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 the Government i.e. areas with no after the vessel departure and before forwarding agents/customs brokers. duty implications. vessel arrival. This was a common The new system imposes demerit request and permitted by the World points and compounds on forwarding FMM convened a meeting on June 27, Customs Organisation provided agents committing offences under the 2016 to seek the feedback of members Customs Department’s approval was Customs Act 1967. Since April 2016, regarding the proposed regulations obtained. For example changes in notices have been issued to agents and subsequently on July 1, 2016 gross weight, description, consignee although no licenses have been submitted a letter to Dato’ Sri Khazali name and address. suspended. However, large compounds bin Haji Ahmad, Director-General of have been issued to agents for offences. Customs Department recommending • Amending forms for correctness in Compounds have been passed directly that Customs Department adopt an line with the Customs Department’s to the manufacturers and those who advisory role instead in ensuring quality requests for quality declaration. For failed to settle the compounds declarations until a more detailed SOP example completing missing in experienced delays in import and could be made available to businesses. formation or adjusting information export clearance by agents. For minor offences, warning letters could for accuracy. be issued and sufficient time provided • Any amendments concerning cargo At a meeting with Customs for agents to explain the errors instead of that did not involve duty payment. Department held on June 16, 2016, the issuance of immediate compounds. FMM was informed that the Customs For example, LMW, non-dutiable Department was in the process of FMM recommended that the following imports, exports. finalising a Standard Operating areas be exempted from demerit points • Genuine common inaccuracies for Procedure (SOP) on the offences and and compounds: example typo error, exchange rate related demerit points as well as the • Errors or amendments on rounding up, unit price evaluation, compounds to be imposed on the declarations and manifest based on HS code conversion and changes in agents. Customs Department had information from the shipper port of disembarkation. agreed to streamline the SOP to
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Federation of Malaysian Manufacturers (7907–X) Wisma FMM, No 3, Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200 Kuala Lumpur Tel: 03-62867200 Fax: 03-62741266/7288 E-mail: [email protected] Website: www.fmm.org.my Communications & Publications Unit (Attn: Ida Tan)
8 | BIA@FMM | JUL – SEP 2016
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Review of Natural Gas Price in Peninsular Malaysia
Natural Gas Price Review Electricity Tariff Rebate The Energy Commission (ST) announced on June 28, 2016 a review of Natural Gas The electricity tariff rebate of (NG) tariff for the non-power sector in Peninsular Malaysia effective July 15, 2016 1.52 sen/kWh applicable in the last as follows: six months is retained for the period July 1, 2016 to December 31, 2016.
Average Yearly RM/mmBtu This Imbalance Cost Pass-Through Tariff Category Consumption (mmBtu) rebate amounting to RM758 million Current Tariff New Tariff is due to savings in generation cost in the period January – June 2016 A Domestic 19.52 19.52 contributed by: B 0 – 600 23.78 25.20 • Reduction in LNG and coal prices; C 601 – 5,000 23.90 25.33 • D 5,001 – 50,000 24.14 25.58 Higher performance of coal power E 50,001 – 200,000 25.19 26.69 plants; and F 200,001 – 750,000 25.19 26.69 • Reduction in the use of LNG for L > 750,000 26.03 27.58 electricity generation. Average 25.53 27.05 The rebate takes into account the review of piped gas price for the power sector which was raised by RM1.50/ The NG tariff is increased on average FMM’s proposal for gradual reduction MMBtu from RM18.20/mmBtu to by RM1.52/mmBtu or 5.95% due to the of piped gas volume by 20mmscfd RM19.70/mmBtu effective July 1, 2016. following factors: over four tariff review periods • Higher volume of imported liquefied beginning July 2016; For enquiries please contact natural gas (LNG) in the supply to • Ringgit volatility; and Wan Haslina or Hema Thiruchelvam of the Business Environment domestic customers given the • Increase in piped gas price by Division at tel: 03-62867200 or email reduction in volume of piped gas RM1.50/mmBtu every six months [email protected]. with the depletion of local sources. under the Government’s energy The Government had agreed to subsidy rationalisation.
FMM MAFMAG Seminar – Nutrition Promotion and Food Legislation Updates by Ministry of Health
FMM MAFMAG organised a seminar on Nutrition Promotion and Legislation Updates by Ministry of Health (MOH) on July 18, 2016 to enhance health and nutrition awareness among industry players as well as to receive updates on policies and strategies in efforts to combat non-communicable diseases in Malaysia.
Speakers were from different divisions of MOH, namely Allied Health Science Division, Nutrition Division and Food Safety and Quality Division. Industry representatives were also invited to update on industry initiatives to Siti Noor Syarma from Nutrition Division of MOH presenting her paper on Nutrition Promotion address to the issue. Updates
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FMM Strongly Objects to New Mechanism to Curb GST-related Profiteering
FMM strongly objects to the proposed FMM also recognises and supports the to implement. In fact, it may even be introduction of a new regulation to need to control pricing of some impossible to implement efficiently. replace the existing Price Control and essential items which affect the lower The new regulation would also Anti-Profiteering (Mechanism to income group but a regulation to discourage innovation and efforts Determine Unreasonable High Profit) control pricing of all products to increase productivity and cost (Goods and Services Tax) Regulations indefinitely is contrary to free market efficiency as companies would be 2014 which will be discontinued on practice and will adversely affect the forced to maintain or reduce prices December 31, 2016. sentiment of businesses and investors. in order to maintain the percentage No other country has in place mark-up. FMM recognises the necessity to regulations that discourage fair introduce the regulation to curb business competition to be enforced FMM is of the view that other than profiteering following the introduction continuously without an end date. control on essential items, any of Goods and Services Tax (GST) for new regulations to fix profits should 18 months. Now that the GST is fully The proposed new regulation requires be removed and for market forces embedded, this regulation should be a set mark-up in percentage to be to be allowed to prevail in the terminated as earlier announced and maintained for a duration of a financial/ determination of prices of goods not to be replaced by another regulation. calendar year for all products. This and services. It is important for the FMM notes that the Net Profit Margin single mechanism to control the profit Government instead to encourage (NPM) mechanism in Australia and which is applied to all products and to competition, remove monopolistic United Kingdom for example were all different industries with different situations and reinforce the existing disbanded within a few months of its costing and pricing strategies is not laws including the Competition Act implementation following the GST only unrealistic but time-consuming to curb profiteering. introduction when inflation eased. and costly for industries and regulators
12 | BIA@FMM | JUL – SEP 2016 Ramping Productivity with LEAN
FMM continues to promote the LEAN System Development Programme in a joint collaboration with the Malaysia Productivity Corporation (MPC) following a successful pilot project. FMM members that participated in the 2nd wave of the LEAN project included Agricultural Chemicals (M) Sdn Bhd, BI Technologies Corporation Sdn Bhd, Kurz Production (M) Sdn Bhd, Top Glove Sdn Bhd and Penfabric Sdn Berhad. Feedback from participating companies indicated savings averaging more than RM160,000 per company within a 5-month period from areas including manpower, work in progress, FMM Council Member and Chairman of FMM Services Sdn Bhd, Datuk Dr Wan Mohamed wastage, etc. bin Wan Embong (left) receiving the National Productivity Champion Award from the Minister of International Trade and Industry, YB Dato’ Sri Mustapa Mohamed. Looking on is the Director-General of Malaysia Productivity Corporation, Dato’ Mohd Razali bin Hussain During the 6-month period of the project, LEAN consultants were assigned to conduct health checks Companies that have adopted LEAN Both the LEAN project and study at factories of the participating shared their experiences at this visit are 100% claimable under the companies, propose recommendations briefing held on August 24, 2016 Human Resource Development Fund. to improve work processes/operations which attracted over 90 participants. and conduct training. For further enquiries on the LEAN A study mission to Japan on LEAN project, please contact Jess Chong As a continuation to the LEAN project, Management has been scheduled of the FMM Secretariat at tel: 03- FMM and MPC organised a briefing with the support of the MPC from 62867200, fax: 03-62741266/7288 or for the companies to highlight how September 18 – 23, 2016 to expose email: [email protected]. LEAN works and the benefits to participants to LEAN best practices be derived from the project. in the manufacturing sector in Japan.
Group photograph of the recipients of the Productivity Champion Awards from 16 companies.
JUL – SEP 2016 | BIA@FMM | 13 UPDATES
Updates on Implementation of Verified Gross Mass
Under the Safety of Life at Sea of containers happened during would charge weighing fee on all Convention (SOLAS) Verified Gross the period. FMM was informed agents and CFS operators effective Mass (VGM) requirement, all shippers that the postponement of the August 2, 2016. must transmit the VGM weight via PKN VGM module was due to the electronic means such as Electronic unanticipated volume surge in FMM received complaints from Data Exchange/Electronic Data logins to the system. members on the refusal of shipping Processing or shipping document lines to accept the info on VGM from • PKA issued another circular on comprising shipping instruction to the terminal system as well as new July 15, 2016 to announce that the shipping companies (i.e. weight charges related to VGM imposed by the contingency plan for e-SOLAS VGM certificate produced by weighing logistics service providers on shippers would be extended from July 18 to stations). The following are the updates i.e admin fee/ handling fee of USD8 – August 1, 2016. The e-SOLAS system on implementation of the VGM based USD25 per container. Freight forwarders would be fully enforced on August 2, on the various meetings held between informed that they would impose 2016. All agents and CFS operators FMM and the relevant authorities: surcharges on shippers to retrieve the were required to use e-SOLAS to • VGM and submit to shipping lines on On July 1, 2016, Port Klang Authoritiy transmit the VGM or to request their behalf. FMM highlighted the (PKA) issued a circular to announce terminals to provide the VGM. Failure complaints to the Minister of Transport the postponement of the Port Klang to comply with the requirements at a meeting held on August 18, 2016. Net (PKN) VGM Module and activated would prevent hauliers from making the contingency plan on e-SOLAS the ‘pre-arrival booking’ with from July 1 – 17, 2016. PKA instructed terminals and indirectly, the terminals to weigh all export laden containers would be denied for containers (100%) at no cost and entry at the terminal gates. Terminals confirmed that no shutting down
FMM Business Best Practices Seminar on E-Commerce
The 7th FMM Business Best Practices Seminar held on May 26, 2016 was attended by around 100 participants comprising marketing, business development and sales managers. Participants gained updates on overview of e-commerce market, development and management of e-commerce websites as well as utilising e-commerce to enhance exports. The invited speakers were from Neowave Solutions, iPay88 Sdn Bhd, HappyFresh Group, PanPages Group and Malaysia External Trade From left: Adrian Oh of Neowave Solutions and Chong Lee Kean of iPay88 Development Corporation (MATRADE). responding to questions from participants Adrian Oh, Co-Founder of Neowave Solutions shared on the search abandonment rate and mechanisms For participants exploring e-commerce, engine optimisation and the to prevent online fraud while Opal Wu, PanPages Group and MATRADE shared importance of good product images Managing Director of HappyFresh Alibaba’s tips to be successful in the to sales. Chong Lee Kean, Business Group Malaysia presented effective international online trade channel and Development Director and Co- actions taken by his company in e-TRADE Programme respectively. Founder of iPay88 Sdn Bhd shared starting an online grocery store and important tips on reducing cart ways to enhance sales.
14 | BIA@FMM | JUL – SEP 2016
UPDATES
Enhancing Electricity Safety, Governance, Compliance and Enforcement
FMM organised a seminar on Complying comply with regulations, safety Commission. The Commission shared with the Electricity Supply (Amendments) codes, standards or prudent practices several examples of unsafe acts and Act 2015 and Electricity Related Issues in performing electrical work to conditions which caused accidents. on May 10, 2016 with the aim to update prevent injury to persons or damage Registered competent persons are participants on the amendments to to properties. responsible in ensuring electrical The Electricity Supply Act 2015. • The Commission may audit or the safety compliance at their workplace owner/operator to appoint at their at all times. Highlights of the seminar included own cost an independent expert to the following: The seminar also provided participants audit on matters related to licensed with updates on the availability of the • The Electricity Supply Act 2015 and registered installations and safety TNB’s optional Enhanced Time of Use amendments which came into effect of installations and equipment. on January 1, 2016 aim to strengthen scheme and the Energy Audit Conditional • There is a new provision which th electricity safety management, Grant under the 11 Malaysia Plan, which allows the Minister to make consumer protection and law is managed by Malaysia Green Technology Regulations or codes to require a enforcement. The amendments Corporation (GreenTech Malaysia). licensee to contribute to the enhance the regulatory role of the Electricity Industry Fund, which is The seminar was attended by Energy Commission in activities managed by the Commission and approximately 200 participants. Other relating to consumer interests, supply used to cushion the impact of speakers from the Commission included quality, activities of licensees to electricity tariffs on consumers and Mohd Elmi Anas, Director of Electrical meet reasonable demand, electrical for other purposes necessary to the Safety Regulations; Ahmad Tazmin Mohd safety, generation, transmission and electricity supply industry. Nordin, Senior Regulator, Investigation distribution systems, standards for • All offences committed under the Act Unit, Iffah Hannah Muluk, Head of electrical installation and equipment, Enforcement Unit. Murugiah Suppiah, registration of installations and persons by a body corporate is now punishable against its officers namely the director, President of Institution of Certified involved in the industry, audits and Engineers Malaysia, Ch’ng Eng Yong of acquisition of information, evidence chief executive officer, chief operating officer, manager, secretary or other Schneider Electric Malaysia, Tuan Haji Abu and access to computerised data, etc. Bakar Ismail of Tenaga Nasional Berhad These developments were shared by similar officers. The maximum fine and imprisonment for offences have been and Ir Akmal Rahimi Abu Samah of Shahrilnazim Shaari, Head of Legal GreenTech Malaysia also contributed to Unit, Energy Commission. increased to reflect the seriousness of the offence as a stronger deterrent. the success of the seminar. • The amendments require non-domestic • installation owners/operators (which The Commission would next be The Electricity Supply (Amendment) include designated manufacturing amending the Licensee Supply Act 2015 is available for download at facilities) to exercise self-regulation in Regulations 1990, the Electricity http://www.federalgazette.agc.gov.my/ ensuring compliance with regulations, Regulations 1994 and drafting outputaktap/20151105_A1501_BI_WJW0 safety code and standards implemented new regulations i.e. Electricity 05535%20BI.pdf. by the Energy Commission (Compounding of Offences) (Commission) or prudent industry Regulations 2016, codes, guidelines practices. The owners/operators are and directives. Inputs are welcomed required to prepare a safety from industry practitioners. management programme for • The Commission stressed upon the inspection by the Commission. Penalty significant impact of electricity theft for non-compliance is a fine not and meter tempering. For the period exceeding RM100,000 or imprisonment September 15, 2015 to March 15, 2016, for a term not exceeding two years or losses from 464 cases (0.56%) of both. The Commission would be 82,317 total large power consumers issuing the Non-Domestic Electrical alone amounted to RM46.4 million. Installation Safety Code 2016 and These losses are factored in the relevant guidelines to facilitate electricity tariff review and paid for industry compliance with the Act. by all electricity users. • • In addition, competent persons are Management and installation owners Shahrilnazim Shaari, Head of Legal Unit, to exercise self-regulation and ensure were reminded on their responsibilities Energy Commission presenting on the that persons under their supervision to report electrical incidents to the Amendments to the Electricity Supply Act
16 | BIA@FMM | JUL – SEP 2016
UPDATES
FMM ICT Conference 2016
FMM, with the support of Malaysia Digital Economy Corporation (MDeC) organised its 7th FMM ICT Conference with the theme Enhancing Manufacturing Competitiveness Globally with Cloud Computing on May 24, 2016.
YB Dato’ Lee Chee Leong, Deputy Minister of International Trade and Industry, in his keynote address said that “given the vital role that IT plays in today’s business environment, cloud computing is also fundamentally changing the way that companies operate. Tens of thousands of companies of all sizes in a broad range of industries are utilising cloud-based software, platforms, and even infrastructure to streamline processes, lower IT complexity, gain better visibility, and reduce costs. Its ultimate leverage is YB Dato’ Lee Chee Leong, Deputy Minister of International Trade and Industry, noticeably real-time feedback and delivering his keynote address at the conference. rapid efficiency improvement.”
In the recent FMM – MDeC ICT Adoption indirectly in place of traditional on-site In his welcome remarks, Daniel Loh, Survey among members, manufacturers systems. Manufacturers are already FMM Council Member and Chairman were asked about their awareness of new embarking on cloud computing, of the FMM ICT & Multimedia Committee technologies which includes Internet of whether it is to select and update urged participants, particularly SMEs Things, Big Data, E-Commerce, Cloud applications, reduce costs, achieve to adopt ICT in their manufacturing Computing and Information Security. global access or to increase flexibility. processes so as to keep their business 82% of the survey respondents were The survey further showed that 20% relevant and sustainable and the need to aware of cloud technology but only of the respondents plan to adopt do it now, rather than later. 49% adopted this technology. Many cloud technology within the next businesses large and small, use cloud 12 – 24 months and 14% plan to adopt The conference was attended by some computing today either directly or cloud in the next three to five years. 200 members and 18 exhibitors.
Panel speakers: From right are Gilles Waeldin of PETZL Manufacturing Malaysia Sdn Bhd, Roger Ling of Epicor Software (M) Sdn Bhd, Clement Arul of Mega Fo rt ris (Malaysia) Sdn Bhd, Yong Yoon Kit of FMM ICT & Multimedia Exhibitor and participant at the ICT Conference discussing Committee and Chee Yih Tzuen of Top Glove Sdn Bhd on cloud computing
18 | BIA@FMM | JUL – SEP 2016 Trade and Investment Mission to Cambodia
FMM and the Expertise Resource Association (ERA) jointly organised a trade and investment mission to Siem Reap and Phnom Penh from July 18 – 23, 2016 with the aim to explore and seek business opportunities for Malaysian manufacturers in Cambodia. Tan Sri Soong Siew Hoong, FMM Council member and Chairman of ERA led the 26 member delegation to Cambodia. An estimated 105 business matching meetings were organised in Siem Reap and Phnom Penh with the participation of members of the Young Entrepreneurs Group photograph of the delegates of the Trade and Investment Mission to Association of Cambodia, Siem Reap Siem Reap and Phnom Penh Chambers of Commerce and Industry, Cambodia Chamber of Commerce and the Construction Association of Ambassador to Cambodia, H.E. Dato’ Sri and Cynthia Liaw from Maybank Cambodia. Hassan Malek. Dr Sok Siphana from Cambodia briefed on the financing SokSiphana & Associations briefed the facilities for business in Cambodia. The The Malaysian delegation also paid Malaysian delegation on the legal delegation also visited ISI Limited, a a courtesy call on the Malaysian aspects of doing business in Cambodia Cambodian iron and steel company.
Factory Visit to Perfect Food Manufacturing (M) Sdn Bhd
A delegation of 35 representatives delegation was briefed by Martin Ang, inspection of containers by third party, from member companies visited Director of Marketing and Sales on the use of country’s primary language for Perfect Food Manufacturing (M) business challenges faced by the facts on ingredients for packaging, etc. Sdn Bhd on July 26, 2016. Led by the company in exporting to global The corporate social responsibility Chairman of the Branding and IPR markets. These included non-tariff projects of the company were also Committee, Michelle Hah, the barriers, halal certification, labeling, presented to the FMM delegation.
Group photograph of the FMM delegates to Perfect Food Manufacturing (M) Sdn Bhd
JUL – SEP 2016 | BIA@FMM | 19 SME NEWS
Pocket Talk on Initiatives for SMEs
A meeting was held on April 28, 2016 to programme would aim to create that are submitted under SDRS to discuss a collaboration with Bank awareness among SMEs on market PFIs for their consideration. In the Negara Malaysia (BNM) to organise a transparency, efficiency, competition event these applications are seminar on Business to Business (B2B) and reduce prices for remittance rejected by the PFIs, a dedicated Remittance. services. committee, i.e. the Small Debt • The Small Debt Resolution Scheme Resolution Committee (SDRC) Among the issues discussed included (SDRS) would benefit SMEs in the established by BNM would then the following: following ways: undertake an independent • Johor Bahru has been selected as – SDRS would provide assistance to assessment on the viability of the a Champion City for Remittance viable SMEs that are constrained business and propose under the Project Greenback 2.0. by non-performing loans/ restructuring or rescheduling if The project initiated by World Bank, financing and distressed SMEs with eligible of a new financing. New aimed at increasing efficiency in performing loans/financing under financing would be sourced from the market for remittances through multiple participating financial existing SME funds and schemes an innovative approach. institutions (PFIs), by facilitating established by BNM. • In terms of B2B remittance, the restructuring or rescheduling Applicants may obtain the SDRC programme would target SMEs in and providing new financing, application forms from PFIs/BNMLINK/ service sectors, manufacturing, if eligible. BNM Regional Offices/SMEinfo portal plantation companies and other – The scheme involves applications at: www.smeinfo.com.my. Services sectors in Johor Bahru city. The for restructuring or rescheduling under SDRS are offered free of charge.
Visit to SME Corporation Malaysia
A total of 28 representatives from and to update members on the members to participate voluntarily 18 FMM member companies programmes and facilities offered by in the programme for assessment participated in the visit to SME SME Corp. Members were briefed on of the company’s performance. Corporation Malaysia (SME Corp) on the implementation of SME Master Many SCORE partners require SCORE May 5, 2016. The FMM delegation was Plan, SCORE, 1-Innocert, National Mark, assessment of SMEs before they can led by IR A K Woo, Vice-Chairman of mentor-mentee programme and be integrated into the supply chain of FMM SMIs Committee. factory-in-factory concept for SMEs their companies. to operate within MNC facilities. The visit to SME Corp was organised to SME Corp expressed interest to forge and strengthen public - private During the dialogue session, SME Corp collaborate with FMM to reach out sector partnership in support of the elaborated on the importance of the to SMEs. promotion and development of SMEs SCORE programme and encouraged
Group photograph of FMM delegates with Dato’ Hafsah Hashim, CEO SME Corp Malaysia (seated third from right).
20 | BIA@FMM | JUL – SEP 2016 Mun Hean has the experience and expertise to detect, monitor, mitigate these risks, to keep your production churning and profits in your pocket. Call us for a non-obligatory consultation and stand a chance to qualify for a free on-site power audit.*
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Kedah/Perlis
The Branch organised the following: • Workshop on Industrial Electrical Maintenance from May 11 – 12, 2016. • Workshop on SOCSO Claim for Occupational Disease – How to Gather Evidence on May 12, 2016 at Amanjaya Specialist Center (ASC), Sg Petani. Sg Petani Office SOCSO Manager, Hisham Abdul Rahman. Five specialist consultants from ASC were invited to speak. • FMM HR Consultative Forum 2016: Group photograph of the participants at the Workshop on SOCSO Claim for Latest Labour Legislation Review & Occupational Disease – How to Gather Evidence Current Issues on May 19, 2016. The Consultative Forum, which was attended by 110 participants was officiated by K. Kesavan, Principal Assistant Secretary, Policy Division of Ministry of Human Resources (MOHR). Among others, the forum covered issues like HR legislation including TPPA and Holistic Review of Labour Legislations, SOCSO Amendment Act 2015 (New) and Updates on Minimum Wage Review 2016. • 8th FMM Kedah/Perlis Golf Tournament was held on May 28, 2016 which was participated by 62 golfers. Shaiful Saedin of Environment Idaman From left: K Kesavan, Principal Assistant Secretary, Policy Division of MOHR, Sdn Bhd was the Overall Champion Baharuddin Majid from FMM HRM Committee, Borhan Osman, Legal Advisor from SOCSO and Normawati Ahmad of NWCC Secretariat during the Q&A Session of this year’s event.
Sarawak
The Representative Office organised the following: • Briefing on Employing Foreign Workers in Sarawak on May 25, 2016. The briefing was held to update local employers on the latest policies and procedures related to the hiring of foreign workers in the State. Senior officers from the Sarawak Labor Department and Sarawak Immigration Department conducted the briefing for 45 participants. Immigration officer Mohd Fuad bin Taupek briefing the participants on the latest policies and procedures on hiring of foreign workers
22 | BIA@FMM | JUL – SEP 2016 Penang
The Branch organised the following: • Seminar on Impact of Trans- Pacific Partnership Agreement on SMEs on May 25, 2016. It was facilitated by Syahril Syazli Ghazali, Sr. Principal Assistant Director, Strategic Negotiations Division from Ministry of International Trade & Industri and Tim Niklas Schoepp, COO of Penang Institute and was attended by 75 participants. • Seminar on Mandatory Requirement to Provide Verified Tim Niklas Schoepp, COO of Penang Institute presenting his paper at the seminar on May 25, 2016 Gross Mass of Containers for Exports on May 23, 2016. The speakers were Lee Choon Keong, Legal Officer of Metrology Corporation Malaysia Sdn Bhd and Paul Lui, General Manager (Marketing) of Penang Port Sdn Bhd.
The Seminar on May 23, 2016 attracted more than 240 participants from member and non-member companies
Perak The Branch organised the following: • Study visit to Hasrat Meranti Sdn Bhd and briefing on Incentives for Automation on May 15, 2016.
Group photograph with Wan Noraini Abdul Rahman (front row, 8th from right) Director of MIDA Perak after the study visit
JUL – SEP 2016 | BIA@FMM | 23 FMM IN THE NEWS
Selangor The Branch organised the following: • Courtesy call on Dato’ Ahmad Zaharin Bin Mohd Saad, Datuk Bandar of Majlis Bandaraya Shah Alam on May 6, 2016. • Courtesy call on Tuan Haji Rosli bin Othman, Kuala Langat District Officer on May 6, 2016 at Pejabat Tanah & Daerah Kuala Langat, Banting, Selangor. • Organised Launch of the Commuting Accident Programme at YKGI Holdings Berhad on May 6, 2016. Group photograph at the Commuting Accidents Programme Launch at YKGI Holdings Berhad • Seminar on Mandatory Requirement to Provide Verified Gross Mass of Containers for Exports held on May 17, 2016. • FMM Selangor ‘Nite 2016 with over 870 guests on May 19, 2016 with the theme “Healthy Workforce, Industries Prosper”. The dinner was graced by YB Tuan Amirudin Bin Shari, Selangor State Executive Councillor for Youth Development, Sports & Cultural and Entrepreneurship Development. Group photograph with YB Tuan Amirudin Bin Shari, Selangor State Executive Councillor for Youth Development, Sports & Cultural and Entrepreneurship Development (seated 3rd from right) at the FMM Selangor ‘Nite 2016
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Lim Heng Moh, Chairman of FMM Shah Alam Advertise Now! Regional Committee (left) presenting Chia Hock Cheong, Chairman of FMM Selangor a token of appreciation to Dato’ Ahmad Kuala Langat Regional Committee (right) Zaharin Bin Mohd Saad, Datuk Bandar presenting a token of appreciation to Tuan Haji of Majlis Bandaraya Shah Alam Rosli bin Othman, Kuala Langat District Officer
24 | BIA@FMM | JUL – SEP 2016
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Negeri Sembilan
The Branch organised the following: of Environment and Jabatan Bomba of Negeri Sembilan on May 17, • Briefing on Crime Prevention Among 2016. The launch was attended Foreign Workers on May 10, 2016. by 70 participants. The briefing was conducted by officers from the Police Department • CEOs Networking Hi-tea and special of Nilai and Majlis Perbandaran Nilai. talk on “Wars, Cosmetic & Marathon” by Teoh Kok Lin’s of Singular Asset • Official launching of the Branch’s Management on May 19, 2016. Safety Health Environment Excellence 23 participants took part in the Award 2015/2016 and Briefing/ networking session. Dialogue Session with Department of Safety & Health (DOSH), Department
The Branch Committee’s Vice-Chairman Radzi Abdul Rashid (right), presenting a token of appreciation to Izani Bin Mohd Zain, Director of DOSH Negeri Sembilan
Group photograph of the participants comprising CEOs and directors who attended the Networking Hi-tea
Malacca The Branch organised the following: • Seminar on Customs Tax Incentives (Exemption) Under Section 14(2), Customs Act 1967 and Latest GST Rules for Manufacturing Sector on May 4, 2016. It was facilitated by Goh Kin Siang, former Deputy Director of Royal Malaysian Customs Department, Malacca. • Membership Networking Session on May 10, 2016. Speakers were Sheila Balbir Kaur, Manager, Business Development and Siti Nuraziah Syed Saruat Nasim, Senior Manager, Brand Management, Port of Tanjung Pelepas (PTP). The speakers shared on the new requirement of Safety of Life at Sea (SOLAS) Convention and the upcoming project of PTP in Malacca.
Former Deputy Director of Royal Malaysian Customs Department, Malacca, Goh Kin Siang speaking on GST related matters
26 | BIA@FMM | JUL – SEP 2016
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Johor
The Branch organised the following: • Bowling Tournament on May 29, 2016. A total of 36 teams representing member companies participated in the tournament. • Safety Conference from May 25 – 26, 2016. The conference was officiated by the Director of Department of Occupational, Safety and Health from the State, Ir. Hj Kormain bin Haji Mohd Noor. • Dialogue session with Gas Malaysia Bhd, Petronas Gas Bhd and Energy Commission to discuss problems on natural gas interruption on June 20, 2016. The dialogue session focused on the compensation of losses, future The Branch Committee Chairman Capt (R) Hj Abdullah Shariff (4th from right) presenting measures and tabling of Petronas Gas the prizes to Chan Chee Ming, Director of Hexaworth Sales and Services Sdn Bhd, the champion of the Bowling Tournament Bhd final investigation report.
The Branch also participated in of Johor, YB Tee Siew Kiong. The • Launch of Health, Safety & the following: meeting focused on industrial and Environmental Week of Kerry • Industrial Development Secretariat investment issues at the state level. Ingredients (M) Sdn Bhd, a Meeting of Johor Bahru City • The Branch Committee Chairman, member company on June 3, Council (MBJB) on May 30, 2016. Abdullah Shariff and Branch 2016. YB Hajjah Normala Abdul The meeting was chaired by Committee Vice-Chairmen Gerard Samad, Member of Parliament Farizal Ismail, MBJB Secretary. R Sankar, Eiap Eng Khoon, Saw Seong was invited to officiate the launch. • Johor Investment Committee (JIC) Ho and Lim Tau Boon attended a Meeting chaired by Chairman of symposium on “Branding Bangladesh” Tourism, Trade and Consumerism on May 30, 2016.
Sabah The Representative Office organised the following: • Seminar on Updates on Malaysian Halal Certification on May 26, 2016 which was facilitated by Shazlina Abd Rashid, Head of Unit and auditor of Halal Certification, Jabatan Hal Ehwal Agama Islam Negeri Sabah. • Tuan Rahman Jayari, Chairman of the Representative Office attended the SIRIM Networking and Dialogue Session organised in collaboration with SME Corp., Ministry of Science, Technology & Innovation and Ministry of Industrial Development Sabah on Group photograph of the participants of the seminar on Malaysian Halal Certification with the facilitator Shazlina Abd Rashid (seated 3rd from right) May 3, 2016.
28 | BIA@FMM | JUL – SEP 2016 FEDERATION OF MALAYSIAN MANUFACTURERS (7907-X)
Making Malaysian Industries Globally Competitive
Established since 1968, Federation of Malaysian Contact FMM for… Manufacturers (FMM) is a leading private sector • International contacts organisation representing the interests of over 2,600 • Domestic market outreach leading industrial establishments in Malaysia. FMM • Facilitating trade provides trade, business and management support • Government contact and advisory services to facilitate business operations of its • Direct membership benefits members. We are an important focal point for • Training companies seeking links with Malaysian • Continuous information updates manufacturers and service providers for investment, trade and services.
+603-6286 7200 +603-6274 1266 / 7288 [email protected] www.fmm.org.my www.facebook.com/fmm.org.my FMM IN THE NEWS
Eastern
The Branch organised the following: • The 1st FMM-Customs (Pahang) Round Table Talk 2016 on June 4, 2016, led by YH Dato’Haji Sarip bin Ismail, Director of Jabatan Kastam, Pahang. • Workshop on ISO 14001:2015 Environmental Management Systems – Requirements & Implementation on May 5, 2016 facilitated by a consultant KY Lim. • Courtesy call on Tuan Haji Rosli bin Zul, new Director of Jabatan Alam Sekitar Negeri Pahang on May 11, 2016. The Branch’s 25-member delegation was led by its Chairman, Group photograph of the participants of the 1st FMM-Customs Round Table Talk Dato’ Haji Mas’ut bin A. Samah. on June 4, 2016 • Courtesy call on YH Dato’ Haji Fadzilla bin Haji Salleh, the new Yang DiPertua, Majlis Perbandaran Kuantan on May 20, 2016. The Branch’s delegation was led by its Chairman, Dato’ Haji Mas’ut bin A. Samah. • Workshop on Global Logistics Management and Incoterms 2010 on May 25, 2016 facilitated by Dr Khairudin bin Ahmad. • Workshop on Customs Tariff Classification: Simple Steps to Get the Correct Tariff Code and How to Avoid Disputes and Pay the Right Customs Duty on May 26, 2016. • Seminar on GST for Manufacturers: Current GST Issues and Implication in Discussion with Tuan Haji Rosli bin Zul, Director of Jabatan Alam Sekitar Negeri Pahang on May 11, 2016 the Manufacturing Sector on May 31, 2016. Dave Ananth from Ernst & Young Tax Consultants Sdn Bhd was the speaker for the seminar attended by 21 participants.
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