BusinessBusiness - FMM JanFeb2015...@FMM BusinessBusiness in in ActionActionKDN NO: PP 16730/08/2012...

@FMMBusinessBusinessin in ActionAction

KDN NO: PP 16730/08/2012 (030376)

www.fmm.org.my

Jan/Feb 2015VOL 1/2015

FMM-MIER BUSINESS CONDITIONSSURVEY RESULTS

CAPTURING BUSINESSOPPORTUNITIES IN OMAN

MyCC – FMM COMPETITIONCOMPLIANCE COLLABORATION

02 BIA@FMM | Jan – Feb 2015

© Copyright Reserved

CONTENTS

FEDERATION OFMALAYSIAN MANUFACTURERS

PUBLISHED BYFederation of Malaysian Manufacturers(7907–X)Wisma FMMNo 3, Persiaran DagangPJU 9, Bandar Sri Damansara52200 Kuala LumpurTel: 03-62867200Fax: 03-62741266/7288Email: [email protected]: www.fmm.org.my

PRINTED BYPercetakan Okid Sdn BhdNo. 2, Jalan SS13/3CSubang Jaya Industrial Estate47500 Subang Jaya, Selangor

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 Loh, General Manager (Trade)

Ng Lee Lee, Senior ManagerInternational Business Division

Florance S Gabriel, Assistant ManagerCommunications and Publications Unit

ADVERTISEMENTSKenny Lee, Sales ManagerMarketing Unit(+6012-383 3857)

page 3

COVER STORY

FMM Annual Dinner2014

12FINANCIAL AND EXPORT ASSISTANCEFOR MANUFACTURERS, TRADERSAND SERVICE PROVIDERS

14CAPTURING BUSINESS OPPORTUNITIESIN OMAN

16FMM COLLABORATES WITHMPC TO INTRODUCE LEANMANAGEMENT SYSTEM

18EVENTS IN PICTURES

20MyCC – FMM COMPETITIONCOMPLIANCE COLLABORATION

24GS1 DATAMATRIX

NEWS HIGHLIGHTS

03FMM ANNUAL DINNER 2014

05FMM 46TH ANNUAL GENERAL MEETING

06FMM COUNCIL MEMBERS 2014/2015

07WINNER OF THE MANUFACTURER OFTHE YEAR AWARD – LARGE COMPANY

08FMM-MIER BUSINESS CONDITIONSSURVEY RESULTS

10VISIT TO METALEX 2014 IN BANGKOK,THAILAND

PROMOTING MALAYSIA-SINGAPORETRADE AND INVESTMENT TIES

UPDATES

26NATURAL GAS PRICE REVIEWFOR NON-POWER SECTOR INPENINSULAR MALAYSIA &ELECTRICITY TARIFF MAINTAINEDUNTIL JUNE 2015

BRANCH EVENTS

28PENANG

MALACCA

30SELANGOR

31PERAK

32KEDAH/PERLIS

EASTERN

33JOHOR

SARAWAK

34NEGERI SEMBILAN

COVER STORY

Jan – Feb 2015 | BIA@FMM 03

FMM’s 46th Annual Dinner on November 27, 2014 was attended by about 1,200 members, theirassociates and business leaders with YB Datuk Paul Low, Minister in the Prime Minister’s Department as theGuest-of-Honour.

FMMANNUAL DINNER

2014

industries and also why there is a lack of push forup-skilling and migration to higher value-addedindustries. This weakness comes from the lack ofcohesion in the industrialisation and labour reformof the nation.

During the dinner, the FMM Excellence Awards 2014were presented to the winners. The Award whichwas introduced in 2010 was in its 5th year. TheAward recognises businesses for their outstandingachievement and excellence in manufacturing,process improvements and corporate growth.The awards were presented to Petzl ManufacturingMalaysia Sdn Bhd as the Rising Star of The Yearcategory, Teckwah Paper Products Sdn Bhd whowon The Manufacturer of The Year Award 2014(SMIs) and to New Star Food Industries Sdn Bhdfor Manufacturer of The Year Award 2014 (LargeCompanies). All three winners received theirawards from YB Datuk Paul Low.

The dinner was attended by some distinguishedguests that included Datuk Dr Rebecca Sta Maria,Secretary General of the Ministry of InternationalTrade & Industry, Tan Sri Dr Ahmad Tajuddin Ali,Chairman of CIDB, Dato’ Abdul Razak Abdul Majid,Chairman of the Energy Commission and GeorgeHuang, Emeritus President of the SingaporeManufacturing Federation.

YB Datuk Paul Low, in his speech, highlightedthat Malaysia’s ability to manage the economy,to attract foreign direct investments and to becompetitive has benefited us with past decades ofstrong economic growth, hence a higher standardof living. He also added that the government isconcerned with the large influx of unskilled workers.Unfortunately, the recruitment of migrant workershas not followed the economic upgrading strategiesof the nation over the years. This is the main reasonwhy Malaysia continues to have labour-intensive

(continue on pg 04)

From left: Tan Sri Datuk Yong Poh Kon, FMM Immediate PastPresident, Tan Sri Dr Ahmad Tajuddin Ali, Chairman of CIDBand Datuk Dr Rebecca Sta Maria, Secretary General of the

Ministry of International Trade & Industry

YB Datuk Paul Low, Minister in the Prime Minister’s Departmentgiving the Keynote Address at the Annual Dinner


COVER STORY

(continued from pg 03)

The winner of the FMM Excellence Award 2014Rising Star of The Year, Petzl Manufacturing MalaysiaSdn Bhd is a leader in safety gears and harnesses forclimbing, rescue work and sports. The Manufacturerof The Year Award 2014 (SMIs), Teckwah PaperProducts Sdn Bhd offers its clients a wide range ofprinting services from offset and UV printing to digitalprint on demand using cutting edge technology. The Manufacturer of The Year Award 2014 (LargeCompanies), New Star Food Industries Sdn Bhdis a 100% Malaysian owned company whichmanufactures wheat-based snack products,prawn crackers and related foodstuff.

FMM Council members and guests

The winners (from left): Yin Chun Hong, Group Finance Manager ofTeckwah Paper Products Sdn Bhd, Lim Kim Poon, Operations Manager cum

Management Accountant of New Star Food Industries Sdn Bhd andGilles Waeldin, Managing Director of PETZL Manufacturing Malaysia Sdn Bhd

YB Datuk Paul Low with Dato’ Saw Choo Boon

Networking among guests at the Annual Dinner

FMM President Dato’ Saw Choo Boon addressing FMM members at the Annual General Meeting


FMM 46TH ANNUAL GENERAL MEETING

FMM held its 46th Annual General Meeting (AGM)on November 27, 2014, at Wisma FMM, BandarSri Damansara, Kuala Lumpur.

SPECIAL FEATURE

In his address, FMM President Dato’ Saw Choo Boonhighlighted that the financial year 2013/2014saw some improvements in the global economicenvironment. However, the year remained challengingfor manufacturers as the cost of doing businesshad increased due to new and amended policies,legislation and regulations and increased fees andrates. In the Klang Valley, members had to deal withthe additional problem of water rationing.

The implementation of GST was of great concern forFMM members. FMM had successfully advocated fora subsidy for SMEs for GST software and negotiatedaffordable GST-related consultancy packages.

Members were called upon to continuouslyimprove productivity, upgrade and automatetheir manufacturing processes and to remain leanand competitive in responding to the challenges.

The report of the Council and Statement ofAccounts for financial year ended June 30, 2014were unanimously approved and adopted by themembers present. At the meeting, Tan Sri Dato’Soong Siew Hoong and Dato’ OK Lee were

re-elected to the Council under Section 129(6) of theCompanies Act 1965. A total of 12 council memberswere elected/re-elected into the FMM Council.

At a council meeting following the AGM, Dato’Saw Choo Boon was unanimously re-elected asFMM President while Tan Sri Datuk Yong Poh Konremained Immediate Past President for 2014/2015.Dato’ (Dr) Ir Andy Seo Kian Haw, YM Raja Dato’Abd Aziz bin Raja Muda Musa, Davies Danavaindranand Tan Sri Dato’ Lim Wee Chai were elected asVice-Presidents.

The Annual General meeting in progress

FMM COUNCIL MEMBERS 2014/2015

06 BIA@FMM |Jan – Feb 2015

SPECIAL FEATURE

President

Dato’ Saw Choo BoonShell Refining Co (FOM) Bhd

Immediate Past PresidentTan Sri Datuk Yong Poh KonRoyal Selangor InternationalSdn Bhd

Vice-PresidentsDato’ (Dr) Ir Andy Seo Kian HawAlphaprima Engineering Sdn Bhd

YM Raja Dato’ Abd Aziz bin RajaMuda MusaJohan Ceramics Berhad

Davies DanavaindranRadosh Engineering & IndustrialSdn Bhd

Tan Sri Dato’ Sri Lim Wee ChaiTop Glove Sdn Bhd

Council MembersYeow Teck ChaiAmsteel Mills Sdn Bhd

Tan Sri Cheng Yong Kim Antara Steel Mills Sdn Bhd

Jacob Lee Chor KokAsli Mechanical Sdn Bhd

Tuan Haji Othman Abdul Rani CMS Cement Sdn Bhd

Dato’ Tan Boon PunGreatpac Sdn Bhd

Dato’ Nathan K Suppiah Isus Dentomedic Industries Sdn Bhd Tan Sri Dato’ Soong Siew Hoong Kejuruteraan Wang Yuen Sdn BhdAbdul Samad Ibrahim Kulitkraf Sdn BhdDatuk Leow Chong HowaLB Aluminium BerhadWong Siew YapLinde Malaysia Sdn BhdIr A K WooMaster Jaya Engineering Sdn BhdAlois Hofbauer Nestle Manufacturing (Malaysia)Sdn BhdDr Neoh Vee HengNETC Asia Resources Sdn BhdDato’ O K LeePenfibre Sdn BhdNoraini bt SoltanSipro (Malaysia) Sdn BhdDato’ Haji Mizanur Rahman GhaniTioxide (Malaysia) Sdn BhdPeter Lim Yoke CheongTitan Metal Works Sdn BhdJohn Lee Boon HawUmmi Medical & Life SciencesSdn BhdChan Cheu LeongWah Seong Corporation BerhadDatuk Dr Wan Mohamed binWan EmbongWSA Capital Corporation Sdn Bhd

Branch Committee ChairmenDato’ Dr Haminnuddin Abd Hamid(Kedah/Perlis Branch Committee)Ideal Healthcare Sdn Bhd

Dato’ Dr Ooi Eng HockPenang Branch CommitteeMenara Kerjaya Fasteners Sdn Bhd

Dato’ Gan Tack KongPerak Branch CommitteeNgan Yin Groundnut FactorySdn Bhd

Dato’ Soh Thian LaiSelangor Branch CommitteeStar Shine Industries Sdn Bhd

Datuk Mohamed Arsad bin SehanNegeri Sembilan Branch CommitteePureCircle Sdn Bhd

Datuk Jeffery OngMalacca Branch CommitteeOriental Food Industries Sdn Bhd

Capt (R) Haji Abdullah ShariffJohor Branch CommitteeLam Soon Edible Oils Sdn Bhd

Dato’ Haji Mas’ut bin A. SamahEastern Branch CommitteePascorp Paper Industries Berhad

Group photograph of the Council Members for 2014/2015


SPECIAL FEATURE

WINNER OF THE MANUFACTURER OF THEYEAR AWARD – LARGE COMPANY

New Star Food Industries Sdn Bhd (NSF) is a 100%Malaysian owned company. It is a manufacturerof wheat flour-based snacks, and other relatedfoodstuff. Incorporated in 1976, the company hastransformed from a simple traditional family businessinto an enterprise with automated production linesand quality management system. Its products aremarketed under “SNEK KU”.

NSF’s machinery and equipment are fabricatedinternally through in-house R&D together withtechnical support from suppliers. NSF exports tomore than 20 countries including the Asian Region,Middle East, Australia and New Zealand.

The award was presented to Lim Kim Poon,Operations Manager cum ManagementAccountant by YB Datuk Paul Low, Minister inthe Prime Minister’s Department who was theGuest-of-Honour at the FMM Annual Dinner onNovember 27, 2014.

The Manufacturer of the Year 2014 Award –Large Companies was awarded to New StarFood Industries Sdn Bhd.

Lim Kim Poon, Operations Manager cum Management Accountantof New Star Food Industries Sdn Bhd (right) receiving the Award

from YB Datuk Paul Low

New Star Food Industries Sdn Bhd’s staff celebrate after winning the award

NEWS HIGHLIGHTSNEWS HIGHLIGHTS

08 BIA@FMM |Jan – Feb 2015


NEWS HIGHLIGHTS

VISIT TO METALEX 2014 IN BANGKOK,THAILAND

New models of machinery were displayed for the first time and live demonstrations were held to display thefull performances of these technologies. Conference rooms were filled with prestigious speakers with equallyinterested participants.

Delegates also took the opportunity to attend the METALEX NANO Forum where experts from organisationsworking in the nanotechnology field shared visions, best practices and experiences with the delegates.An exclusive factory visit to Honda Automobile (Thailand) Co. Ltd was also arranged for the businessdelegates to tour the production assembly line.

FMM led a delegation of 21 members to the METALEX exhibition held in BITEC, Bangkok, Thailand fromNovember 19 – 22, 2014. The four-day show culminated with more than 76,000 visitors from ASEAN and othercountries. A wide range of efficient innovations were assembled to offer the best solutions to the visitors.

Delegates visiting the Honda Automobile (Thailand) Co. Ltd in Bangkok

PROMOTING MALAYSIA-SINGAPORE TRADEAND INVESTMENT TIES

The 12th Joint Malaysia-Singapore Business Councilwas hosted by Malaysia on December 2, 2014 atPort Dickson. Co-chaired by Dato’ Lim Say Chongfrom Malaysia and Cheng Wai Keung fromSingapore, the meeting was attended by over37 Council members and invited guests fromboth countries.

Some of the key issues discussed included impactof the recent increase in toll rates which hadresulted in a drop in tourist arrivals in Johor,introduction of RTS and High Speed Rail whichwould facilitate movement of travellers and reducevehicle congestion at the Causeway and SecondLink and IRDA’s plans to increase the manpowerrequirements in Iskandar Malaysia.


FINANCIAL AND EXPORT ASSISTANCEFOR MANUFACTURERS, TRADERS ANDSERVICE PROVIDERS

The 3rd seminar of the FMM Business Best Practices seriesfocussed on Financial and Export Assistance forManufacturers, Traders and Service Providers was heldon November 18, 2014. Over 90 participants comprisingSales & Marketing and Finance Managers/Executivesas well as General Manangers, Managing Directorsand Chief Executive Officers gained updates onfinancing options offered by EXIM Bank and MalaysiaExternal Trade Development Corporation.

Participants showed interests in the Go-Ex and Mid-TierCompanies Development programmes offeredby MATRADE. Guna Seelan Balakrishnan, PrincipalAssistant Director of Ministry of International Tradeand Industry (MITI) provided a comprehensive briefingon the impact of ASEAN Economic Community onMalaysian companies.

The FMM Business Best Practices is a series ofseminars with invited speakers from privatecompanies and/or government agencies whoshare their know-how on best practices in doingbusiness. Resource persons and speakers areinvited from both the private and public sectors.

NEWS HIGHLIGHTS

From left: Guna Seelan from MITI, Azrin Azizuddin from EXIM Bank, Dr. Yeoh Oon Tean, FMM CEO and Wan Ahmad Tarmizi andOmar Mohd Salleh from MATRADE

A participant raising a question on Go-Ex programmeoffered by MATRADE


NEWS HIGHLIGHTS

CAPTURING BUSINESS OPPORTUNITIESIN OMAN

Oman is comparatively large, being thesecond-largest country on the ArabianPeninsula and is integrated regionally andinternationally. It maintains close ties withcountries such as the UK and the US. Omanis situated at the entrance to the Gulf inthe middle of the East-West trade routes.This ensures easy access to markets in theMiddle East, India, Southeast Asia, Africaand Europe. It is among the few countriesin the world that is considered ideal forlong-term investments due to moderninfrastructure, a strong industrial base, aliberal investment environment, a stablegovernment with transparent corporategovernance, the presence of institutions thatprotect investors and ensure their access tothe market and laws and regulations thatare business friendly.

At the briefing, H.E. Janab Sayyid highlightedthat Oman’s major transformation in termsof economic development is evident withOman’s five year plan for new projects withallocations up to USD78 billion for turnkeyinvestment projects. Among these megaprojects are the USD10 billion nationalrailway projects, USD4.2 billion for MuscatInternational Airport, USD3.1 billion forseaports and USD1.5 billion for Sultan QaboosMedical City.

As a follow-up to the briefing, FMM will becoordinating the following exhibitions in Omanfor the benefit of Malaysian companies.

• Oman Refining & Petrochemical Exhibitionand Conference, March 16 – 18, 2015

• The BIG Show, March 30 – April 2, 2015

• Energy & Water Oman, May 19 – 21, 2015

• Food & Hospitality Oman, September 7 – 9,2015

• Oil & Gas West Asia, March 21 – 23, 2016

Members who are interested in exploring theOmani market may contact Danielle Chinfrom the FMM Secretariat at tel: 03-62867307or email: [email protected].

FMM organised a briefing on Capturing Business Opportunities in Oman on November 6, 2014 whichwas attended by 131 participants. The objective of the briefing was to promote business opportunitiesavailable to Malaysian companies in the food, health, oil & gas and construction sectors in Oman.The briefing was graced by H.E. Janab Sayyid, Ambassador of the Sultanate of Oman to Malaysia.

H.E. Janab Sayyid, Ambassador of the Sultanate of Omangiving the welcoming address

Members networking at the Capturing Business Opportunities in Omanafter the briefing session



FMM COLLABORATES WITH MPC TOINTRODUCE LEAN MANAGEMENT SYSTEM

The event kicked off with a launching ceremonyon November 19, 2014 when the companies werepresented with letters of offer and lean badge byDato’ Mohd Razali Hussain, Director-General of MPCand Datuk Dr Wan Mohamed bin Wan Embong,Chairman of FMM Services Sdn Bhd.

The project, a collaboration between FMM andMalaysia Productivity Corporation, aims to promotelean management among FMM members giventhe rising cost of doing business and the necessityfor companies to review their operations andintroduce lean management. The Lean programmehas proven to benefit companies with immeasurableimprovements in work process efficiency and bottomline performance.

Following the launch of the project, visits werearranged for the lean consultant to meet selectedcompanies in the project. Visits were made toKulitkraf Sdn Bhd and Elite Stationery Sdn Bhd onNovember 26 and December 3, 2014.

The first visit was held mainly to explain the modusoperandi of the lean consulting activity to seniormanagement staff of the company, to analysethe current condition of the factory and to obtaindata on material and information flow chart of thecompanies. The data would then be mapped withproblematic factors and discussed with the companies.

Applications are now open to members who arekeen to participate in the second phase of this project.For more information, please contact Jess Chongfrom the FMM Secretariat at [email protected].

Congratulations to the 10 FMM membersselected for the pilot project of MalaysianProductivity Corporation (MPC) – FMM LeanSystem Development Programme.

Discussion held between consultant and staff ofKulitkraft Sdn Bhd

Dato’ Mohd Razali Hussain, Director-General of MalaysianProductivity Corporation (1st left) and Datuk Dr Wan

Mohamed bin Wan Embong, Chairman of FMM ServicesSdn Bhd (2nd left) presenting the letter of acceptance to

representative from MJ Manufacturing Sdn Bhd. Looking onis Dr Yeoh Oon Tean, FMM CEO

Visit to Yeong Chaur Shing Paper Mill Industry Sdn Bhd byFMM consultant on December 19, 2014


FMM Penang Branch’s FMM Heritage Gallery Project, November 12, 2014FMM Annual General Meeting, November 27, 2014

EVENTS IN PICTURES

Presentation on Housewives Enhancement And ReactivateTalent Scheme (HEARTS) by Human Resources DevelopmentFund to Women in Business Committee, November 7, 2014Briefing on Capturing Business Opportunities in Oman, November 6, 2014

Interfood Indonesia 2014, Jakarta Indonesia, November 12 – 15, 2014Selangor Branch’s Goods and Services Tax (GST) Onsite

Registration for its members, November 3, 2014


Meeting between FMM Sarawak DOSH Sarawak, November 20, 2014COSME Tokyo, October 20 – 22, 2014

EVENTS IN PICTURES

FMM Perak Branch’s Annual Dinner, November 3, 2014

Launching ceremony of MPC-FMM Lean System DevelopmentProgramme, November 19, 2014FMM Annual Dinner, November 27, 2014


NEWS HIGHLIGHTS

MyCC – FMM COMPETITIONCOMPLIANCE COLLABORATION

or private actions, possibly obtain a reduction inpenalties, and enhance corporate governance thusboosting the image and viability of the enterprise.

FMM President, Dato’ Saw Choo Boon stressed thatthe Competition Act 2010 aims to promote marketcompetition and ensures that enterprises competefreely and fairly. Competition forces enterprises to bemore efficient and innovative, and be responsive toconsumer demand by offering better quality productsand services, and wider choices at competitive prices.Compliance to the Act is therefore essential.

He added that FMM was pleased to work with MyCCto draw up a checklist which summarises the MyCCCompliance Guidelines handbook into a “To Do”checklist with recommended reviews and actions tobe taken. The checklist is not only useful in developinga competition compliance programme but also forreview of existing programmes to ensure they arerobust. He hoped that with the checklist, morecompanies will be encouraged to build a strongculture of compliance to the Competition Act.

The self-assessment checklist, available on FMMwebsite, uses scoring to help measure the extentof compliance with competition issues and aperformance rating for companies.

MyCC also took the opportunity to update memberson competition compliance, lessons learnt throughcases and bid rigging which is a form of price fixingand allocation of markets.

The Malaysia Competition Commission (MyCC) and Federation of Malaysian Manufacturers (FMM) jointlyhosted a briefing to re-introduce the competition law compliance guidelines handbook and launch thecompliance checklist on November 25, 2014. MyCC first launched the Compliance Guidelines handbookin 2013. The briefing on “Better Business with Competition Compliance” was attended by 120 members.

From left: Steven Aroki, Tan Sri Datuk Yong Poh Kon, FMM ImmediatePast President, Shila Dorai Raj CEO of MyCC, Tan Sri Dato’ Seri SitiNorma Yaakob Chairman of MyCC, Dato’ Saw Choo Boon and

Prof Dato’ Dr. Sothi Rachagan, member of MyCC

MyCC Chairman Tan Sri Dato’ Seri Siti Norma Yaakobexhorted business owners to take compliancewith competition law seriously at all levels andcalled for a culture change to support such effort.Tan Sri added that despite the 18-month moratoriumbefore the Act came into force in January 2012and intense advocacy efforts by the MyCC,many businesses appear to be unaware of thecompetition laws. There are serious risks to businesseswhen they do not comply with the law such asdamage to reputation, hefty fines and costs.

Tan Sri Dato’ Seri Siti Norma Yaakob called on theindustry to undertake a thorough review of tradepractices in their compliance programme to identify potential risks of infringement.

“There is no ‘one size fits all’ competition lawcompliance programme,” added Tan Sri Dato’ SeriSiti Norma Yaakob. “Do not accept ‘off-the-internet’compliance programmes that may not address therisks of your business. Each business must assess itsown compliance risks and determine the steps itrequires to take in order to comply with the law.”

The MyCC Chairman also mentioned that apartfrom avoiding reputational damage, an effectivecompliance programme will help an enterpriseto avoid incurring costs brought on by investigation

NEWS HIGHLIGHTS

APPRENTICESHIP PROGRAMME –COLLABORATION BETWEEN FMM ANDMINISTRY OF EDUCATION

Under the Programme, MOE will enrol the students who havedemonstrated interest to pursue their secondary education via thevocational route after the completion of Form Three. The studentswill undergo the Apprenticeship Programme, comprising 30% theorywhich cover academic subjects and basic vocational skills theory,taught at the Vocational Colleges and 70% practical training at theindustry. The duration of the programme is two years. At the end ofthe programme, students will be trained in the respective industryskills up to Level I and II of the Malaysian Skills Certification.

The collaboration will be sealed through a Memorandum ofAgreement between MOE and the company which will be takingin the students for the practical training. Companies are expectedto provide the training facilities, including training room andequipment, and training consumables for the period of practicaltraining, whilst ensuring safety precautions, and safety equipmentare provided for the students in line with the safety policy andwork procedures of the organisation. The students are expectedto be guided by the company’s coach or training personnel inachieving the industry standard of the skills that they are trained.

A pilot run of the Apprenticeship Programme will be implementedpending confirmation from MOE. The success of this pilot projectwill pave the way to develop industry-relevant skilled workers tomeet the needs of industry in the future.

The Apprenticeship Programme, a collaboration between FMM and the Ministry of Education (MOE) isa fast-track effort of the government to develop skilled workers to meet the future manpower need ofindustry. A Working Group on Apprenticeship Programme, chaired by FMM Vice President, and Chairmanof the Human Resources Management Working Committee, Davies Danavaindran was established inJune 2013 with the objective of operationalising the implementation of the Apprenticeship Programme.The Working Group also worked together with MOE to address industry concerns such as safety and legalage issue in developing a model acceptable by FMM.

Discussion on the Apprenticeship Programme in session

Trade Fairs Date Venue

• Hannover Fair Apr 13 – 17, 2015 Hannover, Germany• Beauty Eurasia Apr 30 – May 2, 2015 Istanbul, Turkey• Travel Catering Expo 2015 May 10 – 12, 2015 Dubai, UAE• Subcon Thailand* May 13 – 16, 2015 Bangkok, Thailand• IFEX Philippines May 11 – 24, 2015 Manila, Philippines• Propak Asia* Jun 17 – 20, 2015 Bangkok, Thailand• Africa’s Big Seven Jun 21 – 23, 2015 Johannesburg, South Africa• SAITEX Jun 21 – 23, 2015 Johannesburg, South Africa• Food Taipei Jun 24 – 27, 2015 Taipei, Taiwan• Manufacturing Expo* Jun 24 – 27, 2015 Bangkok, Thailand

Upcoming Trade Fairs – Register Now

For more information, please call Clarissa, Danielle or Wee Leng from FMM Secretariat at 03-6286 7200Note:* Complimentary 3 nights stay in a 5-star hotel on twin-sharing basis



GS1 DATAMATRIX

The use of GS1 barcodes has progressed andexpanded over the years and its application is nolonger just for grocery products. Sectors such ashealthcare, defence, telecommunication andagricultural are also using the GS1 System of itemidentification and bar codes.

Today, more than 1.5 million companies in150 countries across all industry sectors use theGS1 standards in their daily communications.This represents a total of over 6 billion scanningtransactions a day! Which is more thanFacebook (1.28 billion users per month) andTwitter (500 million messages per day).

With the widespread application of the GS1standards, there is a need for a new barcodesymbology that can cater to the needs of industriesthat require additional information on the labels butare constrained by space.

With this in mind, GS1 has come up with theDataMatrix which is a two dimensional (2D) bar codewhich can encode more information but using asmaller space. The GS1 DataMatrix is a 2D bar codesymbol specified for use by the GS1 System.

GS1 DataMatrix barcodes can reconstruct upto 20% of damaged characters, while traditionalbarcodes have no error correction capabilities.

GS1 DataMatrix barcodes are suitable for nearly allprinting processes from offset to thermal transfer,and even direct marking by ink-jet or laser. Thesymbol offers readability even with low contrast,and is readable in a 360 degree orientation.

About GS1 GS1 is a neutral and leading global organisationdedicated to the design and implementation ofglobal standards and solutions to improve theefficiency & visibility of the supply and demandchains globally and across sectors. The GS1 systemof standards is the most widely used supply chainstandards system in the world.

In Malaysia, GS1 System is managed by GS1 Malaysiaoperating under the aegis of FMM.

The barcode is the key to product information. Every scan facilitates the speedy retrieval and accuratetransmission of information. The GS1 System of standardised item identification and bar coding provide aframework that allows products, services and information to move efficiently for the benefit of businessesand the improvement of people’s lives, everyday, everywhere.

The GS1 DataMatrix can holdslarge amounts of data in arelatively small space as comparedto traditional linear barcodes,and is therefore becomingincreasingly popular for a wide

range of applications including aerospace,pharmaceutical, U.S.A. Department of Defense,and medical device manufacturing.

GS1 DataMatrix barcodes are also used on tradeitems that have limited space for product markingsuch as healthcare items not intended to passthrough retail point-of-sale (POS) and for parts thatneed to be tracked in a manufacturing process.Only camera based scanners (2D imagers) canread and decode GS1 DataMatrix barcodes.

In addition to their relatively small size, GS1DataMatrix barcodes utilise sophisticated errorcorrection algorithms to compensate for loss ofmissing data or code damage. This means that printquality and contrast are much less critical than withtraditional linear barcodes. With error correction,

NEWS HIGHLIGHTS


UPDATES

NATURAL GAS PRICE REVIEW FORNON-POWER SECTOR IN PENINSULARMALAYSIA & ELECTRICITY TARIFF MAINTAINEDUNTIL JUNE 2015

The Energy Commission (ST) had announced onOctober 29, 2014 a review of natural gas tariff for thenon-power sector in Peninsular Malaysia effectiveNovember 1, 2014. The new pricing is:

On average, natural gas pricing has increased by2.33% or RM0.45/mmBtu. The natural gas price reviewis in line with the Government’s energy subsidyrationalisation programme to review natural gasprices and electricity tariff every six months.

Since January 2014, electricity tariff is reviewedunder the Incentive Based Regulation frameworkand Imbalance Cost Pass-Through (ICPT)mechanism, which allows a review every six months.

On November 5, 2014, the Ministry of Energy, GreenTechnology & Water (KeTTHA) announced theGovernment’s decision to maintain electricity tariffuntil June 2015, through savings from renegotiationswith the first generation independent powerproducers and maintaining the current gas pricesupplied by Petronas to the power sector. The moveis also to allow industries to prepare for futurerationalisation exercises. Consumers are urged touse power prudently and to reduce wastage byusing energy efficient appliances and implementingenergy efficiency and conservation measures.

For more information, please refer to the Ministry’spress statement on the ICPT for electricity tariffreview in Peninsular Malaysia.

Tariff Average Current New Tariff Category Consumption Tariff Effective (RM/mmBtu) (mmBtu) (RM/mmBtu) November 1 2014

A Domestic 19.52 19.52

B 0 – 200 20.61 21.00

C 601 – 5,000 17.64 18.19

D 5,001 – 18.14 18.55 50,000

E 50,001 – 19.00 19.44 200,000

F 200,001 – 19.18 19.63 750,000

L > 750,000 19.65 20.11

Average 19.32 19.77


UPDATES

Penang

The Branch organised the following activities:

• 45th Annual Dinner on October 17, 2014. A total of340 guests from member companies, governmentdepartments and trade associations attendedthis annual event. The Guest-of-Honour for theevening was the Chief Minister of Penang YABTuan Lim Guan Eng.

• Briefing on The New Factories and Machinery(Special Scheme of Inspection) (Risk-BasedInspection) Regulations 2014 on October 28, 2014.

• Seminar on Step-By-Step Guide on ImplementingGST on November 3 & 4, 2014 conducted byWan Leng Whatt, former Senior Deputy Director ofCustoms, Royal Malaysian Customs Department.

• HRM Updates & Forum on November 20, 2014which was sponsored by Unit Perancang EknomiPenang. The invited guest was Yip Hon Choong,Managing Director of MYwave Sdn Bhd.

BRANCH EVENTS


From left: Former Branch Committee Chairman, Dato’ Khoo Cheok Sin,Chief Minister of Penang YAB Tuan Lim Guan Eng and FMM President,

Dato’ Saw Choo Boon at the Branch’s Annual Dinner

Malacca

The Branch’s activities included the following:

• Seminar on Hazard Identification Risk Assessment andDetermining Control Cost (HIRADC) on November 20,2014 which was facilitated by Abd Malek Omar.Participants learnt how to prepare the HIRADC bydefining the types of hazards, analysing the risksassociated with the hazards and the appropriateways to eliminate or control the hazards.

• 33 participants from 14 companies visited NestleManufacturing (M) Sdn Bhd on November 18, 2014.The management team from Nestle shared theirSafety and Health, Education and Training andLean practices.

• FMM HR/IR advisor Heng Poh Suan briefedparticipants on November 10, 2014 on thewider scope of employee absenteeism, causesand types of absenteeism and how to manageabsenteeism effectively at the workplace.

• Seminar on Updates on Budget 2015 by Yong MeiSim, Principal Assistant Director, Inland RevenueBoard Bukit Mertajam.

Members who participated in the visit to Nestle Manufacturing (M) Sdn Bhd

Group discussion during the Seminar on Hazard IdentificationRisk Assessment and Determining Control Cost held on

November 20, 2014


Selangor


• A briefing on 2015 National Budget on October 15,2014 with 35 participants in attendance. Adrian Yeoof Adrian Yeo & Co briefed members on theNational Budget 2015 and other topics includingimpact of GST on Business.

• 28th Annual General Meeting of the Branch washeld on October 15, 2014 where the followingOffice Bearers for 2014/2015 were elected:

Branch Committee ChairmanDato’ Soh Thian Lai, Star Shine Industries Sdn Bhd

Branch Committee Immediate Past ChairmanTan Sri Dato’ Prof Dr James Alfred, Shiroshi Resource(M) Sdn Bhd

Branch Committee Vice-ChairmenDato’ Nathan K Suppiah, Isus Dentomedic IndustriesSdn Bhd

Dr Neoh Vee Heng, NETC Asia Resources Sdn Bhd

Jacob Lee Chor Kok, Asli Mechanical Sdn Bhd

Abdul Samad Ibrahim, Kulitkraf Sdn Berhad

• A Programme on SOCSO Benefits and ClaimsProcedure for Employers held on October 29,2014. It was conducted by Tn Hj Zainal Bin Ismail,Timbalan Pengarah PERKESO Selangor for humanresource practitioners to understand in depthSOCSO’s contribution, deduction, benefits andclaims procedure.

• 2nd second session of Goods and Services TaxOnsite Registration for members in Selangor onNovember 3, 2014. The event was jointly organisedwith Jabatan Kastam DiRaja Malaysia Selangor.

• Security Seminar on Crime Prevention on November 5& 6, 2014 to increase awareness on crime preventionstrategies, measures, actions for better crimeprevention and also to provide an in-depth analysisof the challenges and issues related to crime.

• Briefing on New Mechanism for Import Duty & SalesTax Exemption on Machinery, Equipment, Spare Parts& Consumables on November 14, 2014. Speakerswere from Malaysian Investment DevelopmentAuthority and Royal Malaysian Customs Department.

• Seminar on GST: A Step by Step Guide onImplementing GST on November 17 & 18, 2014conducted by Wan Leng Whatt, former SeniorDeputy Director of Royal Malaysian Customs toassist FMM members to better understand therequirements of the GST System in Malaysia, itsimpact on business operations and the preparationrequired to comply with the GST implementation.

• Workshop on Complying with Personal DataProtection Act 2010 on November 19, 2014 to createawareness on the salient provisions of the Act; obtainideas on drafting the required notices, consentsand to seek clarification on compliance issues.

BRANCH EVENTS

Participants listening attentively to Tn Hj Zainal Bin Ismail,Timbalan Pengarah PERKESO Selangor

Group photograph of the new Office Bearers of the Branch

A demonstration on self-defense by Malaysian CrimePrevention Foundation


Perak


• Seminar on GST: A Step By Step Guide onImplementing GST on October 13 & 14, 2014.The seminar was attended by 230 participantsfrom 93 companies. Wan Leng Whatt, FormerSenior Deputy Director of Customs Malaysiabriefed the participants on the various aspectsof GST implementation.

• Seminar on Self Declaration Mechanism for ImportDuty and/or Sales Tax Exemption for Machinery,Equipment, Spare Parts and Consumables onNovember 19, 2014. Officers from the RoyalMalaysian Customs Perak and MalaysianInvestment Development Authority (MIDA) briefedthe participants on the requirements, applicationprocedures and the online submission system.The seminar was attended by 62 participantsfrom 38 companies.

• Tax Seminar on the 2015 Budget – the GST Year.Yong Mei Sim, Principal Assistant Director ofthe Inland Revenue Board, Bukit Mertajamhighlighted the Budget 2015 and the taximplications of buying and selling property.The seminar was attended by 62 participantsfrom 44 companies.

• 46th Annual General Meeting of the Branch onOctober 16, 2014 where the following OfficeBearers for 2014/2015 were elected:

Branch Committee ChairmanDato’ Gan Tack Kong, Ngan Yin GroundnutFactory Sdn Bhd

The participants who attended the Step By Step Guide onImplementing GST Seminar

BRANCH EVENTS

Group photograph with Menteri Besar of Perak, Datuk Seri Diraja Dr. Zambry bin Abdul Kadir (front row 3rd from right)at the Branch Annual Dinner

Branch Committee Vice-ChairmenFrancis Chok Yin Fatt, Yee Lee Edible Oils Sdn Bhd

Tan Seow Heng, Sidney Industries Sdn Bhd

Edmund Wong Khin Kong, Asia Printed CircuitSdn Bhd

Chua Kay Lin, Vinico Sdn Bhd

• 46th Annual Dinner on November 3, 2014 withMenteri Besar of Perak, Datuk Seri Diraja Dr. Zambrybin Abdul Kadir as the Guest of Honour. The dinnerwas attended by members and other dignitariesfrom the public and private sectors.


BRANCH EVENTS

Kedah/Perlis


• Workshop on Trade Forms & ApplicationProcedures Updates on October 16, 2014conducted by Lim Chee Hau and AriffatriMohammad from MITI, Kuala Lumpur and FatimahTalip from Dagang Net Technologies Sdn Bhd.The workshop focused on recent changesand updates of trade forms and applicationprocedures and also the Free Trade Agreements.

• FMM Safe Motorcycle Riding Campaign 2014on October 28, 2014 held at MODENAS Gurunwhich attracted a total of 200 participantscomprising employees of MODENAS and nearbyindustries and students from Vocational College

Sungai Petani and Politeknik Sultan Abdul Halim.The campaign also featured events anddemonstrations from Jabatan Pertahan AwamMalaysia, Ministry of Health, Pantai Hospital,Jabatan Pengangkutan Jalan and JabatanKeselamatan Jalan Raya.

• FMM Safety Workshop: ERT & Handling of ChemicalSpillage on November 26 – 27, 2014 which wasconducted by Ramu Govindaraju Fire Fighting Officer,BOMBA Malaysia. The workshop was organised tocreate awareness on Emergency Rescue Teamwhich is responsible for the correct handling ofchemical spillage.

• Karnival Kerjaya SL1M – Kedah on November 11, 2014jointly organised by FMM and Northern CorridorImplementation Authority, Skil Latihan 1 MalaysiaCoordinator, Jobs Malaysia and Unit PerancanganEkonomi Negeri. The carnival was officiated byMenteri Besar Kedah, YB Dato’ Sri Haji MukhrizTun Mahathir.

• Jointly organised a Clean-Up Campaign atBakar Arang Industrial Area on November 8, 2014with State Council and the Malaysian IndustrialDevelopment Authority. Present at the campaignwere YB Dato’ Dr. Ku Abd Rahman Bin Ku Ismail,State Executive Council Industrial & Investmentand Abdul Mukthi Abu Bakar, Director of MIDAKedah/Perlis.

Ramu Govindaraju (left) demonstrated the proper use offire extinguisher

Eastern


• Received a courtesy call from Mej. (K) Dato’ HajiAbu Bakar bin Ahmad, Director of Politeknik SultanHaji Ahmad Shah on October 1, 2014.

• 20th Annual General Meeting of the Branch heldon October 15, 2014 where the following OfficeBearers for 2014/2015 were elected:

Group photograph of the new Office Bearers of the Branch

Branch Committee ChairmanDato’ Haji Mas’ut bin A Samah, Pascorp PaperIndustries Berhad

Branch Committee Vice-ChairmenSherene Lim Shin Wei, BASF PETRONAS ChemicalsSdn Bhd

Ng Ghim Eng, Grandee Biotechnologies Sdn Bhd

Kumar Ramu, Tioxide (Malaysia) Sdn Bhd

Dato’ Haji Lahuree bin Sudiran, W. R. GraceSpecialty Chemicals (Malaysia) Sdn Bhd

• Business Opportunities Networking Session withMIDA Pahang on Tax Exemption ApplicationProcedure on October 30, 2014. A totalof 45 participants attended the programme.

• The 1st Pekan IPMC meeting for 2014 on November 19,2014. The meeting was jointly chaired by YH Dato’Haji Ahmad Salhi bin Abdul Latiff, Pekan DistrictCouncil Chief and the Branch Committee Chairman,Dato’ Haji Mas’ut bin A. Samah.

Johor


• 46th Annual General Meeting of the Branch onOctober 14, 2014 where the following OfficeBearers for 2014 / 2015 were elected:

Branch Committee Chairman Capt. (R) Haji Abdullah ShariffLam Soon Edible Oils Sdn Bhd

Branch Committee Vice-Chairmen Gerard R. SankarTaguchi K. Rubber (M) Sdn Bhd Eiap Eng KhoonOriental Assemblers Sdn BhdSaw Seong HoPanerai Engineering Sdn BhdLim Tau BoonAll Cosmos Industries Sdn Bhd

• The first Branch Committee Meeting of 2014/2015on October 14, 2014 where the committeeapproved the establishment of Nusajaya RegionalCommittee (NRC). The NRC would serve memberslocated in the Nusajaya and Gelang Patah areas.The establishment of NRC would bring FMM closerto these new members and serve them better.

• Dialogue Session between TNB and FMM memberson November 26, 2014. The 32 FMM memberdelegation was led by the Branch CommitteeChairman, Capt (R) Hj Abdullah Shariff. Thedialogue session was chaired by Yusof Ibrahim, theState General Manager of TNB Johor (Distribution).

• Seminar on GST for Manufacturers: A Step by StepGuide of Implementing GST on November 26 and 27,2014. A total of 60 FMM members attended theseminar which was conducted by Wan Leng What,former Senior Deputy Director from the RoyalMalaysian Customs Department.

• Courtesy call on Azhar Omar, Vice President ofTelekom Malaysia Johor on October 9, 2014.The Branch’s delegation was led by the BranchCommittee Chairman, Capt (R) Hj Abdullah Shariff.Issues affecting members such as absence of Unifi,internet stability and programme collaborationwere discussed.

• Participated in the Manufacturing Solution Expo2014 on October 8, 2014 organised by theSingapore Manufacturing Federation (SMF).16 FMM delegates participated in the exhibitionwhich was officiated by S. Iswaran, Minister inPrime Minister’s Office, 2nd Minister for HomeAffairs and 2nd Minister for Trade and Industry. Group photograph of the new Office Bearers of the Branch

Sarawak

The Representative Office’s activities includedthe following:

• Received a courtesy visit from the HighCommissioner of Bangladesh, A.K.M AtiqurRahman on October 20, 2014. Tn. Hj OthmanAbdul Rani, Chairman of the RepresentativeOffice received the delegation.

• Organised two factory visits to CMS Cement Sdn Bhd and KSC Factory Sdn Bhd for Institute’sstudents of the Certificate in Safety and HealthOfficer (CISHO) on November 12, 2014.

• Meeting with the Director of DOSH Sarawak,Ir. Hj. Mohd Hatta Bin Zakaria on November20, 2014 to discuss members’ concern onsafety issues.

Tn. Hj Othman Abdul Rani, (left) receiving a token of appreciationfrom A.K.M. Atiqur Rahman (2nd from right)

BRANCH EVENTS



BRANCH EVENTS

Negeri Sembilan


• Annual Dinner on October 15, 2014 which wasattended by over 300 representatives from publicand private sector companies. The dinner wasgraced by the Menteri Besar of Negeri Sembilan,YAB Dato’ Seri Utama Hj Mohamad bin Hasan.The highlight of the dinner was the presentationof the Long Serving Awards to members and topFMM Institute contributors.

• The Opening Ceremony of the Branch’s newoffice on November 3, 2014 was officiated byFMM President, Dato’ Saw Choo Boon.

• Annual General Meeting of the Branch onNovember 3, 2014 where the following OfficeBearers for 2014/2015 were elected:

Branch Committee ChairmanDatuk Mohamed Arsad, PureCircle Sdn Bhd

Immediate Past Branch Committee ChairmanSteven Aroki, Smane (M) Sdn Bhd

Branch Committee Vice ChairmenPenny Wong, Seremban Engineering BerhadBaskaran Madhavan Nair, Cordage Industrial RopeSdn BhdRadzi Abdul Rashid, Akzo Nobel Paints (M) Sdn BhdAminudin Kamarudin, SKF Bearing Industries (M)Sdn Bhd

FMM President Dato’ Saw Choo Boon, (right) presenting a token ofappreciation to YAB Dato’ Seri Utama Hj Mohamad bin Hasan, Menteri

Besar Negeri Sembilan at the FMM Negeri Sembilan Branch Annual Dinner

Ordinary Members• G-Cast Concrete Sdn Bhd

• George Fischer (M) Sdn Bhd

• GF Technology Sdn Bhd

• HFS Food Solution Sdn Bhd

• Hino Motors Manufacturing Malaysia Sdn Bhd

• Konica Minolta Business Technologies(Malaysia) Sdn Bhd

• Kuka Robot Automation (Malaysia) Sdn Bhd

• Life Water Industries Sdn Bhd

• Makiansia Engineering (M) Sdn Bhd

• Pro Team Interior Sdn Bhd

• Puremeditech Sdn Bhd

Affiliate Members• CCE Maju Holding Sdn Bhd• DNE Forwarding (M) Sdn Bhd• Energy Hallmark Sdn Bhd• Hitachi Asia (Malaysia) Sdn Bhd• OZ Marketing Sdn Bhd

New Members (November 2014)The FMM welcomes the following 22 new members into the organisation – 17 Ordinary Members and

5 Affiliate Members. The majority or 36% are from Selangor, 14% from Federal Territory and 9% from Penang,Perak and Negeri Sembilan, while the rest are from other states

• Sinaran Manufacturing Sdn Bhd• Sirijaya Industries Sdn Bhd• SOP Edible Oils Sdn Bhd• Stekken Sdn Bhd• WIKA Instrumentation (M) Sdn Bhd• YKG Automation Sdn Bhd

BusinessBusiness - FMM JanFeb2015...@FMM BusinessBusiness in in ActionActionKDN NO: PP 16730/08/2012...

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Transcript of BusinessBusiness - FMM JanFeb2015...@FMM BusinessBusiness in in ActionActionKDN NO: PP 16730/08/2012...