1. business and industrial
2. company
3. joint venture

Business
in Action @FMM
Jan/Feb 2015
VOL 1/2015
www.fmm.org.my
KDN NO: PP 16730/08/2012 (030376)
FMM-MIER BUSINESS CONDITIONS
SURVEY RESULTS
CAPTURING BUSINESS
OPPORTUNITIES IN OMAN
MyCC – FMM COMPETITION
COMPLIANCE COLLABORATION
CONTENTS
UPDATES
26
COVER STORY
NATURAL GAS PRICE REVIEW
FOR NON-POWER SECTOR IN
PENINSULAR MALAYSIA &
ELECTRICITY TARIFF MAINTAINED
UNTIL JUNE 2015
FMM Annual Dinner
2014
page
3
BRANCH EVENTS
28
NEWS HIGHLIGHTS
PENANG
12
03
FMM ANNUAL DINNER 2014
05
FINANCIAL AND EXPORT ASSISTANCE
FOR MANUFACTURERS, TRADERS
AND SERVICE PROVIDERS
30
SELANGOR
FMM 46TH ANNUAL GENERAL MEETING
14
CAPTURING BUSINESS OPPORTUNITIES
IN OMAN
06
FMM COUNCIL MEMBERS 2014/2015
07
WINNER OF THE MANUFACTURER OF
THE YEAR AWARD – LARGE COMPANY
16
FMM COLLABORATES WITH
MPC TO INTRODUCE LEAN
MANAGEMENT SYSTEM
18
08
EVENTS IN PICTURES
FMM-MIER BUSINESS CONDITIONS
SURVEY RESULTS
20
MyCC – FMM COMPETITION
COMPLIANCE COLLABORATION
10
VISIT TO METALEX 2014 IN BANGKOK,
THAILAND
PROMOTING MALAYSIA-SINGAPORE
TRADE AND INVESTMENT TIES
24
© Copyright Reserved
FMM has eight branches and
two representative offices located in
Kedah, Penang, Perak, Selangor,
Negeri Sembilan, Malacca, Johor,
Eastern, Sabah and Sarawak.
Any material extracted from
Business in Action @ FMM to be
quoted or reprinted should contain
an acknowledgement to FMM or its
acknowledged sources.
BIA@FMM | Jan – Feb 2015
31
PERAK
32
KEDAH/PERLIS
EASTERN
33
JOHOR
SARAWAK
34
NEGERI SEMBILAN
GS1 DATAMATRIX
Editorial
FEDERATION OF
MALAYSIAN MANUFACTURERS
02
MALACCA
ADVISOR
Dr Yeoh Oon Tean
Chief Executive Officer
EDITORIAL TEAM
Madeline Loh, 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
(+6012-383 3857)
PUBLISHED BY
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
Email: [email protected]
Website: www.fmm.org.my
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COVER STORY
FMM
ANNUAL DINNER
2014
YB Datuk Paul Low, Minister in the Prime Minister’s Department
giving the Keynote Address at the Annual Dinner
FMM’s 46
From left: Tan Sri Datuk Yong Poh Kon, FMM Immediate Past
President, Tan Sri Dr Ahmad Tajuddin Ali, Chairman of CIDB
and Datuk Dr Rebecca Sta Maria, Secretary General of the
Ministry of International Trade & Industry
th
Annual Dinner on November 27, 2014 was attended by about 1,200 members, their
associates and business leaders with YB Datuk Paul Low, Minister in the Prime Minister’s Department as the
Guest-of-Honour.
The dinner was attended by some distinguished
guests that included Datuk Dr Rebecca Sta Maria,
Secretary General of the Ministry of International
Trade & Industry, Tan Sri Dr Ahmad Tajuddin Ali,
Chairman of CIDB, Dato’ Abdul Razak Abdul Majid,
Chairman of the Energy Commission and George
Huang, Emeritus President of the Singapore
Manufacturing Federation.
YB Datuk Paul Low, in his speech, highlighted
that Malaysia’s ability to manage the economy,
to attract foreign direct investments and to be
competitive has benefited us with past decades of
strong economic growth, hence a higher standard
of living. He also added that the government is
concerned with the large influx of unskilled workers.
Unfortunately, the recruitment of migrant workers
has not followed the economic upgrading strategies
of the nation over the years. This is the main reason
why Malaysia continues to have labour-intensive
industries and also why there is a lack of push for
up-skilling and migration to higher value-added
industries. This weakness comes from the lack of
cohesion in the industrialisation and labour reform
of the nation.
During the dinner, the FMM Excellence Awards 2014
were presented to the winners. The Award which
was introduced in 2010 was in its 5th year. The
Award recognises businesses for their outstanding
achievement and excellence in manufacturing,
process improvements and corporate growth.
The awards were presented to Petzl Manufacturing
Malaysia Sdn Bhd as the Rising Star of The Year
category, Teckwah Paper Products Sdn Bhd who
won The Manufacturer of The Year Award 2014
(SMIs) and to New Star Food Industries Sdn Bhd
for Manufacturer of The Year Award 2014 (Large
Companies). All three winners received their
awards from YB Datuk Paul Low.
(continue on pg 04)
Jan – Feb 2015 | BIA@FMM
03
COVER STORY
(continued from pg 03)
The winner of the FMM Excellence Award 2014
Rising Star of The Year, Petzl Manufacturing Malaysia
Sdn Bhd is a leader in safety gears and harnesses for
climbing, rescue work and sports. The Manufacturer
of The Year Award 2014 (SMIs), Teckwah Paper
Products Sdn Bhd offers its clients a wide range of
printing services from offset and UV printing to digital
print on demand using cutting edge technology.
The Manufacturer of The Year Award 2014 (Large
Companies), New Star Food Industries Sdn Bhd
is a 100% Malaysian owned company which
manufactures wheat-based snack products,
prawn crackers and related foodstuff.
YB Datuk Paul Low with Dato’ Saw Choo Boon
The winners (from left): Yin Chun Hong, Group Finance Manager of
Teckwah Paper Products Sdn Bhd, Lim Kim Poon, Operations Manager cum
Management Accountant of New Star Food Industries Sdn Bhd and
Gilles Waeldin, Managing Director of PETZL Manufacturing Malaysia Sdn Bhd
Networking among guests at the Annual Dinner
FMM Council members and guests
04
BIA@FMM | Jan – Feb 2015
SPECIAL FEATURE
FMM 46TH ANNUAL GENERAL MEETING
FMM held its 46th Annual General Meeting (AGM)
on November 27, 2014, at Wisma FMM, Bandar
Sri Damansara, Kuala Lumpur.
In his address, FMM President Dato’ Saw Choo Boon
highlighted that the financial year 2013/2014
saw some improvements in the global economic
environment. However, the year remained challenging
for manufacturers as the cost of doing business
had increased due to new and amended policies,
legislation and regulations and increased fees and
rates. In the Klang Valley, members had to deal with
the additional problem of water rationing.
re-elected to the Council under Section 129(6) of the
Companies Act 1965. A total of 12 council members
were elected/re-elected into the FMM Council.
At a council meeting following the AGM, Dato’
Saw Choo Boon was unanimously re-elected as
FMM President while Tan Sri Datuk Yong Poh Kon
remained Immediate Past President for 2014/2015.
Dato’ (Dr) Ir Andy Seo Kian Haw, YM Raja Dato’
Abd Aziz bin Raja Muda Musa, Davies Danavaindran
and Tan Sri Dato’ Lim Wee Chai were elected as
Vice-Presidents.
The implementation of GST was of great concern for
FMM members. FMM had successfully advocated for
a subsidy for SMEs for GST software and negotiated
affordable GST-related consultancy packages.
Members were called upon to continuously
improve productivity, upgrade and automate
their manufacturing processes and to remain lean
and competitive in responding to the challenges.
The report of the Council and Statement of
Accounts for financial year ended June 30, 2014
were unanimously approved and adopted by the
members present. At the meeting, Tan Sri Dato’
Soong Siew Hoong and Dato’ OK Lee were
The Annual General meeting in progress
FMM President Dato’ Saw Choo Boon addressing FMM members at the Annual General Meeting
Jan – Feb 2015 | BIA@FMM
05
SPECIAL FEATURE
FMM COUNCIL MEMBERS 2014/2015
President
Dato’ Saw Choo Boon
Shell Refining Co (FOM) Bhd
Immediate Past President
Tan Sri Datuk Yong Poh Kon
Royal Selangor International
Sdn Bhd
Vice-Presidents
Dato’ (Dr) Ir Andy Seo Kian Haw
Alphaprima Engineering Sdn Bhd
YM Raja Dato’ Abd Aziz bin Raja
Muda Musa
Johan Ceramics Berhad
Davies Danavaindran
Radosh Engineering & Industrial
Sdn Bhd
Tan Sri Dato’ Sri Lim Wee Chai
Top Glove Sdn Bhd
Council Members
Yeow Teck Chai
Amsteel Mills Sdn Bhd
Tan Sri Cheng Yong Kim
Antara Steel Mills Sdn Bhd
Jacob Lee Chor Kok
Asli Mechanical Sdn Bhd
Tuan Haji Othman Abdul Rani
CMS Cement Sdn Bhd
Dato’ Tan Boon Pun
Greatpac Sdn Bhd
Dato’ Nathan K Suppiah
Isus Dentomedic Industries Sdn Bhd
Tan Sri Dato’ Soong Siew Hoong
Kejuruteraan Wang Yuen Sdn Bhd
Abdul Samad Ibrahim
Kulitkraf Sdn Bhd
Datuk Leow Chong Howa
LB Aluminium Berhad
Wong Siew Yap
Linde Malaysia Sdn Bhd
Ir A K Woo
Master Jaya Engineering Sdn Bhd
Alois Hofbauer
Nestle Manufacturing (Malaysia)
Sdn Bhd
Dr Neoh Vee Heng
NETC Asia Resources Sdn Bhd
Dato’ O K Lee
Penfibre Sdn Bhd
Noraini bt Soltan
Sipro (Malaysia) Sdn Bhd
Dato’ Haji Mizanur Rahman Ghani
Tioxide (Malaysia) Sdn Bhd
Peter Lim Yoke Cheong
Titan Metal Works Sdn Bhd
John Lee Boon Haw
Ummi Medical & Life Sciences
Sdn Bhd
Chan Cheu Leong
Wah Seong Corporation Berhad
Datuk Dr Wan Mohamed bin
Wan Embong
WSA Capital Corporation Sdn Bhd
Branch Committee Chairmen
Dato’ Dr Haminnuddin Abd Hamid
(Kedah/Perlis Branch Committee)
Ideal Healthcare Sdn Bhd
Dato’ Dr Ooi Eng Hock
Penang Branch Committee
Menara Kerjaya Fasteners Sdn Bhd
Dato’ Gan Tack Kong
Perak Branch Committee
Ngan Yin Groundnut Factory
Sdn Bhd
Dato’ Soh Thian Lai
Selangor Branch Committee
Star Shine Industries Sdn Bhd
Datuk Mohamed Arsad bin Sehan
Negeri Sembilan Branch Committee
PureCircle Sdn Bhd
Datuk Jeffery Ong
Malacca Branch Committee
Oriental Food Industries Sdn Bhd
Capt (R) Haji Abdullah Shariff
Johor Branch Committee
Lam Soon Edible Oils Sdn Bhd
Dato’ Haji Mas’ut bin A. Samah
Eastern Branch Committee
Pascorp Paper Industries Berhad
Group photograph of the Council Members for 2014/2015
06
BIA@FMM |Jan – Feb 2015
SPECIAL FEATURE
WINNER OF THE MANUFACTURER OF THE
YEAR AWARD – LARGE COMPANY
The Manufacturer of the Year 2014 Award –
Large Companies was awarded to New Star
Food Industries Sdn Bhd.
New Star Food Industries Sdn Bhd (NSF) is a 100%
Malaysian owned company. It is a manufacturer
of wheat flour-based snacks, and other related
foodstuff. Incorporated in 1976, the company has
transformed from a simple traditional family business
into an enterprise with automated production lines
and quality management system. Its products are
marketed under “SNEK KU”.
NSF’s machinery and equipment are fabricated
internally through in-house R&D together with
technical support from suppliers. NSF exports to
more than 20 countries including the Asian Region,
Middle East, Australia and New Zealand.
The award was presented to Lim Kim Poon,
Operations Manager cum Management
Accountant by YB Datuk Paul Low, Minister in
the Prime Minister’s Department who was the
Guest-of-Honour at the FMM Annual Dinner on
November 27, 2014.
Lim Kim Poon, Operations Manager cum Management Accountant
of New Star Food Industries Sdn Bhd (right) receiving the Award
from YB Datuk Paul Low
New Star Food Industries Sdn Bhd’s staff celebrate after winning the award
Jan – Feb 2015 | BIA@FMM
07
NEWS HIGHLIGHTS
08
BIA@FMM |Jan – Feb 2015
NEWS HIGHLIGHTS
Jan – Feb 2015 | BIA@FMM
09
NEWS HIGHLIGHTS
VISIT TO METALEX 2014 IN BANGKOK,
THAILAND
FMM
led a delegation of 21 members to the METALEX exhibition held in BITEC, Bangkok, Thailand from
November 19 – 22, 2014. The four-day show culminated with more than 76,000 visitors from ASEAN and other
countries. A wide range of efficient innovations were assembled to offer the best solutions to the visitors.
New models of machinery were displayed for the first time and live demonstrations were held to display the
full performances of these technologies. Conference rooms were filled with prestigious speakers with equally
interested participants.
Delegates also took the opportunity to attend the METALEX NANO Forum where experts from organisations
working in the nanotechnology field shared visions, best practices and experiences with the delegates.
An exclusive factory visit to Honda Automobile (Thailand) Co. Ltd was also arranged for the business
delegates to tour the production assembly line.
Delegates visiting the Honda Automobile (Thailand) Co. Ltd in Bangkok
PROMOTING MALAYSIA-SINGAPORE TRADE
AND INVESTMENT TIES
The 12th Joint Malaysia-Singapore Business Council
was hosted by Malaysia on December 2, 2014 at
Port Dickson. Co-chaired by Dato’ Lim Say Chong
from Malaysia and Cheng Wai Keung from
Singapore, the meeting was attended by over
37 Council members and invited guests from
both countries.
10
BIA@FMM | Jan – Feb 2015
Some of the key issues discussed included impact
of the recent increase in toll rates which had
resulted in a drop in tourist arrivals in Johor,
introduction of RTS and High Speed Rail which
would facilitate movement of travellers and reduce
vehicle congestion at the Causeway and Second
Link and IRDA’s plans to increase the manpower
requirements in Iskandar Malaysia.
NEWS HIGHLIGHTS
FINANCIAL AND EXPORT ASSISTANCE
FOR MANUFACTURERS, TRADERS AND
SERVICE PROVIDERS
The FMM Business Best Practices is a series of
seminars with invited speakers from private
companies and/or government agencies who
share their know-how on best practices in doing
business. Resource persons and speakers are
invited from both the private and public sectors.
The 3rd seminar of the FMM Business Best Practices series
focussed on Financial and Export Assistance for
Manufacturers, Traders and Service Providers was held
on November 18, 2014. Over 90 participants comprising
Sales & Marketing and Finance Managers/Executives
as well as General Manangers, Managing Directors
and Chief Executive Officers gained updates on
financing options offered by EXIM Bank and Malaysia
External Trade Development Corporation.
Participants showed interests in the Go-Ex and Mid-Tier
Companies Development programmes offered
by MATRADE. Guna Seelan Balakrishnan, Principal
Assistant Director of Ministry of International Trade
and Industry (MITI) provided a comprehensive briefing
on the impact of ASEAN Economic Community on
Malaysian companies.
A participant raising a question on Go-Ex programme
offered by MATRADE
From left: Guna Seelan from MITI, Azrin Azizuddin from EXIM Bank, Dr. Yeoh Oon Tean, FMM CEO and Wan Ahmad Tarmizi and
Omar Mohd Salleh from MATRADE
12
BIA@FMM | Jan – Feb 2014
NEWS HIGHLIGHTS
CAPTURING BUSINESS OPPORTUNITIES
IN OMAN
FMM organised a briefing on Capturing Business Opportunities in Oman on November 6, 2014 which
was attended by 131 participants. The objective of the briefing was to promote business opportunities
available to Malaysian companies in the food, health, oil & gas and construction sectors in Oman.
The briefing was graced by H.E. Janab Sayyid, Ambassador of the Sultanate of Oman to Malaysia.
Oman is comparatively large, being the
second-largest country on the Arabian
Peninsula and is integrated regionally and
internationally. It maintains close ties with
countries such as the UK and the US. Oman
is situated at the entrance to the Gulf in
the middle of the East-West trade routes.
This ensures easy access to markets in the
Middle East, India, Southeast Asia, Africa
and Europe. It is among the few countries
in the world that is considered ideal for
long-term investments due to modern
infrastructure, a strong industrial base, a
liberal investment environment, a stable
government with transparent corporate
governance, the presence of institutions that
protect investors and ensure their access to
the market and laws and regulations that
are business friendly.
H.E. Janab Sayyid, Ambassador of the Sultanate of Oman
giving the welcoming address
At the briefing, H.E. Janab Sayyid highlighted
that Oman’s major transformation in terms
of economic development is evident with
Oman’s five year plan for new projects with
allocations up to USD78 billion for turnkey
investment projects. Among these mega
projects are the USD10 billion national
railway projects, USD4.2 billion for Muscat
International Airport, USD3.1 billion for
seaports and USD1.5 billion for Sultan Qaboos
Medical City.
As a follow-up to the briefing, FMM will be
coordinating the following exhibitions in Oman
for the benefit of Malaysian companies.
• Oman Refining & Petrochemical Exhibition
and Conference, March 16 – 18, 2015
• The BIG Show, March 30 – April 2, 2015
• Energy & Water Oman, May 19 – 21, 2015
• Food & Hospitality Oman, September 7 – 9,
2015
• Oil & Gas West Asia, March 21 – 23, 2016
Members networking at the Capturing Business Opportunities in Oman
after the briefing session
14
BIA@FMM | Jan – Feb 2015
Members who are interested in exploring the
Omani market may contact Danielle Chin
from the FMM Secretariat at tel: 03-62867307
or email: [email protected].
NEWS HIGHLIGHTS
FMM COLLABORATES WITH MPC TO
INTRODUCE LEAN MANAGEMENT SYSTEM
Congratulations to the 10 FMM members
selected for the pilot project of Malaysian
Productivity Corporation (MPC) – FMM Lean
System Development Programme.
The event kicked off with a launching ceremony
on November 19, 2014 when the companies were
presented with letters of offer and lean badge by
Dato’ Mohd Razali Hussain, Director-General of MPC
and Datuk Dr Wan Mohamed bin Wan Embong,
Chairman of FMM Services Sdn Bhd.
The first visit was held mainly to explain the modus
operandi of the lean consulting activity to senior
management staff of the company, to analyse
the current condition of the factory and to obtain
data on material and information flow chart of the
companies. The data would then be mapped with
problematic factors and discussed with the companies.
Applications are now open to members who are
keen to participate in the second phase of this project.
For more information, please contact Jess Chong
from the FMM Secretariat at [email protected].
The project, a collaboration between FMM and
Malaysia Productivity Corporation, aims to promote
lean management among FMM members given
the rising cost of doing business and the necessity
for companies to review their operations and
introduce lean management. The Lean programme
has proven to benefit companies with immeasurable
improvements in work process efficiency and bottom
line performance.
Following the launch of the project, visits were
arranged for the lean consultant to meet selected
companies in the project. Visits were made to
Kulitkraf Sdn Bhd and Elite Stationery Sdn Bhd on
November 26 and December 3, 2014.
Discussion held between consultant and staff of
Kulitkraft Sdn Bhd
Visit to Yeong Chaur Shing Paper Mill Industry Sdn Bhd by
FMM consultant on December 19, 2014
16
BIA@FMM | Jan – Feb 2014
Dato’ Mohd Razali Hussain, Director-General of Malaysian
Productivity Corporation (1st left) and Datuk Dr Wan
Mohamed bin Wan Embong, Chairman of FMM Services
Sdn Bhd (2nd left) presenting the letter of acceptance to
representative from MJ Manufacturing Sdn Bhd. Looking on
is Dr Yeoh Oon Tean, FMM CEO
EVENTS IN PICTURES
Selangor Branch’s Goods and Services Tax (GST) Onsite
Registration for its members, November 3, 2014
Interfood Indonesia 2014, Jakarta Indonesia, November 12 – 15, 2014
Briefing on Capturing Business Opportunities in Oman, November 6, 2014
FMM Annual General Meeting, November 27, 2014
18
BIA@FMM | Jan – Feb 2015
Presentation on Housewives Enhancement And Reactivate
Talent Scheme (HEARTS) by Human Resources Development
Fund to Women in Business Committee, November 7, 2014
FMM Penang Branch’s FMM Heritage Gallery Project, November 12, 2014
EVENTS IN PICTURES
FMM Annual Dinner, November 27, 2014
Launching ceremony of MPC-FMM Lean System Development
Programme, November 19, 2014
FMM Perak Branch’s Annual Dinner, November 3, 2014
COSME Tokyo, October 20 – 22, 2014
Meeting between FMM Sarawak DOSH Sarawak, November 20, 2014
Jan – Feb 2015 | BIA@FMM
19
NEWS HIGHLIGHTS
MyCC – FMM COMPETITION
COMPLIANCE COLLABORATION
The Malaysia Competition Commission (MyCC) and Federation of Malaysian Manufacturers (FMM) jointly
hosted a briefing to re-introduce the competition law compliance guidelines handbook and launch the
compliance checklist on November 25, 2014. MyCC first launched the Compliance Guidelines handbook
in 2013. The briefing on “Better Business with Competition Compliance” was attended by 120 members.
or private actions, possibly obtain a reduction in
penalties, and enhance corporate governance thus
boosting the image and viability of the enterprise.
FMM President, Dato’ Saw Choo Boon stressed that
the Competition Act 2010 aims to promote market
competition and ensures that enterprises compete
freely and fairly. Competition forces enterprises to be
more efficient and innovative, and be responsive to
consumer demand by offering better quality products
and services, and wider choices at competitive prices.
Compliance to the Act is therefore essential.
From left: Steven Aroki, Tan Sri Datuk Yong Poh Kon, FMM Immediate
Past President, Shila Dorai Raj CEO of MyCC, Tan Sri Dato’ Seri Siti
Norma Yaakob Chairman of MyCC, Dato’ Saw Choo Boon and
Prof Dato’ Dr. Sothi Rachagan, member of MyCC
MyCC Chairman Tan Sri Dato’ Seri Siti Norma Yaakob
exhorted business owners to take compliance
with competition law seriously at all levels and
called for a culture change to support such effort.
Tan Sri added that despite the 18-month moratorium
before the Act came into force in January 2012
and intense advocacy efforts by the MyCC,
many businesses appear to be unaware of the
competition laws. There are serious risks to businesses
when they do not comply with the law such as
damage to reputation, hefty fines and costs.
Tan Sri Dato’ Seri Siti Norma Yaakob called on the
industry to undertake a thorough review of trade
practices in their compliance programme to
identify potential risks of infringement.
“There is no ‘one size fits all’ competition law
compliance programme,” added Tan Sri Dato’ Seri
Siti Norma Yaakob. “Do not accept ‘off-the-internet’
compliance programmes that may not address the
risks of your business. Each business must assess its
own compliance risks and determine the steps it
requires to take in order to comply with the law.”
The MyCC Chairman also mentioned that apart
from avoiding reputational damage, an effective
compliance programme will help an enterprise
to avoid incurring costs brought on by investigation
20
BIA@FMM | Jan – Feb 2015
He added that FMM was pleased to work with MyCC
to draw up a checklist which summarises the MyCC
Compliance Guidelines handbook into a “To Do”
checklist with recommended reviews and actions to
be taken. The checklist is not only useful in developing
a competition compliance programme but also for
review of existing programmes to ensure they are
robust. He hoped that with the checklist, more
companies will be encouraged to build a strong
culture of compliance to the Competition Act.
The self-assessment checklist, available on FMM
website, uses scoring to help measure the extent
of compliance with competition issues and a
performance rating for companies.
MyCC also took the opportunity to update members
on competition compliance, lessons learnt through
cases and bid rigging which is a form of price fixing
and allocation of markets.
NEWS HIGHLIGHTS
APPRENTICESHIP PROGRAMME –
COLLABORATION BETWEEN FMM AND
MINISTRY OF EDUCATION
The Apprenticeship Programme, a collaboration between FMM and the Ministry of Education (MOE) is
a fast-track effort of the government to develop skilled workers to meet the future manpower need of
industry. A Working Group on Apprenticeship Programme, chaired by FMM Vice President, and Chairman
of the Human Resources Management Working Committee, Davies Danavaindran was established in
June 2013 with the objective of operationalising the implementation of the Apprenticeship Programme.
The Working Group also worked together with MOE to address industry concerns such as safety and legal
age issue in developing a model acceptable by FMM.
Under the Programme, MOE will enrol the students who have
demonstrated interest to pursue their secondary education via the
vocational route after the completion of Form Three. The students
will undergo the Apprenticeship Programme, comprising 30% theory
which cover academic subjects and basic vocational skills theory,
taught at the Vocational Colleges and 70% practical training at the
industry. The duration of the programme is two years. At the end of
the programme, students will be trained in the respective industry
skills up to Level I and II of the Malaysian Skills Certification.
The collaboration will be sealed through a Memorandum of
Agreement between MOE and the company which will be taking
in the students for the practical training. Companies are expected
to provide the training facilities, including training room and
equipment, and training consumables for the period of practical
training, whilst ensuring safety precautions, and safety equipment
are provided for the students in line with the safety policy and
work procedures of the organisation. The students are expected
to be guided by the company’s coach or training personnel in
achieving the industry standard of the skills that they are trained.
Discussion on the Apprenticeship Programme in session
A pilot run of the Apprenticeship Programme will be implemented
pending confirmation from MOE. The success of this pilot project
will pave the way to develop industry-relevant skilled workers to
meet the needs of industry in the future.
Upcoming Trade Fairs – Register Now
Trade Fairs
•
•
•
•
•
•
•
•
•
•
Hannover Fair
Beauty Eurasia
Travel Catering Expo 2015
Subcon Thailand*
IFEX Philippines
Propak Asia*
Africa’s Big Seven
SAITEX
Food Taipei
Manufacturing Expo*
Date
Apr 13 – 17, 2015
Apr 30 – May 2, 2015
May 10 – 12, 2015
May 13 – 16, 2015
May 11 – 24, 2015
Jun 17 – 20, 2015
Jun 21 – 23, 2015
Jun 21 – 23, 2015
Jun 24 – 27, 2015
Jun 24 – 27, 2015
Venue
Hannover, Germany
Istanbul, Turkey
Dubai, UAE
Bangkok, Thailand
Manila, Philippines
Bangkok, Thailand
Johannesburg, South Africa
Johannesburg, South Africa
Taipei, Taiwan
Bangkok, Thailand
For more information, please call Clarissa, Danielle or Wee Leng from FMM Secretariat at 03-6286 7200
Note:* Complimentary 3 nights stay in a 5-star hotel on twin-sharing basis
22
BIA@FMM | Jan – Feb 2015
NEWS HIGHLIGHTS
GS1 DATAMATRIX
The barcode is the key to product information. Every scan facilitates the speedy retrieval and accurate
transmission of information. The GS1 System of standardised item identification and bar coding provide a
framework that allows products, services and information to move efficiently for the benefit of businesses
and the improvement of people’s lives, everyday, everywhere.
The use of GS1 barcodes has progressed and
expanded over the years and its application is no
longer just for grocery products. Sectors such as
healthcare, defence, telecommunication and
agricultural are also using the GS1 System of item
identification and bar codes.
Today, more than 1.5 million companies in
150 countries across all industry sectors use the
GS1 standards in their daily communications.
This represents a total of over 6 billion scanning
transactions a day! Which is more than
Facebook (1.28 billion users per month) and
Twitter (500 million messages per day).
With the widespread application of the GS1
standards, there is a need for a new barcode
symbology that can cater to the needs of industries
that require additional information on the labels but
are constrained by space.
With this in mind, GS1 has come up with the
DataMatrix which is a two dimensional (2D) bar code
which can encode more information but using a
smaller space. The GS1 DataMatrix is a 2D bar code
symbol specified for use by the GS1 System.
The GS1 DataMatrix can holds
large amounts of data in a
relatively small space as compared
to traditional linear barcodes,
and is therefore becoming
increasingly popular for a wide
range of applications including aerospace,
pharmaceutical, U.S.A. Department of Defense,
and medical device manufacturing.
GS1 DataMatrix barcodes are also used on trade
items that have limited space for product marking
such as healthcare items not intended to pass
through retail point-of-sale (POS) and for parts that
need to be tracked in a manufacturing process.
Only camera based scanners (2D imagers) can
read and decode GS1 DataMatrix barcodes.
In addition to their relatively small size, GS1
DataMatrix barcodes utilise sophisticated error
correction algorithms to compensate for loss of
missing data or code damage. This means that print
quality and contrast are much less critical than with
traditional linear barcodes. With error correction,
24
BIA@FMM | Jan – Feb 2015
GS1 DataMatrix barcodes can reconstruct up
to 20% of damaged characters, while traditional
barcodes have no error correction capabilities.
GS1 DataMatrix barcodes are suitable for nearly all
printing processes from offset to thermal transfer,
and even direct marking by ink-jet or laser. The
symbol offers readability even with low contrast,
and is readable in a 360 degree orientation.
About GS1
GS1 is a neutral and leading global organisation
dedicated to the design and implementation of
global standards and solutions to improve the
efficiency & visibility of the supply and demand
chains globally and across sectors. The GS1 system
of standards is the most widely used supply chain
standards system in the world.
In Malaysia, GS1 System is managed by GS1 Malaysia
operating under the aegis of FMM.
UPDATES
NATURAL GAS PRICE REVIEW FOR
NON-POWER SECTOR IN PENINSULAR
MALAYSIA & ELECTRICITY TARIFF MAINTAINED
UNTIL JUNE 2015
The Energy Commission (ST) had announced on
October 29, 2014 a review of natural gas tariff for the
non-power sector in Peninsular Malaysia effective
November 1, 2014. The new pricing is:
Tariff
Average
Current
Category
Consumption
Tariff
(RM/mmBtu)
(mmBtu)
(RM/mmBtu)
A
Domestic
19.52
19.52
B
0 – 200
20.61
21.00
C
601 – 5,000
17.64
18.19
D
5,001 –
50,000
18.14
18.55
E
50,001 –
200,000
19.00
19.44
F
200,001 –
750,000
19.18
19.63
L
> 750,000
19.65
20.11
19.32
19.77
Average
26
New Tariff
Effective
November 1
2014
BIA@FMM | Jan – Feb 2014
On average, natural gas pricing has increased by
2.33% or RM0.45/mmBtu. The natural gas price review
is in line with the Government’s energy subsidy
rationalisation programme to review natural gas
prices and electricity tariff every six months.
Since January 2014, electricity tariff is reviewed
under the Incentive Based Regulation framework
and Imbalance Cost Pass-Through (ICPT)
mechanism, which allows a review every six months.
On November 5, 2014, the Ministry of Energy, Green
Technology & Water (KeTTHA) announced the
Government’s decision to maintain electricity tariff
until June 2015, through savings from renegotiations
with the first generation independent power
producers and maintaining the current gas price
supplied by Petronas to the power sector. The move
is also to allow industries to prepare for future
rationalisation exercises. Consumers are urged to
use power prudently and to reduce wastage by
using energy efficient appliances and implementing
energy efficiency and conservation measures.
For more information, please refer to the Ministry’s
press statement on the ICPT for electricity tariff
review in Peninsular Malaysia.
UPDATES
Jan – Feb 2015 | BIA@FMM
27
BRANCH EVENTS
Penang
The Branch organised the following activities:
• 45th Annual Dinner on October 17, 2014. A total of
340 guests from member companies, government
departments and trade associations attended
this annual event. The Guest-of-Honour for the
evening was the Chief Minister of Penang YAB
Tuan Lim Guan Eng.
• Briefing on The New Factories and Machinery
(Special Scheme of Inspection) (Risk-Based
Inspection) Regulations 2014 on October 28, 2014.
• Seminar on Step-By-Step Guide on Implementing
GST on November 3 & 4, 2014 conducted by
Wan Leng Whatt, former Senior Deputy Director of
Customs, Royal Malaysian Customs Department.
• HRM Updates & Forum on November 20, 2014
which was sponsored by Unit Perancang Eknomi
Penang. The invited guest was Yip Hon Choong,
Managing Director of MYwave Sdn Bhd.
From left: Former Branch Committee Chairman, Dato’ Khoo Cheok Sin,
Chief Minister of Penang YAB Tuan Lim Guan Eng and FMM President,
Dato’ Saw Choo Boon at the Branch’s Annual Dinner
Malacca
The Branch’s activities included the following:
• Seminar on Hazard Identification Risk Assessment and
Determining Control Cost (HIRADC) on November 20,
2014 which was facilitated by Abd Malek Omar.
Participants learnt how to prepare the HIRADC by
defining the types of hazards, analysing the risks
associated with the hazards and the appropriate
ways to eliminate or control the hazards.
• FMM HR/IR advisor Heng Poh Suan briefed
participants on November 10, 2014 on the
wider scope of employee absenteeism, causes
and types of absenteeism and how to manage
absenteeism effectively at the workplace.
• Seminar on Updates on Budget 2015 by Yong Mei
Sim, Principal Assistant Director, Inland Revenue
Board Bukit Mertajam.
• 33 participants from 14 companies visited Nestle
Manufacturing (M) Sdn Bhd on November 18, 2014.
The management team from Nestle shared their
Safety and Health, Education and Training and
Lean practices.
Members who participated in the visit to Nestle Manufacturing (M) Sdn Bhd
28
BIA@FMM | Jan – Feb 2015
Group discussion during the Seminar on Hazard Identification
Risk Assessment and Determining Control Cost held on
November 20, 2014
BRANCH EVENTS
Selangor
The Branch organised the following activities:
• A briefing on 2015 National Budget on October 15,
2014 with 35 participants in attendance. Adrian Yeo
of Adrian Yeo & Co briefed members on the
National Budget 2015 and other topics including
impact of GST on Business.
• 28th Annual General Meeting of the Branch was
held on October 15, 2014 where the following
Office Bearers for 2014/2015 were elected:
Branch Committee Chairman
Dato’ Soh Thian Lai, Star Shine Industries Sdn Bhd
Branch Committee Immediate Past Chairman
Tan Sri Dato’ Prof Dr James Alfred, Shiroshi Resource
(M) Sdn Bhd
Branch Committee Vice-Chairmen
Dato’ Nathan K Suppiah, Isus Dentomedic Industries
Sdn Bhd
A demonstration on self-defense by Malaysian Crime
Prevention Foundation
Dr Neoh Vee Heng, NETC Asia Resources Sdn Bhd
Jacob Lee Chor Kok, Asli Mechanical Sdn Bhd
Abdul Samad Ibrahim, Kulitkraf Sdn Berhad
• A Programme on SOCSO Benefits and Claims
Procedure for Employers held on October 29,
2014. It was conducted by Tn Hj Zainal Bin Ismail,
Timbalan Pengarah PERKESO Selangor for human
resource practitioners to understand in depth
SOCSO’s contribution, deduction, benefits and
claims procedure.
• Briefing on New Mechanism for Import Duty & Sales
Tax Exemption on Machinery, Equipment, Spare Parts
& Consumables on November 14, 2014. Speakers
were from Malaysian Investment Development
Authority and Royal Malaysian Customs Department.
• 2nd second session of Goods and Services Tax
Onsite Registration for members in Selangor on
November 3, 2014. The event was jointly organised
with Jabatan Kastam DiRaja Malaysia Selangor.
• Seminar on GST: A Step by Step Guide on
Implementing GST on November 17 & 18, 2014
conducted by Wan Leng Whatt, former Senior
Deputy Director of Royal Malaysian Customs to
assist FMM members to better understand the
requirements of the GST System in Malaysia, its
impact on business operations and the preparation
required to comply with the GST implementation.
• Security Seminar on Crime Prevention on November 5
& 6, 2014 to increase awareness on crime prevention
strategies, measures, actions for better crime
prevention and also to provide an in-depth analysis
of the challenges and issues related to crime.
• Workshop on Complying with Personal Data
Protection Act 2010 on November 19, 2014 to create
awareness on the salient provisions of the Act; obtain
ideas on drafting the required notices, consents
and to seek clarification on compliance issues.
Group photograph of the new Office Bearers of the Branch
30
BIA@FMM | Jan – Feb 2015
Participants listening attentively to Tn Hj Zainal Bin Ismail,
Timbalan Pengarah PERKESO Selangor
BRANCH EVENTS
Perak
The Branch organised the following activities:
• Seminar on GST: A Step By Step Guide on
Implementing GST on October 13 & 14, 2014.
The seminar was attended by 230 participants
from 93 companies. Wan Leng Whatt, Former
Senior Deputy Director of Customs Malaysia
briefed the participants on the various aspects
of GST implementation.
• Seminar on Self Declaration Mechanism for Import
Duty and/or Sales Tax Exemption for Machinery,
Equipment, Spare Parts and Consumables on
November 19, 2014. Officers from the Royal
Malaysian Customs Perak and Malaysian
Investment Development Authority (MIDA) briefed
the participants on the requirements, application
procedures and the online submission system.
The seminar was attended by 62 participants
from 38 companies.
• Tax Seminar on the 2015 Budget – the GST Year.
Yong Mei Sim, Principal Assistant Director of
the Inland Revenue Board, Bukit Mertajam
highlighted the Budget 2015 and the tax
implications of buying and selling property.
The seminar was attended by 62 participants
from 44 companies.
• 46th Annual General Meeting of the Branch on
October 16, 2014 where the following Office
Bearers for 2014/2015 were elected:
Branch Committee Chairman
Dato’ Gan Tack Kong, Ngan Yin Groundnut
Factory Sdn Bhd
The participants who attended the Step By Step Guide on
Implementing GST Seminar
Branch Committee Vice-Chairmen
Francis Chok Yin Fatt, Yee Lee Edible Oils Sdn Bhd
Tan Seow Heng, Sidney Industries Sdn Bhd
Edmund Wong Khin Kong, Asia Printed Circuit
Sdn Bhd
Chua Kay Lin, Vinico Sdn Bhd
• 46th Annual Dinner on November 3, 2014 with
Menteri Besar of Perak, Datuk Seri Diraja Dr. Zambry
bin Abdul Kadir as the Guest of Honour. The dinner
was attended by members and other dignitaries
from the public and private sectors.
Group photograph with Menteri Besar of Perak, Datuk Seri Diraja Dr. Zambry bin Abdul Kadir (front row 3rd from right)
at the Branch Annual Dinner
Jan – Feb 2015 | BIA@FMM
31
BRANCH EVENTS
Kedah/Perlis
The Branch organised the following activities:
• Workshop on Trade Forms & Application
Procedures Updates on October 16, 2014
conducted by Lim Chee Hau and Ariffatri
Mohammad from MITI, Kuala Lumpur and Fatimah
Talip from Dagang Net Technologies Sdn Bhd.
The workshop focused on recent changes
and updates of trade forms and application
procedures and also the Free Trade Agreements.
• FMM Safe Motorcycle Riding Campaign 2014
on October 28, 2014 held at MODENAS Gurun
which attracted a total of 200 participants
comprising employees of MODENAS and nearby
industries and students from Vocational College
Ramu Govindaraju (left) demonstrated the proper use of
fire extinguisher
Sungai Petani and Politeknik Sultan Abdul Halim.
The campaign also featured events and
demonstrations from Jabatan Pertahan Awam
Malaysia, Ministry of Health, Pantai Hospital,
Jabatan Pengangkutan Jalan and Jabatan
Keselamatan Jalan Raya.
• FMM Safety Workshop: ERT & Handling of Chemical
Spillage on November 26 – 27, 2014 which was
conducted by Ramu Govindaraju Fire Fighting Officer,
BOMBA Malaysia. The workshop was organised to
create awareness on Emergency Rescue Team
which is responsible for the correct handling of
chemical spillage.
• Karnival Kerjaya SL1M – Kedah on November 11, 2014
jointly organised by FMM and Northern Corridor
Implementation Authority, Skil Latihan 1 Malaysia
Coordinator, Jobs Malaysia and Unit Perancangan
Ekonomi Negeri. The carnival was officiated by
Menteri Besar Kedah, YB Dato’ Sri Haji Mukhriz
Tun Mahathir.
• Jointly organised a Clean-Up Campaign at
Bakar Arang Industrial Area on November 8, 2014
with State Council and the Malaysian Industrial
Development Authority. Present at the campaign
were YB Dato’ Dr. Ku Abd Rahman Bin Ku Ismail,
State Executive Council Industrial & Investment
and Abdul Mukthi Abu Bakar, Director of MIDA
Kedah/Perlis.
Eastern
The Branch’s activities included the following:
Branch Committee Chairman
• Received a courtesy call from Mej. (K) Dato’ Haji
Abu Bakar bin Ahmad, Director of Politeknik Sultan
Haji Ahmad Shah on October 1, 2014.
Dato’ Haji Mas’ut bin A Samah, Pascorp Paper
Industries Berhad
• 20th Annual General Meeting of the Branch held
on October 15, 2014 where the following Office
Bearers for 2014/2015 were elected:
Sherene Lim Shin Wei, BASF PETRONAS Chemicals
Sdn Bhd
Branch Committee Vice-Chairmen
Ng Ghim Eng, Grandee Biotechnologies Sdn Bhd
Kumar Ramu, Tioxide (Malaysia) Sdn Bhd
Dato’ Haji Lahuree bin Sudiran, W. R. Grace
Specialty Chemicals (Malaysia) Sdn Bhd
• Business Opportunities Networking Session with
MIDA Pahang on Tax Exemption Application
Procedure on October 30, 2014. A total
of 45 participants attended the programme.
• The 1st Pekan IPMC meeting for 2014 on November 19,
2014. The meeting was jointly chaired by YH Dato’
Haji Ahmad Salhi bin Abdul Latiff, Pekan District
Council Chief and the Branch Committee Chairman,
Dato’ Haji Mas’ut bin A. Samah.
Group photograph of the new Office Bearers of the Branch
32
BIA@FMM | Jan – Feb 2015
BRANCH EVENTS
Johor
The Branch’s activities included the following:
• 46th Annual General Meeting of the Branch on
October 14, 2014 where the following Office
Bearers for 2014 / 2015 were elected:
Branch Committee Chairman
Capt. (R) Haji Abdullah Shariff
Lam Soon Edible Oils Sdn Bhd
Branch Committee Vice-Chairmen
Gerard R. Sankar
Taguchi K. Rubber (M) Sdn Bhd
Eiap Eng Khoon
Oriental Assemblers Sdn Bhd
Saw Seong Ho
Panerai Engineering Sdn Bhd
Lim Tau Boon
All Cosmos Industries Sdn Bhd
• The first Branch Committee Meeting of 2014/2015
on October 14, 2014 where the committee
approved the establishment of Nusajaya Regional
Committee (NRC). The NRC would serve members
located in the Nusajaya and Gelang Patah areas.
The establishment of NRC would bring FMM closer
to these new members and serve them better.
• Dialogue Session between TNB and FMM members
on November 26, 2014. The 32 FMM member
delegation was led by the Branch Committee
Chairman, Capt (R) Hj Abdullah Shariff. The
dialogue session was chaired by Yusof Ibrahim, the
State General Manager of TNB Johor (Distribution).
• Seminar on GST for Manufacturers: A Step by Step
Guide of Implementing GST on November 26 and 27,
2014. A total of 60 FMM members attended the
seminar which was conducted by Wan Leng What,
former Senior Deputy Director from the Royal
Malaysian Customs Department.
• Courtesy call on Azhar Omar, Vice President of
Telekom Malaysia Johor on October 9, 2014.
The Branch’s delegation was led by the Branch
Committee Chairman, Capt (R) Hj Abdullah Shariff.
Issues affecting members such as absence of Unifi,
internet stability and programme collaboration
were discussed.
Group photograph of the new Office Bearers of the Branch
• Participated in the Manufacturing Solution Expo
2014 on October 8, 2014 organised by the
Singapore Manufacturing Federation (SMF).
16 FMM delegates participated in the exhibition
which was officiated by S. Iswaran, Minister in
Prime Minister’s Office, 2nd Minister for Home
Affairs and 2nd Minister for Trade and Industry.
Sarawak
The Representative Office’s activities included
the following:
• Received a courtesy visit from the High
Commissioner of Bangladesh, A.K.M Atiqur
Rahman on October 20, 2014. Tn. Hj Othman
Abdul Rani, Chairman of the Representative
Office received the delegation.
• Organised two factory visits to CMS Cement
Sdn Bhd and KSC Factory Sdn Bhd for Institute’s
students of the Certificate in Safety and Health
Officer (CISHO) on November 12, 2014.
• Meeting with the Director of DOSH Sarawak,
Ir. Hj. Mohd Hatta Bin Zakaria on November
20, 2014 to discuss members’ concern on
safety issues.
Tn. Hj Othman Abdul Rani, (left) receiving a token of appreciation
from A.K.M. Atiqur Rahman (2nd from right)
Jan – Feb 2015 | BIA@FMM
33
BRANCH EVENTS
Negeri Sembilan
The Branch organised the following activities:
• Annual Dinner on October 15, 2014 which was
attended by over 300 representatives from public
and private sector companies. The dinner was
graced by the Menteri Besar of Negeri Sembilan,
YAB Dato’ Seri Utama Hj Mohamad bin Hasan.
The highlight of the dinner was the presentation
of the Long Serving Awards to members and top
FMM Institute contributors.
• The Opening Ceremony of the Branch’s new
office on November 3, 2014 was officiated by
FMM President, Dato’ Saw Choo Boon.
• Annual General Meeting of the Branch on
November 3, 2014 where the following Office
Bearers for 2014/2015 were elected:
Branch Committee Chairman
Datuk Mohamed Arsad, PureCircle Sdn Bhd
Immediate Past Branch Committee Chairman
Steven Aroki, Smane (M) Sdn Bhd
Branch Committee Vice Chairmen
Penny Wong, Seremban Engineering Berhad
Baskaran Madhavan Nair, Cordage Industrial Rope
Sdn Bhd
Radzi Abdul Rashid, Akzo Nobel Paints (M) Sdn Bhd
Aminudin Kamarudin, SKF Bearing Industries (M)
Sdn Bhd
FMM President Dato’ Saw Choo Boon, (right) presenting a token of
appreciation to YAB Dato’ Seri Utama Hj Mohamad bin Hasan, Menteri
Besar Negeri Sembilan at the FMM Negeri Sembilan Branch Annual Dinner
New Members (November 2014)
The FMM welcomes the following 22 new members into the organisation – 17 Ordinary Members and
5 Affiliate Members. The majority or 36% are from Selangor, 14% from Federal Territory and 9% from Penang,
Perak and Negeri Sembilan, while the rest are from other states
Ordinary Members
• G-Cast Concrete Sdn Bhd
• George Fischer (M) Sdn Bhd
• GF Technology Sdn Bhd
• HFS Food Solution Sdn Bhd
• Hino Motors Manufacturing Malaysia Sdn Bhd
• Konica Minolta Business Technologies
(Malaysia) Sdn Bhd
• Kuka Robot Automation (Malaysia) Sdn Bhd
• Life Water Industries Sdn Bhd
• Makiansia Engineering (M) Sdn Bhd
• Pro Team Interior Sdn Bhd
• Puremeditech Sdn Bhd
34
BIA@FMM | Jan – Feb 2015
•
•
•
•
•
•
Sinaran Manufacturing Sdn Bhd
Sirijaya Industries Sdn Bhd
SOP Edible Oils Sdn Bhd
Stekken Sdn Bhd
WIKA Instrumentation (M) Sdn Bhd
YKG Automation Sdn Bhd
Affiliate Members
•
•
•
•
•
CCE Maju Holding Sdn Bhd
DNE Forwarding (M) Sdn Bhd
Energy Hallmark Sdn Bhd
Hitachi Asia (Malaysia) Sdn Bhd
OZ Marketing Sdn Bhd