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Page 1: April . 01-05 - MyIEM
Page 2: April . 01-05 - MyIEM

JURUTERA, April 2005 3

BULETIN IEMThe Institution and Dimension are not responsible for anystatements made or opinions expressed by the writers or

reporters in its publication.

The Editorial Board reserves the right to edit all articlescontributed for publication.

Jurutera Monthly Circulation: 15,000 copies

READER’S CONTRIBUTION INVITEDWe invite members and others to submit comments

and articles for publication in the Bulletin.

Please send your contribution to theChief Editor,The Institution of Engineers, Malaysia Bangunan Ingenieur, Lots 60 & 62,Jalan 52/4, Peti Surat 223 (Jalan Sultan),46720 Petaling Jaya, Selangor.Tel: 03-7968 4001/2E-mail: [email protected] (Nurul)IEM Home Page: http://www.iem.org.my

© 2005 The Institution of Engineers,Malaysia & Dimension Publishing Sdn. Bhd.

ChairmanROBERT MEBRUER

PublisherPATRICK LEUNG

[email protected]

EditorRIDWIN G. CANDIAH

[email protected]

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Senior Advertising ExecutiveHASNIZAM BIN MOHAMAD

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[email protected]

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For advertisement placements and subscriptions, please contact:

DIMENSION PUBLISHING SDN. BHD.

C O N T E N T S

DIMENSION PUBLISHING SDN. BHD. (449732-T)

Unit No. 3A-10, Block FPhileo Damansara 1, 9 Jalan 16/11

Off Jalan Damansara, 46350 Petaling JayaSelangor Darul Ehsan

Tel : (603) 7955 5335 Fax : (603) 7955 5773Email : [email protected]

PRESIDENT’S CORNERTime To Say Goodbye – Starting The Locomotive For Change ............. 4

EDITORIALAgriculture Engineering .............................................................................. 5

COVER STORYAdvancement Of Agriculture Engineering In Malaysia .................... 7

FEATURESAn Overview Of The Evolution Of The Bread IndustryIn Malaysia ..................................................................................................14Investment Incentives For The Agriculture And Agro-Based Industries ......................................................................................................18WEC 2004 Shanghai: Engineers Shape The Sustainable Future – After Thoughts .......................................................................... 28

REPORTSThe 11th Young Engineers Of The ASEAN Federation Of Engineering Organizations Conference (YEAFEO) .......................... 37

LETTER TO EDITORLetter From Chairman, Standing Committee On Publications ..............6

COMMENTComments On The Report On “Soil Nailing & Guniting” .................. 34Shaiky’s View ...............................................................................................40

COLUMNSolly, You Talking To Me? .......................................................................... 36The World NEEDS Engineers ................................................................... 36

BLUE PAGESMembership ................................................................................................... 1

ANNOUNCEMENTGuidelines To The Jurutera Wargamas Criteria .......................................2Conference & Seminar ................................................................................. 2IEM Sabah Branch Diary Of Events .......................................................... 3

ESSAYProfessional Interview Essay .................................................................... 5

REPORTTalk On “Infrared (IR) Thermography” .....................................................6One Day Seminar On Explosives And Blasting At Construction Works ................................................................................. 7Library Announcement ............................................................................ 4

Cover photograph courtesy of Chee Meng Sang, FIEM

Printed by : HjL PRINT ENTERPRISE (Co. No. 14 56681-X)

No. 20, Jalan PBS 14/8Taman Perindustrian Bukit Serdang

43300 Seri Kembangan, Selangor Darul Ehsan, MalaysiaTel/Fax: 603-8945 6472

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JURUTERA, April 20054

This being my last President’sCorner, I would like to take the

opportunity to say thank you to allIEM members and staff for your strongsupport. It has indeed been hearteningto note that members appear to readmy Corners regularly and find them asgood starters for deliberations on thestate of the institution. And that fits myintention of encouraging interest anddebate on the current performance andfuture prospects of the institution.

It has indeed been my expressedintention to reach out to the generalmembership and make IEM moretransparent and the leadership moreaccountable to members as stake-holders. The aim is to get moremembers concerned and involved inthe affairs of the institution. Theresponse thus far, positive as well asnegative, shows that members areindeed reading my Corners andresponding well. This is good forwhatever it takes. We should strivetowards transparency and account-ability in our learned society. Weshould not be afraid to discuss ourproblems openly, washing dirty linenin public notwithstanding, providedwe do not indulge in personal attacks,which I religiously try to avoid. It is forthe good of the institution that wepositively scrutinize and evaluate ourmanagement system, culture andattitudes and migrate to a moremodern, positive and dynamic workenvironment.

The trend towards transparencyand accountability is a worldwidephenomenon. The Institution of CivilEngineers (ICE), the Association ofConsulting Engineers (ACE), theBritish Consultants & ConstructionBureau (BCCB), and TransparencyInternational (TI) in the UK haverecently joined forces to found theAnti-Corruption Forum. The Forumhas called on 30 of the UK’s leadingcivil engineering consultants and

contractors to come together to stampout corruption and bribery in theconstruction industry. The EuropeanCommission estimates that the globalcost of corruption is equivalent to 5%of the world economy. And accordingto anti-corruption lobby group TI,construction and engineering is themost corrupt business sector in theworld. ICE past President DouglasOakervee said “ACE, BCCB, ICE andTI believe that it is important that theindustry speaks out againstcorruption, and takes a lead in workingtowards its elimination.” (ICE NewCivil Engineer, December 2004.) Down in Malaysia, the government isalso stressing on the importance oftransparency and the need to stemcorruption. The need for greaterefficiency in the civil service has beenin the news of late. And we doexperience better service nowadaysfrom many government departmentsbecause of this initiative.

My two-year term as President has been mainly spent on efforts to reinvent the profession, rejuvenatethe institution and revitalize themembership. There is now moreinterest on engineering education,research as well as professionalpractice at various forums in thecountry. In education, the currentemphasis is on capacity building andoutcome based learning (OBE) withefforts to revamp the EngineeringAccreditation Council (EAC) manualand get Malaysia to be accepted as asignatory of the Washington Accordunderway. In research, a positionstatement has been prepared and aforesight study is on the way, whileinvolvement in preparation of the 9thMalaysia Plan focuses on lobbying forengineering to get a fair share offunding for R&D. In professionalpractice the indulgence is in exportingprofessional services supported byvarious engineers’ registers such as

AER and APEC/IMF. Our involve-ment at the international and regionallevel is encouraging. We get a stream of visitors to the IEM from overseasincluding the Presidents of ICE,IMechE, Engineers Australia as well as visitors from Korea, Vietnam andother countries in this region. I hadbeen recently invited to address theSaudi Council of Engineers in Riyadh.The institution has a good StrategicPlan, which is being updated after a Council Brainstorming Session atPort Dickson recently, a QualityManagement System that is in place while an IEM Organisational and Administrative Review Report,which has been completed recently,should enable the Council toreengineer the institution.

I have to admit that I have takenthis controversial and perhaps crudeapproach to leading the institution butwith a firm belief that it was the onlyway to shake up the institution from itsslumber and get members to respondto the call. I believe I have done what ishumanely possible given that the effortis unique and may be strange to somemembers but the challenge now is tofollow up with definitive action plans.Agreeing to what need to be done ishalf of the struggle and it does take alot of my effort and time; getting thingsdone is the other half, which I have toadmit I have not had the opportunityto accomplish much, given the timeand resources currently available. But Ihope I have successfully providedmembers with a start, which willfacilitate others to finish the job. Thespotlight is now turned on theleadership and the Secretariat toprovide their best for our belovedinstitution. I would then retire happily,knowing that the locomotive forchange is indeed underway. ■

Assalamualaikum (Peace be upon you) and Good Bye.

Time to say GoodbyeStarting the Locomotive for Change...................................................................................................................................................................................

By: Ir. Prof. Abang Abdullah bin Abang Ali, IEM President

P R E S I D E N T ’ S C O R N E R

Page 4: April . 01-05 - MyIEM

JURUTERA, April 2005 5

Number 4 April 2005IEM Registered on 1st May 1959

THE INSTITUTION OF ENGINEERS, MALAYSIABangunan Ingenieur, Lots 60 & 62, Jalan 52/4, P.O. Box 223,

(Jalan Sultan) 46720 Petaling Jaya, Selangor.Tel: 03-7968 4001/4002 Fax: 03-7957 7678

E-mail: [email protected] Homepage: http://www.iem.org.my

MAJLIS BAGI SESI 2004/2005 (IEM COUNCIL SESSION)YANG DIPERTUA / PRESIDENT:Ir. Prof. Abang Abdullah bin Abang Ali

TIMBALAN YANG DIPERTUA / DEPUTY PRESIDENT:Ir. Prof. Dr Ow Chee Sheng

NAIB YANG DIPERTUA / VICE PRESIDENTS:Ir. P.E. Chong, Ir. Vincent Chen Kim Kieong, Ir. Chee Meng Sang, Ir. Mohd Aman bin HjIdris, Ir. Choo Kok Beng, Ir. Neoh Cheng Aik, Ir. Prof. Ishak bin Abdul Rahman

SETIAUSAHA KEHORMAT / HON. SECRETARY:Ir. Oon Chee Kheng

BENDAHARI KEHORMAT / HON. TREASURER:Ir. M.C. Hee

WAKIL STRUKTUR / STRUCTURAL REPRESENTATIVE: Ir. David Ng Shiu Yuen

WAKIL AWAM / CIVIL REPRESENTATIVE: Ir. Gunasagaran a/l Krishnan

WAKIL ELEKTRIK / ELECTRICAL REPRESENTATIVE:Ir. Dr Muhammad Fuad bin Abdullah

WAKIL MEKANIK / MECHANICAL REPRESENTATIVE:Ir. Loh Lim Huat

WAKIL KIMIA & DISIPLIN LAIN / CHEMICAL & OTHERS REPRESENTATIVE: Ir. Ahmad Nordeen bin Mohd. Salleh

AHLI MAJLIS / COUNCIL MEMBERS:Ir. Dr Ahmad Suhaimi bin Abd Rahim, Ir. Prof. Madya Dr Ibrahim bin Kamaruddin,Ir. Assoc. Prof. Megat Johari bin Megat Mohd. Noor, Ir. Hj. Mohamad Ali bin Yusoff,Ir. Bahardin bin Baharom, Ir. Prof. Dr Chuah Hean Teik, Ir. Dr Wong Chin Chaw,Ir. Lee Weng Onn, Ir. Prof. Dr Siti Hamisah Tapsir, Ir. Chin Mee Poon,Y. Bhg. Dato’ Ir. Hj Abdul Rashid bin Maidin, Ir. Tan Yean Chin, Ir. Peter Tan Hoh You,Ir. Kukanesan a/l Sakthiveil, Ir. Assoc. Prof. Dr Mohd Zamin bin Jumaat,Ir. Prof. Dr Amir Hashim bin Mohd Kassim, Ir. Dr Mohd Yusof bin Abdul Rahman,Ir. Adnan bin Zulkiple, Ir. David Lai Kong Phooi, Ir. Manogaran a/l K. Raman,Ir. Hj Mohd Hassin @ Mohd Hashim bin Daud, Ir. Mohd Nizar bin Hassan,Ir. Assoc. Prof. Lt. Kol. Mohd Hazani bin Hj Shafie, Ir Mohd Rasid bin Osman,Ir. Prof. Dr Ruslan bin Hassan, Ir. Woo Ah Keong, Ir. Yeo Boon Kah, Ir. Yusouf binAhmad,Y. Bhg. Tan Sri Dato’ Ir. Mohd Radzi bin Mansor, Y. Bhg. Tan Sri Datuk Dr Ahmad Tajuddin bin Ali, Y. Bhg. Datuk Abdul Hadi bin Mohd Deros

BEKAS YANG DIPERTUA TERAKHIR / IMMEDIATE PAST PRESIDENT: Ir. Dr Gue See Sew

BEKAS YANG DIPERTUA / PAST PRESIDENT:Y. Bhg. Tan Sri Ir. (Dr) J. G. Daniel, Ir. Chiam Teong Tee, Y. Bhg. Dato’ Ir. Pang LeongHoon, Y. Bhg. Academician Dato’ Ir. Lee Yee Cheong, Y. Bhg. Dato’ Ir. Abdul Rashid binAhmad, Ir. Dr Ting Wen Hui, Ir. Hj Mohd Mazlan, Y. Bhg. Datuk Ir. (Dr) Hj. AhmadZaidee Laidin

PENGERUSI CAWANGAN / BRANCH CHAIRMAN:Pulau Pinang - Ir. Vincent Tan Huei MengSelatan - Ir. Steve Chong Yoon OnPerak - Y. Bhg. Dato’ Ir. Hj. Abdul Rahman bin DahanTimur - Y. Bhg. Dato’ Ir. Hj. Annies bin Md. AriffTerengganu - Y. Bhg. Dato’ Ir. Hj. Mohamad bin HusinNegeri Sembilan - Ir. Hj. Jamil bin IbrahimMelaka - Ir. Hj. Abd Rahim bin ShamsudinSarawak - Y. Bhg. Datu Ir. Hubert Thian Chong HuiSabah - Ir. Lee Tet FonMiri - Ir. Dr Edwin Jong Nyon TchanKedah-Perlis - Y. Bhg. Dato’ Ir. Hj. Abdullah bin Hj. Abbas

LEMBAGA PENGARANG / EDITORIAL BOARD:Ketua Pengarang / Chief Editor – Ir. Assoc. Prof. Megat Johari bin Megat Mohd. NoorPengarang (Bulletin) / Bulletin Editor – Sdr. K.H. ManPengarang (Jurnal) / Journal Editor – Ir. Mohd. Rasid bin OsmanSetiausaha / Secretary – Ir. Mohd. Khir bin MuhammadAhli-Ahli / Committee Member – Y. Bhg. Dato’ Ir. Hj. Abdul Rashid bin Maidin,Prof. Dr Asbi bin Ali, Dr Chuah Teong Guan, Assoc. Prof. Dr Deepak Kumar Ghodgaonkar

AHLI JAWATANKUASA PENERBITAN / STANDING COMMITTEE ONPUBLICATIONS:Pengerusi / Chairman: Ir. Chee Meng SangNaib Pengerusi / Vice Chairman: Ir. Prof. Dr Ruslan bin HassanSetiausaha / Secretary: Ir. Mohd. Khir bin MuhammadPengerusi (Perpustakaan) / Library Chairman: Dr Chuah Teong GuanAhli-Ahli / Committee Member: Ir. Chin Mee Poon, Ir. Assoc. Prof. Dr Mohd. Zamin binJumaat, Y. Bhg. Dato’ Ir. Hj. Abdul Rashid bin Maidin, Ir. Prof. Dr Amir Hashim bin Mohd.Kassim, Ir. Lim Eng Hwa, Ir. Low Ah Peng,Ir. Loh Lim Huat, Ir. Mah Soo, Ir. Look Keman binHj. Sahari, Ir. Assoc. Prof. Megat Johari bin Megat Mohd. Noor, Ir. Mohd. Rasid bin Osman,Sdr. K.H. Man, Prof. Dr Asbi bin Ali, Sdr. Karthigesu Muniyandi.

The incentives for investments granted to corporationswilling to put their money into agricultural production

and agro-based industries is very good. When things weredown in the late nineties, the agricultural sector that was stillon a sound footing, albeit from the dependable oil palms. The emphasis on the agricultural sector to provide the impetus to the national economy is because the bill for food and agricultural imports comes to 16 billion Ringgitannually. Some 50% is for raw materials to producedownstream products.

We may not be able to reduce edible food imports much,so we need to increase exports. However, we can substitutesome required raw materials with local produce. If a rawmaterial is not readily available, it should be made a priorityitem, and adequate incentives must be given. An examplewould be to use by-products from the palm oil industry foranimal feed. This is where research and engineering comes in.

The exotic tropical fruits for export are produce we canemphasize. Fruits like star fruit from Raub are now neatlypackaged for export and the ones left, if we perchance to seeare the rejects. But that’s good for foreign exchange earnings.Our Tambun pomelos if promoted well could follow suit, andit will be good for the nation. Our D24s from Raub are makingtheir way to Australia already. Indigenous fruits like themangosteen, pulasan, dokong, duku langsat, ciku rajah,nangka, talap, etc. and the non-indigenous dragon fruit can do us proud. There are already a small number of fruitplantations in the country and we can do with a whole lot more. However, quality, consistency, guarantees andpackaging are some of the demands for perishable agriculturalproduce. What is needed are packaging facilities, storage andrefrigeration, irrigation and drainage, automation, etc.

Meat production is also important. We can more than caterfor our own needs except for beef and mutton. A project inJohor has 21 companies involved in the production of cattleand should be running at full steam in a couple of years. Riceestates are now appearing in place of small plots; they aremore productive and good incentives are given for Malaysiancompanies who dare take to the deep seas.

The government can only make it easy for investments andprovide incentives, the rest is up to the state governments toopen up non-jungle lands (land is a state matter), the bigplantations groups (to put aside their best lands for foodproduction) and of course getting FDIs into agriculture (inaquaculture it’s quite favorable) are a must if we want to makea mark. We already have controlled environments for theproduction of temperate vegetables (e.g. aeroponics andhydroponics.) We have controlled environments for theproduction of the popular Phalaenopsis orchids. We canalready grow tulips in a controlled environment. While we canproduce many agricultural products, we do not do it on a largescale and that is the problem. We must also produce thingsthat countries where conditions are more favourable, cannotproduce or are not of good quality. So we have to identify whatis the trump card we hold as far as agricultural produce forexport is concerned. We can do all of the above by investing inforeign lands too like what is being done in rice farming,chicken production, oil palm, etc. ■

JURUTERAE D I T O R I A L

Agriculture Engineering.................................................................................

By : Ir. Dr Lee Teang Shui

Page 5: April . 01-05 - MyIEM

JURUTERA, April 200566

L E T T E R T O E D I T O R

Dear Editor,

Let’s face it: we dislike change. Even if wewant change, we still get

anxious when we think of making theadjustments necessary to leave our“comfort zone”. When I answer “Engineer”to the question about my occupationwhenever I complete immigration forms, Ihelp reinforce the image some members ofsociety have of us, stereotyped as it is, that“engineers are just engineers.” We’re veryset in our ways even though we build newthings nearly all the time.

When I took over as chairman of thiscommittee two years ago, I introducedchanges, starting with the way weconducted meetings. I wanted meetings tobe short, not more than 30 minutes if I couldhelp it. I wanted our committee to beforward-looking and to desire change. Iwanted us to work more closely withDimension, our out-sourced publisher. Ourprimary goals: more members readingJurutera, readers getting what they want.

Some readers may not realise thatpublishing a monthly magazine well takesa lot of hard work, extreme care, and, evenlove sometimes. It used to cost IEM a lottoo. In 2000 and 2001, the costs of printing Jurutera and the Journal exceededadvertising revenue by RM60,000. This year, IEM stands to collect aboutRM50,000 as its share of advertisingincome, and the publisher pays for theprinting costs. So, on average each year,outsourcing the publishing of Jurutera andthe Journal will make IEM richer byRM110,000, unlike four years ago. I thinkthis was one of the best things IEM hasdone, starting in 2002.

Certain things did stay still. But thiscommittee worked hard to ensure that the quality of production and magazinecontent improved. We honestly believedthat readers were getting a better bulletineach month.

I think we have to do more. We stillneed to change mindsets and get morereadership and more advertisers.

As I relinquish this post, I wish to thankreaders for giving us your support. I thankall committee members for their sacrificeand hard work. Each member hadcontributed at least one editorial. Ir Mohd.Khir, despite having to drive from JohorBharu each time, faithfully kept minutes,and I owe a lot to him. I thank the editors, Ir Prof. Megat, Ir Rasid and KH Man for doing their job with zeal and remaining committed to the task, and tohave the patience to hear out (and notaccept) my ideas all the time. I acknowledge with gratitude the effort put in by Aziah and Nurul, two verycooperative and obliging Secretariat staff.Last, but not least, I thank all whocontributed to the publication effort.

I wish the new committee success.

Chee Meng Sang, FIEM

Letter from Chairman, Standing Committee on Publications

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JURUTERA, April 2005 7

C O V E R S T O R Y

IntroductionThe agricultural sector in Malaysia isinvolved in the production, processingand waste management of crops,livestock and fishery. It has contributedsignificantly to the Malaysian economy.For the first 30 years after independence,the agricultural sector was the maincontributor to the national economy. In1980 it contributed RM10.2 billion or 23%of the GDP, dropping to 20% in 1989, to13.6% in 1995 and to 8.2% in 2003. Theagricultural sector attained an averagegrowth rate of 3.2 per cent per annum forthe period of 1985–1995, with the growthrate dropping from 5% in 1985 to only 2%in 1995. In absolute terms, the total value-added of the agricultural sector increasedfrom RM11.9 billion in 1985 to RM17.1billion in 1995 and to RM18.2 billion in2000 (at 1987 prices.)

Changes in the lifestyle of the people,as a result of urbanisation and the higherlevel of income they receive, haveresulted in changes in eating habits, foodpurchasing and consumption patterns.And with the Malaysian populationgrowing at a rate of 2.5% per annum, theincreased demand for food has led to theincrease in food imports. Total foodimports increased from RM3.5 billion in1985 to RM7.7 billion in 1995 and toRM13 billion in 2003. With food exportworth RM8 billion, our net food importwas RM5 billion in 2003.

Over the years, agriculture has beenused to finance the development of thecountry as well as to finance thetransformation of the economy towardsindustrialisation. During the last 10–15years, the rapid industrialisation in thecountry has led to a decline in theagricultural sector’s relative contributionto national income, export earnings,employment and investments. Industria-lisation in the country and the rural-urban migration of youths has created aserious shortage of agricultural workersin the country. The agricultural labourforce in 1980 was 1,911,000 or about39.7% of the national labour force and itdropped to 1,400,000 or about 18% thenational labour force in 1995. However,

most of the growers and managers in theagriculture and agro-based industryprefer to solve their labour problems by employing cheap imported foreignworkers and by relying on traditionalmanual methods of agriculturalproduction and processing instead ofadopting more modern and efficientagricultural engineering technologies.

For Malaysian agriculture to competeeffectively in the global environment, ithas to change from the current traditionalmethod of farming and cottage-typeagro-industry to modern commercialfarms and factories. In line with this, the Third National Agricultural Policy(NAP3) has emphasised on themodernisation and commercialisation ofthe agricultural sector to lowerproduction cost and to increase labourand land productivity. The applicationsof agricultural engineering technologiesconstitute the major aspects of thisagriculture modernisation.

Agriculture engineering is needed toserve as a catalyst or a pacesetter tostimulate growth in our agriculture andagro-based industry. At the same time,the industry must change in order to beable to make full use of agriculturalengineering to respond to the changingdemands of agriculture and society.

Agricultural Engineering in WorldAgricultureBefore the Second World War,agricultural engineering generallyplayed a secondary role in agriculturalproduction. Some machines weredeveloped for agriculture but thedevelopment of agricultural engineeringwas slow. The design of agriculturalmachines and buildings was based onskills and accumulated experience andthere was very little scientific research.After the Second World War, it wasnecessary to provide for the population’sfood and other biological needs as fast aspossible. Farm machines and equipmentwere rebuilt, renewed and even createdfor these purposes. Since then,agricultural engineering has contributedtremendously to world food production.

It has provided better design ofagricultural machinery and agriculturalstructures and it has developed ways toconserve soil and water and to improvethe processing of agricultural products.

Agricultural engineering has becomeone of the most effective and powerfultools in agriculture development. Thisrecognition has led to more research andmore advancement in agriculturalengineering particularly in machinerydesign, post-harvesting technologies andgreenhouses, ergonomics and safety,work organisation, environmentalprotection and sustainable landdevelopment over the last 50 years.

Improvements in storage, processing,and transportation also has increased themarketability of farm products. The useof cold-storage warehouses andrefrigerated railroad cars has beensupplemented by the introduction ofrefrigerated motor trucks, by rapiddelivery by airplane, and by the quick-freeze preservation process, in whichfarm produce is frozen and packaged the same day that it is picked. Freeze-drying and irradiation have also reached practical application for manyperishable foods.

Airplanes and helicopters have beenemployed in agriculture for suchpurposes as seeding, transportingperishable products, fighting forest fires,and in spraying operations for insect anddisease control. Radio and televisionhave been used to disseminate vitalweather reports and other information.

Interest has been shown inhydroponics and aeroponics, methods ofsoil-less gardening in which plants aregrown using chemical nutrient solutions,to solve some agricultural problems.Meanwhile, agricultural engineeringprovides the pumping system to circulatethe nutrient and the environment controlsystem to give plants an optimumgrowing environment.

New uses for farm products, by-products, and wastes have beendiscovered. Standards of quality, size,and packing have been established forvarious fruits and vegetables to aid in

Advancement of Agriculture Engineering in Malaysia..................................................................................................................................................................................................................................................

By Ir. Ooi Ho Seng, Chairman, Agricultural and Food Engineering Technical Division

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JURUTERA, April 20058

C O V E R S T O R Y

wholesale marketing. Meanwhile,agricultural engineering provides theequipment and techniques to supportand to undertake the standardisation of work.

The increasing demand foragricultural products require continuedefforts towards more efficient agri-cultural production, and an increasingemphasis on the conservation ofresources. Despite the big increase inglobal food production over the lastcentury, there are still many hungrypeople in the world today. The globalpopulation is projected to reach 9.36billion in 2050 and it is a big challenge toagricultural engineers to help meet theneeds of a growing hungry world.

Advancements in AgriculturalEngineering Agricultural engineering is theapplication of a variety of engineeringdisciplines in agriculture to produceagricultural products and to manufactureagro-based products. It is dedicated tothe application of engineering principlesfor the advancement of food production,fibre production, and other biologicalneeds.

Field operations such as irrigation,drainage, soil conservation andenvironment conservation are importantin successful farming and they make useof knowledge in agricultural engineeringthat are integrated with knowledge inbiological and other sciences. Forexample, knowledge in agriculturalchemistry is useful in dealing with vitalfarm problems such as uses of fertiliser,insecticide, fungicide, soil makeup,analysis of agricultural products andnutritional needs of farm animals.Meanwhile, agricultural engineeringprovides the machinery and equipmentto apply the fertiliser, insecticide andfungicide efficiently.

Scientific methods are applied to pestcontrol, limiting the widespread use of insecticides and fungicides andapplying more varied and targetedtechniques. New understanding ofsignificant biological control measuresand the emphasis on integrated pestmanagement have made possible moreeffective control of certain kinds ofinsects. Meanwhile agriculturalengineering provides the chemicalapplication equipments and thestrategies to use them safely.

Plant breeding and geneticscontribute immeasurably to farmproductivity. Genetics has also placedlivestock breeding on a scientific basis.Meanwhile, agricultural engineeringprovides the machinery for mechani-sation to reduce the drudgery of farmwork and to cope with the increased farmproductivity. More significantly,mechanisation has enormously increasedfarm efficiency and productivity.

Agricultural engineering coversenvironmental systems, food production,biological resources or ecologicalsystems, and power and machinerysystems. Basically, agricultural engineersare equipped with knowledge andcapability in writing, social sciences, andeconomics, along with mathematics(calculus and statistics), chemistry,physics, and biology. Agriculturalengineers are provided withfundamental knowledge of the lifesciences and how biological systemsinteract with their environment. Inaddition, they are equipped withexpertise in thermodynamics, mechanics,instrumentation and controls, electronicsand electrical circuits, and engineeringdesign.

Agricultural Engineering hasadvanced to a stage where it may now besubdivided into the following specialisedcategories:

Biological (Agricultural)Engineering One of the most rapidly growing sub-disciplines of agricultural engineering isbiological engineering, a discipline thatapplies engineering practice to problemsand opportunities presented by livingthings and the natural environment. Thiscategory of agricultural engineers isinvolved in a variety of exciting intereststhat continue to emerge as ourunderstanding of science and naturegrows. Areas of interest range fromenvironmental protection and reme-diation, food and feed production, tomedicine and plant-based pharma-ceuticals and packaging materials.Biological agricultural engineers mayalso design medical implants anddevices, instrumentation and imagingproducts while others may developtechniques and strategies for natural pestcontrol and treatment of hazardouswastes, for composting, and for enzymeprocessing of biomass, food, feed, andwastes.

Natural Resource (Agricultural)EngineeringOur environment is fragile. Events likethe El Niño phenomenon remind us thatour soil and water are vulnerable todegradation by both natural and man-made forces. These agriculturalengineers are equipped with expertise inenvironmental work to betterunderstand the complex mechanics ofthese resources, so that they can be usedefficiently and without degradation.These engineers determine crop waterrequirements and design irrigationsystems. They are experts in agriculturalhydrology principles, such as controllingdrainage, and they implement ways tocontrol soil erosion and study theenvironmental effects of sedimentationon stream quality. Natural resourcesengineers design, build, operate andmaintain water control structures forreservoirs, floodways and channels. Theyalso work on water treatment systems,wetlands protection, and other waterissues.

Power Systems & Machinery Design(Agricultural) EngineeringThese agricultural engineers focus ondesigning advanced equipment, makingthem more efficient and less demandingof our natural resources. They developequipment for food processing, highlyprecise crop spraying, agriculturalcommodity and waste transport, and turfand landscape maintenance. This is inaddition to the tractors, tillageequipment, irrigation equipment, andharvest equipment that have done somuch to reduce the drudgery of farming.Their work remains challenging astechnology advances, productionpractices change and equipmentmanufacturers expand globally.

Structures & Environment(Agricultural) EngineeringThese agricultural engineers understandthe importance of creating andmaintaining a healthy environment forgrowing agricultural commodities andfor the labourers who produce them.They also understand that our naturalresources must not be diminished, inquality or availability, by agriculturaloperations. Toward these ends, theseagricultural engineers are equipped withexpertise in structures and environmentsto design animal housing, storagestructures and greenhouses with

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JURUTERA, April 200510

ventilation systems, temperature andhumidity controls, and structuralstrength appropriate for their climate andpurpose. They also devise betterpractices and systems for storing,recovering, reusing and transportingwaste products.

Food and Bioprocess (Agricultural)EngineeringFood, fibre and timber are only thebeginning of a long list of products thatbenefit from efficient use of our naturalresources. The list includes biomass fuels,biodegradable packaging materials,nutraceuticals, pharmaceutical and otherproducts. These engineers understandmicrobiological processes and use thisexpertise to develop useful products, totreat municipal, industrial andagricultural wastes, and to improve foodsafety. They are experts in pasteurisation,sterilisation, and irradiation, and in thepackaging, transportation and storage ofperishable products. Food andprocessing agricultural engineerscombine design expertise withmanufacturing methods to developeconomical and responsible processingsolutions for the industry as well as tolook for ways to reduce waste bydevising alternatives for treatment,disposal and utilisation.

Information & ElectricalTechnologies (Agricultural)EngineeringThe application of information andelectrical technologies in agriculture isvery versatile. It is applied to virtually allthe other sub-disciplines of agriculturalengineering, from machinery design tosoil testing to food quality and safetycontrol. Geographic information systems,global positioning systems, machineinstrumentation and controls,electromagnetics, bio-informatics, bio-robotics, machine vision, sensors andspectroscopy are some of the excitinginformation and electrical technologiesbeing developed and used today in theagriculture and agro-based industry.

Forest (Agricultural) EngineeringForest agricultural engineers applyengineering principles to solve naturalresource and environment problems inforest production systems and relatedmanufacturing industries. Engineeringskills and expertise are needed to addressproblems related to equipment design

and manufacturing, forest access systemsdesign and construction, machine-soilinteraction and erosion control, forestoperations analysis and improvement,decision modeling, and wood productdesign and manufacturing. Forestengineers are involved in a full range ofactivities in natural resourcemanagement and forest productionsystems.

Energy (Agricultural) Engineering

Energy is needed to power the machines,devices, and systems in our homes andworkplaces. However, many energysources are non-renewable and createundesirable by-products. Agriculturalengineers are at the forefront of the effortto identify and develop viable energysources such as biomass, methane andvegetable oil and to make these and othersystems cleaner and more efficient. Theseengineers also develop energyconservation strategies to reduce costsand protect the environment, and theydesign traditional and alternative energysystems to meet the needs of agriculturaloperations.

Aquacultural (Agricultural)EngineeringAs natural fish supplies are threatened,agricultural engineers are needed to helpdesign farm systems for raising fish andshellfish, as well as ornamental and baitfish. They specialise in water quality,biotechnology, machinery, naturalresources, feeding and ventilationsystems, and sanitation. They seek waysto reduce pollution from aquaculturaldischarges, to reduce excess water use,and to improve farm systems. They alsowork with aquatic animal harvesting,sorting, and processing.

Nursery & Greenhouse (Agricultural)Engineering

Nursery and greenhouse operations, likelarge-scale production agriculture, havemany similar needs such as irrigation,mechanisation, disease and pest control,and nutrient application. However, otherengineering needs also presentthemselves in nursery and greenhouseoperations such as equipment fortransplanting, control systems fortemperature, humidity, and ventilation,and plant biology issues such ashydroponics, tissue culture and seedlingpropagation methods.

Safety and Health in AgriculturalEngineering

Farming is one of the few industries inwhich families work and live on thepremises and are at risk of injuries,illness, and death. Agricultural engineersanalyse health and injury data, the useand possible misuse of machines, andcompliance of equipment with standardsand regulations. They constantly look forways in which the safety of equipment,materials and agricultural practices canbe improved and for ways in whichsafety and health issues can becommunicated to the public.

Agricultural Engineering inMalaysian Agriculture

Current Status❏ The level of input of engineering

technologies into agriculture(comprising production, processingand waste management of crops,livestock and fishery) is generally stilllow. Only land preparation is fullymechanised in both plantations andsmallholdings. Significant progresshas been achieved in themechanisation of field maintenanceand crop maintenance operations inthe plantations. Harvesting inplantations is still essentially manual.Post-harvest handling andpackinghouse operations of fruits,vegetables and other crops are alsomanual. In the smallholding sector,rice has achieved a fairly high level ofmechanisation in most operations.

❏ Presently, most of the agriculturalmachinery used in the country areimported and this amounts to aboutRM250–300 million annually. Themachines are imported either as semiknock down (SKD) or complete builtup units (CBU) and are either new orused (the latter to be reconditionedlocally.)

❏ The range of machinery that is locallymanufactured or fabricated are broadbut the volume of each type is nothigh. The manufacture of thesemachines is dependent on importedmaterials and components. A few ofthe locally manufactured machinerysuch as sprayers, tillers and rubberprocessing machines are beingexported.

❏ Locally manufactured agriculturalmachines include the rotary tiller,

C O V E R S T O R Y

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rotary slasher, rotary oil palm frontmulcher, maize seeder, rice stubbleslasher, fertilizer spreader,agricultural trailer tanker, oil palmfruit bunch loader, oil palm fruitbunch trailer, oil palm fruit bunchinfield transporter, oil palm fruitbunch collector, manual knapsacksprayers, agricultural hand tools, andoil palm and rubber processingmachines.

❏ Much of the agro-based and foodprocessing industry consists mostlyof small sized firms. These smallfirms, which are mostly familyconcerns, are run in the traditionalmanner, are often manual inoperation and devotes little attentionto hygiene or quality control. Theirsources of funds are usually severelylimited. Typical examples of smalloperations are manufacturing ofcoffee, spices, noodle, biscuit,bakeries and fish-based food.

❏ The few large food-processing plantsare equipped with modern machineryand utilise up-to-date processingtechnology and they keep abreastwith the latest innovations in theindustry. Firms in this categoryinclude canning plants, sugarrefineries, and beverage and instantnoodle industries.

❏ Agricultural engineering plays anincreasingly pivotal role insupporting the continued growth ofthe agriculture and agro-basedindustry under the current full-employment situation where labouris scarce and costly. The nationalpolicy to reduce dependence onunskilled foreign labour isencouraging the agriculture and agro-based industry sector to consideradopting capital-intensive andmanagement-intensive mechanisationtechnologies.

Issues and challenges❏ A SWOT (strength, weakness,

opportunity and threat) analysis ofthe local agricultural machineryindustry indicates that there ispotential for greater inputs ofagricultural engineering technologiesin the agriculture and agro-basedindustry. Rigorous coordination andplanning is required for thisdevelopment to happen and to enableagricultural engineering to play itscritical supporting role in the

agricultural and agro-based industry.❏ Many factors contribute to the slow

adoption of agricultural engineeringtechnologies in the agricultural sectordespite its apparent urgent need forit. An example is the trade-offbetween the higher costs ofmechanisation and the easyavailability of relatively cheap foreignlabour. Financial incentives and apolicy on foreign unskilled labour arerequired to encourage mechanisation.

❏ The high cost of mechanisation arisefrom lack of economies of scale and ahigher capital investment required tobuy and maintain machines,infrastructure changes to facilitatemechanisation and the need formachine operators and technicalmanagers. Other contributing factorsare non-availability of suitablemechanisation technology for certainsituations, slow uptake of locallydeveloped agricultural engineeringtechnologies, and the fact thatagricultural enterprises generally givelower returns compared to othereconomic activities.

❏ Since not all of the country’s needsfor agricultural machines could bemet from imports, there are strongeconomic, technical and strategicjustifications to encourage the localmanufacture of certain agriculturalmachines. Incentives and directionare required to boost thisdevelopment.

❏ A few existing taxes act asdisincentives to the agriculturalmachinery industry. These include:(a) Import tax on agriculturalmachines presently not recognised assuch, e.g. infield (off-road)transporters, digger-shovel tractorand excavators; and (b) import tax onmachinery parts and componentsused by local machinerymanufacturers and fabricators.

❏ Taxes on replacement spare parts andmaterials (lubrication oils, greases,filters, etc.) for routine repair andmaintenance of agriculturalmachinery has made the totaloperating cost very high anduneconomical.

❏ The lack of industrial extension andthe difficult access to funds for thepilot production andcommercialisation of R&D results arethe factors that contribute to the slowand difficult process of technology

transfer from local R&D centers to theindustry.

❏ Technical manpower relevant to theagriculture machinery industrycomprising technicians, mechanicsand machine operators are seriouslylacking in the country. A programmeis required to increase the supply ofthese workers.

❏ Mechanised agricultural productionrequires a higher capital investmentthan the traditional manual method.However, agricultural enterprisesinvolve higher risks compared toother economic activities and theyyield relatively lower returns.Strategies that ensure costeffectiveness and viability ofmechanised technologies should beput in place.

National Policies❏ In the face of the labour shortage

occurring in the agricultural sector,the agricultural machinery industry isa critical support industry to thesector. Befitting this role, it would begiven integrated attention in terms ofdirection and structural developmentin addition to financial incentives andother support to ensure itsaccelerated growth.

❏ The dependence by the agriculturalsector on unskilled foreign labourwould be reduced. Their employmentwould be restricted to agriculturaloperations that currently cannot bemechanised. Incentives would begiven for agricultural producers toadopt capital-intensive mechanisationand automation technologies.

❏ The introduction of high technologyin mechanisation and automation ofagricultural production would beintensified. R&D programmes andtechnology transfer work in this areawould be strengthened.

Strategic Directions❏ A National Committee on

Agricultural Mechanisation andAutomation will be established toprovide strategic direction andcoordination on all aspects ofagricultural mechanisation (i.e.application of agriculturalengineering inputs.) Its memberswould comprise representatives fromthe public and private sectors. Atechnical committee and a permanentsecretariat would assist thecommittee.

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❏ The “Malaysian Network onAgricultural Mechanisation andAutomation” would be established tofacilitate technology awareness,information sharing and industryfeedback. This government-sponsored network or informationhub (iHub) would draw itsmembership form the general public,government agencies and privatesectors with interest in the industry. Itwould set up an Implementation TaskForce, an iHub Internet website, aMechanisation Information Unit anda newsletter. It would be aprogramme under the NationalCommittee on AgriculturalMechanisation and Automation.

❏ The Implementation Task Forcewould undertake national baselinetechnical, economic and socio-economic surveys. It would thenundertake the identification andquantification of nationalmechanisation priorities.

❏ Emphasis would be placed on landand crop adaptation for mechanisedproduction. They include thedevelopment of strategies and actionplans in land consolidation, landleveling, input/output access,irrigation and drainage, croppinglayout, adaptive plant breeding,demonstration farms and commercialfarming.

❏ Strategies on accelerated transfer ofglobal technologies would beimplemented. They include theestablishment of the TechnologyTransfer Fund and the developmentof action plans in technologyidentification, acquisition, fieldevaluation, commercialisation andextension.

❏ Detailed action plans would bedeveloped to strengthen andstreamline R&D on the mechanisationof the farm and factories (food andnon-food processing.) The planswould cover Priority R&D, Vision2020 R&D and joint venture R&Dwith local and internationalmanufacturers.

❏ Private sector involvement inagricultural mechanisation would bepromoted by providing financialincentives and creating a favourablebusiness environment for theirparticipation. This include thedevelopment of strategies and actionplans for farm machinery contractors,

farmer owners, operators ofmachinery, SMI (Small and MediumScale) development, finance-creditfacilities and entrepreneurdevelopment packages.

❏ Strategies in human resourcedevelopment would becomprehensive and would coverhigher education, vocational training,DOA (Department of Agriculture)training, School Net adult education,Internet extension, and DOAextension.

Role of Agricultural and FoodEngineering Technical Division(AFETD)The Agricultural and Food EngineeringTechnical Division (AFETD) is one of the15 Technical Division and InterestGroups of The Institution of EngineersMalaysia (IEM). The formation of AFETDwas approved by the IEM Council on 20July 1998.

The objectives of AFETD is topromote and advance the science andprofession of agricultural, biosystemsand food engineering and to foster theinvolvement of its members in nationalas well as international activities relatedto agricultural, biosystems and foodengineering.

The other objectives of AFETD are:• To facilitate agricultural engineers,

biosystems engineers and foodengineers in their pursuit ofregistration as Professional Engineers;

• To encourage Research andDevelopment in relevant areasappropriate to the needs of thenation; and

• To enhance the role and contributionof agricultural, biosystems and foodengineers towards increasing nationalfood and agricultural productionwithin the context of properenvironment preservation.

Concluding RemarksAgricultural engineering has providedtechnologies for farm mechanisation,irrigation, electrification, structures andfood processing. It has contributedsignificantly to the industrialisation ofthe Malaysian agriculture and it hasbrought Malaysian agriculture into thepresent Information Age.

The use of agricultural engineeringinputs in agricultural production andagro-based processing is essential to

overcome the various operationalconstraints such as unfavourable plantgrowth environment, high handlinglosses and inefficient work rate. Hightechnology farming, including hybridsfor wheat, rice, and other grains, bettermethods of soil conservation andirrigation, and the use of fertilisers hasled to a significant increase in theproduction of food in this country,particularly rice. Malaysian agricultureshould now position and prepare itself toadopt the latest contributions fromagricultural engineering which includeprecision agriculture, animal wastemanagement, nutrient transport andwater quality, food safety, crop bio-processing and bio-sensors.

As the Malaysian populationincreases, more food, energy, and goodsare required. Our natural resources arelimited and while it is necessary toproduce more with less, it is equallyimportant that the higher productivitydoes not degrade our environment. Inthe search for new ways to useagricultural products, byproducts andwastes, our agricultural engineers shouldcome up with viable, environmentallysustainable solutions. Our agriculturalengineers should ensure thesustainability of the necessities of life.They include safe and plentiful food toeat, pure water to drink, clean fuel andenergy sources, and a safe, healthyenvironment in which to live.

In summary, our agriculturalengineers are required and expected to:• Devise practical, efficient solutions

for producing, storing, transporting,processing, and packagingagricultural products.

• Solve problems related to systems,processes, and machines that interactwith humans, plants, animals,microorganisms, and biologicalmaterials.

• Develop solutions for responsible,alternative uses of agriculturalproducts, byproducts and wastes andof our natural resources – soil, water,air, and energy.

• Keep a constant eye towardimproved protection of people,animals, and the environment. ■

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IntroductionThe bread industry in Malaysia hasseen many changes in the last decade.It emerged as a small-scale processingindustry, then it grew to medium-scaleand now, we are witnessing the birth ofa new trend called the boutique bakery.The bread industry in Malaysia isflourishing very quickly and breadproducts are gaining much popularity.In fact, bread has been labelled as themost popular substitute of rice, thestaple diet of Malaysians. The bakeryproducts industry in Malaysia, wherebaked goods dominates with a largeshare of 62%, recorded a value ofalmost RM 2 billion per annum in 2003with a strong growth of RM 65 millionover the previous year (Anon., 2003).The bread and the bakery productsmarket is forecast to experience asteady growth of about 4% per annumin the coming years, reaching RM 2.9billion by 2006 (Anon., 2002). There’smore to it than just a loaf of bread!

Growth FactorsGenerally, the rise of bakery productsconsumption in Malaysia is in line withthe population’s growing affluence.However, the increased demand forbread is due to several other factors.The main factor is that bread makesquite a similar diet with rice; both arehigh in carbohydrate and protein.Bread and rice comprise 83% and 90%carbohydrates and 13% and 8%protein, respectively (Anon., 2004b).This suits the eating pattern of peoplefrom a hot and humid region wherehigh caloric food is needed for energylost as perspiration. Rice is thetraditional meal for every family but itis a meal that needs to go with dishesprepared separately. Dish preparationis time consuming and could be ahassle for some modern families. Thus,bread, which provides an equivalentbalanced diet, becomes quite handywhen a quick meal is favoured. It is notsurprising that bread has become themost popular food for breakfast infamilies. Bread is also beginning to beenjoyed during lunch among the

working set when the hot sun in mid afternoondiscourages taking a rice ornoodle lunch. Breads, spreadwith butter or jam forbreakfast and sandwichlunches are beginning to takeover traditional mealsprepared with rice or noodle.

The roads in Malaysiahave improved tremendouslyin the last 10 years with newexpressways being built,opening of major roads tovillages and widening ofexisting trunk roads. This hasenabled a wider distributionof bakery products within thewhole country, from cities torural areas. In the past,bakery product supplies arequite localised as inconsumers are confined toproducts from the localbakeshops in the areas thatthey live. With a better roadsystem, bread products frombakery factories located in thecities are transportedefficiently to conveniencestores, standard grocers,supermarkets, mini-marketsand petrol station stores. Forexample, a bread factory inMalaysia, the StansonBakeries, has 250 trucks plying thepeninsula’s North-South expressway24 hours a day, to reach their outletsovernight, on a daily basis. Theirstrong distribution network hasenabled the company to supply morethan 8000 retail outlets throughout thecountry (Dhesi, 2004). The North-Southexpressway, opened in 1994 andspanning 890 km connecting the Thaiand Singapore borders, has helped toshorten travelling time by half.

The bread industry in Malaysia isvibrant in meeting customers’ demandfor various types of products. GardeniaBakeries, for example, produces avariety of tasty bread products such asthe Toast’ems (sliced bread filled withfibrous fruit and grains) andconvenient savoury snacks such as

Gardenia Twiggies, Gardenia Muffins,Squiggles, Fun-in-a-Bun and FluffyBun besides its most popular sandwichloaves. A wide range of choices makesbread a popular food, affordable forpeople of all ages and incomes. Thecapability of the bread industry tocatch up and cope with the consumers’ever changing demands has helped thebread industry to expand. Theemphasis now is on health breads.Gardenia Bakeries recently introducedtheir health bread, the GardeniaBreakthru, which has a low glycaemicindex, more protein and fibre and lesscalories and carbohydrates. Shortlyafter, their rival Stanson Bakeries (whoproduces the High 5 range of products)announced their official acquisition of alicense for the manufacture anddistribution of Roman Meal breads

An Overview of the Evolution of the BreadIndustry in Malaysia.....................................................................................................................................................................................................................

By: Dr Chin Nyuk Ling, Department of Process and Food Engineering, Universiti Putra Malaysia

A bread bakery plant

A wide range of bread products available in a petrol station store

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from The Roman Meal Company in theUS (best known globally for theirnutritional and health breads) inOctober 2004. Despite thecompetitiveness in bread products,observations have shown thatcustomers are more inclined to chooseproducts according to theiraffordability. Some may choose to buya standard loaf while others might buythe high priced health bread from thesame outlets.

Media influence, both externallyand internally plays a small role inincreasing bread consumption inMalaysia. The western culture has beenregarded as worthy to adopt by somein Asian countries, and thereforewestern lifestyles tend to get pickedup. This includes eating and servingbread. Local bread companies inMalaysia also spend a large amount ofmoney in advertising their brands andproducts.

Current PlayersAt present, the Malaysian breadindustry is dominated by two nationallocal bakeries, which cater to variousregions – namely, the Gardenia andStanson Bakeries, each with their ownpopular brands of Gardenia and High5, respectively. These two companieshold approximately 76% of the retailmarket (Rydings, 2002). However, theycompete between themselves throughoffering attractive bread products.Gardenia Bakeries began operation inMalaysia in 1986 and started producingAmerican-style sandwich bread, usingthe traditional sponge and doughmethod. Within four short years, itbecame the bread market leader withan astounding 99% brand recall rateand 80% top-of-mind recall (Anon,2004a). Today, Gardenia’s overallproduction capacity has hit 32,000loaves per hour (the highest in theregion) and the company producesover 20 varieties of loaf bread, buns,rolls and snack cakes in five differentfactories. Stanson Bakeries and itsmarketing unit are subsidiarycompanies of the Stanson Group underthe Silver Bird Group Bhd. The StansonBakeries manufactures the Europeanvariety of breads. The group, whichstarted in 1999, is currentlycontributing about RM 46 million, closeto 90%, of Silver Bird’s turnover (Dhesi,2004).

These two companies, the Gardeniaand Stanson Bakeries, are competing tolead the bread market. This hasresulted in frequent fluctuation of

prices and volumes of bread. Whilstone company charges 20 cents cheaper,the other company offers an extra 20%of bread. Hence, we can say that thebread industrialists are alert all thetime. Their current move in conqueringmore of the market share is to strivetowards promoting health breads.Their business competitions andstrategies for a larger market are normsin the industry but have certainlyoffered Malaysians a healthy choice offood variety. The Silver Bird Groupbuilt a bread museum called the High 5BreadTown in their RM 100 millionnew plant premises. It presents thehistory of breadmaking, spanningmore than 5000 years, from AncientEgypt, through the Iron Age, theRoman and Viking periods, rightthrough the Industrial Revolution tothe present day. It uses colourfulmurals and interactive displays withsound to give a lively hands-onexperience to visitors. It is claimed tobe the first of its kind in the world. Iteven portrays bread in a futuristicsetting, in the form of pallets and pillsto be taken during a spaceshipexpedition! It is fascinating with ideasbeing so well transformed foreducational purposes. GardeniaBakeries, in their move to develop itshealth bread, has teamed up with agroup of a researchers attached to amedical faculty from a local university

to formulate bread using specialingredients.

Between these two big giant bakerycompanies, smaller bakeries stillmanages to find ways to survive theonslaught. These small bakeries areoften family-owned and structured andare usually started as a single shopbefore extending to more outlets. Thesefamily bakeries however, onlyemphasise on bread products, but alsoproduce higher margin delicacies suchas cakes and cookies. These bakeriesoperate in the city where the flow ofpeople is high and most importantly,where there are more affluentconsumers. Among the few localconfectionary retail chain shops are theKing’s Confectionary, which started in1973 in Kuala Lumpur and now has 49 retail outlets, the Season’sConfectionary and Bakery, and theAngel Cake House.

Current TrendsThe bread boutique is the newest trendof bakeshops in Malaysia that hasevolved through the rigorousapplication of innovative marketing.These boutiques can be found inshopping malls and are well known fortheir designer breads where customersfind a sense of contemporary ease andan exciting shopping experience. Thisconcept was first introduced inSingapore in July 2000 with the brand

In-store open-kitchen design concept of a boutique bakeryInsets: A baker at work, seen through the glass panels and attractively crafted breads

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name, Breadtalk. In Malaysia, the firstshop, Breadstory, started in September2002. These boutiques have developedvery quickly. Over a span of threeyears, Breadtalk has opened as manyas 23 chain outlets in Singapore whileBreadstory has 15 in Malaysia. Theunique thing about these boutiques istheir store design, which allows thecustomer to see products beingprepared in the most stringenthygienic manner in the kitchenthrough large glass panels. Theirconcept of baking and crafting eachbread carefully and giving themesreflecting current social and populartrends such as novels, movies, heroesand cartoon characters have delightedtheir customers. For example, breadproducts are interestingly named ‘TinaTuna’, ‘Killing Fills’, ‘Spiderman’,‘Nutty Professor’, ‘PacMan’, ‘HumptyDumpty’, etc. These boutiqueproprietors are working very activelyto bring their concept overseas throughtheir franchising programmes.Adwan’s (2003) comment on theunknown future of this boutiqueconcept, as a passing fad or anenduring trend not withstanding,Breadtalk has signed master franchiseagreements in countries like Indonesia,Kuwait, Malaysia, Philippines andTaiwan by April 2004.

AwarenessThe exposure on bread products andits sources and uses has come to a highlevel in the society. People learn toappreciate bread products and somewill not hesitate to spend to get thebread of their choice. Baking used to bea skill learned through apprenticeshipbut today, there are specialised bakingschools that provide short courses,certificates and even diplomas inMalaysia. The Malaysian Institute ofBaking (MIB) was approved in January2003 by the Ministry of Education ofMalaysia to conduct courses in baking.Private colleges, such as the FlamingoInstitute also provide professionalbaking courses. These courses arelearning opportunities for people fromdiffering backgrounds includingpeople thinking of the bread business,job seekers and also health conscioushousewives who wish to prepare freshbread for their families.

ConclusionHaving studied the current trend ofbread eating and the bread industry inMalaysia, there is no indication whichmode of bread production operation

will gain favouritism. The giantbakeries, the family bakeries and theboutique bakeries, each portrays theirown uniqueness, which proves theirsustainability. The giant bread factoriesare able to deliver bread at lower priceswith good quality control andproduction systems that wins theconfidence of consumers. The familybakeries are making large marginswith high-end products while thebread boutiques with their new andinnovative concepts of bread productscapture customers’ interest. The breadboutiques have also given the breadindustry in Malaysia a shot in the arm.Whilst the current bread-eating patternin Malaysian families is still not farfrom choosing bread by its price andtheir palates, nevertheless, theawareness of healthy food isincreasing. Most families are beginningto differentiate whole grain bread,mixed grains and white bread, at least!The rising living standard andawareness of consumers in addition tothe benefits arising from competitionamong the bread industrialists arebound to bring a higher level ofappreciation of bakery products intime. There’s more to it than just a loafof bread! ■

References• Anonymous (2002). Bakery and Cereals

in Malaysia 2006 in Bakery MarketAnalysis Report Series 2002.Datamonitor Report Series. URL:http://www.datamonitor.com/

• Anonymous (2003). Bakery Products inMalaysia in Euromonitor, October2003. URL:http://www.researchandmarkets.com/

• Anonymous (2004a). About us. URL:http://www.gardenia.com.my/about.htm

• Anonymous (2004b). Nutrition FactAnalysis. URL: http://www.nutritiondata.com/

• Adwan, L. (2003). Premium artisanalbread boutiques in Asia Pacific inEuromonitor International, 12 August2003. URL: http://www.euromonitor.com/

• Dhesi, D. (2004). Stanson Group set tomake it big in bakery business in TheStar daily paper, 23 October 2004.

• Rydings, M. (2002). World BakingGuide: Country: Malaysia in Baking andSnack, September 2002. URL:http://www.bakingbusiness.com/

F E A T U R E

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IntroductionThe current focus of the nation todevelop the agriculture and agro-basedindustries into an important engine ofgrowth of the national economy iswithout doubt a far-sighted policy toenhance the position of the Malaysianeconomy from all angles. Why leave outa renewable resource for potentialforeign exchange earnings, especiallywhen it uses god-given resources like theland, water and sunlight, reusable if youconsider the cycle of the system as awhole. No single person on this greatearth can do without food, however,nobody gives this a second thought. Ithas always been interesting since theearly days, when life was not so fast-paced, to see the land being tilled byvegetables farmers who seem to be ableto produce veggies out of land thatseemed infertile to the uninitiated. Withthem landless and toiling under high-tension wires, these folks have tried to dosimple agriculture towards contributingin their small way to a much-neededcommodity. Now, from the highlandscome the flowers, fruits and veggies andfrom the lowlands come fruits, meat, andpalm oil that contributes to our foreignexchange earnings. In any country, byreducing the import bill and converselyby increasing its agricultural produce, itwould have contributed to the nationaleconomy in terms of financial flows.Recognising the huge import bill (RM16billion) that the country incurs annually,the government should be given thesupport to stem the outflow of our hard-earned Ringgit. Towards this end, thegovernment has put in place variousfacilities and incentives to enhanceprivate sector participation in thesesectors. This article discusses thegovernment policies, incentives andopportunities for investment in theagriculture and agro-based industries, allin the hope of attracting foreign directinvestments and that big corporationswould see the need to go big onagriculture and food production.Recognising the risks involved with theinvestments and longer gestation periodsto reap the fruits of the investments,

policies are set up to account for thesefactors.

BackgroundThere are tremendous ideal prospectsand immense opportunities to be reaped from the food industry inMalaysia. Malaysia is a lush tropical land full of natural resources that addsflavour and variety to the research,cultivation and processing of foods.Malaysia is poised to become one of theleading Asian countries in foodproduction and processing, and she ispositioning herself to lead in the halalfood certification sector. The presentannual export worth of more than RM5billion for processed food accounts fortwo-thirds of the total food exports ofRM8 billion. To give a picture of what’sgoing on in the land, here are someinteresting facts:

• While the country is a netexporter of poultry meat(60% of the meatindustry), she is howeverstill a net importer of meatproducts, particularly beefand mutton. Except forproduction of pasteurisedmilk, the dairy industry isdependent on imports.Poultry meat productionis expected to go up to1.13 million tonnes in2010, up from 0.88 milliontonnes in 2003.

• Exports exceed RM1.5billion per annum of whichfrozen prawns accounts forRM600 million. 85% offisheries are from marinecatch while 15% are fromaquaculture. From 1.31million tonnes in 2003, it isexpected to reach 1.65million tonnes in 2010.

• Although the cerealproducts sector is dependenton imported raw materials,the net export is RM250million per annum.

• Pepper products earns someRM120 million (fifth largestproducer.)

• Net import of RM50 million ofprocessed fruits and vegetables.Major activities are the downstreamprocessing of fruits such as canningof pineapples, guava, passion fruit,jackfruit and banana, and juices. In2003 fruit production comes to 1.51million tonnes and expected to growto 3.8 million tonnes in 2010.

• RM 1.17 billion per annum of exportsof cocoa products (sixth largestproducer.)

• Total export value of edible palm oil-based products is RM22 billion perannum (50% of the world’s palm oiloutput, 65% of palm oil of theworld’s exports.)

• There are about 400 hectares underflower cultivation and of these 70% ofthe production is for export.

Some Malaysian Agricultural Products

Aeroponics Vegetable Farm

Investment Incentives for the Agriculture and Agro-Based Industries...............................................................................................................................................................................................................................................

By: Ms. Ooi Chooi Im, Director, Agro-based Industries Division, Malaysian Industrial Development Authority and Ir. Dr Lee Teang Shui, Agricultural and Food Engineering Technical Division

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• Vegetable production is forecasted toincrease from 813,000 tonnes to 1.9million tonnes by 2010.

The fruit and vegetables processingindustry have tremendous potential forimport substitution and exportopportunities and investors areencouraged to undertake the commercialcultivation of fruits, vegetable andflowers. Also, further development inthe production of value-added palm oil-based specialty products to cater to thehealth conscious (health supplements)and vegetarian consumers is anotheravenue for growth. Quality and safetycertification are top priorities for the foodprocessing sector and thus, the HazardAnalysis and Critical Control Point(HACCP) System Certification isadministered by the Ministry of Health toprovide certification and surveillanceaudits. Apart from adhering to theregulatory Food Act (1983) and FoodRegulations (1985), food manufacturerswith quality assurance in production areawarded the internationally recognisedMS ISO 9001:2000 Certification of QualitySystems by SIRIM QAS InternationalSdn. Bhd.

Malaysian Industrial DevelopmentAuthorityThe Malaysian Industrial DevelopmentAuthority, MIDA, is the government’sprincipal agency responsible for co-ordinating and promoting develop-ment in the industrial, agricultural andservices sector in the country. It is like a one-stop center for a host ofinformation, advisory services andassistance. Its principal role is to assistinvestors by providing information onthe opportunities for investment andfacilitating the development of jointventure investments. Evaluation ofmanufacturing licenses, tax incentives,posts for expatriates and dutyexemptions on raw materials,machineries, equipment and componentsare part and parcel of MIDA’s role. Thoseseeking information or assistance can let the fingers do the walking atwww.mida.gov.my or pay a visit to MIDA’sBusiness Information Center at PlazaSentral in Kuala Lumpur. With its 10nationwide offices and the many officesin major countries overseas, MIDA ispoised for any query on doing businessin Malaysia. The 9-booklet series, GuideFor Malaysian Manufacturers, published inMay 2004, aids local investors on all theywant to know. The range of materialscovered ranges from Getting Started,Approval and Licensing, to the all

important Incentives for Investments,Taxation, Government Grants, Financing,Credit Facilities, Infrastructure Facilities,Employment Policies, Legislations,Employment Policies, ManpowerDevelopment and Training Facilities. Italso covers where research and develop-ment can be carried out to improveprocesses and products.

Incentives For The AgriculturalSector and Food ProductionAccording to the definition given in thePromotion of Investments Act 1986, acompany involved in agricultureincludes that of agro-based cooperativesocieties and associations and soleproprietorships and partnershipsengaged in agriculture. This is differentfrom that for manufacturing whereaccording to the Manufacturing LicenseIndustrial Coordination Act (ICA) 1975,all manufacturing companies withshareholders’ fund of RM2.5 million ormore, or engaging 75 or more employeesare required to apply for amanufacturing license. The liberalisationof equity policy rules that all newprojects in manufacturing, includingexpansion and diversification, will beexempted from both the equity andexport conditions. However the specificequity policy for aquaculture activitiesrequire at least 30% Malaysian equityand in deep-sea fishing ventures, 100%Malaysia equity. The incentives forinvestments are:

Main Incentives

The Promotion of Investments Act 1986provides for two main incentives, thePioneer Status (PS) and the InvestmentTax Allowance (ITA).

(a) Pioneer StatusCompanies producing promotedproducts or are engaged in promotedactivities (Table 1) are eligible forPioneer Status, one that enjoys apartial income tax exemption on 70%of statutory income for 5 yearsresulting in an effective tax rate of8.4%, commencing from itsProduction Day (defined as the dayof first sale of the agricultureproduce.) This goes up to 100% ifinvestors are willing to operate inKelantan, Terengganu, Pahang,District of Mersing in Johore, Sabahand Sarawak.

(b) Investment Tax AllowanceAs an alternative, companiesgranted ITA are eligible for anallowance of 60% on its qualifyingcapital expenditure (factory, plant,

machinery/equipment) incurredwithin 5 years from the date of thefirst qualifying capital expenditureincurred. ITA can be utilised tooffset against 70% of the statutoryincome. Any unutilised allowancecan be carried forward untilexhausted. The remaining 30% ofstatutory income is taxable at theprevailing company tax rate. Again,the 100% value hold true for thespecific areas.

To increase the benefits toagricultural projects, thegovernment has broadened thedefinition of qualifying capitalexpenditure to include expenditureincurred for (i) clearing andpreparation of land, (ii) planting ofcrops, (iii) provision of plant andmachinery used in Malaysia for thepurpose of crop cultivation, animalfarming, aquaculture, inland fishingor deep-sea fishing, and otheragricultural or pastoral pursuits,and (iv) construction of access roadsincluding bridges, construction orpurchase of buildings (includingthose provided for the welfare of people or as living accommodation,)and structural improvements ofland or other structures which areused for crop cultivation, animalfarming, aquaculture, inland fishingand other agricultural or pastoralpursuits. Such roads, bridges,buildings, structural improvementson land and other structures shouldbe on land forming part of the landused for the purpose of such cropcultivation, animal farming,aquaculture, inland fishing andother agricultural or pastoralpursuits

In view of the time lag betweenstart-up and processing of theproduce, integrated agriculturalprojects qualify for ITA for anadditional five years for expenditureincurred for processing ormanufacturing operations.

(c) Incentives for Food ProductionTo encourage new projects, acompany that invests in asubsidiary company engaged infood production, together with thesubsidiary company, qualifies foreither of the following incentivepackages (Table 2). The eligible foodproducts include kenaf, vegetables,fruits, herbs, spices, aquaculture,cattle, goats, sheep, deep-seafishing, etc.

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List of Promoted Activities and Products which are Eligible for Consideration of Pioneer Status and Investment TaxAllowance under the Promotion of Investments Act 1986

Cultivation of teaCultivation of fruitsCultivation of vegetables, tubers or rootsCultivation of rice or maizeCultivation of herbs or spicesCultivation of essential oil cropsProduction of planting materialsCultivation of crops for animal feedFloricultureApicultureSericulture

Chocolate and chocolate confectioneryCocoa and cocoa productsFruitsVegetables, tubers or rootsEssential oilsLivestock productsAgricultural waste or agricultural by-productsAquatic productsAquaculture feed

Cultivation of timber, bamboo or cane, Cane products, Bamboo products

Earthmover tyres, agricultural tyres, industrial tyres,commercial vehicle tyres, motorcycle tyres, aircraft tyres orsolid tyresPrecured tread linersRetreading of aircraft tyresLatex products: surgical gloves, safety/special functiongloves, condoms, catheters, rubber (elastomeric) specialtycoatings, rubberised fabrics, rubber floorings, rubbermoulds, modified natural rubber, reclaimed rubber, latexproducts: carpet underlay, swimming caps, balloons, fingercots, toys, latex thread

Oleochemicals or oleochemical derivatives or preparationsMargarine, vanaspati, shortening or other manufactured fat products

Cocoa buffer replacers, cocoa butter substitutes, cocoa butter equivalent, palm or special oleinCrude palm kernel oil or palm kernel meal

Refining of palm oil or palm kernel oil

FORESTRY AND FORESTRY PRODUCTS

MANUFACTURE OF RUBBER PRODUCTS

MANUFACTURE OF PALM AND PALM KERNEL OIL PRODUCTS AND THEIR DERIVATIVES

Dry rubber products:Beltings, hoses, pipes and tubings, rubber profiles,inflatable rubber products, industrial and office equipmentrollers, seals, gaskets, washers, packings and rings, anti-vibration, damping and sound insulation products, rubberlinings

Table 1: Promoted Activities and Products Qualifying for PS and ITA

Livestock farming (excluding rearing of chickens,ducks or pigs)Production of breeder stockSpawning, breeding and culturing of aquatic productsOff-shore fishingCultivation of medicinal plantsCultivation of cocoaCultivation of coconutCultivation of sago palmRearing of chickens and ducks

Plant extracts for pharmaceutical, perfumery, cosmetic or foodindustriesHigh fructose syrupCoconut products except copra or crude coconut oilStarch productsCocoa paste, cocoa butter and cocoa powder

PROCESSING OF AGRICULTURAL PRODUCE

AGRICULTURAL PRODUCTION

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An existing company that reinvests inthe production of the above foodproducts also qualifies for the sameincentives for a period of five years. Thefood production project for both new andexisting companies should commencewithin a year from the date the incentiveis approved. Applications should besubmitted to the Ministry of Agricultureby 31 December 2005. A locally-ownedmanufacturing company with Malaysianequity of at least 60% that reinvests inpromoted food processing activities iseligible for another round of the PioneerStatus or Investment Tax Allowance(ITA) incentives.

More Incentives For TheAgricultural SectorCompanies engaged for at least 12months in the production of essentialfood such as rice, maize, vegetables,tubers, livestock, aquatic products, andany other activities approved by theMinister of Finance can enjoy theReinvestment Allowance (RA). Thequalifying capital expenditure includesexpenditure incurred, as mentionedabove. The RA is in the form of anallowance of 60% of the qualifyingcapital expenditure incurred within aperiod of 15 years beginning from theyear the first reinvestment is made. Theallowance can be offset against 70% ofthe statutory income in the year ofassessment. Unutilised allowances can becarried forward to the following yearsuntil fully utilised. Companies thatundertake reinvestment projects in thepromoted areas mentioned previouslycan offset the allowance fully againsttheir statutory income for that year ofassessment.

Reinvestment Incentives forResource-Based Industries are offered tocompanies that are at least 51%

Malaysian-owned and are in the rubber,oil palm and wood-based industriesproducing products that have exportpotential. Companies in these industriesreinvesting for expansion purposes areeligible for another round of PioneerStatus or Investment Tax Allowance. Topromote modernisation and the usage ofenvironment-friendly practices in theagricultural sector, companies or farmersin the chicken and duck business whoreinvest for the purpose of shifting fromthe opened house system to the closedhouse system will be eligible for RA for aperiod of 15 consecutive yearscommencing from the first year thereinvestment is made. This incentive isgiven on condition that the minimumrearing capacity of the closed housesystem is (i) 20,000 broiler chickens orducks per cycle or (ii) 50,000 layerchickens or ducks per cycle. Thisincentive is effective from the year ofassessment 2003 and all projects are to beverified by the Ministry of Agriculture.

Upon the expiry of the ReinvestmentAllowance (RA), companies that reinvestin promoted agricultural activities andfood products are eligible to apply for theAccelerated Capital Allowance (ACA).These activities include the cultivation ofrice, maize, vegetables, tubers, livestock,aquatic products and any other activitiesapproved by the Minister of Finance. TheACA on the capital expenditure is to beutilised within three years, i.e. an initialallowance of 40% in the first year and anannual allowance of 20%. Claims shouldbe submitted to the Inland RevenueBoard, accompanied by a letter fromMIDA certifying that the companies areundertaking promoted agriculturalactivities or producing promoted foodproducts.

A person or a company carrying onan agricultural activity can also claim for

capital allowances and special industrialbuilding allowances under the IncomeTax Act 1967 for certain capitalexpenditure. Capital expenditure thatqualifies include expenditure incurred onactivities previously mentioned. Acompany continues to get the allowancefor as long as it incurs the expenditure,regardless of whether it already enjoysPioneer Status or ITA.

In what is called an AcceleratedAgriculture Allowance for the planting ofrubberwood trees for the furnitureindustry, a non-rubber plantationcompany that plants at least 10% of itsplantation with rubberwood trees iseligible for the Accelerated AgricultureAllowance, whereby the write-off periodon the capital expenditure incurred forland preparation, planting andmaintenance of rubberwood cultivationis accelerated from two years to one year.This incentive is for project applicationsreceived by the Ministry of PrimaryIndustries from 21 September 2002.Applications should be submitted to theMinistry of Primary Industries

Schedule 4A of the Income Tax Act1967 provides for a 100% allowance oncapital expenditure for ApprovedAgricultural Projects as approved by theMinister of Finance. This coversqualifying capital expenditure incurredwithin a specific time frame for a farmthat cultivates and utilises a specifiedminimum acreage as stipulated by theMinister of Finance.

Approved agricultural projects arethose for the cultivation of vegetables,fruits (papaya, banana, passion fruit, starfruit, guava and mangosteen), tubers,roots, herbs, spices, crops for animal feedand aeroponic and hydroponic grownproducts; ornamental fish culture; fishand prawn rearing (pond culture, tankculture, marine cage culture, and off-

A company which takes up a 100% equity in a subsidiary company engaged in food production receives a taxdeduction equivalent to the amount of investment made in that subsidiary.

The subsidiary company enjoys full income tax exemption on its statutory income for 10 years commencing fromthe first year the company enjoys profits, in which, (i) losses incurred before and during the exemption periodcan be brought forward after the exemption period of 10 years, and (ii) dividends paid from the exempt incomeare exempted in the hands of the shareholders.

A company which takes up 100% equity in a subsidiary company engaged in food production will be givengroup relief for the losses incurred by the subsidiary company before it records any profit.

The subsidiary company enjoys full income tax exemption on its statutory income for 10 years. This commencesfrom the first year the company enjoys profits, in which (i) losses incurred during the tax exemption period canbe brought forward after the exemption period of 10 years; and (ii) dividends paid from the exempt income areexempted in the hands of the shareholders.

Table 2: Incentive Packages

A

B

Incentive Package Details of Incentives

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shore marine cage culture); cockles,oysters, mussels, and seaweed culture;shrimp, prawn and fish hatchery; andcertain species of forest plantations. Theincentive enables a person carrying onsuch a project to elect to deduct thequalifying capital expenditure incurredin respect of that project from hisaggregate income, including incomefrom other sources. Where there isinsufficient aggregate income, theunabsorbed expenditure can be carriedforward to subsequent years ofassessment. Where he so elects, he willnot be entitled to any capital allowanceor agricultural allowance on the samecapital expenditure (as before). Thisincentive is not available to companiesthat have been granted incentives underthe Promotion of Investments Act 1986and whose tax relief periods have notstarted or have not expired. To increaseexport earnings, incentives are given tocompanies which exports fresh and driedfruits, fresh and dried flowers,ornamental plants and ornamental fishenjoying a tax exemption of its statutoryincome equivalent to 10% of the value ofits increased exports. Companiesproviding cold room and refrigeratedtruck facilities and related services suchas the collection and treatment of locallyproduced perishable food productsqualify for Pioneer Status or InvestmentTax Allowance. To enhance thecompetitiveness of Malaysian companiesin the global market for “halal” products, expenses incurred in obtaining“halal” and quality certification and accreditation, both local andinternational certifications are allowed asincome tax deductions. Companiesproducing high quality halal food forexport and which use modern and stateof the art machinery and equipment areeligible for ITA of 100% qualifying capitalexpenditure within a period of 5 yearsand can be offset against 100% ofstatutory income.

Other IncentivesThere are also incentives given for HighTechnology Companies, where the PSstatus is given with income taxexemption on 100% statutory income for5 years or ITA of 60% on qualifyingcapital expenditure for 5 years from thedate the first qualifying capitalexpenditure is incurred. The allowancecan be utilised to offset against 100% ofits statutory income for each year ofassessment. However, the hightechnology company must fulfill thecriteria that the percentage of local R&Dexpenditure to gross sales should be at

least 1% on an annual basis. Companiesare given three years from the date ofoperation or commencement of businessto comply, and at least 7% of the totalcompany’s workforce should be scientificand technical staff with diplomas ordegrees with a minimum of 5 years’experience. The list of products is shownin Table 1. Food production usingemerging technologies and advancedfarming systems, and the development,testing and manufacturing of foodproducts using emerging technologiesand advanced manufacturing systemsare considered as high technology.

Apart from the above, incentives arealso given for companies in R&D.Contract R&D companies that provideservices to other companies other than itsown related company stands to beeligible for PS and ITA status. R&Dcompanies that provide services both forits related company and other companiesare eligible for ITA qualification.However, the criteria include researchbeing undertaken in accordance to theneeds of the country; at least 70% of theincome of the company be derived fromR&D activities; at least 50% of itsworkforce and at least 5% must bequalified personnel in R&D functions,“for food manufacturing companies and for agricultural-based companies,respectively. Companies with in-houseR&D qualify for ITA of 50% on qualifyingcapital expenditure (related to R&Dactivities) incurred within 10 years. Theallowance can be offset against 70% ofstatutory income. Effective 21 May 2003,R&D companies stand to gain foreligibility of a second round of PS statusfor another 5 years or ITA for a further 10 years.

To give added impetus to agriculturaldevelopment, incentives are also givenfor commercialisation of public R&Dproducts. Effective 11 September 2004, acompany that invests in its subsidiarycompany involved in the commer-cialisation of resource-based R&Dfindings will be given tax deductionsequivalent to the amount of investmentmade to the subsidiary. The subsidiarythat undertakes this activity are to begiven 100% tax exemption on statutoryincome for 10 years. The criteria toqualify include being at least a 70%Malaysian company and should own atleast 7% equity of the company doing thecommercialisation effort. This effort hasto be implemented within a year from thedate of approval of the incentive.

Other incentives include doublededuction on revenue expenditureincurred on approved research, and

double deduction on costs incurred forthe use of facilities and services ofapproved institutions or R&D companiesor contract R&D companies. ApprovedR&D expenditure incurred during the PSperiod will be allowed to accumulate andbe brought forward and given anotherdeduction after the PS period. Alsopermitted are double deduction on cashcontributions made to approved researchinstitutions and an Industrial BuildingAllowance for buildings for R&Dpurposes. There are a host of otherincentives including for products forexport, value of increased exports,promotion of Malaysian brand names,tax exemptions for outsourcingmanufacturing activities, development ofwebsites to promote sales, freight charges(East Malaysia to Peninsula Malaysia,)acquiring a foreign company, trainingincentives, incentives for beingenvironmentally friendly, and incentivesfor raw materials, each with their owncriteria.

ConclusionThis article is written with the purpose ofinforming readers about the manyadvantages of investing in agricultureproduction and food processing grantedby the government, in the hope that thenation would gain from a net agriculturalproduct exporting vantage point. Withthe neat package of advantages offered,companies should really be making abeeline to see the fruits of their labour.There may be other aspects that need tobe considered though, one of which is theacquisition of land for the activitiesdesired and in this matter; the stategovernments should be the ones toapproach, since land is a statejurisdiction. Suffice to mention that inorder to be considered a force to bereckoned with, only powerfulconglomerates or the bigger corporationswho are willing to go big to produce witheconomies of scale, quality, guarantees,packaging, promotion, and healthyproducts, can make it happen.

AcknowledgementsThis article is written based on a talkgiven by Ms. Ooi Chooi Im, Director,Agro-based Industries Division,Malaysian Industrial DevelopmentAuthority (MIDA), on 19 February 2005,organised by the Agricultural and FoodEngineering Technical Division (AFETD)of The Institution of Engineers Malaysia(IEM). The authors would like to expresstheir sincere thanks and appreciation toMIDA for the use of her literature in thecourse of writing this article. ■

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The Second World Engineers’Convention held in the first week of

November 2004 has a very appropriateand apt theme in “Engineers Shape TheSustainable Future.” It was set against abackdrop of a world long obsessed withgrowth when it is not busy at war. In thehost city Shanghai, which epitomizes theexcesses of China’s teeming cities, therelooms the dark shadow of her twodecades of unrelenting growth anddevelopment. To be fair, the part ofShanghai we visitors frequented wasrather pleasant and traffic congestionappears tolerable. The same cannot besaid of her air and water quality and theliving conditions of the people in thestreets.

Dr William Wulf, President of theNational Academy of Engineers, USA, inhis opening message invoked anAmerican folk belief of cooking a frogwith slow fire; had it been boiling waterin the first contact, the frog would haveskipped out of the pot quickly, but if thewater temperature were to be raisedgradually, the frog would experience afalse complacency and it would face theinevitable fate of being cookedeventually. He saw the parallel betweenhuman beings living in a worseningenvironment and the frog being putthrough a slow boil.

Sustainability will eventually beachieved through nature’s own way ofseeking ecological equilibrium or balancebut if we do not conscientiouslyintervene to correct excesses in someareas, the eventual equilibrium levelachieved may not be entirely benign tohuman habitation with the eventualitythat the well-being and even the veryexistence of mankind may not evenfigure in the new equilibrium.

This appears to be the ultimate fateawaiting mankind as we get used to thedeceivingly slow process ofenvironmental degradation and theaccompanying ecological imbalance.Take the jungle for instance; it suffersfrom the direct blow of over-logging andthe pressure of human of cultivation. Its

many precious plant species and faunaare being exploited to the point or brinkof extinction. The jungle, its plant life andthe fauna that thrive in it are in a verydelicate ecological balance. Many plantspecies and fauna are fundamental to thehealthy propagation and growth of thejungle, which in turn provides home andprotection to these inhabitants of thejungle. Our direct encroachment of thejungle coupled with over-exploitation ofits other resources has the net effect ofsetting off a series of ecologicalimbalances on an accelerated pace. Whennature has to readjust itself on a grandscale, it is normally accompanied byoutbreak of what we term as unnaturalevents; be they extreme weather changes,or the spread of pests, diseases orstubborn viruses. We always findphysical or chemical means ofovercoming these changes, we thought. Ifthese fail, accommodating the newequilibrium would be the order of theday. Exhaust fumes pollutes theenvironment and to overcome poor airquality on the road, we have to drive inenclosed air-conditioned cars, but at theexpense of burning more fuel, whichcompounds pollution. We have grown toaccept such self-deceiving acts in thebelief that we have been smart and areable to make the adjustment to fit into anever-changing ecological equilibrium.The truth is we have been lucky but onlyas lucky as the frog, as in the finalanalysis nothing short of early perceptionof danger and jumping off the pot wouldsave the frog. That much we can learnfrom the American folk belief of Dr Wulf.

In the same convention, there weresome discussions on innovativetechnologies as a key tool for asustainable future. However, it isdebatable if such technology-drivenadvantage can sustain developmentindefinitely, as the real contribution oftechnology is in cutting down rawmaterial wastage and increasingefficiency in production and therebyprolonging the production and demandcycle. On the supply side, exploitation of

resources has a ceiling. Many resourcesare depleting while those that canregenerate require a critical mass to keepthem sustainable. The demand sideappears to have a free run, beingsupported by growing populations,wasteful lifestyles and vestedcommercial interests.

In tracing human progress on PlanetEarth, we note that technology has anextremely slow takeoff since the firsthumans discovered the use of crudestone implements and fire. It took thescattered colonies of the early humansclose to one million years to journey theso-called Stone Age before bronze wasintroduced about 3,500 years ago. Sincethis quantum jump from stone to metal,the pace was accelerated. Explosives inthe 14th century and then electricityintroduced in the 19th century let loosethe power of science. Advance andgrowth in the last century has beennothing short of spectacular.Unfortunately the advance is driven byconsumption and built on resourceexploitation. In recent decades, fuelledby advances in electronics and IT, thedesire to consume has reached anunprecedented scale and the raid onresources is frenzied.

Factories spring up to produce andmanufacture goods to meet the demandof our insatiable consumption habit. Thedirect impact of manufacturing-relatedactivities on environmental degradationis devastating. Direct pollution of theenvironment by harmful gas emissions,waste water discharge and hazardousindustrial dumping cause untolddamages to both air and ground water,the very basic elements sustaining lifeforms on Earth. The oceans are notspared either. Waters around the world’sbusy sea lanes are polluted. The pollutionin our coastal waters provides a glimpseof the plight of the oceans of the world.The Eighth Malaysia Plan reported thatof 273 water samples taken from coastalwater of all states, 94% were polluted byoil and grease, 73% by suspended solidsand 30% by E. coli. That was before the

WEC 2004 Shanghai: Engineers Shape TheSustainable Future – After Thoughts.....................................................................................................................................................................................................................

By: Ir. Yam Seng Lam, B.E. (Adelaide), P.Eng., MIEM

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year 2000. Indirectly, disappearingspecies and fauna, a direct result of ourmindless raid of nature’s treasure trove,adds on to the disequilibrium. All thesehave a way of getting back at us throughnew ecological equilibrium that mayunleash unimaginable terror forces ofnature.

Technology riding on the success ofmass production efficiency has enrichedour lives with comforts and luxuries. The price to pay is resource plunderingand environmental degradation.Environmental consciousness as well aseconomic consideration in recent decades has set governments andbusinesses to drive technology in a morerational way to enhance the efficientutilization of raw material and energy inproduction processes and therebyreducing waste and energy infurtherance of the cause for sustainabledevelopment. This is the area engineersand let us be fair, scientists in variousfields too, have long been involved inand some of the main success scored areas follows:• Raw material utilization is getting

more efficient throughminiaturization of components andbetter component design efficiency.

• Substitution of hazardouscomponents with environmentallyfriendly materials and substitution ofnon-renewable materials byrenewable resources.

• Adoption of recyclable componentsor materials in product design.

• Better production efficiency, which ismore energy efficient and minimizesraw material wastage.

Japanese electronics is a goodexample of component miniaturization.But in total, the above processes are bestexemplified by the motor industry and inparticular the German car makers seemto be showing the way. As early as 1988,BMW had started coding the plastic bodypanels of one of its models for thepurpose of easy recycling. Car makersare also avoiding difficult to recycle andhazardous material like PVC, mercury,lead and cadmium in car components.Researchers are also developing tougherpure material like polypropylene toreplace the less recyclable glass fibrereinforced composites. The above are on-going processes and there is still vastscopes to explore in the varied fields ofengineering. What comes to mind readilyin the context of Malaysian constructionindustry is the under-utilization of pre-

cast technology. Prefab andstandardizing of components are twoareas where the industry is trying tominimize waste but, for various reasons,have not gained the acceptance itdeserves. The CIDB IndustrialisedBuilding System (IBS) initiative in recentyears is a refreshing step in the rightdirection.

The above drives home the point thatbasically engineers are contributing theirefforts more at the downstream design orproduction end to meet the demand.These efforts help in satisfying thedemand at a lesser cost to theenvironment but may still be inadequateagainst the onslaught of demandpropped by a growing population withan insatiable appetite to consume. In theshort term, the population is set to growand so will demand. We harbour hopethat the world’s population willeventually reach a manageable level, inthe belief that improved life quality,coupled with the human survival instinctwould help to keep the number down.Assuming that the population figure willeventually sort itself out, the greatestthreat to sustainable development wouldappear to be the demand created by aninsatiable human appetite to consume. Ifthere were effective input by engineers atupstream or conceptualization orplanning level to help moderate thedemand for products or services, thenthis would be the most cost and resource-effective contribution by engineers.

Intervention at this level to moderatedemand is not all about technology andengineering skill only. More often thannot, the main decision makers are notengineers. How effective can this bethen? There is no definite answer; forexample commuters can be induced totake buses or the Light Rail Transit (LRT)instead of cars if such public amenitiesare well-planned and efficient. Goodplanning and efficiency can only resultfrom realistic ridership projections andoptimum route and machinery selectionby engineers and town planners at theconceptualization or planning level.Again its impact on the car populationmay not be great but it does reduce dailycar trips substantially. In Singapore, inconjunction with an excellent publictransport system, tax disincentive andother measures are applied to curb carownership quite successfully. But notmany countries would want to introducesuch an unpopular tax regime. Thisreaffirms that the success or failure of the

system is not entirely engineering orcentered on engineers; there are also thetown planners, other bureaucrats andpolitical agenda or vision to contendwith. Such are the difficulties andcomplexities of attempting to moderatedemand with upstream engineeringinput. Intimidating as the task mayappear, we know an efficient system andits success would ultimately depend ondecisions derived from facts and science-based articulation. Hence a lot of hopeand responsibilities would still rest onthe shoulders of engineers as seniordepartment heads and consultants toensure that science and qualityengineering data would figure in thedecision making process.

This is a less explored area butengineering efforts at this level requiregreat skill and to measure up to the taskand responsibilities we need well-informed engineers with passion andconscience for the environment. Suchattributes can best be cultivated in theeducation system. Many schools haveregular environment programmes likecollecting recyclables and tree planting.But more is required at tertiary level andfor the purpose intended here,engineering schools especially have tocreate environmental awareness in theirstudents by impressing upon them thedelicate equilibrium of the ecosystem, thealarming state of its degradation andman’s role within the system. This wouldprovide the correct ambience to nurtureand sustain a pool of like-minded and well-informed engineers withcommon passion and conscience for theenvironment. With such attributes,engineers will be able to share theirthoughts in promoting a structuredlinkup between conscience and scientificor engineering efforts. The first little stepmay be modest but over the long termthere will be respectable incrementalimprovement to the engineering efforts.The first step could provide us with abetter and more scientific definition forenvironmental conscience and theresponsibilities it entails. From this wecan reasonably expect the evolution ofscientific linkups in the form of scientifictools, financial models and eveninterfacing methodology with others forarticulating the case of engineeringintervention of projects at conceptua-lization stage to moderate demand.

We are not commencing from zerobase. On the application side, theengineering fraternity already has the

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tools such as value engineering, growthand cash-flow projections and duediligence procedures. Perhaps theseoften-overused tools can be given freshterms of reference or mandates toprovide the methodology andframework for engineering efforts aimedat moderating demand.

The example of transport systemsdemonstrates that the excellent efforts ofengineers and planners in projectingridership demand and mapping out anoptimum transport network at theconceptualization stage can effectivelyinfluence commuters’ choice and resultin a substantial reduction of daily cartrips. There are other areas where similarintervention may work beneficially. Allover the world there are the superfluousand overbuilt facilities that could betrimmed but are nevertheless built. Yetthere are still projects, which insist onproviding facilities based on anunrealistic growth projection over anunnecessarily long period. The waste inthe costly upkeep of oversized facilitiesthat are under utilized over a long periodis sinful, not to mention that rapid

technology advance and social-economicshift may make the original planning anddesign irrelevant before full utilization.The thought sends cold shudders rightdown to our empty pockets.

So far our discussion on engineeringintervention at the conceptualizationstage to help moderate demand isfocused on a narrow field of publicprojects. There is fair doubt as to itseffectiveness and relevance incommercial production of consumergoods and services. Here engineers in thebusiness sector appear to be in adilemma, as intervention by whatevermeans to reduce demand would gocounter to vested commercial interest.Often in such businesses, engineers areexcluded from the inner decision-makingcircle and are deprived of a chance inarticulating the engineering perspectives.On this we can take heart at what oneIndian academician at the WEC 2004suggested: “Engineers who conscien-tiously modify treatment plants forgreater efficiency and search foralternative fuels are shoulderingresponsibilities on one side of the coin,

the other side of the coin where engineersare mostly sidelined, requires us toeducate ourselves and in turn others.”That is another perspective of engineers’struggle to contribute at the two levels:the design/production level and theconceptualization/planning level. Whilethe statement seems to accept the limitthat what engineers can do is mainly atthe conceptualization level (as engineersare sidelined on the other side of thecoin,) the suggestion neverthelessadvocates educating ourselves and inturn others. This probably is where theanswer lies. To reach out for a betterfuture, this is also the spirit engineersshould adopt when confronted byfrustration.

The encouraging sign is that globallybig businesses are more ready to embrace the role of good corporatecitizens. This would provide the rightbusiness environment to make engineersmore relevant on the other side of thecoin, but first we must share a passion for the environment and educate ourselveson the same topic before we can educate others. ■

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We refer to the comprehensive reportby Ir. Yee on the interesting talk

on “Soil Nailing & Guniting” presentedby Ir. Neoh, which was published in the IEM Bulletin (October 2004). In thereport he has highlighted three (3)internal and four (4) external failuremodes that must be checked to ensuresafety. Figure 1 of the report shows alayer of reinforcement at 30mm from thesoil face; this short lever arm is generallyunlikely to satisfy the bending resistancefor the facing structural design at the mid span between the nails particularlyfor high cut slopes, in which the lateralpressure on the gunite facing could be high.

Soil nail facing provides a lateralconfinement to the soil between the nails,in which the soil nail facing plays a majorrole to resist the earth pressure. It isimportant to note that the facing needs tosatisfy the structural design requirementsin bending and shear.

As mentioned in the “Manual ForDesign & Construction Monitoring Of

Soil Nail Walls” by the U.S. Department of Transportation, Federal HighwayAdministration (FHWA, 1998), the facingstructural design requires provision ofadequate bending moment capacity toresist the earth pressures applied to thefacing span between adjacent nail heads,and provision of adequately sizedbearing plates to provide adequate

punching shear capacity and must beable to transmit load from the gunitefacing to the nails.

It is therefore important to make surethe design and detailing of soil nail andgunite facing meets the structural designrequirements. Figure A shows the typicaldetailing of soil nail gunite facing. ■

Comments on the Report on “Soil Nailing & Guniting”............................................................................................................................................................................................................................................

By: Ir. Dr Gue See Sew and Sdr. Gue Chang Shin

Figure A: Typical Detail of Soil Nail and Gunite Facing

Dimension Publishing Sdn Bhd is an established publishing house with vast experience in the publication ofmagazines, directories and journals relating to the engineering field. It is a wholly owned subsidiary of a HongKong based publishing company with several international offices. In this recruitment exercise, we are looking forsuitable candidate to join our team as:

ADVERTISING SALES EXECUTIVERequirements: • Able to demonstrate excellent communication and interpersonal skills.• Fluent in English and Bahasa Malaysia.• Outgoing personality, tactful and is able to work both independently and in a team environment.• Age 24 and above, those with 1 or 2 years experience in media sales would be an added advantage.• Strong interest in engineering and technology-based publications.• Posses a valid driving license and own transport.• Willing to work outstation.• Average salaries and allowances amount to RM40,000.00 per annum.• Preferably Chinese female with diploma/degree holders._______________________________________________________________________________________

Interested applicants can fax in or e-mail in with full resume and salary details to:

[email protected] or

fax : 03-7955 5773

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Now, it is indeed unusual that I singleout any particular person or phrase

to write on, on grounds that it is rude toridicule someone for their poorcommand of language. But an e-mailwhich G&S received recently has stayedwith me and is indeed reflective of theshocking command of English amongstour engineering students.

The e-mail of contention is from arepresentative of a student body from aprominent local university. He being thecoordinator for the student body,‘demanded’ that we forward him a logofor inclusion into their brochure. Thisperson is already a final year student inthe engineering faculty and wouldgraduate next year.

It gets to me, this language thing. Itgnaws at me that a lot of students in thelocal universities think that having aworse-than-average English vocabularydoesn’t really matter. Why? And the factthat he wrote that e-mail to manypersons meant that he probably didn’tknow that there was something verywrong with his language.

Reading this you would probablythink I’m a snob. Am I? Is it too much toask that a person write an e-mail of

perfectly constructed sentences? Nothingbombastic, nothing superfluous, justsimple text-book sentences. Maybe I’mlucky. I come from a background wherebooks were with me even before I couldread. At home, books overflowed theshelves and there were times my mumhas had to chuck that odd book or two.

But then, I also have friends whosefirst language is their native tongue. Myvery best friend to whom I’ve had topatiently explain what a nipple is comesfrom a background where no one speaksEnglish. And really, I respect her formaking such an effort. She now switchesback and forth between Mandarin andEnglish effortlessly and ashamedly, Iregret teaching her some words anymother would pale at.

You know how it is, there will be arash of theories from educationists andpoliticians, expounding their views onthe standard of English (or the shockinglack of it) in our country. And then, aftereveryone has had their say, nothingreally gets done. Students still plod alongwith their shuddering English and thinkit’s all hoity-doity.

But it’s not! It’s no more just themlooking for a job in this country where

everyone also goes ‘I demand for a logo.’The world had gotten so small, it’spractically borderless. The competitionhas just gotten so much tighter. Thatpiece of paper to say that you’re a top A student just doesn’t cut it anymore. If you’ve attended our first talk in theseries of “Engineering the Engineer”recently, you’ll know exactly what I’mtalking about.

No system is going to give you abetter command of English. Of course itwill help – a bit. But it’s really more ofattitude. It’s about taking opportunitiesto speak it, to read it and to makemistakes. So what if they laugh or writeabout you in their column. At least you’relearning. It’s about coming out of yourcomfort zone and being challenged.Constantly. But after a while, it getseasier and easier and before you know it,you’ll not ‘demand’ someone for a logo,you’ll politely request for a logo. In anutshell, it’s all about being your ownsteward. ■

For more info on our hip and happening young engineers, visit

http://www.iem.org.my/external/g&s/or mail us at [email protected]

Graduate & Student Sect ion

Solly, You Talking to Me?.........................................................................................................................

By: Sdri. Elaine Koh

The World NEEDS Engineers...... • Whose truth cannot be bought, • Whose word is their bond, • Who put character and honesty above wealth, • Who do not hesitate to take chances, • Who will not lose their identity in a crowd, • Who will be as honest in small things as in great things, • Who will make no compromise with wrong, • Whose ambitions are not confined to their own selfish desires, • Who will not say they do it “because everybody else does it,” • Who are true to their friends through good report and evil report, in adversity as well as in prosperity, • Who do not believe that shrewdness and cunning are the best qualities for winning success, • Who are not ashamed to stand for the truth when it is unpopular, and• Who have integrity and wisdom in addition to knowledge.

Please help me to be this kind of engineer. Bob Bea

Grateful acknowledgement is made to Professor Robert Bea for permission to print this inspiringpiece. Thanks to Ir. Parminder Singh who pointed it out to the Secretariat.

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Date : 16-20 December 2004Place : Yangon, MyanmarMalaysian YEAFEO Delegates : Sdr.Suresh Yegambaram, Sdr. Yau ChauFong, Sdri. Kee Wai Fun, Sdri. TrudyGanendra & Sdr. Ngeow Yen Wan

Mingalabar……(hello in Burmese)

It was one of the MOST unforgettableand HAPPENING delegations we haveparticipated in. Five days and fournights with Young Engineers fromMyanmar, Singapore, Indonesia,Cambodia, Japan (observer), Brunei,Hong Kong (observer), Vietnam,Philippines and Thailand, was just notenough. We were truly, madly anddeeply sad to leave Yangon (the capitalof Myanmar) and the superbhospitality shown by the YoungEngineers (YE) of Myanmar.

16 December 2004 (Thursday)We started our journey from KLIAand safely landed at the YangonInternational Airport, Myanmar. Fromthe look of the airport, it was as if wewere in Malaysia in the early 70’s. Wewere informed earlier that someonecarrying a CAFEO signboard from theMyanmar Engineering Society will bereceiving us. But what we experiencedwas way beyond our expectations. Apool of Young Engineers fromMyanmar, including a few prettyyoung ladies wearing their nationaldress, surrounded us with joy and gaveus a very pleasant welcome.

Upon reaching the prestigiousSedona Hotel, the venue forCAFEO/YEAFEO, we were againgreeted by the passionate YoungEngineers (YE) of Myanmar. In fact, allthe registration counters were handledby YE volunteers. Their commitmentthroughout the event was absolutelyimpressive.

After registration, we were off to asimple Myanmar traditional dinnerwith the YE committees led by theirtwo leaders, namely Mr. Ye Myat Thooand Ms. Mya Seng Aye. Their localfood was really yummy and Myanmarcuisine was something like acombination of our Malay and Indianfood. Following the dinner, we were

taken to theChinatown tohave a view oftheir nightmarket and wehad a chanceto try some oftheir localfruits.

17 December2004 (Friday)The daystarted atabout 8am fora city tour inYangon. Allthe delegateswere crampedinto two hiredcoaches by the organizer. At first, wewere surprised by the smooth flow oftraffic to our destinations. Later wefound out that all the delegates weretreated exactly like how we treat NAMor OIC delegates in Malaysia, withpolice escorts and road blocks to all ourdestinations. That really gave us animpression on how important thisevent was to their country.

Our first destination was SulePagoda and the Historical Monument.Next we visited National Races Village,a cultural village which is similar toour Mini Malaysia in Malacca. The tourcontinued after lunch and this time wewere brought to Shwethalyaung, one ofthe world’s most beautiful recliningBuddhas. Our next stop was shoppingat Scott Market, which is somethinglike our Petaling Street, where a varietyof local products could be found.

The day’s dinner was held at themajestic Karewei Palace. For us, thedinner was great not just because of thefood but it was the starting point ofnew bonds of friendship. We met therest of the young delegates who hadjust arrived from their respectivecountries. During the night, most of uswere too busy exchanging businesscards and mingling with each otheruntil we did not even have much timeto eat our food.

18 December 2004 (Saturday)It’s time to get back to business. This is

the start of the official day for CAFEOand YEAFEO. The opening ceremonywas officiated by the Prime Minister ofMyanmar and was covered live by themedia, touted as one of the biggestevents of the year in the country.

After the end of the ceremony, theYEAFEO delegates kicked off with ourvery own conference program of theday. It started with country reportspresented by all the chairmen of therespective institutions. Our G&Schairman, Sdr. Suresh Yegambaramgave an impressive presentation bypresenting all the activities done byG&S during the past one year and theupcoming activities as well. Theactivities and achievements of G&Samazed all the other YEAFEOdelegates and they congratulated us bysaying “IEM G&S certainly has themost active young engineers sectionamong ASEAN countries.” Thatremark certainly gave us extramotivation to move forward.

After lunch, all the delegatesproceeded to the next important eventin the agenda, the 11th YEAFEOCouncil Board Meeting. During themeeting the following issues werediscussed:

(i) Strategic plans to enhancecommunication between YEAFEOmembers

Keeping up communication amongYEAFEO members and frequent

The 11th Young Engineers of theASEAN Federation of EngineeringOrganizations Conference (YEAFEO).....................................................................................................................................................................

Reported by: Sdr. Suresh Yegambaram & Sdr. Yau Chau Fong

The welcoming by the Young Engineers of Myanmar Engineering Society at the airport

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update of the website havebeen a serious problem allthese years. To solve that,Malaysia was selected as thecoordinator to follow upwith countries for updatesand to ensure activeparticipation from all toenhance communication.Meanwhile, Thailand agreedto continue their duty as theweb master for theYEAFEO web page. All delegates agreed to send updates to the websiteon a monthly basis.

(ii) Formation of permanentsecretariat for YEAFEOCurrently, the host countrywill be the secretary forYEAFEO by a rotationalbasis every year. This causedsome loss of informationand there was no properpoint of contact forYEAFEO. Therefore,Malaysia proposed to have apermanent secretariat tohandle and maintainYEAFEO affairs in a muchmore organized manner. Thesecretariat should act as apoint of contact and aninformation center forYEAFEO. Malaysia, theappointed coordinator wasrequested to produce a paperindicating the pros and consof the proposed set up.

(iii) Resource exchangeprograms between countriesMalaysia suggested thatresource exchange foreducation programs interms of speakers for coursescan be done amongcountries. Other than that,

it was also suggested thatdelegations to membercountries should beorganized to create morechances to learn from eachother. All the delegatesagreed to support suchresource exchangeprograms.

After the meeting, all thedelegates exchanged gifts andtook the opportunity to inviteeach other to their respectivecountries. Singapore invitedall the YEAFEO members tojoin the IEM/IES meet inSingapore this May.Meanwhile the Malaysiandelegates invited all theYEAFEO members toparticipate in the IEM G&S’stechnical delegation to Japanin April 2005.

The official function forYEAFEO ended after a dinner,but it wasn’t the end of theday. A bunch of almost 30delegates conquered thestreets of Chinatown; eating,tasting and chatting all alongthe way.

19 December 2004(Sunday)Although most of us sleptvery late the night before, theexcitement and enthusiasmmade us wake up early tostart our journey again. Thistime YE of Myanmarchartered a bus with a policeescort for our YEAFEOdelegations’ tour. That wascool!

Our first destination wasthe famous ShweDagonpagoda, the most notablebuilding in Yangon. It is a

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The photo session at Kerawei Palace

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great cone-shaped Buddhist monu-ment that crowns a hill about one milenorth of the Cantonment. The pagodaitself is a solid brick stupa (Buddhistreliquary) that is completely coveredwith gold. It rises 326 feet (99m) on ahill 168 feet (51m) above the city.

Then, it was another visit to theNational Races Village as most of thedelegates were unable to visit the placeon the first day. Although theMalaysian delegates had been therebefore, the experience was totallydifferent when visiting with all theother delegates. It was joy and fun.

From the village westopped at one of theirlakes in the city to takesome pictures beforereturning to the hotel.

All great thingsmust come to an end.The closing ceremonytook place in theevening. During theceremony, everycountry performedtheir country song andour Malaysian dele-gates, led by Sdri.Trudy and Sdri. KeeWai Fun, did a remixversion of “RasaSayang” to entertainthe crowd.

20 December 2004 (Monday)It was the last day and time to say “TATA” (goodbye in Burmese) toMyanmar, a country and the peoplethat we would never forget.

The golden land of Myanmar hasbrought us new friends. The hospitalityshown especially by the YoungEngineers of Myanmar EngineeringSociety has definitely sparkled andthey deserved full credit for theirorganization of YEAFEO. Till we meetagain in next YEAFEO meeting in

Vientienne, Laos, in December 2005.

Chey Su Ti Bar Ti……Young Engineersof Myanmar Engineering Society

(Thank you YE of MyanmarEngineering Society)

We would like to express ourgratitude and appreciation toIEM for giving the opportunityto G&S members to participatein the event. This in turn hasgiven the G&S membersinvaluable experience andexposure at the internationalstage.

More information and photos ofthe event could be obtained bysurfing to our G&S website andthe YEAFEO official website atwww.yeafeo.org

To G&S members who areinterested to participate and to bepart of the upcoming YEAFEOdelegation, feel free to drop us ane-mail at [email protected]

Hanging out with YEAFEO delegates