Jul/Aug 2014 Business VOL 4/2014 in Action @FMMwww.fmm.org.my KDN NO: PP 16730/08/2012 (030376) MANUFACTURING EXPO 2014, FOOD TAIPEI 2014 TIGHTER SMOKE EMISSION BANGKOK, THAILAND STANDARDS FOR DIESEL VEHICLES ENTERING SINGAPORE Celebrating 46 years of Manufacturing Excellence FMM 46th Annual Dinner Join us for the FMM 46th Annual Dinner – the manufacturing industry’s most prestigious and powerful gathering of industry captains and top policymakers! Enjoy face-to-face networking with 1000+ senior industry leaders and top policymakers and forge new and useful relationships in a prestigious, celebratory and relaxed setting. Who Will Attend Senior government officials, top policymakers, Table prices foreign dignitaries, MDs, presidents, senior start at vice presidents and other senior leaders from the RM3,500 industry and government. Sponsorship When packages Thursday, November 27, 2014 start at Where RM5,000. Imperial Ballroom, One World Hotel, Petaling Jaya *Early Bird Privileges:- Free product display at mini product showcase area Free full-page colour advertisement in souvenir booklet *Limited to Premier tables on first-come-first serve basis For further information and clarification, please contact FMM Secretariat at tel: 03-6286 7200 Ms Cenica Low, ext 327 ([email protected]) Mr Kenny Lee, ext 376 ([email protected]) http://is.gd/annualdinner2014 CONTENTS COVER STORY Facilitating Industries’ Transition to Higher Energy Cost Environment page 3 NEWS HIGHLIGHTS 14 24 05 TIGHTER SMOKE EMISSION KEDAH/PERLIS STANDARDS FOR DIESEL VEHICLES MANUFACTURING EXPO 2014 ENTERING SINGAPORE BANGKOK, THAILAND 26 JOHOR 06 16 EVENTS IN PICTURES FOOD TAIPEI 2014 28 SARAWAK 08 BRANCH EVENTS EASTERN FMM – MIER BUSINESS 18 CONDITIONS SURVEY PENANG 30 10 MALACCA 20 MEMBERS GETTING READY FOR GST SELANGOR SMIDEX 2014 22 UPDATES PERAK 12 NEGERI SEMBILAN INVESTMENT OPPORTUNITIES IN PERU Editorial PUBLISHED BY Federation of Malaysian Manufacturers F A F EDER TION O ADVISOR (7907–X) MALAYSIAN MANUFACTURERS Dr Yeoh Oon Tean Wisma FMM © Copyright Reserved Chief Executive Officer No 3, Persiaran Dagang PJU 9, Bandar Sri Damansara FMM has eight branches and EDITORIAL TEAM 52200 Kuala Lumpur Madeline Loh, General Manager (Trade) two representative offices located in Tel: 03-62867200 Kedah, Penang, Perak, Selangor, Ng Lee Lee, Senior Manager Fax: 03-62741266/7288 Negeri Sembilan, Malacca, Johor, International Business Division Email: [email protected] Eastern, Sabah and Sarawak. Florance S Gabriel, Assistant Manager Website: www.fmm.org.my Any material extracted from Communications and Publications Unit Business in Action @ FMM to be PRINTED BY quoted or reprinted should contain ADVERTISEMENTS Percetakan Okid Sdn Bhd an acknowledgement to FMM or its Kenny Lee, Sales Manager No. 2, Jalan SS13/3C acknowledged sources. Marketing Unit Subang Jaya Industrial Estate (+6012-383 3857) 47500 Subang Jaya, Selangor 02 BIA@FMM | Jul – Aug 2014 COVER STORY FACILITATING INDUSTRIES’ TRANSITION TO HIGHER ENERGY COST ENVIRONMENT he industrial sector is responsible for a significant share of global energy use and carbon dioxide (CO2) Temission. “Energy efficiency is the most cost-effective and most readily-accessible energy saving option for the industrial sector worldwide,” said Dato’ Zohari bin Haji Akob, Deputy Secretary General, Ministry of Energy, Green Technology and Water (KeTTHA) at the FMM Conference on Energy Efficiency and Conservation – Realising Industrial EE in Higher Cost Environment on June 19, 2014. KeTTHA emphasised that the cost of electricity around In enhancing the impact of energy efficiency efforts, the world, including Malaysia, has been rising steadily KeTTHA is finalising a National Energy Efficiency over the past few years. This could be attributed to Action Plan as a catalyst for the efficient use of changing global fuel prices, growing demand for energy. The plan would identify programmes electricity in line with the economy’s positive growth and strategies for the industrial sector, building, trajectory, and a whole new set of challenges commercial and domestic consumers. Savings in faced by utility companies in meeting demands. energy consumption are projected to be up to The electricity utility industry is one of the most 50,000 GWh over a ten-year period. Carbon capital-intensive industries. Capital cost to improve dioxide emissions are expected to be reduced the grid is one of the factors considered in by 38 million tonnes over the same period. determining electricity prices. The Energy Commission, MIDA and GreenTech In addition, about 94 percent of capacity is driven Malaysia addressed questions on compliance to by fossil fuels, i.e. gas and coal for power generation. appoint energy managers under the Efficient Furthermore, under the energy subsidy rationalisation Management of Electrical Energy Regulations 2008 programme, electricity prices would begin to reflect and applications for incentive for energy efficiency true cost and gradually move to market prices. projects. Other issues discussed include the These factors combined, contribute to rising fuel procedures and threshold limit for Green Technology prices for electricity generation. These factors are Financing Scheme. also strong reasons to implement energy efficiency initiatives. Nevertheless, the Government is Participants of the conference were also exposed to committed to ensure that only efficient cost is various opportunities for energy savings by speakers passed through to the customers. from the UNIDO Industrial Energy Efficiency in (continue on pg 04) Jul – Aug 2014 | BIA@FMM 03 COVER STORY (continued from pg 03) Malaysian Manufacturing Sector (IEEMMS) Programme, FMM Malaysia Insulation Manufacturers Group (MIMG), Kluber Lubrication, Nitto Optotronics Sdn Bhd and Gas Malaysia Berhad (GMB). UNIDO IEEMMS shared success stories of companies which have implemented energy management and system optimisation programmes. FMM-MIMG demonstrated the reduction in indoor temperature of between 3° Celsius to 5° Celsius with roof insulation. Kluber demonstrated energy savings simply by using the correct lubricants to reduce significant economic losses due to friction and wear. Nitto Optotronics introduced its far infrared technology which regulates magnetic wave in AC circuits, compensating for energy normally lost in AC systems without dropping voltage. GMB offered its energy service business model in which Gas Malaysia Energy Advance Sdn Bhd would bear the installation investment and work cost for combined heat and power system with a contract term of 15 years. The conference was awarded Council member Chan Cheu Leong (right) presenting a 4 CPD hours by the Energy Commission. token of appreciation to Dato’ Zohari Haji Akob FMM GST Consultancy Services Timely Preparations to comply with the Goods and Services Tax 2015 Services Offered • The FMM Consultancy services Assist in analysing transactions will assist companies to comply with to understand how GST will affect the bottom line, GST at competitive rates working capital, supply chain, long-term contracts and new investments. Fees About Our Consultants • Provide practical solutions on YYC Group implementation, compliance First Consultation Session (1 Hour) is FREE! This firm has over 39 years of experience and enforcement with respect in offering a full range of professional to the following: Registration, services including GST consultancy services. Types of Fees for Fees for Fee Comparison Returns, Filing for GST, Capital Their clients include publicily listed Fees (RM) Members Non-Members with Other Group Adjustment and etc. Tax Consultants companies, foreign businesses and local • SMEs. Its GST experts were trained by the Provide a choice of available Royal Malaysian Customs Department accounting systems to capture Hourly Rates 550 per hour 800 per hour 850 – 1,000 (RMCD) and passed the examination for data required for GST filing. per hour the GST Consultants organised by RMCD and Malaysian Institute of Accountant • Advise on treatment of Daily Rates 3,600 per day 7,000 per day 7,500 – 10,000 transitional issues from sales per day (M.I.A.). They have over 25 consultants who will be providing the consultancy services and service tax regime (SST) Project Basis 250 per 550 per 1,000 per on GST. to the implementation of man hours man hours man hours Malaysian GST. (minimum (RM250 x 8 (RM550 x 8 (RM1,000 x 8 hours Dossnet Consulting Sdn Bhd • Identify subsidy schemes/tax 5 days) hours x 5 days hours x 5 days hours x 5 days This tax consultant has over 12 years of relief (if applicable) to industry. = RM10,000) = 22,000) RM40,000) experience in providing tax advisory services namely on Customs taxes and duties and more recently on the GST. To date, Dossnet has organised over Federation of Malaysian Manufacturers 200 seminars and provided consultancy (7907–X) services to over 1,000 corporate clients on Contact Details GST and other Customs related matters. Ms Cenica Low | Ms Shamini Sakthinathan They have five consultants who will provide Tel: 03-62867200 | Fax: 03-62741266 | Email: [email protected] | [email protected] the consultancy services on GST. 04 BIA@FMM | Jul – Aug 2014 NEWS HIGHLIGHTS MANUFACTURING EXPO 2014 BANGKOK, THAILAND FMM led a delegation of 12 discerning business owners to visit the Manufacturing Expo held from June 19 – 21, 2014 in Bangkok, Thailand. It was an eventful four-day visit for over 50,500 industrialists at the expo as they interacted, exchanged contacts and kept updated on the latest machinery,