Fi Asia Conference Fi Asia Conference 20112011
2121stst Sept 2011Sept 2011Bangkok ThailandBangkok Thailand
Industry PerspectivesAEC 2015-Impact to the Food Industry
ByMr Kamalbahrin Hj Khamsan
President
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Fi Asia Conference 2011Fi Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Introduction
The Association of Southeast Asian Nations (Asean) have a great potential for food market (supply and demand)Malaysia is a relatively small nation with multi
ethnic population of 28.5 million people Malaysia have a niched in halal food ingredient
producer and manufacturerMalaysian government is encouraging world halal
food manufacturer especially Fi to takes advantage of USD 2.1 trillion potential market through Malaysia.AEC 2015 will open more opportunities in Fi
market with a strategic planning and comprehensive management
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Background of ASEAN
area of 4.46 million km,3% of the total land area of Earth,population of 600 million people( 8.8% of the
world population.) combined nominal GDP about US$1.8 trillion.as a single entity, it rank as 9th largest economy
in the world.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
ASEAN Six Majors Economy(GDP)2010
Indonesia USD 695 billions (1,027 billions)
IndonesiaThailand
USD 708 billions (1.029 trillion)USD 312 billions (584 billions)
Malaysia USD 218 billions (412 billions)
Singapore USD 217 billions (291 billions)
Philippines USD 189 billions (350 billions)
Vietnam USD 101 billions (275 billions)
Note GDP Nominal(GDP PPP)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
MAFPA Background
Represent Malaysia Food Processing & Packaging IndustryMembers in Food Manufacturing, Supplies
/Services and TradeCurrent programmes and activities focus on
export Fully support by industry and governmentFi Asia good platform for promote development of
Malaysia food ingredient industry
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Scope of Presentation
AEC 2015-Impact to the Food IndustryRegulation;source of raw material;labor & technology;governments policy and plan;market opportunities & challenges
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
ASEAN ECONOMIC COMMUNITY 2015emphasised regional cooperation in security,
sociocultural and economic integration.
From CEPT to AECA Common Effective Preferential Tariff (CEPT)
scheme to promote the free flow of goods within ASEAN lead the ASEAN Free Trade Area (AFTA).
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area
The Next Step Is ASEAN Economic Community (AEC)
main objectives are:single market and production basehighly competitive economic regionregion of equitable economic developmentregion fully integrated into the global economy
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC Areas of Cooperation
human resources development and capacity building;recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures;enhanced infrastructure and communications connectivity;development of electronic transactions through e-ASEAN;ntegrating industries across the region to promote regional
sourcing; and enhancing private sector involvement for the building of
the AEC.
In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and free flow of capital.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
ASEAN Economic Performance
both export and domestic demand fuelled growth to expand by 7.5 % in 2010Intra-ASEAN trade and investment flows have
shown an upward momentum and are likely to support its 2011 domestic growth, which is estimated between 5.7 and 6.4 %.
NOTE:Reported by The Deputy Secretary-General of ASEAN H.E. Mr. S. Pushpanathan for ASEAN Economic Community (DSG)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
ASEAN Foreign Direct Investment (FDI)
FDI into ASEAN reached US$ 75.8 billion last year, doubling the 2009 level, and surpassing the pre-global crisis peak in 2007 of US$ 75.7 billion.FDI flows in ASEAN over the last ten years have
grown at an annual average rate of 19%.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Malaysias Trade With Asean Countries (USD)Billion
2005 2006 2007 2008Total Export 46.5 51.0 51.6 57.1
Import 36.8 43.8 42.7 42.1Net 9.7 7.2 8.9 15.0
Indonesia Export 4.1 5.0 5.9 6.9Import 6.2 6.0 7.1 8.1Net (2.1) (1.0) (2.2) (1.2)
Thailand Export 9.6 10.4 10.0 10.6Import 7.6 9.4 9.0 9.8Net 2.0 1.0 1.0 0.8
Source:Department of Statistic
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Malaysias Trade With Asean Countries (USD)Billion
2005 2006 2007 2008Singapore Export 27.9 30.1 29.6 32.6
Import 16.9 18.6 19.3 19.1Net 11.9 11.5 10.3 13.5
Philippines Export 2.5 2.7 2.9 3.3Import 4.1 3.5 3.2 2.3Net (1.6) (0.8) (1.3) 1.0
Others Export 2.4 2.8 2.0 3.7Import 2.0 6.3 4.1 2.8Net 2.4 (3.5) (1.0) 0.9
Source: Department of Statistic
Fi Asia Conference 2011Fi Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry Regulation
import dutiesHarmonisation of quality and standardsassurance of food safety,standardisation of trade certification
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Sourcing of Raw Material
free movement of raw material.reduce trade barrier.reduce cost of doing business through tax
exemptionInter complimentary Increased profit
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Sourcing of Raw Material
free movement of raw material.Malaysia import raw material for food industry from Indonesia
(vegetable), Thailand (aquaculture, rice and fruit) and Vietnam (rice)Malaysia export raw material for food industry to Thailand (palm oil
and vegetable), Vietnam (palm oil)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Labor
free movement of skilled labour and technology.Malaysia rapid economic development cause
shortest of skilled and low skilled workers3 million foreign low skilled workers mostly from
Indonesia, Philippines,Thailand,Cambodia and Vietnam,Malaysia hired skilled worker from SingaporeAlso export Malaysia skilled worker to Singapore.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry Technology
Technology transfer through:Procument finished good from ASEAN countryEquity participation in ASEAN viable project and business.Hiring professional and skilled worker for ASEAN viable project and
business.Training in food related industry in ASEAN countryPlacement of Trade office and representative in ASEAN country to
promote bilateral tradeLicense for Contract Manufacturing and business among ASEAN
country servicesRules for Trade Pattern and Copyright accepted by ASEAN country.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Governments Policy and Plan
Since 2011, AEC has agreed to strengthen the position and increase the competitive edges of small and medium enterprises (SME) in the ASEAN region.[
Comprehensive Investment AreaThe ASEAN Comprehensive Investment Area (ACIA) will
encourage the free flow of investment within ASEAN. The main principles of the ACIA are as follows[72]All industries are to be opened up for investment, with
exclusions to be phased out according to schedulesNational treatment is granted immediately to ASEAN
investors with few exclusionsElimination of investment impedimentsStreamlining of investment process and proceduresEnhancing transparencyUndertaking investment facilitation measures
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
http://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/ASEAN#cite_note-aseansec2-71
AEC 2015-Impact to the Food Industry In Governments Policy and Plan
Export-Oriented EconomyForeign Investment PolicyVision 2020Government Transformation ProgrammeNational Food PolicyMalaysia as World Halal Hub
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Governments Policy and Plan
Malaysia's exports grew by 11.1% to USD $19.6 billion whereas imports grew by 9.4 % USD15.9 billion in April 2011According to the world investment report 2011 released
recently by the United Nations Trade and Development Agency, the foreign direct investment to Malaysia soared 536 per cent toUSD $9.3 billion in 2010, constituting the highest record in thehistory. driven by the free trade agreements and strong pressure from
relevant countries to open up our market
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Market Opportunities & Challenges
The global market for food ingredients was estimated to be worth roughly USD25bn (18.5bn) in 2007, and is expected to reach $30bn by 2010, demonstrating a growth rate for the market of 5-6% year on year.Globally, food ingredients is a multibillion dollar
industry and is fast expanding, growing in sync with the processed food market. Innovation in the food and beverage market, especially in processed foods, has created innumerable opportunities for new product development in the ingredients market too.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
Fi Global Market
Consultant's Corner Aditi Basu/Frost & SullivanThe global market for food ingredients was estimated to be
worth roughly $25bn (18.5bn) in 2007, and is expected to reach $30bn by 2010, demonstrating a growth rate for the market of 5-6% year on year.Globally, food ingredients is a multibillion dollar industry and
is fast expanding, growing in sync with the processed food market.Innovation in the food and beverage market, especially in
processed foods, has created innumerable opportunities for new product development in the ingredients market too.Growing urbanization, changing lifestyles and the need for
convenient healthy foods have ushered in a new category of functional and health foods that claim to be fortified with certain new-age health ingredients offering functional health benefits over and above the basic nutritional value of the foodstuff.
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Market Opportunities & Challenges
Malaysia offer attractive package for halal Fimanufacturing developmentMalaysia multicultural country offer best platform
for Halal Fi market R & DMalaysian government is encouraging world halal
food manufacturer especially Fi to takes advantage of USD 2.1 trillion potential market through Malaysia.
MAFPA offer helping hand to help Fi manufacturer to develop halal niche Fi in Malaysia
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
AEC 2015-Impact to the Food Industry In Working Together For Greater Opportunities & Challenges
We in Malaysia share your values and youraspirations, and we urge you to work with us. ThedecisionhadmadeASEAN"afriend,notanadversary;acolleague,notacompetitor;apartner,notarival",AllASEANcountriesandtheirpeopleswouldbeableto fulfil their truepotentialand secure theirplaceattheforefrontofthenewglobaleconomicsociety
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
THANK YOU
FiFi Asia Conference 2011Asia Conference 201121st Sept 201121st Sept 2011Bangkok ThailandBangkok Thailand
Malaysia Food Processing and Packaging Entrepreneurs Association (MAFPA)
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