business IN action @ FMM JAN – MAR 2019 VOL 1/2019 www.fmm.org.my

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

Challenging Times A heavy toll placed on global manufacturing as slower growth and contraction sets in

"e Communicator Tech Talk Using Instagram for Establishing an business purposes ecosystem for IoT to + PG 17 thrive in Malaysia PG 23 Malaysian economy Brand Builder projected to grow Simple and e"ective FMM MIER Business anything from 4.5% tips to build your Conditions Survey to 4.9% in 2019 company branding PG 28 PG 12 PG 20

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Contents JANUARY - MARCH 2019 VOLUME 1/2019

PRESIDENT’S 3 MESSAGE COVER STORY: 4 CHALLENGING TIMES The US-China trade war is putting a toll on manufacturing countries as slower growth and contraction sets in BUSINESS 12 FEATURE: STILL UPBEAT ABOUT THE ECONOMY Malaysia is forecast to grow anything from 4.5% to 4.9% in 2019 THE 17 COMMUNICATOR: USING INSTAGRAM FOR BUSINESS Posted visuals remain a strong messaging PAGE method for companies to use to boost customer engagement, customer 4 search and sales BRAND BUILDER: DATA INFORMER: 20 EFFECTIVE 25 ECONOMIC BRAND BUILDING PROSPECTS FOR 2019 Simple guidelines to build The Organisation for your company and its Economic Co-operation products and Development (OECD) maps future scenarios for TECH TALK: ASEAN-5 countries 23 ESTABLISHING AN ECOSYSTEM FOR FMM-MIER IOT TO THRIVE 28 BUSINESS Stakeholders in the ICT CONDITIONS SURVEY: PAGE industry are working MANUFACTURING together to create an ideal PICKS UP IN 2018, platform for the technology EXPECTS TO SLOW 12 to grow in Malaysia DOWN IN 2019

PAGE NEW 17 32 MEMBERS FMMEA: 34 AF MANUFACTURING FMM 36 NEWS BRANCH NEWS 42 & EVENTS 52 DID YOU KNOW?

‡&RQWHQWVLQGG 30 business IN action @ FMM

EDITORIAL

ADVISOR Chief Executive Of"cer Dr Yeoh Oon Tean

EDITORIAL TEAM Manager – Membership Division Kenny Lee

Senior Executive – Membership Division Natalie Ng

Editor Roger Rodrigo

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‡*ORU\3DJHLQGG 30 MESSAGE FROM THE PRESIDENT

We live in a connected world, thus like the rest of the globe we are The on-going trade war between the United States and China, percentage points by 2020, then Malaysian economy could end up which started on July 6, 2018, has been driving slower growth and (The Edge Markets: The State of the Nation: GDP growth projected at 4.9%, exports 3.9% in 2019) the slowdown based on the FMM-MIER Business Conditions Survey a solid commitment to smoothen the implementation process We observe that production and capacity utilisation have improved and reduce costs and any imbalances that may exist between The SST, we believe, has addressed some of the burdens faced by However the outlook for 2019 was not as promising with the index for expected business activity declining by 6 points, (Current areas includes not having to pay input tax upfront but instead allows 2H2018:107, Looking Forward 1H2019:101) which translates into a application for sales tax exemption for raw materials, components and We also note from the survey that the cost factors generally Some important economic facts were also shown by the Ministry of Finance in its Economic Outlook 2019 released in November last The report projected our manufacturing sector to expand by Dato’ Soh Thian Lai

‡3UHVLGHQW V0HVVDJHLQGG 30 COVER STORY

CHALLENGING TIMES The US-China trade war is putting a toll on manufacturing countries as slower growth and contraction sets in

If anyone says that the world went into an 1. 25 percent on 2,493 products (agricultural, economic tailspin from July 6, 2018 he’s 284 Chinese products (worth US$16 billion). products, foods, textiles and products, probably right. chemicals, metal products, machinery); That date will go down in history as being included iron or steel products, electrical machinery, railway products, instruments and paperboard, chemicals, works of art); resulted in a global slowdown especially for apparatus. On July 10, 2018 the US released export dependent countries. products, chemicals, glassware); and China took retaliatory measures by 4. 5 percent on 662 products (chemicals, machinery, medical equipment). we will run through some of the countries originating from the US (worth US$34 billion), including agricultural products, automobiles our economy will cope should this impasse and aquatic products. on US$250 billion worth of Chinese products, continue. On August 3, 2018, China announced a On July 6, the US Customs and Border more. Protection (CBP) began collecting a 25 percent US$200 billion worth of products announced billion worth of US goods, and is threatening Commerce proposed a range of additional businesses operating in China. announced on June 15, 2018. There is indeed a grim picture looming. It the US (worth US$60 billion), including the appears that neither President Donald Trump following: nor Chinese President Xi Jinping are willing to

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COVER STORY

relent, US-China trade tensions could expand China’s economic growth slowed to into a full-blown trade war. China’s Ministry 6.5 percent in the third quarter of last year, the of Commerce has warned that the dispute may even lead to “the largest trade war in ZHDNHVWVLQFHWKHJOREDO¿QDQFLDOFULVLV economic history to date”. But of course it is not an untenable oriented countries are hurting,” said Irene situation as both countries understand the Cheung, Asia Strategist at ANZ. Data from Singapore showed its gross warfare that it would have severe implications domestic product grew more slowly than on their own economies in the long run. forecast in the fourth quarter as the city- While growth in the US has slowed a bit, state’s manufacturing contracted on a quarterly basis. greater for China. In Europe, PMI surveys showed Italy In December, 2018 China’s Caixin/IHS remained in contraction and was joined Markit PMI slipped into contraction territory China’s economic growth slowed to 6.5 months. percent in the third quarter of last year, the Manufacturing growth in both Germany and Spain was modest, easing to the weakest Reuters reported government advisers had in around two-and-a-half years. recommended a growth target of 6.0 to 6.5 In contrast, Britain increased its percent for this year. stockpiling as they prepared for likely delays News agency Reuters reported that when they depart from the European Union at China’s weakness have spread to other Asian the end of March. economies. Malaysian manufacturing slowed The UK manufacturing PMI rose to a six- to its weakest pace of expansion since the month high, stronger than all forecasts in a Purchasing Managers Index (PMI) began Reuters poll of economists. in 2012, and Taiwan fell to its lowest since IHS Markit cautioned the rise did not September 2015. Taiwan and South Korea, which are Britain’s struggling economy – it was caused leaning on tech production, also saw activity in large part by manufacturers stockpiling and coincides with a slowdown in demand for On a related development, Malaysia is smart phones globally. relying on free trade agreements (FTA) to “We are really seeing a global slowdown avoid anti-circumvention probes. into this year, and in Asia, particularly, export- Under such practises, US and Chinese

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‡&RYHU6WRU\LQGG 30 companies relocate production to the country import duties on some US$200 billion worth 7KHWUDGHFRQÀLFW of Chinese goods, forcing Beijing to retaliate between the US and Reuters reported on October 11, 2018 on in kind. a written interview with the Nikkei Asian “In response, Malaysia will pursue China will have global Review where Minister of International Trade FTA negotiations, because exporters have repercussions, not to stipulate the country of origin of their only will it inhibit the possibility that companies from the products. Malaysia has implemented 13 global trade and two countries will try to avoid the impact by FTAs and is negotiating four more, including growth but there will with the Regional Comprehensive Economic such as Malaysia, Thailand and Vietnam. Partnership. also be disruptions “This, however, could potentially result RCEP, which comprises the 10 Southeast to supply chains, in Malaysia [being] targeted as a country Asian countries plus China, Japan, South impacting businesses, Korea, India, Australia and New Zealand, jobs and consumers subject to some costly anti-circumvention accounts for about one-third of the world’s investigations,” he said. gross domestic product and half its Recent trade data suggests there has population. enterprises, and institutional provisions. so far been only limited impact from the The Star reported on November 3, 2018 escalating trade tensions between the on the stark realities should the trade war two major economies, but it is expected to to government procurement, customs prolong. increase. The administration of US President procedures and trade facilitation, economic “Over the period of 2018 to 2020, Donald Trump imposed a third round of and technical cooperation, small and medium Malaysia’s export risks will decline by 0.08

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percentage points as a result of the US- China trade war, while the country’s gross domestic product (GDP) could decline by 0.02 percentage points. “The estimate is based on the assumption that almost 50% of Malaysia’s exports are which are then exported to the US. “The Economic Outlook 2019 cautions that the impact of the ongoing trade issue on Malaysia would intensify, if the trade talks fail and cause hostilities to escalate. “A worsening trade war could drag down global output by 0.4 percentage points by 2020. This means, the Malaysian economy “The report also pointed out that a 10% drop in global growth would reduce https://www.scmp.com/news/china/diplomacy/ ܯĪDzłżƣƸƫܯƣĪģżǀěŧĪܯǝŏŧŧܯǀƫܯĜŊŏŲÿܙڙڒڔڗژڑڒܙMalaysia’s GDP by a whopping 14%. The March 1 deadline however passed as ÿƣƸŏĜŧĪ and-speed-trade-talks-chinese President Donald Trump said there was no ŊƸƸƠƫ܌ܙܙǝǝǝܓĜŊŏŲÿܯěƣŏĪǾŲŃܓĜżŰܙŲĪǝƫܙƸŊĪܯǀƫܯ China will have global repercussions, not only magical date, stating that the talks covered china-trade-war-a-timeline/ will it inhibit global trade and growth but very complex issues. ŊƸƸƠƫ܌ܙܙǝǝǝܓƣĪǀƸĪƣƫܓĜżŰܙÿƣƸŏĜŧĪܙǀƫܯŃŧżěÿŧܯ economy/u-s-china-trade-war-takes-toll-on- there will also be disruptions to supply chains, The US President also said that he would ژڕڐàڑŏģîf tܯŰÿŲǀłÿĜƸǀƣŏŲŃܯŃŧżěÿŧ impacting businesses, jobs and consumers. probably meet with President Xi in Florida in ŊƸƸƠƫ܌ܙܙÿƫŏÿܓŲŏŤŤĪŏܓĜżŰܙ/ĜżŲżŰǣܙ¼ƣÿģĪܯàÿƣܙ “Moreover, greater-than-expected March to discuss important terms of a trade rÿŧÿǣƫŏÿܯłĪÿƣƫܯƸÿƣŏDzłܯģżģŃŏŲŃܯƠƣżěĪƫܯÿŰŏģܯîܯ

deal. ŊŏŲÿܯƸƣÿģĪܯǝÿƣ ܙژڒܙڙڐܙژڑڐڒܙĜżŰܓƸŊĪŰÿŧÿǣƫŏÿŲƣĪƫĪƣǜĪܙܙ܌ŊƸƸƠƫ than-anticipated monetary tightening by the An extended deadline would put on hold trade-war-may-impact-local-industries-on- US Federal Reserve, which may further hurt ƠƣżģǀĜƸܯģǀŰƠŏŲŃܙ investment and global restocking demand,” 10 percent on $200 billion worth of Chinese https://www.thestar.com.my/business/business- ܯƸŊĪܯżŲܯǝÿƣܯƸƣÿģĪܯżłܯŏŰƠÿĜƸܙړڐܙڑڑܙژڑڐڒܙŲĪǝƫ it said. imports into the US. malaysian-economy/ The talks held in Washington recently For the time being it is certainly a small https://www.reuters.com/article/us-usa-trade- between the US and China though not step towards averting further escalation of the china/trump-says-hes-inclined-to-extend- china-trade-deadline-and-meet-xi-soon- ongoing trade war. ¥ðڑ ¥ڑconclusive did bring about some signs of ŏģîf t

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Malaysian Palm Oil ...a gift for life www.mpoc.org.my

The Malaysian palm oil industry provides livelihood to millions; making large economic contributions to Malaysia and the world. AN OIL WITH MANY POSSIBILITIES

Palm oil is more than just about its goodness and rich source of tocotrienols. There are other substances in the vegetable oil which also lend a lot of health benefits. Take a look at some of them. Plants contain unique substances, called phytonutrients, which are believed to provide health benefits to us, such as protection from certain diseases while boosting our heart health. Research has uncovered a considerable amount of phytonutrients in palm oil. In a review paper co-authored by Professor Dr Ammu K from plant sources including palm oil. It not only helps to inhibit ZĂĚŚĂŬƌŝƐŚŶĂŶ͕ƉƵďůŝƐŚĞĚŝŶƚŚĞDĂůĂLJƐŝĂŶ:ŽƵƌŶĂůŽĨEƵƚƌŝƟŽŶ ĐŚŽůĞƐƚĞƌŽů ƉƌŽĚƵĐƟŽŶ͕ ƚŚƵƐ ƌĞĚƵĐŝŶŐ ĐŚŽůĞƐƚĞƌŽů ůĞǀĞůƐ ĂŶĚ in 2010, it is stated that palm oil contains the following providing a boost to heart health and also helps reduce the risk phytonutrients. Crude palm oil is said to be one of the richest of certain cancers, such as skin cancer. Phytonutrients found ŶĂƚƵƌĂůƉůĂŶƚƐŽƵƌĐĞƐŽĨϭϯĚŝīĞƌĞŶƚƚLJƉĞƐŽĨĐĂƌŽƚĞŶŽŝĚƐ͕ƚŚĞ ƉƌĞƐĞŶƚ ŝŶ ƐŵĂůů ƉŽƌƟŽŶƐ ŝŶ ƉĂůŵ Žŝů ĂƌĞ ƉŚŽƐƉŚŽůŝƉŝĚƐ͕ substances that give palm oil its orange-reddish colour. Red palm coenzyme Q10 and polyphenolics. ŽŝůŝƐĂƌŝĐŚƐŽƵƌĐĞŽĨƉŚLJƚŽŶƵƚƌŝĞŶƚƐͲɲͲ;ĂůƉŚĂͿ͕ɴͲ;ďĞƚĂͿĂŶĚɶͲ WŚŽƐƉŚŽůŝƉŝĚƐ ƉƌŽŵŽƚĞ ĂŶĚ ƐƵƉƉŽƌƚ ďĞƩĞƌ ŶĞƌǀĞ ĨƵŶĐƟŽŶ͕ ;ŐĂŵŵĂͿĐĂƌŽƚĞŶŽŝĚƐĂƌĞĐŽŶǀĞƌƚĞĚŝŶƚŽǀŝƚĂŵŝŶŝŶƚŚĞďŽĚLJ͘ ŝŵƉƌŽǀĞ ŵĞŵŽƌLJ ĂŶĚ ďƌĂŝŶ ĨƵŶĐƟŽŶ ĂƐ ǁĞ ĂŐĞ͘ dŚĞLJ ĐĂŶ ďĞ Beta carotene can prevent LDL cholesterol – the bad cholesterol useful to pregnant women, to help support the memory and – from being oxidised, which, increases the risk of coronary brain development of the baby. Coenzyme Q10 boosts energy heart disease. Research increasingly suggests that some ƉƌŽĚƵĐƟŽŶďLJƚŚĞďŽĚLJĂŶĚƉƌŽƚĞĐƚƐĨƌŽŵĐĞůůĚĂŵĂŐĞĐĂƵƐĞĚ carotenes may protect from certain cancers, such as breast by free radicals and other by products of metabolism. cancer. Apart from carotene, palm oil is also a rich source of WŽůLJƉŚĞŶŽůŝĐƐ ŝŶŚŝďŝƚƐ ŽdžŝĚĂƟŽŶ ŽĨ ďĂĚ ĐŚŽůĞƐƚĞƌŽů͕ ƚŚƵƐ phytonutrients such as phytosterols which are well-known for ƉƌŽŵŽƟŶŐďĞƩĞƌŚĞĂƌƚŚĞĂůƚŚ͘/ƚĂůƐŽƉƌŽƚĞĐƚƐĨƌŽŵĐĂŶĐĞƌƐƐƵĐŚ their ability to help lower the cholesterol levels in our body. as prostate cancer and breast cancer. dŚĞLJ ĂƌĞ ĨƌĞƋƵĞŶƚůLJ ĂĚĚĞĚ ƚŽ ĨŽŽĚƐ ƚƌĂĚŝƟŽŶĂůůLJ ŬŶŽǁŶ ƚŽ ďĞ ŚŝŐŚŝŶĨĂƚƐ;ƐƵĐŚĂƐŵĂƌŐĂƌŝŶĞĂŶĚďƵƩĞƌͿƚŽƌĞĚƵĐĞƚŚĞƚŽƚĂů #loveMYpalmoil cholesterol and bad cholesterol content. Squalene, the substance mostly found in shark liver oil, can also be obtained BUSINESS FEATURE

STILL UPBEAT ABOUT THE ECONOMY Malaysia is forecast to grow anything from 4.5% to 4.9% in 2019

At a time when the term – disruption – seems to take a life of its own we see disruptive trends dominating the global economy with the US- “A closer attention is now paid to economic growth outlooks of China trade impasse providing a major headwind. each emerging economy amid successive rate hikes,” said Tsutomu Despite the turbulent times, Malaysia’s economy is still holding Soma, General Manager of the Investment Trust and Fixed-Income well and well regarded in business circles. Bloomberg in its “Emerging Department at SBI Securities Co. in Tokyo. Markets” list released on November 28, 2018 “Investors are also deciphering how ranked Malaysia as No.1. According to the each country is impacted by the US-China According to the study which ranked 20 study which ranked 20 trade frictions. They will continue to be more countries Malaysia’s performance was due to selective with their investments given such its current-account surplus, relatively stable countries Malaysia’s circumstances,” he added. economic growth outlook and valuations. performance was due to its current-account cannot be downplayed. According to a came in at 0.6 percent in October from surplus, relatively Bloomberg report on December 26, 2018 the a year earlier, compared with its 10-year stable economic government bond yield of about 4.17 percent. uncertainty whether a fragile truce can be The scorecard also revealed the strong growth outlook and maintained. showing by Asian countries. China, the valuations. “Asia is going to face quite a few challenges” in early 2019, Rob Subbaraman, six economies. Head of Emerging Markets Economics and Asia Ex-Japan Fixed Income These countries derive their strength from current-account Research at Nomura Holdings Inc. said. “Especially for global trade, things will get worse before they get better, with the technology cycle

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BUSINESS FEATURE

RANK COUNTRY TOTAL GDP CURRENT ACCOUNT RATINGS RESERVES VALUATIONS 1 MALAYSIA 2.55 0.48 0.88 0.91 -1.00 1.27 2 RUSSIA 2.36 -1.22 1.63 0.01 0.00 1.93 3 CHINA 1.39 1.47 0.22 1.21 -1.00 -0.51 4 PHILIPPINES 1.00 1.44 -0.36 0.01 0.00 -0.09 5 COLOMBIA 0.89 -0.48 -0.80 0.01 0.00 2.16 6 THAILAND 0.87 0.20 2.52 0.61 0.00 -2.46 7 POLAND 0.80 0.22 -0.07 0.91 -1.00 0.73 8 MEXICO 0.79 -0.96 -0.41 0.61 -1.00 2.54 9 CHILE 0.78 -0.06 -0.53 1.51 -1.00 0.86 10 KOREA 0.75 -0.65 1.34 1.81 -1.00 -0.75 11 INDONESIA 0.62 0.77 -0.70 -0.29 -1.00 1.84 12 INDIA 0.48 2.06 -0.72 -0.29 0.00 -0.58 13 PERU 0.15 0.08 -0.39 0.61 0.00 -0.15 14 HUNGARY -0.28 0.00 0.67 -0.29 -1.00 0.34 15 BRAZIL -0.85 -1.13 -0.23 -1.18 0.00 1.70 16 ROMANIA -1.07 -0.03 -1.08 -0.29 0.00 0.33 17 EGYPT -1.58 0.88 -0.77 -1.78 0.00 0.09 18 CROATIA -2.21 -0.65 0.78 -0.58 -1.00 -0.75 19 SOUTH AFRICA -3.07 -1.47 -0.98 -0.58 -1.00 0.95 20 TURKEY -4.06 -0.95 -1.00 -1.18 -1.00 0.08

Source: Bloomberg

Merchandise trade accounts for more register slight improvement in the 2Q2019 deterioration in the health of the goods- than 200 percent of Singapore’s economy, and producing sector since May. more than 100 percent of those of Vietnam, from the low base besides support coming “Besides, we noticed forward-looking Malaysia, and Thailand. from domestic activities, foreign direct gauges also indicate downside risks with According to the Ministry of Finance investments and complemented by exports as overall demand to be weak, thus causing Economic Outlook report for 2019 released the electronics cycle slows down, added with companies to become less willing to hold on November 2, 2018 the forecast for stocks,” he said. manufacturing still remains positive. Chief Economist and Head of Research, In terms of growth rate the MoF has The manufacturing sector is expected Dr Anthony Dass in a report carried in forecasted 4.9% for Malaysia in 2019, to register stable growth in line with The Edge on January 3, 2019. supported by sound domestic demand. developments in the global semiconductor Dass, said the manufacturing sector, The private sector expenditure is expected industry. based on the Nikkei Malaysia Manufacturing to remain as the key driver of Malaysia’s “The export-driven sector increased 5.1% Purchasing Managers’ Index or PMI, observed a deep decline in business conditions in lower public sector spending in 2018 and 2019. for the whole year, it is expected to grow 4.9%, December. The headline PMI fell to a six- “Private investment is anticipated largely led by export-oriented industries. month low to 46.8 in December from 48.2 to expand with capital outlays mainly “In 2019, the manufacturing sector is in November. The demarcation between channelled into the services and forecast to expand 4.7% supported by export- expansion and contraction is 50. manufacturing sectors,” the report stated. oriented industries following continuous “The data points to the sharpest However, public expenditure is projected expansion in electrical and electronic (E&E), as well as chemicals and chemical product subsectors,” it added. The MoF believes there will be continued demand for Malaysian manufactured exports, including E&E, petroleum, chemical, rubber and plastic products, as a result of continuous expansion in the electronics cycle and favourable global industrial activities. However research has revealed that the year-end performance of industries in Malaysia has been lacklustre. Ambank Research provided data to support this assessment. “We believe the economy should start to

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BUSINESS FEATURE

to record a slower growth following initiatives by an 8.4 percent surge in the price of eggs taken by the government to review and fuel subsidy led to a 7.8 percent decline in and a 5.3 percent jump in chicken. Malaysia reprioritise expenditure as well as lower transport costs in January from a year ago, the started an investigation in December into capital spending by public corporations. biggest drop of all the categories. potential cartel activities in the industry.” According to the latest Bloomberg report “While price pressures have eased, the Generally the economy’s fundamentals on February 22, 2019 the Malaysian economy government is still concerned that ordinary are sound with some economist predicting Malaysians haven’t felt it in their wallets. it will bottom out this year. The growth “Finance Minister Lim Guan Eng is looking rate albeit not spectacular as some ASEAN crisis in 2009. countries like the Philippines will be “Consumer prices declined 0.7 percent living costs,” the report said. sustainable. “The central bank has kept interest rates percent in the previous seven months, unchanged at 3.25 percent since raising it in https://www.imoney.my/articles/malaysia- bloomberg-top-emerging-market according to the statistics department. The January 2018. Policy makers expect average https://www.bloomberg.com/news/ median estimate in a Bloomberg survey of articles/2018-12-25/steady-not-strong-as- 21 economists was for a contraction of 0.4 southeast-asia-faces-growth-risks-in-2019 percent.” in June to November 2009. The economy http://www.theedgemarkets.com/article/ malaysia-economy-likely-bottom-out-2q2019- “Malaysia’s price growth turned negative contracted 1.5 percent that year. says-ambank-research “The cost of food and non-alcoholic drinks http://www.theedgemarkets.com/article/ Some of the key insights posted in the rose 1 percent in January from last year, driven mof-malaysian-manufacturing-sector-grow-47- yoy-2019

According to the latest Bloomberg report on February 22, 2019 the Malaysian economy has gone LQWRGHÀDWLRQLQ January. This trend only took place during WKHJOREDO¿QDQFLDO crisis in 2009.

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‡%XVLQHVV)HDWXUHLQGG 30 THE COMMUNICATOR

USING INSTAGRAM FOR BUSINESS Posted visuals remain a strong messaging method for companies to use to boost customer engagement, customer search and sales

While Instagram is a known platform for visual content and is being receiving their feedback, responding and communicating through Feedback and comments are important especially when releasing a new product, whereby its look, design and functionality main asset though is its worldwide reach of 300 million active users or process can spark much commentary or critique which will be

/¼®¼¦/Stܰ£St¼StG t®Ãr£ ܏ژ ®¦/rf/¼N/ tt/ ¼StàS¼N î¼r ܏ڗ It is quite understandable that a lot of business people use The value of sending out a photo on your Instagram account Facebook and Twitter to communicate with their respective By knowing what your audience thinks about a product or a new What perhaps, is relatively unknown is that Instagram has a Knowing what a customer likes and conversely what they don’t has reported that Instagram has 120 times more engagement per like shapes the ideas and brain trust behind the planning for future Such high engagement means the platform is both credible If your business has new premises or a new location all it takes

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is for your customers to tag the location and their friends and contacts will be in One of the best ways to ensure that photos are shared is to snap a photo of you have shared the photo you will see a link above the photo that you can click to curiosity is toward the move and how

/® NStGt/à /¦ ܏ڙ The medium of Instagram makes it a lot New content is easily found through SßStG®h/® The advice is not to make the case¦' ܏ڛ media platforms, whenever someone In terms of developing a valuable way to for hard-sell too much so refrain phrases push sales there’s nothing much better like “Buy now!” or “shop online” and think Instagram a link is created, from where than using professionally-made photos of of creative ways to present the photos of you can see all the shared photos using your products and services and promoting your products and services and let the The notion that Instagram is only a https://www.socialmediaexaminer.com/ platform to boost customer engagement instagram-engagement-businesses/ can even hashtag the location where they facts from e-commerce platform Shopify These hashtags can be similarly who found that the average price tag for a sale referred from Instagram is US$65, For instance a business producing bags or compared to US$55 for Facebook and shoes can hashtag people who are sharing In addition to hashtags, Instagram also has a Discover tab, dedicated to The medium of Instagram Ntt/hr¦f/¼StG ®®¦ ܏ښ Not surprisingly it is easy to interchange makes it a all the content you have created in lot easier for Instagram and this can be shared across people to ¿QGQHZ You can enable your settings in contacts Instagram to automatically share your DQGQHZ those who need to review a photo before business phone’s camera roll and send it when can also be shared in email marketing

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‡&RPPXQLFDWRULQGG 30 No. 1 hvls Fans in Malaysia Since 2008

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7 Cubic Space, No. 6, Jalan Teknologi ¾ Lot 21, Block C, Bundusan Industrial Park Taman Sains Selangor 1, Kota Damansara Kampung Hungap, Penampang 47810 Petaling Jaya, Selangor, Malaysia 89500 Sabah, Malaysia Tel: +603 61516062/6063/6064 Fax: +603 61516065 Tel: +6088 703493 BRAND BUILDER

EFFECTIVE BRAND BUILDING Simple guidelines to build your company and its products

BY PATRICK HO

“Why do so many businesses in Malaysia fail?” success of developing a brand is the start-up We have heard that question so many capital. times but obviously, there are no quick answers. is needed to start the wheels of industry Many factors determine the success of turning. a company’s growth and the turnover of its And when it comes to investing in products. brand building, this is an area most Every great company or brand starts with lacking with Malaysian businessmen a necessity, a light bulb moment. and entrepreneurs. Some corporate giants of today exist How do you promote your business due to wars, from droughts, starvation and when you do not invest in marketing political discord in their respective countries. and promotions? How will your target process, while unbridled enthusiasm will say, The one common question that “This is going to make us rich!” most Malaysian businessmen ask, But as many seasoned entrepreneurs can “How can you convince me that I tell you, an idea is just an idea unless you have will make ‘X’ amount if I spend on a solid project plan. this marketing campaign costing The other major factor determining the the company RM1.5 million?”

20 BIA @ FMM Q JAN - MAR 2019

‡%UDQG%XLOGHULQGG 30 www.tnb.com.my CONTROL BE IN BE SMART https://maevi.my T • SmartHomeAutomation • Energy Monitoring • HomeSecurity 3-in-1 solution: anytime, anywhere. your mobilephone, into aSMART Homevia MAEVI turnsevery house R²QGRXWPR re about

T ENAGA NASIONAL BERHAD (200866-W) BRAND BUILDER

While that is a valid question, companies must remember that the term marketing and towards building your company’s brand and products. But before sales, it is advised that marketing and promotions be prioritised to As one brand guru once said, “If the consumer doesn’t know about your brand story, and if they don’t see your product logo, If the consumer doesn’t know about BRAND BUILDING CHECKLIST your brand story, and Planning: Question your brand idea/s. if they don’t see your Recognise the value of your brand, better product logo, how are yet, develop one. Design a strong and attractive logo that stands out, create a you going to generate corporate identity. Use a good designer/ VDOHVSUR¿WV" advertising agency. Budget: Allocate advertising and promotions budget – THAT’S THE KEY. Your yearly advertising and promotions budget need not break the bank. BUT YOU NEED ONE. It can start as high as RM1 million to as low as RM100,000. If you do not use the budget up, carry it forward to the following year. Brand name: Everyone has a name. Especially famous brands. Don’t copy platforms. You can either create your own who says you can’t have a nationwide or have a brand name that is similar. Be channel for your brand/s or, pay for your road show? Websites and social media original. It can originate from history, TV commercial spot. Therefore, create a is a fantastic medium to create eyeballs. philosophy or your personal travels. Be as corporate video or brand storyboards for But humans are made up of senses. creative as you like, but be original and be your promotions campaign. Better yet, When you bring your brand of products these videos can be shared via Whatsapp to the consumers, this is where you have Consumers: Do you know who is your and other mobile apps. a better chance of building a long- target audience? What age group? Brand philosophy: Building a brand is not lasting relationship. A road show doesn’t Conduct a market survey of your product just about making money. A corporation necessarily generate sales. Just be visible. and services before you launch. Engage or brand needs a reason or two. That’s Tell people you exist. where having a brand philosophy is EDMs: Sending out EDMs (Electronic “war” without ammunition? important. It relates to the consumers’ Direct Mail). Database mining is crucial to Social Media: It’s the best era to be a behaviour, attitude and beliefs. reach out. But it should not be irritating. marketer. The digital age has brought Quality: What are consumers paying for? Be informative but never oversells. with it social media. But it is not as easy as Why do they buy a certain brand? It is all learning the ABC’s. Most brands engage about quality. Humans work longer hours While this checklist may not complete today. And when they do indulge, quality the whole brand building picture, they are time, what image and what headline is everything when they spend their hard- essentials before you start a brand awareness to attract consumers on Facebook, earned money. Manufacturers should and communications campaign. Instagram and Twitter. never compromise on this. It helps to know what you want when Videos: In this day and age, the mass Road shows: dealing with your advertising agency as well. viewership via YouTube makes it one FMCG products normally. But if you are But more than anything else, tell a brand of the world’s most vital marketing manufacturing gears and industrial parts, story.

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‡%UDQG%XLOGHULQGG 30 ESTABLISHING AN ECOSYSTEM FOR IoT TO THRIVE Stakeholders in the ICT industry are working together to create an ideal platform for the technology to grow in Malaysia

By now the term – Internet of Things (IoT) may have a familiar ring if not already being in use in Malaysia. Industrial Revolution or Industry 4.0 and should be known to all. However it still Datuk Abdul Wahab also believes that remains a murky treatise that needs further stated that by 2020 an estimated 20 billion WHAT IS IoT? Positive trends are emerging with regard On this note it is safe to say that Malaysia

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‡7HFK7DONLQGG 30 TECH TALK

The aim is to help these colleges and universities to produce relevant and industry- ready graduates for the ICT industry. With the partnership, universities and colleges are now looking at offering more relevant topics such as IoT and Big Data Analytics into the syllabus.

However all stakeholders also realise that for the IoT industry to grow it needs a various IoT-based solutions in the monitoring, energy management solutions and others. solutions. http://www.investkl.gov.my/Relevant_News- @-Malaysia_Gets_Serious_on_Developing_IoT_ and Innovation added that IoT is likely to Ecosystem.aspx “IoT will be the key driver in

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‡7HFK7DONLQGG 30 DATA INFORMER ECONOMIC PROSPECTS FOR 2019 The Organisation for Economic Co-operation and Development (OECD) maps future scenarios for ASEAN-5 countries

In its “Emerging Asia” report for 2019 and beyond, the Organisation for Economic Co- operation and Development (OECD) included forcasts for ASEAN-5 countries, namely Malaysia, Indonesia, Philippines, Thailand and Vietnam. Malaysia is estimated to grow by 4.6% in 2019-23, 50 basis points slower than growth in 2012-16. Private consumption will likely remain strong, backed by a supple labour market. Low unemployment will remain as the labour market grows and real wages rise. Indonesia’s GDP growth is expected to average 5.3% in the mid-term, the same rate as in 2012-16. Private consumption is expected to expand vigorously underpinned by a vibrant labour market that has grown boost the economy although the quality of Exports will continue to drive the economy since 2007. The investment climate continues the spending should be studied further. boosted by foreign direct investment (FDI). to brighten providing more scope for the To remain robust the quality of the labour expansion of the production base and job is expected to grow by 3.7% a year slightly market may need to be upgraded. The issue openings. Public debt-to-GDP ratio remains better than the 3.4% registered in 2012- over non-performing loans (NPL) also needs under control. 2016. Some changes in the legislation over attention. It is exciting times for the Republic of the the past two years are expected to have a The Organisation for Economic Co-operation and Development is an heading into 2023 as it is expected to register point to an improving investment climate. intergovernmental economic organisation an annual growth rate of 6.6% similar to the The East Economic Corridor (EEC) and its with 36 member countries, with a mission to rates in 2012-2016. Private consumption will implementation will be seen as a vital stimulate economic progress and world trade. still depend heavily on remittances from contributor to growth momentum. It was started in 1961 and is based in Paris, abroad. The unemployment rate has risen Vietnam’s economy is also on the move France. recently and this area will require further and is expected to grow 6.5% in the mid-term http://www.oecd.org/development/asia- Ơģłܓ /àܛǜĪƣǜŏĪǝܛڙڑڐڒ/®ܛڑڐܙattention. Public budgetary spending helps from 2019-2023 up from 5.9% in 2012-2016. ƠÿĜŏǾĜ

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‡'DWD,QIRUPHULQGG 30

FMM – MIER BUSINESS CONDITIONS SURVEY

MANUFACTURING ACTIVITY PICKS UP IN 2H2018, EXPECTS TO SLOW DOWN IN 1H2019

KEY RESULTS: Q Business activity picks up in 2H2018, to slow down in 1H2019 Q Local and export sales improve in 2H2018. Weaker demand expected in 1H2019 Q Production volume and capacity utilisation shift higher in 2H2018. Expected to slow down in 1H2019 on weaker demand Q Cost of production on upward trend again Q Higher capital investment in 2H2018 and similar expectation in 1H2019 Q Lack of clarity on application for tax exemption is key technical issue of SST Q SST increases cost of doing business by up to 10% Q Most companies do not have issue with the seven-year limit set on carrying forward of losses/allowances for tax relief Q Most companies agreeable to proposed amendments of the First Schedule of the Employment Act (EA) 1955 Q 2019 National Budget should boost economic growth and Industry 4.0 readiness Q Minor impact of the US-China trade war on export or import activities Q 70% of respondents opined that the minimum retirement age be retained at age 60

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‡0,(55HSRUWLQGG 30 FMM – MIER Business Conditions Index Values

Indicators Current Looking Forward (Compared to 6 months ago) (Next 6 months) 1H2017 2H2017 1H2018 2H2018 2H2017 1H2018 2H2018 1H2019 Business conditions 101 115 97 107 110 120 124 101 Local sales 87 107 91 93 102 110 113 94 Export sales 109 113 99 107 117 117 122 105 Production volume 105 122 103 111 117 126 130 110 Capacity utilisation 103 118 99 107 111 118 127 109 Capital investment 113 116 109 114 120 122 117 120 Number of employees 109 110 107 110 114 117 116 105 Cost of production 165 164 150 155 153 157 145 148

Malaysian manufacturers reported a pick-up increased on improved sales. Both the they were in the past survey. The index for in business activity in 2H2018, although indexes for current production volume and expected business activity plunged twenty- growth was slower than 2H2017. Production capacity utilisation gained eight points three points to 101, portending a slowdown volume and capacity utilisation rose in each from 1H2018 to 111 and 107 in 2H2018, in 1H2019, with 27% anticipating a pick-up tandem with the increase in export and local respectively. in business while another 26% expecting a sales. Capital investment and employment 38% of the respondents stepped up their decrease. also expanded, amid higher cost of production volume, up from 32% in 1H2018. The expected local sales index and export production. With global economic challenges 33% also increased their capacities, up from sales index also edged lower to 94 and 105, still confronting Malaysia, the manufacturing 25% in 1H2018. respectively, pointing to weaker demand, sector is expected to head into 2019 with more especially from abroad. caution and lower expectations from sales to Cost of Production and Capital Investment The index for expected production lost employment. ®ŊŏǽƸNŏŃŊĪƣ 20 points to 110, suggesting a deceleration The current index for production cost was in output in the coming months. 32% will CURRENT BUSINESS ACTIVITY PICKS UP expand their production volume and 24% will Business activity grew in 2H2018. The general that production costs have trended higher. produce less, down from the former survey’s business activity index gained ten points to 62% of the respondents noted higher costs, 46% and 16%, respectively. 107 from 1H2018. 37% of the respondents compared to 58% in 1H2018. But costs in reported an increase in business activity, 2H2018 were relatively lower than 2H2017 concurrently to production volume in up from 29% in the last survey. Negative when a bigger majority of 70% reported 1H2019, as indicated by the expected capacity responses totalled 30% this time around, higher costs then. utilisation index which slipped eighteen down from 32% received in 1H2018. The current capital investment index points from the earlier survey to 109. 31% will rose to 114 from 109 in 1H2018, implying that increase, while another 22% will decrease Local and Export Sales Improve more capital expenditure was expended. their capacities early 2019. Both local and export sales picked up in 31% of the respondents increased their The index for expected production cost 2H2018, although the latter performed better capital investment in 2H2018, up from 27% in rose three points to 148, a sign of increased than the former. The local sales index and 1H2018. cost of production to come soon, with 57% export sales index rose two and eight points respondents foreseeing this. The expected from 1H2018 to 93 and 107, respectively. Better Employment Prospects capital investment index grew three points Notwithstanding this, the local sales index The index for current employment grew to to 120, an indication that respondents plan 110 from 107 previously. 24% of respondents to increase capital spending in the months threshold, indicating that local sales have hired more workers in 2H2018, up from 21% ahead. grown at a slower pace than export sales. in 1H2018. The expected index for employment was eleven points down to 105, signalling a slow- Production Volume and Capacity Utilisation CAUTIOUSLY SLOW OUTLOOK FOR 1H2019 down in hiring in 1H2019. Only 20% will likely Increase Looking ahead, respondents are more increase their headcount, down from 27% in Production and capacity utilisation have cautious about the 1H2019 outlook than the prior survey.

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‡0,(55HSRUWLQGG 30 FMM – MIER BUSINESS CONDITIONS SURVEY

Sales and Service Tax (SST) 2.0 Implementation Issues

COST FACTORS

*Percentages denote number of respondents

SALES AND SERVICE TAX (SST) 2.0 The main factor for the higher cost, re-investment allowances (RA), investment according to 36% of the respondents, tax allowances (ITA) and pioneer losses (PL). 2018. In terms of implementation, the key was that the SST 2.0 on raw materials, 69% of the respondents replied that technical issue faced by most respondents components and/or services is higher than the (39%) is the lack of clarity on the application former Goods and Services Tax (GST). losses/allowances to be carried forward for of procedures for exemption. 36% complained 35% are not eligible for the SST exemption tax relief. about the uncertainty of treatment of drop which was the reason for the spike in their The remainder 31% have losses/ shipment, taxable services and invoicing, business costs, while 32% are subject to the allowances across the board to be carried while 28% have issues with the mySST system SST which they were not taxable under the forward for tax relief of which 58% have CA previous GST. while 50%, 47%, 13% and 4% have UL, RA, access, unclear instructions). Other technical Some respondents also have to absorb the ITA and PL, respectively. Most respondents issues noted by some respondents were higher cost of doing business now as they are estimated their unabsorbed losses/ unable to claim input tax under the SST which allowances to be, on average, at 10% of their inconsistency of their advice, confusion with they were able to under the GST regime. adjusted income for each YA. These amounts had accumulated mostly The SST 2.0 has generally increased the LIMIT ON TAX RELIEF since YA 2014 to 2018. Across the board, the cost of doing business of most respondents Budget 2019 limits the carrying forward respondents need between 3 and 15 YAs to by up to 10%. Among them, 42% estimated of losses and allowances for tax relief fully utilise their tax relief. their increase to be less than 5%, 34% to be in from Year of Assessment (YA) 2019 to a According to 34% of the respondents, the the range of 5% to 10%, and 7% by more than maximum of seven years for unutilised business losses (UL), capital allowances (CA), would like it be raised to 10-15 years.

30 BIA @ FMM Q JAN - MAR 2019

‡0,(55HSRUWLQGG 30 EMPLOYMENT ACT (EA) 1955 current provisions of the EA are already pro the current retirement age of 60 in view Most (30%) respondents are agreeable to the employees. of the high number of retirees without Government’s proposal to amend the First Respondents proposed that the Schedule of the EA, in three aspects: (i) to amendments should look into improving Close to 70% of respondents opined apply the Act to all employees irrespective of that the retirement age should remain at wage levels; (ii) remove distinction between and processes, instead of increasing age 60, although 20% felt that it should be manual and non-manual workers; and (iii) administrative burden and cost. The raised to 65 and 4% are in favour of extending Government should provide a forum for it to 62. overtime and rest day), holiday pay and discussion on the proposed amendments. Most of the respondents who voted Provisions of the EA should be more balanced for the retirement age to be maintained exceeding RM5,000 a month. and fair for both employees and employers. at age 60 were mainly from the top 26% of the respondents do not agree with management level (GM / MD / CEO / any of these proposals, while 3% to 11% are 2019 NATIONAL BUDGET Director / Chairman) of micro, small and only agreeable to some of them. The main Economic growth and Industry 4.0 readiness medium-sized companies, whereas for large concern was the expansion of the scope of the are the main expectations of respondents for corporations, most of these responses were EA and work hours, holiday pay, termination the 2019 National Budget going forward. from the middle management level (senior / 58% of the respondents believed that manager / head). which will indirectly increase labour and the Budget should boost economic growth, while readiness of Industry 4.0 is the choice of US-CHINA TRADE WAR chain. The respondents suggested that the 36%. Training and productivity received 24% On the ongoing trade war between the US scope of the EA be maintained at the current responses. Another 20% believed the Budget and China, respondents were asked if their RM2,000 level or be adjusted higher to should boost foreign direct investment, but RM3,000 to RM3,500. domestic investment is more important for Some of the respondents also believed 19% of the respondents. responded positively, while 17% negatively. that the competitiveness of Malaysian The trade war has no impact on the imports of companies vis-à-vis neighbouring countries EXTENSION OF RETIREMENT AGE 73% of the respondents either. Only 15% were The Government was looking into reviewing

IMPACT OF US-CHINA TRADE WAR VIEWS ON EXTENSION OF RETIREMENT AGE

*Percentages denote number of respondents

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‡0,(55HSRUWLQGG 30 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 sta9 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 97 new members, comprising 71 Ordinary Members and 26 ADliate Members that joined the Federation from November 2018 to February 2019.

ORDINARY MEMBER Carlbeck Bottlers (Malaysia) Sdn Bhd

3R Quest Sdn Bhd Chin Herr Industries (M) Sdn Bhd

A Star Glasstech (M) Sdn Bhd Chip Card Sdn Bhd ACA Vision Technology Sdn Bhd Core Pax (M) Sdn Bhd Ace Gases Marketing Sdn Bhd Cosmo Ingredients (M) Sdn Bhd Advent Packaging Sdn Bhd CSA Terminals Sdn Bhd Aureumaex Industries (M) Sdn Bhd CXM Holdings Sdn Bhd Austral Dairy Group Sdn Bhd D E S Electronics Sdn Bhd Bactiguard Malaysia Sdn Bhd DEG Industrial Supplies Sdn Bhd Berjayapak Sdn Bhd DK Leather Seats Sdn Bhd Boostorder Sdn Bhd Duncan Gilbey (Malaysia) Sdn Bhd Borneo Taiko Clay Sdn Bhd EC Excel Wire Sdn Bhd Bostik Findley (Malaysia) Sdn Bhd Elantas Malaysia Sdn Bhd

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‡1HZ0HPEHUVLQGG 30 Emec Scienti"c Sdn Bhd Times Ceramica Sdn Bhd Ewein Winery (M) Sdn Bhd TSC Chocolate Manufacturing Sdn Bhd Excel Polymer Sdn Bhd United Caps Kulim Sdn Bhd FFM Further Processing Sdn Bhd Vanity Cosmeceutical Sdn Bhd Globalmation Sdn Bhd Viacor Asia Sdn Bhd HKS Century Sdn Bhd W&S Plastics (Malaysia) Sdn Bhd Idemitsu SM (Malaysia) Sdn Bhd Warisan Impian Maju Sdn Bhd Insa-Alliance Sdn Bhd Xin Da Spinning Technology Sdn Bhd In-Tech Electronics Sdn Bhd YGL E Manufacturing Sdn Bhd JCY HDD Technology Sdn Bhd Jutasama Sdn Bhd AFFILIATE MEMBER K.K. Metal Processing Sdn Bhd Agensi Pekerjaan Aj Tawakal Sdn Bhd Kamen Steel Industries Sdn Bhd CCM Duopharma Biotech Berhad Kejuruteraan Fong Hong Sdn Bhd Dyno Klang Fire Protection Engineering Sdn Bhd Kin"nity Packaging & Automation Sdn Bhd Energy Depot Sdn Bhd Knowles IPC (M) Sdn Bhd GEC Integration Sdn Bhd Lida Plastics Recycling Sdn Bhd Genius Gifts & Souvenir Centre Lubrimax (M) Sdn Bhd Hasil Karya Sdn Bhd Mega Teamway Sdn Bhd Huat Siang Hardware Sdn Bhd Merriwell Food (Malaysia) Sdn Bhd IFCA Systems (Penang) Sdn Bhd Modu Automation Sdn Bhd IPlast40 Sdn Bhd Molex (Malaysia) Sdn Bhd ISQ Holdings Sdn Bhd MTL Engineering Sdn Bhd Kuala Lumpur Valve & Fitting (M) Sdn Bhd Nosco Asia Sdn Bhd Mpire Auto Sdn Bhd Optima Klasik Sdn Bhd My Land Training & Services Sdn Bhd Pacestar Industries (Melaka) Sdn Bhd Mytest Lab Sdn Bhd Perusahaan Leong Bee & Soo Bee Sdn Bhd N.U.R Power Sdn Bhd Ply Tec IBS System Mfg Sdn Bhd Nihon Kohden Malaysia Sdn Bhd PQE Power System Sdn Bhd Pekat Solar Sdn Bhd Season Malaysia Manufacturing Sdn Bhd Pentronic Engineering Sdn Bhd Shen Fei Enterprise Power Spectra Sdn Bhd Srimultec Engineering Sdn Bhd Shakeup Online Sdn Bhd Sun Marine Coating (M) Sdn Bhd SL Information Solutions Sdn Bhd Sun Water Sdn Bhd Sun Power Automation Sdn Bhd Suprema Marketing (M) Sdn Bhd Tetap Hangat Reliance Sdn Bhd THP Medical Sdn Bhd Triterra Metropolis Sdn Bhd TICA Climate Solutions Malaysia Sdn Bhd Zaquin Resources Sdn Bhd

BIA @ FMM Q JAN - MAR 2019 33

‡1HZ0HPEHUVLQGG 30 FMMFMMEA NEWS SPECIAL FEATURE

AF Manufacturing Services Sdn Bhd AF Manufacturing Services continues search for manufacturing excellence The ISO9001 certified company strives to raise the bar for itself

AF Manufacturing Services Sdn Bhd was a interview with Chong Song How, Director, AF FMM: Relate on some of the key milestones SILVER recipient for FMM Excellence Award Manufacturing Services Sdn Bhd (AF). and achievements of the company in the last (FMMEA) 2017 in the Manufacturer of the Year ǿǜĪǣĪÿƣƫܐ – SMI Category. FMM: It must have been a proud moment AF: With the continuous support of the for the company when it emerged as one of constantly working towards achieving our Malaysia Productivity Corporation (MPC), the winners of FMM’s prestigious Excellence goal in manufacturing excellence. We are FMM Excellence Award is considered as ǝÿƣģƫ܉ǝŊÿƸŊÿǜĪěĪĪŲƸŊĪƫŏŃŲŏǿĜÿŲƸ the industry’s crowning glory whereby gains in terms of recognition and status on manufacturing companies are assessed winning this award? by their peers and accorded recognition AF: Yes, we are indeed very proud to receive for excellence in Leadership, People this prestigious award from FMM. FMM: What has been the company’s Development, Marketing, Operations, approach to modernising machinery and the Innovation and Business Results. The FMM we have to thank them for working tirelessly workforce in the face of greater competition Excellence Award is also an EXCLUSIVE award in achieving this recognition. This award is in the marketplace? recognising manufacturing companies. AF: We upgraded our equipment to meet the Below we carry excerpts from our our company. high demand from sophisticated customers

34 BIA @ FMM Q JAN - MAR 2019

‡1HZV (YHQWVLQGG 30 and have introduced automation wherever shows and seminars to learn and upgrade their knowledge in the latest engineering innovations available in the market.

FMM: As in most large enterprises the welfare of the employee can be paramount to productivity how does the company ĪŲƫǀƣĪƸŊĪŏƣƫƸÿdzłƣĪŰÿŏŲŊÿƠƠǣÿŲģ motivated? AF: Our company holds annual dinners, birthday celebrations, incentive travel, and service awards.

FMM: In terms of business how has the company performed in the last few years? AF: Our company has constantly performed better each year.

FMM: Name some of the core values that are important to the company? AF Manufacturing Services Sdn Bhd (AF) Director, Chong Song How AF: important to us.

FMM: Name some of the challenges faced by the company in the marketplace today? AF: Some of the challenges we faced are the shortage of workers and increasing wage cost.

FMM: Outline the company’s aspirations and goals for the future? AF: Our company aspires to excel in this industry and our goal is to set a high standard for others to emulate.

FMM: As a member of FMM, tell us how has ǣżǀƣĜżŰƠÿŲǣěĪŲĪǿƸƸĪģłƣżŰšżŏŲŏŲŃFrrܐ AF: As a FMM member, we are able to participate in many meaningful and These have greatly enhanced our knowledge in following the trend in the manufacturing world. The interaction with Government agencies both locally and overseas in relation to product regulations and other matters has also given us a better understanding of the various issues at hand.

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‡1HZV (YHQWVLQGG 30 FMM NEWS

HEAD OFFICE O"cial Launching of FMM 50th Anniversary Co#ee Table Book, FMM Council Swearing-in Ceremony and Certi$cate Presentation to FMM Council Members and Advisory Council Members

Dato’ Soh Thian Lai, FMM President delivering his welcoming speech

FMM Council Members and FMM Advisory Council Members group photograph with YB Datuk Ignatius Darell Leiking, MITI YB Datuk Ignatius Darell Leiking, MITI Minister Minister in addressing the crowd

The FMM council members in reading the ‘Sworn-in Statement’ observed YB Datuk Ignatius Darell Leiking, MITI Minister launched the FMM by YB Datuk Ignatius Darell Leiking, MITI Minister 50th Anniversary CoGee Table Book with Tan Sri Dr Lim Wei Chai, FMM Immediate Past President (left) and Dato’ Soh Thian Lai, FMM President (right)

To commemorate FMM’s 50th year history, Leiking expressed his appreciation for members through monitoring the operating FMM launched the FMM 50th Anniversary FMM’s strong support and cooperation in environment and any upward pressure working together with MITI in supporting on costs of doing business to assist FMM the manufacturing sector. He called the members’ companies to stay competitive manufacturing industry to remain strong globally and working closely with the FMM Council Swearing-in Ceremony and fundamentally as it is the backbone of the Government on the upcoming 12th Malaysian economy. He also emphasised that Malaysia Plan (RMK12) and 4th Industrial Master Plan Members and Advisory Council Members was has to safeguard the commodity industry (IMP4) to drive the national economy forward held on January 10, 2019 at One World Hotel, in order to protect all stakeholders in the into higher value-added, high-technology Petaling Jaya. entire ecosystem, including smallholders and and knowledge-driven growth in the Industry manufacturers. 4.0 era. YB Datuk Ignatius Darell Leiking, Minister of Meanwhile, Dato’ Soh Thian Lai, FMM In his concluding remarks, Dato’ Soh International Trade and Industry. Members President, thanked the Government for reinforced FMM’s vision is making Malaysian of the press were also invited to witness the heeding FMM’s calls and taking up FMM’s industries globally competitive and realising launching and swearing-in ceremony. proposals. He stressed that FMM will FMM’s values of Transparency, Integrity and In the address, YB Datuk Ignatius Darell continue to represent the interest of the Accountability with No Corruption.

36 BIA @ FMM Q JAN - MAR 2019

‡1HZV (YHQWVLQGG 30 HEAD OFFICE Industry4WRD: %e National Policy on Industry 4.0 Shaping the Future of Industry

(L-R) Datuk Isham Ishak, MITI Secretary General, YB Datuk Ignatius Darell Leiking, MITI Minister, YB Datuk Ignatius Darell Leiking (left), YAB YAB Tun Dr Mahathir Mohamad, Prime Minister, YB Dr Ong Kian Ming, Deputy MITI Minister, Tun Dr Mahathir Mohamad and Dato’ Soh Dato’ Soh Thian Lai, FMM President and Datuk Seri Dr Ismail Haji Bakar, Chief Secretary to the Thian Lai launching the Industry4WRD Government of Malaysia at the launch of Industry4WRD, The National Policy on Industry 4.0

Prime Minister, YAB Tun Dr Mahathir manufacturing sector and its related services iv) To increase the number of high-skilled Mohamad launched the National Policy on by facilitating companies to embrace Industry workers in the manufacturing sector from Industry 4.0, known as Industry4WRD at the 4.0 in a systematic and comprehensive 18% to 35%. MITI Tower on October 31, 2018. manner, and be smarter and stronger driven The launching ceremony was organised by people, process and technology. “Guided by this policy, the Government in collaboration with the Federation “This policy envisions Malaysia as a will act as an enabler in the overall of Malaysian Manufacturers (FMM) strategic partner for smart manufacturing, digital transformation of companies in demonstrating the virtues of public-private primary destination for high-technology the manufacturing sector and related partnership. industries and total solution provider for services, particularly the small and medium The event was attended by more manufacturing sector and related services in enterprises (SMEs), through the strategic than 1,000 participants including Cabinet the region. enablers coined as F.I.R.S.T Ministers, Chief Ministers, Ambassadors, “Industry4WRD aims to pave the way i) Providing funding & outcome-based for enhanced productivity, job creation and incentives; academicians and members of the public. high-skilled talent pool in the manufacturing Among those present included YB sector, and ultimately contribute to the digital infrastructure; Datuk Ignatius Darell Leiking, Minister of economic prosperity and societal well-being. iii) Ensuring regulatory framework and International Trade and Industry, his deputy, Further, it would encourage development industry adoption; YB Dr Ong Kian Ming, Datuk Isham Ishak, of innovative capacity and capability of iv) Upskilling existing and ensuring future MITI Secretary General, Datuk Seri Dr Ismail manufacturing sector and related services to talents are produced; and Haji Bakar, Chief Secretary to the Government create Malaysia’s own technologies, products v) Providing access to smart technologies. of Malaysia and Dato’ Soh Thian Lai, FMM and services. President. “To support the national vision, four “Primary focus of Industry4WRD covers The Ministry of International Trade and catalytic sectors and high growth potential Industry (MITI) has led the development of ฀ Industry4WRD since mid-2017 together with manufacturing industry per person from Plan, namely electrical & electronics, several key ministries. RM106,647 by 30%; machinery & equipment, chemicals, MITI released a statement that mapped ii) To elevate the absolute contribution of the aerospace and medical devices. Particular out the policy direction, aims, activities and manufacturing sector to the economy from attention is also given to SMEs for them vision behind the push for higher technology RM254 billion to RM392 billion; to propel forward as they account for the and higher knowledge driven manufacturing iii) To strengthen our innovation capacity and bulk of manufacturing (98.5%) and a major and services. part of employment (42%). Industry 4.0 “Industry4WRD is Malaysia’s response Global Innovation Index ranking from 35 to will transform and scale up SMEs to remain to call for digital transformation of the top 30; and

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‡1HZV (YHQWVLQGG 30 FMM NEWS

HEAD OFFICE

disruptive technologies and innovation. Industrial Revolution. Agility to adapt to ii) Exhibition to showcase the latest Industry “The Government has also developed the inevitability of Industry 4.0 will drive 4.0 technologies and solutions; the Industry4WRD Readiness Assessment Malaysia’s industry forward and make iii) Advisory services on various Government Programme that will enable businesses to Malaysia an attractive prospect for high- incentives, facilitation and support assess where they are, what are the current technology, innovative and high value-added programmes; and gaps existing in their manufacturing line industries in years to come.” iv) Pocket talks on products, services and and how can they move into Industry 4.0 In conjunction with the launching through targeted intervention of experienced of the policy, a full-day event was and exhibitors. assessors. organised featuring the following A total of 22 exhibitors participated ‘With the introduction of Industry4WRD, ฀ to showcase their latest technologies and the Government believes that the industry i) Forum to gain insights on Industry 4.0 solutions related to Industry 4.0 such as will remain ahead and competitive in from leading speakers from industry and Internet-of-Things, augmented reality and facing the challenges brought by the Fourth academia; vision inspection.

4th FMM SME Conference 2018

(L-R) Dato’ Soh Thian Lai, FMM President, YB Thumbs-up from VIPs and participants at end of Press Conference after Town Hall with YB Datuk Seri Mohd Redzuan Md Yusof, Minister morning Town Hall session with YB Minister MED Minister (L-R) Rizal Nainy, Deputy CEO of Entrepreneur Development and Dato’ Dr Ir (I) SME Corporation Malaysia, Wan Suraya Andy Seo, FMM Vice President & Chairman, Wan Mohd Radzi, Secretary General MED, FMM SMI Committee during Town Hall Q&A YB MED Minister, FMM President and Dato’ Dr Ir Andy Seo

The 4th SME Conference which was held at development. Participants were also informed Inventing Future. the SME Corporation Malaysia headquarters on the technological change led by Industry Two companies, Globetronics Sdn Bhd, on November 12, 2018 with the objectives 4.0, social media applications and adaptation represented by Dato’ Heng Huck Lee, Group to spur SMEs to embrace change, invent the to policy of the new government. CEO and Munchy Food Industries Sdn Bhd, future and re-engineer their operations and Guest-of-Honour, YB Datuk Seri Mohd represented by Rodney Wong Kai Heng, CEO business strategies by learning and getting Redzuan Md Yusof, Minister of Entrepreneur shared their success stories from SMI to become inspiration from SMEs that have today Development shared his thoughts on 2019 global powerhouse and a market leader. become global leaders. National Budget Initiatives relevant to SMEs Meanwhile, the Town Hall Session in the It was also to prepare SMEs to address the and entrepreneurship during the Town Hall many challenges facing them. Session which was moderated by Dato’ Dr Ir Isham Ishak, Secretary General of Ministry Andy Seo, FMM Vice President & Chairman of International Trade and Industry on SMEs SMI Committee since 2015. It collaborated FMM SMI Committee. development in international trade and with SME Corporation Malaysia who has been It was followed with Panel Session on industry. It was moderated by Datuk Noraini partner since 2016. Re-engineering Malaysian SMEs, moderated Soltan, FMM Vice President & Chairman FMM The event provided a platform for by Ir A K Woo and among the presenters were Women in Business Committee. Rizal Nainy, Deputy CEO (I), SME Corporation The conference was attended by 158 with new Government responsible for SME participants.

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‡1HZV (YHQWVLQGG 30 HEAD OFFICE Seminar on Business Ethics and Integrity: Business Ethics a Foundation to Growth

The importance of business ethics and integrity in doing business was a key message in the seminar held at the Royale Chulan Damansara Hotel on November 8, 2018. Many topics were addressed including business value of ethics, integrity and governance, building an organisational culture of ethics and integrity, anti-trust and anti-competition laws, corporate liability provisions and compliance defence tools and data privacy in data analytics and integrity in accounting and tax practises. One of the key speakers was Dato’ P.

Ganason Periathamby, Deputy Director of Q&A session with Dr Muhammad Mohan, Secretary General, Transparency International Malaysia, Ir Dr Nehemiah Lee, Founder, Nehemiah Reinforced Soil Sdn Bhd, Yan Huey Miin, Chief Malaysia Anti-Corruption Academy (MACA) Financial O\cer, Infineon Technologies (Malaysia) Sdn Bhd, Inderjit Singh, Senior Executive Vice President of Listing Regulation, Bursa Malaysia and Sharifah Najwa Syed Abu Bakar, Senior Director Business Advisory & Support Division, SME Corporation Malaysia Corruption Compliance Centre (CACCC). Also present was Tan Sri Dr Lim Wee Chai, FMM Reinforced Soil Sdn Bhd; and Immediate Past President and Chairman of President of Listing Regulation, Bursa FMM Business Ethics Committee. Malaysia; The highlight was the dialogue session The event was attended by 128 on the topic -Business Value of Ethics, Director Business Advisory & Support participants and was co-organised by FMM, Integrity and Governance which involved the Division, SME Corporation Malaysia; International Chamber of Commerce (ICC) Malaysia and the ASEAN CSR Network.

FMM Business Best Practices Seminar on “Trade War: Insights for Exporters and Importers”

The seminar held at the Royale Chulan Damansara Hotel on December 6, 2018 was aimed at setting out business practices useful to members as they adapt their business to the challenges of the ongoing trade war between the US and China. The seminar attended by 125 participants could impact businesses in Malaysia; cross-border business transactions; exporters and importers during trade war; and

Dr Yeoh Oon Tean, FMM CEO, chairing the Q&A session participants, invited guests and speakers.

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HEAD OFFICE FMM Seminar on Going Global: Leveraging on ASEAN and Mega Free Trade Agreements (FTAs)

The seminar held on January 8, 2019 saw an attendance of 165 participants. Datuk Isham Ishak, Secretary General of Ministry of International Trade and Industry (MITI) delivered the keynote address and gave assurance that Malaysia would continue to be an open economy with business friendly environment and MITI would strive to work hard in making Malaysia the preferred Group photograph (4th from right) Hiroyuki Imizu with Datuk Isham Ishak, Secretary General of investment destination and among the most MITI, Dato Soh Thian Lai, FMM President and Dr Yeoh Oon Tean, FMM CEO globally competitive trading nations in the world. leverage on ASEAN Solutions for Investments, He further informed that the on-going force on December 30, 2018. Services and Trade (ASSIST) to address trade war between US and China may present Malaysia has yet to ratify the agreement an opportunity for Malaysia to be a more as it has a total of 19 legal amendments to be Single Window initiative on e-Form D ATIGA made with three already passed. The ASEAN- Participants were informed that the six Hong Kong Free Trade Agreement (AHKFTA) is expected to help save time and cost. Also of the eleven countries participating in the has been signed and the agreement will enter present was Hiroyuki Imizu, FMM Council Comprehensive and Progressive Agreement into force on June 1, 2019. Member and Chairman of FMM Export & Participants were also briefed on how to International Business Committee.

FMM delegates gathered for a group photograph upon arriving at the Changwon Exhibition Convention Center (CECO) Buyer from Malaysia attending the one-to-one business matching meeting FMM Business Delegation to Pintung International Expo Welding Korea 2018 A group of 32 buyers attended the trade fair held in Pintung, A 17-member delegation led by FMM Council Member, Ir A K Woo made Taiwan from october 26-19, 2018. cutting technology from October 15 to 18, 2018. Changwon is home to South Korea’s largest heavy machinery international buyers. industry complex, including ship-building, plant, railway equipment Over 600 one-to-one business matchings were made. The and automobile companies. buyers hailed from Malaysia, Thailand, Laos, USA, Hong Kong, Indonesia, Oman, UAE, Singapore, Qatar, Macau and China.

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‡1HZV (YHQWVLQGG 30 HEAD OFFICE Industry 4.0: Post-Budget 2019 Discourse

Participants from 133 companies gathered for the seminar Q&A Session with representatives from MOHR, MIDF, MDEC, and MESTECC

The event held at Menara MITI on November National Budget 2019. the facilities provided in the National Budget 23, 2018 was to provide manufacturers It was also aimed at helping Malaysian 2019.In addition it created a platform for with insights on Industrty4WRD as well as manufacturers, especially SMEs, to move manufacturers to network and learn from on Government initiatives provided in the towards Industry 4.0 by taking advantage of each other.

Participants having hands on experience working at the Model Factory while learning concepts of Industry 4.0 McKinsey Model Factory in a box

The workshop session which was held at provides the ideal platform to learn about are the ideal place for one to start gaining Wisma FMM from October 8-12, 2018 was Industry 4.0 concepts and build capabilities. It in-depth experience and build the capabilities co-organised by Malaysia Digital Economy features a host of digital modules that quickly that are required for a digital transformation. Corporation (MDEC) and McKinsey. A total of convey knowledge about topics including By immersing in a realistic, interactive 45 participants from 22 companies took part. yield, energy, throughput, predictive setting, the MFIB gives an essential hands- McKinsey’s Model Factory in a Box (MFIB) maintenance, robotics and many others. on experience with real digital applications, is a fully operational miniature factory that This proven model factory environments actual operations, and practical products.

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‡1HZV (YHQWVLQGG 30 FMM NEWS

KEDAH/PERLIS

300 participants including manufacturing sector workers, representatives of Government agencies and students of higher education institutions from Kulim Hi-Tech, Kedah participated in the FMM-KITA Safe Motorcycling Campaign 2018 program

The seminar was a collaboration between FMM and BOMBA on “Understanding The Latest BOMBA Requirements Regulations” FMM-KITA Safe Motorcycle held on November 15, 2018 Riding Campaign 2018 @ KULIM HI-TECH FMM-BOMBA Seminar on Road safety awareness is a collective responsibility that should be “Understanding the Latest shared between the private sector and the Government. BOMBA Requirements & Technologies (Kulim) Sdn Bhd on October 18, 2018. Regulations” The event was organised jointly by FMM Kedah-Perlis Branch and Fire safety awareness was the key message in the seminar held Kulim Industrial Tenant Association (KITA). at the Jerai Hotel in Sungei Petani, on November 15, 2018, which Some 300 participants, who were private sector employees and attracted 112 attendees drawn from 62 companies. students were briefed on the importance of safe driving on the road. The campaign which was held for the eighth time and is organised on present were Dato’ Dr Haminnuddin Haji Abd Hamid, FMM Kedah- high fatality rates on the road. Perlis Branch Chairman, Tuan Mohamad Amir Ahmad Tarmizi, Representing FMM was Tahiruddin Tun Hamdan, FMM Kedah- BOMBA Kedah-Chief, Building Safety Enforcement Branch and Perlis Branch Vice-Chairman. Also present were Lim Seng Meng, Norkatini Hakhim Jasmi, Bomba Kedah-Acting Head of Awareness and Public Safety Program. Manager, Road Safety Department (JKJR). The seminar provided information relating to BOMBA requirements and regulations that must be followed by the manufacturers, developers and all other related parties. The agency wanted all parties to understand how to use BOMBA facilities properly and to maintain high safety standards and practices. The seminar was conducted in collaboration with the Department of Fire & Rescue, Kedah.

45 golfers including CEOs and senior executives participated at the FMM Kedah/Perlis Networking Golf Tournament on October 27, 2018, at the Kulim Golf and Country Resort Corporate Insurance Talk – Know Your Rights & Hidden FMM Kedah/Perlis Golf Dangers Networking Tournament 2018 Knowing the full extent of insurance coverage and protection were The sport of golf has always been a chosen avenue for business some of the main points emphasised in a talk held at the Swiss Inn networking as was the case in the recent staging of the tournament at on December 5, 2018. 10 participants attended. the Kulim Golf and Country Resort on October 27, 2018. Helmed by Samuel Wong, Consultant, SW Risk Control FMM was led by FMM Kedah-Perlis Branch Vice Chairman Services Sdn Bhd, common errors found in most industrial policies Tahiruddin Hamdan. 45 golfers took part, drawn from local authorities, industries, corporate and business sectors. explained.

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‡1HZV (YHQWVLQGG 30 PENANG

Memorandum of Understanding of Collaboration Partnership group photograph with PERHEBAT, FMM and Associations/ Chambers/Companies Participants in rapt attention Memorandum of FMM Penang Workshop: Understanding Signing Going Forward Interpreting Ceremony between PERHEBAT Sales & Service Tax (SST) & and FMM Penang Branch Implementation Issues A Memorandum of Understanding of Collaboration Partnership The need to understand the new Sales and Service Tax (SST) and its was signed between PERHEBAT and FMM Penang Branch at the implementation was addressed in a workshop held at the Eastern & Iconic Hotel on November 23, 2018. Oriental Hotel on October 4, 2018. The MoU was signed to implement the “20K in 2” PERHEBAT- Wan Leng Whatt, former Deputy Director of Customs, GST Special Industry Anak-Anak Veteran Employment Referral Programme. Unit, Customs Headquarters, Putrajaya enlightened the 36 participants “20K in 2” means referring 20K factory blue-collar workers in on the various issues. two years. PERHEBAT was represented by its Chairman, Lt. Jen. Dato’ Sri Abdul Aziz Ibrahim. 250 people attended the signing ceremony.

First Follow-up Meeting after MoU Signing Ceremony between PERHEBAT and FMM Penang Branch A brainstorming session was held in a follow- up on the earlier MoU of the collaboration partnership between PERHEBAT and FMM 6, 2018. execute the “20K in 2” PERHEBAT-Industry Anak- Anak Veteran Employment Referral Programme. Representing PERHEBAT was their Deputy Director-General Major Rosdin Mohamad. 34 people attended.

Brainstorming Session amongst PERHEBAT, FMM and Associations/Chambers/Companies

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‡1HZV (YHQWVLQGG 30 FMM NEWS

PERAK

Group photograph with DYMM Paduka Seri Sultan Perak Darul Ridzuan, Sultan Nazrin Muizzuddin Shah (centre) at the FMM Perak 50th Annual Dinner. YB Howard Lee, State Exco for Youth, Sports and Human Development (7th from left) represented Menteri Besar Perak FMM Perak 50th Annual Dinner The dinner which was held at the Casuarina @Meru Hotel on October Member for Youth, Sports and Human Development also attended. The occasion gave members the opportunity to touch base with the presence of DYMM Paduka Seri Sultan Perak Darul Ridzuan, Sultan many key heads of government agencies. Representatives from 50 Nazrin Muizzuddin Shah. YB Howard Lee Chuan How, State Exco companies attended the auspicious function.

FMM Perak Study Visit to University Petronas Teknologi (UTP)

The study tour made to the university on October 11, 2018 was aimed at creating

Members listening to Dato’ Gan’s address on current state-level platform for FMM members to issues interact with the institution on certain issues and problem FMM Perak 50th Annual solving. General Meeting The delegation comprising of representatives from eight The AGM chaired by FMM Perak Branch Chairman, Dato’ Gan Tack companies was led by Edmund Wong Khin Kong, Chairman It was held to discuss state-level issue as well as to provide an of FMM Perak SMI Sub- avenue for members to network with the branch committee. No Welcoming remarks by Prof Ir Dr M Shahir Liew, UTP Deputy Vice Committee. elections were held. Representatives from 25 companies attended. Chancellor Research & Innovation

Dialogue Session with Customs on Issues Faced in Free Trade Zone Representatives from the Kinta and Jelapang Free Trade Zones were related issues. Held at Wisma Kastam on October 3, 2018 the session was helmed by Ahmad Fuad Shahaluddin, Assistant Director of Customs Perak.

Ahmad Fuad (middle) makes his welcome speech to representatives Representing FMM was Perak Branch Vice Chairman Tan Seow Heng. from 14 companies Some 14 companies sent representatives.

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‡1HZV (YHQWVLQGG 30 SELANGOR

Group photograph of FMM Selangor delegation with DOSH Selangor

Tournament in progress FMM Selangor Branch Industrial Safety, Health FMM Kuala Langat & Environment Working Badminton Tournament 2018 Committee Courtesy Call to The tournament was held for the second year running at TM sports DOSH Selangor Director Complex in Pandamaran, Klang on December 8, 2018 drawing a good turnout with 120 players from 12 teams. A 20-man delegation from FMM Selangor paid a visit to DOSH Selangor Amkor Technology Sdn Bhd emerged the winners with the on October 25, 2018. runners-up spot going to KYB-UMW Malaysia Sdn Bhd. Teams that It was aimed at fostering closer ties between the Branch’s Industrial Safety, Health & Environment Working Committee and Oleochemical (M) Sdn Bhd. DOSH Selangor Wong Soo Kan, Chairman of FMM Selangor Branch Industrial Safety, Health & Environment Working Committee led the group to meet up with Ir Ibrahim Md Dol, Director of DOSH Selangor.

Group picture of 10km run

Exchange of signed MOU between Dato’ Raja Aznil Raja Hisham for LUCT and Jacob Lee, Chairman FMM Selangor Branch Signing of Memorandum of

Understanding (MoU) between Jacob Lee, Chairman FMM Selangor Branch handing an appreciation Limkokwing University of gift to YB Dato’ Teng Chang Khim, Selangor State Exco Creative Technology (LUCT) FMM 50th Anniversary Run
and FMM Selangor Branch More than OMMM runners took part in the event at the Taman A 15-member delegation from FMM Selangor Branch witnessed the Botani Negara, Shah Alam on January 27, 2019. historic MoU signing ceremony held at the university on January Organised by FMM Selangor Branch, the event was open to 25, 2019. It set out the terms of the understanding between the two the public as a way of familiarising public with FMM and its role, parties, opening a channel for collaboration in various areas. besides promoting a healthy lifestyle and friendship among Present were Dato’ Raja Aznil Raja Hashim, Senior Vice President members. Gracing the event was YB Dato’ Teng Chang Khim, Selangor President, Brand, Creativity and Talent Development, Limkokwing State Executive Councillor for Investment, Industry & Commerce, University of Creative Technology, Jacob Lee, Chairman, FMM Selangor and Small & Medium Enterprise (SME). Also present was Dato’ Branch, Michelle Hah, Vice-Chairman, FMM Selangor Branch, Dato’ Soh Thian Lai, FMM President, Jacob Lee, Chairman FMM Andrew Goh, Vice President, FMM and Mag Ng, Vice-Chairman, FMM Selangor Branch and Mag Ng, Organising Chairman of FMM 50th Selangor Branch. Anniversary Run.

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‡1HZV (YHQWVLQGG 30 FMM NEWS

NEGERI SEMBILAN

Group photograph with Wan Ishak Soed (4th from right, 1st row) Brie$ng cum Networking The cake cutting ceremony of the FMM 50th Anniversary in conjunction with FMM Negeri Sembilan Branch Annual Dinner was Session with Tenaga National o\ciated by YB Dr Mohamad Rafie Ab Malek, Chairman, State Investment, Industrialisation, Entrepreneurship, Education & Human Capital Committee Berhad (TNB) Negeri Sembilan The session held at Royale Chulan Seremban on October 17, 2018 TNB NS General Manager Wan Ishak Soed helmed the session. Also present was Radzi Abdul Rashid, FMM NS Vice Chairman. 32 participants attended.

FMM Institute top contributors with YB Dr Mohamad Rafie Ab Malek (5th from right)

Group photograph of the participants of the seminar together with trainer, Prof Dr Shamsul Bahri FMM NS Seminar on Initial Winners of the FMM NS S.H.E Excellence Award 2018 with YB Dr Mohamad Rafie Ab Malek (5th from left) Ergonomics Risk Assessment Method for OSH Practitioners FMM NS Annual Dinner The seminar held at the Klana Resort in Seremban on October 23- The dinner was held at Royale Chulan Seremban on October 3, 2018 practitioners. Chairman, State Investment, Industrialisation, Entrepreneurship, Education & Human Capital Committee. 1. Understand the fundamentals of ergonomics assessment Also present were YB Dr Razali Ab Malik, State Government method corresponding to each ergonomics risk factors; Secretary of Negeri Sembilan, Dato’ Soh Thian Lai, FMM President and 2. Identify appropriate method for assessment of each Steven Aroki, FMM NS Chairman. corresponding ergonomics risk factors; The function which was attended by 410 people was 3. Conduct simple ergonomics assessment of workers for each successful on many fronts, namely it provided a timely opportunity work activities at workplace; to not only network among one another but also with senior 4. Carry out simple survey of ergonomics-related injuries or musculoskeletal disorders among employee At the same time it celebrated FMM’s 50th Anniversary besides Professor Dr Shamsul Bahri, Deputy Dean Post Graduate, presenting FMM NS S.H.E. Excellence Award and recognising the Industrial and Community Linkages Faculty of Medicine and Health Sciences UPM briefed the 11 participants present.

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‡1HZV (YHQWVLQGG 30 MELAKA Initial Ergonomics Risk Assessment (ERA) at the Workplace

The training was helmed by Dr Shamsul Bahri, Associate Professor and Lecturer, Industrial Hygiene / Occupational Ergonomics. It was held at Ibis Hotel in Melaka from October 30-31 and was aimed at enhancing knowledge and awareness into such areas. 20 The Chief Minister of Melaka, YAB Adly Zahari discussing with Datuk JeGery Ong on the issues concerning the manufacturing industry in participants attended. Melaka Dr Shamsul explaining on the importance of initial ergonomics assessment CEO Networking Hi-Tea with the Chief Minister of Melaka The high tea function graced by YAB Adly Zahari, Chief Minister of Melaka was held at the Ramada Plaza Hotel on October 26, 2018. Industry, Trade and Investment.

Yong Mei Sim explaining on the latest budget updates Budget 2019 and Latest Tax Updates The seminar was held at the Ramada Plaza Hotel on December 3, 2018 and was aimed at updating members on the Budget and the latest tax guidelines and information. The event was helmed by tax consultant Yong Mei Sim and was attended by 30 participants.

Basic Emergency Course and CPR

A refresher course on Goh Kin Siang explaining on the SST implication on FIZ companies by Red Crescent Society Sales and Service Tax 2018: It’s trainer Mohd Fakurol Impact on PCA, LMW and FIZ Mustapha for members The seminar was meant to update member companies on the SST and how it applies in these cases. December 8, 2018.

It was explained by freelance trainer Goh Kin Siang and was held at Mohd Fakurol demonstrating the the Double Tree Hilton on November 14, 2018. 41 participants attended. correct method to tie the hand sling

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‡1HZV (YHQWVLQGG 30 FMM NEWS

JOHOR

Group photograph of FMM Johor delegation

Group photograph with the players and winners Industrial Transformation FMM Johor 2018 Bowling Asia Paci$c 2018 Tournament A 40-strong group from FMM Johor Branch visited the Singapore A bowling tournament staged at the Lite Superbowl, Pelangi Leisure EXPO held in Singapore on October 16, 2018. Mall on December 15, 2018 which attracted 145 participants from 29 The group which was led by Branch Chairman Capt (R) teams. The aim was to promote networking and a sense of sportsmanship innovative ready-to-market products and solutions associated with Industrial Automation, Additive Manufacturing, Digital Factory present together with Eiap Eng Khoon, Vice Chairman, Saw Seong and Smart Logistics Ho, Vice Chairman and Shamsul Rizal Shamsudin, Chairman of the Organising Committee.

Tuan Mohd Shukor Fadzil of BOMBA Johor delivering his presentations to the participants FMM group photograph with Monsanto Malaysia Sdn Bhd and HSE committee members FMM Seminar on Blood Donation Campaign at Understanding the BOMBA AEON Permas Jaya Requirements & Regulations A blood donation drive organised by Monsanto Malaysia Sdn Bhd for Industries and Regency Specialist Hospital on October 20, 2018 succeeded in The seminar was held at Doubletree Hotel in Johor Bahru on attracting 150 donors. November 11, 2018 drawing 55 participants. The speakers were Razali AW Mat Salleh, Fire Safety Unit achieve a minimum collection of 60 bags from blood donors. Present (BOMBA Johor) and Mohd Shukor Fadzil, Fire & Rescue Operation Unit (BOMBA Johor) who advised the audience on BOMBA requirements and regulations.

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‡1HZV (YHQWVLQGG 30 EASTERN

Solid Waste and Public Cleansing Management (Scheme for Commercial, Industrial and Institutional Solid Waste) Regulations 2018 The talk which was held at SW Corp, Kuantan, Pahang on November 14, 2018 was aimed at updating members on solid waste management regulations. Some 20 members attended and the session was addressed by Corp (Bahagian Sisa Industri, Komersial Dan Institusi Ibu Pejabat Corp, (Jabatan Pengurusan Sisa Pepejal Negara Putrajaya). Faisal Ari\n presenting his paper at the talk

CSR Programme – Visit to Children’s Home A visit was made to Pertubuhan Kebajikan Baitul Husna on December 1, 2018. 17 members joined the visit, led by Eastern Branch Chairman Ir Kua Jit How. Group photograph of the children at the home with the FMM Eastern Branch Committee Members

Visit to New Deep Water Terminal at Kuantan Port Consortium A visit was undertaken to familiarise members with new Kuantan Port terminal on November 20, 2018. The group of 15 was led by Eastern Branch chairman Ir Kua Jit How. Also in attendance was Selvarajah Nallapan, General Manager (Legal & Group photograph of FMM members at the terminal Administration).

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‡1HZV (YHQWVLQGG 30 FMM NEWS

SABAH

Courtesy Visit to Winabumi Sdn Bhd A visit was arranged to Winabumi on October 17, 2018 to foster ties and to understand issues faced by the company. FMM Sabah RO was led by its Chairman, James Ha and Vice Chairman, Datin Hajah Rozilah Abdullah. Getting to know member. FMM Sabah RO was represented by its Chairman, James Ha Haw Yew (middle right) and Winabumi Sdn Bhd by its Director, Richard Lee Fuh Min (middle left)

MATRADE Sabah new Director, Nor Azian Romlan (3rd left) made a courtesy visit to FMM Sabah RO. She was received by James Ha, Chairman FMM Sabah RO (2nd right) and Datin Hjh Rozilah James Ha, FMM SRO Chairman (on the left) talking to YB Dr Ong Kian Abdullah, FMM Sabah RO Vice Chairman (right) Ming (on the right), Deputy Minister of MITI at FMM booth during the FMM-MIDA Industrial Park & Investment Facilitation Forum Courtesy Visit of MATRADE FMM–MIDA Industrial Park Sabah New Director to FMM Investment Facilitation Forum SRO 2018 Closer ties was the main purpose of the visit by MATRADE Sabah’s The fourth series of Industrial Park Forum, a joint event organised by newly appointed Director Nor Azian Romlan on December 31, the Malaysian Investment Development Authority (MIDA) was held 2018. James Ha, Chairman FMM Sabah RO shared with the Director at the JW Marriot Hotel in Kota Kinabalu on December 17, 2018. The on FMM’s services for Sabah members. forum aimed to provide a strategic meeting place for industrial park developers, prospective local and foreign manufacturers/investors, and local authorities to establish business linkages and to encourage the Warehouse and Store Process development of industrial clusters, particularly for SMEs, and eco- Management industrial parks. Gracing the event was YB Dr Ong Kian Ming, Deputy Minister of to instil a deeper understanding of warehouse management and International Trade and Industry. 300 participants attended the forum. set the tone for improvement and best practices. The event was helmed by freelance speaker Siti Zaleha Ismail. Nine participants attended.

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‡1HZV (YHQWVLQGG 30 SARAWAK

FMM Sarawak Run 1.0 The run was a sporting way to create awareness about FMM besides celebrating its 50th anniversary. Held at the Majlis Bandaraya Kuching Selatan (MBKS), Kuching on October 28, 2018 the event was graced by the presence of FMM president Dato’ Soh Thian Lai. Also present was FMM Sarawak Branch Chairman, Haji Othman Abdul Rani. A collection of RM1,226 was donated to the Kuching Life Care Society as part of FMM Dato’ Soh Thian Lai, FMM President (5th left) posing with Haji Othman Abdul Rani, FMM Sarawak Branch Chairman (5th right) and other committee members

Consul General of the Republic of Indonesia An 11-strong delegation from FMM Sarawak visited the new Consul General of the Republic of Indonesia, HE Bapak Yonny Tri Prayitno on January 16, 2019 in Kuching. Desmond Cheng (6th from right) representing FMM Sarawak, presenting a momento to HE Bapak Yonny Tri Prayitno

FMM Sarawak Courtesy Call To MITI Sarawak and Its Agencies January 18, 2019 was to cement strong ties with its allied agencies as well as to highlight certain issues facing members. The group was led by Sarawak Branch Chairman Haji Othman Abdul Rani who met with Haji Othman Abdul Rani (seated 3rd left) leading the FMM Sarawak Courtesy Call delegation to MITI director and its agencies

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‡1HZV (YHQWVLQGG 30 DID YOU KNOW? FUN FACTS TO KNOW The world of manufacturing is a colossal one with many countries at di5erent stages of the industrial revolution. Most of the time we tend to look at the big picture but sometimes, it doesn’t hurt to know how the small dots lead to the big dots.

FACT The impact of the manufacturing FACT In almost three decades the FACT The collective strength of sector on job creation cannot Chinese dragon is virtually American companies in the world’s largest economy is a ڙ܍ ژ܍ be under-estimated. Quite a ڗ܍ number of the new jobs created in the United Chinese manufacturing used to be a well-known fact. However not everyone States originates from three sectors, namely minnow in the early days only producing knows how vast their resources are. Based on transportation equipment, machinery, and about 3% of global output by value in 1990. the assumption that the top 500 companies fabricated metal products. All said and done, However, fuelled by exponential growth formed a single entity their total revenue reports indicate that 76% of all new U.S. in its industries it now accounts for around would equate it with the third-largest manufacturing jobs are created in these three 25%. The world is a lot cooler due to Chinese economy in the world. sectors. air-conditioners (80%). More people own It is a staggering fact and indicates mobile phones as 70% is produced there. how manufacturers can generate billions And there’s a great variety of shoes to choose of income and contribute greatly to robust from because 60% is made in China. A fact economies. that should not be forgotten is that many of the country’s supply chains run in to South- FACT There’s no doubt that industries East Asia, a long assembly line that produces are huge employers as .demonstrated in Germany ښ܍ .almost half of the world’s goods Studies show that around 6.2 million workers were employed in 2017 in more than 45, 000 than the entire population of Denmark.

FACT The German industrial complex of research and development and ڛ܍ has invested heavily in these areas. According in 2016. The investment from other sectors were markedly lower at 9.5 billion euros.

http://monroeengineering.com/blog/4-fun-facts- about-us-manufacturing www.deutschland.de/en/topic/business/ germanys-industry-the-most-important-facts- ÿŲģܯǾŃǀƣĪƫ https://www.economist.com/leaders/2015/03/12/ made-in-china

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