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Business in Action @ 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 14 000•Cover.indd 1 12/4/19 11:44 AM 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 Malaysia 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 001•Contents.indd 1 12/4/19 10:58 AM business IN action @ FMM 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 PRINTER Legasi Press Sdn Bhd No 17A, (1st Floor) Jalan Helang Sewah Taman Kepong Baru, Kepong 52100 Kuala Lumpur Stay connected with FMM, follow us at www.fmm.org.my BUSINESS IN ACTION @ FMM IS PUBLISHED BY Federation of Malaysian Manufacturers (7907-X) Wisma FMM No 3, Persiaran Dagang, PJU 9 Bandar Sri Damansara 52200 Kuala Lumpur Tel: +603-62867200 Fax: +603-62741266/7288 Email: [email protected] FMM Branches/Representative Office Kedah/Perlis, Penang, Perak, Selangor, Negeri Sembilan, Melaka, Johor, Pahang, Sabah and Sarawak All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and recording without the written permission of the publisher. Opinions expressed or implied in Business In Action @ FMM are solely those of the writer/s and are not necessarily endorsed by the publisher. 002•GloryPage.indd 2 12/4/19 10:58 AM MESSAGE FROM THE PRESIDENT 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. Malaysians 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 003•President'sMessage.indd 3 12/4/19 10:58 AM COVER STORY Finance Minister, YB Tuan Lim Guan Eng 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 4 BIA @ FMM n OCT - DEC 2019 004,006-008•CoverStory.indd 4 12/4/19 10:57 AM 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.
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