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Business in Action @ Fmm OCT - DEC 2020 www.fmm.org.my KDN NO.PP 16730/08/2012 (030376) BUSINESS IN ACTION @ FMM Buy Made-in-Malaysia MANUFACTURING MALAYSIAN BRANDS FOR THE WORLD SPURRING THE GROWTH OF THE ECONOMY THROUGH COMPETITIVE, INNOVATIVE & QUALITY MALAYSIAN BRANDS 04. BIA@FMM (Oct - Dec 2020).indd 1 24/02/2021 10:16 PM 04. BIA@FMM (Oct - Dec 2020).indd 2 24/02/2021 10:16 PM OCT - DEC 2020 www.fmm.org.my KDN NO.PP 16730/08/2012 (030376) BUSINESS IN ACTION @ FMM EDITORIAL ON THE COVER Advisor Follow us on Chief Executive Officer Dr Yeoh Oon Tean www.fmm.org.my www.fb.com/fmm.org.my Editorial Team officialfmm Senior Executive Natalie Ng Advertising Enquiries Natalie Ng Editor [email protected] Andrea Mathew +603-6286 7324 Art Director and Senior Published by Graphic Designer Federation of Malaysian MANUFACTURING MALAYSIAN Mohd Khairul Annuar Manufacturers (7907-X) BRANDS FOR THE WORLD Wisma FMM Spurring the growth of the economy Writer No 3, Persiaran Dagang, PJU 9 through competitive, innovative & Rayyan Rafidi Bandar Sri Damansara quality Malaysian brands. 52200 Kuala Lumpur Contributors +603-62867200 Jyeshta Mahendran, Ir Dr Majahar +603-62741266/7288 Abd Rahman, Siti Mariam Samat, Muhammad Shah Ab Rahim Printed by Percetakan Zanders Sdn Bhd Editorial Enquiries No 16, Jalan BK1/11 [email protected] Bandar Kinrara 47180 Puchong Selangor Darul Ehsan FMM Branches Kedah/Perlis, Penang, Perak, Selangor and Kuala Lumpur, Negeri Sembilan, Melaka, Johor, Eastern (Pahang, Kelantan & Terengganu), Sarawak and Sabah All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and recording without the written permission of the publisher. Opinions expressed or implied in Business In Action @ FMM are solely those of the writer/s and are not necessarily endorsed by the publisher. 04. BIA@FMM (Oct - Dec 2020).indd 1 24/02/2021 10:16 PM BUSINESS IN ACTION @ FMM 2 OCT - DEC 2020 CONTENTS 10 COVER STORY LOVE MALAYSIA, BUY MADE-IN- MALAYSIA Stimulating domestic & global consumption of Made-in-Malaysia through Buy Made-in-Malaysia Public-Private Partnership. 05 08 AT A GLANCE GLOBAL TRENDS 2021OUTLOOK: HOPING PURPOSE, IN A VACCINE-POWERED AGILITY AND TURNAROUND HUMAN EXPERIENCE The International Monetary TO SHAPE THE Fund (IMF) in its January 2021 FUTURE OF report, estimated the global BRANDING growth contraction for 2020 to sit at -3.5 percent. COVID-19 has caused consumers to experience purchasing, 06 consumption and relationships LOCAL UPDATES in ways never before, and this THE INDUSTRY NEWS has changed their YOU NEED TO KNOW expectations of brands. A compilation of key headlines as the industry recovers from the COVID-19 crisis. 04. BIA@FMM (Oct - Dec 2020).indd 2 24/02/2021 10:16 PM BUSINESS IN ACTION @ FMM OCT - DEC 2020 3 14 22 BRANDING TRADE STAYING INNOVATIVE WITH THE USE OF IP ESTABLISHMENT OF ASEAN MANUFACTURING NETWORK (AMN) With the competitive nature of manufacturing, today’s latest technology would need to evolve to tomorrow’s future The COVID-19 pandemic served as a wake-up call on the technology, therefore remaining innovative is vital. need for greater integration within ASEAN. It forced countries within the region to look at near-shore options to shorten supply chains and increase proximity to customers. ASEAN as a competitive economic grouping should take advantage of this to distribute production nodes according to cost, skill and competitiveness across ASEAN. Vietnam - Vietnam Chamber of Commerce and Industry (VCCI) Myanmar - Myanmar Industries Association (MIA) Laos – Lao National Chamber of Commerce and Industry (LNCCI) Thailand - Federation of Thai Industries (FTI) Philippines - Philippine Chamber Cambodia - Cambodia of Commerce and Industry (PCCI) Chamber of Commerce (CCC) Malaysia - Federation of Brunei - National Chamber of Commerce Malaysian Manufacturers and Industry Brunei Darussalam (NCCIBD) (FMM) Indonesia – Indonesian Chamber of Commerce and Industry (KADIN) Singapore - Singapore Manufacturing Federation (SMF) 24 19 HEALTH & SAFETY SUSTAINABILITY BUILD YOUR BRAND ON SAFETY AND HEALTH CERTIFIED GREEN Based on official statistics released by the Department of Occupational Safety and Health (DOSH) in 2019, there are As environmental sustainability becomes more important 40,811 cases of occupational accidents requiring more than in the minds of consumers, manufacturers all over the four days of sick leave, nationwide. Of these, 578 were fatal world including Malaysia are seeing the need to produce accidents. During the same period, DOSH received 9,860 environmentally responsible products. reports of occupational disease cases involving workers. 04. BIA@FMM (Oct - Dec 2020).indd 3 24/02/2021 10:16 PM BUSINESS IN ACTION @ FMM 4 PRESIDENT’S MESSAGE OCT - DEC 2020 CHOOSE BRAND ‘MALAYSIA’ alaysia caught the Perhaps the call to ‘stay home’ could fight the good fight in advancing the world’s attention when we also be a call to keep our money within name of Made-in-Malaysia. FMM has conquered the COVID-19 our borders. Let our dollars stay in our over the years worked hard to boost pandemic after the first home, Malaysia, because spending on demand for local goods in Government national Movement Control local products and services will increase Procurement (GP) and the domestic MOrder was enforced. Our Health the multiplier effect on the economy, market. Though the road ahead is Director-General and the Government create job opportunities and subsequently long and weary, FMM firmly believes won the hearts of Malaysians and boosts the people’s income. that our collaborative efforts with the beyond. Government and businesses will bear The ‘Buy Malaysia’ campaign was fruit in helping rejuvenate the local However after a few missteps, introduced as part of the PENJANA economy. Malaysia is seeing a next wave of economic recovery plan, intended to the pandemic hit us. This has sent increase the visibility of Malaysian Malaysia will rise and come out tremors across the business sectors as products in the eyes of the ‘rakyat’. stronger from this crisis. many worry how they can continue to Though a large portion of Government’s sustain if new and stricter restrictions funding in PENJANA and Budget are enforced in order to curb the rising 2021 is aimed at stimulating domestic COVID-19 cases. consumption of local products and services, everyday Malaysians and the As we think of what it means to ‘stay Government continue to view foreign Sincerely, home’, the term spurred me to look to products as a better option. my fellow Malaysians for inspiration in Tan Sri Dato’ Soh Thian Lai overcoming this health and economic However we in the manufacturing President, crisis. sector believe there is reason for us to Federation of Malaysian Manufacturers 04. BIA@FMM (Oct - Dec 2020).indd 4 24/02/2021 10:16 PM BUSINESS IN ACTION @ FMM OCT - DEC 2020 AT A GLANCE 5 2021 OUTLOOK: HOPING IN A VACCINE- POWERED TURNAROUND he International programme, continued continues to be cautious of uncertainties surrounding Monetary Fund (IMF) improvements in exports and the uncertainty surrounding the Brexit outcomes and in its January 2021 an upward momentum in the global economic outlook, widespread geopolitical report, estimated consumption and investment. which remains very high. tensions. The ministry also the global growth Efforts for recovery could be pointed to the continued low Tcontraction for 2020 to sit As the world moves hampered by the re-ignited oil prices and deepening at -3.5 percent, 0.9 percent into a recovery phase, the trade tensions between the climate crisis which may also higher than projected in the Malaysian Finance Ministry United States and China, derail the recovery. previous forecast (reflecting stronger-than-expected momentum in the second half Figure 1. Divergent Recoveries: WEO Forecast for Advanced of 2020). Economies and Emerging Market and Developing Economies Although recent vaccine (Index, 2019:Q4 = 100) approvals have raised hopes of a turnaround in the China (Jan. 2021 WEO Update) China (Jan. 2020 WEO Update) pandemic later this year, new AEs (Jan. 2021 WEO Update) AEs (Jan. 2020 WEO Update) waves and variants of the EMDEs excluding China (Jan. 2021 EMDEs excluding China (Jan. 2020 virus pose concerns for the WEO Update) WEO Update) outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021. 120 The strength of the recovery is projected to 115 vary significantly across countries, depending on access to medical 110 interventions, effectiveness of policy support, exposure to cross-country spillovers, 105 and structural characteristics entering the crisis (Figure 1). 100 GDP growth for the ASEAN-5 on the other hand is projected at 5.2%, 95 aided by robust domestic consumption, higher investment and a favourable 90 trade environment. The baseline projection assumes that social distancing will 85 continue into 2021 but gradually eases over time. Locally, the economy is 2019: 20: 20: 21: 21: 22: 22: forecasted to grow by 6.7% Q4 02 04 02 04 02 04 this year, after contracting by 5.8% in 2020 as reported by the World Bank. This is Source: IMF staff estimates. attributed to the prospect Note: AEs - advanced economies; EMDEs = emerging market and developing of an effective vaccination economies; WEO = World Economic Outlook. 04. BIA@FMM (Oct - Dec 2020).indd 5 24/02/2021 10:17 PM BUSINESS IN ACTION @ FMM 6 LOCAL UPDATES OCT - DEC 2020 THE INDUSTRY NEWS YOU NEED TO KNOW Sarawak eyes increasing South Korean investment PUTRAJAYA: South Korean investors have expressed keen interest in setting up factories in Sarawak, according to Prime Minister’s Special Envoy to East Asia Dato’ Sri Richard Riot Jaem. In a meeting with the South Korean business community, Riot received proposals to set up plants for aluminium pellet production, nitrile rubber glove production, ammonia processing, and medical and testing kit production.
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