FEDERATION OF MALAYSIAN MANUFACTURERS

APR – JUN 2016 | VOL: 2 /2016 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376)

Joint Press Conference on TPP

04 COVER 06 FEATURE 12 SME NEWS STORY Malaysian Business Sector: FMM Excellence Updates on Market TPP to Drive Growth and Jobs Award Winners Development Grant EDITORIAL CONTENT

Advisor Dr Yeoh Oon Tean COVER STORY Chief Executive Officer Editorial Team Malaysian Business Sector: Madeline Loh 04 TPP to Drive Growth and Jobs General Manager (Trade) Ng Lee Lee Senior Manager International Business Division FEATURE Florance S. Gabriel Assistant Manager FMM Excellence Award Winners Communications and Publications Unit 06 Advertisements Kenny Lee Sales Manager FMM – MIER Business Conditions Survey Marketing Unit 08 Tel: 012-383 3857

Published By Federation of Malaysian Manufacturers (7907–X) FMM Members Recognised at Wisma FMM 10 Prime Minister’s Hibiscus Award No. 3, Persiaran Dagang, PJU 9 Bandar Sri Damansara 2014/2015 Night 52200 Kuala Lumpur Tel: 03-62867200 Fax: 03-62741266/7288 Email: [email protected] Website: www.fmm.org.my

Printed By Percetakan Okid Sdn Bhd No. 2, Jalan SS13/3C Subang Jaya Industrial Estate 47500 Subang Jaya, Selangor

FEDERATION OF M ALAYS IAN M ANUFACTURERS © Copyright Reserved FMM has eight branches and two representative offices located in Kedah, Penang, Perak, Selangor, Negeri Sembilan, Malacca, Johor, Pahang, Sabah and Sarawak. SME NEWS Any material extracted from BUSINESS ACTION @FMM to be quoted or reprinted should Updates on Market Development Grant contain an acknowledgement to FMM or its 12 acknowledged sources.

2 | BIA@FMM | APR – JUN 2016 UPDATES FMM IN THE NEWS

Industrial Energy Efficiency Kedah/Perlis 14 for the Malaysian 23 Negeri Sembilan Manufacturing Sector 15 EU-Vietnam FTA Ratified

Strengthening Ties 16 with Singapore

Visit to Machinery Technology Penang 18 Centre, SIRIM BERHAD Perak FMM Business Delegation Selangor to Sinopack 2016 at Guangzhou, China

Financing Facilities for 20 Women Entrepreneurs

Mandatory Requirement to Verify Weight of a Container Carrying Cargo

Counterfeits: You’ve Built Johor 22 Your Turf, Now Guard It! Sabah Malacca Eastern

APR – JUN 2016 | BIA@FMM | 3 NEWSCOVER HIGHLIGHTS STORY

Malaysian Business Sector: TPP to Drive Growth and Jobs

A Joint Press Conference on TPP was held on January 20, 2016 represented by the business sector

The Malaysian business sector The Cost Benefit Analysis studies by which will open up more opportunities represented by the Federation of Institute of Strategic and International for local players to procure better quality Malaysian Manufacturers, Malaysian Studies and PricewaterhouseCoopers raw materials from its TPP partners at a International Chambers of Commerce further reaffirm that TPP is expected to lower price to produce high value-added and Industry, The Associated Chinese bring more positive than negative products. In turn, exports of high value- Chambers of Commerce and Industry impacts on the Malaysian economy. added finished products from Malaysia of Malaysia, Malay Consultative Council, are expected to increase. Recognising SME Association of Malaysia, Malay Being a signatory to the TPP means the economic benefits that can be Businessmen and Industrialist that Malaysia will have access to an reaped from the TPP, countries like Association of Malaysia and American enormous free trade market of 800 the Philippines, Thailand, Indonesia, Malaysian Chamber of Commerce million people with a combined GDP South Korea and Taiwan have also (jointly The Associations) expressed of USD27.5 trillion. Tariffs will be expressed interest in joining TPP in joint support for Malaysia to sign the eliminated on 85% of Malaysia’s trade the foreseeable future. Trans-Pacific Partnership agreement. with its new FTA partners – Canada, They were of the view that the signing Mexico, Peru and USA. This will SMEs are already competing under of the TPP is the key to Malaysia’s ultimately represent USD$1.2 billion existing FTAs. For instance, since January aspirations to enjoy sustainable growth of tariff savings a year for Malaysian 2010, over 90% of our tariffs under the and move into the ranks of a high exporters. The products that will ASEAN-China FTA had been eliminated income nation. They believed that it benefit from duty free access to the but Malaysian SME companies have holds immense potential for boosting TPP countries are automotive products, continued to survive and are in fact able exports, generating economic growth machinery and equipment, electrical to compete more effectively due to and creating employment. It also and electronics, textile and apparel cheaper imported raw material and promises Malaysian companies and all and rubber products among others. inputs. Under the TPP, a chapter is TPP countries a degree of transparency Malaysia will eliminate import duty dedicated to facilitate SMEs. SMEs will and predictability in investment rules for several sensitive E&E products and be facilitated to participate in the global and tariff concessions. petroleum and chemical products supply chain, by enhancing transparency

4 | BIA@FMM | JAN – MAR 2016 and sharing of information on-line EU Malaysia FTA or RCEP? If Malaysia Procurement will gradually reduce among TPP countries, as well as fails to conclude the TPP, our ASEAN preferences over time. Malaysia can developing capacity building neighbours may move ahead of us also elect to deny tobacco control programmes to assist SMEs to strongly and we will be relegated to the measures from Investor State Dispute remain relevant under TPP. side-lines. As such, the opportunity cost Settlement provisions. of not aligning ourselves with the global The TPP is now more important than economy now would only get costlier Being an open and competitive trading ever to ensure that Malaysia continues for Malaysia over time. economy has served us well in the past to attract Foreign Direct Investments. and our development experience tells It is also crucial to help protect our The Associations recognised that there us that we should not be held back by investments abroad given that are challenges in implementing such a the unfounded fears of a few. With this Malaysia is now a net exporter of broad and high-standard agreement in mind, the Associations urged the capital - largely because of the across different countries. The Malaysian government to look into the investments and expansion of local Government has managed to future and take the steps necessary to corporations into overseas market. successfully negotiate numerous lead the TPP into a reality. The Associations exclusions and exemptions to safeguard also urged that all stakeholders to focus The Associations were confident that the nation’s and stakeholders’ interests on the overall interests of the nation having a first mover advantage in the especially in the areas of national going forward. TPP would yield positive results. Given sovereignty, Government Procurement, the uncertainties in the global trading State Owned Enterprise and the Note: On February 4, 2016, Malaysia environment, especially in traditional Bumiputera agenda. The Government signed the TPP agreement with Australia, export markets, can Malaysia afford not retains its rights of affirmative action for Brunei, Canada, Japan, Mexico, New to sign important FTAs like the TPP and the Bumiputera community. Market Zealand, Peru, Singapore, Vietnam later, other FTAs in the pipeline like the access obligations in Government and United States.

UPCOMING EVENTS

JUNE SEPTEMBER NOVEMBER Jun 22 – 25, 2016 Sept 1 – 4, 2016 Nov 2 – 4, 2016 Manufacturing Expo Worldfood Istandbul Worldfood Kazakhstan Bangkok, Thailand Istanbul, Turkey Kazakhstan Five international exhibitions: To be confirmed To be confirmed Intermold, Automotive Manufacturing, Assembly & Automation, Surface and Sept 12 – 15, 2016 Nov 16 – 19, 2016 Coatings, NEPCON Worldfood Moscow Vietnam Food Expo Moscow, Russia HCMC, Vietnam JULY To be confirmed Food and food related products July 7 – 10, 2016 Interplas Thailand Sept 21-23, 2016 Nov 23 – 26, 2016 Bangkok, Thailand TILOG-Logistix Grand Metalex Plastics and Petrochemical Bangkok, Thailand Bangkok, Thailand Manufacturing Machinery & Technology Logistics Service Providers & Intralogistics Machinery Tools and Accessories. & Solutions AUGUST OCTOBER For more information, please log on Aug 4 – 7, 2016 Oct 27 – 30, 2016 to FMM’s website at http://www.fmm. Thailand Retail, Food & Hospitality Kaohsiung Food show org.my/[email protected] Services 2016 (TRAFS) Kaohsiung, Taiwan or contact Koh Wee Leng of the Bangkok, Thailand Food & Related products FMM Secretariat at tel : 03-62867200 or Food & Related products e-mail: [email protected]

APR – JUN 2016 | BIA@FMM | 5 NEWSFEATURE HIGHLIGHTS

FMM Excellence Award Winners

Winners of the FMM Excellence Awards (FMMEA) were recognised at the FMM Annual Dinner on December 1, 2015.

The Gold Recipient for SMIs category was Leader Universal Aluminium Sdn Bhd while the Silver Recipient for Large Companies was All Cosmos Industries Sdn Bhd. Master-Pack Sdn Bhd meanwhile won the award for Silver Recipient for SMIs category. Leader Universal Aluminium Sdn Bhd (LUA) manufactures aluminium and alloy rods. The company had its first EC aluminium and alloy rod cast since 1978. Today, LUA has four properzi CCR lines in its Johor and Negeri Sembilan plants with a combined capacity to produce Group photograph of the winners of the Silver Recipient for Large Companies, 100,000 MT of EC aluminium and alloy All Cosmos Industries Sdn Bhd with the trophy and the certificate rods annually. Nearly 70% of LUA’s products are exported to producers in possesses, ACI is poised to help its Packaging Solutions Provider and the cable & wire, automotive and electrical customers to achieve higher productivity providing Vendor Managed Inventory & electronic (enamel wire) sectors. and returns from their plantations. for its selected customers. LUA is wholly owned by HNG Capital, a Malaysian investment holding company. Master-Pack Sdn Bhd was incorporated All three winners received the FMM All Cosmos Industries Sdn Bhd (ACI) in 1989 and is a wholly-owned Excellence Award from the Guest of manufactures high grade bio-organic subsidiary of Master-Pack Group Honour YB Dato’ Seri Ong Ka Chuan, and bio-chemical fertilisers. Incorporated Berhad, which is listed in Bursa Malaysia. Minister of International Trade and in 1999, it has plants in Johor, Sabah The company produces corrugated Industry II. Receiving the awards at the and China. Catering to the needs of cartons and paperboards for a wide dinner were Alex Lim Weng Soon, the agricultural sector, ACI produces spectrum of customers ranging from Managing Director from Leader Universal 20 types of fertilisers for the local and local set-ups to MNCs. Products are Aluminium Sdn Bhd, Dato’ Peng Shih ASEAN markets with inroads being made manufactured according to customers’ Hao, CEO of All Cosmos Industries into the Middle East. With the experience specifications and market needs. Other Sdn Bhd and Dr Junid Bin Abu Saham, and expert product knowledge it value-added services include a One-Stop the Director of Master-Pack Sdn Bhd.

Dr Junid Bin Abu Saham, the Director of Master-Pack Sdn Bhd Alex Lim Weng Soon, Managing Director from Leader Universal Aluminium (2nd from right) receiving the trophy from YB Dato’ Seri Ong Ka Chuan. Sdn Bhd (4th from left) and representatives from the company after Looking on are FMM President Dato’ Seri Saw Choo Boon and FMM winning the Gold Recipient for SMIs Category Council Member and Chairman of FMMEA Dato’ Soh Thian Lai

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FEATURE

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FMM Members Recognised at Prime Minister’s Hibiscus Award 2014/2015 Night

A group photograph of YAB Dato’ Seri Dr. Ahmad Zahid Hamidi, Deputy Prime Minister (seated, 4th from right) with the award winners

Congratulations to our members 2015. In his speech, the Deputy encourage SMEs to gain greater Acidchem International Sdn Bhd, First Solar Prime Minister called on the private exposure and learn from leaders in Malaysia Sdn Bhd, Malaysian Mosaics sector to work collectively with the the best sustainability practices. Sdn Bhd, Nestle Products Sdn Bhd, Government on the green growth Artmatrix Sdn Bhd, Sabah Fo rest Industries strategy and to take the lead in The PMHA, first launched in 1996, Sdn Bhd, Samsung Electronics Display adopting the state of art technologies is jointly organised by Malaysia’s (Malaysia) Sdn Bhd, Shell Refining for sustainable development. leading non-profit organisations Company Berhad, Texas Instruments which are concerned with corporate Malaysia Sdn Bhd for their achievements Sustainable development is no environmental management and in the 18th Prime Minister’s Hibiscus Award longer a choice or an alternative but performance. They are The Business 2014/2015 (PMHA 2014/2015). a global priority that demands urgent Council for Sustainability & Responsibility action by all for the common good Malaysia, Environmental Management Acidchem In te rnational Sdn Bhd wo n and future. Malaysia had pledged to & Research Association of Malaysia, the Challenge Trophy as the top winner cut greenhouse gas further 45% by Malaysian International Chamber of for PMHA 2014/2015, being the only 2030 at the United Nations Climate Commerce & Industry and FMM. company with Excellent Achievement Change Conference in Paris on for the first time after ten years and December 7 – 8, 2015. The Award is endorsed by the Ministry only the 5th ever to meet the mark in of Natural Resources and Environment, the history of the award. Malaysia’s goal for a green economy Malaysia and supported by the and sustainable future largely depends Department of Environment and YAB Dato’ Seri Dr. Ahmad Zahid Hamidi, on reaching out and integrating over the private sector. Visit http://www. Deputy Prime Minister graced the 600,000 SMEs along the supply chain. hibiscusaward.com/ for more award ceremony held on December 14, PHMA could play a critical role to information on PMHA.

Award Categories and Winners

Company Award Category

Acidchem International Sdn Bhd Challenge Trophy Winner, Penang Award & Excellent Achievement First Solar Malaysia Sdn Bhd Kedah Award, Special Project (Gold) & Exceptional Achievement Malaysian Mosaics Sdn Bhd Exceptional Achievement Nestle Products Sdn Bhd Selangor Award & Exceptional Achievement Artmatrix Sdn Bhd Notable Achievement Sabah Forest Industries Sdn Bhd Notable Achievement Samsung Electronics Display (Malaysia) Sdn Bhd Notable Achievement Shell Refining Company (FOM) Berhad Negeri Sembilan Award & Notable Achievement Texas Instruments Malaysia Sdn Bhd Notable Achievement

10 | BIA@FMM | APR – JUN 2016

SME NEWS

Updates on Market Development Grant

The Market Development Grant (MDG) • Maximum grant amount increased the commencement of MDG in is designed to assist Malaysian Small from RM800 to RM2,000 for 2002 is not eligible for consideration. and Medium Enterprises (SMEs), Trade & Specialised Marketing Mission This grant will also be subjected to Industry Associations, Chambers of (SMM) activities organised by the availability of funds. Commerce & Professional Bodies in other government agencies, The following table is the summary of undertaking eligible export promotional Trade Associations, Chambers the amount of grant to be reimburse activities. The grant is a reimbursable of Commerce & Industry and for the eligible activities. financial assistance on eligible expenses professional bodies; incurred in undertaking export • Active companies that are in Further details on the MDG are promotional activities. operation for less than a year can available at www.matrade.gov.my. On December 1, 2015, MATRADE has apply for the MDG. For more information on trade missions/exhibitions organised announced the following changes to However, the maximum grant for the MDG for activities organised in 2016: by FMM under MDG, please any eligible company under the contact Koh Wee Leng at • Maximum grant amount increased MDG programme is RM200,000. [email protected]. from RM800 to RM2,000 for Trade & Any applicant that has utilised the Investment Mission activities; maximum grant of RM200,000 since

Amount of Grant Reimbursement for Eligible Activities

Eligible Activity Amount

International Trade Fairs in Malaysia • Maximum reimbursement of RM 5,000 per company per participation or the actual participation fees whichever is lower.

International Trade Fairs Overseas • Maximum reimbursement of RM 15,000 per company per participation or the actual participation fees whichever is lower.

Trade & Investment Missions (MITI and Agencies) • Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.

Trade & Investment Missions organised by other • Maximum of RM 2,000 per company per participation or Government Agencies, Chambers of Commerce the actual participation fees whichever is lower. Trade and Industry Associations and Professional Bodies

Specialised Marketing Missions (SMM) by MATRADE • Maximum of RM 10,000 per company per participation or the actual participation fees whichever is lower.

Specialised Marketing Missions (SMM) organised by other • Maximum of RM 2,000 per company per participation or Government Agencies, Trade Associations, Chambers of the actual participation fees whichever is lower. Commerce/Professional Bodies

International Conferences Overseas • Maximum of RM 2,500 per company per conference or the actual participation fees whichever is lower.

Listing Fee for Made in Malaysia products in • Maximum of RM 20,000 per company per Supermarket/ Supermarkets/Hypermarkets/Retail Centres Overseas Hypermarket/ Retail Centre per country or the actual listing fee, whichever is lower.

12 | BIA@FMM | APR – JUN 2016 APR – JUN 2016 | BIA@FMM | 13 UPDATES

Industrial Energy Efficiency for the Malaysian Manufacturing Sector

The UNIDO-GEF Project on Industrial help establish market-oriented projects with high replication and/ Energy Efficiency for the Malaysian instruments which would support or energy savings potential in key Manufacturing Sector (IEEMMS) in and sustain the Malaysian industrial sectors. which FMM is a partner, seeks to manufacturers move towards The coordinating agency is the address some of the existing barriers international best energy performance Ministry of International Trade to industrial energy efficiency (IEE) and to stimulate the creation of a and Industry while SME Corp Malaysia and to improve energy management market for IEE products and services. is the implementing agency. Other through an integrated approach that major stakeholders are Ministry of combines capacity building and The project builds knowledge and Energy, Green Technology and Water, technical assistance interventions at in-depth technical capacity for IEE, and FMM. the policy and EE project levels. with an emphasis on system optimisation (compressed air, steam, The project has resulted in extensive Targeted at industrial decision-makers, pump and fan systems) and energy capacity building and industry engineers, vendors, professionals, management system in line with involvement in the implementation of IEE policy-making and implementing MS ISO 50001. Technical assistance MS ISO 50001 – Energy Management institutions, the project provides includes energy audits and support Systems and System Optimisation as technical assistance to develop and for a limited number of pilot IEE shown in the Tables below:

Participants by sector Participants by company size Type of Training Industry Consultants Others Total Large Medium Total

Energy Management System 337 120 104 561 89 41 130 USER Training Energy Management System EXPERT Training (Classroom 75 139 24 238 13 27 40 & hands-on) System Optimisation 628 260 175 1063 90 84 174 USER Training System Optimisation EXPERT 127 74 119 320 28 19 47 Training (Classroom & hands-on)

Industry Group No. Industry Group No. Industry Group No.

Chemicals & Chemical Products 48 Motor Vehicles, Trailers & Semi-Trailers 12 Manufacture of Furniture & 5 Manufacturing N.E.C Electrical & Electronic 35 Machinery & Equipment 10 Medical, Precision & Optical (including 5 Telecommunications) Instruments, Watches & Clocks Food Products & Beverages 33 Paper & Paper Products 7 Coke, Refined Petroleum Products 5 & Nuclear Fuel Basic Metal 31 Textiles 7 Recycling 3 Non-Metallic Mineral Products 26 Plastics & Plastic Products 6 Leather, Luggage, Handbags, Harness 1 & Footwear Rubber & Rubber Products 15 Fabricated Metal Products 6 Other Transport Equipment 1 Electrical Machinery & Apparatus 14 Woods & Wood Products 6 Other Activities 33

N.E.C: Not elsewhere classified Total 309

14 | BIA@FMM | APR – JUN 2016 Approximate total energy saving as early 2015. Approximate total UNIDO appreciates the support and a result of the implementation is yearly energy cost reduction is assistance given by FMM towards 22,300,000 kWh (mainly through RM 7,800,000 with approximate implementation of this project and the no/low cost measures) derived from gross/yearly GHG reduction of connections to various industries 11 case studies between 2013 to 19 million ton. around Malaysia.

Industrial Energy Efficiency for the Malaysian Manufacturing Sector (IEEMMS): IEEMMS is a project funded by the Global Environment Facility (GEF) and executed by the United Nations Industrial Development Organization (UNIDO) from 2011 to December 2016. FMM is one of the project partners. For more information please contact Ms Kaveta Chelliah, Assistant National Project Manager, UNIDO IEEMMS at 03-27756273 or email [email protected]. The Global Environment Facility (GEF), established in 1991, helps developing countries fund projects and programmes that protect the global environment. The project must meet two key criteria: it must reflect national priorities and have the support of the country involved; and it must improve the global environment or advance the prospect of reducing risks to it. United Nations Industrial Development Organization (UNIDO) is a specialised agency of the United Nations. Its mandate is to promote and accelerate sustainable industrial development in developing countries and economies in transition, and work towards improving living conditions in the world’s poorest countries by drawing on its combined global resources and expertise.

EU-Vietnam FTA Ratified

The EU-Vietnam Free Trade Agreement trade facilitation, sanitary and cooperation and capacity building, (FTA), which has been a work in phytosanitary measures, technical legal and institutional issues, as well as progress since 2012 has been signed barriers in trade, trade in services, new approaches to investment and is expected to increase both the investment, trade remedies, protection and settlement of flow of investment and trade between competition, state-owned enterprises, investment disputes. both parties. government procurement, intellectual Source: http://www.cariasean.org property, sustainable development, The FTA was hammered out over the course of three years and 14 official rounds of mid and high level talks. However, it should be noted that whilst pivotal points of the deal have been finalised, the binding legal texts have yet to be ironed out and will only be completed in early 2018. When it takes effect, the EU-Vietnam FTA will eliminate tariffs in over 99% of tariff lines with additional quotas and tariff reductions for the remaining goods and services. The completion of such an FTA has long reaching implications, setting the stage for future agreements with other nations in the ASEAN region.

The pact covers a plethora of important planks, including the trade in goods, rules of origin, customs and

APR – JUN 2016 | BIA@FMM | 15 UPDATES

Strengthening Ties with Singapore

The 14th joint meeting of the Malaysia- Singapore Business Council (MSBC) was held on February 24, 2016 in Johor. Hosted by Eco World Group, the joint meeting was co-chaired by Dato’ Lim Say Chong from Malaysia and Dr Robert Yap from Singapore. FMM is the secretariat to MSBC. Highlights of the meeting are as follows: • The Council had proposed to the Government to expand the scope of the Malaysia Singapore Third Country Business Development Fund (MSBF) to cover participation in international exhibitions. • A joint trade mission to Kazakhstan would be organised to explore Group photograph of participants of the Malaysia-Singapore Business Council Meeting the business opportunities in Islamic held on February 24, 2016 in Johor financial services sector. The event would be partially funded under MSBF. • Problems faced by Malaysian lorry standardising the validity dates of road be able to practice aspects of the drivers at the Causeway such as tax for cars and heavy vehicles were Malaysian law through a Qualified differing methods of smoke emission also discussed and would be addressed Foreign Law Firm (a firm which may test procedures by the authorities to the Singapore authorities. be 100 per cent foreign-owned) or in both countries and limited facility • When the Trans Pacific Partnership an International Partnership with a to top up Autopass cards were (TPP) Agreement comes into force, Malaysian firm. highlighted at the meeting. Proposals Malaysia, as one of the signatories to • The construction of the proposed such as possible sharing of uCustoms’ the Agreement would be expected High Speed Rail connecting Malaysia database on Malaysian lorry drivers to open up its legal services sectors and Singapore would have a positive with Singapore authorities for purposes to TPP partner countries including impact on trade and investments in of advance risk assessment and Singapore. Singapore law firms would both countries.

FMM is the Authorised Body to Endorse CERTIFICATE of ORIGIN

Call Us at 03-62867200 or

e-mail: [email protected]

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Visit to Machinery Technology Centre, SIRIM BERHAD

A total of 32 representatives from FMM member companies were among some 100 visitors to the Machinery Technology Centre, SIRIM Berhad at Zurah Industrial Park, Hulu Selangor on March 9, 2016. The visit was also participated by representatives from ten other chambers.

The FMM delegation was led by Ir A K Woo, FMM Council member and Vice-Chairman of FMM SMI Working Committee.

The main objective of the study visit was to engage industry players in the machinery and foundry sector on the services and facilities offered at Machinery echnologyT Centre. During the visit, SIRIM Berhad indicated that they would like to have further engagement and discussions on the possible utilisation of the machineries and facilities for industrial Visitors looking at the facilities available at the Machinery Technology Centre, SIRIM Berhad training purposes or actual production.

FMM Business Delegation to Sino-Pack 2016, Guangzhou, China

The 23rd China International Exhibition on Packaging Machinery & Materials (Sino-Pack 2016) and China (Guangzhou) International Exhibition on Packaging Products 2016 (PACKINNO 2016) were the largest packaging exhibitions in China. Over 47 FMM representatives visited the joint exhibition which was held from March 2 – 4, 2016.

Being the largest show of its kind in China, Sino-Pack 2016 and PACKINNO 2016 gained substantial support from renowned exhibitors from China and from around the globe. Exhibitors specialising in automated machinery included ABB, KUKA, Fanuc, Staubli, Efort, Sinsun, GSK, Go-Well, Tech-Long, Yangsen, CSI PAC Foshan, Adept Technology, Universal Robots, Shanghai Triowin and Guangzhou Vanta. Mettler-Toledo, Ishida, Group photograph of the FMM delegates at the exhibition from March 2 – 4, 2016 in China Anritsu and Sesotec are the specialists in inspection and testing sectors. Colamark, Mingyu, SITI, Sino-Lion, Omori, Delegates were given the opportunity Other top-notch suppliers of packaging and Huituo. Zhiteng, Jingli , Hongrunfa, to visit the plant of Tech-Long Group, a products and materials included UNI-PAK, WEIDE , Foshan BSY , YALAN, leading equipment supplier in the Youngsun, Gurki, Schmalz, Hualian, Changyuan , Encolors , Acmepak and CGP. Chinese beverage packaging industry.

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Financing Facilities for Women Entrepreneurs

FMM, represented by Chairman of the • Wholesale and retail trade has the entrepreneur development. In FMM Women in Business Committee, highest women directors in Malaysia, general, the financing amount Noraini Soltan participated in the followed by finance & insurance/ is in the range of RM500,000 to dialogue session with Presidents of takaful activities, and manufacturing. RM2.5 million with a margin of Women Associations held on March 14, financing up to 100%. It is based • 2016. The Dialogue session, chaired by Limited Liability Partnership (LLP) is on Shariah financing concept for Dato’ (Dr) Hafsah Hashim, CEO of SME a hybrid between a company and the financing of fixed asset and Corp discussed the following: conventional partnership offering working capital with profit rate fundamentally the privilege of of BFR + 1.5% per annum (AMR). • There are 1,161,989 local companies limited liability accorded to the The financing tenure for the and 4,686 foreign companies partners of the LLP and the flexibility purchase of asset is up to ten years registered under Suruhanjaya of internal management. while working capital is up to Syarikat Malaysia of which 4,831,641 seven years and both includes are sole proprietors and 1,230,668 • BizWanita-I financing scheme was grace period. partnership businesses. launched on October 30, 2015. It is a collateral-free financing catered • • Selangor has the highest sole Skim Peningkatan Kapasiti dan especially to entrepreneurs and Keupayaan 2.0 (BAP 2.0) is an proprietorships owned by women business women for working capital followed by Johor Bahru and integrated assistance programme and/or asset acquisition purposes at to enhance capabilities of small and Kuala Lumpur. The number of sole the financing rate from BFR + 0.20%. proprietorships owned by women is medium enterprises through business Financing amount is from RM20,000 advisory and financial support. 35% compared to men. to RM300,000 with tenure of seven • There are 302,336 women directors years financing directly from CGC. out of 999,866 directors in Malaysia. • The Women-Leaders Entrepreneurship • Over 32% of directors in private Acceleration Programme aimed companies are women, 16% in to provide financing packages for public companies and 9% in public women entrepreneurs for business listed companies. expansion and training on

SOLAS – Mandatory Requirement to Verify Weight of a Container Carrying Cargo

The International Maritime • Method 1– Weighing of container Marine Department of Malaysia is Organization (IMO) has amended together with lashing and dunnage free of charge and is renewable every the Safety of Life at Sea (SOLAS) materials after it has been packed two years. Convention which requires a container by shipper or third party; or to have a verified weight before it is Failure to comply with the new • packed and loaded onto a ship for Method 2 – Weighing all the requirement will result in the container export. This regulation will be made cargo individually before stuffing, not being loaded onto the ship. effective on July 1, 2016. weighing the lashing and dunnage The complete guidelines can be materials and adding to tare weight downloaded from http://www.marine. With the amendment to the of container. gov.my/jlm/pic/article/service/notice/ Convention, the shipper is responsible msn/2016/NPM022016.pdf for the verification of the packed Shippers must declare the preferred container’s weight and must ensure method to be used when packing To prepare FMM members for the that the verified weight is indicated in containers. The authorised person implementation of SOLAS, two seminars the shipping documents sufficiently in to verify the containers must be were organised on March 29, 2016 advance to the ship master/terminal indicated in the registration form to and April 28, 2016 which attracted over representatives. Shippers can use two be submitted together with a copy 250 participants. For enquiries, please methods which can be selected to of the identity card of the person to contact Nur HafizahSulaiman of the determine the container’s weight for the Marine Department of Malaysia FMM Secretariat at telephone number: 03- shippers as follows: before June 1, 2016. Registration with 62867200 or e-mail: [email protected].

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UPDATES

Counterfeits: You’ve Built Your Turf, Now Guard It!

So, you have encountered counterfeits of should be considered. If the copycat suspected to be counterfeits. The your products in the market. For many appears to be a fly-by-night operator, Enforcement Division may carry out people, this discovery brings a bitter- then it is unlikely that the copycat such investigations and seizures of sweet feeling to the fore. would respond to the letter. their own accord, or upon receipt of a complaint by the registered trade On the one hand, having copycats means Typically, the letter would contain mark owner. that you have a product that consumers demands requiring the copycat to, covet. It proves that there is a demand among others, cease all dealings with If your trade mark is registered in for your products. On the other, the the counterfeits, deliver up all stocks Malaysia, you may consider submitting copycat is profiting from the sale of the of the counterfeits, furnish information an application to the Enforcement counterfeits, to your detriment. If left and/or documents of suppliers and Division to include your trade mark in unchecked, they could edge into your turf customers, pay compensation and costs. their “Basket of Brands”. The Basket of and eventually displace you altogether. Sending the letter affords the copycat Brands comprises a list of trade marks the opportunity to come to the table to which the Enforcement Division How, then, do you prevent the to negotiate a settlement with you. would pay special attention when the copycats from taking unfair advantage officers are out in the field. If the of the branding that you have built for Should the letter not yield the desired Enforcement Division has grounds to your product? result, then your next step would be believe that the goods bearing a trade to consider commencing a suit in the mark in the Basket of Brands are Foresight court against the copycat. counterfeits, they have the power to During the developmental stages and seize the goods and conduct further before launching your product, you Commencing a Civil Action investigations. You should be aware should investigate into the possibility of in Court that as a brand owner, you are obliged protecting the intellectual property rights For a trade mark that is registered, you to cooperate with the Enforcement subsisting in your product and branding. would be able to initiate an action in Division and to assist them in verifying the High Court against the copycat for the authenticity of the goods seized Consult with your trade mark agent to trade mark infringement under the within a specified timeline. select a trade mark that is both distinctive Trade Marks Act 1976. If your trade mark and defensible. Apply to register your is unregistered, but you have extensive If you are aware of the business trade mark for the goods and services use of the mark, then it may be possible premises of the copycat or storage that you are intending to trade in. to bring an action for the common law location of the counterfeits, as a tort of passing off. registered trade mark owner, you The importance of this exercise should would be able to lodge a complaint never be underestimated, as your ability If infringement or passing off is with the Enforcement Division and to enforce your rights in your trade established at the end of the trial, the to request that they conduct a raid mark and take the copycat to task court has powers to order, inter alia, at the target location to seize the would depend on it. an injunction to restrain the copycat counterfeits and other documents Gearing Up for Battle from dealing with the counterfeits, relating to the production, supply and deliver up all stocks of the counterfeits, “If you know your enemies and know distribution of the counterfeits for furnish information and/or documents further investigation. yourself, you will not be imperiled in a of suppliers and customers, pay hundred battles” – Sun-tzu compensation and costs. Upon conclusion of the investigation, Before you make your first move, you if the goods are found to be Any party who is not satisfied with the counterfeits, the Enforcement would need to gather intelligence on decision of the High Court judge may the copycat. Division may recommend to the appeal to the Court of Appeal. Public Prosecutor to charge the Is it a genuine business enterprise? Or is it a copycat for committing an offence Enforcement Raid under fly-by-night operator? Is it a manufacturer, under the Trade Descriptions Act 2011 Trade Descriptions Act 2011 importer, distributor or retailer? or offer to compound the offender. Enforcement Division of the Ministry of While you may not have a say in the The answer to these questions may Domestic Trade Cooperatives and decision of the Enforcement Division, weigh in on your considerations on Consumerism (“Enforcement Division”) you would have the right to initiate which course of action to pursue has wide powers under the Trade civil proceedings against the copycat against the copycat. Descriptions Act 2011 to investigate into for trade mark infringement and/or false trade descriptions, which includes passing off, and to claim for Sending a Cease and Desist Letter the use of a registered trade mark by an compensation and costs from them. If your copycat appears to be a genuine unauthorised third party such as a business enterprise, then engaging copycat. These powers include entering Source: SKRINE lawyers to issue a letter to the copycat business premises and seizing goods

22 | BIA@FMM | APR – JUN 2016 Kedah/Perlis The Branch’s activities included 1Malaysia Perlis participants. More Appreciation & Networking Hi-Tea, a the following: than 100 participants from various graduation ceremony was also held for the graduates from the SL1M Perlis • NCIA-FMM SL1M Perlis Apprentices agencies and villagers took part in Apprentices Projects 2016. Projects 2016 from January 4, this CSR project. • 2016 to February 17, 2016. • FMM Appreciation & Networking Workshop on Fire Safety: Compliance The Branch successfully Hi-Tea 2016 on February 16, 2016. and Best Practices on March 29, completed a 45-day soft skills The event was attended by 2016. Speakers from BOMBA Kedah, training for 50 unemployed 150 participants from FMM Sungai Petani Local Council, First Solar graduates from Perlis. The project member companies in Perlis and Malaysia Sdn Bhd and Etiqa Takaful was sponsored by the Northern representatives from Perlis State briefed and shared their best Corridor Implementation Authority Agencies . In conjunction with the practices at the Workshop. and supported by Skim Latihan 1Malaysia Secretariat and State Economic Planning Unit. • Seminar on Getting Started with uCustoms on February 4, 2016. The seminar, officiated by Mohd Noor Yusoff, Deputy Director of Department of Customs Kedah was attended by 45 participants. • CSR Project with villagers of Kampung Ujung Bukit Kangar Perlis on February 13, 2016. The project was organised in collaboration with the Northern Corridor Implementation Authority, Department of Agriculture Perlis and Skim Latihan Group photograph at the FMM Appreciation & Networking Hi-Tea 2016 on February 16, 2016

Negeri Sembilan

The Branch’s activities included the following: • Visit to Kualiti Alam Sdn Bhd on January 26, 2016. • Seminar on Customs Tax Incentives (Exemption) Under Section 14.2 Customs Act 1967 on February 23, 2016 which was attended by 20 participants. It was conducted by Goh Kin Siang, retired Deputy Director of Customs. • Courtesy call on YAB Dato’ Seri Utama Haji Mohamad bin Haji Hasan, Menteri Besar Negeri Sembilan on March 16, 2016. The Branch’s delegation was led by its Chairman, Datuk Mohamed Group photograph of the participants of the Customs Tax Incentives (Exemption) Arsad Bin Sehan. Under Section 14.2 Customs Act 1967 seminar

APR – JUN 2016 | BIA@FMM | 23 FMM IN THE NEWS

Penang The Branch’s activities included the following: • Seminar on Getting Started with uCustoms: A New Customs Online System for Declaration, Payment & Clearance on January 21, 2016. Facilitated by Mohd Firdaus bin Othman, Norfazliza Binti Zakaria and Lee Pei Fang, Customs Officers of Royal Malaysian Customs Department, the seminar was attended by 66 participants. • Branch Committee members attended the 34th World Customs Day 2016 on January 28, 2016. The participants of the seminar on January 21, 2016 paying attention to the speakers from the Royal Malaysian Customs Department • Meeting between the Branch Committee Chairman Dato’ Dr Ooi Eng Hock and H.E. Dr. Makio Miyagawa, the Ambassador Extraordinary and Plenipotentiary of Japan to Malaysia on April 28, 2016. The meeting, which exchanged views on the current business conditions in Malaysia and potential forms of cooperation between Japanese and local firms was also attended by Hiroko Taniguchi, Deputy Consul-General of Japan in Penang and Gor Siew Yeng, Associate Director of Toray Industries (Malaysia) Berhad and FMM Council Member. From left: Dato’ Dr Ooi Eng Hock, H.E. Dr. Makio Miyagawa, Gor Siew Yeng and Hiroko Taniguchi

Group photograph of Branch Committee members with representatives of the Royal Malaysian Customs Department

24 | BIA@FMM | APR – JUN 2016 Perak The Branch’s activities included the following: • FMM Night 2016 on January 29, 2016. A total of 620 members and guests attended the event. • Participated in the Seminar on Finnish Business Partnership Programme – Bridging Business Between Finland and Malaysia on March 17, 2016. It was organised by MIDA Perak in collaboration with Invest Perak. A total of 15 FMM members attended the seminar. • Branch Committee Chairman Group photograph of the Branch Committee members during the Branch’s FMM Night 2016 Dato’ Gan Tack Kong and Branch Committee Members received a courtesy visit from YB Dato’ Seri Ong Ka Chuan, Minister of International Trade and Industry II on February 22, 2016. Among others issues discussed included investment opportunities in the State. • A half-day briefing on Combating Dengue Fever in Perak on February 25, 2016. It was jointly organised with the Department of Health Perak. The briefing was attended by 84 employers. • Meeting between Universiti Tunku Abdul Rahman (UTAR) From left: YB Dato’ Seri Ong Ka Chuan Minister of International Trade and Industry II, Dato’ Gan Tack Kong Branch Committee Chairman and David Ho, Managing Director of Hovid Berhad and FMM on March 23, 2016 to discuss renewal of Memorandum of Understanding. It was chaired by the Vice-President of UTAR Prof. Ir. Dr. Lee Sze Wei while the Branch was represented by its Vice-Chairman Edmund Wong.

Dr. Thiruchelvam Mathiarasu Deputy Director, Vector Unit, Public Health Division, Perak Health Department, presenting a paper on combating dengue in Perak

APR – JUN 2016 | BIA@FMM | 25 FMM IN THE NEWS

Selangor The Branch’s activities included the following: • FMM Kuala Langat & Hulu Langat Regional Committees covened two meetings on January 13, 2016 at Lam Soon Edible Oil Products Sdn Bhd and at Majlis Perbandaran Kajang. • FMM-Monash University Malaysia Entrepreneurial Internship and Training Programme 2016 1st Module commenced on January 23, 2016 at Monash University Malaysia. • Bi-monthly HR/IR Forums were held on January 21 and March 17, 2016. From left: YB Dato‘ Teng Chang Khim, Selangor Senior State Executive Councillor for • Seminar on All About Redundancy Investment, Industry & Commerce, Small and Medium Enterprise (SME) and Transportation, and Retrenchment on January 27, YAB Dato‘ Seri Mohamed Azmin Bin Ali, Selangor Menteri Besar, Dato‘ Soh Thian Lai, Branch Committee Chairman and Dato‘ Dr Ir Andy Seo, Vice President. 2016. It was conducted by FMM HR/IR advisor, Heng Poh Suan. Including GST Treatment for LMW to exchange views and updates on • The 1st FMM Selangor Security and its Operational GST Compliance security matters especially related to Management Working Sub- from February 23 – 24, 2016. The industrial areas in Shah Alam. Committee Meeting was held on seminar was facilitated by a consultant, January 28, 2016. It was chaired • Courtesy call on the Deputy Director R. Jeyasingam. by Dato’ Ir Hj Ahmad bin Hasan of Tourism Malaysia Selangor, Saimah with representatives from the • On February 25, 2016, the Branch Sulaiman by the Branch Committee Bahagian D9 and Jabatan in collaboration with MITI organised Vice-Chairman Dato’ Goh Boon Kim, Pencegahan Jenayah dan a half-day briefing on Preferential on March 3, 2016. Keselamatan Komuniti, Ibu Pejabat Certificate of Origin. 40 participants • Seminar on Accounting: Preparation Polis Kontijen Negeri Selangor. from 17 member companies for Corporate Tax Declaration to attended the briefing facilitated by • FMM Klang Regional Committee Inland Revenue Board conducted by Sazatul Faeza Alias, Principal Assistant organised a dialogue session Adrian Yeo PLT on March 15, 2016. Director of MITI. with the OCPD of Klang Utara, • The Branch in collaboration with • Organised the 4th and final module of Tuan ACP Mohd Yusoff Mamat MIDA Selangor and MITI, organised the FMM-Monash University Malaysia and senior police officers of a half-day briefing on The Way Entrepreneurship & Internship Klang Utara on February 3, 2016. Forward with Trans-Pacific Partnership Programme on February 27, 2016 FMM’s delegation was led by the Agreement for 67 participants from Regional Committee Chairman • Dialogue session with Menteri Besar 34 member companies on March 15, Dato’ Goh Boon Kim. of Selangor, YAB Dato’ Seri Mohamed 2016. Abdul Samad Ibrahim, Branch • On February 16, 2016, Monash Azmin Bin Ali on March 1, 2016 . Committee Vice-Chairman delivered University Malaysia led by It was also attended by YB Dato’ Teng the welcoming remarks. Chang Khim, Selangor Senior State Professor Helen Bartlett, President • Branch Committee Vice-Chairman Executive Councillor for Investment, and Pro Vice-Chancellor and Dato’ Nathan K Suppiah attended the Industry & Commerce, SME and Ong Pang Yen, Executive Director Soft Launch of Selangor International Transportation, Dato’ Dr Ir Andy Seo, hosted a Chinese New Year Expo 2016 on March 15, 2016. Networking Lunch for the Vice-President and 85 representatives • Branch Committee members. from member companies. Seminar on Goods and Services Tax – Updates and Changes on March 22, • • Shah Alam Regional Committee led Seminar on Licensed Manufacturing 2016 conducted by Wan Leng Whatt, by Lim Heng Moh paid a courtesy Warehouse (LMW) – Everything You former Senior Deputy Director of call on ACP Shafien bin Hj Mamat, Need to Know About Its Facilities, Royal Customs Department. Trade Compliance & Latest Updates Shah Alam OCPD on March 3, 2016

26 | BIA@FMM | APR – JUN 2016

FMM IN THE NEWS

Johor The Branch’s activities included the following: • HR/IR Forum on January 4, 2016 which was facilitated by HR/IR Advisor, Heng Poh Suan with 20 participants. • The Branch Committee Chairman Capt Abdullah Shariff and Branch Committee Vice-Chairmen Saw Seong Ho, Gerard R Sankar and Eiap Eng Khoon attended a breakfast meeting with Dato’ Sri Mustapa Mohamed MITI Minister, before briefing on TPPA was held on January 10, 2016. • 4th Johor Career & Postgraduate Expo 2016 held from January 17 – 18, 2016. MITI Minister Dato’ Sri Mustapa Mohamed (3rd from left) with the Branch Committee Members. • Seminar on Understanding the BOMBA Requirements & Regulations for Industries on January 27, 2016. Over 52 members attended the seminar which was conducted by Mohd Rizal Buang and Razali Aw Mat Saleh from the Fire and Rescue Department, Johor. • Site visit to i-Park, Kulai on January 28, 2016. The visit, participated by 25 participants, was organised in collaboration with AME Development Sdn Bhd and led by headed by Eiap Eng Khoon, Branch Committee Vice-Chairman. Group photograph of the FMM delegates at i-Park, Kulai

Sabah Looking for Trade and Business Information The Representative Office’s activity included the following: on Malaysia? • Workshop on Basic Provision on Employment under The Sabah Labour Ordinance from January 19 – 20, 2016. The workshop was facilitated by Tan Gake Hua, retired Director of Labour Department Sarawak. Look to FMM. Call 03-62867200

28 | BIA@FMM | APR – JUN 2016 Malacca

The Branch’s activities included the following: • Membership Networking Session on January 12, 2016. During the session, Csafrizan Hussin, the National Business Development Manager from FMM’s new member company Recall Malaysia Sdn Bhd briefed on their data storage facilities. • Courtesy visit to the office of the Director of Immigration Department, Malacca, Mohd Fauzi Abdullah on January 20, 2016. The visit was led by the Branch Committee Chairman, Datuk Jeffery Ong. • Courtesy visit to the office of the Director of Labour Department, Melaka, Suraiya Ch’ng binti Abdullah on February 16, 2016. Human Resource Management Sub-Committee Chairman, Yeo Cheng Por led FMM’s delegation. • Seminar on Updates on Recent Tax Amendments on February 22, 2016. Yeo Cheng Por, Human Resource Management Sub-Committee Chairman (right) presenting Yong Mei Sim, former Principal Assistant a token of appreciation to Suraiya Ch’ng binti Abdullah, Director, Labour Department, Malacca Director facilitated the programme.

The delegation from the Branch together with the Director of Immigration Department, Malacca, Mohd Fauzi Abdullah (front row 3rd from right) and his officers

APR – JUN 2016 | BIA@FMM | 29 X FMM IN THE NEWS

Eastern The Branch’s activities included the following: • Seminar on Import & Export Management: The Closer Look on January 28, 2016. It was facilitated by Dr. Khairudin Bin Ahmad. Over 17 participants attended the seminar. • Two seminars titled Kesedaran Pencegahan Kemalangan Berdasarkan Konsep and Mindset & Behaviour were held on February 1, 2016 and February 2, 2016 respectively. Abdullah bin Mohd Zain from Participants of the Seminar on Amendment to the Income Tax Act 2014: DOSH Pahang and Mohd Noor bin New MTD Rules held on March 3, 2016 Abdul Majid were the speakers for the seminars. • Seminar on Amendment to the Income Tax Act 2014: New MTD Rules was held on March 3, 2016 which attracted a total of 28 participants. Alsmak binti Abdullah from Lembaga Hasil Dalam Negeri Malaysia, Pahang was the speaker for the seminar. • Courtesy call on Tuan Haji Zainal Abidin bin Hussin, Director of Unit Perancang Ekonomi Negeri (UPEN) Terengganu on March 17, 2016. The Branch’s delegation was led by its Branch Committee Meeting with the Director of UPEN, Terengganu, Tuan Haji Zainal Abidin bin Hussin Chairman, Dato’ Haji Mas’ut bin during the courtesy call on March 17, 2016 A. Samah.

30 | BIA@FMM | JAN – MAR 2016