Manufacturers: Implementation of Minimum Wage … 290414 web.pdfenabled Barkath Co-Ro to transform itself from ... SMIs was won by Barkath Co-Ro Manufacturing Sdn Bhd while The Rising

New Online System for the Submission and Payment of Sales and Service Tax

FMM Kedah/Perlis signs Memorandum of Understanding with AIMST University

Updates on Industrial Designs (Amendment) Act 2012

Manufacturers: Implementation of Minimum Wage Policy was Unsatisfactory

PUBLISHED BYFederation of Malaysian ManufacturersWisma FMMNo 3, Persiaran Dagang PJU 9Bandar Sri Damansara52200 Kuala LumpurTel: 03-62867200Fax: 03-62741266/7288Email: [email protected]: www.fmm.org.my

FMM has eight branches andtwo representative offices located inKedah, Penang, Perak, Selangor,Negeri Sembilan, Malacca, Johor,Eastern, Sabah and Sarawak.

Any material extracted fromBusiness in Action @ FMM to bequoted or reprinted should containan acknowledgement to FMM or itsacknowledged sources.

Editorial

ADVISORDr Yeoh Oon TeanChief Executive Officer

EDITORIAL TEAMMadeline LohGeneral Manager (Trade)

Ng Lee LeeSenior ManagerInternational Business Division

Florance S GabrielAssistant ManagerCommunications and Publications Unit

ADVERTISEMENTS

Kenny LeeMarketing Unit (+6012-383 3857)

PRINTED BYAttitude Communications Sdn BhdC3-5-3, Solaris Dutamas, Jalan Dutamas 1, 50480 Kuala Lumpur

FEDERATION OFMALAYSIANMANUFACTURERS

© Copyright Reserved

Contents

BIA@FMM I Mar _ Apr 201402

14 Updates on Industrial Designs (Amendment) Act 2012

Trade Policy

16 New Online System for the Submission and Payment of Sales and Service Tax

FMM in the News

19 FMM Selangor Branch Supports the Quick Resolution of the Water Shortage Crisis in Selangor

Impact of Increase in Toll Rates on the Manufacturing Sector

Branch Events

20 Perak Selangor

23 Pahang

24 Kedah/Perlis

27 Johor Negeri Sembilan

29 Penang Sabah

30 Sarawak Malacca

Cover Story

03 Manufacturers: Implementation of Minimum Wage Policy was Unsatisfactory

Special Feature

04 Winners of the Manufacturer of the Year Award (SMIs) & The Rising Star of the Year Award 2013

News Highlights

06 Potential Sales of RM2.6 million Recorded at Foodex Saudi

07 Visit to Spirit AeroSystems Malaysia Sdn Bhd

10th Automotive Aftermarket Industry and Tuning Trade Fair

08 Tan Sri Datuk Yong Poh Kon elected Council Member of ICC World Chambers Federation

Upcoming Trade Fairs

10 Events In Pictures

Updates

13 Abolishment of Free on Board Price in the ASEAN Trade in Goods Agreement

Manufacturers: Implementation of Minimum Wage Policy was Unsatisfactory

The introduction of minimum wage is not a simple procedure. It requires companies to review, adjust, renegotiate and restructure the entire wage structure because of knock-on effects on those already earning at and above the minimum wage level. In addition, remuneration to employees is paid in many forms and the definition of what constitutes wages must be clear and fair to avoid confusion, unhappiness and increased costs. Insufficient notice and time were given to employers for this major change. The announcement of implementation of minimum wage policy by January 1, 2013 was made on April 30, 2012, the Order was gazetted on July 16, 2012 and the Guidelines, which detail what must be done, was released on September 7, 2012. Effectively, employers had only 4 months for implementation. To compound the problem, there remained unresolved issues in the Guidelines, particularly on the types of allowances which could be included in the new minimum wage. Unacceptable deadlines were set for companies to comply. For example, companies could appeal for deferment of implementation of the policy but had to submit their applications by October 2, 2012, which was less than one month from the release of the Guidelines. Industry associations protested against the tight deadline and the Ministry called a meeting on November 5, 2012 and agreed to extend the deadline to November 7, 2012, two days after the meeting. Results of the applications were only published on the Ministry of Human Resources’ website on a Friday afternoon, December 28, 2012, three days away from the implementation date of January 1, 2013. Significant uncertainties and labour issues were created due to lack of clarity on definition of wages and allowances. This resulted in the authorities back-tracking after substantial lobbying and protests by employers e.g. announcement of deduction of levy to be borne by foreign workers on January 30, 2013 with immediate effect, and the deduction of accommodation costs for

foreign workers on February 20, 2013, but only with permission from the Labour Department. The application procedure was made very complicated. After intense lobbying by employers, blanket approval was given for these deductions on March 19, 2013 which was already three months after the implementation date. Whilst there has been a series of consultation with stakeholders, they were carried out after the announcement of the policy was made and there has been reluctance by the authorities to accept some of the recommendations made by FMM and other chambers [employer associations] which would have made the implementation smoother, more efficient and minimised any hardship for employers. For example, FMM had recommended that at least 12 months be given to companies for implementation, minimum wage be defined as basic wages and all fixed cash payments and allowances be defined as wages under Section 2 of the Employment Act and to set minimum wage for different zones in the Peninsula to take into account the different cost of living in the various zones. Unfortunately none of these recommendations was taken into account. Consultation would be more effective if done during the crafting of the policy. In this respect, FMM has been actively lobbying for a more representative participation in the National Joint Labour Advisory Council as well as the National Wages Consultative Council, currently represented only by one association representing employers, which surely cannot be expected to be able to truly represent the country’s diverse economy. Going forward, employers are deeply concerned that even before their operations could stabilise following the full implementation of the minimum wage and minimum retirement age, there have been additional increases in the cost of doing business such as in energy, assessment rates, logistic costs, etc. Employers will have to overcome these tough challenges by becoming more efficient and productive. It would help if Government procedures are simple and easy, and Government policies are efficiently implemented.

FMM recently responded to an article on “Malaysia Implements Minimum Wages” by the Secretary General of the Ministry of Human Resources on The Star Online on January 9, 2014. FMM congratulated the Government for introducing this policy and while it supported the implementation of this policy, in retrospect, the implementation could have been better planned and more efficient. FMM would like to share the difficulties encountered by its members as lessons learnt with the hope for improvement in future implementation of Government policies. Throughout the implementation, our members faced considerable uncertainties and unacceptable deadlines. Authorities were reluctant to consider practical and fair recommendations by employers and only relented after intense lobbying and protests.

The above was released to the press on January 13, 2014.

03 Mar _ Apr 2014 I BIA@FMM

Cover Story

Special Feature


Winners of the Manufacturer of the Year Award (SMIs) & The Rising Star of the Year Award 2013

Barkath Co-Ro Manufacturing Sdn Bhd is the producer of Sunquick, Malaysia’s top brand in concentrated fruit juice drink. The Company is a joint venture between Kumpulan Barkath and Co-Ro Food of Denmark. The strong partnership has enabled Barkath Co-Ro to transform itself from a labour-intensive operation into a modern, fully automated SMI with the largest manufacturing plant among the 18 Sunquick factories globally, even ahead of the headquarter plant in Copenhagen, Denmark. The low fixed operating cost which is even lower than China has enabled Barkath Co-Ro to capture the Asean market. In Malaysia, Barkath Co-Ro has more than 40% market share in the concentrated fruit juice category.

uring FMM’s Annual Dinner which was held on November 28, 2013, the Excellence Award 2013 winners were announced. The Manufacturer of the Year Award 2013 - SMIs was won by Barkath Co-Ro Manufacturing Sdn Bhd while The Rising Star of the Year Award 2013 was awarded to Steel Recon Industries Sdn Bhd.

Barkath Co-Ro Manufacturing Malaysia Sdn Bhd staff after winning the award

Dato’ Seri Barkath Ali Bin Abu Backer of Barkath Co-Ro Manufacturing Sdn Bhd (right) receiving the trophy from Senator Dato’ Seri Abdul Wahid

bin Omar while FMM President Dato’ Saw Choo Boon looks on

Special Feature


Steel Recon Industries Sdn Bhd staff after winning the award

Steel Recon Industries Sdn Bhd on the other hand was established in 1974 and is a 100% Malaysian owned manufacturer of fire fighting equipment. The Company continually innovates through R&D and spends 2% to 3% of its average annual sales on R&D for product development and new fire fighting technologies and skills. Its innovations include being the first company to launch home and car safety kits and its latest ‘Inertec fire suppression system’ is internationally certified to protect lives, properties and the environment. Steel Recon achieved all these while striving to make fire-fighting equipment affordable.

In 2013, this new product contributed over 12% to total sales, an increase of 4% from 2012. Steel Recon Industries has markets in over 70 countries worldwide, supplying to Hong Kong, Disneyland, Sydney Olympics Stadium, Daimler Chrysler Centre in Germany and Sands Casino Macau.

The awards were presented to Barkath Co-Ro Manufacturing Sdn Bhd and Steel Recon Industries Sdn Bhd by the Minister in the Prime Minister’s Department, Senator Dato’ Seri Abdul Wahid bin Omar.

Wee Chew Kiat from Steel Recon Industries Sdn Bhd (right) receiving the trophy from Senator Dato’ Seri Abdul Wahid bin Omar. Far left is

FMM President Dato’ Saw Choo Boon

Khairul Annuar, (centre, left) Trade Commissioner and Mohammed Haris (centre, right), Deputy Trade Commissioner of MATRADE briefing the Malaysian exhibitors

News Highlights


Potential Sales of RM2.6 million Recorded at Foodex Saudi

Global and local food and drink specialist companies usually take part in this Event to discover new products, meet key contacts, and more importantly, get orders. The exhibition includes sectors such as grocery, wholesalers, food service providers and manufacturers. There is representation from the biggest multi-nationals to the smallest and most specialist niche companies. Foodex Saudi is the ideal forum to launch new products and build brands. It also provides a fantastic visitor experience with demonstrations, seminars and appearances from celebrity chefs.

FMM coordinated the participation of ten companies for the first time in Foodex Saudi 2013 in Jeddah held from December 8-11, 2013.

The exhibition attracted over 130 exhibitors from 27 countries. A total of 10,200 visitors including 50 invited hosted buyers from Saudi Arabia visited the exhibition. More than 90% of the visitors were from the Saudi Arabia including Jeddah, Riyadh, Dammam and the economic cities. Exhibitors are expected to receive a total of RM2.6 million sales from the exhibition. Over 120 serious enquiries were received during the exhibition.

oodex Saudi, organised under the patronage of the Saudi Arabian Ministry of Agriculture, is the largest food and beverage exhibition in Saudi Arabia. This Event has become the benchmark, raising the bar for food and beverage exhibitions in Jeddah.

Chow Kien Yu, Business Development Manager (left) of Intraco Plastics (M) Sdn Bhd briefing a potential customer on plastic pallets

One of the Malaysian exhibitors at the exhibition showcasing Malaysian products.

News Highlights


Visit to Spirit AeroSystems Malaysia Sdn Bhd

10th Automotive Aftermarket Industry & Tuning Trade Fair

In operation since 2008, the Spirit AeroSystems Malaysia facility covers 307,000 sq ft producing sub-assemblies of composite and metallic wing components for Airbus A320 and Boeing 777. In October 2012, Spirit AeroSystems Malaysia started producing the A350XWB Root End Fixed Fairing Assembly and J-Panel Assembly, as well as the complete assembly of the Boeing 787 Fixed Leading Edge. Spirit AeroSystems Malaysia In-House Design Team provides engineering design support to the Spirit Group. The Design Team is the first in Southeast Asia to receive the Airbus AP1020 Design/Stress/Weight and Material Review Board Approval to sign off wing components designed and manufactured locally with conformity to airworthiness.

FMM delegation toured the plant and viewed the assembly of the wing components of Airbus and Boeing.

total of 22 FMM members visited Spirit AeroSystems Malaysia Sdn Bhd on December 22, 2013. Winner of FMM Excellence Award 2012 - Rising Star of the Year, Spirit AeroSystems Malaysia Sdn Bhd is a subsidiary of Spirit AeroSystems Inc, Wichita USA, the largest independent airframe supplier in the world and one of the largest Tier–1 suppliers to Boeing and Airbus.

FMM delegation being briefed during the plant tour.

he 10th Automotive Aftermarket Industry and Tuning Trade Fair, Guangzhou Edition was recently held from February 17-19, 2014 at the Pazhou Complex, Guangzhou, Guangdong Province, China. FMM, being one of the co-organisers accompanied its members to the Trade Fair.

The two-and-half day Fair housed approximately 3,000 exhibitors showcasing the products and services comprised Auto-multimedia, Auto-electronics, Auto-audio & visuals, Auto-lighting, Interior Accessories, Auto care & Beauty, Anti Blast Film, Auto Repair & Maintenance, Auto parts and Exterior Decoration & Modification. The Fair attracted over 200,000 professional trade visitors. The highlight of the Fair was a visit to the renowned Auto Parts City where delegates had the opportunity to network with merchants in the automotive and automotive-related industries.

News Highlights


Tan Sri Datuk Yong Poh Kon elected Council Member of ICC World Chambers Federation

ICC WCF is a non-political, non-governmental body and is the backbone of the chamber community, uniting the global network of 12,000 chambers and their business communities.

FMM has been acknowledged as an important stakeholder in ICC WCF global chamber membership. FMM had the opportunity of working closely with ICC WCF when hosting the ICC WCF 6th World Chambers Congress held in Kuala Lumpur back in 2009.

Tan Sri Datuk Yong Poh Kon, FMM Immediate Past President & Vice-Chairman of ICC Malaysia has been elected to the ICC World Chambers Federation (WCF) General Council for a three-year term beginning January 1, 2014. The Council comprises 50 members with representation from transnational, national, regional, local, public and private law chambers.

WCF is a unique and truly a global forum that not only helps individual chambers to become more productive, but also strengthens links among them. From managing the ATA Carnet system, which allows for the duty-free and tax-free temporary import of goods, to the World Chambers Network Chamber Directory, WCF offers a wide range of products and services to help chambers deliver the best possible service to their respective members.

Upcoming Trade Fairs Trade Fairs Date Location

1 Subcon Thailand May 15 -17, 2014 Bangkok, Thailand

2 Propak Asia June 11 - 14, 2014 Bangkok, Thailand

3 Beauty Eurasia June 12 - 14, 2014 Istanbul, Turkey

4 Manufacturing Expo June 19 - 22, 2014 Bangkok, Thailand

5 Phil Beauty June 18 - 20, 2014 Manila, Philippines

6 Fine Food New Zealand June 22 - 24, 2014 Auckland, New Zealand

7 Africa’s Big Seven June 22 - 24, 2014 Johannesburg, South Africa

8 SAITEX June 22 - 24, 2014 Johannesburg, South Africa

9 Food Taipei June 25 - 28, 2014 Taipei, Taiwan

10 Pharmex Asia Sept 1 - 3, 2014 Bangkok, Thailand

11 Indonesia Maritime Expo Sept 5 - 7, 2014 Jakarta, Indonesia

12 Food & Hospitality Oman Sept 9 - 11, 2014 Muscat, Oman

13 Franchise & License Expo Sept 12-14, 2014 Jakarta, Indonesia

14 InterCharm Ukraine Sept 17-19, 2014 Kiv, Ukraine

15 COSME Tokyo Oct 20 - 22, 2014 Tokyo, Japan

16 Intralogistic Oct 29 - 31, 2014 Jakarta, Indonesia

17 Interfood Nov 12 - 15, 2014 Jakarta, Indonesia

18 Food Week Korea Nov 12 - 15, 2014 Seoul, South Korea

19 Foodex Saudi Nov 17 - 20, 2014 Jeddah, Saudi Arabia

20 Saudi Health and Beauty Nov 24 - 27, 2014 Jeddah, Saudi Arabia

21 Motorshow Oman Dec 2 - 5, 2014 Muscat, Oman

For more information, please call Clarissa or Wee Leng from the FMM Secretariat at 03-6286 7200 or email [email protected] / [email protected]

Events in Pictures


2nd Joint Meeting of the MSBC Tourism & Hospitality Committee, Johor Bharu, January 8, 2014

Seminar on Personal Data Protection Act 2010:

Practical Steps to Compliance, February 19, 2014

Automotive Aftermarket Industry & Tuning Trade Fair, Guangzhou, February 17-19, 2014 Meeting with MATRADE, February 25, 2014

Foodex, Saudi Arabia, December 8-11, 2013

Events in Pictures


Women in Business’ Dialogue Session with Datuk Seri Shahrizat Abdul Jalil, February 10, 2014

ICC Mediation Rules 2014 Launch Seminar - Best Practices In International

Commercial Mediation, March 18, 2014Selangor Branch’s Briefing on Preferential

Certificate of Origin, January 9, 2014

Negeri Sembilan Branch’s visit to Akzo Nobel Paints (M) Sdn Bhd,

December 18, 2013

Kedah/Perlis Branch’s signing of Memorandum of Understanding between FMM and AIMST

University, December 10, 2013

Updates


Abolishment of Free on Board Price in the ASEAN Trade in Goods Agreement here have been frequent requests from the private sector for the removal of Free on Board (FOB) Price to be stated in the Preferential Certificate of Origin (CO) under the various free trade agreements. The ASEAN Economic Ministers have agreed to remove the requirement to state the FOB price in the Certificate of Origin (CO) under the ASEAN Trade in Goods Agreement (ATIGA). The Ministers and their counterpart in the Republic of Korea have also agreed to remove the requirement to state the FOB price in the ASEAN-Korea Free Trade Agreement (AKFTA).

The Federal Government Gazette for the amendments related to ATIGA and AKFTA have been gazetted on December 30, 2013 for implementation on January 1, 2014.

The gazettes are as follows:

i) P.U.(A) 380/2013: Customs Duties (Goods of ASEAN Countries origin) (ASEAN Harmonised tariff Nomenclature and ASEAN Trade in Goods Agreement) (Amendment) Order 2013; and

ii) P.U.(A) 381/2013: Customs Duties (Goods under the Framework Agreement on Comprehensive Economic Co- operation among the Government of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea (Amendment) Order 2013.

A. Abolishment of the FOB Price in the ATIGA CO Form D

The 27th ASEAN Free Trade Area (AFTA Council) Meeting on August 19, 2013 endorsed the recommendation to implement the removal of the FOB price in the ATIGA CO Form D in case where Wholly Obtained (WO), Change in Tariff Classification (CTC) or Process Rule is applied by adding a new Rule 25 in the Operational Certification Procedures (OCP) under ATIGA and amending box 9 of the CO Form D.

The implementation date of the FOB value removal from the CO Form ATIGA in cases where WO, CTC or Process Rule was January 1, 2014. This applies for all ASEAN countries except Cambodia and Myanmar. A transitional period of six months from the implementation date until June 30, 2014 is allowed for the use of the existing CO Form ATIGA or Form D. Since the CO Form ATIGA or Form D is valid for one year from the date of issuance, an old CO Form D issued on or before 30 June 2014 will be accepted by ASEAN Member States.

The 27th AFTA Council Meeting also agreed to allow a 2-year flexibility period for Cambodia and Myanmar, that is, until March 31, 2016. During the 2-year flexibility period given to Cambodia and Myanmar, the FOB value will have to be reflected in the CO Form D issued to and from the two countries for all cases where WO, CTC, Process rule and RVC is applied.

B. Abolishment of the FOB Price in the CO Form AK

The 8th Meeting of the ASEAN-Korea FTA (AKFTA) Implementing Committee (AKFTA-IC) held in Seoul, Korea on June 25-27, 2013 endorsed the amendment of the AKFTA Operational Certification Procedure (OCP) by amending Rules 5, 6, 7 and 10 of the OCP and box 9 of the AKFTA CO Form AK. These amendments will enter into force effective January 1, 2014. The CO Form AK shall reflect the FOB value in box 9 only when the RVC is applied. In case of multiple items declaration an additional Form can be used to the CO Form AK.

The 8th AKFTA-IC also agreed to allow a transition period of 6 months from the date of the entry into force of the amendment specifically with regards to accepting the old version of AK Form. With respect to Cambodia and Myanmar, the CO Form AK issued to and from them shall reflect the FOB value regardless of the origin criteria for the transition period of two years from the date of entry-into-force of the amendment.

Malaysian manufacturers and exporters are requested to take note of the changes and to follow the new requirements in the submission of Form D and Form AK to Ministry of International Trade and Industry, HQ or its branch offices for endorsement.

Source: Ministry of International Trade and Industry’s Website


Updates on Industrial Designs (Amendment) Act 2012 he following are the pertinent amendments to the Industrial Designs (Amendment) Act, amending the existing Industrial Designs Act 1996 (IDA), which came into effect on July 1, 2013.

(a) The Novelty Requirement

•TheIDAdictatesthatifbeforethefilingorpriority date of the design that is being applied for registration, it or an industrial design differing from it only in immaterial details or in features commonly used in the relevant trade was disclosed to the public anywhere in Malaysia, then the said design would not be considered new and would consequently be ineligible for registration.

•TheAmendmentActnowrequiresthatbeforethe filing or priority date of the design that is being applied for registration, it or an industrial design differing from it only in immaterial details or in features commonly used in the relevant trade was not disclosed to the public anywhere in Malaysia or elsewhere.

(b) Period of Registration

•TheexistingSection25IDAstatesthatthe registration of an industrial design shall be deemed to have come into force on the filing date of the industrial design application and shall subsist for an initial five years and thereafter this period may be extended for two further terms provided renewal fees are made to extend such periods of registration accordingly.

•UndertheAmendmentAct,theapplicantwould now have the option of extending the period of registration up till a maximum of four terms which in other words would enable a design to be in force for 25 years.

•Althoughtheseamendmentswouldhaveno retrospective effect, the proposed savings provisions go on to state that save for the designs registered under Section 49 IDA an industrial design that has been registered under the existing IDA would also qualify and benefit from the enlargement of the period of protection and an application may be made under Section 25 IDA to have the period of registration extended up till a maximum of 25 years if so desired. [Designs registered under Section 49 IDA are briefly those designs which were registered in the United Kingdom prior to the coming into force of the IDA on September 1, 1999.

(c) Amendment to Part V IDA

•Section9oftheAmendmentActstatesthata registered industrial design may be the subject of a security interest in the same way as other personal or moveable property. The Amendment Act includes a new paragraph to Section 35 Part V IDA which provides that the Court shall refuse to award costs to an owner who acquired the title to the registered industrial design by way of assignment or transmission or by operation of law or by a security interest transaction in an infringement if a recordal of the same is not made unless it can be shown that an application to record such interest was made before the end of the period of six months beginning from the date of the relevant transaction or the Court is satisfied that it was not practicable for the said application to have been made before the end of that period or that an application was made as soon as practicable thereafter.

Updates

Source: Skrine & Co.

Trade Policy


New Online System for the Submission and Payment of Sales and Service Tax he Customs Department recently launched an online system called the CJP Online System on February 25, 2014. The CJP Online System can be utilised by all sales and service tax licensees for the submission of returns (Form CJP1) and payment of sales and service tax.

How to access and start using the CJP Online System:

• NewusersarerequiredtoregisterattheirCustoms office where the sales and service tax license is issued. The documents needed for the registration are a Company Authorisation Letter, Certificate Of Incorporation Of Private Company (Form 9) and the CJP Online ID Request Form (Lampiran A) which can be downloaded from the website.

• AuserIDwillbegiventotheauthorisedperson.The authorised person will be appointed as the administrator and can create additional user ID for up to five (5) personnel.

• Gotohttps://cjponline.customs.gov.myandlogin with the given user ID and password. The system can be accessed through Internet Explorer Version 8.0 and above.

• Userscanproceedtosubmitreturns(FormCJP1)and make electronic payment via Financial Process Exchange (FPX) participating banks of up to RM30,000 for individual banking and RM 1 million for corporate banking. The submission of returns and payment of sales and service tax via the CJP Online system is not mandatory. Sales and service tax licensees can still submit returns and make payment manually.

To download the CJP Online System user manual please log on to: https://cjponline.customs.gov.my/CJPSystem/infopage/Manual%20for%20Public%20Users.pdf.

For enquiries, please contact Maygelah Siva of the FMM Secretariat (Tel: 03-62867320 or Fax: 03-62741266/7288 or E-mail: [email protected]).

PHARMEX Asia 2014 is set to be the first Southeast Asia’s largest ever international trade exhibition to serve Asia’s pharmaceutical, medical equipment and healthcare industries. The exhibition will be held from September 1 - 3, 2014 at Bangkok International Trade & Exhibition Centre (BITEC), Thailand. The co-located World Pharmaceutical Congress, the annual meeting of the International Pharmaceutical Federation (FIP), is expected to attract up to 3,000 international delegates, plus an additional 7,000 trade visitors. The FIP is an organization founded in 1912 in The Hague with a globally rotating congress and supporting exhibition. Also participating in this exhibition includes GSK, DKSH, Pfizer, Roche, Zuellig Pharma, Biolab and Microsoft. Do not miss this golden opportunity to be part of inaugural PHARMEX Asia 2014, call us at 03-6286 7307 or email to [email protected] for more information.

FMM in the News


FMM Selangor Branch Supports the Quick Resolution of the Water Shortage Crisis in Selangor

he Federation of Malaysian Manufacturers (FMM) Selangor Branch wishes to express its utmost concern over the protracted resolution of the water restructuring deal to resolve the water crisis faced by the industries in Selangor. FMM Selangor Branch has confidence in the ability of Tan Sri Abdul Khalid, Selangor Menteri Besar to resolve the issue in a professional manner. FMM Selangor Branch lauds the Memorandum of Understanding (MoU) signed between the Federal and State Governments which provided some assurance to Selangor State water users that the water shortage crisis would be resolved in an amicable manner.

The manufacturing sector continues to be an important part of the Malaysian economy contributing a 25% share of Malaysian GDP. In 2013, total exports amounted to RM719.81 billion, of which 67% or RM482.98 billion is manufactured goods. Selangor as the most industrialised State contributes about 25% to the said GDP from all its economic activities. The State’s manufacturing sector is expected to expand at 5.5% in 2013 and 5.1% in 2014. The current water rationing exercise and unscheduled water interruptions have already adversely affected the manufacturing sector in production loss and customer & investor confidence.

An uninterrupted water supply is prerequisite for the industries to operate. FMM Selangor Branch has repeatedly urged all parties involved to resolve the matter in a quick and amicable manner given its contribution to the economy of the State. FMM Selangor Branch urges the State Government to be transparent in implementation of the MoU and preliminary agreement with the Federal Government. In addition, FMM Selangor Branch would like the State Government to maintain the water tariffs for 3-5 years in view of the current challenging business environment. While waiting for the expected completion of Langat 2 Project in three years, the State should provide clear guidelines on the use of alternative water supply through the Hybrid Off River Augmentation System or extraction of groundwater.

FMM Selangor Branch would like to reiterate that any further delay to the resolution of the water restructuring agreement would translate into prolonged water rationing and unscheduled water interruptions resulting in difficulty for the Rakyat, industries and the economy. Thus, there should not be any further delay in the State Government’s negotiations to conclude the agreement and that the Selangor Menteri Besar and his state executive councillors be allowed to undertake this task professionally.

FMM Press Release: March 7, 2014

Impact of Increase in Toll Rates on the Manufacturing Sector

The Federation of Malaysian Manufacturers conducted a quick survey among its members to gather feedback on the proposed increase in toll rates by the toll concessionaires in Klang Valley.

Possible New Toll Rates

The estimated increase in transportation cost submitted by respondents is summarised as below:

In conclusion, FMM would like to highlight that the hike in toll rates would result in an increase in the prices of goods and raw materials, and subsequently increase the operating cost of manufacturers. This increase in operating cost would eventually be passed down to consumers. Given the recent increase in electricity rates, the proposed toll hikes would definitely put pressure on inflation and FMM foresees that these increases would dampen domestic consumption and affect export competitiveness.

FMM strongly urges the toll concessionaires to review their decision to increase the toll rates and the Government to intervene to prevent any further increase in the cost of doing business in Malaysia.

Respondents Percentage of increase in transportation cost

46% 2% to 10%

18% 11% to 20%

15% 25% to 30%

Highway RM Old New

Besraya Highway 1.30 2.00

New Pantai Expressway (NPE) 1.60 2.00

Damansara/Puchong Highway (LDP) 1.60 2.10

Ampang Elevated Highway (Akleh) 1.50 2.50

Kajang Highway (Silk) 1.00 1.30

Kl-Putrajaya Highway (MEX) 2.50 3.50

Kajang-Senawang Highway (Lekas) 1.90 2.30

Sprint Highway 1.50 2.50

Kerinchi Link 1.50 2.50

Damansara Highway 1.00 1.50

Penchala Link 2.00 3.00

SKVE Expressway 14.96c/km 16.46c/km

Guthrie Corridor Expressway (GCE) 1.40 1.90

Smart Highway 2.00 3.00

Source: Malaysiakini

FMM Press Release: January 23, 2014


Perak

Selangor

The Branch organised the following activities:

• SeminarontheNewOSHClassification,Labelling& Safety Data Sheet of Hazardous Chemicals CLASS Regulations 2013 on December 4, 2013. The Seminar was facilitated by senior officers from the Chemical Management Division of the Jabatan Keselamatan dan Kesihatan Perkerjaan, Putrajaya and Perak. A total of 124 participants from 66 companies attended the Seminar.

• BriefingonEssential2014TaxGuide:Preparingfor Change on December 6, 2013. It was conducted by Yong Mei Sim, Senior Assistant Director of Inland Revenue Board. A total of 85 participants from 51 companies attended the Seminar.


• Hi-teasessionwithMenteriBesarofSelangor,YAB Tan Sri Dato’ Seri Abdul Khalid bin Ibrahim on December 2, 2013. Among those who attended the hi-tea were the Selangor State Executive Councillor for Investment, Industry and Trade YB Ean Yong Hian Wah, FMM President Dato’ Saw Choo Boon and Branch Committee Chairman Dato’ Soh Thian Lai together with representatives from 84 member companies.

• VisittoMonashUniversityMalaysiaonDecember 9, 2013 to discuss potential areas of collaboration between the University and the manufacturing industry.

Participants who attended the New OSH Classification, Labelling & Safety Data Sheet of Hazardous Chemicals CLASS

Regulations 2013 Seminar

The Branch Committee Chairman Dato’ Gan Tack Kong (left) presenting a token of appreciation to Jayasiri Jayasena.

FMM President Dato’ Saw Choo Boon, (left) presenting a token of appreciation to YAB Tan Sri Dato’ Seri Abdul Khalid bin Ibrahim,

Selangor Menteri Besar during the Hi-Tea. Looking on is Branch Committee Chairman Dato’ Soh Thian Lai

(continued on page 23)

• BriefingbyJayasiriJayasena,SeniorDirectorof Strategy and Monitoring, Ministry of International Trade and Industry on the Trans Pacific Partnership Agreement and Its Impact on Manufacturers. The Briefing, held on December 17, 2013 was attended by 26 participants from 21 companies.

Branch Events

Dato’ Soh Thian Lai, Branch Committee Chairman (5th from left) receiving a token of appreciation from Professor Mahendhiran Nair (5th from right), Deputy President (Strategy) and Head of the School of Business, Monash University Malaysia

Assistance to Members


• CommutingAccidentsPreventionSeminar2013on December 9, 2013 towards improving the management of commuting safety and reduce commuting accidents. It was jointly organised with PERKESO, Monash University Malaysia. Dato’ Nathan Suppiah, Branch Vice-Chairman was invited to present a paper on Business Impacts of Commuting Accidents.

• Half-daybriefingonPreferentialCertificatesofOrigin on January 9, 2014. It was jointly organised with the MITI. The Briefing was attended by 54 participants from 27 companies.

(continued from page 20)

• WorkshoponIndustrialSecurityManagement on December 18, 2013 conducted by Major (R) Subramaniam Kumaravehlu a retired military officer. The Workshop was held to create awareness on the key elements of industrial security management and conduct snapshots evaluation of the system.

• 1stMeetingofSecurityManagementWorkingSub- Committee on January 8, 2014. The meeting was chaired by Dato’ Ir Hj Ahmad bin Hasan, Chairman of FMM Selangor Security Management Working Sub-Committee.

Pahang


• SeminaronEPF:e-Contribution&Typeof Withdrawals on February 13, 2014. This Seminar was conducted in collaboration with the Kumpulan Wang Simpanan Pekerja Pahang Branch.

• HumanResourceWorkshoponUnderstandingand Handling Misconduct and Discipline on February 25, 2014. Heng Poh Suan, Human Resource & Industrial Relations Advisor of FMM facilitated the Workshop.

Participants who attended the Seminar on EPF: e-Contribution & Type of Withdrawals


Kedah / Perlis


• FMMKedah/PerlisCEOLuncheonTalk:ABusiness Talk with YAB Dato’ Seri Hj. Mukhriz Tun Mahathir, Menteri Besar of Kedah on December 10, 2013. This event was attended by 120 participants including industry leaders and key government agencies. The event also saw the MOU signing between The Branch and The AIMST University on training collaboration.

• WorkshoponImport&ExportRequirements-Correct, Quality Declaration and Mandatory Compliance on December 17, 2013. The Workshop, attended by 18 participants was organised to update employers on import-export declaration procedures.

• FactoryvisitationtoGreenOrangeSdnBhdon December 17, 2013. Kedah State Industry Exco Dato’ Dr Ku Abdul Rahman Ku Ismail paid a courtesy visit to the member company to discuss the Company’s expansion plan to bring in investments from China.

• GotongRoyongEventatSungaiPetaniIndustrialArea on December 30, 2013 organised in collaboration with Avantis Technologies Sdn Bhd. A total of 70 employees from neighbouring factories, Sungai Petani Local Council, Perbadanan Pengurusan Sisa Pepejal dan Pelupusan Awam and Environment Idaman participated in the Event.

• BranchSub-CommitteemeetingwithLocalCouncils, Federal Agencies and Utility Companies on January 15, 2014 to discuss infrastructure and utilities problems affecting members.

Group photo of the participants who attended the Workshop on Import & Export Requirements – Correct, Quality Declaration and

Mandatory Compliance

Gotong Royong session in progress at the Sungai PetaniIndustrial Area

FMM congratulates the Branch Committee Chairman, Dato’ Dr Haminnuddin Abd Hamid on being conferred the award Darjah Kebesaran Setia DiRaja Kedah (D.S.D.K), by DYMM Tuanku Sultan Abdul Halim Mu’adzam Shah, Sultan of Kedah on January 19, 2013.

Congratulations

Branch Events

A group photo of the participants who attended the Seminar on Compliance Towards Food Regulatory in Malaysia


Johor


• MeetingontheestablishmentofJohorInvestment Committee on December 2, 2013 which was chaired by the Menteri Besar of Johor, YAB Dato’ Khaled Nordin. Among the topics discussed included appointment of government agencies e.g. MIDA and MITI to the pre-investment committee, current water tariff rates and infrastructure problems affecting members in the State.

• PasirGudangIndustrialParkManagementCommittee Meeting on December 10, 2013 which was chaired by Tuan Haji Onn bin Jabar @ Jaafar, Yang Di Pertua, Pasir Gudang Municipal Council.

Negeri Sembilan


• SeminaronComplianceTowardsFoodRegulatory in Malaysia on November 19, 2013 which attracted 19 participants. The Seminar was organised to provide guidance to companies on compliance with the Malaysian Food Legislation.

• SeminaronEnergyAuditBestPracticesand Recommendations for Industry in Line with Electrical

Branch Events

• JohorBahruIndustrialDevelopmentSecretariat Meeting on December 17, 2013 chaired by Tuan Haji Ismail bin Abdul Rahman, Secretary from Majlis Bandaraya Johor Bahru. The meeting discussed problems related to illegal traders and the need to improve road conditions.

• KulaiIndustrialParkManagementCommitteeMeeting on December 30, 2013 chaired by Tuan Hj. Md Rofiki bin Dato’ Hj A. Shamsudin, Yang Di Pertua of Majlis Perbandaran Kulai.

Energy Regulations 2008 on November 20, 2013. It was attended by 15 participants.

• VisittoAkzoNobelPaints(M)SdnBhdonDecember 18, 2013 to learn the company’s best practices on safety and environmental sustainability. Over 11 companies participated in the visit.


Penang


• BusinessNetworkingSessiononNovember12, 2013. Mohd Iqbal Mohd Noor, director of MITI Penang shared with the participants the ASEAN Economic Community 2015 and issues related to rules of origin.

• SeminaronDutyExemption,Drawback&Refundon November 14, 2013. Representatives from the Malaysian Investment Development Authority presented papers on application procedures and requirements as well as on-line submission for duty exemption on machinery, equipment, raw materials and components. A senior official from the Royal Malaysian Customs Department presented a paper on the duty refund and duty drawback facility.

• BriefingonTNBSpecialIndustrialTariffonNovember 20, 2013. Jude Ignatius Lazaroo from Special Industrial Tariff, Customer Service Department, Distribution Division, TNB, briefed the participants on the eligibility, criterions and procedures to apply for the TNB Special Industrial Tariff.

The Branch with the help from MITI assisted a member company, Malayan Metal Works Sdn Bhd which was imposed with an anti-dumping duty of 25% when it imported tinplates from GS Global, a trading agent of a mill, TCC Steel from Korea. With the assistance from MITI office in Penang and Kuala Lumpur, the member company paid only 4.46% anti-dumping duty instead of initial 25% charged earlier.

Jude Ignatius Lazaroo presenting his paper during the TNB Special Industrial Tariff briefing

Branch Events

Sabah

The Representative Office organised visits to Sepangar Chemical Industry Sdn Bhd, Steel Industries (S) Sdn Bhd and Sabah International Dairies Sdn Bhd on February 27, 2014. Representatives from the United Nations Industrial Development Organisation and EnMS USA also participated in the visits to the factories.

Bill Meffert (left) and Kaveta Chelliah (right) being briefed by Wallter Joe Peter, Electrical Engineer of Steel Industries (S) Sdn Bhd

during the factory visit


Sarawak

Malacca

The Representative Office organised the Occupational Emergency First Aid Skills and CPR workshop from December 19 to 20, 2013 at Nestle Manufacturing (M) Sdn Bhd Kuching, Sarawak. A total of 20 participants attended the workshop. First Aid Certificates and Competency Cards were awarded to participants who successfully attended both the theory and practical examination as part of the requirements of the Workshop.

The Branch organised a Briefing on 2014 Tax Updates on December 9, 2013. Yong Mei Sim, Principal Assistant Director of Inland Revenue Board from the Bukit Mertajam Branch highlighted to the participants on the eligibility of companies for double deductions, relief on tax deductions and various other updates.

A participant taking part in the Occupational Emergency First Aid Skills and CPR Workshop

Yong Mei Sim, Principal Assistant Director of Inland Revenue Board facilitating the Seminar

New Members (February 2014)The FMM welcomes the following 26 new members into the organisation - 23 Ordinary Members and 3 Affiliate

Members. The majority or 35% are from Selangor, 19% from Johor and 12% from Federal Territory, Negeri Sembilan and Penang, while the rest are from other states

Ordinary Members

• AllianceContractManufacturingSdnBhd• AlmerMalaysiaSdnBhd• AwardPackagingIndustriesSdnBhd• BesteelBerhad• Casima(Malaysia)SdnBhd• DuraTechnologySdnBhd• EcoPaperProductsManufacturing(M)SdnBhd• EmersonProcessManagementManufacturing (M) Sdn Bhd• Finnscrew(Malaysia)SdnBhd• HaewaytianCakeHouseSdnBhd• HealthParadiseSdnBhd• LeaderUniversalAluminiumSdnBhd• LippotexIndustriesSdnBhd

• LTOInjectionSdnBhd• MayairManufacturing(M)SdnBhd• Messier-Bugatti-DowtyMalaysiaSdnBhd• NaueAsiaSdnBhd• PalsgaardMalaysiaSdnBhd• RapidGrowthTechnologySdnBhd• SamsungSDIEnergyMalaysiaSdnBhd• SouthernNisshaSdnBhd• TeemWellIndustriesSdnBhd• TitanMetalWorksSdnBhd

Affiiliate Members

• AimsDataCentreSdnBhd• QExpressLineSdnBhd• SchenkerLogistics(Malaysia)SdnBhd

Branch Events

Documents

Manufacturers: Implementation of Minimum Wage … 290414 web.pdfenabled Barkath Co-Ro to transform itself from ... SMIs was won by Barkath Co-Ro Manufacturing Sdn Bhd while The Rising