FEDERATION OF MALAYSIAN MANUFACTURERS APR – JUN 2016 | VOL: 2 /2016 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376) Joint Press Conference on TPP 04 COVER 06 FEATURE 12 SME NEWS STORY Malaysian Business Sector: FMM Excellence Updates on Market TPP to Drive Growth and Jobs Award Winners Development Grant EDITORIAL CONTENT Advisor Dr Yeoh Oon Tean COVER STORY Chief Executive Officer Editorial Team Malaysian Business Sector: Madeline Loh 04 TPP to Drive Growth and Jobs General Manager (Trade) Ng Lee Lee Senior Manager International Business Division FEATURE Florance S. Gabriel Assistant Manager FMM Excellence Award Winners Communications and Publications Unit 06 Advertisements Kenny Lee Sales Manager FMM – MIER Business Conditions Survey Marketing Unit 08 Tel: 012-383 3857 Published By Federation of Malaysian Manufacturers (7907–X) FMM Members Recognised at Wisma FMM 10 Prime Minister’s Hibiscus Award No. 3, Persiaran Dagang, PJU 9 Bandar Sri Damansara 2014/2015 Night 52200 Kuala Lumpur Tel: 03-62867200 Fax: 03-62741266/7288 Email: [email protected] Website: www.fmm.org.my Printed By Percetakan Okid Sdn Bhd No. 2, Jalan SS13/3C Subang Jaya Industrial Estate 47500 Subang Jaya, Selangor FEDERATION OF M ALAYS IAN M ANUFACTURERS © Copyright Reserved FMM has eight branches and two representative offices located in Kedah, Penang, Perak, Selangor, Negeri Sembilan, Malacca, Johor, Pahang, Sabah and Sarawak. SME NEWS Any material extracted from BUSINESS ACTION @FMM to be quoted or reprinted should Updates on Market Development Grant contain an acknowledgement to FMM or its 12 acknowledged sources. 2 | BIA@FMM | APR – JUN 2016 UPDATES FMM IN THE NEWS Industrial Energy Efficiency Kedah/Perlis 14 for the Malaysian 23 Negeri Sembilan Manufacturing Sector 15 EU-Vietnam FTA Ratified Strengthening Ties 16 with Singapore Visit to Machinery Technology Penang 18 Centre, SIRIM BERHAD Perak FMM Business Delegation Selangor to Sinopack 2016 at Guangzhou, China Financing Facilities for 20 Women Entrepreneurs Mandatory Requirement to Verify Weight of a Container Carrying Cargo Counterfeits: You’ve Built Johor 22 Your Turf, Now Guard It! Sabah Malacca Eastern APR – JUN 2016 | BIA@FMM | 3 NEWSCOVER HIGHLIGHTS STORY Malaysian Business Sector: TPP to Drive Growth and Jobs A Joint Press Conference on TPP was held on January 20, 2016 represented by the business sector The Malaysian business sector The Cost Benefit Analysis studies by which will open up more opportunities represented by the Federation of Institute of Strategic and International for local players to procure better quality Malaysian Manufacturers, Malaysian Studies and PricewaterhouseCoopers raw materials from its TPP partners at a International Chambers of Commerce further reaffirm that TPP is expected to lower price to produce high value-added and Industry, The Associated Chinese bring more positive than negative products. In turn, exports of high value- Chambers of Commerce and Industry impacts on the Malaysian economy. added finished products from Malaysia of Malaysia, Malay Consultative Council, are expected to increase. Recognising SME Association of Malaysia, Malay Being a signatory to the TPP means the economic benefits that can be Businessmen and Industrialist that Malaysia will have access to an reaped from the TPP, countries like Association of Malaysia and American enormous free trade market of 800 the Philippines, Thailand, Indonesia, Malaysian Chamber of Commerce million people with a combined GDP South Korea and Taiwan have also (jointly The Associations) expressed of USD27.5 trillion. Tariffs will be expressed interest in joining TPP in joint support for Malaysia to sign the eliminated on 85% of Malaysia’s trade the foreseeable future. Trans-Pacific Partnership agreement. with its new FTA partners – Canada, They were of the view that the signing Mexico, Peru and USA. This will SMEs are already competing under of the TPP is the key to Malaysia’s ultimately represent USD$1.2 billion existing FTAs. For instance, since January aspirations to enjoy sustainable growth of tariff savings a year for Malaysian 2010, over 90% of our tariffs under the and move into the ranks of a high exporters. The products that will ASEAN-China FTA had been eliminated income nation. They believed that it benefit from duty free access to the but Malaysian SME companies have holds immense potential for boosting TPP countries are automotive products, continued to survive and are in fact able exports, generating economic growth machinery and equipment, electrical to compete more effectively due to and creating employment. It also and electronics, textile and apparel cheaper imported raw material and promises Malaysian companies and all and rubber products among others. inputs. Under the TPP, a chapter is TPP countries a degree of transparency Malaysia will eliminate import duty dedicated to facilitate SMEs. SMEs will and predictability in investment rules for several sensitive E&E products and be facilitated to participate in the global and tariff concessions. petroleum and chemical products supply chain, by enhancing transparency 4 | BIA@FMM | JAN – MAR 2016 and sharing of information on-line EU Malaysia FTA or RCEP? If Malaysia Procurement will gradually reduce among TPP countries, as well as fails to conclude the TPP, our ASEAN preferences over time. Malaysia can developing capacity building neighbours may move ahead of us also elect to deny tobacco control programmes to assist SMEs to strongly and we will be relegated to the measures from Investor State Dispute remain relevant under TPP. side-lines. As such, the opportunity cost Settlement provisions. of not aligning ourselves with the global The TPP is now more important than economy now would only get costlier Being an open and competitive trading ever to ensure that Malaysia continues for Malaysia over time. economy has served us well in the past to attract Foreign Direct Investments. and our development experience tells It is also crucial to help protect our The Associations recognised that there us that we should not be held back by investments abroad given that are challenges in implementing such a the unfounded fears of a few. With this Malaysia is now a net exporter of broad and high-standard agreement in mind, the Associations urged the capital - largely because of the across different countries. The Malaysian government to look into the investments and expansion of local Government has managed to future and take the steps necessary to corporations into overseas market. successfully negotiate numerous lead the TPP into a reality. The Associations exclusions and exemptions to safeguard also urged that all stakeholders to focus The Associations were confident that the nation’s and stakeholders’ interests on the overall interests of the nation having a first mover advantage in the especially in the areas of national going forward. TPP would yield positive results. Given sovereignty, Government Procurement, the uncertainties in the global trading State Owned Enterprise and the Note: On February 4, 2016, Malaysia environment, especially in traditional Bumiputera agenda. The Government signed the TPP agreement with Australia, export markets, can Malaysia afford not retains its rights of affirmative action for Brunei, Canada, Japan, Mexico, New to sign important FTAs like the TPP and the Bumiputera community. Market Zealand, Peru, Singapore, Vietnam later, other FTAs in the pipeline like the access obligations in Government and United States. UPCOMING EVENTS JUNE SEPTEMBER NOVEMBER Jun 22 – 25, 2016 Sept 1 – 4, 2016 Nov 2 – 4, 2016 Manufacturing Expo Worldfood Istandbul Worldfood Kazakhstan Bangkok, Thailand Istanbul, Turkey Kazakhstan Five international exhibitions: To be confirmed To be confirmed Intermold, Automotive Manufacturing, Assembly & Automation, Surface and Sept 12 – 15, 2016 Nov 16 – 19, 2016 Coatings, NEPCON Worldfood Moscow Vietnam Food Expo Moscow, Russia HCMC, Vietnam JULY To be confirmed Food and food related products July 7 – 10, 2016 Interplas Thailand Sept 21-23, 2016 Nov 23 – 26, 2016 Bangkok, Thailand TILOG-Logistix Grand Metalex Plastics and Petrochemical Bangkok, Thailand Bangkok, Thailand Manufacturing Machinery & Technology Logistics Service Providers & Intralogistics Machinery Tools and Accessories. & Solutions AUGUST OCTOBER For more information, please log on Aug 4 – 7, 2016 Oct 27 – 30, 2016 to FMM’s website at http://www.fmm. Thailand Retail, Food & Hospitality Kaohsiung Food show org.my/[email protected] Services 2016 (TRAFS) Kaohsiung, Taiwan or contact Koh Wee Leng of the Bangkok, Thailand Food & Related products FMM Secretariat at tel : 03-62867200 or Food & Related products e-mail: [email protected] APR – JUN 2016 | BIA@FMM | 5 NEWSFEATURE HIGHLIGHTS FMM Excellence Award Winners Winners of the FMM Excellence Awards (FMMEA) were recognised at the FMM Annual Dinner on December 1, 2015. The Gold Recipient for SMIs category was Leader Universal Aluminium Sdn Bhd while the Silver Recipient for Large Companies was All Cosmos Industries Sdn Bhd. Master-Pack Sdn Bhd meanwhile won the award for Silver Recipient for SMIs category. Leader Universal Aluminium Sdn Bhd (LUA) manufactures aluminium and alloy rods. The company had its first EC aluminium and alloy rod cast since 1978. Today, LUA has four properzi CCR lines in its Johor and Negeri Sembilan plants with a combined capacity to produce Group photograph of the winners of the Silver Recipient for Large Companies, 100,000 MT of EC aluminium and alloy