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FEDERATION OF MALAYSIAN MANUFACTURERS JAN – MAR 2016 | VOL: 1 /2016 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376) 04 COVER 06 FEATURE 12 NEWS STORY HIGHLIGHTS FMM Annual Dinner 2015 FMM 47th Annual ASEAN Responsible General Meeting Business Forum EDITORIAL CONTENT Advisor Dr Yeoh Oon Tean COVER STORY Chief Executive Officer Editorial Team FMM Annual Dinner 2015 Madeline Loh 04 General Manager (Trade) Ng Lee Lee Senior Manager International Business Division Florance S. Gabriel Assistant Manager Communications and Publications Unit Advertisements Kenny Lee Sales Manager Marketing Unit Tel: 012-383 3857 Published By Federation of Malaysian Manufacturers (7907–X) Wisma FMM NEWS HIGHLIGHTS No. 3, Persiaran Dagang, PJU 9 Bandar Sri Damansara FMM 47th Annual General Meeting 52200 Kuala Lumpur 06 Tel: 03-62867200 Fax: 03-62741266/7288 Email: [email protected] Website: www.fmm.org.my Line-Up of FMM Council for 2015/2016 Printed By 07 Percetakan Okid Sdn Bhd No. 2, Jalan SS13/3C Subang Jaya Industrial Estate 47500 Subang Jaya, Selangor Excellence Award Winners – 08 Gold Recipients for Large Companies FEDERATION OF M ALAYS IAN M ANUFACTURERS © Copyright Reserved How to Get the Most FMM has eight branches and two representative 10 Out of Google offices located in Kedah, Penang, Perak, Selangor, Negeri Sembilan, Malacca, Johor, Pahang, Sabah and Sarawak. Kaohsiung Food Show 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 2016 FMM Logistics Conference on Future of Manufacturing – 11 Policies and Rules: Updates 16 Making Things in a and Impact on Manufacturers Changing World and Service Providers Jobstreet.com and Kelly UPDATES Services Recruitment, Interview and Selection New Incentive for SMEs 18 to Obtain HACCP Certification ASEAN Responsible Biocidal Product Regulation 12 Business Forum 19 of the EU Thailand Convention and ISSUES TAKEN UP BY FMM 14 Exhibition Bureau Workshop Malaysia’s Participation in 20 the Trans-Pacific Partnership Agreement is in the Nation’s Interest Manufacturers Call for Adequate Consultation and a Gradual Increase in Foreign Worker Levy FMM IN THE NEWS ICC World Chambers Federation General Penang Council Meeting 23 Perak Kedah/Perlis Automation Technology Day Johor 15 for Students Selangor Negeri Sembilan Export Seminar on uCustoms and Other Regulatory Updates Malacca Sabah Eastern Sarawak JAN – MAR 2016 | BIA@FMM | 3 NEWSCOVER HIGHLIGHTS STORY FMM Annual Dinner 2015 YB Dato’ Seri Ong Ka Chuan, Minister of International Trade and Industry II delivering the Keynote Address Winners of the Excellence Award 2015 posing for a group photograph during the dinner FMM’s 47th Annual Dinner on our heritage. Our history shows that our or operations and to conduct training. December 1, 2015 was attended by economic growth depends heavily These companies have reported more than 1,000 members, their on trade. Therefore, we need to significant outcomes from adopting associates and business leaders with constantly seek new market access Lean, including increase in overall YB Dato’ Seri Ong Ka Chuan, Minister through Free Trade Agreements (FTA) equipment efficiency achievements, of International Trade and Industry II for our goods and services as well as reduction in manpower, waste and as the Guest of Honour. investments. In this context, our downtime, increase in productivity recently concluded negotiations on and better utilisation of floor space. The dinner was attended by some the Trans-Pacific Partnership Agreement distinguished guests including Tan Sri are very much aligned with our history. The companies who received Mohd Sidek Hj Hassan, Chairman of And so are our negotiations on the the certificates were Agricultural Petronas, Dato’ Wan Mohammad Khair- Regional Comprehensive Economic Chemicals (M) Sdn Bhd, Auto Global il Anuar Wan Ahmad, Chairman of Partnership trade deal, which is Parts Industries Sdn Bhd, B.I. Technologies Malaysia Palm Oil Board, Dato’ Mohd scheduled to be completed by 2016. Corporation Sdn Bhd, Elite Stationery Razali bin Hussain, Director General of YB Dato’ Seri urged Malaysian companies (M) Sdn Bhd, Filtermation (Mfg) Sdn Bhd, Malaysia Productivity Corporation and to strongly leverage on the preferential Medical-Latex (Dua) Sdn Bhd, VSP Datuk N Rajendran, Deputy Chief tariffs and benefits provided in these Technology (M) Sdn Bhd and Yeong Executive Officer, Manufacturing and FTA to gain access into new markets. Chaur Shing Paper Mill Sdn Bhd. Services Development II of Malaysian Investment Development Authority. During the dinner, certificates were The highlight of the dinner was the presented to participating companies FMM Excellence Award. The Award, In his speech, YB Dato’ Seri Ong Ka in the FMM – Malaysia Productivity introduced in 2010, recognises businesses Chuan said the manufacturing sector is Corporation (MPC) Lean System for their outstanding achievement and a key pillar of Malaysia’s economy as it Development Programme. This excellence in manufacturing, process employs 18% of the workforce and programme is a joint initiative of improvements and corporate growth. contributed 23% or RM243.9 billion to FMM and MPC to assist FMM members GDP in 2015. He also commended FMM to reduce waste, improve work flows The winners were: on its support and commitment which and productivity, inculcate better Besi Apac Sdn Bhd has been instrumental in developing teamwork, reduce overall operating Gold Recipient for Large Companies the manufacturing sector in terms of costs and improve customer satisfaction. providing input, technical advice and O.Y.L. Manufacturing Company active collaboration since its inception Ten FMM members participated in the Sdn Bhd in 1968. pilot project which was launched in Gold Recipient for Large Companies November 2014. During the project, YB Dato’ Seri further added that lean consultants were assigned to Leader Universal Aluminium Malaysia is a trading nation and our conduct health checks, propose Sdn Bhd prowess in trade is very much part of changes to improve the work processes Gold Recipient for SMIs 4 | BIA@FMM | JAN – MAR 2016 All Cosmos Industries Sdn Bhd Silver Recipient for Large Companies Master-Pack Sdn Bhd Silver Recipient for SMIs Besi Apac Sdn Bhd is a subsidiary of BE Semiconductor Industries (Netherlands) and is one of the largest production facilities within the Besi Group. The Company produces precision equipment for the semi-conductor industry. O.Y.L. Manufacturing Company Sdn Bhd is a member of the Daikin Industries Ltd, Japan. The Company FMM Council members and guests with Tan Sri Mohd Sidek Hj Hassan, is engaged in the manufacture Chairman of Petronas (3rd from left) before the dinner of heating, ventilation and air conditioning systems. Products are sold under the brand names Daikin, Acson and Mcquay. All Cosmos Industries is a leading manufacturer of bio-organic and bio-chemical fertilisers with 80% of its products sold to corporate customers. It is one of the world’s largest producers and sellers of 3-in-1 bio-chemical fertilisers. A manufacturer of corrugated paper boards and carton boxes set up in 1989, Master-Pack Sdn Bhd Group photograph of the recipients of the FMM-MPC Lean System Development Programme certificates, together with FMM Council Member, Datuk Dr Wan Mohamed bin Wan Embong, FMM has made a name for itself as an President, Datuk Seri Saw Choo Boon, Minister of International Trade and Industry II, YB Dato’ Seri Ong innovative niche market player in Ka Chuan and Director General of Malaysia Productivity Corporation, Dato’ Mohd Razali bin Hussain the packaging industry. Leader Universal Aluminium is a 100% Malaysian-owned company and is the largest aluminium electrical conductor and alloy rod producer in Malaysia and Southeast Asia. The company had its very first electrical conductor aluminium and ally rod cast in 1978. All five winners received their awards from YB Dato’ Seri Ong Ka Chuan. Guests having a light moment before the dinner JAN – MAR 2016 | BIA@FMM | 5 NEWSFEATURE HIGHLIGHTS FMM 47th Annual General Meeting The 47th Annual General Meeting held on December 1, 2015 in progress FMM held its 47th Annual General of new policies, procedures and In conclusion, members were called Meeting (AGM) on December 1, 2015, processes in HR management, in upon to step up productivity, upgrade at Wisma FMM, Bandar Sri Damansara, particular permit renewals of and automate their manufacturing Kuala Lumpur. foreign workers and the proposed processes and to remain lean and implementation of the Employment competitive in responding to the In his address, FMM President Datuk Insurance Scheme. challenges that are before them. Seri’ Saw Choo Boon highlighted that the manufacturing sector grew In terms of costs, FMM called for greater The report of the Council and at a higher rate of 6.3% in 2014 transparency in energy pricing and Statement of Accounts for financial underpinned by the stronger expediting the tariff rebalancing year ended June 30, 2015 were performance of export-oriented exercise, rising service and logistics unanimously approved and adopted by industries. Exports of manufactured costs and the timing of increase in the members present. At the meeting, goods expanded at a higher 7.1% minimum wage. FMM also assisted with Tan Sri Dato’ Soong Siew Hoong and in 2014. The first half of 2015 saw a the deferment of increases in logistics Dato’ Haji Mizanur Rahman Ghani were decline in both manufacturing sector charges, water tariffs and assessments re-elected to the Council under Section growth to 4.8% and manufactured at the state level. 129(6) of the Companies Act 1965. exports to 1.2%. 13 council members were elected/ In representing members’ interests, re-elected into the FMM Council. Under the year of review, FMM FMM also provided free advisory engaged the authorities on various services to members on GST and At a council meeting following the issues of concern to members customs-related matters, HR/IR, AGM, Datuk Seri Saw Choo Boon was especially in complying with new trade and investment, licensing, re-elected as FMM President while legislation and regulations.