business in action jul - sep 2018 VOL 3/2018 www.fmm.org.my

KDN NO.PP 16730/08/2012 (030376)

Upskilling+ Employees With skills shortage sharpening employers should consider retraining their workforce PG. 10 FMM 50th Anniversary PG. 14 Tech Talk: 3D Printers Shape the World Growing Role PG. 16 FMM – MIER Business of Robotics in Conditions Survey Manufacturing PG. 26 Touring Tasmania’s Golf Courses PG. 48

PAGE Contents 4 july - september 2018 Volume 3/2018

PRESIDENT’S THE COMMUNICATOR: 2 MESSAGE 20 Identify the PAGE social media channels COVer Story: Role best suited for your 4 of robotics in business 10 manufacturing It remains as one of the most Robots, increasingly play a pivotal cost-effective means of marketing part in improving efficiency on the products and services factory floor BRAND BUILDER: FEATURES 24 Branding tips for The growing manufacturers 10 importance of How to leverage on your upskilling employees company’s strengths in the With skills shortage sharpening marketplace employers should consider retraining their workforce FMM – MIER 26 Business FMM 50TH Conditions Survey 14 ANNIVERSARY NEW Tech Talk: Shaping 30 MEMBERS 16 the world 3D printing technology fmmea revolutionises product design like 32 interview never before PAGE PAGE 16 24 fmm Malaysia 36 news 51 projected to become top-25 BRANCH NEWS economy by 2050 39 & EVENTS The country needs to invest more in technology and Travel education to improve its 48 Golf touring in ranking Tasmania EVENT 52 CALENDAR Message from the President

One of the suggestions being put forward by the Education Ministry’s taskforce on TVET headed by YB Nurul Izzah Anwar is by adopting international best practices as exemplified by Penang which has initiated the implementation of the German Dual Vocational Training. Perhaps, we can take a feather from the cap of our neighbours, Indonesia, who have made some breakthroughs in enhancing the image and attractiveness of TVET, among others, by increasing the share of vocational education and training with a target ratio between TVET and general high school education of 70% to 30% in 2025. Another step for enhancing the image and attractiveness of TVET is establishing more higher education within vocational fields as has been done in China, or increasing the permeability from TVET to higher education as has been done in South Korea or India. There will be surely a lot of proposals on the table and it is our view that a collective effort from all stakeholders from Government to companies will help establish TVET on a firm Making TVET a logical choice for footing in the not too distant future. students FMM also strongly believes that immersion into TVET “Our progress as a nation can be no swifter than our progress should start as early as the secondary education level. This in education. The human mind is our fundamental resource.” is one of the reasons for FMM’s on-going collaboration with Those words belong to the late US President John F. the Technical Vocational Education Division of the Ministry Kennedy, a strong proponent on the values of education and of Education via the TVET Apprenticeship Programme. The can be applied to our own situation here in Malaysia. programme targets students who have completed their With the onset of Industry 4.0, it becomes very important Pentaksiran Tingkatan Tiga (PT3) i.e. at Form Four (aged for our workforce to stay relevant with smart manufacturing 16). The programme structure involves six consecutive technologies. months of theory at Vocational Colleges followed by six Education remains an important channel, specifically the consecutive months of practical training with an assigned role of Technical Vocational Education & Training (TVET) in manufacturing company each year for two years. Students relation to smart manufacturing. complete the Apprenticeship Programme at age 17 or 18. The most crucial aspect in promoting increased They are awarded at least Level 2 Malaysia Skill Certificate / digitalisation, artificial intelligence, Internet of things and Sijil Kemahiran Malaysia and also the SPM(V) if they sit for their other elements of Industry 4.0 within our industrial sector lies SPM examination. Employers who have been conducting the in having capable, technologically skilled workers. practical training for the two years can recruit their students as This is where TVET needs tremendous support and employees. involvement from the industry itself as we must identify our The Apprenticeship Programme is currently on a needs more accurately so as to direct proper legislation pilot run involving five companies and three Vocational and policies that can help the pathway for students to gain Colleges in the Klang Valley namely Klang, Setapak and certification and gain employment in the long run. Sungai Buloh Vocational Colleges. FMM is already in The Government is already setting the wheels in motion discussion with the Ministry of Education to expand the to redress the skills gap as well as to raise the image of TVET collaboration to other states after completing the pilot at which until today plays a secondary role to general education. the end of this year. The Asia Technical Vocational Education and Training I encourage more members to sign up for our Experts Forum 2018 held in July concluded with Education Apprenticeship Programme. Minister YB Dr Maszlee Malik promising to make it the first choice for students in Malaysia. Dato’ Soh Thian Lai

cover story

Role of robotics in manufacturing Robots, increasingly play a pivotal part in improving efficiency on the factory floor

The world of robotics has come a long and sustainable solutions and products. Today’s new and future robots will way since British engineer William The robotics industry in itself is have voice and language recognition, Gary Walter developed Elmer and flourishing. Leading research groups access to super-fast communications, Elsie in 1948. These were tiny robots are reporting that the robotics industry data and libraries of algorithms, learning using simple electronics that were is growing more rapidly than expected. capability, mobility, portability and programmed to find their charging BCG (Boston Consulting Group) is dexterity. stations once power was running low. conservatively projecting that the These new precision robots can sort The foundation, however for today’s market will reach US$87 billion by 2025. and fill prescriptions, pick and pack robots and the first industrial robot was Tractica, on the other hand is more warehouse orders, sort, inspect, process laid by American inventor George Devol optimistic incorporating the robotic and handle fruits and vegetables, plus in 1954. He conceived Unimate which and AI (artificial intelligence) elements a myriad of other industrial and non- was a design for a mechanical arm of the emerging self-driving industry, is industrial tasks, faster than humans, yet patented in the same year and granted forecasting the market will reach US$237 all the while working safely alongside in 1961. billion by 2022. them. Today’s robotics are breaking Both research firms acknowledge Essentially, industrial robots usually ground on new technologies and that the robots of yesteryear — which consist of a jointed arm (multi-linked capabilities. The role of the robot is no were blind, big, dangerous and difficult manipulator) and an end effector that is longer to simply provide brunt force in to program and maintain — are being attached to a fixed surface. One of the manufacturing but to extend and work replaced and supplemented with newer, most common type of end effector is a with humans to create superior, usable, more capable ones. gripper assembly.

4 BIA @ fmm n jul - sep 2018 The International Organisation for Standardisation (ISO) gives a definition of a manipulating industrial robot in ISO 8373-”An automatically controlled, reprogrammable, multipurpose, manipulator programmable in three or more axes, which may be either fixed in place or mobile for use in industrial automation applications”

Applications of robotics in manufacturing Industrial robots can be found in in a diverse range of industries including automotive production, packaging, electronics, automated guided vehicles, just to name a few. Over the last three decades, automobile factories have become dominated by robots. A typical factory contains hundreds of industrial robots working on fully automated production lines, with one robot for every ten workers. On an automated production line, a vehicle chassis on a conveyor is welded, glued, painted and finally assembled at a sequence of robot stations. Industrial robots are also used extensively for palletising and packaging of manufactured goods, for example for rapidly taking drink cartons from the end of a conveyor belt and placing them into boxes, or for loading and unloading machining or lasers, are used to transport industrial robots at work around the centres. goods around large facilities, such world – one million more robots than Mass-produced printed circuit as warehouses, container ports, or in 2015. That reflects a compounded boards (PCBs) are almost exclusively hospitals. annual growth rate of 12%. 70% of those manufactured by pick-and-place The International Federation of robots work in the automotive, electrical robots, typically with SCARA Robotics IFR) remains the organisation and electronics and metal/machinery manipulators, which remove tiny that connects the world of robotics industries. In 2015, growth occurred in electronic components from strips or globally. Their members come from the electronics industry, which boasted trays, and place them on to PCBs with the robotics industry, national or an 18% rise; the metal industry posted great accuracy. Such robots can place international industry associations and an increase of 16%, with the automotive hundreds of thousands of components research and development institutes. sector growing by 10%. per hour, far out-performing a human in The federation represents over 50 Worldwide sales of industrial robots speed, accuracy, and reliability. members from more than 20 countries. set a new record in 2015: 254,000 units An intelligent AGV (automated The IFR statistical department is the sold; 12% more than 2014. 66,700 units guided vehicle) drops-off goods primary global resource for data on were sold in China of which 20,400 were without needing lines or beacons in the robotics. It was established as a non- made in China. workspace. profit organisation in 1987. Asia is the strongest growth market Mobile robots, following markers The IFR estimates that by the end with 156,000 units for the region, a 16% or wires in the floor, or using vision of 2019, there will be around 2.6 million increase over 2014, but that figure is

BIA @ fmm n jul - sep 2018 5 cover story

much lower than the 27% projected. The in artificial intelligence, computer innovation, thus disrupting and rate of growth of China-made robots vision, navigation, MEMS sensor, and changing the paradigm of business penetrating the market also did not semiconductor technologies continue operations in many industries,” grow at the projected rate but it did to drive innovation in the capability, Zhang said. grow at a healthy 31% rate. performance, autonomy, ease of use, “IDC encourages companies to With three national 10-year plans, and cost-effectiveness of industrial and “embrace and assess how robotics can the current one entitled “Made in China service robots,” said Jing Bing Zhang, sharpen their company’s competitive 2025,” Beijing is attempting to stimulate research director of worldwide robotics edge by improving quality, increasing the in-country robotics industry on two at International Data Corporation, operational productivity and agility, levels: that manufacturers use robots to Asia/Pacific. and enhancing experiences of all increase their productivity and global “Robotics will continue to accelerate stakeholders,” he added. competitiveness and as robot and robotic components manufacturers to reduce the amount of foreign purchases of robots. This national plan applies to service robots too. The IFR suggested that the trends fuelling this steady increase of robot installations will be led by the collaboration of humans and machines, simplified applications, and lightweight and relatively portable robots. Two- armed robots, mobile solutions and the integration of robots into existing environments will also contribute as will an increased focus on modularity and lower overall prices. “Technological development George Devol, inventor of first industrial robot

6 BIA @ fmm n jul - sep 2018

business feature

The growing importance of upskilling employees With skills shortage sharpening employers should consider retraining their workforce

There will always be crossroads in a experience. However, the longer they While the shortage of skill continues company’s evolution when they will are in the job the harder it would seem to sharpen, many employers will have to have to make decisions on man and for them to adapt to new demands in engage these issues at some point. One machinery. While the latter is only a the workplace. of the methods being used to tackle this question of type of upgrade, the former With technology becoming includes the upskilling of employees. is a more formidable and perplexing an ingrained fact of industrial life, In an article on talent development challenge. many companies will eventually by Nikos Andriotis posted on Employees who are long in the find themselves left behind and less www.efrontlearning.com, the writer tooth may be secure in their work site competitive if they refuse to innovate states the rising cost of hiring staff knowledge after years of on-the-job their operations. to replace ones who left, should be

10 BIA @ fmm n jul - sep 2018 some of the reasons for companies to Why Upskilling Training Customer Satisfaction consider retraining existing employees. Should Be The Focus If a company has happy employees, it is “Over time, these costs can add up Employee Retention far more likely to have happy customers. and affect the corporate bottom line. Employees who are challenged to Content employees are typically That’s where upskilling training can develop and grow are often the more invested in the company, they come in as an alternative to bringing in happiest ones at an organisation. If promote the corporate brand within the new staffers,” he said. a company strives to retain tenured organisation and to customers. Typically, “Smart organisations can alleviate employees, it will prove that the happy customers tend to be loyal some of these financial pains by company is making a solid investment customers as well. investing in tenured employees to in the people, which is bound to boost retain them in the organisation. Stellar morale and productivity. The Bottom Line employees, the ones with great morale Employees who are challenged to It is expensive to lose and replace and high productivity, can be hard to grow outside of their roles tend to get tenured associates. The company is come by and organisations understand excited about what might be around the losing the investment it made in the the benefits of finding ways to retain corner for them. current individual, not just because these individuals. “Fortunately, companies can invest in a process known as upskilling to help retain current employees. Upskilling is the process of teaching current employees new skills. “This will allow the employees to move into bigger and better jobs in the organisation. Investing in upskilling employees pays off in the long run, as the company saves money on hiring new associates and boosts the morale of tenured employees at the same time.”

BIA @ fmm n jul - sep 2018 11 business feature

of any talent development it paid for, to the success of the upskilling training instructional designers on the team but also because when that individual program. who would benefit by enrolling in an leaves, they take all their knowledge Employees can identify new skills intensive eLearning certificate program. and experience with them. and competencies that resonate with You may be looking at the expense Now the company has to pay not them as opposed to being told what of upskilling training and decide it isn’t only to advertise the new role, for the they need to learn. worth the investment. But it doesn’t recruitment process, the time it takes have to cause a tremendous financial to interview candidates, any hiring Allocate Time During The Workday setback. Companies can upskill bonuses that new individual may require Once your employees create their employees on a shoestring budget and also the time it will take the new individual development plan, allow through creative solutions. There individual to catch up in terms of the time during the workday for employees are many ways to reskill corporate job requirements. Simply losing one to upskill. A possible scenario could learners using a classroom setting, employee can be a hit on the bottom include an employee who wants to take online learning content, or using line. a communications course. Allow them to current employees to assist in creating leave early to attend class or provide time upskilling training. Upskilling Strategies and a quiet space to take the class online. Some of the methods of upskilling In order to create robust upskilling training can be implemented through in the organisation, companies will Job-Specific Upskilling/Credentialing a range of ways including classroom need to devise a strategic plan. Programs training, virtual classroom training, Having a strategy will help to convince Offer employees job-specific training microlearning (web-based training management within the organisation to enhance their current skills. For modules), mentors and subject master and also gain support from the example, the company may have experts. employees themselves. specialty software used by only a small Upskilling training has an abundance sector in the organisation. Consider of advantages, from improving employee Personal Development Plans offering upskilling training on the motivation to company cost savings. It Encourage associates to build a software to employees in the company doesn’t have to cost an arm and a leg. Personal Development Plan that who may be interested in learning Following the credo – you reap what includes competencies that they want more about it. Also consider offering you sow – companies should take the to improve upon and skills they want credentialing programs, meaning time to invest in upskilling employees so to gain. Empowering your employees training that results in a professional that they stay and help the organisation to come up with their own plan is key certificate. For example, there may be to grow and thrive.

12 BIA @ fmm n jul - sep 2018 Malaysia’s mounting skills gap 97% of Malaysian employers in 2017 found it tough to find the right employees

According to a report carried in The affected throughout the year, she on business operations. Star on March 11, 2017, employers said, adding that employers are “When the efficiency of a business were facing challenges in recruiting encouraged to invest in the training is threatened, planning your business suitable talent. and development of staff and to strategy and your talent pipeline has The report included interviews become more strategic in their talent never been critical. The focus for many with recruitment experts, Hays, who management practices. businesses should be to build a highly concluded, among other things, that “Recruitment and retention of talented and productive workforce. To businesses in Malaysia are concerned talented employees will undoubtedly do so, companies need to ensure they that the continuing skill shortage will be one of the biggest challenges have access to the right candidates severely impact their operations facing employers this year, and if they are to benefit from emerging The 2017 Hays Asia Salary Guide heightens the need for a review of conditions,” Wright adds. reveals that 97% of employers in recruitment policies and procedures in Looking back over 2016-2017, Malaysia are still struggling to find the the midst of a war for top talent”. 54% of employers in Malaysia tried to skilled individuals they need. Interestingly, the survey shows combat skill shortages by upskilling “The ability to attract and retain candidates are highly mobile with 79% their employees, while 40% improved the best talents always provides of respondents in Malaysia willing to their attraction strategies. Only 6% a company with a competitive move countries to secure the right job. took no action. advantage, but in 2017 with skill Based on Hays survey, 69% of In skill short areas, 48% of shortages persisting and significant employers in Malaysia are concerned employers in Malaysia would changes and challenges on the they don’t have the right talent to consider sponsoring or employing a horizon, it is more important than achieve current business objectives. qualified candidate from overseas. ever,” said Hays Asia managing It also reveals that 48% of employers Across all countries, 59% of employers director, Christine Wright. in Malaysia believe skill shortages would consider employing or The skill shortage in Malaysia have the potential to hamper effective sponsoring a qualified candidate has been well documented and as business operations. A further 49% from overseas in areas where there business operations are likely to be expect shortages to have some impact are skills shortages.

BIA @ fmm n jul - sep 2018 13 50TH ANNIVERSARY

COME & JOIN US ON A HISTORIC OCCASION! The Federation of Malaysian Manufacturers (FMM) stands poised to celebrate the 50th Annual Dinner on Oct 9, 2018

It will be a night like no other, a time National Chamber of Malayan executives, government of cials and when we sit back and recall not just the Manufacturers and Malayan foreign dignitaries. glowing achievements but also, the Manufacturers Association on July 2, Perhaps, the greatest honour for trials and tribulations that came along 1968, a unison written in stone, one FMM and the manufacturing industry the way. that ensures the milestone remains an as a whole is the con rmed presence FMM, has weathered all storms indelible part of FMM’s glorious history. of YAB Prime Minister Tun Dr Mahathir coming out stronger and empowering The 50th Annual Dinner of course, Mohamed, who has since become a more companies to join and grow remains more than just plain nostalgia, much sought-after global entity. together. It has been a journey, a it provides a cordial atmosphere Make it a date, join us on October 9, collective one that all began in 1968. for networking of the highest order 2018 at the Sunway Pyramid Convention Arising from a merger of the between captains of industry, company Centre.

14 BIA @ FMM ■ JUL - SEP 2018

tech talk

Shaping the world 3D printing technology revolutionises product design like never before

16 BIA @ fmm n jul - sep 2018 Whenever anyone mentions 3D, the immediate reaction slated to exceed $21 billion. would point to movies and screens where this medium is best At this juncture, the outlook for 3D printing technology portrayed. burns bright. It seems destined to transform most major Similarly, 3D printing is often mistaken as a simple desktop industries and even lifestyles – influencing the way we live, EDM printer. That’s not the whole picture though. 3D printing work and play. is a multi-dimensional process that can be used for metal, The 3D printing industry encompasses many forms of fabrics, other uses and even for crime solving. technologies and materials. It can be divided into metal, Also called additive manufacturing it is a process of fabrics, and a whole host of other industries. For this reason, making three dimensional solid objects from a digital file. it’s important to see it as a cluster of diverse industries with a The creation of a 3D printed object is achieved using myriad of different applications. additive processes. In an additive process an object is created The most used materials are plastics, which generally by laying down successive layers of material until the object means FFF / FDM are the dominant forms of 3D printing is created. Each of these layers can be seen as a thinly sliced as of 2017. Over the years though metal printing has been horizontal cross-section of the eventual object. increasing. This is to be expected since there is a great deal Comparatively, 3D printing is the opposite of subtractive of research and development being put into the metal side of manufacturing which is cutting out or hollowing out a piece of additive manufacturing. Companies like Google and General metal or plastic with for instance, a milling machine. Electric have been investing in various technologies over Notably, 3D printing enables users to produce complex the years, possibly having seen the future potential of metal (functional) shapes using less material than traditional printing. manufacturing Applications of 3D Printing 3D Printing Industry Applications include rapid prototyping, architectural scale As in any industry, 3D printing is expected to grow rapidly. In models and maquettes, 3D printed prosthetics and movie 2013 the industry yielded US$3.07 billion in revenue and these props. figures are expected to reach US$12.8 billion by this year. Other examples of 3D printing would include Within the next two years the proceeds from the industry is reconstructing fossils in paleontology, replicating ancient

BIA @ fmm n jul - sep 2018 17 tech talk

artifacts in archaeology, reconstructing tutorials can be found on the Blender bones and body parts in forensic tutorials page. pathology and reconstructing heavily 3D modelling software are often damaged evidence acquired from crime made to suit the functions of the user’s scene investigations. industry. This has resulted in the rise of software suited to specific niches. As a How Does 3D Printing Work? result, there are software applications It all starts with the creation of a 3D on the market that cater to aerospace model in the computer. This digital or transportation, furniture design or design is for instance, a CAD (Computer fabrics and fashion, among many others. Aided Design) file. A 3D model is either Once the 3D model has been created from the ground up with 3D completed, the next step is to prepare it modelling software or based on data in order to make it 3D printable. About the Inventor generated with a 3D scanner. With a 3D Chuck Hull, 79, is the co-founder, scanner a digital copy of an object can Types of 3D Printing executive vice president and chief technology officer of 3D Systems. He be created. Technologies and Processes is the inventor of the solid imaging Currently, prices of 3D scanners There are several ways to 3D print. process known as stereolithography (3D Printing), the first commercial range from expensive industrial grade All these technologies are additive, rapid prototyping technology, and the STL file format. 3D scanners to $30 DIY scanners anyone differing mainly in the way layers are He is named on more than 60 U.S. can make at home. built to create an object. patents as well as other patents around the world in the fields of ion 3D modelling software come in Some methods use melting or optics and rapid prototyping. Hull was many forms. There’s industrial grade softening material to extrude layers. inducted into the National Inventors Hall of Fame in 2014 and in 2017 was software which can be expensive but Others cure a photo-reactive resin with one of the first inductees into the TCT Hall of Fame. also free open source software, like a UV laser (or another similar power Read: https://3dprinting.com/what-is- Blender, for instance. Beginner video source) layer by layer. 3d-printing/

18 BIA @ fmm n jul - sep 2018

the communicator

Ident ify the social media channels best suited for your business It remains as one of the most cost-effective means of marketing products and services

Social media has become one of the many users, visiting their favourite social Select the Best Social Media best ways for businesses to reach and media sites has become a part Platforms for Your Business engage their target audiences. Those of their daily routine. In fact, about The first step of successfully using social who are not currently using social media 75% of Facebook users will visit the media for business is selecting the best for business may be missing out on a site at least once a day. This presents social media channels for your company. powerful opportunity to reach new leads an excellent business opportunity for Though it may feel like it’s best to try to and grow their business. brands to use social media for business be everywhere at once, the truth is that According to Pew Research, 70% and increase engagement with their most businesses do not have the time of consumers use social media, and for target audience. or the resources to be active on every

20 BIA @ fmm n jul - sep 2018

brand Builder

Branding tips for manufacturers How to leverage on your company’s strengths in the marketplace

Branding has always been a big part of marketing to 1. Emphasize your unique capabilities consumers, but B2C companies are not the only ones who In addition to cost, manufacturing companies have to should consider how customers perceive them. It also plays a compete with one another in terms of service, logistics, role in marketing companies that operate on B2B models, like and other capabilities. So what can your company do manufacturers. that others can’t? Once you know, you can develop a So what is a brand, exactly? One expert marketer Seth unique brand position, which can lead to viable marketing Godin describes it as “the set of expectations, memories, opportunities. stories and relationships that, taken together, account for a Look at your full range of services and capabilities and consumer’s decision to choose one product or service over compare them to other manufacturers. You’ll discover another.” some that are better delivered by your firm than by anyone In other words, the gut feeling customers have about your else, and even a few no one else is offering. company is based on its history, reputation and differentiating Highlight them in your marketing materials, and focus characteristics, which a company can leverage to create a your efforts on the companies looking for those kinds of powerful brand for the business. capabilities. The end result will be a more targeted brand Differentiating a company can be easier said than done, strategy and a more loyal clientele. but the following branding tips will help more effectively to show potential customers why they should choose your 2. Build a strong visual presence company over your competitors. Think about some of the biggest companies in the world.

24 BIA @ fmm n jul - sep 2018 What’s the first thing that comes to mind? For many Get the word out about your company by establishing a people, it’s the logo, typeface or colour scheme. blog, publishing articles and information on other sites, A brand is made up of many elements – a strong visual and sharing testimonials and case studies that emphasize presence is one of them. Those firms who want to become your company’s focus. a preferred provider of manufacturing services, need to beef up their visual identity. 4. Focus on a niche segment Take time in developing your marketing tools. You want Very few companies can be all things to all people, so it to choose the right logo, font, colour scheme and tagline makes sense to build a brand strategy around the ability to for your type of business. You also want something that cater to a niche market’s specific needs. doesn’t call to mind another company, particularly a This will also make your company a more viable choice competitor. for the industries in need of such capabilities. Keep these If your current logo does not accurately reflect the way industries in mind when selecting target markets. you want potential customers to perceive your company, Start with your current client base. If you find they fall into it may be time to rebrand. This will require a substantial the same business categories, make those categories the investment of time and money, but will pay off in the long focus of your strategy going forward. run through a stronger market position. 5. Be credible, constant and consistent 3. Increase outreach A brand strategy can fail for all kinds of reasons, but most Building a strong brand requires being proactive. A strong of them fall under one common theme: the brand isn’t visual identity and a unique brand position will help, but believable. Consumers and businesses don’t like it when so does outreach beyond your usual circle of customers, delivery of services do not match the brand promise or the followers and advocates. new strategy does not fit with the company’s core mission If you want your brand to gain traction, you need to or history. make sure everyone knows about it – not just potential A brand strategy will succeed as long as it is s carried out customers, but the public at large. credibly, constantly and consistently.

BIA @ fmm n jul - sep 2018 25 FMM – mier business conditions survey MANUFACTURING ACTIVITY SLOWS DOWN IN 1H2018, EXPECTED TO PICK UP IN 2H2018 RESULTS IN BRIEF n Business activity slower in 1H2018 than 2H2017 and 1H2017 n Lower local sales and export sales in 1H2018 n Production volume, production costs and capital investment down in 1H2018 n Business to pick up in 2H2018 on expectations of higher sales, production volume & capacity utilisation n New products and services to be introduced to boost competitiveness in marketing and sales in the next 12 months n Upskilling of existing workers necessary to boost human resource competitiveness n Competitiveness in operations to be enhanced via reduction in operating costs n Pakatan Harapan (PH) manifesto for manufacturing sector should focus on reducing price pressures (Pillar 1), ensuring efficient and transparent government procurement (Pillar 2), promoting investment (Pillar 3) and improving integrity and weeding out corruption(Pillar 5) n Most respondents agree that a minimum wage of RM1,500 is an acceptable goal to be achieved in five years with 50% sharing of burden by Government. First implementation preferred in 2019 n The review of mega projects, renegotiated Belt & Road Initiatives and cancellation of High Speed Rail and Mass Rapid Transit 3 by Government have no impact on most manufacturers

26 BIA @ fmm n jul - sep 2018 Upskilling Reduce Introduce Step up Increase existing operating new products productivity production & workers costs & services training manage pricing

69% 68% 61% 59% 54%

top 5 business strategies to improve competitiveness in next 12 months top 5 priorities for government in next 12 months to support manufacturing

68% 57% 49% 48% 39%

Reduce Spur investment Ensure government Improve Support pressures & better policies, procurement integrity & economic causing trade via FTAs; produces best weed out growth – burdensome reduce regulatory value for taxpayer’s corruption attract FDIs, price burden, improve money – open develop increases education tender, use IT & SMEs, etc online systems * Percentages denote number of respondents

FMM – MIER Business Conditions Index Values

Indicators Current Looking Forward (Compared to 6 months ago) (Next 6 months) 2H2016 1H2017 2H2017 1H2018 1H2017 2H2017 1H2018 2H2018 Business conditions 102 101 115 97 100 110 120 124 Local sales 87 87 107 91 87 102 110 113 Export sales 109 109 113 99 111 117 117 122 Production volume 106 105 122 103 106 117 126 130 Capacity utilisation 107 103 118 99 106 111 118 127 Capital investment 110 113 116 109 116 120 122 117 Number of employees 104 109 110 107 110 114 117 116 Cost of production 167 165 164 150 165 153 157 145

The manufacturing sector slowed in 1H2018. 29% of the respondents just one point short of the optimism down in 1H2018 as production volume reported higher activity, down from threshold, indicating that export sales and capacity utilisation moderated in 42% and 35% in 2H2017 and 1H2017, have performed under par in 1H2018. line with lower sales, both local and respectively. Only 29% exported more this time, abroad. The cost of production was also down from 43% in 2H2017. Export lower. Recent recruitment and capital Local and Export Sales Less performance could have been affected investment were less active than last Forthcoming by external developments such as year. Notwithstanding the recent zero-rated the trade war between Malaysia’s top The sector is cautiously bracing for Goods and Services Tax (GST), local trading partners, the US and China. better times ahead on expectations sales did not perform as well in 1H2018 that more certainty on policy directions as they did in 2H2017, reflecting weak Production Volume and Capacity from the new government will unfold domestic demand. This is shown in the Utilisation Decline for businesses and the economy going index for current local sales which fell Production and capacity utilisation have forward. to 91 from 107 in the preceding period. shifted lower in line with the slowdown While most (42%) of the respondents in sales. Both the current indexes CURRENT BUSINESS ACTIVITY LESS did not experience any change in their for production volume and capacity ACTIVE sales locally, 34% reported selling less, utilisation fell nineteen points each After a heady 2H2017, manufacturing up from 28% in the prior survey. Those from the previous period to 103 and 99 activities toned down in recent months. who enjoyed higher sales reduced to in 1H2018, respectively. 32% and 28% From a reading of 115 in 2H2017, the 25% from 2H2017’s 35%. reported higher production volume and current business activity index lost The current export sales index was capacity in 1H2018, down from 45% and eighteen points to stand at only 97 equally lackluster. At 99, the index fell 42% in 2H2017, respectively.

BIA @ fmm n jul - sep 2018 27 FMM – mier business conditions survey

Cost of Production and Capital Both domestic and external particularly in the areas of marketing Investment Trend Down demands are expected to boost sales and sales, human resource Manufacturing costs were lower in the coming months. This is shown and operations. To boost their recently, in line with the zero-rated in the latest index for expected local competitiveness in marketing and GST. Reflecting this is the latest current sales which rose to 113, with 33% of the sales, the top three strategies that cost of production index which, at 150, respondents forecasting an increase respondents will implement are the has reduced by fourteen points from in local sales soon, up from 29% in the introduction of new products and 2H2017. Costs in 1H2018 were higher previous survey. The expected export services (61% votes), entry into new for 58% of the respondents, down from sales index strengthened to 122, with ASEAN markets (24%) and entry into 70% in 2H2017 and 72% in 1H2017. 38% projecting higher sales abroad in both new ASEAN and non-ASEAN 8% managed to lower costs, up from 2H2018, while another 46% responded markets (20%). 2H2017’s 6% and 1H2017’s 7%. neutrally. In the area of human resource, The current capital investment index Production volume is set to rise in majority (69%) of the respondents will shrank seven points from 2H2017 to anticipation of a pick-up in sales. The upskill their existing workers, while 109 in 1H2018, inferring that capital index for expected production volume 56% believe in productivity training investment has also taken a backseat rose to 130 from 126 previously, with to increase their competitiveness and for now. 27% increased their capital 46% of manufacturers planning to 39% prefer to hire more talents. To expenditure in 1H2018, down from 31% increase production in 2H2018. 38% increase the competitiveness of their in 2H2017 and 29% in 1H2017. 18% cut will not adjust their production volume operations, most respondents (67%) are back on investment recently, up from anytime soon, while 16% will likely considering reducing their operating 15% and 16% in 2H2017 and 1H2017, reduce theirs. costs, while 54% will likely increase their respectively. With business conditions and production and another 54% will look sales expected to improve in the near into managing their prices. Employment Less Active term, the expected capacity utilisation Other strategies popularly adopted Employment was generally stable index climbed nine points from the by respondents include, among others, in 1H2018, with slightly fewer former survey to 127. 42% will expand, investing in automation, greater use of hiring reported. At 107, the current while another 42% will maintain their social media and investment in Industry employment index is down three points capacities in the coming months. 4.0 technologies in particular, robotics, from 2H2017. 65% maintained their Production costs are expected to industrial internet of things, cloud current workforce and 21% increased reduce further in 2H2018. The latest computing and vertical and horizontal headcount, compared to 60% and 25% index for expected cost of production system integration. in 2H2017, respectively. fell to 145 from the prior survey’s 157. 52% of the respondents believe that PAKATAN HARAPAN (PH) POSITIVE BUT CAUTIOUS OUTLOOK their production costs in 2H2018 will MANIFESTO FOR 2H2018 increase, down from 63% late last year. In line with the manifesto of the The manufacturing sector’s six-month The index for expected capital new ruling Pakatan Harapan (PH) business outlook is positive but with investment, at 117 is lower by five points government, respondents were asked caution, amid the balance of risks in from the preceding survey, suggesting to list their priorities on what they think the global economy tilting towards the that a slowdown in capital investment the Government should focus on for the downside. Expectations are looking can be expected in the coming manufacturing sector in the first twelve up for business conditions, sales, months. 86% of the respondents will months of their leadership. production volume and cost, and likely increase or maintain their capital To reduce the people’s burden (Pillar capacity utilisation. Hirings are expected investment in 2H2018. The expected 1), 68% of the respondents opined to remain stable for the rest of the employment index, at 116, is little that the government should look into year, likely due to anticipation that the changed from the past survey, with 9-in- reducing price pressures, while abolition minimum wage is set to be adjusted 10 planning to expand or continue to of the GST and tolls are the suggestions higher soon. retain their workforce. of 33% and 15%, respectively. On The expected business activity institutional reform (Pillar 2), ensuring index rose to 124 from the previous two BUSINESS STRATEGIES TO IMPROVE that government procurement produces surveys, with 4-in-10 looking forward to COMPETITIVENESS the best value for taxpayers’ money an improvement in business conditions In the next twelve months, respondents such as via open tender, the use of IT soon. 44% foresee no change, while will implement various strategies and online systems is the priority of 16% responded negatively. to improve their competitiveness, most of the respondents (49%). 39%

28 BIA @ fmm n jul - sep 2018 prioritise institutional and political timeframe for its implementation. MEGA PROJECTS REVIEW BY reforms (example, reforming the MACC 62% of the respondents agreed that GOVERNMENT and strengthening anti-corruption a MW of RM1,500, at 50% burden, is The review of mega projects efforts), while 30% believe that restoring an acceptable goal to be achieved in (RMP), renegotiation of Belt and public trust in the judicial and legal five years. Most of these respondents Road Initiatives (example, East institutions is more important. are from the Klang Valley, Johor and Coast Railway Link, etc.) and To spur sustainable and equitable Negeri Sembilan, with annual turnovers cancellation of the high speed rail economic growth (Pillar 3), the top of RM15 mil to more than RM50 mil and (HSR) and mass rapid transit 3 (MRT3) priority of most (57%) respondents is full-time employees totalling 75 to more by the Government have no impact investment promotion through better than 200. on most manufacturers. On the RMP, policies, simplified processes and trade 84% of overall respondents preferred 56% of the respondents believed that promotion via FTAs, besides reducing that any changes to the minimum wage it has no impact on them, while 28% regulatory burden, improving education, rate to be implemented in 2019 instead foresee more business opportunities, skills training and English competency. of 2018. Of this 84% of respondents, particularly those in the following 39% voted for the support of economic the majority (44%) said that RM1,200 industries: chemicals and chemical growth of Bumiputras and all citizens would be an acceptable minimum wage products; food, beverages and by attracting foreign direct investments rate for the first increase, while 28% tobacco; fabricated metal products; and developing SMEs. The introduction preferred RM1,100. These views are plastic and plastic products; machinery of a people and entrepreneur-friendly premised on the understanding that the and equipment; and electrical, tax system (review national tax system Government would share 50% of the machinery and apparatus. Of the vis-a-vis other ASEAN countries) burden of the increase. 16% who are anticipating a loss in received the third most responses Among those who disagreed with business opportunities, most are (35%). Balancing economic growth the goal of “RM1,500 within 5-years”: from the fabricated metal products with environmental protection (such • 14% was of the view that the target of industry. as sustainability and sustainable RM1,500 can be achieved of which: Most (63%) respondents also do development, and renewable energy) – 55.5% within 6-10 years; and not think that renegotiation of Belt is the priority of 22% of the respondents. – 34.9% in less than five years. and Road Initiatives will affect them. In terms of creating a Malaysia • 20% was of the view that the goal in 26% believe that there will be more that is inclusive, moderate and the next five year should be lower business opportunities with most respected globally (Pillar 5), 48% listed than RM1,500. Most (83%) suggested respondents coming from industries integrity improvement and weeding RM1,200-RM1,300; in food, beverages and tobacco, out corruption as top priorities. • Less than 2% suggested a goal of fabricated metal products, plastic and Fighting crime and social ills, including RM1,100-RM1,300 to be achieved in plastic products, as well as wood, paper, strengthening enforcement of cross 2-8 years. furniture and printing. 11% envisaged a border smuggling received 19% On the equalisation of MW, most loss of business, with most of the votes responses, while 13% chose restoration (48%) respondents agreed that from those manufacturing fabricated of authority and independence of public minimum wage should be a single metal products, plastic and plastic universities and institutes of higher rate nationwide, while 29% was in products, and non-metallic mineral learning, including widening TVET favour of retaining the current form products. streams. i.e. differentiated between Peninsular Cancellation of the HSR and Malaysia and Sabah & Sarawak. 18% MRT3 are expected to have no MINIMUM WAGE (MW) REVIEW said minimum wage rates should be on impact on 72% of the respondents. The PH Government’s manifesto regional basis, including in Peninsular Another 21% are anticipating a loss proposes raising the MW to RM1,500 Malaysia. in business opportunities, with those per month nationwide in their first Majority of respondents in most from the fabricated metal products, 5-year term, with the Government and States were in favour of implementing food, beverages and tobacco, and employers each bearing 50% of the minimum wage rates according to plastic and plastic products industries RM500 increase. An announcement on zones, i.e. to retain the current form or looking most apprehensive. 7% the scheduled review of the minimum introduce regional rates including in responded positively, with most of wage is expected to be made by Peninsular Malaysia. However, majority the responses from those in the food, August 2018. Respondents were asked of respondents the Klang Valley, Negeri beverages and tobacco, as well as the what they think is an acceptable rate Sembilan, Malacca and Sarawak had electrical, machinery and apparatus in the August announcement and the preferred to equalise the MW rates. industries.

BIA @ fmm n jul - sep 2018 29 welcome members Welcome to FMM The Federation of Malaysian Manufacturers (FMM) thrives on the active participation of its members. The involvement of our members and their staff is essential to the long-term growth of the manufacturing sector and to the primary role of the Federation.

It is with great pride and honour for FMM to welcome 74 new members, comprising 56 Ordinary Members and 18 Affiliate Members that joined the Federation from June to August 2018.

Ordinary Member Eastway Express Line Sdn Bhd All Forests Product Sdn Bhd EL Aluminium Billet (M) Sdn Bhd Atlas Metal Sdn Bhd Erapoly Global Sdn Bhd Aureumaex Precision Plastics (M) Sdn Bhd Foremost Cable Accessories Sdn Bhd CAO Minerals Sdn Bhd GN Resound (Malaysia) Sdn Bhd CDG Products Sdn Bhd GT Spice Manufacturers Sdn Bhd Chia Ping Food Industry Sdn Bhd Ha Li Fa Manufacturing Sdn Bhd Dynavest Food Industries Sdn Bhd Hirata Fa Engineering (M) Sdn Bhd

30 BIA @ fmm n jul - sep 2018 Hisakaworks S.E.A. Sdn Bhd Tea Garden Food Supply Sdn Bhd Icon Packaging Sdn Bhd Totalgard Manufacturing Sdn Bhd Imperia Asia Manufacturing Industries Totality Cosmeceutical Industry Sdn Bhd Imperia Asia Resources Sdn Bhd United Imaging Healthcare (Malaysia) Sdn Bhd Improvage Precision Sdn Bhd UWC Automation Sdn Bhd Innotech Textile (M) Sdn Bhd VK Power Automation Sdn Bhd J & D Supplies Sdn Bhd Wankio Industry Sdn Bhd JG Containers (Malaysia) Sendirian Berhad Winabumi Sdn Bhd KESM Industries Berhad Wintage Group Sdn Bhd Kitapanel Wood Product Sdn Bhd Xinyi Solar (Malaysia) Sdn Bhd Kyodo Lanric (M) Sdn Bhd Kyosei Seimitsu Manufacturing Sdn Bhd Affiliate Members L H Machine (M) Sdn Bhd Agensi Pekerjaan LME Management Sdn Bhd Leader Safety Glass International Sdn Bhd Blinkware Technology Sdn Bhd Leong Hup Feedmill Malaysia Sdn Bhd Commbax Sdn Bhd Maccaferri (Malaysia) Sdn Bhd ERS Energy Sdn Bhd Master Jaya Environment Sdn Bhd Evonik Malaysia Sdn Bhd Omega Sofa (M) Sdn Bhd Fomnexts Sdn Bhd Paxton Engineering Sdn Bhd Glenmarie Properties Sdn Bhd Percetakan Konta Sendirian Berhad Kayangan Mutiara Sdn Bhd Professional Latex Sdn Bhd KBS Mgmt Services (M) Sdn Bhd Protection Technologies (M) Sdn Bhd L & H Consultancy Sdn Bhd Quality Latex Products Malaysia Sdn Bhd Labuan IBFC Incorporated Sdn Bhd Richter Rubber Technology Sdn Bhd Lofty Ambition Sdn Bhd Schott Glass (Malaysia) Sdn Bhd Oritronic Sdn Bhd Selangor Rubber Factory Sdn Bhd Pemandu Associates Sdn Bhd Shimadzu Manufacturing Asia Sdn Bhd Shearn Delamore & Co Simply Packaging Sdn Bhd Simitri Malaysia Sdn Bhd Sin Choong Yan Woodwork Sdn Bhd Sunway City (Ipoh) Sdn Bhd Strong Metal & Engineering Sdn Bhd Transmarco Concepts Sdn Bhd Supreme Asia Engineering Sdn Bhd

Now & Then

Lasting memories leave a lasting legacy. HOW Building and starting a manufacturing business is an • Email or We Transfer a photo of your factory when it first engineering feat in itself. started production operations and a recent photo of how But how did you start your factory? What were the it looks like today. challenges faced? • Please include the name of your company, the date when Make your success an inspiration to other members of the the photograph was taken, the photographer’s name FMM by sharing your experience with us. (if possible), a short historical description of the factory location, what it manufactured and the number of workers it had. • Send a current photo of your production plant today.

Send your ‘Now & Then’ images to: [email protected]

BIA @ fmm n jul - sep 2018 31 FMMFMMea news interview

interview petzl

PETZL’s upward trajectory Close up with PETZL Manufacturing Managing Director Eric Vavasseur

PETZL Manufacturing Malaysia Sdn FMM: It must have been a proud FMM: Relate on some of the key Bhd was a GOLD recipient for FMM moment for the company when it milestones and achievements of the Excellence Award (FMMEA) 2017 emerged as one of the winners of company in the last five years? in Manufacturer of the Year – SMI FMM’s prestigious Excellence Awards, PMM: The first important step was Category. what have been the significant gains in 2014, when the implementation With the continuous support of in terms of recognition and status on of the lean manufacturing process the Malaysia Productivity Corporation winning this award? was decided. It has really changed (MPC), FMMEA Excellence Award is PMM: An award is the recognition of the everybody’s mind-set, leading to considered as the industry’s crowning work which has been done. So effectively, a better production quality and glory whereby manufacturing it made all of us very proud. However efficiency, as well as to the continuous companies are assessed by their peers the company continuous improvement improvement concern. and accorded recognition for excellence approach makes us to consider that this Once the lean process was well in in Leadership, People Development, was just a step in the company’s life. place, and the company’s performance Marketing, Operations, Innovation This second FMM award (the first one became recognised at the group and Business Results. The FMMEA is was received in 2014) proved us that our level, PMM has received the mission also an EXCLUSIVE award recognising organisation is still on a good track. More in 2016 to develop the complete manufacturing companies. than the award itself, we really think that manufacturing of the PETZL flagship Below we present excerpts from the important thing is the assessment product, the CORAX harness, which the interview carried out with Eric preparation phase, as it invites the production reaches 100,000 units a Vavasseur, Managing Director, PETZL management team to reconsider the year, the headcount had to be doubled Manufacturing Malaysia Sdn Bhd (PMM). company practices for improving them. (from 70 to 140 persons), offering many

32 BIA @ fmm n jul - sep 2018 job opportunities for the community FMM: Name some of the core values surrounding our Rawang factory. that are important to the company? The success of the CORAX PMM: Our core values are quality development and production has led and safety, transparency, continuous the group to decide in its 2017 midterm improvement and team spirit. plan issue to increase our factory capacity and to saturate its production FMM: Outline the company’s mean. aspirations and goals for the future? In 2018, the company has already PMM: To be the company where people increased its production surface by want to work in. Nothing is possible 50% to 2,400 sqm, and is becoming the without the employee’s satisfaction to major sport harnesses manufacturer of work for PMM. the group. To be the reference among the safety harnesses manufacturers. We FMM: What has been the company’s have nearly reached the top, we want to approach to modernising machinery be recognised as the best. and the workforce in the face of greater competition in the FMM: As a member of FMM, tell us marketplace? Human Capital Development policies how has your company benefitted PMM: Our main activities being made addressing team spirit and transparency. from joining FMM? of manual manufacturing operations, Everybody enjoy the same benefits. PMM: It is difficult to list all the which cannot be automated, the It is important to give visibility to the daily benefits that the company is company investment is oriented to the people for getting their commitment, enjoying from FMM, but as a development and training of its people. so the regular employee meeting is the recipient of the FMM Excellence We consider that the team spirit linked occasion to update everybody about award, I can highlight how important all with the communication transparency the group performance, the company the process leading to our recognition are leading to a better quality and production forecast, the headcount has helped us to progress. The continuous improvement mind-set. evolution forecast, the future projects application file is surely a long and the company development. journey, but the frame provided by FMM: As in most large enterprises FMM triggers many good questions, the welfare of the employee can FMM: In terms of business how has which are a good support for the be paramount to productivity, how the company performed in the last company improvement. I want to does the company ensure their staffs few years? salute here the quality of the remain happy and motivated? PMM: The company is continuously assessment team too. The PMM: At PMM, we care about the growing since its operations started in professionalism and the findings of its people. We have a wide range of 2009. members have helped us a lot.

BIA @ fmm n jul - sep 2018 33 FMMFMMea news interview

interview Linaco

LINACO’s path to success Close up with LINACO Managing Director Joseph Ling Hwa Ean

Linaco Manufacturing (M) Sdn Bhd was FMM: It must have been a As much as I am proud of the a GOLD recipient for FMM Excellence proud moment for the company company’s achievement, my dedication Award (FMMEA) 2017 in Manufacturer of when it emerged as one of the is to all the people in the company that the Year – Large Category. winners of FMM’s prestigious have made this happen. Not only are With the continuous support of Excellence Awards, what have been the direct employees of the company, the Malaysia Productivity Corporation the significant gains in terms of but it also important that their family (MPC), FMMEA is considered as the recognition and status on winning members are acknowledged for their industry’s crowning glory whereby this award? continuous support. manufacturing companies are assessed LINACO: I like to see this as an inside by their peers and accorded recognition out moment. Recognition of status FMM: Relate on some of the key for excellence in Leadership, from the people in the company was milestones and achievements of the People Development, Marketing, the ultimate goals for us. Many have company in the last five years? Operations, Innovation and Business worked in the company for years and LINACO: Something worth celebrating Results. The FMMEA is also an have no idea where the company would be the exponential growth for EXCLUSIVE award recognising stands. With the award, especially the company in terms of revenue and manufacturing companies. with an external party’s evaluation, production volumes. Over the past five Below we carry excerpts from our people now acknowledge the years, we had a CAGR (Compound our interview with Joseph Ling Hwa achievements of the company, as Annual Growth Rate) of over 30% per Ean, Managing Director, Linaco well as the need for improvements in year. We have also installed additional Manufacturing (M) Sdn Bhd (LINACO). various departments. production lines.

34 BIA @ fmm n jul - sep 2018 FMM: What has been the company’s LINACO: For the last few years, there approach to modernising machinery were challenging times especially with and the workforce in the face raw materials and manpower supplies, of greater competition in the but we managed to overcome that. In marketplace? terms of growth, we have an average LINACO: My message to the key growth of 30% for the past few years. people in the company is this: “Any job that can be replaced by automation, FMM: Name some of the core values we should look into that.” As I always that are important to the company? emphasize this to our people, the only LINACO: Mr Richard Ling, my father, two jobs that cannot be replaced would and the founder of the company be decision making and emotional practices the five D’s: discipline, sensitivity. Other than that, all jobs diligence, dedication, determination should be studied for automation. and discernment. This year, we are also implementing The tagline, “He who builds himself a full scale ERP system to improve the will himself be built” was coined by the LINACO: We aspire to operate two to efficiency and accuracy of reporting. In founder. People come first. three factories by year 2020. Currently, the near future, we are also planning we are expanding a factory in Indonesia to have more automation for our FMM: Name some of the challenges with a partner there as part of our plan warehouse system since the inventory faced by the company in the for diversification of supply and market. volumes have also grown. marketplace today? As for Malaysia, we want to increase LINACO: Few years ago, coconuts the utility of our 80 per cent operating FMM: As in most large enterprises supply was a challenge due to its plant in Batu Pahat to 100 per cent. We the welfare of the employee can be shortage and increasing prices around also want to contribute at least 10% or paramount to productivity, how does the region. Of course, today, the more of profits to charity. the company ensure their staff remain scenarios have changed. Coconuts are happy and motivated? in abundance for the past six months FMM: As a member of FMM, tell us LINACO: Do unto others as you would and the marketplace is now flooded how has your company benefitted have them do unto you. Spending with low-priced products which comes from joining FMM? quality time with our people is vital to as a challenge for us to maintain the LINACO: FMM, with the various network hear the perspectives and understand quality and services for our clienteles. and diverse members, broadens their needs at different life stages. Adulterated products are also a risk the perspective of any participating in the marketplace today. members, including LINACO. The FMM: In terms of business, how has seminars, networking sessions, updates the company performed in the last FMM: Outline the company’s and gala dinners have benefitted our few years? aspirations and goals for the future? people a lot in these events.

BIA @ fmm n jul - sep 2018 35 FMM news

head office FMM En-Bloc Signing of Malaysian Anti- Corruption Commission Corruption Free Pledge (Ikrar Bebas Rasuah)

In conjunction with the 50th The event was held to mark the MACC Deputy Chief Commissioner Anniversary Year celebrations, the the milestone celebration and (Prevention), Dato’ Shamshun Baharin Federation of Malaysian Manufacturers more importantly, to reinforce the Mohd Jamil, who delivered the keynote (FMM) organised an En-Bloc Signing manufacturing sector, in particular, address and witnessed the signing of Ceremony of the Malaysian Anti- FMM members’ commitment towards the pledge by some 50 FMM members. Corruption Commission (MACC) a business environment built on the The En-Bloc signing ceremony were Corruption Free Pledge or known as tenets of transparency, integrity and held concurrently at FMM branches IBR (Ikrar Bebas Rasuah), which was corruption-free practices. - Penang, Perak, Negeri Sembilan, held concurrently nationwide on The event was held at the Petaling Malacca, Johor, Pahang (Eastern), July 2, 2018. Jaya Hilton Hotel and was graced by Sarawak and Sabah.

36 BIA @ fmm n jul - sep 2018 head office FMM Supply Chain Conference 2018 on “Belt and Road Initiative: Capitalising on China’s Vision of Connectivity” The conference which was held on April 19, 2018 at the Royale Chulan Damansara Hotel in Petaling Jaya drew a good turnout with 180 attendees. Themed on “Belt and Road Initiative: Capitalising on China’s Vision of Connectivity,” the conference espoused a number of broad objectives, namely:

(i) Share updates on Belt and Road Initiative (BRI) and its effects on Malaysian Government policies on transportation; (ii) Learn implications of BRI on movement of goods and services; (iii) Gain knowledge on how companies can transform their supply chain business networks to adapt to BRI; (iv) Explore financing opportunities for BRI-link projects; (v) Networking opportunities with industry leaders and supply Dato’ Soh Thian Lai, FMM President in delivering his welcome remarks chain professionals.

FMM Industrial Waste Management Conference 2018

Ir A K Woo (third from left), FMM Council Member and Chairman of FMM CSR & Crisis Participants visiting one of the exhibits at the Relief Committee moderating the session conference

The conference which was held in Royale Chulan Damansara Hotel on May 15, 2018 drew a strong turnout totalling 220 participants. The objectives of the event were to: (i) Provide updates on Self-Regulation Programme with Environmental Mainstreaming Tools from Department of Environment (DOE); (ii) Provide information on techniques and skills for a highly effective certified environmental professional or competent person; (iii) Share best practices and technologies on reducing and recycling industrial scheduled waste, air emission and effluent; and (iv) Networking opportunities with industry leaders, invited guests and participants.

BIA @ fmm n jul - sep 2018 37 FMM news

SMI & Entrepreneur News Visit to German Pocket Talk by Malaysia Institute Export-Import (GMI) Bank of Malaysia A highly informative visit was made to the German Malaysia Institute (GMI) on April 19, 2018 which provided insights into Berhad (EXIM the machinery and equipment being used in different forms of Bank) on Insurance manufacturing. The delegation comprising of 58 participants from 32 Credit & Credit companies was led by Dato’ Dr Ir Andy Seo, FMM Vice President & Chairman, FMM SMI Working Committee as well as members Financing of the working committee. Insurance matters and credit financing were some of Objectives included: the central topics covered in a talk held on May 23, a) To view GMI’s labs, in particular, machinery and equipment 2018. for fabrication and precision machining and contract The objectives were to: manufacturing as well as technical & consultancy services; a) Provide updates to members on insurance credit b) To understand GMI’s training and development programmes and credit financing under 2018 National Budget and facilities. allocations through the EXIM Bank; b) Provide platform for members to network with EXIM Bank’s persons-in-charge of insurance credit and credit financing. FMM was represented by Kenny Tan, Vice-Chairman, FMM SMI Working Committee. The talk drew 22 participants from 18 companies.

Visit to SIRIM QAS Testing Facilities

In order to get a first-hand view of SIRIM’s test labs, a visit was arranged on June 25, 2018 led by Dato’ Dr Ir Andy FMM delegation to SIRIM QAS International Sdn Bhd, led by Dato’ Dr Ir Andy Seo, FMM Vice Seo, FMM Vice President & Chairman, President & Chairman FMM SMI Working Committee FMM SMI Working Committee. Judging from the size of the groups The purpose of visiting the eight c) To provide platform for members there was great interest generated by testing labs were as follows: to understand test procedures as the visit. A total of 105 participants a) To receive updates on SIRIM QAS’ well as to highlight issues faced took part, with 62 joining the morning testing facilities; with testing directly to SIRIM QAS session and 43 in the afternoon. The b) To provide contacts and networking for continuous improvement, participants represented 48 companies platform for SIRIM QAS test labs including types of tests required by in total. personnel and members; companies.

38 BIA @ fmm n jul - sep 2018 KEDAH/PERLIS Courtesy visit by new Courtesy Visit by MIDA Kedah/Perlis Netherland Foreign Director Investment Agency MIDA’s directors visited FMM Kedah/Perlis Branch office on June 12, 2018 in an effort to create rapport with FMM (NFIA) Branch as well as to get feedback on any issues faced by The visit by the agency on June 13, 2018 to the FMM Kedah/ members. The officials were Harun Elik, Director and Anor Perlis Branch office was meant to brief the Branch on NFIA Ardi, Assistant Director of MIDA. functions and explore members’ interest to do business in Netherlands, as the entry point to Europe. The NFIA is looking for potential investors in maritime industry, automotive, commodity, medical disposable, Courtesy visit by chemicals, among others. Agnes Seah represented NFIA. Industry Training Institute (ILP) & HR/IR Forum ADTECH The talk was held at the FMM Kedah/Perlis office on April 5, 2018. Helmed by Heng Poh Suan, FMM HR/IR advisor it was The visit took place on June 26, 2018 at the FMM Kedah/ aimed at updating and discussing with HR/IR practitioners Perlis Branch office. Aside from building good rapport among industries on the latest Industrial Court awards and with the FMM Branch, it also aimed to explore future other pertinent HR/IR related issues. 31 participants from 23 collaboration on joint training stints for FMM members. companies attended. Furthermore, they offered Dual National Scheme Training (SLDN) to members. The visiting officials were Muhamad Nasir Samat, Director ILP Kangar, Zulkifle Omar, Director ADTECH Kulim and Ahmad Iskandar Sulaiman, Director ILP Jitra. penang FMM Penang Branch The Penang Branch Committee Committee visit to B Braun made a courtesy call to B Braun Medical Industries Sdn Bhd on May Medical Industries Sdn Bhd 23, 2018 as part of their ongoing campaign to build rapport with member companies. The visit was led by Geh Cheng Hoe, FMM Penang Island Office Chairman together with 15 Branch Committee members. The delegation was received by Kellie Kuah, Senior Manager Human Resources and Teresa Huan, Senior Manager Corporate Communication, FMM delegation group photographed with representatives from B Braun Medical Industries Sdn Bhd B Braun Medical Industries Sdn Bhd.

BIA @ fmm n jul - sep 2018 39 FMM news

penang FMM Penang Branch Environment, Safety & Health (ESH) Sub-Committee visit to Department of Environment (DOE) Penang The visit to the Department of Environment Penang took place on June 12 and was led by Kew Chii Shiang, ESH Sub-Committee Chairman. He was joined by Tan Leng Hock, ESH Sub Committee Deputy Chairman II and Rose Kuan Yoke Lean, FMM Branch Committee Member. Also present were Aziz Parmin, Acting Director DOE Penang, Pravin Segaran, Assistant Director, DOE Penang and Nor Juliana, Assistant Director, DOE Penang. The objective was to further explore areas of collaboration between DOE Penang and FMM Penang Group photograph of ESH Sub-Committee members with DOE officers Branch that would be beneficial for FMM Penang members.

FMM HR/IR Forum uCustoms: National & Clinic Session Customs Systems The forum held at the FMM Seberang Jaya office on April 6, 2018 was aimed at providing the latest updates on recent for Import/Export industrial court awards. It was helmed by Heng Poh Suan, Clearance FMM HR/IR advisor and attended by 25 participants. The seminar was staged at the Light Hotel on May 15, 2018 with 23 participants attending. The purpose was to enlighten members on the latest customs procedures and systems. Taxation on Foreign Workers & Employer Cost Accounting Responsibilities A briefing was held at the Seberang Jaya office on April 18, Techniques for Cost 2018 in collaboration with the Inland Revenue Board (IRB) Monitoring and to help members understand taxation matters on foreign workers and employer’s responsibilities. 53 participants Control attended. The seminar was held at the Eastern & Oriental Hotel on May 14, 2018 to help members understand the cost behaviour and key techniques and principles in cost control. The speaker was Kenneth Tam Fook Cheong. Eight Employment Act 1955 members attended. The seminar was held at the Sunway Hotel in Seberang Jaya on April 24, 2018 to help members understand the Employment Act 1955. Helmed by Ewe Kheng Hoon with 14 members in attendance.

40 BIA @ fmm n jul - sep 2018 perak Luncheon Networking Get Connected to Session with PSMB Two Prestigious (Human Resources Universities, UTAR Development Fund) & UTP for your R&D, Perak and Industries Special Projects & in Perak Internship Training The luncheon networking A briefing was held on May session was held on June 27, 15, 2018 at the FMM Perak 2018 at the FMM Perak Branch Branch office in an effort office to foster closer rapport to bridge the industry to between PSMB, Perak Branch the universities so as to and industries in Perak. explore possible projects and The speakers included collaborations. Mohd Zulkifly Ahmad Rashidi, The featured speakers Manager and Letchumidevi were Prof. Ir Dr Mohd Shahir Prof. Ir Dr Mohd Shahir Liew Giravalu, Executive, PSMB Liew, Deputy Vice Chancellor, facilitated presentation on Mohd Zulkifly Ahmad Rashidi, services available from UTP Manager PSMB Perak facilitated Perak. 31 participants from 16 R&D, University Teknologi presentation on roles and functions of PSMB companies attended. Petronas and Dr Lau Lin Sea, Assistant Professor/Deputy Dean R&D, UTAR. Also present was Dato’ Gan Tack Kong, FMM Perak Chairman. 40 participants from 22 companies attended.

Mohamed Ali Haji Mydin, CEO of PSDC explaining the terms of their collaboration proposal Collaboration Meeting Participants at the talk with Penang Skills Company’s Insurance Development Centre - Know Your Rights & (PSDC) Its Hazards The meeting was held on May 24, 2018 at the FMM Perak The talk held on April 20, 2018 at the FMM Perak Branch Branch office to discuss on the collaboration proposal office was aimed at briefing participants on common errors between FMM and PSDC. It was chaired by Mohamed Ali Haji found in insurance policy and ways to avoid it. Mydin, CEO of PSDC and Edmund Wong, Chairman of FMM The speaker was Sam Wong, Senior Consultant, who Perak SMI Sub Committee. briefed the 34 attendees from 20 companies.

BIA @ fmm n jul - sep 2018 41 FMM news

selangor FMM Selangor ‘Nite 2018

Group photograph with VVIPs Token of appreciation to YB Dato’ Teng Chang Khim

It was a night to remember and recall as members, guests Executive Councillor for Investment, Industry & Commerce, mingled and enjoyed the camaraderie at the Setia City Small & Medium Enterprises (SME). Convention Centre on June 27, 2018. The joyous occasion gave many the chance to The attendance totalling some 850 invitees included celebrate, network and enjoy some good entertainment .It Selangor State Executives, FMM President, FMM immediate was also an excellent opportunity to entertain valued existing past President as well as FMM Council members. The guest clients, network with prospective customers and generate new of honour was YB Dato’ Teng Chang Khim, Selangor State business contacts.

Cyber Security Awareness: Prevention, Threat Detection and Live Response by Vigilant Asia Sdn Bhd In an age when cyber theft has become commonplace the briefing on cyber security was timely. Held at the Concorde Hotel, Shah Alam on April 24, 2018 it was attended by 45 participants. Speaking on the topic was Clement Arul, Managing Director of Kaapagam Education Services Sdn Bhd. The aim of the briefing was to increase the awareness of cyber security amongst FMM members. It also focussed on the risks and threats associated and provided solutions for increased cyber security. Also some policies Clement Arul, Managing Director of Kaapagam Education Services Sdn Bhd sharing his expertise with FMM members were shared on how to enhance cyber security environments.

Branch Courtesy Call to DOSH Selangor Director A visit was made by seven members of the Selangor Branch to the Department of Occupational Safety and Health (DOSH) Selangor on May 14, 2018 in an effort to establish good rapport and support between FMM Selangor and DOSH. The visit was hosted by Mohd Anuar Embi, Director of DOSH Selangor. Mohd Anuar Embi, Director of DOSH Selangor (6th from left) receiving a souvenir from Wong Soo Kan, Chairman of Branch Industrial Safety, Health & Environment Working Committee (5th from left)

42 BIA @ fmm n jul - sep 2018 negeri sembilan

Group photograph together with Zetty Hamimi Zakaria, Group photograph together YAB Tuan Aminuddin Harun, Menteri Besar Director of MIDA Negeri Sembilan (2nd from left) Negeri Sembilan (2nd from left) Courtesy call to YAB Courtesy call cum Tuan Aminuddin briefing by MIDA NS The visit was made by MIDA led by Zetty Hamimi Harun, Menteri Besar Zakaria, Director of MIDA Negeri Sembilan on May 30, 2018 to FMM Negeri Sembilan Branch office. It Negeri Sembilan also included a short briefing on MIDA’s facilities and The Branch’s delegation was led by Steven Aroki, Branch incentives. Committee Chairman to Pejabat Menteri Besar, Wisma Negeri on FMM was represented by Steven Aroki, Branch June 5, 2018. Committee Chairman. 11 participants attended.

CSR programme with community in Lenggeng - “Jalinan Mesra Bersama Masyarakat Lenggeng”

Local community having their health check provided by FMM Group photograph with local community affiliate members, Mawar Medical Centre and NSCMH Medical Centre

The programme was co-organised by the Majlis Perbandaran Nilai (MPN) & Jabatan Kemajuan Masyarakat NS (KEMAS) on April 15, 2018 at the Sekolah Kebangsaan Mendum, Kampong Sungai Bunga, Lenggeng. FMM was led by Siti Aminah Tan, FMM NS CSR Working Committee Chairman. 13 FMM members attended.

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negeri sembilan

Handing over ceremony by Tuan Hj Izani Mohd Zain, Director of DOSH NS to Radzi Abdul Rashid, FMM NS SHE Committee Chairman Group photograph of the participants, together with DOSH Negeri Sembilan Negeri Sembilan FMM NS fishing cum World DOSH Day networking session 2018 celebration A handing over ceremony of the occupational health and with DOSH NS safety mandate to FMM was carried out on April 27, 2018 Fishing was the highlight of a networking session held on April at the Department of Occupational Safety Health NS 7, 2018 at the Hj Ismail Agropark in Seremban. The occasion office in Seremban. provided a good opportunity for FMM NS Safety, Health & Thus, the mandate of the Director General of DOSH Environment (SHE) Committee to touch base with Department was passed to FMM as a representative of manufacturing of Occupational Safety and Health (DOSH) officers. Present was industries in Negeri Sembilan. Khairil Mohd Tahir, Deputy Director DOSH NS. 19 members and FMM was led by Radzi Abdul Rashid, FMM NS SHE officials from FMM and DOSH took part. Committee Chairman. Also present was Tuan Hj Izani Mohd Zain, Director of DOSH NS.

melaka EPF Scheme Enhancement Initiatives: What you Need to Know A briefing was held at the Malacca Branch office on May 14, 2018 to update members on EPF’s schemes. The speaker was Muhd Fizry Yusuf, Head, Contribution Division, EPF Melaka. Also present was Mohd Dali Jasmin, Melaka State Director. 13 participants from 10 companies attended.

Seminar on Industry 4.0 This seminar held in June 24, 2018 at the Malacca Branch office was to create awareness on Industry 4.0. 24 participants from 10 companies attended. The speakers were Chai Kim Chen, Director, CTI Resources Sdn Bhd, Chee Yih Tzuen, Group GM for IT, Top Glove Sdn Bhd, Prof Hew Gill, Associate Provost, Sunway University and Azhar Md Nayan, Technical Advisor, PSDC.

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The branch delegation presented the FMM plaque to YB Jimmy Puah The branch delegation presented the FMM plaque to YB Dr S during the courtesy call Ramakrishnan during the courtesy call Courtesy Call on YB Courtesy call on YB Jimmy Puah Wee Tse, Dr S Ramakrishnan, Johor State Executive Johor State Council (EXCO) for Chairman of Investment and Consumerism, Utilities Human Resources The visit to the EXCO office in Kota Iskandar on June 4, 2018 was firstly, to build rapport with the new State EXCO in charge and Unity Committee of investment and utilities of Johor. The visit to the Johor EXCO office on June 11, 2018 was Secondly, it was aimed at sharing current issues and firstly, to discuss on issues relating to foreign workers problems affecting manufacturers in relation to industrial management in the state. Secondly, it aimed at creating leasehold and internet connections. Capt (R) Hj Abdullah a better relationship with the state EXCO. Capt (R) Hj Shariff, Branch Committee Chairman, led the four-man Abdullah Shariff, Branch Committee Chairman, led the delegation. delegation.

Business Talk with FMM Johor Branch Iskandar Halal Park Committee visit to The briefing held on May 15, 2018 at the Katerina Hotel in Smiths Detection Batu Pahat was aimed at creating a business networking platform for members in central and north Johor. Malaysia Sdn Bhd Co-organised with UMLand-JBiotech Park Sdn Bhd, the The visit on April 23, 2018 to Smiths Detection Malaysia briefing was helmed by Tuan Hj Rozano Yahaya, Director of Sdn Bhd was to foster closer ties with member companies. MIDA Johor and Ahmad Lokman Ibrahim, CEO of Iskandar Leading the Branch Committee members was Capt (R) Hj Halal Park. 15 members attended. Abdullah Shariff, Branch Committee Chairman.

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eastern FMM Eastern Branch Inaugural Annual Dinner 2018

The six recipients after receiving their awards from YB Abdul Rahim Muda, Dato’ Soh Thian Lai and Azli Haji Norali

Azli Haji Norali, FMM Eastern Branch Dato’ Soh Thian Lai, FMM President delivering YB Abdul Rahim Muda, Guest of Honour Chairman presenting the Welcome Address his speech at the dinner presenting the keynote address

In conjunction with the 50th Anniversary ensuring an uninterrupted water supply The highlight of the dinner was when of the Federation of Malaysian in avoiding plants’ shut down and the following were awarded during the Manufacturers, FMM Eastern Branch interruptions to production. dinner: organised its inaugural annual dinner Meanwhile, Dato’ Soh Thian Lai, FMM Long Serving Committee themed ‘Black & Gold’ on Friday, July FMM President, in his speech, hoped Member 20, 2018 at Vistana Hotel, Kuantan. the State Government to ensure that 1) Soo Lik Heng Over 150 guests attended this all industrial estates are well equipped 2) Ahmad Kamari Nordin dinner, networked and celebrated and able to operate in a modern, achievements of the members in easily accessible, safe and sustainable FMM Long Membership Award the Eastern region. YB Abdul Rahim environment with access to quality and FPG Oleochemicals Sdn Bhd Muda, Chairman Local Government & affordable high speed broadband. He Housing Committee Pahang, graced the further said that the State Government FMM Special Achievement Award - occasion. should also lower the cost of investment International Quality and Productivity Azli Haji Norali, FMM Eastern Branch by reducing land premium, including Award For 2017 Committee Chairman in his Welcome conversion premium for industrial land BI Technologies Sdn Bhd Address urged the State Government and hoped that the State Government and the necessary government bodies would allocate adequate funds Award In Recognition of Support and agencies to review the conditions annually to facilitate the upgrading Towards FMM Eastern Branch Training of water supply in the State of Pahang of infrastructure and maintenance of for Programmes 2017/2018 and work on action for improvement in facilities in industrial parks. Kaneka (Malaysia) Sdn Bhd

46 BIA @ fmm n jul - sep 2018 sarawak FMM Sarawak pays courtesy call to Dato’ James Chan Khay Syn, Mayor of Majlis Bandaraya Kuching Selatan (MBKS) Tuan Haji Othman Abdul Rani (4th left), Branch Committee Chairman presenting a souvenir to Dato’ James Chan (3rd left), MBKS Mayor

A FMM five-member delegation led by Chairman, Tuan Haji Othman Abdul Rani met Dato’ James Chan Khay Syn, Mayor of Majlis Bandaraya Kuching Selatan (MBKS) on June 11, 2018. The purpose was to invite the Mayor as the VIP for the FMM Sarawak Run 1.0 scheduled to be held on October 28, 2018.

FMM Sarawak pays Courtesy call to YB Datuk Talib Zulpilip, Minister in the Chief Minister’s Department (Integrity & Ombudsman) A five-member delegation from FMM Sarawak led by Tuan Haji Othman Abdul Rani, Branch Committee Chairman, visited YB Datuk Talib Zulpilip, Minister in the Chief Minister’s Department (Integrity & Ombudsman) on June 25, 2018. The purpose was to brief the Minister on the objectives of the En-Bloc Signing Ceremony of the Malaysian Anti-Corruption Commission (MACC) Corruption Free Pledge (Ikrar Bebas Rasuah) that was eventually held nationwide concurrently on The minister (3rd left) listening to FMM Sarawak delegation Monday, July 2, 2018.

Sabah Representative Office Taxation on Foreign Workers’ Income A briefing was held on April 12, 2018 at the FMM Sabah Representative Office to discuss the matter. Helming the talk were Muliadi Mohtar, Deputy Director, LHDN Kota Kinabalu, Sabah and Norliah Omar, Deputy Director, LHDN Kota Kinabalu, Sabah. Attended by seven participants it was held with the purpose of addressing the following: a) To brief employers about tax compliance and treatment on foreign workers income; b) To brief employers on their responsibilities to notify IRB on new workers and cessation of employment, making monthly tax deductions for workers with tax liability and obtaining tax clearance prior workers leaving the company and country.

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Golf Touring

in TasmaniaBy david bowden

While many visitors to Australia consider history and play on one of the world’s In addition to the golf, Tasmania it as a continent of just one island, the oldest golf courses. In addition, they offers some of the world’s finest reality is that there are many islands can play some 80 courses including two seafood, excellent wines, luxurious surrounding the main island with of the world’s most acclaimed public lodges, and magnificent restaurants Tasmania being the best-known island golf courses at Barnbougle, be part of serving the freshest local produce. from the mainland. history in playing Ratho, and by visiting Tasmania is deceptive and while it King Island and taking up the challenge Historic Hobart looks small, a one-week holiday here of two new links-styled courses. Hobart is Australia’s smallest capital will barely scratch the realms of travel A week-long trip could include - with just 220,000 residents but this possibilities. Tasmania’s colourful history flying into Hobart to play Royal Hobart, makes it easy to get around. In saw it settled as a penal colony and hire a car and drive to Bothwell to play addition to playing golf, dining in the over the years, it has attracted people Ratho, head north to Launceston for seafood restaurants around the docks who have specifically chosen one of the the Country Club Resort, to Bridport to is recommended as is visiting the remotest parts of the civilised world as play the Barnbougle courses, fly to King Salamanca Market every Saturday and their new home. Island to golf on the two links courses, the sensational Museum of Old and Golfers benefit from all of this and then fly direct from King Island back New Art (MONA). including the opportunity to be part of to Melbourne.

48 BIA @ fmm n jul - sep 2018 Seductive Seafood, operated by Pennicott Wilderness Highland Fling Journeys is an indulgent day on the water. Tours head to Bruny Tasmania’s Central Highlands are situated just north of Hobart Island to satisfy the cravings of every seafood lover. Regular and the agricultural landscape and lakes look like the Scottish stops are made as divers who crew the boat, dive the pristine Highlands. Bothwell is home to the oldest golf course in the waters to haul up fresh marine life for a seafood indulgence of Southern Hemisphere (historians also consider it the oldest salmon, sea urchin, oysters, abalone, and rock lobster washed remaining course outside of Scotland). Scottish settlers settled down with Tassie premium wines, craft beers, and ciders. here, brought the white ball game with them, and established a course on Ratho Farm in the 1830s. This rural course still has greens that are fenced off so that sheep can graze the fairways. On-site accommodation is available in several fully restored colonial farmhouse buildings and meals are taken in the old homestead.

Taming the Tamar The Country Club Resort offers full leisure facilities along with its 18-hole championship golf course. Visitors can also stay in the on-course accommodation and dine in the restaurant as well as play tennis and ride horses. Visitors to the Tamar Valley can enjoy more than the golfing greens with the red and white wines as appealing. A well-signposted wine route meanders northwards from Launceston to include wines from Jansz, Bay of Fires, Josef Chromy, Dalrylmple and Holm Oak wineries known for Pinot Noir, Riesling, Chardonnay and Sauvignon Blanc wines. Visitors to Launceston should also dine in the exciting Geronimo Aperitivo Bar and Restaurant in Charles Street with its inviting wine list plus creative dishes such as scallop ceviche, sardines with capers, wood-fired pizza with speck and Brie plus chocolate and beetroot torta. The nearby town of Evandale where the airport is located is worth visiting on Sunday morning for the market and any time of the week for the Tasmanian Gourmet Sauce

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Company where enthusiastic owner designers found it too challenging to and while just 125m-long, golfers hit Tim Barbour is happy to share his all- drop two from their original layout. across an open chasm of water into the Tasmanian products such as raspberry While 13A and 18A are considered the onshore breeze. and blueberry sauce and show visitors extra holes many golfers play all 20 Cape Wickham in the island’s far around the picturesque gardens. and eliminate the two worst holes from north, has an equally dramatic coastline their card. Winds along the exposed dominated by the Cape Wickham Coastal Links wilderness coastline of Anderson Bay Lighthouse. Bridport, located one-hour northeast come into play on both courses. Tasmania is deceptive in looking of Launceston, is the closest town to small but packed full of exciting the two Barnbougle courses of the Lost King of the Islands activities, events and destinations. Farm and Dunes, considered two of the The most exciting golfing news to Golfers are advised to head Down world’s best links courses. come out of Tasmania (for that matter, Under before the word gets out and the Barnbougle Dunes Golf Links and Australia) is the opening of two links- queues start forming. Barnbougle Lost Farm are next to each styled courses on King Island. The island other, and small aircraft fly across Bass is located in the wild and windy Bass Strait from Melbourne for golfers to play Strait that separates Tasmania from the a round. Australia mainland. King Island, three Malaysian golfers will enjoy relaxing times bigger than Penang but with a onsite after their game and staying in population of 1,700 residents and tens the resort that adjoins Lost Farm and of thousands of wallabies, is the most dining in the restaurant perched above unlikely place for these two courses. the 15th fairway. Hole number four on Ocean Dunes Lost Farm has 20 holes as the is one of the wildest holes in golf

Travel Links Getting There There are no direct international flights into Tasmania with Malaysia Airlines (www.malaysiaairlines.com) offering connections via Sydney or Melbourne to Hobart in the south and Launceston in the north of the island.

Getting About It is a good idea to fly into Launceston and out of Hobart or vice versa or fly direct from Melbourne to King Island and then onto Tasmania should you want to include King Island in your golfing itinerary. Virgin, Jetstar and Tiger fly from the mainland to Tasmania while Sharp Airlines (www.sharpairlines.com) flies to King Island from Essendon Airport (Melbourne) as well as Launceston and Burnie in Tasmania. Sharp Airlines can also arrange charter flights for groups of golfers. Hire a Redspot (www.redspot.com.au) rental car in Tasmania and use the services of King Island Discovery Tours (www.kingislanddiscoverytours.com.au) for transfers and tours.

Contacts Barnbougle Dunes (www.barnbougledunes.com.au), Barnbougle Lost Farm (www.barnbougle.com.au), Cape Wickham Links King Island (www.capewickham.com), Ocean Dunes King Island (www.oceandunes.com.au), Ratho Farm (www.rathofarm.com) and Tasmania Tourism (www.tourismtasmania.com).

50 BIA @ fmm n jul - sep 2018 data informer Malaysia projected to become top-25 economy by 2050 The country needs to invest more in technology and education to improve its ranking

According to a report filed by Bernama, the national news agency, published in the New Straits Times on April 4, 2018, Malaysia is predicted to be among the top-25 economies in the world in just over three decades’ time. Malaysia, a medium-sized economy, is expected to improve its ranking to be the 24th largest in the world by 2050, stated the report. PwC Malaysia Managing Partner, Sridharan Nair, quoted in the report, said Malaysia, already in the 27th position in terms of gross domestic product (GDP) contribution to the global economy, needed to invest in technology and education to further economic growth of the country in order investments. improve its ranking. to be able to effectively benefit the man “Southeast Asia’s strategic “Malaysia has a reputation for being on the street. geographical location is advantageous pro-business and pro-investment,” he While Vietnam and Indonesia might to serve as an economic platform for told Bernama during the 2018 Asia- rank higher in the global economy in Asia-Pacific and the rest of the world,” Pacific Council of American Chambers terms of their contributions to the GDP he added. of Commerce (APCAC 2018) Business due to the size of their population, he Nair said by 2050, China would be Summit in Kuala Lumpur. said, Malaysia was still doing well for a the world’s biggest economy, followed Malaysia’s economy would be on medium-sized economy. by India with Indonesia the world’s a steady growth path over the next 20 During his presentation on ‘The fourth largest economy. years, he said, adding that it would still Asian Century, but which Asia?’ at the AMCHAM President, Ramzi do well despite some short-term ups annual summit hosted by the American Toubassy, said it was clear that despite and downs, as would be expected from Malaysian Chamber of Commerce current trade tensions between China a growing and emerging economy. (AMCHAM) Malaysia, Nair said, the and the United States, Asia was set to He said Malaysia has always been a emerging seven economies (Mexico, dominate the international economy in trade and investment-friendly country Brazil, Turkey, India, Russia, China and a matter of years. with ease of doing business. Indonesia) were projected to dominate “Asia’s share of global GDP is However, according to Nair, Malaysia the world’s top 10 economies in 2050. expected to grow from 30 per cent in would need to tackle the issue of wage Southeast Asia, he said, currently 2016 to over 50 per cent by 2050,” he increase in tandem with the higher captured high value-added US commented.

BIA @ fmm n jul - sep 2018 51 event calendar FMM TRADE FAIRS AND TRADE MISSIONS

trade fair target profile Date Location/Venue

ASEAN Logistics & Cold chain, logistics and warehouse Oct 12 – 15 Bangkok, Thailand Warehouse Concurrent Show: ASEAN Cold Pharma Chain

Welding Korea & Welding, cutting, 3D printing & additive Oct 16 – 19 Changwon, South Korea TCT Korea manufacturing

BuildTech Asia Construction Oct 22 – 24 Singapore

Fashion World Tokyo Fashion wear, bag, shoe, jewellery Oct 22 – 24 Tokyo, Japan

Kaohsiung Food Show Food & beverage Oct 25 – 28 Kaohsiung, Taiwan

World Food Food & beverage Oct 31 – Nov 2 Almaty, Kazakhstan Kazakhstan

Secutech Thailand Security products and applications for smart & safe Nov 8 – 10 Bangkok, Thailand city, fire & safety and smart living

Foodex Saudi Food & beverage Nov 12 – 15 Jeddah, Saudi Arabia

HEAL Expo Smart green food chain & lifestyle Nov 21 – 23 Hong Kong

Metalex Thailand Machine tool and metal working technology Nov 22 – 24 Bangkok, Thailand

Food Week Korea Food & beverage Nov 28 – Dec 1 Seoul, South Korea

Vietnam International Machinery Dec 12 – 14 Ho Chi Minh City, Vietnam Machinery Fair

For more information, please contact Leow Sze Yin at [email protected] or Koh Wee Leng at [email protected]

FMM upcoming events

event Date Location/Venue

FMM Negeri Sembilan 9th Annual Dinner Oct 3 Royale Chulan Seremban

FMM 50th Annual Dinner Oct 9 Sunway Pyramid Convention Centre

FMM LEAN Management Study Mission Oct 29 – Nov 3 Tokyo, Japan

For more information, please visit www.fmm.org.my

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