com/fmm.org.my Editorial Team Manager Mohd Afs Mohamad Advertising Enquiries Mohd Afs / Sammy Phuah Senior Executive [email protected] Natalie Ng +603-6286 7376 / 7211 C M Editorial & Design Published by Y Paul & Marigold Federation of Malaysian RCEP: A UNIFYING SET OF Manufacturers (7907-X) CM www.paulandmarigold.com RULES What the formation of Wisma FMM the world’s biggest trade bloc MY Editor (NM Fernandez) No 3, Persiaran Dagang, PJU 9 means for Malaysia CY Creative Director (Huda Ali) Bandar Sri Damansara CMY Senior Designer (Nina Elysa) 52200 Kuala Lumpur +603-62867200 K Contributors +603-62741266/7288 Mila Lee Liza Chan Printed by Percetakan Zanders Sdn Bhd Editorial Enquiries No 16, Jalan BK1/11 [email protected] Bandar Kinrara 47180 Puchong Selangor Darul Ehsan FMM Branches Kedah/Perlis, Penang, Perak, Selangor and Kuala Lumpur, Negeri Sembilan, Melaka, Johor, Eastern (Pahang, Kelantan & Terengganu), Sarawak and Sabah All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and recording without the written permission of the publisher. Opinions expressed or implied in Business In Action @ FMM are solely those of the writer/s and are not necessarily endorsed by the publisher. FMM_BIA_Jan-Mac2021_FINAL.indd 2 06/04/2021 3:28 PM BSM_ZincalumeAds210x298_output.pdf 1 02/03/2021 8:51 PM JAN - MAR 2021 w w w . fmm.or g.my KDN NO.PP 16730/08/2012 (030376) BUSINESS IN ACTION @ FMM EDITORIAL ON THE COVER JAN- MAR 2021 w w w . fmm.or g.my KDN NO.PP 16730/08/2012 (030376) Advisor Follow us on BUSINESS IN ACTION @ FMM Dr Yeoh Oon Tean www.fmm.org.my www.fb.com/fmm.org.my Editorial Team Manager Mohd Afs Mohamad Advertising Enquiries Mohd Afs / Sammy Phuah Senior Executive [email protected] Natalie Ng +603-6286 7376 / 7211 C RCEP: A UNIFYING SET OF RULES M Editorial & Design Published by Y Paul & Marigold Federation of Malaysian RCEP: A UNIFYING SET OF Manufacturers (7907-X) CM www.paulandmarigold.com RULES What the formation of Wisma FMM the world’s biggest trade bloc MY Editor (NM Fernandez) No 3, Persiaran Dagang, PJU 9 means for Malaysia CY Creative Director (Huda Ali) Bandar Sri Damansara CMY Senior Designer (Nina Elysa) 52200 Kuala Lumpur +603-62867200 K Contributors +603-62741266/7288 Mila Lee Liza Chan Printed by Percetakan Zanders Sdn Bhd Editorial Enquiries No 16, Jalan BK1/11 [email protected] Bandar Kinrara 47180 Puchong Selangor Darul Ehsan FMM Branches Kedah/Perlis, Penang, Perak, Selangor and Kuala Lumpur, Negeri Sembilan, Melaka, Johor, Eastern (Pahang, Kelantan & Terengganu), Sarawak and Sabah All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and recording without the written permission of the publisher. Opinions expressed or implied in Business In Action @ FMM are solely those of the writer/s and are not necessarily endorsed by the publisher. FMM_BIA_Jan-Mac2021_FINAL.indd 3 06/04/2021 3:28 PM Business in Action @ FMM 4 PRESIDENT’S MESSAGE JAN - MAR 2021 A STEADFAST COMMITMENT TO GROWTH The outlook on economic recovery is one of optimism, as a momentous trade agreement will soon come into force. Leaders from 15 Asia-Pacific nations signed the Regional Comprehensive Economic Partnership (RCEP) agreement in November of last year, bringing to a close nearly eight years of negotiations. The 15 RCEP partner nations – ASEAN member countries, Australia, China, Japan, New Zealand, and the Republic of Korea - have an estimated GDP of RM10.43 trillion, accounting for about 29% of the world’s GDP and making up 30% of the world’s population. FMM is a strong advocate of the agreement, as we believe that the RCEP will contribute significantly to Malaysian companies towards their post-pandemic recovery by stabilising manufacturing production as well as diversifying and sustaining supply chain connectivity within the region. The signing was timely for local businesses, as under the RCEP, the existing ASEAN Plus One FTAs will be streamlined while gaps in the existing agreements will be managed to create a highly competitive landscape. The RCEP and what it means for Malaysian companies as a whole is outlined in this edition’s cover story, with a detailed focus on manufacturing. This edition will also focus on the specific s we move cautiously into the second quarter approaches’ companies can take to upskill and of 2021, many are undoubtedly still recovering reskill their workforce, be it in the areas of training A from unprecedented circumstances forced upon and development, technology or marketing. them by the ramifications of the COVID-19 pandemic. The road to recovery is an uphill battle, and the For the second time around, a movement control future is an uncertain one, yet I remain confident that order to curb the spread of COVID-19 was put we are up for the challenge. in place in January which affected almost the As we continue to adapt to business operations in the entire country, yet the announcement has given new normal, let us continue to support one another the reassurance to the manufacturing sector that as we work towards an eventual return to positive their operations could continue to operate with growth and complete recovery. stringent compliance to the comprehensive Standard Operating Procedures (SOPs). Sincerely, Despite these bleak states of affairs, it is worth noting our nation’s resilience in overcoming challenges, Tan Sri Dato’ Soh Thian Lai adapting to changes and to continue to strive in the President face of adversity. Federation of Malaysian Manufacturers FMM_BIA_Jan-Mac2021_FINAL.indd 4 06/04/2021 3:28 PM Business in Action @ FMM JAN - MAR 2021 5 CONTENTS 10 COVER STORY RCEP: A UNIFYING SET OF RULES What the formation of the world’s biggest trade bloc means for Malaysia 06 18 AT A GLANCE TECHNOLOGY & DIGITALISATION A POSITIVE OUTLOOK EMBRACING 3D PRINTING ON A LARGER SCALE IN MALAYSIA As the first quarter of 2021 draws to a close, the general Additive manufacturing is fast becoming the way outlook on the industry is one forward in various industries. of positivity. 16 14 BUSINESS CONTINUITY & SUSTAINABILITY BRANDING & MARKETING THE ROAD AHEAD DRIVING BUSINESS GROWTH THROUGH DIGITAL It has been a year since the STRATEGIES implementation of the initial Movement Control Order To improve leads and sales, (MCO) and many businesses manufacturing companies have undeniably struggled should make digital marketing to regain their footing since a priority then. FMM_BIA_Jan-Mac2021_FINAL.indd 5 06/04/2021 3:28 PM Business in Action @ FMM 6 GLOBAL TRENDS JAN - MAR 2021 VIDEO, VIRTUALVIDEO, VIRTUALAND AND PHYSICALPHYSICAL MANUFACTURERSMANUFACTURERS AUGMENTEDAUGMENTED REALITY REALITY A POSITIVE DISTANCINGDISTANCING DISRUPTIONDISRUPTION WILL BE WILLGIVEN BE AGIVEN BOOST A BOOST OUTLOOK HEALTH HEALTH& SAFETY & SAFETY TREND INTREND STAFFING IN STAFFING MORE ITMORE AND DATAIT AND DATA WILL EVOLVEWILL EVOLVE ANALYSISANALYSIS EXPERTISE EXPERTISE s the first quarter of 2021 draws to a close, the general outlook on the industry is one of positivity. In A Asia, China leads the Asia-Pacific (APAC) recovery which saw industrial output growth strengthen during the second half of 2020. IHS Markit APAC Manufacturing Purchasing Managers’ Index (PMI) data for January 2021 showed that manufacturing production in recent months had improved, suggesting that there would be positive growth in manufacturing output in the months to come. As lockdowns ease and COVID-19 cases stabilise in many countries, substantial recovery is on the horizon across the region. Predictions for manufacturing production in coming months within the APAC region are aligned with the rapid economic growth worldwide, at a pace of around 5% year-on-year (y/y). The GDP growth outlook for APAC is expected to surpass that, at around 5.8% y/y, a key driver being China’s economic growth at around 7.6% y/y in 2021. The top five manufacturing industries that led the IHS Markit Asia Industry PMI rankings in January 2021 were as follows: automobiles & auto parts; household & personal use products; machinery & equipment; metals & mining and chemicals; and construction materials. In Japan, both output and new orders expanded at the fastest rate since December 2018, recording positive growth in new export orders as well, as the Flash Au Jibun Japan Manufacturing PMI rose from 49.8 in January to 50.6 in February. Early 2021 saw South Korea’s manufacturing sector output reflecting positive growth with seasonally adjusted South Korea Manufacturing PMI rising to 53.2 in January from 52.9 in December. In India, companies have increased output at a faster pace in response to rapid expansions in total sales and new export orders. Manufacturing in the US continued to recover in early 2021, based on evidence of a pickup in demand for goods. The Institute for Supply Management’s manufacturing index remained in growth mode, from 58.7 to 60.5. (A reading above 50 indicates an expansion of activity in the manufacturing sector) FMM_BIA_Jan-Mac2021_FINAL-gutter.indd 6 08/04/2021 4:25 PM Business in Action @ FMM JAN - MAR 2021 GLOBAL TRENDS 7 VIDEO, VIRTUALVIDEO, VIRTUALAND AND PHYSICALPHYSICAL MANUFACTURERSMANUFACTURERS AUGMENTEDAUGMENTED REALITY REALITY DISTANCINGDISTANCING DISRUPTIONDISRUPTION WILL BE WILLGIVEN BE AGIVEN BOOST A BOOST HEALTH HEALTH& SAFETY & SAFETY TREND INTREND STAFFING IN STAFFING MORE ITMORE AND DATAIT AND DATA WILL EVOLVEWILL EVOLVE ANALYSISANALYSIS EXPERTISE EXPERTISE At the end of 2020, Germany The job market remains uncertain emerged top in European in all sectors, and manufacturing manufacturing as Euro-area trends in staffing will evolve based manufacturing grew more than on the demands of safety measures it has in over two-and-a-half- in 2021.
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