FEDERATION OF MALAYSIAN MANUFACTURERS

JAN – MAR 2018 VOL: 1/2018 www.fmm.org.my KDN NO.PP 16730/08/2012 (030376) @FMM

04 COVER STORY FMM Annual Dinner 2017

FEATURE 1968 12 2018 Years & Beyond FMM – MIER Business Conditions Survey SME NEWS 18 YOUR VOICE YOUR PARTNER FMM SME Conference 2017

EDITORIAL CONTENT

Advisor Dr Yeoh Oon Tean COVER STORY Chief Executive Officer FMM Annual Dinner 2017 Editorial Team 04 Kenny Lee Manager Membership Division Natalie Ng SPECIAL FEATURE Senior Executive Membership Division FMM 49th Annual General Meeting Advertisements 06 Kenny Lee Manager Membership Division Tel: 03-62867200 Email: [email protected] 07 Dato’ Soh Thian Lai Elected as FMM President Published By Federation of Malaysian Manufacturers (7907–X) Wisma FMM No. 3, Persiaran Dagang, PJU 9 Line-up of FMM Council for 2017/2018 Bandar Sri Damansara 08 52200 Kuala Lumpur Tel: 03-62867200 Fax: 03-62741266/7288 Email: [email protected] Website: www.fmm.org.my FMM Council Swearing-in Ceremony, Printed By 10 Dinner and Media Night Percetakan Okid Sdn Bhd No. 2, Jalan SS13/3C Subang Jaya Industrial Estate 47500 Subang Jaya,

FEDERATION OF M ALAYS IAN M ANUFACTURERS © Copyright Reserved

FMM has nine branches and one representative office located in Kedah, , , Selangor, , , Johor, , and Sabah.

Any material extracted from BUSINESS ACTION @FMM to be quoted or reprinted should contain an acknowledgement to FMM or its acknowledged sources.

2 | BIA@FMM | JAN – MAR 2018 FEATURE BRANCH NEWS

FMM – MIER Business Kedah/Perlis 12 Conditions Survey 22 Penang

FMM-MPC Briefing Perak 16 on LEAN System Development Programme Selangor

FMM LEAN Study Mission to 17 Nagoya & Tokyo, Japan

SME NEWS

FMM SME Conference 2017: 18 Developing Productive and Innovative SMEs towards Internationalisation and Industry 4.0

Negeri Sembilan

Malacca

Eastern

Johor

Sarawak HR/IR CORNER Interim Re-Employment 33 NEW MEMBERS 20 Placement Programme (IREPP) 2018

JAN – MAR 2018 | BIA@FMM | 3 COVER STORY

FMM Annual Dinner 2017

The winners and finalists of the FMM Excellence Award 2017 after receiving their certificates and trophies from YB Dato’ Sri Mustapa Mohamed

FMM’s 49th Annual Dinner on GDP. He called upon FMM members FMM Excellence November 27, 2017 saw the handover to strive for better productivity and of the FMM Presidency from Tan Sri efficiency to generate greater returns. Award 2017 Dr Lim Wee Chai to Dato’ Soh Thian Lai, Introduced in 2010, the FMM Excellence who was elected President at the In the speech, YB Dato’ Sri commended Award is in its 7th edition. The Award th Council Meeting following FMM Annual FMM for its 7 cycle of FMM Excellence recognises businesses for their General Meeting held on the same day. Award which had provided motivation outstanding achievement and YB Dato’ Sri Mustapa Mohamed, Minister and reinforced the need for the industry excellence in manufacturing, process of International Trade and Industry to continuously improve business improvements and corporate growth. witnessed the handover ceremony. processes and enhance product The Award winners were: development in order to remain Also present were more than relevant and competitive. 1,000 members, their associates, LARGE COMPANIES business leaders and distinguished In his concluding remarks, YB Dato’ Sri emphasised the importance for a closer guests including Tan Sri Amirsham Abdul Gold Recipients Aziz, Chairman of MIDA and Datuk Seri cooperation between the public and J Jayasiri, Secretary General of MITI. private sectors; to which he highlighted • Linaco Manufacturing (M) Sdn Bhd the close partnership between the • Top Glove Sdn Bhd The Minister, whose speech was delivered Government and FMM as an excellent by Datuk Seri J Jayasiri, praised FMM example of what can be achieved • Toto Sdn Bhd for its proactive role as an effective when both sectors work together. platform for sectoral consensus building Silver Recipient YB Dato’ Sri witnessed and presented and networking based on consultation • Samling Housing Products Sdn Bhd amongst its members. certificates and awards to recipients and award winners as follows: YB Dato’ Sri reiterated that in Budget SMI COMPANIES 2018, various allocations and measures to assist local manufacturers to stay FMM Membership Growth Gold Recipient competitive and resilient. Some of these incentives have been developed by the Award for Financial Year • PETZL Manufacturing Malaysia Government together with FMM and 2016/2017 Sdn Bhd related trade bodies and chambers. The Award aimed at recognising and Silver Recipient YB Dato’ Sri also highlighted the motivating FMM Branches in their • AF Manufacturing Services Sdn Bhd significant growth of the manufacturing efforts to recruit and retain members. sector which had increased by 7% to The Award for FY 2016/2017 was won register a 22.3% contribution to the by FMM Negeri Sembilan Branch.

4 | BIA@FMM | JAN – MAR 2018 Celebration activities FMM 50th Annual Dinner October 9, 2018

Product Showcase

FMM Membership Growth Award for the financial year 2016/2017 was awarded to Negeri Sembilan Branch Chairman, Steven Aroki (3rd from right)

Ice-cream booth

FMM Excellence Award winners with their respective awards

Caricaturist

Property Showcase by S P Setia Project Management Sdn Bhd Teh Tarik demonstration

JAN – MAR 2018 | BIA@FMM | 5 SPECIAL FEATURE

FMM 49th Annual General Meeting

weak global demand, subdued offices, regional committees and consumer sentiments and a weaker industry groups. FMM monitored ringgit. GDP growth, however, picked industry concerns through the up to 5.7% in the first half of 2017 FMM – MIER Business Conditions Survey driven by higher export demand and and feedback from Council, Branch, stronger private sector demand. Regional and Working Committees.

During the year under review, Regular updates on new policies, FMM continued to assume a regulations, and market developments proactive role in advocating the were provided via FMM Net, interests of members and expanding publications, weekly FMM Bulletins their global reach in 2016/2017. and 348 circulars. The 48th FMM FMM effectively addressed the issues Directory of Malaysian Industries, of concern to members with the FMM website and FMM Facebook Government and through working promoted members’ products/services. with partners. FMM also undertook a number FMM also focused on addressing of CSR activities to promote Tan Sri Dr Lim Wee Chai addressing concerns of its 3000 members. sustainable development, FMM members at the FMM’s strong links with government corporate social responsibility Annual General Meeting and key appointments in key public and community development. committees including PEMUDAH, National Export Council, MIDA, In the coming year, FMM will continue to monitor the operating FMM held its 49th Annual General MATRADE, SME Corporation, EPF and environment and any upward Meeting (AGM) on November 27, 2017, SOCSO assisted in resolving key issues. pressure on costs especially at Wisma FMM, Bandar Sri Damansara, As Secretariat to the Malaysian- regulatory compliance costs. Kuala Lumpur. Singapore Business Council, APEC FMM will also continue to press for In his address, Tan Sri Dr Lim Wee Chai, Business Advisory Council, East Asia tax incentives for exports, branding, then FMM President, highlighted Business Council, ICC and MNSC, FMM innovation and R&D to assist FMM that global economic expansion also facilitated and expanded business members’ companies move up the was slower in FY 2016/17 with and trade opportunities for members. value chain. growth in GDP of 3.1% in 2016. FMM continued to provide value- In conclusion, members were The Malaysian economy registered added and consultancy services to called to embrace new technological lower growth of 4.2% in 2016 against members through its network of advancements, Industry 4.0, invest

The Annual General Meeting in session

6 | BIA@FMM | JAN – MAR 2018 Celebration activities FMM ICON Award 2018

Dato’ Soh Thian Lai Elected as FMM President

Dato’ Soh is the Group Executive of MITI, Council Member of Malaysian Deputy Chairman of YKGI Holdings Standard & Accreditation Council Berhad. Dato’ also holds the designation under Ministry of Science, Technology as Executive Chairman for Star Shine & Innovations and Council Member Industries Sdn Bhd and as Deputy of National Accreditation Council Chairman for Asteel Sdn Bhd. under the Department of Standard Malaysia, Ministry of Science, Dato’ Soh has over 30 years of Technology & Innovations. experience in the steel industry. Dato’ has been instrumental in the Before elected as FMM President, development and growth of YKGI Dato’ Soh served as Chairman of Holdings Bhd and its group of FMM Selangor Branch and companies. Dato’ is also serving as Co-Chairman of PEMUDAH Selangor. President of Malaysian Iron and Steel Industry Federation (MISIF), Dato’ Soh graduated from Tunku Vice-President of National Chamber of Abdul Rahman College with a Commerce and Industry of Malaysia Diploma in Technology (Materials Dato’ Soh Thian Lai was elected as (NCCIM), Council Member and Vice- Engineering) in 1985. He obtained FMM President at the Council meeting President of ASEAN Iron and Steel a Diploma in Management from on November 27, 2017, succeeding Council (AISC), Director of South East Malaysian Institute of Management Tan Sri Dr Lim Wee Chai. A handover Asia Iron and Steel Institute (SEAISI), (MIM) in 1991 and a Master of Business ceremony was held at FMM’s Annual Council Member of Malaysian Steel Administration from the University Dinner, witnessed by YB Dato’ Sri Council (MSC) under MITI, Founding of Bath, United Kingdom in 1994. Mustapa Mohamed, Minister of member and Director of Malaysia Steel Dato’ Soh was upgraded as a International Trade and Industry. Institute (MSI) – one of nine agencies Fellow Member of MIM in 2010.

(continued from page 6) more resources to upgrade productivity, quality and R&D, expand market access, up-skill workforce through training and invest in upgrading and automating manufacturing processes to step up competitiveness.

The report of the Council and Statement of Accounts for financial year ended June 30, 2017, were unanimously approved and adopted by the members present. 15 Council members were elected/re-elected into the FMM Council.

At the Council meeting following the AGM, Dato’ Soh Thian Lai was elected as FMM President for 2017/2018. Tan Sri Dr Lim Wee Chai took office as the Immediate Past President under Article 38. Dato’ Dr Ir Andy Seo Kian Haw, Datuk Noraini Soltan, Dato’ Nathan K Suppiah and Abdul Samad Ibrahim were th elected as Vice-Presidents for Members present at the 49 Annual General Meeting 2017/2018.

JAN – MAR 2018 | BIA@FMM | 7 SPECIAL FEATURE

Line-Up of FMM Council for 2017/2018

President Tan Sri Saw Choo Boon Datuk Wong Choon Seng Heineken Malaysia Berhad Sabaconcrete Sdn Bhd Dato’ Soh Thian Lai YKGI Holdings Berhad Dato’ Mizanur Rahman Ghani Dato’ Palaniappan Joseph Huntsman P & A Asia Sdn Bhd Satake Technologies Sdn Bhd Immediate Past President Tan Sri Dato’ Soong Siew Hoong William Tan Kejuruteraan Wang Yuen Sdn Bhd Tan Sri Dr Lim Wee Chai Sky Resources Sdn Bhd Ir Ter Leong Leng Top Glove Sdn Bhd Ng Ming Yee Kemuncak Engineering Supplies Nissha Precision Technologies Malaysia Sdn Bhd Vice-Presidents Sdn Bhd Datuk Leow Chong Howa Dato’ Dr Ir Andy K. H. Seo LB Aluminium Berhad Dato’ Goh Boon Kim Alphaprima Engineering Sdn Bhd Taik Sin Timber Industry Sdn Bhd Puan Sri Maimon Arif Patail Dato’ Nathan K Suppiah Malaysian Mosaics Sdn Bhd Gor Siew Yeng ISUS JVC Industries Sdn Bhd Toray Plastics (Malaysia) Sdn Bhd Ir A K Woo Abdul Samad Ibrahim Master Jaya Engineering Sdn Bhd Dato’ Tan Boon Pun Kulitkraf Sdn Bhd Xilouette Manufacturer Sdn Bhd Mag Ng Datuk Noraini Soltan Mega Fortris (Malaysia) Sdn Bhd Sipro (Malaysia) Sdn Bhd Branch Chairmen Dato’ Kevin Lai Tak Kuan Nagakaya Corporation Sdn Bhd Dato’ Dr Haminnuddin Abd Hamid Council Members Kedah/Perlis Branch Committee Alois Hofbauer Ideal Healthcare Sdn Bhd Dr Helena Eian Yeut Lan Nestle Manufacturing (Malaysia) Accel Graphic System Sdn Bhd Sdn Bhd Dato’ Dr Ooi Eng Hock Tan Sri Albert Cheng Yong Kim Penang Branch Committee Hiroyuki Imizu Menara Kerjaya Fasteners Sdn Bhd Antara Steel Mills Sdn Bhd Panasonic Manufacturing Malaysia Victor Hii Lu Thian Berhad Dato’ Gan Tack Kong Perak Branch Committee Asteel Sdn Bhd Davies Danavaindran Ngan Yin Food Industries Sdn Bhd Michelle Hah Mei Kian Radosh Engineering and Industrial Fire Fighter Industry Sdn Bhd Sdn Bhd Jacob Lee Chor Kok Selangor Branch Committee Asli Mechanical Sdn Bhd Steven Aroki Negeri Sembilan Branch Committee Smane (M) Sdn Bhd

Datuk Jeffery Ong Malacca Branch Committee Oriental Food Industries Sdn Bhd Capt (R) Haji Abdullah Shariff Johor Branch Committee DSN Advanced Technology (M) Sdn Bhd Azli Haji Norali Eastern Branch Committee BI Technologies Corporation Sdn Bhd Haji Othman Abdul Rani Sarawak Branch Committee CMS Cement Sdn Bhd Group photograph of the FMM Council Members for 2017/2018

8 | BIA@FMM | JAN – MAR 2018

SPECIAL FEATURE

FMM Council Swearing-in Ceremony, Dinner and Media Night

The inaugural FMM Council Swearing- in Ceremony, Dinner and Media Night was held on January 24, 2018 at Shangri-la Hotel, Kuala Lumpur.

The historic Swearing-in Ceremony of the FMM Council members was officiated and witnessed by Minister of International Trade and Industry II, YB Dato’ Seri Ong Ka Chuan. Members of the press were also present to witness the ceremony.

In the speech, YB Dato’ Seri expressed his appreciation for the FMM’s strong support and cooperation in working together with MITI in supporting the Tan Sri Dato’ Soong Siew Hoong receiving his Certificate as FMM Council Member from manufacturing sector. YB Dato’ Seri Minister of International Trade and Industry II, YB Dato’ Seri Ong Ka Chuan and was confident that with the selfless witnessed by FMM President, Dato’ Soh Thian Lai and dedicated commitments of the newly sworn-in Council members, FMM would continue to provide Ceremony was momentous and to drive the national economy the leadership to help the government important, the occasion was beyond forward into higher value-added, to prevail over economic as well ceremonial. He believed that with high-technology and knowledge- as technological challenges in the the rich diversity background of the driven growth in the Industry 4.0 era. coming years. Council members, FMM would continue its role as the voice of Malaysian Industry In his concluding remarks, he Meanwhile, FMM President, Dato’ Soh in representing the interest of its also reinforced FMM’s commitment Thian Lai in delivering his address, members. FMM would continue to work to transparency, integrity, and emphasised that while the Swearing-in together with the Government no corruption.

FMM Council Members group photographGroup with photograph Minister of of International the FMM Council Trade Members and Industry for 2016/2017 II, YB Dato’ Seri Ong Ka Chuan

10 | BIA@FMM | JAN – MAR 2018

FEATURE

FAVOURABLE BUSINESS CONDITIONS IN 2H2017 OUTLOOK FOR 1H2018 POSITIVE Issue No. 1/2018 Released on February 22, 2018

FMM – MIER Business Conditions Index Values Current Looking Forward Indicators (Compared to 6 months ago) (Next 6 months) 1H2016 2H2016 1H2017 2H2017 2H2016 1H2017 2H2017 1H2018 Business conditions 90 102 101 115 107 100 110 120 Local sales 80 87 87 1079987102110 Export sales 99 109 109 113 112 111 117 117 Production volume 93 106 105 122 114 106 117 126 Capacity utilisation 94 107 103 118 111 106 111 118 Capital investment 110 110 113 116 108 116 120 122 Number of employees 106 104 109 110 111 110 114 117 Cost of production 154 167 165 164 150 165 153 157 Results of the FMM-MIER KEY FINDINGS Business Conditions Survey for 2H2017

2H2017 showed that business ; Business conditions index surged 14 points to 115 (1H2017: 101).

conditions were favourable for the ; 42% noted increase in business activity (1H2017: 35%) Malaysian manufacturing sector in ; 35% reported higher domestic sales & 38% higher exports 2H2017 as sales, production ; Production index up 17 point & Capacity utilization index up 15 points volume, capacity utilisation and ; Capital investment stronger Î 31% (1H2017: 29%) higher investment employment picked up pace in parallel to an improving economy, 1H2018 while costs of production were ; Business conditions index rising to 120 Î 37% expecting improvements relatively stable but still high. ; Almost one third expect higher domestic sales & 39% higher exports ; 43% likely to step up production & 36% higher capacity utilisation The outlook for the sector is ; 63% expecting higher production costs positive going forward as trade ; 9 in 10 respondents likely to increase or maintain headcount growth and investment recovery, benefitting from a stronger Ringgit Local and Export Sales Sustained external demand has are expected to help spur the Increase pushed the index for current economy. For the first time since the export sales up which, at 113, inception of this survey in 2012, improved four points from UPTREND IN BUSINESS the current local sales index 1H2017, with 38% of the ACTIVITY IN 2H2017 breached the 100-point optimism respondents confirming higher sales abroad in 2H2017. The manufacturing sector was a threshold to reach 107 in 2H2017, hive of activity in 2H2017, as suggesting a stronger growth Production Volume and momentum of the domestic Capacity Utilisation Shift reflected in the latest general Higher business conditions index which economy. surged fourteen points from the Recent production and capacity previous survey to 115. An all-time high of 35% of the utilisation had grown in tandem respondents enjoyed higher with the buoyant sales. 42% of the respondents indicated domestic sales in 2H2017, while Reflecting this is the index for 28% reported lower sales, down that their business activity in current production which picked from 39% and 38% in 1H2017 and recent months had expanded, up up seventeen points from from 35% in 1H2017 and 33% in 2H2016, respectively. 1H2017 to 122, while the current 2H2016. capacity utilisation index rose fifteen points to 118 in 2H2017.

12 | BIA@FMM | JAN – MAR 2018

45% of the respondents POSITIVE OUTLOOK FOR Respondents are bracing for increased production, up from 1H2018 higher production costs soon. This 36% in 1H2017 and 37% in is shown in the index for expected 2H2016. Capacity levels were The outlook for 1H2018 is cost of production which jumped to also raised by majority (42%) of encouraging, with all forward- 157 from the prior survey’s 153. the respondents, compared to looking indicators registering 63% of the respondents are 32% and 35% in 1H2017 and improvements over those in the anticipating an increase in their 2H2016, respectively. previous survey. The biggest gains production costs in 1H2018 and are observed for business only 6% foresee otherwise. Cost of Production Stable, conditions, production volume and Capital Investment Beefs Up local sales. The expected capital investment The index for current cost of index gained two points from the production, at 164, was little The expected business conditions last survey to 122, postulating that changed from the prior survey’s index climbed to 120, with 37% capital investment will remain 165, indicating manufacturing hoping to see an improvement in sturdy in 1H2018. 88% are costs had remained relatively business conditions soon. While planning to increase or maintain stable in 2H2017. 48% believe that status quo will their capital investment. remain, 17% responded 7-in-10 of the respondents negatively. The index for expected noted an increase in their employment, at 117, also production costs, down from Domestic demand is expected to improved over the prior survey, 72% in 1H2017 and 74% in remain resilient at the outset of with 9-in-10 of the respondents 2H2016. 6% reported a 2018, as reflected in the index for likely to increase or maintain their reduction in costs, compared to expected local sales which rose to headcount in early 2018. 7% in the past two surveys. 110 in the latest survey. Almost one-third of the respondents are DEBT COLLECTION expecting an increase in local Capital investment picked up FMM had received feedback that lately. Attesting to this is the sales in 1H2018, up from 27% a survey ago. debt collections were taking longer current capital investment index than a company’s credit period which rose three points from (CP). 1H2017 to 116 in 2H2017. The expected export sales index is held steady at 117, with 39% projecting higher sales abroad in The survey found that 30-60 days 31% increased capital is the CP of most respondents, expenditure in 2H2017, up from the coming months, while another 39% responded neutrally. with a majority of 37% indicating 29% in 1H2017 and 30% in that their CP is 60 days, while that 2H2016; while more than half of of 27% is 30 days. the respondents maintained With sales expectations looking their allocations for now. up, production volume is set to pick up pace as well. The index for Those with CP 90 days totalled almost 15%, while 18% offer CPs Employment Steady expected production volume surged to 126 from the prior of 3-120 days. The current employment index survey’s 117, with 43% of the was also little changed from the respondents likely to step up Most (46%) of the respondents previous survey. With the index production in the months ahead. said that more than 50% of their registering 110 as opposed to 4-in-10 will maintain current debts were collected within their 109 in the preceding survey, it volume and 17% are expected to CP. While 17% take up to 30 infers that hiring remained fairly reduce production instead. days in excess of their CP to stable throughout 2017. collect debts, 20% take more than In line with the encouraging 30 to 60 days in excess of CP. Only a quarter of the business conditions and sales respondents had increased their outlook for 1H2018, the index for Another 10% and 5% require headcount, while most had expected capacity utilisation more than 60 to 90 days, and maintained in each period. increased to 118. 36% of the more than 90 days, in excess of respondents will likely expand their their CP, respectively. capacities in the coming months, up from the former survey’s 30%.

JAN – MAR 2018 | BIA@FMM | 13 FEATURE

SALARY INCREMENT COSTS OF RAW MATERIALS The main issue faced by respondents with their tax refunds For financial year 2017, salary According to the 1H2017 survey, was the requirement of additional increments for executives and raw materials, which constitute up documents, as claimed by a non-executives were mainly in the to 70% of production costs, had majority of almost 36%. range of 1-<5% and 5-<7%. 47% increased by 6-10%, with some as and 48% of the respondents high as 22%. 23% lamented on the lack of awarded salary increments of 1- updates on their refunds, while <5% for executives and non- It was subsequently found in the 22% had to undergo a Customs executives, respectively. latest survey that these high costs desk review/ audit and 12% faced of local raw materials were mainly difficulties contacting the Customs Pay hikes of 5-<7% for executives due to the weak Ringgit vis-à-vis Department. and non-executives were given by the USD, with almost 64% 31% and 32% of the respondents, confirming this. 2018 BUDGET INITIATIVES respectively. Cost pass through was pointed out Several incentives announced in Almost 8% increased their by 51% of the respondents, while Budget 2018 are relevant to the executive payroll by 7-<10%, and 30% and 18% attributed it to a manufacturing sector. the same rate was given by 7% of shortage/disruption in supply, and respondents to their non- fewer suppliers, respectively. Of these, most (38%) of the executives. respondents expect to benefit from The weak Ringgit was also the the accelerated capital (ACA) and The largest increment of >10% primary reason for the high costs automation equipment (AEA) was accorded by 2% of the of imported raw materials for 81% allowances @ 100% AE purchase respondents to their executives, of the respondents; while on the first RM2 million qualifying while another 2% gave their non- shortage/disruption in supply and capital for YA2018-YA2020. executives the same quantum. cost pass through, were indicated by 32% and 30% of the Export promotion programmes, 13% did not provide their respondents, respectively. especially the Market executives any increment; neither Development Grant (MDG), as did 10% for their non-executives. GST INPUT TAX REFUNDS well as the ACA on ICT equipment and software purchases from Section 67 GST Regulations 2014 Salary increments for financial YA2017 and development of year 2018 are expected to be the stipulates that input tax credit (ITC) customised software from YA2018 refunds are to be paid within same as 2017, with the projected are expected to benefit 35% and fourteen working days (WD) from rates likely to be maintained at 1- 30% of respondents, respectively. the date of filing the GST returns <5% and 5-<7%. online and 28 working days for 21% believed the ACA and AEA to manual submission. An increment of 1-<5% is being adopt Industry 4.0 technology on considered by 52% of the the first RM10 million qualifying Findings of this survey showed respondents for both their capital for YA2018-YA2020 will be that the average time taken by executives and non-executives, of benefit. most companies for a refund is 1-3 while 31% and 34% are contemplating a raise of 5-<7% for months for both online and manual 16% are looking forward to the filings. 51% of the respondents their executives and non- loan guarantee for SMEs under attested to this for online filing, and executives, respectively. the Skim Jaminan Pembiayaan 40% for manual filing. Perniagaan to automate An upgrade of 7-<10% and >10% production processes. Refund was prompt for only 8% of for all staff is also on the agenda the respondents who filed online of 7% and 1% of the respondents, 10% are also expecting to benefit taking an average time of up to 14 respectively. from the insurance credit and working days; and less than 1 credit financing facilities for SME month for the 38% who filed 8% will not be giving their exporters through the EXIM Bank. executives any increment in 2018, manually. 18% who filed online and 22% who filed manually took while 6% will not be giving any to an average of >3 months to get a their non-executives. tax refund.

14 | BIA@FMM | JAN – MAR 2018 Table 1 Micro Small Medium Large Total 2018 Budget Incentive Only 7.4% of respondents used No % No % No % No % No % is % of Incentive Concerned Autonomous Robots to perform ACA & AEA on Automation 2 1.3 40 25.3 36 22.8 80 50.6 158 complex tasks, to interact with one ACA & AEA on Industry 4.0 1 1.1 23 26.1 20 22.7 44 50.0 88 another and to work safely and ACA on ICT Equipment 2 1.6 35 27.8 28 22.2 61 48.4 126 learn with humans. 7.1% said they Export Promotion include MDG 5 3.4 54 37.0 36 24.7 51 34.9 146 were using Additive Manufacturing Insurance Credit & Credit 3 7.1 18 42.9 10 23.8 11 26.2 42 technologies to build physical 3D Refinancing for SME Exporters objects through the layering of Loan Guarantee for SMEs to 4 6.0 39 58.2 15 22.4 9 13.4 67 Automate Production Processes materials such as 3D printing.

Table 2 No. of Respondents (% of total) Even lower was the use of INDUSTRY 4.0 TECHNOLOGY Using Not Using Intend to Use Unaware Augmented Reality i.e. using % is % of Total Respondents(414) No % No % No % No % computer-generated virtual reality Industrial Internet of Things 97 23.8 185 45.5 100 24.6 25 6.1 to give a live view of a real-world Cloud Computing 110 27.0 173 42.4 114 27.9 11 2.7 environment with sound, video, Simulation 68 16.7 251 61.5 58 14.2 31 7.6 graphics, haptics or GPS data. Additive Manufacturing 29 7.1 292 71.7 51 12.5 35 8.6 Only 4.2% were using it. Big Data 43 10.5 229 56.1 101 24.8 35 8.6 Cybersecurity 143 35.0 158 38.6 76 18.6 32 7.8 Although 72% of respondents are Vertical & Horizontal System Integration 68 16.7 226 55.7 75 18.5 37 9.1 currently not using Additive Augmented Reality 17 4.2 285 70.2 55 13.5 49 12.1 Manufacturing, 13% intend to use Autonomous Robots 30 7.4 270 66.7 78 19.3 27 6.7 in future. Presently 70% do not INDUSTRY 4.0 x Industrial Internet of Things, use Augmented Reality, but 14% TECHNOLOGIES with nearly 24% having will likely use later. machines fitted with sensors Most are planning to use Cloud The Boston Consulting Group has and interconnected to collect Computing (28% responses), Big identified nine pillars of and share data; technological advancement that Data (25%) and Industrial Internet of Things (25%) in the near future. underpin Industry 4.0. x Vertical and Horizontal System 13%-19% intend to use the other Respondents were asked of the Integration, used by nearly 17% technologies in future as well. status of adoption and awareness of respondents to be connected of each of these technologies. with other companies, Only 3%-12% are not aware of suppliers, vendors, customers, these technologies. Augmented Of these technologies currently in etc; use, Cybersecurity was the most Reality topping the list with 12% unaware, and Cloud Computing popular. 35% of respondents are x 3D Simulation, in use by nearly using technology to protect their the least responses (3%). 17% of respondents for product ------information systems. development and production The FMM-MIER Business Conditions Index (FMM-MIER BCI) is a collaborative effort This is followed by: processes; and between FMM and the Malaysian Institute of Economic Research (MIER). Business condition is the general state of an economy x Cloud Computing, with 27% x Big Data, i.e. advanced data affecting business viability. The FMM-MIER storing and/or accessing data analysis methods for predictive BCI uses the current level of business activity as a proxy for current business conditions, and programmes over the analytics, user behavior compared to six months ago. Internet instead of on their analytics, etc is in use by nearly Index values range from 0 to 200 points. A computer’s hard drive; 11% of respondents. value above the growth-neutral threshold level of 100 points indicates an improvement or KEY HIGHLIGHTS OF SPECIAL TOPICS positive outlook, while that below the threshold indicates a worsening or negative outlook.

; Debt Collection 46% collected more than 50% of debts within credit The FMM – MIER Business Conditions Survey period. 2H2017 received 414 responses, of which 56.2% were SMEs, with 106 and 107 ; Salary Increment 2018 increment to be mainly 1-<5% and 5-<7%, as in 2017. responses from Perak and Klang Valley respectively. The top three industries for ; High Raw Materials Cost RM vis-à-vis USD & cost pass through were main responses were: Food, Beverage & Tobacco factors. (14% of respondents); Fabricated Metal (11%) and Chemicals & Chemical Products (10%).

; GST Input Tax Refunds Most receive refunds after 1 – 3 months of filing. All rights reserved ; 2018 Budget Incentives ACA & AEA on automation, Export promotion Federation of Malaysian Manufacturers (FMM) programmes and ACA on ICT equipment were most beneficial to members. Wisma FMM, No 3 Persiaran Dagang, PJU 9 Bandar Sri Damansara, 52200 Kuala Lumpur Tel: 603-62867200 Fax: 603-62741266 ; Industry 4.0 Technologies Cybersecurity, Cloud Computing & Industrial Website: www.fmm.org.my Internet of Things were the top 3 technologies already in use. Enquiries: [email protected]

JAN – MAR 2018 | BIA@FMM | 15 FEATURE

FMM-MPC Briefing on LEAN System Development Programme

• Business Development Manager of Jemco Manufacturing Sdn Bhd, Edwin Yap highlighted that with guidance from the FMM LEAN consultant, the company was able to merge and simplify the processes of two plants into one plant. This had resulted in reduction in rental, improved space savings by 40%, improved output by 30% and optimised manpower by 40%. He also shared on the challenges The participants who attended the Seminar on LEAN Production System: faced in changing the mindset of Applications and Sharing of Experiences the staff especially those who have been working in the family business for a long time and getting them to A total of 100 participants joined the Highlights of the sharing session understand benefits of LEAN and briefing on FMM-MPC LEAN System from the companies were as follows: to accept changes to the system. Development programme on • Operations Director, Sensors • Section Manager, Production September 7, 2017. The briefing and Specialist Components of Department of Penfabric Sdn Bhd, emphasised the importance BI Technologies Corporation Sdn Bhd, Ong Seng Puay highlighted that and benefits of LEAN system in Mohd Podzi Mahmud highlighted the programme resulted in manufacturing. Chief Executive Officer that with knowledge gained from reduction of cycle time and of FMM, Dr Yeoh Oon Tean, delivered the programme, there were downtime by 35% – 43% while the remarks at the briefing session. improvements in waste reduction, productivity increased by 30% In his speech, he reiterated that cultural change and teamwork through work standardisation and LEAN tools are likely to become among staff. He also highlighted the line balancing. He also highlighted more important as manufacturers importance of the management’s the challenges faced in coping are noticeably aware of the need commitment to ensure success in with the manpower constrain to incorporate some elements of implementing LEAN system in and commitment from staff in Industry 4.0 in the current environment. the factory. implementing the LEAN system.

Testimonials of companies currently implementing LEAN System

Company Testimonials

• Agricultural Chemicals (M) Sdn Bhd Significant improvements in productivity, output and elimination of wastage in production line which resulted in savings for the company. • Auto Global Parts Industries Sdn Bhd Achieved greater understanding on LEAN manufacturing, learned how to identify and reduce waste via LEAN tools e.g. Value Stream Mapping, SMED, Just-in-Time, and other useful LEAN tools. • Elite Stationery (M) Sdn Bhd Output increased by 30% just three months after the project was implemented. Strongly encourage companies to participate in this programme. • Filtermation (Mfg) Sdn Bhd Change in layout of factory has resulted in less movement of workers, better utilisation of floor space and equipment and quality improvementsdue to early recognition of defects. • Kulitkraf Sdn Bhd Increase in efficiency, improvement to process flow and a reduction in waste. Managed to identify non- productive activities and eliminate them. • Kurz Production (M) Sdn Bhd Achieved 50% reduction in monthly overall downtime and 68% improvements in work standardisation. • Medical-Latex (DUA) Sdn Bhd Managed to reduce manufacturing costs by 12% in three months. • MJ Manufacturing Industries Sdn Bhd Reduction in wastage, increase in output and efficiency of our equipment. • VSP Technology (M) Sdn Bhd Productivity has increased by 62%. This will immensely help the company meet future market challenges. • Yeung Chaur Shing Paper Mill Sdn Bhd Within the period of six months, there was a significant improvement in the overall equipment efficiency by 38% and increase in outputy b 37% in the areas under study.

16 | BIA@FMM | JAN – MAR 2018 Celebration activities FMM Industry 4.0 Conference October 2018 FMM LEAN Study Mission to Nagoya & Tokyo, Japan

FMM, with the support of the Malaysia • Toyota Motor Corporation – Japan’s and • KARAKURI Kaizen Fair – annual Productivity Corporation (MPC) world’s number one car manufacturer. exhibition to showcase how the organised the second annual study • OSG Corporation – a comprehensive manufacturing industry in Japan does mission on LEAN Management to cutting tool manufacturer with continuous improvement in the most Nagoya and Tokyo from September 24 – excellent factory visual management. creative way without spending money. 29, 2017. The main objectives of the Mitsubishi Electric Corporation study mission were to provide • Participants were able to learn (Nagoya Plant) – company’s principal opportunities for the participants to Kaizen concept to create a productive facility for automation equipment visit Japanese companies that excel environment for the staff, the need production, ensuring supplies of key in LEAN manufacturing and to gain to incentivise staffs to provide ideas parts to Mitsubishi Electric’s factory insights into how they remained to improve processes or reduce wastage, automation lines worldwide. competitive despite cost challenges usage of display board for production similar to that faced by Malaysia. • Daifuku – known as the world’s and Jidoka, a system that stop works largest logistics and material immediately when a problem first occurs. During the study mission, a handling equipment production site, hands-on workshop on LEAN tools with 11 factories spanning a total The study mission was claimable was conducted by two instructors with of 1.2 million square meters. 100% under the Human Resource Development Fund. over 40 years of experience from Toyota • Yazaki Kako Corporation –manufacturing Motor Corporation. The participants and machining of injection moulded, For more information on the next had the exclusive opportunity to visit plastic products and electrical appliances FMM LEAN Study Mission, please factories, some of which were generally and provides ideas on how to contact Jess Chong of the FMM closed to group visits, to learn the implement continuous improvement Secretariat at [email protected]. best practices of LEAN Manufacturing: using Karakuri/Creform System.

Group photograph of the participants of FMM LEAN Study Mission to Japan

(continued from page 16)

• LEAN Consultant of Synergy paperwork, improved work flow and from any of the participating Assimilation of Knowledge productivity, better teamwork, companies in respect of the Resources, Shaharum Ashaari and reduced overall operation costs and benefits of the LEAN Programme LEAN Consultant of LEAN Vision improved customer satisfaction. that have helped them to enhance Enterprise, Iskandar Zulkarnaen who and improve the management were appointed as consultants in The FMM-MPC LEAN System of their projects. The Secretariat the project presented the challenges Development Programme is 100% will assist to facilitate the faced by the companies and the claimable from HRDF. Members may communication between members improvements made to the contact the FMM Secretariat should and the senior representatives of production processes e.g. reduced they need to seek additional details the relevant companies.

JAN – MAR 2018 | BIA@FMM | 17 SME NEWS

FMM SME Conference 2017: Developing Productive and Innovative SMEs towards Internationalisation and Industry 4.0

FMM in collaboration with SME Corporation Malaysia (SME Corp) organised the 3rd edition of FMM SME Conference on October 31, 2017. The conference themed ‘Developing Productive and Innovative SMEs towards Internationalisation and Industry 4.0’ was graced by Minister of International Trade and Industry, YB Dato’ Sri Mustapa Mohamed at Menara MITI. The conference was attended by more than 270 participants.

The conference served as an engagement platform for SMEs to better understand the current situation of Malaysia’s economy and the SME industry. A line of eloquent From left: Cheang Chin Wooi, Executive Director of LF Beauty Thailand Ltd, Rizal Nainy, Deputy CEO of SME Corp, Tan Sri Dr Lim Wee Chai, then FMM President, Dr Viraj Perera, CEO of PlaTCOM and high profile panellists Ventures Sdn Bhd, Dato’ Dr Ir Andy Seo, FMM Vice-President during the Town Hall Session discussed and analysed in-depth on the Budget 2018 for SMEs as well as Industry 4.0.

Participants also had the opportunities to visit booths by eight solution providers that offered various products and services.

YB Dato’ Sri Mustapa Mohamed, in delivering his speech, reiterated that Government is committed to promote and accelerate the development of SMEs. A total of RM22.2 billion has been allocated for SME development to be implemented by various Ministries and Agencies. He urged SMEs to take the incentives and programmes by the Government to be readied for the fourth industrial revolution that is changing the manufacturing processes. Then FMM President, Tan Sri Dr Lim Wee Chai and Vice President, Dato’ Dr Ir Andy Seo visiting one of the booths The conference featured among others, the Chief Executive Officers from Karex Industries Sdn Bhd and SME Corp. Malaysia, Penang Skills internationalisation. The conference Pensonic Industries Sdn Bhd who Development Centre (PSDC) and also featured a Power Luncheon Talk shared their success stories of going Satake Technologies Sdn Bhd to talk by Managing Director of ABB Malaysia global and speakers from MATRADE, about capacity building and trade Sdn Bhd, Jukka Poutanen on the art Malaysia Productivity Corporation, facilitation support towards of digitalisation.

18 | BIA@FMM | JAN – MAR 2018

HR/IR CORNER

Interim Re-Employment Placement Programme (IREPP) 2018

Workers who lose their employment employment. Assistance is in both The insured person must satisfy the in year (2017) are qualified for an financial as well as non–financial forms. above conditions in order to claim interim benefit in the form of a cash The assistance, under the EISA 2017 is the interim payment of RM600 for allowance of RM600 per month for a only available to employees who lose three months. The first payment of maximum of three months under the their employment in year 2019 after RM600 will be paid within 14 days Interim Re-Employment Placement having paid the required number of of registration and the balance will Programme (IREPP) 2018. According contribution in 2018. be paid within 30 days from the to the Social Security Organisation first payment. SOCSO can reject (Socso) about 50,000 individuals Objectives of the IREPP is to make claims or stop payment if the insured are expected to claim the benefit. interim payment to insured persons person does not fulfil the terms or The Government has allocated who have lost their jobs, assist insured conditions. Insured persons who RM122 million to Socso to implement person participate in IREPP activities are terminated after 31 st December this programme as an interim such as job carnival and raise the 2018 are not eligible to participate in measure to assist employees who employability level of workers this programme. lose their employment in year 2017. through training. The insured person must fulfil certain conditions such As an interim programme, the IREPP Under the Employment Insurance as submitting the claim within will end on 31 st December 2018 or System Act 2017(EISA 2017), which 30 days from the date of loss of when the RM122 million is depleted came into force on 1.1.2018, both employment with supporting whichever is earlier. Nevertheless employers and employees are required documents. The claimant must be insured person who lose their jobs in to contribute 2% respectively to Socso. able to work, available to work and December 2018 and have made the The main objective of the Act is to actively seeking for work and participate required contributions will be eligible assist employees who have lost their in the placeme nt programmes. to make their claim under EISA 2017.

FMM Trade Fairs and Trade Missions 2018

Trade Fairs Date Location Target Profiles

MIHAS 2018 April 4 – 7, 2018 MITEC, Kuala Lumpur Halal industry Beauty Eurasia 2018 April 12 – 14, 2018 Istanbul, Turkey Cosmetics & skincare NEPCON China April 24 – 26, 2018 Shanghai, China Automotive Chinaplas April 24 – 27, 2018 Shanghai, China Plastic & Rubber ASEANbeauty May 3 – 5, 2018 Bangkok, Thailand Cosmetics & skincare PhilBeauty May 30 – June 1, 2018 Manila, Philippines Cosmetics & skincare Professional Beauty June 4 – 5, 2018 New Delhi, India Cosmetics & skincare ASEAN Sustainable Energy Week June 6 – 9, 2018 Bangkok, Thailand Renewable Energy Propak Asia June 13 – 16, 2018 Bangkok, Thailand Packaging Manufacturing Expo June 21 – 24, 2018 Bangkok, Thailand Manufacturing Fine Food New Zealand June 24 – 26, 2018 Auckland, New Zealand Food & Beverage Food Taipei 2018 June 27 – 30, 2018 Taipei, Taiwan Food & Beverage

Trade Missions Date Location Target Profiles

LEAN Study Mission to Indonesia April 23 – 27, 2018 Jakarta, Indonesia Halal industry Trade Mission to Papua New Guinea April 28 – May 2, 2018 Port Moresby Cosmetics & skincare Papua New Guinea

For more information, please contact Joe Lee at [email protected], Leow Sze Yin at [email protected] or Koh Wee Leng at [email protected]

20 | BIA@FMM | JAN – MAR 2018

Celebration activities BRANCH NEWS Kedah/Perlis Bowling Tournament April 2018

Kedah/Perlis The Branch organised the following: • FMM Kedah/Perlis Tenpin Bowling Tournament on September 23, 2017. The networking sport event was held at Park Avenue Bowling Centre and gathered 80 participants. The bowling team from Schaefer Kalk (M) Sdn Bhd was the champion. • FMM-MODENAS OSH Day & OSH Talk: Prevention of Occupational Disease on October 3, 2017. The OSH related CSR event was jointly conducted with Modenas in DOSH Kedah OHD, Dr Ahmad Faiz giving talk at FMM-MODENAS OSH Day & OSH Talk on October 3, 2017 Gurun, Kedah. The event was launched by Assistant Director of DOSH Kedah, Basharuddin Chairman • Seminar on Duty Exemption, Abd Rahman. More than Drawback & Refund on October 25, Dato’ Dr Haminnuddin Abd Hamid 400 participants attended the 2017. The Seminar was attended Ideal Healthcare Sdn Bhd event. Talks on noise prevention, by 40 participants. Invited speakers ergonomics guidelines and from MIDA Head Office were Deputy prevention of occupational Vice-Chairmen Director Tariff Section, Siti Hajar diseases were conducted at the Ahmad Zabidi and IT Department event. Free consultation and health Tahiruddin Hamdan Silterra Malaysia Sdn Bhd officer, Mohd Muhammad Radzie inspection was offered by SOCSO, Hashim. Representing Customs Audio Lab and Pantai Hospital. Desmond Chong Department Kedah were Principal • The Branch 9th AGM was held Ryder Tech Sdn Bhd Assistant Director Aziz Yusof, on October 9, 2017. The following Assistant Director Raju A/L Office Bearers for 2017/2018 Aminnuddin Salleh Supramaniam and Assistant Director were elected: Malaysia NPK Fertiliser Sdn Bhd Muhammad Asnawi.

Seminar on Duty Exemption, Drawback & Refund on October 25, 2017

22 | BIA@FMM | JAN – MAR 2018

Celebration activities BRANCH NEWS Penang Golf Tournament July/August 2018

Penang The Branch organised the following: • FMM Penang Workshop on • FMM Penang handed over • Dialogue session with the Royal What Every HR Practitioner RM350,000.00 to State Relief Malaysian Customs Department Should Know held on October 31, Fund. FMM Penang led by (RMCD) on August 16, 2017. 2017 with eight participants. FMM Penang Branch Chairman, The Branch was represented by • FMM Penang Bowling Tournament Dato’ Dr Ooi Eng Hock, raised Branch Chairman, Dato’ Dr Ooi 2017 held on September 30, 2017 RM350,000.00 from members and Eng Hock, Vice Chairmen, Dato’ at Ole Ole SuperBowl, Mydin Mall business associates to assist the Jimmy Ong, Hun Keng Kuan, . Total of 19 teams victims of recent flood affecting See Chee Tat and branch from FMM member companies the Penang State. committee members met with participated in the tournament. • The fund was handover to the State Director of Customs Penang • FMM Penang Workshop on State Relief Fund on November 14, from Royal Malaysian Customs Road Safety for Our Valuable 2017 and witnessed by the Department (RMCD), Saidi bin Employees was held on October 11, Chief Minister of Penang, Ismail, and his team members. 2017. It was a joint collaboration YAB Lim Guan Eng. • FMM Penang HR/IR Forum & with Penang State Government Clinic Session on September 8, & PDRM Pulau Pinang. The workshop 2017 with 29 participants. was attended by 68 participants.

HR Advisor of FMM, Heng Poh Suan The presentation of mock cheque to the State Relief Fund and witnessed by conducting the HR/IR Forum & Clinic session Chief Minister of Penang, YAB Lim Guan Eng on November 14, 2017 on September 8, 2017

Group photograph with winners of the FMM Penang Bowling Tournament 2017 on September 30, 2017

24 | BIA@FMM | JAN – MAR 2018

Celebration activities BRANCH NEWS Study Visit to PSDC April 2018

Perak The Branch organised the following: • Seminar on Understanding • The Branch 49th Annual Dinner • Joint training on Fire Prevention Complexities of Witholding Tax was held on October 16, 2017 at and Fire Fighting with Bomba Obligations in Malaysia on Impiana Hotel. The dinner was Perak on September 19 – 20, 2017 September 25, 2017. Former Senior graced by Chief Minister of Perak, and October 4 – 5, 2017 at Balai Assistant Director of Inland Revenue YAB Zambry bin Abdul Kadir. Bomba Ipoh. The training was Board, Yong Mei Sim facilitated the About 70 key personnels from attended by 30 participants from seminar. The seminar was attended various government departments 16 companies. by 55 participants. and 303 members attended the dinner. • Workshop on Expand Your Market • Briefing on Endorsement of Through Digital Free Trade Zone FMM Non-Preferential Certificate • 49th Annual General Meeting (DFTZ) faciliated by Director of of Origin (NPCOs) was held on of the Branch was held on Matrade Northen Region, Sharifah September 27, 2017 facilitated by October 26, 2017 chaired by Nazreen Farhana Syed Marzuki the Branch Assistant Manager, Nicole Dato’ Gan Tack Kong. A total of and representatives from Alibaba Choe. The briefing was attended by 26 ordinary member companies on September 21, 2017 19 participants. attended the meeting. • Seminar on Industry 4.0 on November 2, 2017. The seminar was attended by 37 participants and presented by representatives from CTI Resources Sdn Bhd, Top Glove Corporation Bhd, Malaysian Investment Development Authority (MIDA), SME Corp Malaysia and Malaysian Industrial Development Finance Berhad (MIDF). • A half-day Awareness Seminar on Energy Efficiency and Solar Thermal Application in The Industrial Sector was co-organised by UNIDO and FMM on October 27, 2017 at FMM Perak. The seminar Participants at the Seminar on Understanding Complexities of Witholding Tax Obligations in Malaysia on September 25, 2017 was facilitated by National Project Manager of UNIDO Dr. Azmi Haji Idris, and Technical Adviser of UNIDO, Mohd Iskandar Bin Majidi. • Hands-on Workshop on Latest Changes to Perintah Duti Kastam (PDK) 2017 & e-PCO Online Application on November 7, 2017 was facilitated by Certified Trainer from Dagang Net, Nor Zakina and attended by eight participants. • FMM-TNB Committee Meeting held on November 8, 2017 was chaired by General Manager of TNB Perak, Abdul Jalil bin Raja Zaid and co-chaired by Director of Stoneworks Technologies Sdn Bhd, Chew Boon Kooi. This meeting discussed power interruptions faced by members and upgrading Photography session with Chief Minister of Perak, YAB Zambry bin Abdul Kadir (4th from left) systems by TNB. at FMM Perak 49th Annual Dinner on October 16, 2017

26 | BIA@FMM | JAN – MAR 2018

Celebration activities BRANCH NEWS FMM Selangor Nite’ 2018 May 10, 2018

Selangor

The Branch organised the following: Shah at the Setia City Convention May-Plastics Manufacturers Sdn Bhd, • Courtesy visit to the new Selangor Centre. 26 FMM members companies Leong Peng Kong who is also the Chief Police Officer, YDH CP Datuk participated in the expo. Chairman of FMM Selayang Regional Mazlan Mansor on September 5, • The Branch Committee attended the Committee & the Committee 2017 at Ibu Pejabat Polis Kontinjen Selangor-ASEAN Business Award 2017 member of FMM HRM Committee. Selangor, Shah Alam. Gala Dinner held on September 15, • Then FMM President, Tan Sri Dr Lim • FMM Kuala Langat Regional 2017 at Concorde Hotel Shah Alam Wee Chai’s courtesy call to the Badminton Tournament held which saw Michelle Hah, Executive Branch on November 3, 2017. Director of Fire Fighter Industry on September 10, 2017 at • The Branch 31st AGM was held on TM Sports Complex Pandamaran Sdn Bhd and Branch Vice-Chairperson November 9, 2017 and the following Klang with participation of winning the Successful Woman were elected at the first meeting of ten teams. KYB-UMW Malaysia Entrepreneur Award. the FMM Selangor Branch Committee: Sdn Bhd was the champion, with • FMM Selangor Bowling Challenge second and third placing won by 2017 held on October 7, 2017 Chairman Amkor Technology (M) Sdn Bhd at U-Bowl Centre at One Utama Jacob Lee Chor Kok and Chemi-con (M) Sdn Bhd Petaling Jaya with 35 teams. Telekom Asli Mechanical Sdn Bhd respectively. The best supportive Selangor A emerged as champion, team was from Agriasia Sdn Bhd. followed by Telekom Selangor B and Immediate Past Chairman Briefing session on the GS Paperboard & Packaging Sdn Bhd. • Dato’ Soh Thian Lai Implementation of Strategic • Courtesy visit to the President of YKGI Holding Berhad Initiatives by Pembangunan Management & Science University Sumber Manusia (PSMB), Utilising (MSU), Professor Tan Sri Dato’ Vice-Chairmen the 30% Consolidated Human Wira Dr Mohd Shukri Ab Yajid on Resources Development Fund October 24, 2017. Dato’ Nathan K Suppiah (Pool Fund) held on September 12, • FMM Hulu Langat & Kuala Langat ISUS JVC Industries Sdn Bhd 2017 with 20 participants. Regional Committees visited the Abdul Samad Ibrahim • Co-organised the Selangor Sungai Langat Water Treatment Plant Kulitkraf Sdn Berhad International Expo 2017 held from and Langat Dam on October 26, 2017 with 31 participants from 21 companies. Colonel Dato’ Goh Boon Kim September 14 – 17, 2017 at Setia Taik Sin Timber Industry Sdn Bhd City Convention Centre, Setia Alam. • Industry Sharing on Foreign Worker’s The 4-day expo was declared open Liability to Pay Income Tax held on Michelle Hah Mei Kian by Raja Muda Selangor Tengku October 26, 2017 with 64 participants Fire Fighter Industry Sdn Bhd. Amir Shah Sultan Sharafuddin Idris presented by Company Advisor of

Group photograph of FMM Selangor Branch Committee 2017/2018 & 2018/2019 on November 9, 2017

28 | BIA@FMM | JAN – MAR 2018 Celebration activities CEO Networking Hi-Tea October 2018

Negeri Sembilan

The Branch organised the following: (NSIC), MIDA, FMM and industries on • The Branch Annual Dinner was • Seminar on Food Handling and October 13, 2017. The session was held on October 25, 2017 and was the Fundamentals of HALAL on attended by 100 participants and among attended by over 350 representatives September 7, 2017 conducted the issues raised were waste collection, from public and private sector. by an associate trainer of FMM, landscape and poor road conditions at The dinner was graced by the Khairol Anuar Bin Masuan Galla Industrial Park Seremban. Menteri Besar of Negeri Sembilan, with ten participants from • Courtesy call to General Manager YAB Dato’ Seri Utama Hj Mohamad member companies. of Tenaga Nasional Berhad (TNB) bin Hasan. The highlight of the • The Branch’s CEOs Networking Negeri Sembilan, Wan Ishak Bin Soed dinner was the presentation of the Hi-Tea and business talk on on October 13, 2017. The Branch’s FMM NS S.H.E Excellence Award Economic Outlook by Executive delegation was led by its Branch and top FMM Institute contributors. Director of the Malaysian Institute Chairman, Steven Aroki. of Economic Research (MIER), Emeritus Professor Dr Zakariah Abdul Rashid on September 7, 2017 with 20 participants. • The Branch held its 18th AGM on September 14, 2017 and the following Office Bearers were elected for 2017/2018 & 2018/2019: Chairman Steven Aroki Smane (M) Sdn Bhd Vice-Chairmen Baskaran Madhavan Nair Cordage Industrial Rope Sdn Bhd Radzi Abdul Rashid Akzo Nobel Paints (M) Sdn Bhd Dorcas Teoh UB Acrylic (M) Sdn Bhd Penny Wong Group photograph of FMM Negeri Sembilan Branch Committee Members on September 14, 2017 Wtech Holdings Sdn Bhd • FMM NS OSH Conference 2017 on October 10 – 11, 2017 officiated by Negeri Sembilan State Council Member, YB Dato’ Manickam Letchuman with 35 participants. • Futsal Tournament jointly organised by Negeri Sembilan Skill Development Centre (NSSDC) and FMM NS on October 14, 2017 with 20 teams. The winners were Ceramtec Innovative Ceramic Engineering (M) Sdn Bhd, 2nd place was won by Safran Landing Systems Malaysia Sdn Bhd and 3rd place went to Kualiti Alam Sdn Bhd. • Dialogue session between Majlis Perbandaran Seremban (MPS), Winners of the FMM NS S.H.E Excellence Award 2016/2017 with Menteri Besar of Negeri Sembilan, Negeri Sembilan Investment Centre YAB Dato’ Seri Utama Hj Mohamad bin Hasan (5th from right) at the Annual Dinner on October 25, 2017

JAN – MAR 2018 | BIA@FMM | 29 Celebration activities BRANCH NEWS Eastern Branch Annual Dinner May 2018

Malacca

The Branch organised the following: Vice-Chairmen • Visit to Assembly Services Sdn Bhd rd • The Branch 43 Annual General Jimmy Ong on October 26, 2017. Participants Meeting was held on October 10, San Miguel Yamamura Woven Sdn Bhd were briefed on their human 2017. The following Office Bearers resources development programmes, Yeo Cheng Por for 2017/2018 were elected: safety practices at workplace Impressive Edge Sdn Bhd and comprehensive quality Chairman • Training on Free Trade Agreement and control methods that are inculcated Datuk Jeffery Ong Section 99, Customs Act 1967 – Another into their workforce to ensure Oriental Food Industries Sdn Bhd Way to Overcome Difficulties in the quality of their products are Obtaining MIDA Tax Exemption Under not compromised. Section 14.2 on October 16, 2017.

Participants of the visit to Assembly Services Sdn Bhd on October 26, 2017

Eastern The Branch organised the following: Vice-Chairmen • The Branch held its 23rd Annual Azli bin Haji Norali General Meeting on October 26, BI Technologies Corporation Sdn Bhd Expand Your Products to Global Markets 2017 and the following were the Ng Ghim Eng Through FMM Directory Office Bearers for 2017/2018 and Nice Rika Biotechnologies Sdn Bhd 2018/2019: of Malaysian Industries Kumar Ramu Call 03-62867200 or Chairman Huntsman Pigments and Additives Asia Sdn Bhd Visit us at www.fmm.org.my Dato’ Haji Lahuree bin Sudiran W. R. Grace Specialty Chemicals Dr Marwani Hirmi binti Muda (Malaysia) Sdn Bhd Lynas Malaysia Sdn Bhd

30 | BIA@FMM | JAN – MAR 2018 Celebration activities Blood Donation Campaign July 2018

Johor The Branch organised the following: • FMM Seminar on Understanding Consumerism of Johor, YB Datuk • On September 12, 2017, the Employee Taxation: Mitigating Tee Siew Kiong on October 11, 2017 Ambassador of the Czech Wrongful on Tax Reporting on with 42 participants. Republic, His Excellency Rudolf October 9, 2017 held at Thistle Hotel, • Business Networking Visit to Hykl, was invited to brief Johor Bahru. The seminar was Manufacturing Solutions Expo 2017 members on the investment attended by 69 participants and at Singapore EXPO on October 25, opportunities and economic facilitated by former Principal 2017. The branch delegation profile of the Czech Republic. Assistant Director of Inland Revenue was led by Branch Chairman, Board of Malaysia, Yong Mei Sim. Capt (R) Haji Abdullah Shariff • Seminar on Understanding the • The branch in collaboration with with 39 participants. The programme Technique of Classification and Johor State Investment Centre enabled members to learn on Updates on the New Customs (JSIC) organised a special Business innovative manufacturing solutions Harmonized System (HS) Codes Networking Session with Chairman and the opportunity to widen 2017 on September 13 – 14, of Tourism, Domestic Trade and business contacts. 2017. The two-day seminar was attended by 75 participants and facilitated by the Senior Officials from Royal Malaysian Customs Department (RMCD), Putrajaya. • FMM CSR visit to Pertubuhan Perkhidmatan Intervensi Awal (PPIA) Batu Pahat, Johor on September 27, 2017. PPIA is a non-profit and charitable organisation, serving children and youths with intellectual challenges in and around area of Batu Pahat. Members participated the visit contributed cash amounting RM5,080.00 and gifts-in-kind to PPIA. FMM members actively exchanged views and name card during the networking session on October 11, 2017

Group photograph of branch delegation at Manufacturing Solutions Expo 2017 on October 25, 2017

JAN – MAR 2018 | BIA@FMM | 31 Celebration activities BRANCH NEWS FMM Sarawak Run September 2018

Sarawak

The Branch organised the following: • The Branch held its Second Annual General Meeting on October 23, 2017. Members were updated on the branch activities and issues affecting members in Sarawak were discussed. • Briefing on MIDF Government Financial Assistance Programme was held on October 10, 2017. The half-day programme was facilitated by the Malaysia Industrial Development Finance Berhad (MIDF) Sarawak Assistant Vice- AGM Meeting on October 23, 2017 President, Mohd Suffian Bolhassan. • Briefing on Essentials of the Sarawak Labour Ordinance (Sarawak Cap. 76) Part 1 was held on November 15, 2017. The one-day programme was facilitated by Assistant Director of Sarawak Labour Department, Ismail Bin Mohammad. • Training on Occupational First Aid and Cardiopulmonary Resuscitation (CPR) Programme on November 11 – 12, 2017. It was attended by 26 participants and facilitated by Syamsul Kamal. Group photograph of participants of Occupational First Aid and Cardiopulmonary Resuscitation (CPR) Programme on November 11 – 12, 2017

Effective Supervisory Skills training conducted by Irene Choong on October 24 – 25, 2017

32 | BIA@FMM | JAN – MAR 2018 NEW MEMBERS

FMM welcomes 116 new members, comprising 95 Ordinary Members and 21 Affiliate Members that joined FMM from September 2017 to January 2018

Ordinary Members

• Accurativ (M) Sdn Bhd • GS Paperboard & Packaging Sdn Bhd

• Antico Stone Sdn Bhd • Hiwonder Sdn Bhd

• Arrow Components (M) Sdn Bhd • HKY Unirise Engineering Sdn Bhd

• BAFCO Asia Sdn Bhd • IRC Automation (M) Sdn Bhd

• Best Ninety Nine Enterprise • Itahome Sdn Bhd

• Bio-Nutricia Manufacturing Sdn Bhd • JL Food Industries Sdn Bhd

• Boxter Global Sdn Bhd • JT International Trading Sdn Bhd

• Bulk and Fluids Engineering Sdn Bhd • Kewcast Industries Sdn Bhd

• Century Minerals Sdn Bhd • Khai Seng Packaging Industries Sdn Bhd

• Cheung Woh Technologies (Malaysia) Sdn Bhd • KJ Can (Johore) Sdn Bhd

• Cosmo Synergy Sdn Bhd • Kossan Latex Industries (M) Sdn Bhd

• Custech Machinery Sdn Bhd • KQY Masterpiece (Malaysia) Sdn Bhd

• Delta Sama Jaya Sdn Bhd • Kueen Sing Auto (M) Sdn Bhd

• Dermypack Plastic (M) Sdn Bhd • Laird Technologies (M) Sdn Bhd

• DJ Auto Components Manufacturing Sdn Bhd • Lenhon Kilang Kopi Sdn Bhd

• Drive System Engineering Sdn Bhd • LeveragEdge Sdn Bhd

• Eco Valves & Fittings Sdn Bhd • Lubetech Sdn Bhd

• ECSpec Marketing Sdn Bhd • Mariwealth Engineering & Consultancy Sdn Bhd

• EKA Global Sdn Bhd • Mesh Hi-Tech (Malaysia) Sdn Bhd

• Elegance Global Trading Sdn Bhd • Multi Graded Industries Sdn Bhd

• Eonmetall Systems Sdn Bhd • Natural Wellness Industries Sdn Bhd

• Excelvisions Medicals Sdn Bhd • Nature Care Wholefood Sdn Bhd

• Fajar Cables Sdn Bhd • Netpoint Coating Sdn Bhd

• Federal Furniture (1982) Sdn Bhd • Nichias FGS Sdn Bhd

• FEPA Sdn Bhd • Nissho Precision (Malaysia) Sdn Bhd

• Flytech Engineering Sdn Bhd • Norwards Industries Sdn Bhd

• Great Eco Glove Sdn Bhd • OE Unity Sdn Bhd

• Green Panel Products (M) Sdn Bhd • Pacifica Power Sdn Bhd

JAN – MAR 2018 | BIA@FMM | 33 NEW MEMBERS

Ordinary Members (continued)

• Pak Keong Food Industries Sdn Bhd • Sleep Factory Sdn Bhd

• Panwater Engineering Sdn Bhd • Spurs Industries (M) Sdn Bhd

• Papparoti (M) Sdn Bhd • Sumbertech Ventures Sdn Bhd

• Perak River Sand Sdn Bhd • Superbest Power Health Food & Beverages Sdn Bhd

• Platinium Marine Products Sdn Bhd • SWJ Air-Con Sdn Bhd • Plaxtron Industrial (M) Sdn Bhd • Taiko Clay Marketing Sdn Bhd • Poly-Max Sdn Bhd • Tamasek Group Sdn Bhd • Polyscientific Enterprise Sdn Bhd • Tera Va Sdn Bhd • Posco-Malaysia Sdn Bhd • Tohken (M) Sdn Bhd • Power Steel and Electro-Plating Works Sdn Bhd • Twinkle Sweet Foodstuff Industries Sdn Bhd • PTS Industries Sdn Bhd • Upper Odyssey Technology Sdn Bhd • QPP Ear Piercing Sdn Bhd • Uropolymers (Malaysia) Sdn Bhd • Quality Coils Industries Sdn Bhd • Waterotec (M) Sdn Bhd • Rensoon Sdn Bhd • Watterson Technology Sdn Bhd • Rovski Sdn Bhd • Webbing MK Sdn Bhd • Sandisk Storage Malaysia Sdn Bhd • Windmill Food Industries Sdn Bhd • Sanrix Paper Sdn Bhd Y.S.P. Industries (M) Sdn Bhd • Schmaco Auto Parts Industries Sdn Bhd •

• Seownox Sdn Bhd • Yong Mei Foodstuffs Manufacturing (M) Sdn Bhd

• Sing Lian Heng Fishery • Zantat Sdn Bhd

Affiliate Members

• Advantage Marine Services (Malaysia) Sdn Bhd • Identi3 (M) Sdn Bhd

• Archi Panel Sdn Bhd • KMSA Trading Sdn Bhd

• Chan Soon Transport & Trading Sdn Bhd • MGS Shipping & Fowarding Sdn Bhd

• CRRC Kuala Lumpur Maintenance Sdn Bhd • MHE-Demag Logistics Malaysia Sdn Bhd

• ECnet (M) Sdn Bhd • Nora S W Lam & Associates Elledi (M) Sdn Bhd • • Sage Software Sdn Bhd • Encompass Industries Sdn Bhd • Solar Sunyield Sdn Bhd • FCA Services Support Malaysia Sdn Bhd • Vanqo Sdn Bhd • Forefront Logistics Sdn Bhd • YNY Technology Sdn Bhd • Home Retreat Sdn Bhd • Zenxin Agri-Organic Food Sdn Bhd • Icon Trans Sdn Bhd

34 | BIA@FMM | JAN – MAR 2018