business IN action @ FMM OCT – DEC 2019 VOL 4/2019 www.fmm.org.my KDN NO.PP 16730/08/2012 (030376) BUDGET 2020: PRUDENT & ALL-INCLUSIVE Government tables an expansionary budget in the face of uncertain times

WILL THERE BE A GLOBAL RECESSION IN 2020? Bloomberg Economics discusses both sides of the issue Pg 10 A joyous celebration FMM celebrates its 51st Annual Dinner Pg 14

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Contents october – december 2019 Volume 4/2019

PRESIDENT’S 3 MESSAGE PAGE Cover Story: 4 Prudent and 4 all-inclusive Government tables an expansionary budget in the face of uncertain times

Business 10 Feature: Will there be a global recession in 2020? Bloomberg Economics discusses both sides of the issue

Special 14 Feature: A joyous celebration FMM’s 51st Annual Dinner was graced by Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail, the Deputy Prime Minister of

Tech Talk: 16 Using Health & blockchain for 20 Safety: How PAGE trade to maintain The World Bank is exploring a clean and the potential use of the orderly factory 48 technology beyond digital environment currency Safe and litter-free working spaces help workers avoid The accidents and injury 18 Communicator: Digital marketing New – a proven way 24 Members to secure new customers FMM A strategy combining 28 Excellence website, content and SEO Award 2019: Kerry techniques can reap good Ingredients (M) Sdn dividends Bhd

FMM PAGE 30 Excellence Award 2019: ON Semiconductor Sdn 14 Bhd FMM 33 News 48 Gastronomy did you know? 52 Fun facts to know

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EDITORIAL

Advisor Chief Executive Officer Dr. Yeoh Oon Tean

Editorial Team Chief Operating Officer Nor Shafaleena Binti Shaik Abdul Shukkor

Senior Executive – Membership Division Natalie Ng

Editor Roger Rodrigo

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fair upwards and expanding the overall quantum allocated for export promotion activities for SMEs. We hope the Government can provide more clarity on the increased threshold from RM500,000 to RM600,000 for the reduced 17% tax rate of SMEs on the eligibility condition of annual sales of not more than RM50 million. We are grateful to the Government for responding to our call to extend the time bar for the Accelerated Capital Allowance on Automation until 2023 which would have otherwise expired this year. The allocation of RM524 million to intensify the public sector’s research and development efforts will certainly benefit the industry and innovation activities, seen as key to high-tech and high-value added economy. The Federation of Malaysian Manufacturers (FMM) commends the As an export-reliant economy our ports must remain highly Government for unveiling Budget 2020 which can be described as a accessible. On this note, I am pleased to observe the initiative to people’s budget. improve last-mile connectivity through the allocation of RM50 million It was quite clear that the Government is keen to address the for the repair and maintenance of roads leading to Port Klang. problems and challenges that cut across all sectors of society. In this regard, the in-depth feasibility study on the development of As you may know, we are not in the best of times with the Pulau Carey, the Serendah-Port Klang Rail Bypass for cargo shipments ongoing trade war between the United States and China and other and the Klang Logistics Corridor is most welcomed. geopolitical tensions. Malaysia as an open economy is affected by these It is my earnest hope that the Government must come up with uncertainties. Despite the current economic constraints, the budget clear plans to convince stakeholders on the ability of Port Klang to be has focused on expanding the economy, attracting more investments, competitive and efficient. growing foreign markets and focusing on driving the economy into the We also welcome the allocation of RM4.85 billion under Malaysia digital era. Road Registration Information System (MARRIS) fund to all state We have noted that sufficient initiatives and incentives have been Governments to maintain roads. provided towards the development of human capital, SMEs, export On this matter, I hope the relaxing of existing guidelines on usage promotion, enhancement of innovation activities and the overall ease of funds to repair and upgrade works is also extended to cover all roads, of doing business which are essential to restructure the economy to be not only registered state roads as is the current practice. more progressive, knowledge-based and high-valued. All road repairs, including those in industrial estates, should The move to strengthen the local workforce must be lauded, as be able to benefit from the MARRIS funds for maintenance and with an allocation of RM6.5 billion, the aim is to create 350,000 jobs for upgrading. through increased participation of unemployed graduates Before I conclude, I like to urge our member companies especially and women and towards reducing dependence on foreign workers. those in the Electrical and Electronics (E&E) industry to take heed of As seen in previous issues, Technical, Vocational, Education and the Government’s drive to create more high value-added industries Training (TVET), plays a crucial role in the further development of our through transformation to 5G digital economy and Industry 4.0. The industries. incentive includes income tax exemption for up to 10 years. Thus, the increased budget allocation for TVET to RM5.9 billion, On our part, we will continue to engage in dialogue with the the RM100 incentive for TVET apprentices and the extension of the government to fine tune and clarify certain parts of Budget 2020 so double deduction for participation in the Skim Latihan Dual Nasional that our members can partake fully from the benefits and incentives and Structured Internship Programme under TalentCorp are also offered. welcomed. Thank you Another positive development is the raising of the ceiling on the Market Development Grant (MDG), revising the allocation per export Tan Sri Dato’ Soh Thian Lai

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Finance Minister, YB Tuan said Budget 2020 not only sought to expand the economy but also to look into the welfare of various affected groups and institutions Budget 2020: Prudent and all-inclusive Government tables an expansionary budget in the face of uncertain times

It is clear that when the Government unveiled Generally, he said Budget 2020 received on job creation and SME linkages as well as Budget 2020 in Parliament on October positive response from various sectors. enhanced monitoring and evaluation, are an 11, 2019, it not only wanted to expand the The World Bank described the budget as important step in the right direction,” Richard economy but also to cater to the needs of a prudent balance between the competing Record, the World Bank’s lead economist for society at large and various sectors. needs for Malaysia to preserve fiscal Malaysia said. Finance Minister, YB Tuan Lim Guan sustainability, while also responding to a “The focus seen on connectivity and Eng, who tabled the budget said a day after, slowing economic environment. logistics, as well as structural reforms that it was not only aimed at improving “We welcome the emphasis on measures to improve trade facilitation and new the country’s economy but also people’s to boost jobs and private investment, investment flows will likely yield positive welfare like providing job opportunities, particularly by small and medium enterprises returns in an uncertain trade environment,” ensuring women’s wellbeing and placing (SMEs) through increased digital adoption. he added. more emphasis on education and religious Proposals to reform Malaysia’s investment FMM also hailed Budget 2020 for institutions. incentives framework, focusing particularly addressing the problems and challenges that

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cover story

cut across all sectors of society. raising the ceiling of the Market Development seen as key to high-tech and high-value added FMM said in a statement that despite Grant (MDG), revising the allocation per economy. the current economic constraints, the budget export fair upwards and expanding the overall “FMM applauds the initiative to has focused on expanding the economy, quantum allocated for export promotion improve last-mile connectivity through the attracting more investments, growing foreign activities for SMEs. allocation of RM50 million for the repair and markets and focusing on driving the economy It urged more clarity on the increased maintenance of roads leading to Port Klang. into the digital era. threshold from RM500,000 to RM600,000 “The in-depth feasibility study on the “Sufficient initiatives and incentives have for the reduced 17% tax rate of SMEs on the development of Pulau Carey, the Serendah- been provided towards the development eligibility condition of annual sales of not Port Klang Rail Bypass for cargo shipments of human capital, SMEs, export promotion, more than RM50 million. and the Klang Logistics Corridor is most enhancement of innovation welcomed, and (the Government) activities and the overall ease of must come with clear plans doing business which are essential to convince stakeholders on to restructuring the economy to the ability of Port Klang to be be more progressive, knowledge- competitive and efficient,” he based and high-valued.” said. FMM praised the On the allocation of RM4.85 Government’s noteworthy efforts billion under Malaysia Road to strengthen the local workforce Registration Information System with an allocation of RM6.5 (MARRIS) fund to all state billion to create 350,000 jobs for Governments to maintain roads, Malaysian through increased Soh said FMM hopes the relaxing participation of unemployed graduates and FMM appreciated the Government’s of existing guidelines on usage of funds to women and towards reducing dependence on response for taking heed of its call to extend repair and upgrade works is also extended to foreign workers. the time bar for the Accelerated Capital cover all roads, not only registered state roads “The increased budget allocation for Allowance on Automation until 2023. as is the current practice. TVET (Technical, Vocational Educational Earlier, the body called on the “All road repairs, including those in and Training) to RM5.9 billion, the RM100 Government to address issues affecting SMEs industrial estates, should be able to benefit incentive for TVET apprentices and the in the budget. FMM President, Tan Sri Dato’ from the MARRIS funds for maintenance and extension of the double deduction for Soh Thian Lai said then that these included upgrading,” he said. participation in the Skim Latihan Dual removing the time bar for reinvestment Given the financial constraints, Budget Nasional and Structured Internship allowance that expires in 2019. 2020 has been greeted warmly by most Programme under TalentCorp are also Soh said the allocation of RM524 million quarters as a prudent and comprehensive welcomed.” to intensify the public sector’s R&D will enough financial spending plan for It also applauded the Government on benefit the industry and innovation activities, Malaysians in 2020.

FMM said in a statement that despite the current economic constraints, the budget has focused on expanding the economy, attracting more investments, growing foreign markets and focusing on driving the

FMM President, Tan Sri Dato’ Soh Thian Lai urged further clarity from the government on the economy into the eligibility clause for SMEs regarding the reduced 17% tax rate digital era.

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004,006-008•CoverStory.indd 6 12/4/19 10:57 AM HIGHLIGHTS OF BUDGET 2020 PROPOSALS ⚫ The Government was successful in billion, Government will lower threshold ⚫ GST will not be reintroduced. reducing country’s overall debt and on high rise property prices in urban areas ⚫ New personal income band for taxable liabilities ratio to GDP from 79.3% in 2017 for foreign ownership from RM1 million to income in excess of RM2 million to be to 75.4% in 2018. However, the figure is RM600,000 in 2020. taxed at 30% from 28%. expected to rise to 77.1% as at end June ⚫ Government and financial institution to ⚫ Increase in tax relief to RM6,000 for 2019. introduce Rent-To-Own (RTO) financing medical expenses including fertility ⚫ As at end September 2019, the scheme. Up to RM10 billion will be treatment. Government repaid GST refunds provided by the financial institutions. This ⚫ Go-ahead for Bandar Malaysia Project amounting to RM15.9 billion to more than RTO scheme is for purchase of first home which involves 486 acres at Sungai 78,000 companies. up to RM500,000 property price. Besi after negotiating better terms for ⚫ Income tax refunds amounting to RM13.6 ⚫ Government allocates RM100 million to Government. billion have been returned to 448,000 Penang for the development of a cable car ⚫ 10-year tax exemption for electronics companies and 184,000 taxpayers. up Penang Hill. sector than shifts towards n5G and ⚫ As for RPGT, for the disposal of properties ⚫ Digital Service Tax will come into effect Industry 4.0. more than five years, the base year of January 1, 2020. This is expected to affect ⚫ Bandar Malaysia project to include a acquisition has been revised from January services like Netflix and Spotify, digital People’s Park, additional 5,000 affordable 1, 2000 to January 2003. advertising offered by Google, and also homes and greater Bumiputera ⚫ To reduce supply overhang of digital software and games distribution participation. Proceeds from the project condominiums, apartments of RM8.3 companies such as Steam. will be valued and announced in due course to reduce 1MDB debts. ⚫ Prime Minister’s Vision 2020 of Malaysia becoming a high-income nation was derailed due to the shameless turning of Malaysia into a global kleptocracy and involved a total of over RM150 billion. ⚫ The Government is committed to paying off all borrowings and obligations inherited from the previous regime. For 2019, the Government is paying RM2.4 billion to service the debt interest in 2019 and RM2.7 billion in 2020 for 1MDB and SRC International. Allocations were made to promote more women to work

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The German Malaysian Institute is a well-known centre for TVET. The government increased the allocation for TVET in 2020

⚫ Companies implementing solar leasing FMM praised the ⚫ To get Malaysians to become used activities can get income tax exemption of to making digital payments through 70% for up to 10 years. government’s e-wallets, the Government will credit ⚫ Government will extend the Green noteworthy efforts RM30 into the e-wallet of every Malaysian Investment Tax Allowance (GITA), Green to strengthen the who are 18 and above and earn less than Income Tax Exemption (GITE) to 2030. local workforce RM100,000 a year. ⚫ Government has agreed to move from with an allocation ⚫ The RM30 will be credited on January 1, mechanism-based Power Purchase 2020 and will be valid for two months. Agreement (PPA) to an open market of RM6.5 billion Khazanah Nasional is given RM450 million system. Renewable energy players will to create 350,000 to achieve this. be able to compete directly in the retail jobs for Malaysian ⚫ To support Bumiputera entrepreneurship market through increased development, RM445 million will be ⚫ Budget has four thrusts including boosting participation allocated to improve access to financing, economic growth in new economy and business premises preparation, and digital era, investing in people. of unemployed entrepreneurial training. ⚫ Broadband prices have been lowered graduates and women by 49%, triggered a shift in consumer https://www.thestar.com.my/business/business- and toward reducing news/2019/10/11/highlights-of-budget-2020- demand for faster internet connections. dependence on proposals#KxgpztGQOw5QWCO8.99 ⚫ Government to introduce a 5G Ecosystem https://www.thesundaily.my/business/fmm- Development Grant worth RM50 million. foreign workers. budget-2020-addresses-market-challenges- AF1474705 ⚫ RM210 million earmarked to accelerate unicorns” in the high tech, manufacturing, https://smemagazine.asia/smes-call-for-greater- deployment of new digital infrastructure creative and economic sectors. government-support-in-budget-2020/ for public buildings such as schools, ⚫ The Government will also offer special https://www.theedgemarkets.com/article/ industrial parks. investment incentives packages worth up malaysias-budget-2020-strikes-prudent- balance-%E2%80%94-world-bank ⚫ National Fiberisation and Connectivity to RM1 billion a year for five years to local https://www.thestar.com.my/news/ Plan will adopt public-private partnership companies that would be able to penetrate nation/2019/10/11/budget-2020-addresses-all- approach involving total investment of the world market. challenges-says-fmm#zjfpuWiZYbLv91g7.99 RM21.6 billion. ⚫ The Government will also allocate RM50 https://www.thestar.com.my/news/ nation/2019/10/13/budget-2020- ⚫ The Government will provide special million for the development of a 100-acre 039extraordinary039-like-election-budget-says- investment incentives packages worth site known as the Kota Perdana Special guan-eng#3SZuH4pxuH2v11Az.99 up to RM1 billion a year for five years to Border Economic Zone in Bukit Kayu http://www.bernama.com/en/business/news. php?id=1778092 attract Fortune 500 companies and “global Hitam in Kedah.

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business feature

Will there be a global recession in 2020? Bloomberg Economics discusses both sides of the issue

Within economic circles the debate whether Growth Slowdown the world economy will go into recession in Manufacturing Malaise 2020 still rages on. Undoubtedly, manufacturers have been the No doubt the United States has struck a biggest trade-war victims, and global activity partial agreement with China in their ongoing has contracted for five straight months. Of trade dispute, however, uncertainties still particular concern is the ailing automobile persist, with the United Kingdom’s Brexit sector – a headache for the export-heavy issue still unresolved. The question arises of German and Japanese economies. Businesses how close the global economy will come to are cutting back, and US non-residential facing its first recession since 2009. investment declined in the second quarter “A lot needs to go right,” said Tom Orlik, for the first time in three years. The question Chief Economist at Bloomberg Economics, is whether the malaise at factories spreads for the world to avoid a major slowdown. Beijing signing up to buy more American farm to services, adding another element to the Bloomberg Economics presented the products and the White House suspending slump. following arguments for and against worries another round of tariffs. But core issues about a global recession in 2020. remain outstanding and some duties Geopolitics remain in place. US goals in the trade war Besides the US-China trade war, the United Why we should worry centre around accusations of intellectual- Kingdom and the European Union have yet to Trade War property theft, forced technology transfer seal a Brexit deal. The US is at odds with Iran The US’s protracted trade clash with China and complaints about Chinese industrial that brings added risks of a hike in oil prices. has already put global growth under pressure. subsidies. There also looms the threat of Protests in Iraq have turned violent, Turkey There was a breakthrough recently with levies on European auto manufacturers. launched an offensive in Syria and marches in

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010-012•BusinessFeature.indd 10 12/4/19 10:57 AM No doubt the United States has struck a partial agreement with China in their ongoing trade dispute, however, uncertainties still persist, with the United Kingdom’s Brexit issue still unresolved. The question arises of how close the global economy will come to facing its first recession since 2009.

Hong Kong have already tipped the economy into recession. Argentina is facing another fiscal crisis and looks likely to oust a market- friendly government, and Ecuador, Peru and Venezuela also have political problems. An impeachment probe into President Donald been too slow to act. The Federal Reserve has Why we should not worry Trump as well as the 2020 election campaign cut its benchmark rate by about 500 basis The US Economy could also prompt him to ramp up his anti- points in all three recessions since the early Bloomberg Economics puts the risk of a US globalisation agenda. 1990s, yet it began this year with only half recession next year at just 25%, and if the that amount available. The European Central world’s biggest economy can stay upright Economic uncertainty is on the Bank and Bank of Japan are already running that should help offset problems elsewhere. rise negative rates with doubts about how much There’s also hope that the so-called stall Lower Profits further they can go. speed at which a recession becomes almost Global profit growth stalled in the second guaranteed is lower than it once was for the quarter, depressing business confidence Reluctant Governments US, meaning it can move along at pace of and leading to cutbacks in capital spending The International Monetary Fund (IMF) is around 1.5%. The US is also more closed an worldwide. Behind the earnings squeeze, among those urging governments to loosen economy than others, meaning it should rising worker wages, lacklustre productivity budgets, but the signs are that fiscal policy be able to carry on expanding even if global growth and a general lack of pricing power. will be reactive not pro-active. Although commerce takes a hit. The danger is that profit-pinched corporations Morgan Stanley estimates the primary fiscal will next chop their work forces, knocking deficit has risen to 3.5% of gross domestic Sub-2% GDP growth used to mean consumer confidence and spending for a loop. product in major economies from 2.4% last recession; some economists now year, it sees it increasing only to 3.6% next see 1%-1.5% bar Squeezed Central Banks year. Some governments are spending more, Hiring Sprees Monetary policy may be easier than at the but China and Germany, both of which have The American consumer has remained a start of the year, but central banks lack room for fiscal stimulus, are holding back and pillar of growth in part because of the lowest ammunition and in some cases may have Japan just raised its sales tax. unemployment rate in five decades. While

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the US labour market has shown signs of easing, it should continue to support household spending. Hiring sprees elsewhere have also helped and the Conference Board reported recently that its index of global consumer confidence remains near a record high.

Consumer gauges show even dips aren’t as bad as last downturn Central Banks Acting The Federal Reserve has cut interest rates twice this year and may do so again, while the European Central Bank has pushed its deposit rate further below zero and relaunched its bond-buying program. The Bank of Japan is also considering doing more. Other central banks in India, Australia, South Korea, South cash banks must hold in reserve to the lowest collapse of housing a decade later. This time Africa and Brazil are among those also since 2007. Infrastructure spending by local around, inflation is generally weak and while trimming their benchmarks. Monetary policy governments is expected to tick higher and stock prices are elevated they are arguably not takes time to work, but should provide some state investment also could surprise on the in bubble territory. support. upside. There can still be grounds for optimism that the global economy will be resilient China Fewer Excesses enough to ride out any threats of recession. China may not be racing to the rescue as it did Prior slumps were driven by a correction of Still, caution will be the watchword. in previous slumps because of concern doing excesses such as the run-up in inflation in the https://www.bloomberg.com/news/ so would inflate debt levels, but it can still 1980s, the bursting of the technology bubble articles/2019-10-12/is-the-world-economy- shift if needed. It’s already cut the amount of in the US at the start of this century or the sliding-into-first-recession-since-2009

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Contact us to get a DEMO of the latest generation of the MONITOR ERP SYSTEM

www.monitorerp.asia [email protected] +60 4 371 7816 special feature

FMM Excellence Award 2019 recipients and winners A joyous celebration FMM’s 51st Annual Dinner was graced by YAB Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail, the Deputy Prime Minister of Malaysia

FMM celebrated its 51st anniversary with its emphasised the need to reskill talent in new human capital issues especially on those Annual Dinner held at the Imperial Ballroom, areas and emerging technologies. related to Technical, Vocational Education and One World Hotel on October 1, 2019. He informed that RM19 million will be Training (TVET). It was an evening to remember as spent to implement in high-speed broadband in He also highlighted some of the aims members of FMM mingled with guests 37 industrial areas by November 2020. He said of the National Blueprint on TVET, where coupled with various activities held in the 623 applications for Industry4WRD Readiness he identified the need to “strive for creation foyer prior to the arrival of Guest-of-Honour Assessment had been received, among which 59 of skilled jobs with good remuneration to YAB Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail, from SMEs have been completed. achieve a skilled workforce in the future and the Deputy Prime Minister of Malaysia. Soh urged the industry to be patient eradicate B40.” The event was also graced by the presence as the Government and FMM strive to Soh, a strong advocate of the “Love of YB Tuan , Deputy Minister of minimise risks and hiccups in an effort to Malaysia, Buy Made-in-Malaysia Products” Agriculture and Agro-based Industry and ensure the smooth implementation on campaign also informed on FMM’s efforts YB Datuk Wira Dr. Mohd Hatta Mohd Ramli, Deputy Minister of Entrepreneurship and Development as well as heads of foreign missions and representatives from FMM member companies. Tan Sri Dato’ Soh Thian Lai, President of FMM in his opening address first focused on the role of Industry 4.0 and Smart Manufacturing. Some of the aspects he

highlighted included the collaboration with Tan Sri Dato’ Soh Thian Lai, FMM President, YAB Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail, MDEC Digital Manufacturing Hub which giving his welcome remarks Deputy Prime Minister, giving her speech

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014-015•AnnualDinner.indd 14 12/4/19 10:57 AM Conratulations to FMM Johor Branch for winning the FMM YAB Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail, Deputy Prime Minister group Membership Growth Award 2018-2019 photograph with the retired branch chairmen

to engage the Ministry of Domestic Trade and brand name, which meets international Sdn Bhd, Linatex Rubber Products Sdn Bhd, and Consumer Affairs to reinvigorate the standards,” she added. Natural Wellness Industries Sdn Bhd, ON campaign. Dr. Wan Azizah also said that despite the Semiconductor Malaysia Sdn Bhd, Poly-Max He also called on the Government to review financial constraints, the various programmes Sdn Bhd, Power Plug Busduct Sdn Bhd and constraints and strategies to boost, among include financial assistance and incentives, Samsung SDI Energy Malaysia Sdn Bhd. other things, local and foreign investments, training and marketing support, particularly The winners of the Silver award in the including adequate infrastructure and fiscal for the small and medium-sized industries SMI category of the FMM Excellence Awards support through appropriate Budget incentives (SMIs) to help smooth the transformation 2019 were Far East, Hexa Food and Khai and speedier approvals. process. Seng. Power Plug emerged as the Gold award He added that FMM remains a strong “The Government is working hard to winner in the same category. advocate of Free Trade Agreements (FTA) to bridge the (skills) gap by reviewing the For the Large category, Amphenol TCS and enhance competitive advantage, increase education system, particularly through Calsonic Kansei were named as Silver award market access and strengthen investors’ industry participation in TVET empowerment, winners. The Gold award winners were Kerry confidence and economic sustainability. which your President (Tan Sri Dato’ Soh Thian Ingredients, ON Semiconductor and Samsung Soh confirmed that FMM is a partner of Lai) is providing leadership by example in SDI Energy. All the gold award winners the National Sustainable Development Goals heading the Ministry of Education’s TVET qualified for the Prime Minister’s Excellence Solutions Platform, developed by UN Country Empowerment Technical Committee.” Award. Team Malaysia and supported by Ministry of Dr. Wan Azizah urged all FMM members Three retiring Branch Chairmen were Economic Affairs, which focused on leaving and manufacturers to take the lead from their given tokens of appreciation by the Deputy no one behind, human rights and governance industry leader and contribute and support Prime Minister, namely Dato’ Dr. Haminuddin and environmental sustainability. the Government’s efforts in improving human Abdul Hamid, Chairman of FMM Kedah/ YAB Dato’ Seri Dr. Wan Azizah in her capital supply as the industry would become Perlis, having served for 10 years, Dato’ keynote address chose to speak first about the ultimate beneficiary. Gan Tack Kong, who served as FMM Perak Shared Prosperity Vision 2030, which was In one of her final messages, she Chairman for 15 years and Captain (R) Haji then launched by Prime Minister, YAB Tun Dr. commended FMM on its leadership for Abdullah Shariff, who served as FMM Johor on October 5, 2019. making a clear stand on its commitment to Chairman for 23 years. “Being a key economic sector in contribute towards the country’s Sustainable FMM Johor Branch was announced as the generating economic wealth and Development Goals (SDG) efforts. winner of FMM’s Membership Growth Award. employment, the Malaysian manufacturing “I hope these efforts are sustained and The award was to recognise the efforts of sector is in a strategic position to help achieve succeed in expanding and securing the branches that have been active in recruiting the objectives of Shared Prosperity,” she said. commitment and contribution of all FMM new members and retaining members. “As investors, the manufacturing sector members and the manufacturing sector Apart from a sumptuous dinner, the should be increasing investments in capital towards the SDG,” she said. audience were entertained by singers Yuii intensive, high-skilled and high value-added The dinner also saw the naming of the 12 Chan and Atilia Haron. The surprise of industries, including new growth sectors,” finalists for the FMM Excellence Award 2019 the evening was provided by the dinner’s urged the Deputy Prime Minister. and the winners. Organising Chairman, Dato’ Andrew Goh who “Such investments would help transform The finalists were Amphenol TCS dedicated a song to FMM President, Tan Sri Malaysia from a consumer nation into a (Malaysia) Sdn Bhd, Calsonic Kansei Malaysia Dato’ Soh Thian Lai. nation of producers, able to manufacture not Sdn Bhd, Far East Paper Products Sdn Bhd, For all it proved an enjoyable and only original parts and components, but also Hexa Food Sdn Bhd, Kerry Ingredients (M) enriching experience as well as an evening to value-added finished products of own design Sdn Bhd, Khai Seng Packaging Industries remember.

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Using blockchain for trade The World Bank is exploring the potential use of the technology beyond digital currency

It is almost ironic that many people know alteration of all subsequent blocks, which explore the impact of blockchain technology about Bitcoin, the cryptocurrency as well as its requires agreement of the network majority. on development. It is launching a blockchain highs and lows, but yet know little about the The technology was invented by a person lab and considering projects that can help technology behind it. or persons, hitherto unknown, using the with good governance and positive social This begs the question – so what is name Satoshi Nakamoto in 2008 to serve outcomes in developing countries, including a blockchain? A blockchain is a growing list as the public transaction ledger of the pilot in Southeast Asia. of records, called blocks, that are linked cryptocurrency Bitcoin. The invention of Blockchain may also have interesting using cryptography. Each block contains a the blockchain for Bitcoin made it the first implications for trade. Increasingly, cryptographic hash of the previous block, a digital currency to solve the double-spending consumers are becoming concerned about the timestamp, and transaction data. problem without the need of a trusted origin of the products they buy (whether food, As a result of its design, a blockchain is authority or central server. garments or consumables) either on ethical or resistant to modification of the data. It is Because of its transparent and verifiable quality grounds. an open, distributed ledger that can record nature, blockchain is being explored by The expectation is that, in increasingly transactions between two parties efficiently various organisations like the World Bank, complex supply chains, blockchain can and in a verifiable and permanent way. For whom want to see if it can be applied to ease provide product proof of integrity. SMEs or use as a distributed ledger, a blockchain is exchange of goods and services and resolve small producers can leverage this proof to find typically managed by a peer-to-peer network other issues in world trade. buyers for their products or gain a marketing collectively following a protocol for inter- The use of this technology is relatively advantage. node communication and validating new new but its potential is also starting to be The ability of blockchain to provide for blocks. Once recorded, the data in any given explored in applications beyond digital ‘self-executing contracts’ (a transaction block cannot be altered retroactively without currency. The World Bank Group has begun to which is triggered automatically when all

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016-017•TechTalk.indd 16 12/4/19 10:57 AM Still, it is by no means a panacea for all the ills that plague world trade. Blockchain also presents some major challenges. Some of these challenges are of a technical nature and others go beyond technology. It remains a tremendous task of aligning diverse suppliers and systems. For blockchain to fulfil the objectives above it would have to include all the participants in the supply chain from the original supplier of the goods to all the parties who have, in some way, played a part in getting those goods to their final destination as well as the regulatory authorities at the points of export or transit/trans-shipment. In the case of some industries (e.g. garments and electronics) the goods may undergo various transformations conditions are satisfied) is also believed to be blockchain was visible by Customs and the and the final product may be assembled an advantage for these small entrepreneurs other agencies, goods could be cleared from materials or components coming from as it would remove the risk of non-payment without further intervention. different suppliers in different countries. and reduce the legal and procedural costs of Blockchain also simplifies the process. These challenges though have not fulfilling a contract. Time and effort would be saved all along stopped countries from exploring its The time and cost of clearing goods for the supply chain by parties not having to usefulness. Shipping Association import or export add a significant financial reproduce the information and submit (SSA) for instance, in collaboration with other burden on trade due to the amount of it manually to the authorities or trading parties is planning to deploy blockchain in its authorisations to import or export goods – partners. Transactions would be made based shipping registration. such as permits, licenses, certificates and on original data supplied at source. SSA, the International Chamber of others - that are required on the grounds It could also contribute to increased Commerce (ICC) and blockchain firm Perlin of human, animal or plant health or safety. security. Opportunities for corruption or are jointly working on an e-registry for the The final agency in a border transaction is collusion would be reduced as the data cannot ship registration and renewal process. Customs, whose role is to ensure that all such be retroactively tampered or altered along The blockchain e-register will run on permits have been obtained and that they are the way as the ledger represents the single self-executing smart contracts, purportedly valid and that the goods have been lawfully source of truth. reducing time, costs and occurrence of errors declared and all regulatory requirements It may also inspire the prevalence of in the registration process. have been met. multi-use big data. Over time, the blockchains The initiative found favour with the What if all the steps in the supply would create a vast repository of ‘big data’ Maritime and Port Authority of Singapore, chain, from origin to destination, were which can be used to analyse patterns which is testing the registration process captured in a blockchain? This could provide and trends of trade to enable increasingly with the system. If the system proves to a degree of assurance that the information sophisticated risk profiling, which would be successful in Singapore, the ICC will bid is correct as it originates at source and was enhance the border authorities’ risk for global adoption of International Earth not ‘manipulated’ along the way. If this management capacity. Rotation and Reference Systems Service (IERS) standards in the industry. The move to define blockchain’s future role in trade has already started, and it will be interesting to see if it fulfils its stated potential.

https://cointelegraph.com/news/singapore- shipping-association-to-deploy-blockchain-for- ship-registration https://blogs.worldbank.org/trade/can- blockchain-revolutionize-trade https://en.wikipedia.org/wiki/Blockchain

BIA @ fmm n oct - dec 2019 17

016-017•TechTalk.indd 17 12/4/19 10:57 AM the communicator

Digital marketing – a proven way to secure new customers A strategy combining website, content and SEO techniques can reap good dividends

Digital marketing has through the years Digital marketing has keeping the audience engaged. Also keep it turned out to be an effective medium for simple but compelling. Make sure your home securing customers, especially new ones. through the years page, products and services, and contact It is most effective when the four pillars turned out to be an pages all have unique content. Blogging is of digital marketing work together, that is, effective medium for an effective means by which you can share website, content, search engine optimisation securing customers, your expertise not only on your own site, (SEO) and social media. Advertising the especially new ones. but through your social media channels as product is also an advantage. well. Furthermore, it is an inexpensive way to improve your search engine rankings. Use Website should load within two-to-three seconds. You Google Analytics to discover how your visitors Keeping your website up-to-date is crucial can test yours out at PageSpeed Insights. Be are interacting with your site. If your visitors as nothing puts off potential customers than sure to engage in visual storytelling, using are dropping off at a certain point, you will a site that is dreary to look at, slows to open high-quality photography and videos that need to improve that part of their experience. pages and is garbled in its content. Also, if create a lasting impression. it has no mobile connectivity, chances are Search Engine OPTIMISATION (SEO) it will be ignored. So, conversely, make sure Content When developing your SEO strategy, your website is modern, accessible and No one has the time or patience to read remember that websites that have more mobile-friendly. Last year, more than half of long-drawn, ‘beating around the bush’ story links from other sites rank better on search all website traffic worldwide was generated lines. Being concise in all the messages and engines. There is a number of ways you can through mobile phones. Ideally, your website commentaries in the site will go a long way to improve your rankings, including registering

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018-019•Communicator.indd 18 12/4/19 10:57 AM with Help A Reporter and using SEMRush. But of course, it is about more than a rate of about USD20 a day. The campaigns Alternatively, you can reach out to a digital driving up numbers. Ultimately you want generated leads at an average cost of USD10 marketing company to optimise your online them to do something once they get to your each. Each sale was valued at roughly presence and marketing efforts. site, contact the company or place an order. It USD10,000. The company had to pause their is called conversion rate optimisation, or CRO. ads because they could not keep up with Social media Here is an example, a sideline micro- the demand. It is just another case where It is best to remember not to try to engage business firm wanted to sell wholesale digital marketing has helped companies Facebook, Twitter, LinkedIn and Instagram hygiene products to Africa, Asia, the Middle cross borders to secure customers in other all at once. A more effective way would be to East and Europe. They engaged a digital countries. pick the two that will work best for you, and marketing company who used Google Ads to https://www.edc.ca/en/blog/mastering-digital- do them well. Compelling output is key, so set up specific campaigns for each market at marketing.html have a content strategy and calendar in place before you start. Never make the mistake of overselling, as you will turn off your audience quickly and likely permanently.

Paid advertising Once you have your website, content, SEO and social media elements working in concert, you can look to online advertising to really boost your exposure. Google Ads is highly recommended. Since you can pay to drive active traffic to your site using specific keywords, the conversion rates are quite high. Facebook Ads is another avenue, and while capable of narrow targeting, the conversion rates are lower because visitors tend to be more passive.

BIA @ fmm n oct - dec 2019 19

018-019•Communicator.indd 19 12/4/19 10:57 AM health & safety

How to maintain a clean and orderly factory environment Safe and litter-free working spaces help workers avoid accidents and injury

Factories which often operate on a number guidelines so that every new and existing to ensure workers are fully educated in of shifts, using many different types of employee can fulfil their tasks each day their duties and know how to implement machinery to make its products can be subject knowing the risk of injury or accidents are at company’s specific safety guidelines. Topics to accidents and injury in the workplace. minimal levels. may cover how to handle specific equipment, The incidence of accidents though can Here are five tips for factories that focus fire training procedures, keeping records of be controlled if the workplace has been on creating the highest possible level of accidents and/or injuries, and using safety planned so that aspects like worker’s safety, workplace safety. equipment. equipment handling and cleanliness are emphasised in its operational set-up. Training Clear Signage All factories know the importance of Training is the best way to instil a culture of Another method to make sure that your providing a safe working environment for workplace safety into your factory. Provide factory runs smoothly and safely is to place their employees. It is also important to have your workforce with thorough training clear signage. These should cover any specific well-established and clear procedures and sessions and regular refresher courses warnings, reminders to wear safety gear and

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020,022•Health&Safety.indd 20 12/4/19 10:57 AM

health & safety

your guidelines to accomplishing daily duties in safest and best possible way. It is extremely important to place signs that notify workers if cleaning is taking place or there are spillages. These could include caution signs, danger warning signs, fire signs, injury prevention signs and many more.

Equipment Make sure that all employees have access to the correct equipment that enables them to do their work in the safest and most efficient way. This includes supplying appropriate safety clothing, such as hard hats, correct footwear and gloves. It should be mandatory for workers to wear the relevant safety gear, so make sure your management enforces this.

Industrial Flooring Industrial flooring is a solid investment and an excellent way to safeguard your factory. health, in accordance with safety guidelines machinery and equipment and always keep A major long-term benefit to using heavy- and ensure you have clear guidelines and records of when checks were undertaken and duty industrial flooring is that it will save procedures in place. Conduct regular training by whom. This will help to find any machinery money. There will be far less maintenance so that employees know how to dispose of any problems before they escalate and will reduce required, such as replacements for damaged type of waste in the appropriate way so that the risk of accidents. or broken tiles or flooring. Additionally, using it is safe and does not endanger any person Follow these steps in maintaining a the correct flooring type will reduce safety or the environment. Use the correct recycling clean and organised factory. It will make hazards or slipperiness, which may lead to bins for your waste management. operations as easy and hassle-free as tripping accidents. Using floor graphics signs possible. While setting this system up will will add another level of safety. Maintenance require a bit of forward planning and some Keep all factory equipment in top working trial and error, it will pay for itself several Waste Disposal condition. This will lower the risk of faulty times over in increased productivity and Industrial waste may be regular domestic equipment causing accident or injuries staff morale. waste, chemicals or glass. Always dispose of and will help to maintain your level of https://www.sitecraft.net.au/news/five-tips- waste, especially the type that is hazardous to productivity. Run regular safety checks on maintaining-safe-factory-environment/

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020,022•Health&Safety.indd 22 12/4/19 10:57 AM A6_YKGI_Star Shine Group(fix X1a_OL).pdf 1 9/23/19 20:37

pg A6 welcome members Welcome to FMM The FMM thrives on the active participation of its members. The involvement of our members and their staff is essential to the long-term growth of the manufacturing sector and to the primary role of the Federation.

It is with great pride and honour for FMM to welcome 97 new members, comprising 72 Ordinary Members and 25 Affiliate Members that joined the Federation from August to October 2019.

ORDINARY MEMBER Dermascience Sdn Bhd A One Advertising Sdn Bhd Diyou Fibre (M) Sdn Bhd Amerseal Industrial Sdn Bhd Dorner (M) Sdn Bhd BNH Manufacturer Sdn Bhd Eik Lam Engineering Sdn Bhd Boingtech Malaysia Sdn Bhd Enormous Resources Sdn Bhd Borneo Flexible Packaging Sdn Bhd Essential Foods Industries Sdn Bhd Carbon Tech Global Sdn Bhd F.Y. Food Processing Sdn Bhd Chemplasa Technology Sdn Bhd Formach Asia Sdn Bhd Cogebi Asia Sdn Bhd Gott Sdn Bhd Cooldec Latex Industries Sdn Bhd Hinoki Beverages Sdn Bhd Delisauce World Foods Sdn Bhd Hirose Electric (M) Sdn Bhd

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024-025•NewMembers.indd 24 12/4/19 10:57 AM Indah Utara Industri Sdn Bhd Toyoplas Manufacturing (Malaysia) Sdn Bhd Isotop Corporation Sdn Bhd Twinine Sdn Bhd JCG Megatech Sdn Bhd Venture Diecasting Sdn Bhd Jinko PV Material Supply Sdn Bhd Vidda Kaisheng Oilfield & Services Sdn Bhd JYC Power Sdn Bhd Vitalite Industry Sdn Bhd Kintex (KL) Sdn Bhd Wasserwelt Sdn Bhd Kontron Asia Pacific Design Sdn Bhd Waterworld Mineral Water Sdn Bhd Kotabox Packaging Sdn Bhd Wellcall Hose (M) Sdn Bhd Kustom Manufacturing Sdn Bhd Winepak Corporation (M) Sdn Bhd Leeden Gases Sdn Bhd Yit Foh Coffee Factory Sdn Bhd Legenda Bumimas Sdn Bhd Yithra Homeware Sdn Bhd Local Assembly Sdn Bhd YTY Industry Sdn Bhd Logsteel Industries (M) Sdn Bhd LTP Engineering Sdn Bhd AFFILIATE MEMBER Madam Sun Sdn Bhd AG Engineering Works (Malaysia) Sdn Bhd MSM Equipment Manufacturer Sdn Bhd Agensi Pekerjaan LVA Sdn Bhd NCT Global Sdn Bhd AMR Environmental Sdn Bhd Nutrition Technologies Sdn Bhd Assunta Hospital Old Chang Kee Manufacturing Sdn Bhd Chep Malaysia Sdn Bhd Orapi Applied (M) Sdn Bhd Cinkoon Hardware Sdn Bhd OSB International Marketing Sdn Bhd City Zone Express Sdn Bhd Petro-Pipe (Sabah) Sdn Bhd Cleantech Solar (Malaysia) Sdn Bhd PHH Metal 1 Sdn Bhd Dinamac Solutions Sdn Bhd Plus Point Engineering Sdn Bhd Ecolab Sdn Bhd Polyflow Pipes Sdn Bhd Edsha Solutions Sdn Bhd Ruby Two Sdn Bhd Exabytes Network Sdn Bhd Ruho Corporation Sdn Bhd IMCD Malaysia Sdn Bhd Salutica Allied Solutions Sdn Bhd J One Marketing SCP Automation (M) Sdn Bhd Maharani Specialist Hospital Sdn Bhd Seki Aoi Techno (Malaysia) Sdn Bhd Mercu Cita Manufacturing Sdn Bhd SPV Core Venture Sdn Bhd Newton Automation (M) Sdn Bhd Sumisaujana TCM Chemicals Sdn Bhd Pan Setia (Malaysia) Sdn Bhd Sun Chun Machinery Works PKT Logistics (M) Sdn Bhd Superace (M) Sdn Bhd Sea Hawk Global Lines Sdn Bhd Sweetco Industrial Sdn Bhd Shiang Lung Supply Sdn Bhd Tan Chee Seng Sawmill Sdn Bhd South Gate Resources Sdn Bhd TD Furniture Square Sdn Bhd Sumitec Sdn Bhd TES-AMM (Malaysia) Sdn Bhd Texas Chicken (Malaysia) Sdn Bhd TMS Lite Sdn Bhd Tuck Sun & Co (Malaysia) Sdn Berhad

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FMMFMMea news SPECIAL FEATURE

Kerry Ingredients (M) Sdn Bhd A leader in food and nutrition Kerry Ingredients (M) Sdn Bhd was the FMM Excellence Award (FMMEA) 2019 - Gold Recipient for Manufacturer of the Year - Large Category

With the continuous support of the Malaysia Productivity Corporation This also reflects on the company and business growth over the (MPC), FMMEA is considered as the industry’s crowning glory whereby years while achieving operational excellence. manufacturing companies are assessed by their peers and accorded recognition for excellence in Leadership, People Development, FMM: What has been the company’s approach to modernising Marketing, Operations, Innovation and Business Results. The FMMEA is machinery and the workforce in the face of greater competition in also an EXCLUSIVE award recognising manufacturing companies. the marketplace? Below we carry excerpts from our interview with Adeeb Zobeideh, Kerry: Kerry always invest in the research and development in growing Vice-President, Operations, South East Asia, Kerry Ingredients (M) Sdn the business. This directly becomes the catalyst towards having best in Bhd (Kerry) as follows: class technologies and processes in delivering the market demand. We also believe that our talent is our biggest assets, hence investing on our FMM: It must have been a proud moment for the company when human resources is key to realise the business goals. it emerged as one of the winners of FMM’s prestigious Excellence Award, what have been the significant gains in terms of recognition FMM: As in most large enterprises the welfare of the employee can be and status on winning this award? paramount to productivity, how does the company ensure their staff Kerry: It has been a massive recognition note on the work and effort remain happy and motivated? for all of the employees on site. It feels like all the hard work and Kerry: Here in Kerry, we are committed in creating and providing dedication that has been put in day to day operations has been rewarded. This enhances further the ‘employee experience’ working within the Kerry organisation. The award also added significant value in Kerry Malaysia’s performance and contribution towards Kerry business globally.

FMM: Relate on some of the key milestones and achievements of the company in the last five years? Kerry: This award enhances further on the previous recognition that the site has achieved over the years, namely, ⚫ The National OSH Award in 2014/15; ⚫ Prime Minister Hibiscus Award in 2018; and ⚫ Green Accord Initiative Award in 2019.

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028-047•News&Events.indd 28 12/4/19 10:55 AM the best employee experience across the FMM: Name some of the challenges faced by organisation. Kerry has established its the company in the marketplace today? Benefits Harmonization across its facilities Kerry: As market dynamics and customers’ throughout the country to ensure consistency expectations evolve, we continue to strive among the employees in Malaysia. On top of to meet such changes and challenges. This that, Kerry exercises market benchmarking requires us to attract and retain talent to on its remuneration and benefits with other deliver on such expectations. industries allowing us to remain competitive. In addition, we have numerous activities FMM: Outline the company’s aspirations and engaging our employees and their families. goals for the future? These activities will involve all of our Kerry: We have a mission to be a world manufacturing facilities in Malaysia and it leader in taste and nutrition serving the food, includes our global network of factories. beverage and pharmaceutical industries, and a leading supplier of added value brands and FMM: In terms of business, how has the customer branded foods to the Irish, UK and company performed in the last few years? selected international markets. Kerry: Business has grown progressively Through the skills and wholehearted year on year. Kerry has been expanding its commitment of our employees, we will be businesses and customers’ portfolio to deliver leaders in our selected markets - excelling the target in locking down the number one in product quality, technical and marketing Adeeb Zobeideh, Vice-President, Operations, position in dairy taste and functionality. creativity and service to our customers. South East Asia, Kerry Ingredients (M) Sdn Bhd We are bringing taste and nutrition to life. FMM: Name some of the core values that are Every day we are moving the food, beverage development and testing, recipe fine tuning, important to the company? and pharmaceutical markets forward through scale up and manufacturing. Kerry: Kerry’s values are as follows: market-leading research and innovation. I encourage all to visit our website https:// ⚫ Commitment – through passion, customer, Our network of global and regional www.kerrygroup.com to learn more. science, technology; innovation and development centres brings ⚫ Teamwork – via respect, diversity, together the best minds in the industry to FMM: As a member of FMM, tell us how has empower, accountable; help our customers develop products that your company benefitted from joining FMM? ⚫ Excellence – adapt quality, safety, integrity, taste great and that consumers feel good Kerry: FMM provides a good platform in ethics; about. expanding our network across the industries ⚫ Entrepreneurship – imply ownership, Our research, development and as well as with the government agencies. innovation, agility, drive; and applications experts can work with our FMM also represents the industries as a ⚫ Value creation – in success, results, customers through all stages of product voice in addressing the concerns in the sustainable, return on investment. development – from idea conceptualisation to manufacturing landscape in Malaysia.

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028-047•News&Events.indd 29 12/4/19 10:55 AM FMMFMMea news SPECIAL FEATURE

ON Semiconductor Sdn Bhd Leading the way in innovative solutions Award-winning ON Semiconductor Sdn Bhd continues its impressive track record four decades on ON Semiconductors Sdn Bhd was the FMM Excellence Award (FMMEA) 2019 - Gold Recipient for Manufacturer of the Year - Large Category in 2019.

With the continuous support of the Malaysia Award, what have been the significant multinational company and manufacturer Productivity Corporation (MPC), FMMEA gains in terms of recognition and status on operating in Malaysia who is constantly is considered as the industry’s crowning winning this award? pursuing excellence in leadership, people, glory whereby manufacturing companies ON Semiconductor: Receiving the highest operation, innovation and business results. are assessed by their peers and accorded award at the national level on our first time The award is also a strong testament for the recognition for excellence in Leadership, participating in this category was not easy, company’s focus on the triple bottom lines of People Development, Marketing, Operations, nonetheless, the team realised the dream people, planet and profit. Innovation and Business Results. The FMMEA at the end and the effort was well spent. It is also an EXCLUSIVE award recognising was indeed a ‘Wow’ and proud moment for FMM: Relate on some of the key milestones manufacturing companies. ON Semiconductor Malaysia when we were and achievements of the company in the last Below we carry excerpts from our announced as the Gold Recipient on October five years? interview with Jose Hernandez Lopez, 1, 2019, at the FMM 51st annual dinner. This ON Semiconductor: Being a technology Vice-President, Manufacturing Operations, award is a deserving recognition for the hard company and a centre of excellence in Malaysia & Vietnam, ON Semiconductor Sdn work of thousands of qualified professionals electronic device packaging, in the past Bhd (ON Semiconductor) as follows: who put their hearts and souls every day to five years, we have successfully developed make our company successful. It is also a key and put into production Power Integrated FMM: It must have been a proud moment milestone and a precious gift to the company Modules (PIM) with leading quality and yield. for the company when it emerged as one of while the site celebrates its 40th anniversary The product is used for enhancing power the winners of FMM’s prestigious Excellence in 2019, as a responsible and progressive efficiency, as well as enabling the electrical

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028-047•News&Events.indd 30 12/4/19 10:56 AM vehicle and hybrid electric vehicle market. We the technical team will be able to sustain have also successfully developed the X4DFN the process at world-class stability with the package which is the thinnest and smallest best yield which will assure the best in class package in the industry for wireless market quality. The whole automated system and segment. processes will be supported by the Advance Reporting Tools which enables Real Time FMM: What has been the company’s Performance Monitoring with good and approach to modernising machinery and the structured guidelines for the team to sustain workforce in the face of greater competition the performance and resolve the issues within in the marketplace? the shortest possible time frame. ON Semiconductor: ON Semiconductor To improve machine and human Malaysia, which was spun off from Motorola productivity, we have embarked on a in 1999, has been operating in this premise transformational journey to engage for four decades since 1979. Modernisation robotics and artificial intelligence (AI) to is a key imperative for the factory to stay upscale our capability. We have constantly relevant and competitive in this region been working on ensuring that the new

as well as moving toward a smart factory manufacturing platforms to be ushered in are Jose Hernandez Lopez, Vice-President, Manufacturing Operations, Malaysia & in the future. There are multiple areas compatible with the Industry 4.0 Standards Vietnam, ON Semiconductor Sdn Bhd which we embarked on our modernization which supports the future trend towards effort. From the manufacturing system automation, AI, hands-free, IoT and cloud be heard with positive feedbacks, either standpoint, the embracement of Industry 4.0 computing. anonymously or through an open dialogue. To is a primary approach, which acts as a total accomplish that, the company has structurally revamp of conventional systems. It begins FMM: As in most large enterprises the organised many activities to achieve these with advance Planning & Manufacturing welfare of the employee can be paramount goals. For instance, monthly sports events, System which is the enabling foundation for to productivity, how does the company quarterly CSR activities, festival decorations Cyber Automation for total manufacturing ensure their staff remain happy and activities, team building activities, service process, from scheduling down to finished motivated? awards, diversity and inclusion events, goods processes. As this process goes on ON Semiconductor: The company is academic excellence awards, responsibility/ with fully automated processes, this will constantly seeking to create a conducive and quality weeks and many more. Besides, the be supported with Big Data Analysis Tools safe environment so that people are able to company also provides adequate training which enable Predictive/Preventive Quality engage and have a sense of belonging at the with annual refresher courses focusing on, Assurance via quick and structured data workplace and beyond work. We are but not limited to, Code of Business Conduct, analysis with critical flagging. With the help also constantly fostering the environment CSR/RBA Code of Conduct, Anti-harassment of this automated big data analysis tools, whereby employee-related issues will and Discrimination. This helps to ensure the entire company is aligned with our core value of respect, integrity and initiative. While facing business challenges, we initiated a stay-home programme to help the business, at the same time providing opportunities for employee to take time-off voluntarily. Special bonus programmes are made available to show appreciation to employees who have contributed significantly and met performance KPI. To ensure the programmes are effective, various dialogues are frequently carried out by GM, HR and department managers on a regular basis. To keep things in check, we carry out independent employee engagement surveys, internal and 3rd party CSR /RBA including customer social responsibilities

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028-047•News&Events.indd 31 12/4/19 10:56 AM FMMFMMea news SPECIAL FEATURE

audits to ensure full compliance to the in 2017. The increase in gross margin was products with aggressive time-to-market RBA Code in order to address any underlying primarily due to more favourable product capability yet with good quality will always issues. Being awarded Platinum Status in mix. remain as one of the key challenges and focus. 2018 by RBA organisation, is a testament of Besides, being innovative in keeping our our commitment. FMM: Name some of the core values that are products offering to be cost-competitive has important to the company? always been a constant challenge. FMM: In terms of business, how has the ON Semiconductor: The success of the company performed in the last few years? company has largely been contributed by FMM: Outline the company’s aspirations and ON Semiconductor: ON Semiconductor strong core values - Respect, Integrity and goals for the future? Malaysia Sdn Bhd’s ultimate holding Initiative - since its inception in 1999. ON Semiconductor: Our vision is to be the company is ON Semiconductor Corporation. In 2018, the Malaysian site has been trusted and preferred supplier choice for ON Semiconductor Corporation’s total awarded Platinum status by Responsible energy-efficient innovations in the market. revenue for the year ended December 31, Business Alliances (RBA) which promote We aspire to grow our company revenue from 2018 was USD5,878.3 million, an increase of sustainable growth globally. Globally, we the current approximate of US$6 billion to approximately 6.0% from USD5,543.1 million were also awarded as the World Most Ethical US$10 billion in the coming years. Hence, from the year ended December 31, 2017. The Company for four consecutive years. We have we are working towards better positioning increase was primarily attributable to an a strong CSR programme that is deeply rooted ourselves in supporting and delivering increase in revenue in our Power Solutions in the above-mentioned core values and Code stronger revenue and margin performance. Group and Analog Solutions Group as a result of Business Conduct. The multiple awards that of better demand. During 2018, we reported we received is a strong testimony to the core FMM: As a member of FMM, tell us how has net income attributable to ON Semiconductor values we hold. your company benefitted from joining FMM? of USD627.4 million compared to USD810.7 ON Semiconductor: Being a member, we million in 2017. Net income attributable to FMM: Name some of the challenges faced by benefitted from attaining advisory services, ON Semiconductor for the year ended the company in the marketplace today? exclusive social and educational events, free December 31, 2017, was positively impacted ON Semiconductor: As of current market HR/IR advisory services, free custom advisory by USD449.9 million relating to the US tax condition, business conditions show services, free listing of company profile and reform as well as the change in revenue modest signs of improvement as supply publicity, obtaining up to-date information recognition from sell-through to sell-in for chain inventories have normalised and on government policy, incentives, procedures, shipment to our distributors. Excluding the orders are trending along with normal regulations and economic and business impact of these items, the improved results seasonality. However, global macroeconomic information. It provides an alternate and for 2018 were attributable to healthy end-user and geopolitical uncertainty still persists, efficient network to voice the concerns of demand for our products and contributions and visibility into end-market demands manufacturers in Malaysia to Government from the acquired Fairchild business. Our remains limited. As the markets we serve are collectively to resolve pressing issues we gross margin increased by approximately competitive, swift in changes and demanding faced more effectively, such as the GST issue 140 basis points to 38.1% in 2018 from 36.7% in quality, being able to introduce new resolution.

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028-047•News&Events.indd 32 12/4/19 10:56 AM FMM news

head office FMM-SMF Joint Business Mission to Taiwan in Conjunction with the 2019 Taiwan-Malaysia Industrial Collaboration Summit

FMM President, Tan Sri Dato’ Soh Thian Lai, presenting a token of appreciation to Guann-Jyh Lee, Deputy Director Group photograph in IEAT General, Bureau of Foreign Trade Ministry of Economic Affairs

FMM and Singapore Manufacturing Federation (SMF) organised a joint Malaysia Industrial Collaboration Summit, Business Matching Meeting mission to Taiwan from October 2-6, 2019 in conjunction with the 2019 organised by Importers and Exporters Association of Taiwan (IEAT) and Taiwan-Malaysia Industrial Collaboration Summit led by Tan Sri Dato’ visit to Ally Logistic. Soh Thian Lai, President of FMM. A total of 12 delegates from various A courtesy call on Guann-Jyh Lee, Deputy Director General of industries joined the mission with the objective of expanding their Bureau of Foreign Trade Ministry of Economic Affairs was arranged market share into the Taiwanese market. with the assistance of Saudah Mat Isa, Trade Commissioner of The programmes covered by the mission were the 2019 Taiwan- MATRADE Taiwan.

Visit to the Largest Trade Event in Industry 4.0 in Singapore

Delegates visiting the Industrial Transformation ASIA-PACIFIC Group photograph in Model Factory @ SIMTECH Exhibition

FMM President, Tan Sri Dato’ Soh Thian Lai led a group of 13 delegates to and was briefed on various activities of SMF. The highlight of Singapore from October 21-23, 2019 in conjunction with the Industrial the visit was the business matching session with over 30 members Transformation ASIA-PACIFIC (ITAP) exhibition. ITAP is Asia-Pacific’s of SMF. leading trade event for Industry 4.0 and was also a platform for industrial Visits to the Model Factory @SIMTech and SMI Technology Pte Ltd players to meet with potential customers in the region. A total of 18,000 were indeed “eye opener’ for most of the delegates. Delegates were visitors from 55 countries were recorded attending the exhibition. given to the opportunities to see the actual production environment The delegation paid a courtesy call on the President of that allows for experiential experimentation and learning of Singapore Manufacturing Federation (SMF), Dato’ Seri Douglas Foo digitalisation technologies for Industry 4.0.

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head office FMM Marketing & Branding Conference 2019 on “Inbound Marketing for Customer Engagement and Lead Generation”

Chen Chan Wing of Launchpad Marketing Sdn Bhd responding to a Dr. Helena Eian (centre) and Dato’ Dr. Ir. Andy Seo (2nd from right) participant’s question during the Q&A Session with speakers of the afternoon session

The importance of marketing within the business function was the ⚫ Kenny Lee, Digital Marketing Consultant, Digital Marketing epitome of the conference, providing useful insights on how best to Consultancy Sdn Bhd; engage customers. ⚫ Vajirudeen Ali, Managing Director, Content Nation Sdn Bhd; and Held at the Royale Chulan Damansara Hotel on August 22, 2019, ⚫ Christopher Tock, Founder and CEO, SocialGrooves.com. the conference also provided an opportunity for participants to network among themselves as well as to learn how to mount effective A question and answer session followed in the afternoon, marketing campaigns that lead to sales and follow up on leads. moderated by Dato’ Dr. Ir. Andy Seo, FMM Vice-President and Chairman The welcome remarks were made by Dr. Helena Eian, FMM Council of FMM Logistics Committee and Chairman of Malaysian National Member and Chairman of FMM Branding and Intellectual Property Shippers’ Council (MNSC). Committee. The speakers were: This was followed by morning and afternoon sessions with ⚫ Lester Chai, Managing Director, Macgad Digital Marketing; speakers providing their expertise on various topics. ⚫ Travis Saw, Regional Consultant, Wave Evolution (M) Sdn Bhd; and The speakers in the morning session were: ⚫ Neela Maniam, Managing Director, CALLMARK Solutions Sdn Bhd. ⚫ Chen Wing Hong, Founder and Director, Launchpad Marketing Sdn Bhd; 120 participants attended.

Signing of Memorandum of Understanding (MoU) between the FMM and Rawalpindi Chamber of Commerce and Industry (RCCI) A new spirit of mutual co-operation has begun with the signing of the MoU at the Shangri-La Hotel Kuala Lumpur on July 8, 2019.

Dato’ Andrew Goh Boon Kim, FMM Vice-President and Malik Shahid Saleem, The signing ceremony was witnessed by Malik Shahid RCCI President at the signing of MoU on July 8, 2019 at Shangri-La Hotel, KL Saleem, RCCI President and Dato’ Andrew Goh Boon Kim, FMM Vice-President.

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028-047•News&Events.indd 34 12/4/19 10:56 AM head office Seminar on Free Trade Agreements (FTAs) Series: ASEAN Trade in Goods Agreement (ATIGA-Form D), ASEAN-China FTA (ACFTA- Form E) and ASEAN-Hong Kong FTA (AHKFTA)

Datuk Noraini Soltan, FMM Vice- President delivering the Welcome Remarks for FMM Seminar on Free Trade Dr. Yeoh Oon Tean, FMM CEO, moderating the Q&A session along with the speakers Agreements (FTAs) Series

The seminar that was themed on Free Trade Agreements (FTA) was Certification Procedures (OCP), Preferential Certificate of Origin (PCO held at the Hilton Hotel on August 14, 2019, and was Form E) and Product Specific Rules (PSR) in HS2017 under the ASEAN- attended by more than 260 participants from 138 companies. Among CHINA Free Trade Area (ACFTA) effective August 15, 2019. them was Datuk Noraini Soltan, FMM Vice-President who gave the Participants were also briefed on the recently entered into force opening address. FTA, ASEAN-Hong Kong FTA (AHKFTA) and on how to leverage on It was organised following MITI’s announcement on the ASEAN Single Window initiative on e-Form D ATIGA and ASEAN Self implementation of the revised Rules of Origin (ROO), Operational Certification System which is expected to help save time and cost.

Group photograph of SMI, Youth and Entrepreneurship Committee led by Ir. Ter Leong Leng, FMM members and JC Lim, Chief Culture Officer of Feruni Ceramiche Sdn Bhd

Corporate Visit to Feruni Ceramiche Sdn Bhd The visit like any learning mission had many virtues like knowing The 14-strong delegation led by Ir. Ter Leong Leng, FMM SMI, Youth the company’s work culture, how it approaches talent and youth and Entrepreneurship Committee (SYEC) Chairman met with Dato’ C.C. management and its innovative office setup. Ngei, CEO of Feruni Ceramiche Sdn Bhd.

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Kedah/Perlis Proposed Amendments to Employment Act 1955, Industrial Relations Act 1967 & Trade Union Act 1959

The workshop was held at Park Avenue 30 participants at the ERT Training at Balai Bomba Amanjaya, Hotel in Sungei Petani on July 16, Sungai Petani 2019, drawing 22 participants from 15 companies. Emergency Response Team (ERT) Helmed by Heng Poh Suan, The workshop was held at Balai Bomba Amanjaya, Sungei Petani FMM’s HR/IR advisor, the attendees from August 5-7, 2019 attracting 30 attendees from 14 companies. were briefed on identifying key areas The participants were briefed by senior officers from BOMBA. proposed for amendment in the The purpose was to familiarise employees with the use of fire Employment Act, Industrial Relations fighting equipment and enable companies to act immediately and Heng Poh Suan, FMM HR/ IR Advisor facilitated Act and Trade Union Act. Also explained effectively during emergencies. In addition, they were briefed on the session on proposed amendments to were the implications of these the following: Employment Act 1955 amendments on employers. ⚫ To learn the objective and role of an Fire Safety Organisation; ⚫ To enable employees to understand and expose them to the proper procedures of installations, maintenance and usage of fire fighting equipment at their factory/ building premises; ⚫ Learn to prevent fire and douse fire during initial stages; ⚫ To upgrade the skills and knowledge of workers in areas that normally are not taken seriously; and ⚫ To comply with the Fire Certificate requirements.

Participants at the BON Session with Bank Negara Malaysia, Penang

Business Networking Session: Sam Wong facilitating session on Corporate Insurance Claims Financing your Business The event was held at Hotel Seri Malaysia in Sungei Petani on August Important Factors you Need 15, 2019, drawing 30 participants from 18 companies. Participants were briefed by Chang Wen Han (Officer, Bank Negara to Know about Corporate Malaysia Penang Branch), Noor Azmi Ibrahim (Branch Manager, Bank Insurance Claims Islam Malaysia Berhad) and Shermaine Cham Keng Fheng (Sales The briefing was held at Hotel Seri Malaysia in Sungei Petani on Manager, OCBC Bank Malaysia Berhad). August 27, 2019, drawing 20 participants from 10 companies. The purpose was multifold as follows: The session was helmed by Sam Wong, Manager, SW Risk ⚫ To provide a forum for business networking among participants; Control Services Sdn Bhd, who explained the common errors ⚫ To update the businesses community on the latest financial found in most Fire and Business Interruption Insurance and /or assistance/solutions offered by selected financial institutions and Industrial/All Risks/Large Special Risks Insurance. Bank Negara Malaysia; and He also briefed more on solutions available to enhance ⚫ To provide a channel for business owners to have a direct dialogue respective insurance policies and to make sure that claims would with the financial institutions and Bank Negara Malaysia (BNM). be acceptable.

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028-047•News&Events.indd 36 12/4/19 10:56 AM penang

Group photograph at OSRAM Opto Semiconductors (Malaysia) Sdn Bhd

YAB Tuan , Chief Minister of Penang, cutting the cake together with YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry and FMM representatives at the FMM Penang 50th FMM-OSRAM Factory Anniversary Dinner on September 5, 2019 Visit 2019 The visit was led by Dato’ Dr. Ooi Eng Hock, FMM Penang Branch FMM Penang 50th Anniversary Chairman to Osram OPTO Semiconductors (M) Sdn Bhd on Dinner September 5, 2019. It was a joyous occasion as FMM Penang celebrated their 50th Also present were Dato’ Ong Eng Bin, CEO of OCBC Bank anniversary with dinner at the Equatorial Hotel Penang on September (Malaysia) Berhad, Tan Sri Dr. Lim Wee Chai, Executive Chairman 5, 2019. and Founder of Top Glove Corporation Berhad, Dato’ Kong Sooi Lin, The guest-of-honour was YAB Tuan Chow Kon Yeow, Chief Minister Independent Non-Executive Director of Eco World International of Penang. Also present was YB Dr. Ong Kian Ming, Deputy Minister of Bhd, Dato’ Dr. Ir. Andy Seo, Vice-President of FMM and Davies International Trade and Industry. Danavaindran, Council Member of FMM. The purpose of the visit was to build rapport among FMM member companies.

Group photograph of the panelists and moderator Tan Sri Dr. Lim Wee Chai received the token of appreciation from Tan Sri Datuk Mustafa Mansur FMM-OCBC Power Talk 2019 The talk was held at FMM Penang on September 5, 2019 and was aimed FMM-USM CEO Forum 2019 at sharing experiences on the topic “Sustainable Business – Economic, The event co-organised with Universiti Sains Malaysia was staged Environment & Social.” 550 people attended. at their Tuanku Syed Putra Hall on September 5, 2019. Speaking at the event were Dato’ Gracing the forum was YAB Tuan Chow Kon Yeow, Chief Ong Eng Bin, CEO of OCBC Bank Minister of Penang. Also present were Dato’ Ong Eng Bin, CEO of (Malaysia) Berhad, Chu Jenn Weng, OCBC Bank (Malaysia) Berhad, Tan Sri Dr. Lim Wee Chai, Executive CEO of ViTrox Corporation Berhad, YB Chairman and Founder of Top Glove Corporation Berhad, Dato’ Dr. Ong Kian Ming, Deputy Minister, Kong Sooi Lin, Independent Non-Executive Director of Eco World International Trade and Industry, International Bhd, Dato’ Ooi Eng Hock, Chairman of FMM Penang Tan Sri Dr. Lim Wee Chai, Executive and Dato’ Lim Wei Yee, Organising Chairman, Tan Sri Datuk Chairman and Founder of Top Glove Mustafa Mansur, Pro Chancellor, USM and Professor Datuk Dr. Davies Danavaindran, Council Member of FMM, Corporation Berhad and Dato’ Ooi Asma Ismail, Vice-Chancellor, USM. raised questions to the panelists during the FMM- Eng Hock, Chairman of FMM Penang The topic “Empowering Malaysians for Smart and Sustainable OCBC Power Talk 2019 Branch. Future” drew much interest as 3,200 students attended.

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perak

Dialogue session with Ir. Zamzurin Maarof, DOSH Director Perak (centre) Group photograph of participants for the Tea Talk

Courtesy Visit to DOSH Perak FMM Perak Tea Talk The visit was made to the Department of Occupational Safety and 21st Century HR Health in Ipoh on July 22, 2019. An informative talk was given for the benefit of FMM Perak The delegation was led by Zubair Abdullah, Chairman of FMM members at FMM Perak on August 13, 2019. Perak Safety, Health and Environment Sub-Committee. The meeting The speaker was Jason Leow, Marketing Manager of Health was chaired by Ir. Zamzurin Maarof, DOSH Director Perak. Metrics Sdn Bhd, who briefed the 29 attendees on the various The purpose was to build closer ties with the department and FMM. technologies available to simplify HR processes.

FMM – TNB Committee Meeting The meeting was held at Wisma TNB on August 15, 2019. 23 representatives from 12 companies attended. YM Raja Dato’ Abdul Jalil Raja Zaid, the General Manager of TNB, helmed the meeting to brief the committee on TNB services The meeting was chaired by YM Raja Dato’ Abdul Jalil Raja Zaid, General Manager of TNB (centre) and attended by representatives from FMM Perak and serve as a platform for members to discuss their power quality members issues.

FMM Perak Seminar on Free Trade Agreements (FTAs) Series: ASEAN Trade In Goods Agreement (ATIGA - Form D), ASEAN- China FTA (ACFTA-Form E and ASEAN-Hong Kong FTA (AHKFTA) Members and non-members were given insights on Free Trade Agreements (FTA) in a seminar held at the M Roof Hotel & Residence, Ipoh on September 18, 2019. The speakers included Syahril Syazli Ghazali, Director, Strategic Negotiation, Ministry of International Trade and Industry (MITI), Ryia Aisha Mohd Yunos, Senior Assistant Director, Industry and Trade Support, MITI, Augustino a/l Jude, Assistant Director, Industry and Trade Support, MITI and Suhaimi Sulaiman, Regional Manager (Northern), Dagang Net Technologies Sdn Bhd. 51 representatives (40 member companies, 11 non-member companies) attended. The purpose were: Q&A Session with MITI Officers and Dagang Net Technologies ⚫ Understand overview of ASEAN Trade in Goods Agreement (ATIGA- representative Form D; ⚫ Be updated on the revised Rules of Origin; and Product Specific ⚫ Be informed of preferential tariff advantages and tariff reductions Rules under ASEAN-China FTA; and in the upcoming ASEAN-Hong Kong FTA (AHKFTA).

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028-047•News&Events.indd 38 12/4/19 10:56 AM perak FMM Perak 51st Annual Dinner The dinner held at Casuarina @ Meru on September 26, 2019, proved to be another way for members to network with respective government agencies. Gracing the celebrations was Tuan Haji Asmuni Aw, State Exco Agama dan

Group photograph of Tuan Haji Asmuni Aw, Exco Agama dan Pendidikan Islam, Industri, Luar Pendidikan Islam, Industri, Luar Bandar Bandar dan Pembangunan Usahawan (centre), Dato’ Gan Tack Kong, FMM Perak Chairman (6th from left), Tan Sri Dato’ Soh Thian Lai, FMM President (6th from right) and FMM Perak Committee dan Pembangunan Usahawan. 450 people members attended.

Monitor ERP Roadshow : Improved Profits through Higher Customer Service Levels and Operational Excellence Customer service remains an integral part of business and companies were shown how to raise the bar in a talk held at Weil Hotel in Ipoh on September 19, 2019. Addressing the 35 members from 15 companies on the matter was Daniel Haggmark, Managing Director, Monitor ERP System Southeast Asia. The aim was to help members learn how the Monitor ERP system

Group photograph of the speakers and participants at the end of the can improve their customer service levels and operations in a more talk. efficient, cost reducing manner.

Expand Your Business to Australia Opportunities to develop trade ties between Perak and Australia were among the key topics revealed in the talk held at FMM Perak on August 27, 2019. Gracing the event was YB Dato’ Seri Ir. Haji Mohammad Nizar Jamaluddin, Perak State Exco for Investment and Corridor Development. Also present were Daniel Havas, Minister Counsellor (Commercial) and Senior Trade and Investment Commissioner to Malaysia & Brunei, Australian Trade and Investment Commission, Caitlyn Noble, Acting Trade Commissioner, Sawaddee Muhammad, Director of MIDA Perak and Dato’ Gan Tack Kong, Chairman of FMM Perak. 30 members from 15 companies attended. The event provided a timely platform for members Dato’ Seri Ir. Haji Mohammad Nizar Jamaluddin (6th from left) chaired the session with Daniel Havas (7th from left) and Dato’ Gan Tack Kong (5th from right) to network with Australia Trade Commission to explore business opportunities between Australia and Perak.

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Selangor and Kuala Lumpur

Dialogue session with Selangor Immigration Department and Selangor Labour Department

Group photograph with YB Puan Rodziah Ismail, Selangor State Executive Councillor for Entrepreneurs Development, Rural Seminar on Foreign Workers Development and Traditional Village Management in Malaysia with Immigration Department Selangor Courtesy Visit to Selangor and Labour Department Selangor State Executive Councillor for The seminar held at the Concorde Hotel Shah Alam on August 6, 2019, Entrepreneurs Development, was aimed at fostering closer ties between FMM member companies and the Immigration and Labour Departments of Selangor. Rural Development and In addition, it helped members understand the role both Traditional Village departments play in relation to foreign workers as well as establishing The visiting delegation led by Jacob Lee, FMM Selangor Chairman, a mutually beneficial relationship with FMM member companies. came to YB Rodziah Ismail’s office on August 7, 2019, to further The speakers were Ahmad Mudi Onn Nor, Director of Labour explore areas of co-operation. Department Selangor, Mohd Shukri Nawi, Director of Immigration The visiting members met with YB Rodziah, the Selangor Department Selangor, Mohd Fauzi Abu Hassan, Assistant Director State Executive Councillor for Entrepreneurs Development, Rural Immigration of Foreign Workers Division, and Jacob Lee, Development and Traditional Village. Chairman of FMM Selangor. 54 members participated. Also present were the State Executive Councillor’s private and general secretaries respectively, namely Zahariman Ariffin and Hanafi as well as Norlin Mohamed, Assistant Director of Sectoral Section, State Economic Planning Unit. Besides establishing closer rapport with the State Executive Councillor, it also sought exchange of information and discussions on matters related to entrepreneurial development.

In recognition of the support to FMM Selangor OSH Conference 2019, Wong Soo Kan, Chairman (2nd from right) and Prame Kumar Nair, Vice-Chairman (far right) of FMM Selangor Industrial Safety, Health & Environment Working Committee presented an appreciation plaque to Husdin Che Amat (2nd from left), Director of Department of Occupational Safety and Health (DOSH) WP Kuala Lumpur on September 6, 2019

FMM Selangor Industrial Jacob Lee, Chairman of FMM Selangor and Kuala Lumpur Branch, Safety, Health & Environment giving his opening speech during the 33rd Annual General Meeting Working Committee Courtesy Call to DOSH WP Kuala Lumpur FMM Selangor and Kuala The visit to the Department of Safety and Health WP Kuala Lumpur on Lumpur Branch 33rd Annual September 6, 2019, was to present a plaque as a token of appreciation General Meeting for the department’s support to FMM Selangor in the DOSH conference The meeting which saw attendance from 41 members was held at 2019. the Royale Chulan Damansara Hotel on October 2, 2019. Receiving the award was Husdin Che Amat, Director of Department Helming the event was Jacob Lee Chor Kok, Chairman of FMM of Occupational Safety and Health (DOSH) WP Kuala Lumpur. Selangor and Kuala Lumpur Branch.

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Group photograph of the students and FMM representatives Group photograph of FMM Selangor Customs Working Sub- Committee members and Senior officers from Customs Central Zone FMM Selangor -MSU Young Entrepreneurs & Innovation Courtesy Call to Assistant Program 2019: Product Director General of Customs Pitching Competition Central Zone The competition staged at the Management & Science University in The visit to the Jabatan Kastam DiRaja Malaysia Zon Tengah, Shah Alam on September 25, 2019, was largely to witness the hatching Kelana Jaya, was among other aims, to foster closer ties and co- of new and potentially successful projects and sustainability in the operation between the department and FMM Selangor Customs real world. Working Sub-Committee. Present were Hanafi Suib, Senior Secretary of Selangor State It allowed FMM committee members to exchange views Executive Councillor for Entrepreneurs Development, Rural and raise queries with the department on many relevant issues Development and Traditional Village, Jacob Lee, Chairman of FMM affecting member companies. Selangor, Dato’ Nasharudin Shukor, Vice-President, Business and Present to receive the group was Dato’ Zurkurnaian Mohd Enterprise Development, Management & Science University (MSU) and Yusof, Assistant Director General of Customs, Central Zone. Dato’ Dr. Mohd Nazlee Kamal, Chairman, Pearl Asia Accelerator Sdn Zainudin Awang, Vice-Chairman of FMM Selangor Customs Bhd. 300 participants took part in the competition. Working Sub-Committee led the delegation.

FMM Selangor / SOCSO / UNISEL Safety Program on “OSH Awareness for Future Young Employers and Workers” It was an event aimed at creating awareness of occupational safety and health issues among university students whom are deemed as the next generation of employers and workers. Held at the Universiti Selangor in Shah Alam on September 26, 2019, the seminar which was co-organised between the Social Security Organisation (SOCSO) and Universiti Selangor (UNISEL) was attended by more than 100 students. Present were Professor Dato’ Dr. Mohammad Redzuan Othman, President and Vice -Chancellor,

A group photograph of FMM Selangor / SOCSO / UNISEL Safety Program on “OSH Universiti Selangor and Mustafa Draman, Director Awareness for Future Young Employers and Workers” on September 26, 2019 of SOCSO Selangor.

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negeri sembilan

YB Dr. Ong Kian Ming & FMM delegates being briefed by Abdul Rahman, General Manager of Daihatsu Perodua Engine Manufacturing Sdn Bhd during the plant tour

Group photograph of FMM NS Committee Members with YB Dr. Ong Kian Ming (seated, centre)

FMM NS CEOs Networking Session with Deputy Minister Group photograph of participants with YB Dr. Ong Kian Ming, Deputy Minister of MITI (seated, centre) of International Trade and Industry Visit to Daihatsu Perodua It was a significant networking session between the Federal Engine Manufacturing Sdn Bhd Government and captains of industry held at the d’ Tempat It was part of a long learning curve for FMM NS members as they Country Club in Sendayan on July 5, 2019. joined the trip to Daihatsu Perodua Engine Manufacturing Sdn Bhd on Providing the policy updates and the latest information on July 5, 2019. Industry4WRD to the business leaders present, was YB Dr. Ong The visit provided an opportunity for members to learn Best Kian Ming, Deputy Minister of International Trade and Industry. Practices in relation to Industry4WRD as demonstrated in the factory. The session also provided a medium for exchange of ideas at the 21 members were part of the visiting group. business level. Present were YB Dr. Ong Kian Ming, Deputy Minister of Also present were Zetty Hamimi Zakaria, Director, MIDA International Trade and Industry, Zetty Hamimi Zakaria, Director, Negeri Sembilan, Steven Aroki, Chairman, FMM Negeri Sembilan MIDA Negeri Sembilan, Steven Aroki, Chairman, FMM Negeri and Takashi Shirai, Managing Director, Daihatsu Perodua Engine Sembilan and Dato’ Madani Sahari CEO, MARII. Manufacturing Sdn Bhd. 54 people attended.

FMM NS Hiking and Networking Session with DOSH, DOE & BOMBA Negeri Sembilan at Bukit Batu Putih, Port Dickson Hiking was part of the programme used by FMM S.H.E. committee members as a way of recreation and building rapport with Government officers and local authorities. This was amply demonstrated in their annual outdoor activity held at the PNB Ilham Resort in Port Dickson on July 6, 2019. Present was Haslinda Rudzuli, Fire Superintendent, Fire and

Group photograph of participants at the entrance of Bukit Batu Putih, Port Rescue Department of Malaysia Headquarters, Negeri Sembilan Dickson. State. 27 people took part.

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Group photograph of the speaker, Satwant Singh (2nd row, 1st from right) with the participants

Group photograph of FMM NS 2018/2019 – 2019/2020 Committee FMM NS Briefing on Prime Members with Steven Aroki, FMM NS Chairman (seated, centre) Minister’s Hibiscus Award 2019/2020 FMM NS 20th Annual General Held at FMM Negeri Sembilan Branch office on August 7, 2019, the Meeting briefing was to provide an overview of the award and its assessment The Annual General Meeting (AGM) held at the FMM Negeri criteria for the 2019-2020 cycle. Sembilan Branch office on September 11, 2019, saw 17 committee The briefing was given by Satwant Singh, Technical Committee of members being elected. A total of 24 representatives from Prime Minister’s Hibiscus Award. 17 members attended. member companies took part in the elections.

melaka SST and Corporate Tax for Updates on Customs Laws & Manufacturers Regulations: Amendments The seminar staged at Ramada Plaza to the Customs Act 1967 and Melaka on July 24, 2019, hosted 40 Free Zone Act 1990 participants who were briefed on matters pertaining to SST and taxation. The speakers were from law firm S. Saravana Kumar, Partner, LHAG speaking Lee, Hishamuddin, Allen and Gledhill on the tax cases that he has handled and represented by S. Saravana Kumar, Keith how companies can learn from them Lim and Ivy Ling.

Asean ATIGA Form D, Asean China FTA and Asean Hong Kong FTA The seminar was held at Holiday Inn Melaka on August 27, 2019, attracting 66 attendees who were briefed on the latest rules Rozila Mustaffa, Senior Assistant Director 1, Customs Putrajaya concerning free trade agreements (FTA). explaining on the main changes to the Customs Act 1967 The speakers were Ravi CK Raman, Director, Services Sector Development, The seminar was held at the Ramada Plaza Melaka on September Fahurrohman Kasrur, Assistant Director, 30, 2019, drawing 38 attendees who were informed on changes to

Ravi CK Raman, Industry and Trade Support, Azyyati Ibrahim, the Customs Act. Director DagangNet informing Principle Assistant Director, Industry and The speakers were Rozila Mustaffa, Senior Assistant Director participants on the new ASEAN Hong Trade Support and Nurzakina, Officer, 1, Enforcement Division, Customs Putrajaya and Edmund Yee, Kong FTA DagangNet. Associate, Lee, Hishamuddin, Allen and Gledhill.

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johor

Group photograph of the participants during the networking session

FMM Johor Networking Luncheon with Branch Committee Members The event was held at the Grand Paragon Hotel on July 9, 2019, attracting 60 participants who used the platform to network with each other.

Townhall Session between FMM Members and Majlis Bandaraya Johor Bahru Syahzul Jayawirawan, Director MIDA Johor, delivering his presentation to the participants during the programme (MBJB) The event was held at KSL Business Networking Session and Briefing Hotel in Johor Bahru on August 22, 2019 and served as an important on “Automation Capital Allowance (ACA)” by dialogue and networking session MIDA Johor between Johor City Council and The event was staged at Classic Hotel in Muar on August 27, 2019. FMM members. 200 attended. The session was helmed by Syahzul Jayawirawan Mohd Yunus, Director MIDA Johor who briefed the The townhall session was 20 attendees. graced by the presence of the The purpose was to provide FMM members with the latest updates on Automation Capital Mayor YB Dato’ Haji Amran A. Allowance, application procedures and networking session with MIDA Johor. Rahman.

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Recipients of the FMM Institute Programmes with Tan Sri Dato’ Soh Thian Lai, Dato’ Sri Norolazali Sulaiman, Ir. Kua Jit How and Dato’ Nathan K Suppiah

FMM President, Tan Sri Dato’ Soh Thian Lai presenting his speech at the dinner Group photograph at the dinner

FMM Eastern Branch Annual Dinner 2019 The dinner proved to be a social event where members could interact Awam Dan Inovasi, Negeri Pahang Darul Makmur. with government officers in an informal manner. Also present were Haji Zainal Abidin Mohamed, Timbalan Held at the Vistana Hotel in Kuantan on August 23, 2019, it was Setiausaha Kerajaan Negeri Darul Iman, who also holds attended by 180 guests, including representatives from member the post of Pengarah, Unit Perancang Ekonomi Negeri Terengganu companies. Darul Iman, Tan Sri Dato’ Soh Thian Lai, FMM President, Dato’ Nathan Gracing the occasion was YB Dato’ Sri Norolazali Sulaiman, K Suppiah, FMM Vice-President, Ir. Kua Jit How, FMM Eastern Chairman Pengerusi, Jawatankuasa Kemudahan Asas, Sistem Penyampaian and Dato’ Dr. Ooi Eng Hock, FMM Penang Chairman.

FMM Eastern Branch Invitational Golf 2019 FMM members and government officers teed off in a spirit of co-operation at the Mahkota Golf and Country Club in Kuantan on August 24, 2019. A total of 180 guests attended, including 90 golfers. Among them were Tan Sri Dato’ Soh Thian Lai, FMM President, Ir. Kua Jit How, FMM Eastern Chairman, Haji Zainal Abidin Mohamed, Timbalan Setiausaha Kerajaan Negeri Terengganu Darul Iman dan Pengarah, Unit Perancang Ekonomi Negeri Terengganu Darul Iman, Dato’ Nathan K Suppiah, FMM Vice-President Group photograph of the players before the tournament and Dato’ Dr. Ooi Eng Hock, FMM Penang Chairman.

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sabah

Group photograph of FMM Sabah Chairman with all Customs Officials and participants

FMM-Customs Seminar on Latest Updates on Sales and Service Tax (SST) Held at the Grandis Hotel in Kota Kinabalu on August 22, 2019, the The event which drew 25 participants aimed at the following: seminar aimed at keeping FMM members well-informed on all matters ⚫ Help members understand the new guidelines on SST drawbacks; related to SST. ⚫ Gain updates on the latest SST exemptions; The speakers were Chee Kim Yen, Senior Assistant Director II ⚫ Learn the compliance audit framework and discuss the common Customs, Nur Aisyah Erpin Massalo, Assistant Director Customs, issues and how to manage them; and Pausiah Rustan, Assistant Director Customs and Deeph Singh A/L ⚫ Create networking opportunities and exchange of experiences with Gorpal Singh, Deputy Director Customs Sabah. other participants.

FMM Study Visit to Sabah Ports Sdn Bhd Closer rapport between Sabah Ports and FMM was one of the reasons for the visit to their head office in Sepanggar on September 12, 2019. 20 members made the trip which included meeting with the port’s senior officials, namely, Mohamad Dahlan, Senior Manager of Customer Relations, Rosiah Farida Siahaan, Senior Manager, Finance/ Administration and Clarence Miwil, Senior Manager, Sepanggar Bay Container Port. Essentially, the purpose of the visit was to: ⚫ Better understanding of Sabah Ports Sdn Bhd’s operation and facilities; ⚫ Create a closer rapport with Sabah Ports Sdn Bhd; FMM Sabah RO Chairman, James Ha, (4th from left) presenting FMM’s 50 Years & Beyond Coffee Table Book to Mohamad Dahlan, Senior ⚫ Obtain latest updates on Sabah Ports Sdn Bhd’s undertakings; and Manager, Customer Relations of Sabah Ports Sdn Bhd ⚫ Discuss and exchange inputs and ideas on related issues in Sabah.

FMM-MATRADE-Uzbekistan Networking Session: Business Opportunities in Uzbekistan Trade and investment opportunities in Uzbekistan were among the key issues discussed in the networking session held at the Grandis Hotel in Kota Kinabalu on July 12, 2019. It also aimed at creating a platform for further collaboration and exchange of information besides also serving as a means for securing potential FMM members. The Uzbekistan delegation was led by His Excellency, Ravshan Usmanov, the Uzbekistan Ambassador to Malaysia. He was accompanied by Mahmud Mahmudov, Trade and Economic Counsellor and Shiraz Abdullaev, Second Secretary of Uzbekistan Embassy.

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Participants posing with Tuan Khirudin Drahman @ Hussaini, State Director of Fire and Rescue Department, Sarawak

Update On Requirements For BOMBA Fire Certificate & BOMBA Safety Training The seminar was held at Ibu Pejabat Balai Bomba Sarawak, Kuching on August 28, 2019, attracting 79 particpants. Tuan Khirudin Drahman @ Hussaini, Director of Fire and Rescue Department, Sarawak briefed the attendees on the latest requirements for BOMBA Fire Certificate application and basic BOMBA safety training.

Group photograph with speakers and participants

FMM OSH Seminar “Regulatory Updates and Understanding Latest DOSH Requirements for Industries 2019” The seminar held at the M Hotel on July 31, 2019, attracted 39 participants from 21 companies. Safwan Lokman and Henry anak Tinsang, officers from DOSH Sarawak, updated participants on the relevant information, knowledge and understanding on the latest regulations by DOSH.

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028-047•News&Events.indd 47 12/4/19 10:56 AM Gastronomy

Wine for every whim and fancy Many Malaysians are fascinated with discovering wine and David Bowden dispels the myth that drinking wine is only for connoisseurs

Opening a bottle of wine is like reading a book or, find appropriate words to describe the with whatever food. as no two books are the same and even re- outstanding qualities. It doesn’t matter, drink However, if you want to know a little more reading the same book again, reveals insights on, the words will come later as long as you about the mystery of wine, here are some that weren’t apparent in the initial reading. like what you taste. useful tips. It’s the same with wine. Even wines of Some think that wine appreciation is the same variety, winemaker, vineyard and only for connoisseurs, those with money and Vine to Wine year can elicit different sensations when those who know what they are talking about. I Wine is produced from ripe fruit that has consumed a second time. Perhaps the disagree, buy the wine, drink it and, if you like been pressed and fermented. In most cases, wine has been stored differently, we’re in a it, buy and drink more. grapes are used. Wines need not be alcoholic different mood, we’re with new friends or the While there are wine ‘rules’ for those but most are. Natural yeast growing on the wine is consumed with different food. Many in the know, most just drink what they like. grapevine reacts with sugar in the fruit and factors contribute to the sensation of taste. Wine makes a perfect accompaniment to food converts it into alcohol. and matching or pairing wine with food can The juice maybe stored for years before it Pairing Wine with Food be an art but it need not be. Maybe the first is filtered, bottled, distributed and consumed. Many often say they appreciate a wine but wine rule for beginners should be – there are It can be stored in stainless steel containers they can’t put a finger on what it is they like no wine rules, drink whatever wine you like or oak barrels that help age the wines with

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the latter infusing oak flavours. Winemaking is a chemical process that is scientifically monitored. For some wines, packaging and marketing outweigh the wine quality (apparently animals on labels help sell wine). Often, the marketing and packaging influences consumer so an obscure German Auslese from the Mosel loses out to an easily identifiable Australian quaffing wine. own story). These can be divided into red, and the grapes harvested when they are ripe. Fads and trends may also sway judgment white or Rosé (pronounced rose –ay). Rosé There are thousands of grape varieties so a New Zealand Pinot Noir will be selected is pink or rose coloured from the grape juice and each has its own personality. The main over an unfashionable Portuguese Rosé. There having been in contact with red grape skins white wine grapes are – Chardonnay, has been a meteoric rise in New Zealand Pinot for a short time. Wines are further divided Sauvignon Blanc, Riesling, Sémillon, Viognier, Noirs with those from Felton Road some of into style from bone dry to very sweet (and all Gewürztraminer and Muscat and for red, the finest and a perfect red for dishes like variations in between) by the amount of fruit Cabernet Sauvignon, Shiraz (or Syrah), roast duck or Hainanese chicken. sugar the winemaker retains in the wine. Merlot, Grenache, Tempranillo, Pinot Noir and Consumers should explore and Winemaking is similar to a pastry chef Sangiovese. experiment with wines. For example, a baking a cake – adding different ingredients What makes drinking wines interesting delicious bottle of Spanish Pedro Ximénez and taking out others, results in a different is that there are many more grape varieties with a cheese platter rather than a Port or a wine. so there are hundreds of taste sensations heavy red wine. Every year, winemakers aim to make awaiting. Some wines are produced as the best wine with the grapes they grow. It’s straight varietals – so an aromatic New Wine Styles tough making a great wine from an average Zealand Sauvignon Blanc is just that with no Basically, there are two categories of wine crop so it’s essential to grow high quality other varieties added. – still and sparkling (fortified wines such as grapes. This means the weather has to be A fine French Bordeaux will normally be Port is another category that warrants its ideal, the grape growing technique faultless a blend of Cabernet Sauvignon, Cabernet

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048-051•Wine&Food.indd 49 12/4/19 10:56 AM Gastronomy

Franc and Merlot. The contribution of each winemakers Alpha Box & Dice and Hither depends upon the estate’s style and no two & Yon are both relatively new and produce blends are similar as winemakers may change exciting wines especially from lesser-seen their blend from year to year depending upon grape varieties such as Carignan, Touriga and grape quality. Nero D’Avola as well as Shiraz and Cabernet Often grape varieties are listed on Sauvignon. the label (often a legal requirement) and Wine consumers need to appreciate that useful. Many a wine drinker has said, “I don’t sometimes not – the back label may display growing grapes is an agricultural activity that know much about wines but I know what I this information (French and Italian wines is dependent upon ideal climatic conditions. like.” However, there are descriptive words usually only list the region, consumers are It’s difficult to make good wines when to describe taste sensations – sweet, dry, supposed to know the grape varieties used). weather conditions aren’t perfect. In a bad tart, bitter, sour, heavy, light and fruity, for year, winemakers do the best they can with example. Other words based upon known Tasting Notes what they have or, occasionally, not make tastes are also useful – chocolate, pineapple, Reputation and heritage mean a lot in the wine if conditions are really bad. guava, mango or peach. wine business so an estate that’s been around For many wineries, wines are produced The sense of smell is also important and for a long time probably knows a thing or even in bad years, as they need to make a that is why swirling wine in a glass stimulates two about producing good wines. Italian profit. the aromas. wines such as Chianti or Brunello Montalcino Colour is important and often a golden are two fine examples of wines with a long Wine Therapy yellow colour in a white wine may indicate heritage. Buying wine from reputable retailers is that it is off and brownish red wines may also New kids on the block have a lot to learn. important. Get to know a wine retailer and let indicate the wine is past its use by date (these However, if the new kid has sound financial them know what you and recent wines you’ve are general rules and there are exceptions - a backing it can build a brand based upon state- tasted so they can offer advice on the wines sweet dessert white wine should be golden of-the-art equipment, respected winemakers best suited to your palate. yellow and an aged Italian Barolo red wine and innovative marketing. South Australian This is where descriptive words are should be slightly brownish).

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048-051•Wine&Food.indd 50 12/4/19 10:56 AM Even wines of the same variety, winemaker, vineyard and year elicit different sensations when you consume them a second time around.

Some wine shops and restaurants help Drink What You Like best consumed with dessert or fruits and wine consumers by listing their wines under With so many taste sensations waiting, how wines by themselves as an aperitif before tasting characteristics so the red wines may do you decide which wine to consume? At the a meal could be a crisp dry white like Cape be listed as – light and fruity, full bodied, end of the day, you can drink whatever you Mentelle Chardonnay or a sparkling wine like rich and tannic etc rather than by country like with whatever food you like – it’s your Champagne. Try a Rosé for your next picnic or and region. Briar Ridge Shiraz from the palate and your money. lunch. Hunter Valley provides a good introduction to However, there are a few wine ‘rules’ The more wines you sample, the easier it tannin in wines. Wine tannin is similar to the that will bring out the best in the wine and is to appreciate the rules. In the initial steps bitterness of tea (it tends to coat your teeth) the accompanying food. The main ones along the long and endless wine trail don’t and provides depth and body to a wine. This are – white wines with white meat and become regimented by the rules, do what you wine pairs well with a spicy beef rendang. red wines with red meat. Sweet wines are like but be prepared to learn more.

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048-051•Wine&Food.indd 51 12/4/19 10:56 AM did you know? Fun facts to know The world of trade, industry and economics is often overflowing with data, hard facts and stats. Most of the time we tend to look at the big picture though it doesn’t hurt also to know how the small dots lead to the big dots.

For the first time, more Fact Manufacturing accounts for 32% Fact There are 1,300 beer breweries in Fact companies from Greater China of US employment. Additionally, Germany, producing over 5,000 #1 made it to Fortune Magazine’s #3 every manufacturing job #5 types of beer. No surprises then 500 list of the largest companies in the world supports another 3.6 jobs outside the why Germans are the world’s second biggest than American companies. A total of 129 industry. beer drinkers. companies, including 10 from Taiwan, were ranked among the world’s biggest firms by According to a Reuters report in https://www.inkstonenews.com/business/china- Fact overtakes-us-creating-fortune-500-companies/ operating revenue in 2019. Their number September 2018, the minimum article/3019735 rose from 120 last year, while the number #4 wage for garment workers https://www.businessinsider.my/top-10-banks- for the US declined from 126 last year to 121 in Bangladesh was raised by 51% from in-the-world-2019-2019-7/?r=US&IR=T this year. Excluding Taiwan, 119 companies December 2018. The new minimum wage https://mfgtalkradio.com/10-interesting- from mainland China and Hong Kong made was set at 8,000 taka (US$95) a month, up manufacturing-facts-2/ it to the list, almost on par with the US. The from 5,300. Bangladesh, the world’s second https://www.reuters.com/article/us-bangladesh- garments/bangladesh-raises-wages-for-garment- contribution of state-owned enterprises largest clothing exporter, last increased wages workers-idUSKCN1LT2UR also rose, with SOEs representing 80.2% for garment workers late in 2013 following https://takelessons.com/blog/fun-facts-about- of Chinese companies on the list, up from international pressure after a string of fatal germany-z12 76.3% last year. China National Petroleum, a factory accidents that thrust poor working state-owned enterprise, is one of the biggest conditions and pay into the spotlight. companies in the world.

Fact According to a list released by The Banker comprising of the #2 100 largest banks in the world, the top four were from China. The Banker includes 1,000 banks across the list, ranking them based upon Tier 1 capital – a yardstick used by regulators to assess a bank’s financial health. On the list of the top 10 banks, only four of them were American, with one from the UK, one from Japan and the rest were Chinese. Topping the list was China’s ICBC with assets totalling US$338 billion followed by China Construction Bank with US$287 billion, Agricultural Bank of China with US$243 billion and the Bank of China with US$230 billion. The largest American bank, JPMorgan Chase took fifth spot with US$209 billion.

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052•DidYouKnow.indd 52 12/4/19 10:56 AM FUTURE-READY AUTOMATION: FLEXIBLE, ROBOTIC, DATA-DRIVEN

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