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FEDERATION OF MALAYSIAN MANUFACTURERS JUL – SEP 2016 | VOL: 3 /2016 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376) 04 COVER STORY 08 FEATURE 16 UPDATES FMM Industrial Waste Implementation of Enhancing Electricity Management Conference the Customs Safety, Governance, 2016 Demerit System Compliance and Enforcement EDITORIAL CONTENT Advisor Dr Yeoh Oon Tean COVER STORY Chief Executive Officer Editorial Team FMM Industrial Waste Madeline Loh 04 Management Conference 2016: General Manager (Trade) Legislative Updates and Managing the Ng Lee Lee Volume and Cost of Industrial Waste Senior Manager International Business Division Florance S. Gabriel Assistant Manager FEATURE Communications and Publications Unit Advertisements Round Table Dialogue on Driving the 06 Digital Revolution in Malaysia – Kenny Lee Sales Manager Immense Opportunities Abound Marketing Unit Tel: 012-383 3857 Published By Implementation of the Customs 08 Demerit System Federation of Malaysian Manufacturers (7907–X) Wisma FMM No. 3, Persiaran Dagang, PJU 9 Bandar Sri Damansara 52200 Kuala Lumpur Review of Natural Gas Price in Tel: 03-62867200 10 Peninsular Malaysia Fax: 03-62741266/7288 Email: [email protected] Website: www.fmm.org.my FMM MAFMAG Seminar – Nutrition Printed By Promotion and Food Legislation Updates by Minisry of Health Percetakan Okid Sdn Bhd No. 2, Jalan SS13/3C Subang Jaya Industrial Estate 47500 Subang Jaya, Selangor UPDATES FMM Strongly Objects to FEDERATION OF 12 New Mechanisms to Curb M ALAYS IAN M ANUFACTURERS GST-related Profiteering © Copyright Reserved FMM has eight branches and two representative Ramping Productivity with LEAN offices located in Kedah, Penang, Perak, Selangor, 13 Negeri Sembilan, Malacca, Johor, Pahang, Sabah and Sarawak. 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 | JUL – SEP 2016 Updates on Implementation Trade and Investment Mission 14 of Verified Gross Mass 19 to Cambodia FMM Business Best Practices Factory Visit to Perfect Food Seminar on E-Commerce Manufacturing (M) Sdn Bhd Enhancing Electricity Safety, SME NEWS 16 Governance, Compliance and Enforcement Pocket Talk on Initiatives 20 for SMEs Visit to SME Corporation Malaysia FMM IN THE NEWS 22 Kedah/Perlis Sarawak Penang Perak 18 FMM ICT Conference 2016 Selangor Negeri Sembilan Malacca Johor Sabah Eastern JUL – SEP 2016 | BIA@FMM | 3 NEWSCOVER HIGHLIGHTS STORY FMM Industrial Waste Management Conference 2016: Legislative Updates and Managing the Volume and Cost of Industrial Waste Industrial waste management is one of management and ISO 14001:2015. Presentations on best practices and the key problems faced by manufacturers Norhazni Mat Sari, Director of technologies for reducing carbon due to the ever increasing volume and DOE Negeri Sembilan presented footprint, scheduled waste and industrial complexity of discarded waste. the latest legislative requirement, effluent were made by speakers from Companies are aware of the need to i.e. Environmental Mainstreaming Malaysian Palm Oil Board, PETRONAS establish better practices and safer Tools which refers to the infusion Chemicals LDPE Sdn Bhd and Sage solutions for waste disposal. This requires (embracing) of the environmental Promaster Sdn Bhd. Participants further investigation into disposal agenda at all levels of the of the conference were updated on methods and recycling as well as new organisational structure in the the key financing schemes to support technologies to monitor landfills and regulated sectors. A few participants industrial waste management projects reduce volume of industrial waste. raised concerns on its implementation provided by the Malaysian Investment To update manufacturers and service and on working cohesively with Development Authority, Malaysian Green providers on legislative requirements DOE to resolve environmental issues Technology Corporation and Malaysia and to address key concerns on at the company level. Debt Ventures Bhd. industrial waste, FMM organised the 3rd FMM Industrial Waste Management Conference on April 21, 2016. The conference was attended by more than 200 participants comprising CEOs, Managing Directors, Environmental/ Safety/Factory/Plant and Production Managers and Executives. Environmental officers and engineers were awarded with three and five CPD hours respectively by the Environment Institute of Malaysia (EiMAS) of Department of Environment (DOE) and Board of Engineers Malaysia. Speakers from the DOE and Standards From left: Ir. AK Woo, FMM Council Member, Norhazni Mat Sari Director of DOE Negeri Sembilan, Malaysia provided updates on the Dato’ Haji Mizanur Rahman Ghani, FMM Council Member and Chairman of FMM Environmental legislative requirements of waste Management Committee and Dr. Norlinda Mohd Zawawi, Assessor for EMS, QMS & OSHMS of Department of Standards Malaysia, Ministry of Science, Technology and Innovation A participant seeking more information on best practices in Petronas Chemicals LDPE during the Question & Answer session 4 | BIA@FMM | JUL – SEP 2016 Celebrating 48 years of Manufacturing Excellence FMM 48th Annual Dinner Join us for the FMM 48th Annual Dinner – the manufacturing industry’s most prestigious and powerful gathering of industry captains and top policymakers! Enjoy face-to-face networking with over 1000 senior industry leaders and top policymakers and forge new and useful relationships in a prestigious, celebratory and relaxed setting. Who Will Attend Table Prices start at Senior government officials, top policymakers, foreign RM3,498 (inclusive of 6% GST) dignitaries, MDs, presidents, senior vice presidents and other senior leaders from the industry and government. Sponsorship packages start at RM5,300 (inclusive of 6% GST) Date/Venue Thursday, December 1, 2016 Early Bird Privileges:- The Majestic Hotel Kuala Lumpur • Free product display at mini product showcase area For further information and enquiries, please contact • Free full-page colour FMM Secretariat at Tel: 03-6286 7200 advertisement in souvenir booklet Ms Cenica Low, ext 327 ([email protected]) * Limited to Premier tables Mr Albert Ang ext 217 ([email protected]) on first-come-first serve basis http://is.gd/fmmannualdinner2016 Scan me for more information NEWSFEATURE HIGHLIGHTS Round Table Dialogue on Driving the Digital Revolution in Malaysia – Immense Opportunities Abound The speakers of the Executive Round Table Dialogue More than 40 senior business and Opening the session, H.E. Michael Dato’ Ng Wan Peng from the Malaysia industry leaders attended an executive Winzap, Swiss Ambassador to Malaysia Digital Economy Corporation gave dialogue on Industry 4.0, one of the commented, “ABB’s pioneering a perspective on Malaysia’s position programme pillars for the World technologies have helped to lead by saying, “We must not ask if we are Economic Forum on ASEAN which industrial revolutions for over 125 years. digital ready, we simply have to use was held in Kuala Lumpur from The world as we know it is changing it and to be digitally inclusive,” as she June 1 – 2, 2016. exponentially. The challenge is how highlighted the need for education we can drive connectivity to improve and training in this area. This year’s ASEAN meeting discussed productivity and efficiency for transport how regional and global forces are and infrastructure, utilities and industry.” Dr Yeoh Oon Tean, Chief Executive impacting growth outlook for Officer of the Federation of Malaysian economies in the region, whether “The key promise of Internet of Things, Manufacturers, cautioned, “Awareness through enhancing productivity with Services and People (IoTSP) is striking of the internet of things is good, but our technology shifts, demographic changes and fascinating. There is no turning readiness to adopt is not quite there. and strengthening social protection back. We need a broad framework to Only 33% of manufacturers see the systems, promoting stability through embrace the workforce, infrastructure need to invest in industrial automation.” efficient governance or accelerating and customisation and the time to reforms to build regional resilience. move forward is now.” Closing the event, Johan de Villiers, Managing Director for ABB in In anticipation of the discussions, Echoing this, Rami-Johan Jokela, Digital Singapore and South-East Asia said, ABB Malaysia Sdn. Bhd. and the Swiss Lead, ABB said, “By the end of 2016, there “The opportunities are huge and will Embassy in Malaysia hosted an will be more connected devices than there impact on every one of us in many executive round table dialogue to are people on the planet. The 4th industrial ways. The challenge and the understand the new dynamics of revolution is special for us all as leaders. opportunity will be to leverage digitalisation, the challenges and We have the chance to influence and be technologies in a positive way that is opportunities, in particular, the impact part of the digital revolution that is inclusive and sustainable.” on industries in Malaysia. happening in our lifetime.” Source: www.abb.com.my 6 | BIA@FMM | JUL – SEP 2016 NEWSFEATURE HIGHLIGHTS Implementation of the Customs Demerit System The Royal Malaysian Customs exclude genuine mistakes in (exporter) which was out of the Department (Customs Department) submissions where it was clear that control of the agent/(importer). has introduced, effective April 1, 2015, there was no intention to defraud • Any amendments made to manifest the Demerit Points System affecting