MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION AR2017-new.pdf · The Malaysian Plastics Manufacturers...

AN

NU

AL

R

EP

OR

T

20

17

ww

w.

mp

ma

.o

rg

.m

yM

AL

AY

SI

AN

P

LA

ST

IC

S

MA

NU

FA

CT

UR

ER

S

AS

SO

CI

AT

IO

N

M A L A Y S I A N P L A S T I C S M A N U F A C T U R E R S A S S O C I A T I O N

02 Notice of Annual General Meeting

03 Corporate Information

05 President’s Review

11 List of Committees: 2016 – 2018

Contents

20 Report of the Central Committee (From July 2016 to April 2017)

20 Membership of the Association

21 Financial Review

22 Human Resource Development

26 Standards Development

28 Sustainability Activities

35 Government and Industry

40 International Liaison

41 Raw Materials

42 Process Group

43 Report from Branches

48 Plastics Eagle-MPMA

49 MPMA’s Presidents

51 Financial Statements

02 | Malaysian Plastics Manufacturers Association |

Notice of Annual General Meeting

Notice is hereby given that the 50th Annual General Meeting of the Malaysian Plastics Manufacturers Association will be held at 10.00 am on Thursday, 4 May 2017 at the MPMA Conference Hall, MPMA Head Office, 37 Jalan 20/14, Paramount Garden, 46300 Petaling Jaya, Selangor.

AGENDA

1. To confirm the minutes of the last Annual General Meeting held on 28 May 2016.

2. To consider and adopt the Annual Report for the period June 2016 to April 2017.

3. To consider and adopt the audited accounts of the Association for the year 2016.

4. To appoint an external auditor.

5. To review the progress of the following activities:

i) Human Resource Development

ii) Standards Development

iii) Sustainability

iv) Government and Industry

v) International Liaison

6. To receive reports from MPMA Branches:

i) Johor Branch

ii) Northern Branch

iii) Perak Branch

iv) Sabah Branch

v) Sarawak Branch

7. To consider any other matters.

Eddie FongSecretary-General

| Annual Report 2017 | 03

Corporate Information

PROFILE

The Malaysian Plastics Manufacturers Association (MPMA), established in 1967, is a progressive trade association providing leadership and quality service to its members and the plastics industry. MPMA is the official voice of the Malaysian plastics industry, representing its members and the industry in Government interaction, spearheading the plastics industry’s growth and providing the platforms to assist members to be globally competitive.

MPMA currently has about 750 members comprising Ordinary members, which represent about 60 percent of plastics manufacturers in the country and account for 80 percent of the country’s total production of plastics products.

VISION STATEMENT

To be a progressive trade association providing leadership to the plastics industry.

MISSION STATEMENTS

• Weprovidedirectionandleadershiptoupgradetheplasticsindustry through effective government liaison, strategic alliances as well as specialised training and industry studies.

• Wepromote theusageof plasticswithdue care to the

environment and the community.

OBJECTIVES

• Topromotetheuse,manufactureandprocessingofplastics.

• Toprotect,assistandenhancetheinterestofmanufacturersof plastics.

• Toorganiseandprovidevariousmeansoftrainingtohelpupgrade the technological level of the plastics industry.

• To encourage co-operation amongmanufacturers of plastic products, both within and outside Malaysia.

• Togather,analyseandprovidestatisticalandtechnicaldataas well as other information of interest.

• Toprovideaplatformformemberstointeractandtofostercloser rapport among members.

• To co-operate with other trade associations, non-governmental organisations and other bodies of common interest to ensure the healthy growth of the plastics industry.

• TocollaboratewiththeGovernmentinthepromotionoftheplastics industry towards achieving the country’s vision of becoming a developed nation by 2020.

• Topromotethegrowthoftheplasticsindustryandtransformit into a global player taking into cognisance its social responsibility towards the environment and community.

MANAGEMENT

The management of the Association is vested in a Central Committee comprising 17 members that are elected at each alternate Annual General Meeting, four members nominated by the elected Committee and one representative from each of the branches.


Corporate Information

MPMA’S NETWORK

Head Office

Malaysian Plastics Manufacturers Association

37, Jalan 20/14, Paramount Garden

46300 Petaling Jaya, Selangor, Malaysia

Tel : 603-7876 3027

Fax : 603-7876 8352

E-mail : [email protected]

URL : www.mpma.org.my

Johor Branch

2A, Jalan Anggerik 2/4, Taman Anggerik

81200 Johor Bahru, Johor, Malaysia

Tel : 607-558 6558

Fax : 607-557 5855


Northern Branch

40, Jalan Bagan Satu, Taman Bagan

13400 Butterworth, Penang, Malaysia

Tel : 604-333 3936

Fax : 604-333 3942


Perak Branch

15, Medan Istana 3, Bandar Ipoh Raya

30000 Ipoh, Perak, Malaysia

Tel : 605-241 3680

Fax : 605-241 3370


Sabah Branch

c/o Uniang Plastic Industries (Sabah) Sdn Bhd

11.2km, Jalan Tuaran, 89350 Inanam

PO Box 13624, 88841 Kota Kinabalu

Sabah, Malaysia

Tel : 6088-423 881

Fax : 6088-423 880


Sarawak Branch

c/o Elim Industries Sdn Bhd

Lot 1370, Block 12, MTLD

Sama Jaya Free Industrial Zone

93450 Kuching

Sarawak, Malaysia

Tel : 6082-365 075

Fax : 6082-366 475



On behalf of the Central Committee, I am pleased to present

the Annual Report of the Association for the period from June

2016 to April 2017 and the audited accounts for the financial

year ended 31 December 2016.

MPMA’S GOLDEN JuBILEE CELEBRATIONS

2017 marks the 50th Anniversary of MPMA, an important

milestone for a leading trade association in the country.

Over the last 50 years, we witnessed the transformation

of the Malaysian plastics industry, from a backyard cottage

industry to a multi-billion ringgit supporting industry to many

other major sectors, including the electrical and electronics,

food and beverages, construction and automotive sectors.

The Malaysian plastics industry is a major exporting sector

generating huge foreign exchange for the country.

During the course of the 50 years journey, the Malaysian

plastics industry experienced several ups and downs,

witnessed the emergence and exit of several large players

and through all the changes, it is with great pride that the

industry has transformed to be one of the leading suppliers

of reliable and high quality plastic products in this region.

MPMA’s strengths lie in the capable leadership of all our

Honorary Presidents, past Presidents and Committee Members,

supportive members as well as the major raw material suppliers

and business associates.

In this regard, it is with much sadness to inform members that

MrWeeHong Im,MPMAHonoraryPresidentpassedaway

on 11 March 2017. He had been MPMA’s pillar of strength and

support over the past 50 years - his passion in guiding me

and the Committee Members towards seeing MPMA being

recognized as a proactive trade association right to the end

wouldalwaysbefondlyrememberedandtreasured.Wewould

also cherish the wonderful memories of him within our hearts

and once again offer our heartfelt condolences to the family

ofMrWeeHongIm.

To commemorate MPMA’s 50 year history, we would be

publishing the MPMA Golden Jubilee Coffee Table Book

which is sponsored by Mr Callum Chen, MPMA Honorary

President’s Review


President. This Coffee Table Book would be launched during

our 50th Golden Jubilee Dinner on 8 July 2017. For this, I must

especiallysalutethelateMrWeeHongIm,whohadspenthis

final moments providing details to complete the Book despite

his health conditions.

GLOBAL AND MALAySIAN ECONOMy

In 2016, the world economy recorded the lowest growth rate

since the Global Financial Crisis. Global trade continued to

moderatereflectingtheweaknessineconomicactivity.With

the exception of some Asian economies, growth was slower

in most advanced and emerging economies. The Malaysian

economy recorded a growth of 4.2% in 2016 compared to

5.0% in 2015 despite considerable external and domestic

headwinds.

Global economic activity is projected to improve in 2017,

underpinned by an expansion in domestic demand in the

advancedandemergingmarketeconomies.Withthegradual

improvement in global growth, recovery in global commodity

prices and the continued growth of domestic demand

are expected to collectively support Malaysia’s growth

performance. The Malaysian economy is projected to register

a sustained growth of 4.3% to 4.8% in 2017 (Bank Negara

Annual Report 2016).

PERFORMANCE OF THE PLASTICS INDuSTRy

The plastics industry registered a total sales of RM27.32 billion

for 2016, representing an increase of 10.3% from RM24.77

billion for 2015. Exports increased marginally by 1.14% from

RM12.96 billion for 2015 to RM13.12 billion for 2016. Domestic

sales increased substantially by 20.3% from RM11.81 billion to

RM14.21 billion. However, it is pertinent to note that the sales

recorded in 2016 and 2015 are strictly not comparable as

there was a revised method of compilation adopted by the

Department of Statistics.

Moving forward, the plastics industry would face challenges

in managing rising costs, particularly the cost of labour, the

difficulties associated with employing foreign workers, levy to

President’s Review

be borne by the employers, higher energy cost due to removal

of subsidies, increasing negative perception on plastics

packaging materials as well as the relocation of multi-national

companies from Malaysia to other countries.

MEETING THE CHALLENGES OF 2016 – 2017

The major issues faced by the plastics industry during the

period under review were labour issues, including the freeze

in the intake of new foreign workers, proposed change in

payment of foreign workers levy from being borne by workers

to employers and the ban of certain types of plastic products

imposed by several State Governments and City Councils.

Members who had attended the MPMA Roadshows in 2017

were informed of MPMA’s numerous meetings, joint proposals

with other trade associations and correspondences to the

Government on these issues.

FREEzE IN THE INTAKE OF NEW FOREIGN WORKERS

Subsequent to the announcement by the Government to

freeze the intake of new foreign workers in March 2016, MPMA

together with the Associated Chinese Chamber of Commerce

and Industry Malaysia (ACCCIM), Federation of Malaysian

Manufacturers (FMM) and the Malaysian Employers Federation

(MEF), had led the discussions between trade associations and

Government on this issue. After rounds of discussions and

submissions of several memoranda/proposals, our efforts had

finally paid off. In February 2017, the Government announced

the re-opening of new foreign workers intake from 15 source

countries. Employers can also now apply for the conversion

of illegal foreign workers to be legally employed through the

Re-hiring Programme.

EMPLOyER MANDATORy COMMITMENT (EMC)

On 31 December 2016, the Government announced that

the Employer Mandatory Commitment (EMC) would be

implemented effective 1 January 2017, whereby, inter alia,

employers are required to pay the levy of the foreign workers

employed as well as bear certain responsibilities over the


employment of these workers. All employers were appalled

and taken aback by the sudden implementation of the EMC and

the change of policy pertaining to the foreign workers levy. The

trade associations met again, and submitted several proposals

to the Government. On 11 January 2017, the Government finally

agreed that levy payment for foreign workers by employers

under EMC be deferred to January 2018.

MANAGING MANPOWER ISSuES WITH TALENT DEVELOPMENT

On skills upgrading, it should be noted that the Malaysian

plastics industry is a technologically intensive industry, due to

its efforts to increase economies of scale and reduce labour

costs, which have prompted the introduction of increasingly

technical and complex manufacturing processes. Customer

demands for higher quality, greater variety and lower costs

have likewise placed pressure on plastics manufacturers to

improve efficiency. These multiple pressures have created the

need for a skilled workforce in the plastics industry.

Companies that have benefited from trained employees can

expect to meet higher quality standards and remain cost

effective and this will enable the Malaysian plastics industry

to compete effectively in global markets through high quality

“product differentiation” instead of merely low cost “price

differentiation”.

ACTIONS AGAINST PS AND PLASTIC BAGS

During the period in review, more states had introduced bans

on polystyrene (PS) food packaging boxes (‘ta pau’ boxes)

and plastic bags. Some of the reasons cited for the bans were

unfounded concerns over the safety of PS; public littering of PS

and plastic bags; and that PS and plastic bags do not degrade.

In this regard, MPMA had issued statements to the media and

had also met with several Government agencies to explain on

the safety of PS and plastic bags. MPMA also supported the

Government’s waste separation at source (SAS) initiative and

had introduced eco-ranger programmes as part of its public

programmes, which highlight to students and the public on

proper waste management. For the record, it was highlighted

in the media that the SAS does indeed result in reducing waste

going to landfill.

Despite MPMA’s efforts, states such as Federal Territory and

Selangor had gone ahead to introduce bio-packaging food

containers and compelling traders to use these bio packaging

as replacements for ‘ta pau’ boxes. The net effect of this move

is that the new packaging introduced by the respective states

does not reduce litter, and traders are passing the additional

cost of these alternativepackaging to thepublic.Whilst it

should be noted that MPMA supports new plastic products

such as biodegradable products, this should not come at the

expense of the public or traditional plastic products.

MOVING FORWARD

After two years of turbulence, the world crude oil market is

stabilising and prices appear to be recovering. This would

augur well for the ringgit and our economy. Both the business

sectors and consumers are also adjusting and adapting to

the Goods and Services Tax (GST) system which had initially

affected their sentiments. Against this background, we are

cautiously optimistic of a recovery in the domestic market.

Withthehugeimpactoftheinternetthatallowsconsumersall

over the world to compare and source for better performance

and competitive pricing products, it is critical that Members

must transform, adapt and adopt by continuing to focus on

new product development, advanced materials, advanced

technology and skills upgrading to develop niche products at

competitive prices.

Datuk Lim Kok Boon

MPMA President


会长回顾

我很高兴能代表中央理事会提呈本会2016年6月至2017年4月

的年度报告，以及截至2016年12月31日财政年度的经审计

帐目。

MPMA欢庆五十周年金禧年

作为国家领先贸易协会之一公会，本会在2017年迈入了五十

周年的一个重要里程碑。在过去的五十年，我们见证了马来

西亚塑胶业从家庭手工业逐步成长为数百亿的行业，并且支

援着其它主要行业如电气电子、食品饮料、建筑业和汽车行

业。如今，马来西亚塑胶业的出口领域是国家的主要外汇收

入之一。

在这五十年的漫长征途中，马来西亚塑胶业经历了重重波

折，也目睹了在多次变动中各大型企业的兴起和消失。但，

让人感到欣慰的是，马来西亚塑胶业凭着可靠和优质的塑料

制品成为了这个地区的领先行业之一。我们的名誉会长和前

任会长的领导能力，以及理事成员、提供支援的会员、主要

的原料供应商和业务伙伴都是MPMA最强的后盾。

在这里，我怀着沉重的心情通知会员们，本会名誉会长黄宏

荫先生已于2017年3月11日离开了我们。他在过去五十年一

直是MPMA的中流砥柱，我们会永远记住他曾经以热情带领着

我和理事会让MPMA成为一个积极主动的贸易公会。与他一起

创造的美好回忆将会永远留在我们的心中，我们向黄宏荫先

生的家属再次致以诚挚的哀悼。

为了纪念MPMA五十周年金禧年，我们的名誉会长曾国成先生

将赞助出版MPMA五十周年金禧纪念特辑。这特辑将在2017年

7月8日的五十周年晚宴上与大家见面。这本特辑也是黄宏荫

先生在最后的时光，即使身体状况不理想的情况下仍然坚持

提供细节完成的，为此我必须特别向已故的黄宏荫先生献上

深厚敬意。

全球及马来西亚经济

2016年的世界经济是自全球金融危机以来最低的增长率。全

球交易也因经济活动的疲弱继续放缓。除了部分亚洲经济体

以外，大部分的先进和新兴经济体的增长都较缓慢。马来西

亚2016年的经济成长率为4.2%，比面对内外不利因素的2015

年的5.0%更低一些。

在2017年，全球经济活动将得益于先进和新兴市场经济体需

求的增大而有所改善。随着全球经济的逐渐改善，全球商品

价格的回升及国内需求的持续增长将有望对马来西亚的经济

增长表现作出贡献。马来西亚经济预计在2017年将有4.3％

至4.8％的持续增长（国家银行2016年度报告）。

塑胶业表现

塑胶行业的2016年销售额达273.2亿令吉，比2015年的247.7

亿令吉增长10.3％。出口额由2015年的129.6亿令吉增长

1.14% 达131.2亿令吉。而国内销售额由118.1亿令吉大幅

上升20.3％达142.1亿令吉。然而，必须注意的是2016年和

2015年的销售额不能直接比较，因为统计局采用了修订的统

计方法。

塑胶业的前景在日益上涨的成本管理方面将面临多重挑战，

特别是劳动成本、聘雇外籍劳工的各种难题、雇主须承担的

课税、补贴取消后所导致的更高能源成本、社会大众对塑料

包装的负面认知以及跨国公司从马来西亚搬迁到其他国家。


2016至2017年面对的各种挑战

塑胶业在回顾期间中面对的一大难题就是劳工课题，包括冻

结聘雇新外籍劳工、外籍劳工税改由雇主承担，以及数州政

府和市议会禁止采用特定的塑料包装品。曾经出席2017 本会

会长讲座的会员们都了解，针对这些劳工课题，本会已开过

无数的会议，并与其他公会向政府提呈了联合建议和信件。

冻结聘雇新外籍劳工

政府在2016年3月宣布冻结聘雇新外籍劳工后，MPMA

与中华工商总会(Asso c i a t e d C h i n e s e C h a m b e r

of Commerce and Industry Malaysia，ACCCIM)、

马来西亚制造业协会（Federation of Malaysian

Manufacturers，FMM）和马来西亚雇主联合会（Malaysian

Employers Federation, MEF）连同多个领域的贸易协会及

政府一同商讨这个课题。经过了多次讨论及多次提呈备忘录/

建议之后，我们的努力终于得到了回报。政府在2017年2月

宣布对15个国家重新开放聘雇新外籍劳工。雇主如今也能通

过重新雇用计划为非法外籍劳工转为合法雇用的外籍劳工。

雇主强制承诺条列 (Employer Mandatory Commitment, EMC)

政府于2016年12月31日宣布，雇主强制承诺条列（Employer

Mandatory Commitment，EMC）将于2017年1月1日起实施，

此外，雇主必须支付受雇外籍劳工的课税以及对这些外籍劳

工承担一定的责任。所有雇主对EMC的突然实施以及外籍劳

工课税政策有关的变更无不感到震惊。贸易协会不得不再相

聚一起向政府提呈多个建议。在2017年1月11日，政府终于

同意将雇主在EMC政策下所需支付的课税延期至2018年1月。


会长回顾

通过人才发展处理人力资源问题

在技能加强方面，马来西亚塑胶业本身就是一种需要各种技术

的行业，由于其努力提高经济规模和降低劳动力成本，因此引

发了越来越多复杂的技术化制造过程。客户对更高的质量、多

样化、更低的成本的要求对塑胶制造商施加了压力，也提高了

效率。多方面的压力也激起了塑胶行业对技术人员的需求。

因受过培训的员工而受益的公司可以期望达到更高的质量标

准，并保持成本效益。这将使马来西亚塑胶行业能够通过高

品质的“产品差异化”，而不仅仅是以低成本的“价格差异

化”成为全球市场上有力的竞争者。

拒绝保丽龙 (PS) 和塑料袋行动

在回顾期间，更多州陆续引入了停止使用聚苯乙烯（PS，俗

称保丽龙）食品包装盒和塑料袋的禁令。而引用禁令的一些

原因是对PS的安全性毫无根据的担忧，例如公众乱抛PS和塑

料袋垃圾，以及 PS和塑料袋无法降解。有鉴于此，本会向媒

体发表了声明，并会见了几个政府机构，就PS和塑料袋的安全

性进行了解释。同时，本会也支持政府的废物分类（SAS）计

划，并引入了生态环保计划作为其公共计划的一部分，向学生

和公众强调正确的废物管理。作为记录，在媒体中也强调了废

物分类计划确实减少了进入垃圾填埋场的垃圾量。

尽管本会不断地努力，联邦直辖区和雪兰莪等州已经先一步

引进了生物包装食品容器，以及鼓励受瞩目的贸易商以这些

生物包装代替“打包”盒。这一举措的最终效果是各州各自

引进的新包装对减少垃圾没有带来益处，而贸易商却把这些

替代品的额外费用加到公众身上。需要说明的是，本会支持

新塑料制品，如可生物降解的产品，但这并不表示应该牺牲

公共或传统的塑料制品。

展望未来

经过两年的动荡，世界原油市场正在稳定下来，而价格也似

乎在回升。这对令吉和我们的经济来说是一个好的预兆。商

业部门和消费者也同时对最初影响他们情绪的消费税（GST）

制度进行调整和适应。在这种背景下，我们对国内市场的复苏

保持谨慎及乐观的态度。

随着互联网带来的巨大影响，世界各地的消费者能够比较并

获取更好性能和有竞争力的定价产品。因此，会员必须通过

继续关注新产品开发、先进材料、先进技术和技能升级进行

转变、适应并采纳，以开发价格具有有竞争力的独特产品。

马来西亚塑胶厂商工会会长

拿督林国文


CENTRAL COMMITTEE

President

Datuk Lim Kok Boon (EXCO Member)

Scientex Great Wall Sdn Bhd

Honorary Presidents

MrWeeHongIm(thelate)

(EXCO Member)

Chong Wah Plastics Sdn Bhd

Dato’ Liew Sew Yee (EXCO Member)

Thong Fook Corporation Sdn Bhd

Mr Callum Chen (EXCO Member)

LH Plus Sdn Bhd

Vice-Presidents

Datuk Noraini S Talib (EXCO Member)

Sipro Plastic Industries Sdn Bhd

Dato’ Raymond Sng (EXCO Member)

Plastic Centre Sdn Bhd

Mr CC Cheah (EXCO Member)

See Hau Global Sdn Bhd

Secretary-General

Mr Eddie Fong (EXCO Member)

Plasform Sdn Bhd

Assistant Secretary-General

Tn Hj Mohd Fitri Mohd Aris

(EXCO Member)

Azman Hamzah Plastik Sdn Bhd

Treasurer

Mr Tan Cheow Ho (EXCO Member)

Lam Seng Plastics Industries Sdn Bhd

Internal Auditor

Mr Liew Yew Aw (EXCO Member)

Polyparts Sdn Bhd

Public Relations Officer

Mr Chow Chee Yut (EXCO Member)

Combi-Pack Sdn Bhd

Welfare & Membership

Ms Ng Peg Shi (EXCO Member)

Plastik V Sdn Bhd

Committee Members

Mr Tan Tin Nam

Everyday Brush Industries (M) Sdn Bhd

Mr FK Lee

Mah Sing Plastics Industries Sdn Bhd

Mr Leong Peng Kong

May-Plastics Manufacturers Sdn Bhd

Mr SH Choo

Scientex Packaging Film Sdn Bhd

Mr Ivan Tan

Sekoplas Industries Sdn Bhd

Mr Hue Kon Fah

Top Glove Sdn Bhd

Mr Yeon Kok Kuang

Triplus Industry Sdn Bhd

Chairman, Johor Branch

Mr Tang Hong Koon

Various Resources (M) Sdn Bhd

Chairman, Northern Branch

Mr Alvin Ang See Ming

Thong Guan Plastic & Paper Industries

Sdn Bhd

Chairman, Perak Branch

Mr Johnson Phoon

Alphaplas Industries Sdn Bhd

Chairman, Sabah Branch

Datuk Alan Ang

Uniang Plastic Industries (Sabah)

Sdn Bhd

Chairman, Sarawak Branch

Mr George Lee He Liong

Elim Industries Sdn Bhd

List of Committees: 2016 – 2018


PROJECT GROuP COMMITTEES

1. DESIGN AND BRANDING

1.1 Malaysian Plastics Design

Centre (MPDC)

Mr Callum Chen – Chairman

LH Plus Sdn Bhd

Datuk Lim Kok Boon




Tn Hj Mohd Fitri Bin Md Aris


Mr Seow Thong Seng


Mr Goh Boon King

Guppy Plastic Industries Sdn Bhd

Mr Tan Tin Nam


Ms Giam Siew Tho

MPMA Secretariat

2. HuMAN RESOuRCE

MANAGEMENT AND

DEVELOPMENT

2.1 MPMA-Plastics Technology

Training Centre Management

Committee

Mr Eddie Fong – Chairman

Plasform Sdn Bhd


Mr SH Lai – Vice-Chairman

Lotte Chemical Titan (M) Sdn Bhd

En Zamri M Said – Vice-Chairman /

Chairman, MPMA-PTTC Selangor

Petronas Chemicals Group Bhd

Mr Tan Cheow Ho – Treasurer


Mr Cheong Peng Khuan – Chairman,

MPMA-PTTC Johor


Mr Tan Gim Chaw – Chairman, MPMA-

PTTC Northern

Toray Plastics (M) Sdn Bhd

En Zamri M Said – Chairman, MPMA-

PTTC Selangor


Tn Hj Mohd Fitri Md Aris


MsWeeChingYun


Mr Goh Boon King


Mr Callum Chen

LH Plus Sdn Bhd

Mr FK Lee

Mah Sing Plastics Industry Sdn Bhd

Ms Ng Peg Shi

Plastik V Sdn Bhd

Mr Yeon Kok Kuang

Triplus Industries Sdn Bhd

3. STANDARDS DEVELOPMENT

3.1 Internal Committee of the

MPMA-Standards Development

Agency (MPMA-SDA)

Datuk Noraini Soltan Talib – Chairman


MsWeeChingYun


Mr Tan Cheow Ho


Ms ST Giam

MPMA Secretariat

Ms Sujata Albert

MPMA Secretariat

Mr SC Chan

MPMA Secretariat

Ms Savitha Prabhakaradas

MPMA Secretariat

Ms Jackie Lam Pui Lean

MPMA Secretariat

3.2 Industry Standards Committee

on Plastics and Plastics Products

(ISC-J)

Tn Hj Ahmad Khairuddin Sha’aban –

Chairman

Malaysian Plastics Forum

En Mohd Shafiq Mohd Zakaria

Department of Standards Malaysia

Mr Lai Seng Heng

Federation of Malaysian

Manufacturers

En Burhanuddin Bin Abdul Rahman

Jabatan Kerja Raya Malaysia


Ms Calidya Idem

Malaysian Association of Standards

Users

Prof Dr Ho Chee Cheong

Malaysian Institute of Chemistry

Dr Loo Koi Sang

Malaysian Plastics Manufacturers

Association

Dr Mohamad Asri Ahmad

Malaysian Rubber Board

Pn Hasliza Khasim

Ministry of Domestic Trade, Co-

operatives and Consumerism

Mr Voon Kok How

Ministry of Health Malaysia

En Mohd Khairi Mohd Hanafiah

Ministry of International Trade and

Industry

Dr Ahmad Fuad Md Yusuf

SIRIM QAS International Sdn Bhd

PnWanNorisahWanAwang


(Product Certification and Inspection

Department)

Ir Dr Tan Chee Fai

The Institution of Engineers, Malaysia

En Muzafar Zulkifli

The Plastics and Rubber Institute of

Malaysia

Prof Zainal Ariffin Mohd Ishak

Universiti Sains Malaysia

Assoc Prof Hanizam Sulaiman

Universiti Teknologi Malaysia

3.3 Technical Committee 1 (TC1) –

General Methods of Test for Plastics

Dr Ahmad Fuad Md Yusuf – Chairman


Cik Zahara Husain

Hicom-Teck See Manufacturing

Sdn Bhd

En Mohamad Akhir Abdullah

IKRAM QA Services Sdn Bhd

Dr Chan Boon Lye


En Mohamad Firdaus Abu Bakar


Mr Ng Kian Lin

Piping Technology Sdn Bhd

En Muzafar Zulkifli

The Plastics and Rubber Institute of

Malaysia

Mr Teh Sun Kiang




3.4 Technical Committee 2 (TC2) –

Plastics Pipes and Fittings

Ir V Subramaniam – Chairman

Syarikat Bekalan Air Selangor

Sdn Bhd

Mr Amos Yeo

George Fischer (M) Sdn Bhd

Ms Chan Ai Ling

Paling Industries Sdn Bhd

Mr Mak Kok Yun

Perbadanan Bekalan Air Pulau Pinang

Sdn Bhd

En Umat Lokman Ahmad Johari


En Zamri Bin Mohd Said

Petronas Chemical Group Bhd

Mr Ng Kian Lin


En Mohd Fauzi

SAJ Holdings Sdn Bhd

En Azizan Aziz

SIRIM Berhad




Department)

EnWaheedirBinYahaya


(Testing Services Department)

Mr Chow Kin Liung

Suruhanjaya Perkhidmatan Air

Negara

Datuk Ir Ahmad Nordeen Mohd Salleh


Assoc Prof Dr Norhamidi Muhamad

UKM Pakarunding Sdn Bhd

3.5 Working Groups Formed under

TC2

3.5.1 Working Group 2 on PVC

Pipes and Fittings

En Azamy Abdul Aziz – Chairman


Negara


Mr Ong Yoong Keong

Bina Plastic Industries Sdn Bhd

Mr Ong Kok Cheng

Chin Lean Plastic Factory Sdn Bhd

En Munauwir Basri

Lembaga Air Perak

Ms Chan Ai Ling


En Mohd Fauzi

SAJ Holdings Sdn Bhd

EnWaheedirBinYahaya


(Testing Services Department – Civil

and Construction Section)




Department)

3.5.2 Working Group 5 on ABS

Pipes & Fittings

En Azamy Abdul Aziz – Chairman


Negara

Ir AH Ung

Azeeta Pipe System Sdn Bhd

Mr Ong Yoong Keong


MrWilliamWong

Bute Engineering (M) Sdn Bhd

Mr Loh Chun Hong

Cipli Industries Sdn Bhd

MrTnehWahKeang

Euratech (M) Sdn Bhd


Mr Amos Yeo


IrHjWanAmilAbasWanOmar

Lembaga Air Perak

Mr Mak Kok Yun


EnWaheedirYahaya




Ir Yau Ho Hu


Sdn Bhd

3.5.3 Working Group 9 on

Multilayer Pipes

En Munauwir Basri – Chairman

Lembaga Air Perak

Ir Rokiah Binti Salem /

En Azmi Bin Hj Hashim

Jabatan Kerja Raya

Mr Moses Joseph

Lembaga Air Kuching

MsWangChooPing

Malayan Electro-Chemical Industry Co

Sdn Bhd

Mr George Choong /

Mr Pang Chee Chai

ME-PLAS (M) Sdn Bhd

En Mohd Aziz Jaafar


En Jalaini Bin Jasman

Pengurusan Air Pahang Bhd




Department)

EnWaheedirBinYahaya



En Azamy Abdul Aziz


Negara

Tn Hj Razak Bin Lajis

Syarikat Air Negeri Sembilan Sdn Bhd

Ms Roowina Merican / Ir Yau Ho Hu


Sdn Bhd

Ir Dr Tan Chee Fai


Assoc Prof Dr Aznizam Abu Bakar


3.6 Technical Committee 3 (TC 3) –

Plastic Products

Dr Loo Koi Sang – Chairman


MrJCBhandari–Chairman,WG3

Ahmad Edar Sdn Bhd

Dato’ Dr Zahrah A Kadir

B & Z Plastic Industry Sdn Bhd

Mr Goh Boon King


DrDzuraidahAbdWahab

Jabatan Kejuruteraan Mekanik dan

Bahan, UKM


En Mohd Noor Bidin

Jabatan Pengairan dan Saliran

Malaysia

En Mohd Noor Bin Sallehudin –

Chairman,WG5


Dr Ir Loke Kean Hooi –

Chairman,WG6


Mr Hong Boon Khiam


Ms Calidya Idem

Malaysian Association of Standards

Users

Dr Koh Kar Chai

Persatuan Perubatan Malaysia

En Zamri Bin Mohd Said –

Chairman,WG1

PETRONAS Chemical Group Bhd



3.7 Working Groups formed under

TC3

3.7.1 Working Group 1 on Blow

Moulding

En Zamri Bin Mohd Said – Chairman


Mr Lee Yeo Ngie

K-Plastics Industries Sdn Bhd

En Mohd Noor Bin Sallehudin


Mr Kaarthik Gunaseelan


Dr Loo Koi Sang

Superace (M) Sdn Bhd

Ms Betty Chew

Taiko Drum Industries Sdn Bhd

Ms Catherine Lim

Takaso Rubber Products Sdn Bhd

MrDannielWoon

Today’s Plastics Industry Sdn Bhd

3.7.2 Working Group 4 on Plastic

Sheet and Extrusion



Mr YL Pang

Advanced Packaging Tech (M) Bhd

MsWeeChingYun


En Jamari A Ghafar

CTRM Aero Composites Sdn Bhd

Cik Hazlinda Binti Yaakob /

En Mohd Bin Hashim

Daibochi Plastic & Packaging Industry

Bhd

Ms Danielle Lee

Dow Chemical (Malaysia) Sdn Bhd

Dr Mohamed Nor Mohd Yusuff

Forest Research Institute Malaysia

Mr Hong Boon Khiam


Ms Koh Siew Ching

Malaysia Packaging Industry Bhd

En Izwan Hadi


Mr Chuan Teik Boon

Tomypak Bhd

Mr Mark Chan

Toyo Plastics (M) Sdn Bhd

ProfDato’WanMdZinWanYunus

Universiti Pertahanan Nasional

Malaysia

Mr Tan Kim Chuan

WPC Corporation

3.7.3 Working Group 5 on Injection

Moulding

En Mohd Noor Bin Sallehudin –

Chairman


En Noramiza Mohd


Mr Seow Thong Seng /

MrWoonCheeYoong

Everyday Brush Industry Sdn Bhd

Mr BK Goh / En Mohd Hafiz Yacob


MrWongDuenYuen

Mah Sing Plastics Industry Sdn Bhd

En Ishak Bin Zainal Abidin /

Mr Kaarthik


Mr Ng Kian Lin


Mr Alex Gan / Mr SC Tan

Plastictecnic (M) Sdn Bhd

Dr Loo Koi Sang




3.7.4 Joint Working Group (WG 2,

3 & 6)



En Jamari A.Ghafar

CTRM Aero Composites Sdn Bhd



Mr Chan Chin Boon

Mega Geoproducts and Services

Sdn Bhd

Dr Ir Loke Kean Hooi –

Chairman,WG6


ProfDrWanMdZinWanYunus


Malaysia

Prof Dr Fauziah Ahmad

University Sains Malaysia

Mr Tan Kim Chuan

WPC Corporation


Woven/Non-Woven Plastics &

Geosynthetics

Dr Ir Loke Kean Hooi – Chairman


Mr Chan Chin Boon

Mega Geoproducts and Services

Sdn Bhd

Mr Tan Kum Loom

Oriental Sheet Piling Malaysia

Prof Dr Fauziah Ahmad

University Sains Malaysia

3.7.6 Working Group 7 on Polymeric

Adhesives





Pn Rafizah Mansor

Malayan Adhesives & Chemical

Sdn Bhd

Pn Roslinda Idris

Malaysian Timber Industry Board

Prof Dr Rusli Daik

Universiti Kebangsaan Malaysia



Malaysia

Prof Dr Paridah Mohd Tahir

Universiti Putra Malaysia

Dr Nor Yuziah Mohd Yunus

Universiti Teknologi MARA


Thermosetting Materials





Prof Dr Rusli Daik

Universiti Kebangsaan Malaysia



Malaysia

Prof Dr Mansor Ahmad


Assoc Prof Dr Chan Chin Han


Dr Nor Yuziah Mohd Yunus


3.8 Technical Committee 4 (TC

4) – General and Raw Materials for

Plastics

Tn Hj Ahmad Khairuddin Sha’aban –

Chairman

Malaysian Plastics Forum

Ms Danielle Lee

Dow Chemical (Malaysia) Sdn Bhd

Mr Lai Seng Heng


MsWangChooPing

Malayan Electro-Chemical Industry Co

Sdn Bhd (MECI)

En Rozaidi Mohamad


Mr Ng Kian Lin




Mr Teh Sun Kiang


Assoc Prof Dr Chan Chin Han


En Helmee Mat Jenan

Vinyl Chloride (Malaysia) Sdn Bhd


3.9 Technical Committee 5 (TC 5) –

Plastics Tanks

Assoc Prof Hanizam Sulaiman –

Chairman


Mr H C Kew

BNH Manufacturer Sdn Bhd

Mr Chee Lin Loong

CP Powders Sdn Bhd

Mr Koh Tat Chuan

ICO Polymers (M) Sdn Bhd

Mr Hong Boon Khiam


Mr Ong Kian Min

Loyal Impact (M) Sdn Bhd

MrChiaWyeKhang

Nylex (Malaysia) Berhad

Mr Mak Kok Yun


Sdn Bhd

En Zamri Bin Mohd Said


En Zaini Husain

Resintech Plastics (M) Sdn Bhd

En Nor Azlan Mohd Ramli

SIRIM Berhad




Department)

EnWaheedirBinYahaya



Mr Chuah Seong Yaw

Spirolite (M) Sdn Bhd

Mr Chow Kin Liung


Negara

Ir Yau Ho Hu


Sdn Bhd

ProfDato’DrWanMdZinWanYunus


Malaysia

Dr Mohd Roshdi Hassan


Mr John Liew

Weida Integrated Industries Sdn Bhd

Mr Tan Soon Huat

YT Fiberglass Industries Sdn Bhd

3.9.1 WG on FRP Panel Tank

Mr Tan Eng Huat – Chairman

Pipeco Sdn Bhd

Mr Chik Chee Kong

Anchor-Link Sdn Bhd

Mr Tay Choi Guan

AYS Metal Products & Engineering

Sdn Bhd

Mr Peter Low

Potaglas Tank Sdn Bhd

Mr Kenny Chee

Reliance Pacific Tanks Sdn Bhd

Mr Tan Soon Huat

YT Fiberglass Industries Sdn Bhd

4. SuSTAINABILITy

4.1 Malaysian Plastics Forum

Datuk Lim Kok Boon – Chairman


Tn Hj Ahmad Khairuddin Sha’aban

– Chairman, Education and Awareness

Committee

4.2 Recyclers Sub-Committee

Mr CC Cheah – Chairman

See Hau Global Sdn Bhd

Mr Song Eu Chai

Chuan Weng Plastic Sdn Bhd

Mr Seah Kian Hoe

Heng Hiap Industries Sdn Bhd

Mr Lawrence Ong

Idealpoly Plastic Industries Sdn Bhd

Ms May Teo

Karich Sdn Bhd

Mr Vill Chew

Perusahaan Chew Hur Sdn Bhd

MrWBTan

Plasticycle Industries Sdn Bhd

Mr Yap Koon Fatt

YB Enterprise Sdn Bhd

4.3 Polystyrene (PS) Sub-

Committee

Mr Sri Umeswaran – Chairman

Green Concept Technology Sdn Bhd

Ms Angela Foo – Vice-Chairman

Logomas Packaging Sdn Bhd



MsIreneWong

Megafoam Containers Enterprise

Sdn Bhd

Mr Kelvin Siew King Siew /

Mr Teo Yee Hui

Panagawa Sdn Bhd

Mr Lai Cheng Chien

Shangwei Industries Sdn Bhd

Mr Jeffrey Tan

TLG Packaging Sdn Bhd

Ms Hedy Yong / Mr Peter Yong

Tycoplas Sdn Bhd

Ms Tan Siang Ling

YS Foam Industries Sdn Bhd

Mr Ow Qin Bin

Zhaori Packaging Industries (M)

Sdn Bhd

5. MEMBERSHIP

5.1 Membership Services Sub-

Committee (Head Office)

Ms Ng Peg Shi – Chairman

Plastik V Sdn Bhd

Mr Tang Hong Koon – Chairman,

Johor Branch / Membership Sub-

Committee

Various Resources (M) Sdn Bhd

Mr Alvin Ang – Chairman, Northern

Branch / Membership Sub-Committee

Thong Huat Plastic & Paper Industry

Sdn Bhd

Mr Eddie Shun – Chairman, Perak


Top Plastics Industry Sdn Bhd

Datuk Alan Ang Poon Seong

– Chairman, Sabah Branch /

Membership Sub-Committee

Uniang Plastic Industries (Sabah)

Sdn Bhd

Mr George Lee – Chairman, Sarawak


Elim Industries Sdn Bhd

Mr Tan Cheow Ho


7. INTERNATIONAL LIAISON

Mr Callum Chen – Chairman

LH Plus Sdn Bhd

Mr CY Chow

Combi-Pack Sdn Bhd

Mr Tan Cheow Ho


Mr YA Liew

Polyparts Sdn Bhd

Datuk Noraini S Talib


8. PROCESS GROuP

8.1 PE Pipes and Fittings Sub-

Committee

En Anuar Shukry Bin Ismail – Chairman

MRPI Pipes Sdn Bhd

Mr Seow Kok Hooi

AWT Fusion Group Bhd

Mr Ong Yoong Keong /

Mr Ong Yoong Han


Mr Kum Hoong Lou

Borouge Pte Ltd

Mr Ng Chong Lim

Cew Sin Plastic Pipe Sdn Bhd

Mr Ong Kok Cheng


Mr Lou Chun Heng / Ms Loh Chun Hee

Cipli Industries Sdn Bhd

En Muhammed Khalaf

Dure-Mine Sdn Bhd

MrAmosYeo/MrDavidWong


Mr Hong Boon Khiam


Tn Hj Ruzlan

MRPI Pipes Sdn Bhd

MrWongLyeSeng–Honorary

Member


Mr Sun Nan Ping

Polyflow Pipes Sdn Bhd

Tengku Ivan Mansur /

En Ismandi Hj Hussain

Polyolefins Pipe Bhd

MsEsterWong/MrTanSuYerk

Polyware Sdn Bhd

Mr Teh Leng Kang

Resintech Plastics (M) Sdn Bhd

PnWanNorisahWanAwang/

En Roslan Bin Azizan



Department)


MrNgaiCheeWhye

Spind Malaysia Sdn Bhd

Mr Lau Kee Hong /

Mr Tan Chee Leong

Spirolite (M) Sdn Bhd

Cik Nurolaswaniza

Tegas Venture Sdn Bhd

Mr Joseph Hoh / Ms Tracy Hoh /

Ms Natalie

Timplas Industries (M) Sdn Bhd

Mr John Liew

Weida Integrated Industries Sdn Bhd

Mr Alfred Pui

Weidasar Sdn Bhd

Mr Lionel Pereira

Welda System Sdn Bhd

8.2 PVC Pipes and Profiles Sub-

Committee

Mr Ong Kok Cheng – Chairman


Mr Hum See Beng /

Mr Vincent Pang Chun Ming

Arensi Marley (M) Sdn Bhd

Mr Ong Yoong Keong /

Mr Ong Yoong Han


Mr Ng Choong Lim

Cew Sin Plastic Pipe Sdn Bhd

MrChimWengYew

Hup Soon Plastic Industrial Sdn Bhd

Mr Leow Teow Hong

Industrial Resins (Malaysia) Bhd

MrYongWeiChong

Lock & Key Hardware Sdn Bhd

Mr Eric Ng / Ms Peggy Lee

MECI Co Sdn Bhd

Mr Tan Lay Kian

Milnes Technoplas Sdn Bhd

MrJimmyKeok/MrNgKokWeng

Nulogictec Industries Sdn Bhd

Mr Didier Carriere /

En Mohd Aziz Jaafar


En Umat Lokman /

En Hazemi Mohamad


MrTaiCheWan/MsJessyAngSneau

South Asia Fibre Industries Sdn Bhd

Mr Joseph Hoh / Mr Rendy Chong /

Ms Tracy Hoh

Timplas Industries (M) Sdn Bhd

En Zakry Mohd Iwaz

Zer Plastic Sdn Bhd

8.3 FRP Panel Tank Manufacturers

(FPTM) Group

Mr Tan Eng Huat – Chairman

Pipeco Sdn Bhd

Mr Tan Teck Lim – Co-Chairman

Wylit Industries Sdn Bhd

Mr Chik Chee Kong

Anchor-Link Sdn Bhd

Mr Tay Choi Guan / Mr Tommy Chang

AYS Metal Products & Engineering

Sdn Bhd

Mr Peter Low

Potaglas Tank Sdn Bhd

Mr Kenny Chee

Reliance Pacific Tanks Sdn Bhd

Mr Chai Foh Yon

Yi Sing Composite Industries Sdn Bhd

Mr Tan Soon Huat

YT Fibreglass Industries Sdn Bhd


1. MEMBERSHIP OF THE ASSOCIATION

Membership of the Association comprised Ordinary Members and Associate Members. Details as at 31 March 2017 are as follows:

1.1 Membership Services

The Membership Services Sub-Committee continued to identify and recruit new members during the period under review. During

the period, 27 new members, comprising 20 Ordinary Members and 7 Associate Members were recruited. During the same

period, 14 Ordinary Members and six Associate Members resigned.

1.2 Membership Activities

1.2.1 MPMA’s 49th Anniversary Dinner

MPMA celebrated its 49th Anniversary Dinner on 28 May 2016 at The Place@One City, Subang Jaya, Selangor. The theme of the

night was “Glitz and Glamour”. The Dinner attracted about 800 members and guests.

Report of the Central Committee(From July 2016 to April 2017)

Sponsors receiving their plaques during the Dinner The Toast


1.2.2 MPMA’s 27th Annual Golf Tournament

MPMA held its 27th Annual Golf Tournament 2016 for members and guests

on 27 May 2016 at the Sungai Long Golf and Country Club, Kajang. 120

golfers participated in the event.

1.2.3 MPMA Roadshow 2017

The MPMA Roadshows are organised to inform members of the issues

affecting the plastics industry. The main issues discussed during the

Roadshow 2017 events were the suspension on intake of foreign workers

and rehiring programme; Employer Mandatory Commitment (EMC)

and levy payment by employers; Bank Negara Malaysia’s (BNM) new

measure to enhance depth and liquidity of onshore financial market;

and issues/proposals raised at the National Budget 2017 Consultation.

The Roadshows also highlights MPMA’s sustainability activities and the

environmental challenges affecting the plastics industry, in particular

the ban of plastic bags and Polystyrene (PS) food packaging containers.

The MPMA Roadshows 2017 schedule were as follows:

21 February 2017 – MPMA Head Office

16 March 2017 – MPMA Johor Branch

20 April 2017 – MPMA Perak Branch

21 April 2017 – MPMA Northern Branch

2. FINANCIAL REVIEW

The amalgamated income for MPMA for the year 2016 amounted to RM2,924,907.

The Association recorded an amalgamated surplus of RM10,845 before taxation for the year. Please refer to the section on

Financial Statement.

Participants of the MPMA Annual Golf Tournament

Participants at MPMA Roadshow 2017, MPMA Head Office


3. HuMAN RESOuRCE DEVELOPMENT

3.1 1Malaysia Globally Recognised Industry and Professional Certification Programme

1MalaysiaGRIP was introduced by PSMB to offer specialised high-level trainings that cover skills required for knowledge intensive sectors, high-tech and high value-added products and activities.

In August 2016, Pembangunan Sumber Manusia Berhad (PSMB) allocated RM500,000 for the following eight training programmes proposed by MPMA under the 1Malaysia Globally Recognised Industry and Professional Certification Programme (1MalaysiaGRIP) for Associations.

i. Scientific Injection Moulding For Technicians

ii. Advanced Scientific Injection Moulding Certification

iii. Mould & Part Design Considerations For Scientific Moulding

iv. Film Extrusion & Trouble Shooting

v. Understanding Plastic Materials

vi. Extrusion Blow Moulding

vii. Lean In Plastics Injection Moulding Industry

viii. Smart Maintenance For Moulding Machines

The following trainings were scheduled. As of 31 December 2016, all seats have been taken-up and all funds have been fully utilised. Details of the training modules and trainers can be viewed from the MPMA website.

Date Details No of Pax

6 to 7 December 2016 Film Extrusion and Troubleshooting 16

17 to 18 January 2017 Understanding Plastics Materials 20

20 to 22 February 2017 Advanced Scientific Injection Moulding Certification 14

23 to 24 February 2017 Mould & Part Design Considerations for Scientific Moulding 12

27 to 28 February 2017 Mould & Part Design Considerations for Scientific Moulding 7

1 to 3 March 2017 Advanced Scientific Injection Moulding Certification 17

8 to 9 March 2017 Film Extrusion and Troubleshooting 19

15 to 16 May 2017 Mould & Part Design Considerations for Scientific Moulding 13

17 to 19 May 2017 Advanced Scientific Injection Moulding Certification 15

Mr Andy Routsis, Trainer, at a hands-on session during the Advance Scientific Injection Moulding Certification at GMI

Mr Oh BK, Trainer, assessing participants’ work during the Film Extrusion and Troubleshooting Training at Newton Research & Development Centre Sdn Bhd



3.2 Minimum Wage Training Fund (MWTF)

MPMAalsoreceivedfundingfromPSMBviatheMinimumWageTrainingFund(MWTF),aspecialfundofferedthroughemployers’associationstoencourageSMEswhoareaffectedbytheMinimumWagepolicytoenhancethetechnicalorcriticalskillsofemployees in order to improve the company’s productivity and revenue stream.

The following trainings were conducted with the funding received:


26 to 27 September 2016 Scientific Process Optimisation 15

28 to 29 September 2016 Plastics Part Design for Scientific Moulding 16

3.3 Seminar on Effective Tempering For Moulds

The Seminar on Effective Tempering for Moulds was jointly organised by MPMA and the German Training Centre (GTC) in collaboration with the Sectorial Training Committee (STC) on Plastics under PSMB. The Seminar highlighted practical tips on cleaning and maintaining moulds to achieve faster cooling time. Besides this, the Seminar also covered the following practical tips:

i. To select a suitable type of cooling solution for the factory.

ii. To optimise mould cooling using infrared analysis, f low and temperature measurement.

iii. How to properly clean, maintain and manage cooling in moulds so as to ensure mould efficiency required to produce consistent, profitable parts.

iv. To use special technology such as variothermal control and computer-aided design to systematically simulate mould temperature and hot spots as well as cooling efficiency and time.

v. To uncover issues with existing moulds through a development of best practices.

The Seminar was held on 16 August 2016 at Connexion@Nexus, Bangsar South City. A total of 70 participants attended the event. Many participants provided feedback that the contents of the Seminar were good and relevant to their businesses.

Participants at the Seminar

Group photograph of MPMA and PSMB representatives as well as speakers


3.4 MPMA-MONASH Skills Needs Research Study

MPMA undertook a Skills Needs Research Study with MONASH University. The purpose of this study was to undertake a thorough assessment of the current and future skills needs in the Malaysian plastics injection moulding industry and to explore options of improving the current process of skills training programmes.

A survey was conducted with a sample of 60 firms. The survey provides characterisation and state-of-play of the different skills set in the industry as well as providing valuable insights on the challenges and gaps in the workforce.

This study looks to address the following questions and issues:

i. Whataretheskillsgapoffirmsinthisindustry?

ii. Whatarethefactorscontributingtothedevelopmentoftheskillsoftheworkforceoffirmsinthisindustry?

iii. WhoaretheplayerscontributingtothedevelopmentofskillsforfirmsintheMalaysianplasticsinjectionmouldingindustry?

iv. Whataretherolesofkeyinstitutions,suchasgovernment,researchinstitutes, universities, industry associations, financial institutions, inprovidingsupportandtrainingforthisindustry?and,

v. How to create sustainable skills knowledge clusters that have the capability to provide relevant training and mentorship that will lead the development of the industry to higher platform of competitiveness?

The Final Report will be made available to the public in May 2017.

3.5 Recognition of Prior Achievement

MPMA collaborated with the Department of Skills Development (DSD), Ministry of Human Resources (MoHR), to offer the Recognition

of Prior Achievement (RPA) Programme to MPMA members.

Recognition of Prior Achievement is a Programme to award employees who do not have any formal qualification, but can

demonstrate skills outlined in the National Occupational Skills Standards (NOSS) based on working experience, with the Malaysian

Skills Certification.

Under this special arrangement with DSD, a total of fifty certifications were allocated to the employees. Employees will be

awarded with Certification up to the highest level according to their respective fields as specified in the National Occupational

Skills Standards (NOSS).

MPMA is an Industry Lead Body under the Department of Skills Development, Ministry of Human Resources (MoHR).

From right: Assoc Prof Santha and Prof Pervaiz from MONASH university explaining details of the report during the focus group discussion with MPMA members.



3.6 National Occupational Skills Standards

During the period in review, MPMA developed the National Occupational

Skills Standard (NOSS) for Plastics Injection Mould Designing, Level 4.

The document was developed and reviewed by 10 panel experts from

the relevant industry sectors.

MPMA is of the view that the development of this NOSS is beneficial for

the industry as the specific guidelines, standards and competencies set

by industrial experts would assist the learner to possess skills that would

help companies design better moulds that would improve product/part

quality, reduce defects, increase production cycle time and achieve

greater productivity and profits.

3.7 Occupational Safety and Health

MPMAwasawardedatotalofRM30,525bytheSocialSecurityOrganisation(SOCSO)toconductthreeWorkshopsonTrainthe

TrainersonOccupationalSafetyandHealth(OSH)andfourWorkshopsonPreventionofInjuriesattheWorkplacefor2017.The

WorkshopswouldbeconductedjointlywithMONASHUniversityandMPMA.

3.8 MPMA–Plastics Technology Training Centre

During the period in review, the following training activities were organised under the MPMA-Plastic Technology Training Centre

(MPMA-PTTC):

MPMA-PTTC Johor


21 April 2016 Quality & Productivity Improvements with 5S 31

23 June 2016 QC Testing, Defects & Troubleshooting of Film Packaging

22

20 September 2016 Produc ts Defec ts , Troubleshoot ing & OptimisationWorkshopforFilmPackaging

24

25 October 2016 Management of Hazardous Chemical at the Workplace

7

Brain-storming session on the development of the NOSS for Plastics Injection Mould Designing, Level 4

Participants at the hands-on training session


4. STANDARDS DEVELOPMENT

4.1 MPMA’s Role As Standard Development Agency

Standards Malaysia has identified a total of 391 Malaysian Standards (MS) on plastics to be reviewed by the respective Technical Committees (TCs) within the Industrial Standards Committee (ISC) J on Plastics and Plastics Products. Details are as follows:

TC Title Number of MS

1 General Method of Test for Plastics 142

2 Plastics Pipes and Fittings 111

3 Plastics Products 110

4 General and Raw Materials for Plastics 23

5 Plastics Tanks 5

TOTAL 391

4.2 Standards Development Activities under ISC-J on Plastics and Plastics Products

The 391 MS under various stages of development are summarised as follows:

Status Number of MS

DraftMalaysianStandard(DMS)underactivedeliberation/reviewedbyWG 16

DMS ready for submission to TC for approval 0

Standards withdrawn / rejected 4

Standards re-confirmed 0

Standards amended 16

Published MS 355

TOTAL 391

New work projects under ISC J are as follows:

Status Number of MS

New work projects - Indigenous 10

4.3 Seminars on Standards Development

MPMA organised seminars on “Enhancing Global Competitiveness Through Standards Introducing: MS 1905:2006, AMD 1:2015 and MS 1405:2008”. Details are as follows:



Date Venue No of Pax

25 October 2016 Eastin Hotel, Petaling Jaya 34

26 October 2016 Light Hotel, Penang 17

27 October 2016 KSL Resort, Johor Bahru 21

The speakers for the three events were Tn Hj Ahmad Khairuddin, Chairman, ISC J on Plastics and Plastics Products and Dr Loo Koi Sang, Chairman, TC 3 on Plastic Products TherewasalsoapresentationontheUpdatesofMPMA’sStandardsWritingActivitiesby the MPMA Secretariat.

The main objective of holding the seminars were to brief and explain the MS 1405:2008 Coding Systems for Plastics Products (First Revision) and MS 1905:2006 AMD 1:2015 Plastics Containers for Paints and Surface Coatings – Specifications to the industry.

4.4 ISO/TC 61 Meeting on Plastics

The 65th Meeting of ISO/TC 61 on Plastics was held in the German National Organisation for Standardisation, Berlin, Germany, from 19 to 23 September 2016. The meeting was attended by more than 200 delegates from 25 countries. The Malaysian delegation comprised the following representatives:

i. Dr Ahmad Fuad Md Yusuf, SIRIM QAS INTERNATIONAL Sdn Bhd

ii. En Ahmad Khairuddin B Sha’aban, MPMA

iii. Dr Loo Koi Sang, MPMA

This is the seventeenth participation of Malaysia in the TC 61 event.

The Malaysian delegates participated in all TC 61 Sub-Committee (SC) Meetings, where Malaysia is aPermanent/’P’member, aswell as severalWorkingGroups (WGs) andplenary sessions. Dr Ahmad Fuad, Head of the Malaysian Delegation and Convenor for SC2/WG2onMechanicalProperties/HardnessandSurfaces,alsoattendedtheLeadersMeetingandsuccessfullyconvenedtheSC2/WG2Meetingon19September2016.EnAhmadKhairuddin,Convenor forSC9/WG6onPolyolefins, convened theSC9/WG6Meeting 20 September 2016. Dr Ahmad Fuad and En Ahmad Khairuddin also actively participated in many technical work/projects, taking up responsibilities as Project Leaders and Convenors as well as participating in discussions and Round Robin Exercises.

Seminar in Petaling Jaya

Cik Nik Nazira, Principal Assistant Director, Standardisation Division, Standards Malaysia (left) and Datuk Noraini Talib, Vice-President, MPMA

Seminar in Penang


4.5 ISO/TC 138 Meeting on Plastics Pipes, Fittings and Valves for the Transport of Fluids Meeting

The 26th Meeting of ISO/TC 138 on Plastics Pipes, Fittings and Valves for the Transport of Fluids was held at Sekisui Chemical Co Ltd, Kyoto, Japan, from 17 to 21 October 2016. The Meeting was attended by representatives from more than 50 countries. En Mohd Zaharon B Mohd Talha, Deputy Director, Ministry of Health (MoH), represented Malaysia at this Meeting.

During the Meeting, En Mohd Zaharon also attended several SC meetings to observe its proceedings as well as to provide comments and vote on the related draft standards.

4.6 Internal Committee Meeting of the MPMA-Standards Development Agency

The first Internal Committee Meeting of the MPMA-Standards Development Agency (MPMA-SDA) was held at the MPMA Head Office, Petaling Jaya, on 29 November 2016. The main objectives of the meeting were to report on the standards development activities in 2016, update on allocation budget for 2016 and 2017 as well as to review the progress on the 2016/2017 work plan. The meeting is scheduled to be held annually and/or when necessary.

5. SuSTAINABILITy ACTIVITIES

5.1 Developments

During the period in review, there were two developments that had impacted members; firstly was the introduction of the ban on PS food packaging and plastic bags, with a surcharge of RM0.20 for plastic bags; secondly was the introduction of bio packaging products as a replacement for PS and plastic bags.

5.1.1 Several states in the country had implemented the ban and surcharge for plastic bags as an effort to solve waste management problems. The table below summarises the current scenario in the different states in Malaysia.

From left: Dr Ahmad Fuad, Dr Loo Kooi Sang and En Ahmad Khairuddin at the TC 61 event

Campaign to discourage use of plastic bags to be stepped up



No. States/Local councilsBans

Implementation Suggested Alternative PackagingPlastic Bags PS

1. Penang ✓ ✓ Since 1 Dec 2012 Biodegradable and paper packaging

2. Sibu Municipal Council (SMC) ✓ Since 1 Jan 2014 Biodegradable and paper packaging

3. Sarikei District Council (SDC) ✓ Since Oct 2014 Biodegradable and paper packaging

4. Sibu Rural District Council (SRDC)

✓ Since Oct 2014 Biodegradable and paper packaging

5. Malacca ✓ ✓ Since Jan 2016 Biodegradable and compostable packaging

6. Selangor ✓ ✓ Since 1 Jan 2017 Biodegradable packaging

7. Federal Territories (Kuala Lumpur, Putrajaya and Labuan)

✓ ✓ Since 1 Jan 2017 Biodegradable packaging

8. Johor ✓ ✓ Beginning June 2017 Biodegradable packaging

9. Perak ✓ ✓ Beginning June 2017 Biodegradable packaging

The ban, especially on PS food packaging, is mainly incorporated as one of the conditions in the issuance of licenses for eateries/hawkers/traders. Businesses that do not comply may face the revocation of their licenses.

5.1.2 The Government is moving ahead with the introduction of bio-based products in the country. Various Ministries and organisations are introducing policies and standards to support this movement by the Government. The SIRIM ECO 001:2016; Eco-labelling Criteria – Degradable and Compostable Plastic Packaging Materials (first revision) Standard was developed by SIRIM with inputs provided by several industry players, including MPMA. The standard will be adopted nationally, whereby all bio-packaging products in the market have to be certified with the eco-label to ensure the quality and degradability of the products.

5.2 Sustainability Activities

The following is an account of the activities undertaken by MPMA to overcome the adverse perception of plastics and to promote plastics as a sustainable product.

5.2.1 Diary of Events

Date Activities

1 April 2016 SetiaWalkRECYCLECampaigninPuchong,Selangor

4 April 2016 'Plastics Sustainability (3Ps) & 3Rs' Talk at MONASH University

6 April 2016 Meeting with Grønt Punkt Norge (GPN) on plastics recycling


26 April 2016 Advocacy meeting with YBhg Dato’ Razali B Othman, Deputy Secretary-General, Consumerism and Management, Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC)

10 - 12 May 2016 LocalAgenda21(LA21)andKualaLumpurCityHall(DBKL)WasteManagementWorkshopinKuantan,Pahang

1 June 2016 Interview with Oriental Daily and The Star to address the ban of plastic bags and PS

3 June 2016 HandoverCeremonyoftheSeparationatSource(SAS)BagstoSolidWasteandPublicCleansingManagementCorporation(SWCorp)andDBKL

3 June 2016 Sharing session with LA21 and DBKL on 'Plastics Safety and Its Impact on the Environment'

6 June - 5 July 2016 Eco-Bazaar Ramadhan at Kampung Segambut Tengah, Kuala Lumpur

21 June 2016 PublicForumon'TheImpactofPlasticsontheSustainabilityoftheEnvironment:ShouldPlasticsBeBanned?',Ipoh, Perak

29 June - 27 September 2016

MPMA-DOWSchoolEnvironmentalChallenge2016inAlorGajah,Melaka

21 July 2016 Meeting with MYSaveFood on possible collaborations

22 July 2016 Meeting with Unit Perancang Ekonomi Negeri (UPEN), Selangor, to address the ban of plastic bags and PS

12 August 2016 Meeting with Koperasi Alam Hijau Perak Berhad (KOHIJAU) on possible collaborations

19 August 2016 MOU signing between KOHIJAU and MPMA-PS Sub-Committee on pilot PS Collection Project in Ipoh, Perak

5 September - 5 October 2016

PETRONAS Chemicals Group (PCG) Berhad Be Green Campaign - Collection of Recyclables

8 September - 21 November 2016

MPMA-Chevron Phillips Chemical Young Sustainability Innovators Award 2016 in Petaling Jaya, Selangor

13 September 2016 Meeting with iM4U on possible collaborations

21 September 2016 PCG Berhad Be Green Campaign - 3Rs Talk

10 October 2016 Courtesy visit to YBhg Datuk Yeo Boon Hai, Mayor of Kota Kinabalu, Sabah

14 - 16 October 2016 LA21 3Rs Eco-Ranger Programme in Morib, Selangor

20 - 22 October 2016 PCG Berhad Be Green Campaign - ecoCare Community Programme in Kerteh, Terengganu

26 October 2016 Advocacy meeting with YB Datuk Haji Ayub bin Rahmat, Chairman, Health and Environment, Johor EXCO

30 October 2016 iM4U Skate 4 A Cause Programme in Puchong, Selangor

2 November 2016 Meeting with Malaysian Nature Society (MNS) on possible collaborations

12 November 2016 PETRONAS Chemicals Group (PCG) Berhad Be Green Campaign - River Care Programme in Kuantan, Pahang

14 November 2016 Meeting with European Association of Plastics Recycling & Recovery Organisations (EPRO) on plastics recycling



15 November 2016 MPMA Perak Branch Eco-Ranger Programme 2016

27 November 2016 Litter-Free Penang Bridge International Marathon 2016 in Penang

7 and 14 December 2016 Litter-Free Pasar Malam 2016 in Cheras, KL

16 December 2016 Meeting with Global Environment Centre (GEC) on possible collaborations

18 December 2016 iM4U United In The Spirit of Christmas in Sentul, Kuala Lumpur

20 January 2017 Interview with The Star on plastics safety

8 February 2017 Litter-Free Thaipusam 2017 in Batu Caves, Selangor

16 and 18 February 2017 Litter-Free Chingay 2017 in Johor

En Ahmad Khairuddin presenting on 3Ps and 3Rs at MONASH university

Handover Ceremony of the SAS Bags to SWCorp and DBKL

Advocacy meeting with Dato’ Razali B Othman, Deputy Secretary-General, Consumerism and Management, MDTCC

MPMA presenting on ‘Waste-to-Wealth and Plastics Recycling’ to students during the LA21 3Rs Eco-Rangers Programme in Morib, Selangor


5.2.2 Diary of Press Coverage

Date Article Press

21 April 2016 Letter to Editor - Littering, not plastic, harms environment New Straits Times

21 April 2016 Letter to Editor - Recycle plastic containers, don't ban The Sun

5 May 2016 Letter to Editor - Littering, not packaging, pollutes New Straits Times

24 May 2016 Letter to Editor - Polystyrene packaging not poisonous The Star

31 May 2016 Easing people into no-polystyrene ways The Star

12 June 2016 Litterbug is cause of pollution Oriental Daily

12 June 2016 Plastics are useful material. Polystyrene has its advantages. Oriental Daily

28 June 2016 'Need not ban plastic' The Star

3 July 2016 Green challenge for schools The Star

11 July 2016 'Polystyrene not the real culprit' The Star

2 August 2016 Letter to Editor - Protect rivers, stop littering The Star

4 August 2016 LettertoEditor-Wastemanagementistheissue,notplasticbags The Sun

4 August 2016 Letter to Editor - Solution lies in effective waste management New Straits Times

2 October 2016 Inspiring students with green causes The Star

22 October 2016 Caring for the environment The Star

7 November 2016 Manufacturers view on PS Ban Sin Chew Daily

12 December 2016 Aim to be litter-free at pasar malam New Straits Times

4 January 2017 Welcoming polystyrene packaging banwill not change people’sdisposable habits

Malaysian Digest

23 January 2017 Plastic wrappers are safe The Star

5.3 Sustainability Efforts in Perak

Perak State Exco had announced its intention to ban PS packaging and plastic bags effective June 2017 in its efforts to reduce the amount of plastic wastes in its waste stream. Following the announcement, MPMA together with Perak State EXCO, Ipoh City Watch,SWCorpPerak,KOHIJAUandIpohCityCouncilorganisedapublicforumentitled“The Impact of Plastics on the Sustainability of the Environment: Should Plastics be Banned?”on21June2016todiscusstheban.TheForumreachedtoaconclusionthatthe ban might not help as the real issue to be tackled is waste management. Following the Forum, MPMA PS Sub-Committee signed an MOU with KOHIJAU on 19 August 2016 for a pilot PS Collection Project in Ipoh to demonstrate the recyclability of PS and the importance of an effective waste management system.

Datuk Lim Kok Boon presenting on ‘Plastics in Society and the Environment’ during the Public Forum on “The Impact of Plastics on the Sustainability of Environment: Should Plastics be Banned?”



5.4 MPMA-DOW School Environmental Challenge 2016

TheMPMA-DOWSchoolEnvironmentalChallenge2016wasdesignedtoencouragecritical and creative thinking among students to create innovations/inventions from plastics recyclables, and to educate students on the importance of plastics in our daily lives as a sustainable material and product.

The programme, which was supported by the Melaka State Education Department, was held over one and the half months with six selected schools in Alor Gajah, Melaka, comprising, three primary and three secondary schools. The programme involved fourcompetitions,thatis,EssayWritingandPlasticsCollagecompetitionsforprimaryschools; and Photography and Plastics Sculpture competitions for secondary schools. Approximately 500 students participated in the programme.

As part of the programme, an Eco-Ranger Programme was organised on 28 July 2016 for students and teachers from the six schools. The purpose of the Eco-Ranger Programme was to educate students on the holistic approach in solving waste management issues.

Mr Mark Saurin, Commercial Vice-President, Packaging and Specialty Plastics, Asia-Pacific-Dow attended the closing ceremony of the Programme, and gave out prizes to the winners.

5.5 MPMA-Chevron Phillips Chemical young Sustainability Innovators Award 2016

The MPMA-Chevron Phillips Chemical Young Sustainability Innovators Award was held for the third consecutive year. Its aim was to challenge students to be innovative and inventive with recyclable materials, especially plastics recyclables. The competition was designed as an inter-school competition and two schools, namely SMK La Salle Petaling JayaandWerlryMethodistSchool,KualaLumpur,hadcompletedfortheChallengeTrophy.

Mr Robert Chng, Director of Chevron Phillips Chemical was at the closing ceremony and gave out prizes to the winners.

SMK La Salle, Petaling Jaya, won the Challenge Trophy with their invention of an Automatic Pet Feeder, using basic counterweight system to dispense pet food into a feeding bowl. The innovation was built using plastics recyclables and received positive remarks from the judges.

5.6 PETRONAS Chemicals Group’s Be Green Campaign

MPMA was invited by Petronas Chemical Group (PCG) to be a part of its Be Green Campaign to educate PCG’s staff and the public on 3Rs (Reduce, Reuse and Recycle) and the impact of plastics towards the environment. Under this campaign, a series of activities were held targeting different audience groups.

Winners of the ‘Plastics Sculpture’ Competition

The winning team from SMK La Salle, Petaling Jaya explaining their invention ‘Automatic Pet Feeder’ to the VIPs

Students showcasing their creations at the MPMA-DOW School Environmental Challenge 2016 Closing Ceremony

The winning teams during the Award Ceremony

MPMA-DOW

MPMA-Chevron Phillips Chemical


Details are as follows:

i. Recyclables Collection Programme

A Recyclables Collection Programme was held for a month at PCG’s office in KLCC, in which a total of 2,100 kgs of recyclables were collected. This Collection Programme targeted PCG’s staff. Funds collected through the sales of the recyclables were used for charity.

ii. 3Rs Talk

A 3Rs Talk was organised on 21 September 2016 at PCG’s office in KLCC to engage and educate PCG’s staff on waste management. MPMA presented a paper on Plastics Recycling.

iii. ecoCare Community Programme

As part of the Be Green Campaign, PCG organised an ecoCare Community Programme in Kertih, Terengganu, from 20 to 22 October 2016. MPMA participated with an information booth at the event and had presented several talks to various visiting groups comprising communities, NGOs, school students and university students from Kerteh during the three-day programme. The talks were on the topic of Plastics and the Environment.

iv. River Care Programme

A River Care Programme was organised in Sungai Balok, Kuantan, Pahang, on 12 November 2016. The event was open to the public and MPMA had presented on Plastics and its Impact on the Environment.

5.7 MPMA-ExxonMobil Litter-Free Programmes

MPMA-ExxonMobil had organised two litter-free programmes to create awareness among the public to not litter and to educate them on waste separation at source.

Litter-Free Penang Bridge International Marathon was held on 27 November 2016 and Litter-Free Pasar Malam was held on 7 and 14 December 2016 at Pasar Malam Taman Connaught, Cheras, Kuala Lumpur. Litter-Free Pasar Malam in particular received full supportfromSWCorpandDBKL,wherebytheprogrammewasdesignedasapilotprojectfor other pasar malams or night markets to emulate in the future.

MPMA’s booth at the ecoCare Community Programme in Kertih, Terengganu

Public throwing waste into the garbage bags carried by the’barkers’ during the Litter-Free Pasar Malam 2016 Programme

Volunteers at the Litter-Free Penang Bridge International Marathon 2016


PCG Be Green Campaign

MPMA-ExxonMobil


6. GOVERNMENT AND INDuSTRy

MPMA continued to play an active role by participating and contributing to the Trade Associations’ Joint Meetings on Foreign Workers(FWs)issues.TheseMeetingsareco-ordinatedbytheAssociatedChineseChamberofCommerceandIndustries(ACCCIM), Federation of Malaysian Manufacturers (FMM) and the Malaysian Employers Federation (MEF). MPMA provided inputs at the meetings with Joint Associations and with relevant authorities as well as assisting in the preparation of letters and memorandum to the Government, press releases, etc.

6.1 Suspension on Intake of Foreign Workers and Rehiring Programme

i. 29 April 2016 – MPMA participated at the Associations’ Joint Meeting held in ACCCIM. During the meeting, Associations agreed to submit a joint memorandum to the authorities.

ii. 6 May 2016 – Trade Associations submitted a joint memorandum to the Deputy Prime Minister cum Minister of Home Affairs, highlighting the following:

A. Suspension of New FWs Recruitment

a. TheadverseimpactonthesuspensionofnewFWsrecruitmentonbusinessesandtheeconomy.

b. Provided information of a survey conducted by ACCCIM and several participating associations, including MPMA.

c. Appealed to the Government to immediately lift the suspension.

B. Rehiring Programme for Illegal FWs The Rehiring Programme was limited to those who have entered the country either with valid permits such as PLKS

(TemporaryWorkPermit)orPLS(WorkPermit),andiscurrentlyemployed.

The Proposal TheRehiringProgrammeshouldinsteadbeopenedtoallundocumentedFWsexceptthosewithcriminalrecords.

C. High Cost of the Rehiring Programme The processing charges for the rehiring exercise were too costly compared to the past 6Ps (Legalisation of Illegal

ForeignWorkers)ProgrammeinMalaysia.Thecosttobeincurredincluded:

a. Registration and administrative charges of RM1,200.

b. Penalties of RM500 and RM300 on employers and workers, respectively.

c. OthertypicalchargesforhiringFWsofRM3,000.

The Proposal The existing process be changed to the one previously used in the 6Ps programme, and to lower the registration and

administrative fees imposed by private firms (IMAN, Bukit Megah and MyEG consortium) that have been tasked to processtheapplicationsforrehiringofFWs.

D. FW Levy – The Proposal Any future plans to increase the levies be deferred, at least for the next five years, to ease the cost of doing business.

E. Enforcement and Raids – The Proposal TheraidsonillegalFWsbehaltedimmediatelyduringtheperiodoftheRehiringProgramme.Thiswastoensurethat

such raids would not cause any major disruptions to business operations.


iii. 12 May 2016 – The Cabinet announced that the suspension for the manufacturing, construction, plantation and furniture industries would be lifted.

iv. 31May2016–MPMAattendedabriefingbytheDeputyMinisterofHomeAffairsonFWsissues.TheDeputyMinisterannouncedthatthefreezeinFWsintakehadbeenpartiallylifted.MoresectorswereallowedtobringinnewFWsbutthedetails would be announced after the Rehiring Programme ends on 30 June 2016.

v. 15June2016–MPMAparticipatedinajointmeetingatACCCIMtofollowuponFWissues.Themeetingwasconcernedabout the Malaysian Institute of Economic Research / MIER CEO Confidence Survey, where only 33% of the CEOs were reported to have been impacted by the freeze.

The joint meeting decided to send a memorandum to the Deputy Prime Minister, highlighting the following:

A. Majority of the companies across all sectors of the industry and economy had reported severe impacts on their productionduetothesuddenfreezeintheemploymentoffreshFWs.

B. UrgingtheGovernmenttoimmediatelyliftthefreezeandallowemployerstodirectlyapplyandengageFWs.

C. SupportingtheGovernment’sdecisiontoeliminatetheneedforagentsandallowemployerstodirectlyengageFWs.

vi. 22 August 2016 – MPMA attended the Town Hall Session with Stakeholders. The Session was organised by the Ministry of Human Resources MOHR. Trade Associations were invited to comment on the findings and proposals by the Institute of Labour Market Information and Analysis (ILMIA), ILMIA was appointed by MOHR to conduct the study.

vii. 9 September 2016 – ACCCIM submitted a comprehensive proposal to MOHR, incorporating MPMA’s inputs.

viii. 7 October 2016 – MPMA and Trade Associations attended a meeting with the Director-General of the Ministry of Home Affairs.TheprivatesectorwereadvisedtorecruitFWsfromtheRehiringProgramme.TheprivatesectorhoweverexpressedthatitwasratherdifficulttorecruitanyFWsduetotherigidconditionsoftheRehiringProgramme.

6.2 Employer Mandatory Commitment and Levy Payment by Employers

i. 31 December 2016 – the Deputy Prime Minister announced that the Employer Mandatory Commitment (EMC) would be implementedeffective1January2017wherebyemployersarerequiredtopaythelevyoftheFWsemployed.

ii. 3 January 2017 – An emergency meeting was called by ACCCIM. The meeting was attended by 159 Trade Associations. On the same day after the joint meeting, a press conference was held and a joint memorandum was submitted by 159 Trade Associations to the Prime Minister. The Memorandum covered the following:

A. All stakeholders are consulted and their views be taken into account if the EMC is ever implemented. The “Strict Liability”conceptcanonlybeacceptediftheabscondedFWsaremadeliablefortheiractions.EmployersshouldnotbepenalisediftheFWsweretoabscond.

B. TheissueonillegalFWsareresolvedandproperlymanaged.

C. ThehiringofrequisiteFWsshouldbeefficientandnotsubjectedtothe‘whimsandfancies’oftheapprovingauthoritiesas to numbers and source, both as to countries and out-sourcing recruitment agencies.

D. Theenforcementagenciesmustefficientlyapprehendrun-awayFWsotherwisethereisnodeterrentfortherun-awayFWs.



iii. 9 January 2017 – A joint meeting was held with associations at ACCCIMonEMC,FWsRehiringProgrammeandotherissuesrelatedtoFWs.

iv. 10 January 2017 – Nine associations were invited to meet the Minister in the Prime Minister’s Department, Datuk Paul Low.

v. 11 January 2017 – The Government announced that levy payment onFWbyemployersunderEMCbedeferredtoJanuary2018.

vi. 12 January 2017 – MPMA participated at a dialogue session between trade associations and Datuk Paul Low to discuss on EMC and other related issues.

vii. 17 January 2017 – MPMA assisted trade associations to draft a letter to Datuk Paul Low expressing the industry’s views and proposal on issuesrelatedtoFWs.

viii. 16 February 2017 – MPMA and a few selected chambers had a roundtablesessionwiththeDeputyPrimeMinisteronFWsissues.Details are as follows:

A. To reduce the cost of rehiring (RM4,000 over) and have clarity and certainly in the rehiring (fees paid forfeited previously).

B. To form a Public/Private Joint Task Force on the EMC.

C. To have certainty on a need basis at reasonable costs for new FWrecruitmentsaftertheRehiringProgramme.

ix. 22 February 2017 – Attended a Briefing by the Ministry of Home Affairs and the appointed agents on ‘System Permohonan Pekerja Asing’ (SPPA), an online application system for Bangladeshi workers. Trade associations were informed that the application for Bangladeshi workers has been re-opened since 10 February 2017. Applications are to be submitted online at http://portal.sppa.com.my.

x. 22 February 2017 – MPMA led a Joint Association meeting at ACCCIM to discuss a proposal to be submitted to the Task Force on EMC.

xi. 14 March 2017 – MPMA participated in a working level meeting on Rehiring Programme and EMC at the Ministry of Home Affairs together with NCCCIM, MEF, SME Association and a few other national trade associations.

xii. 16 March 2017 – Detailed proposals on EMC, Rehiring Programme and recruitment of foreign workers were submitted to the Ministry of Home Affairs.

Associations Joint Meeting held at ACCCIM

Dialogue with Datuk Paul Low on EMC


6.3 Bank Negara Malaysia’s New Measure to Enhance Depth and Liquidity of Onshore Financial Market

i. 5 December 2016 – Bank Negara Malaysia (BNM) imposed a new ruling related to FOREX exchange whereby “a resident exporter is allowed to retain up to 25% of foreign currency proceeds from its exports of goods. This means that 75% of the foreign currency revenue must be converted to Ringgit Malaysia.

ii. MPMA was of the view that the new ruling would have a negative impact on the exporters as additional costs would be incurred for currencies conversion. This is because exporters require foreign currencies, would need to pay for the imports of raw materials, machines, loan payments, etc.

iii. 9 December 2016 – MPMA submitted a letter to BNM appealing for the plastics industry to be fully exempted from the new measures on foreign currency proceeds from the exports of goods.

iv. 13 December 2016 – MPMA participated at a meeting with BNM. BNM informed that the issues raised by members had been addressed.

6.4 National Budget 2017 Consultation

The Budget Consultation was held on 16 June 2016. MPMA had submitted a memorandum covering the following issues:

i. Gradual reduction of the Corporate Income Tax rates from 24% in 2016 to 20% in 2020.

ii. Enhanced Time of Use (ETOU) Electricity Tariff Scheme – The ETOU did not benefit the Tariff E users because the peak rate had increased substantially. MPMA proposed that the peak rate be reduced.

iii. Special Industrial Tariff (SIT) Scheme – The Energy Commission had set a new criteria to companies that wish to apply for the SIT, whereby an Energy Manager had to be appointed. MPMA proposed for the requirement of the Energy Manager to be waived, as the appointment - whether internal or external, was a very costly exercise for SMEs.

6.5 Petrochemicals Focus Group under the National Export Council

i. 1 June 2016 – MPMA attended the Pre-Council Meeting for Petrochemicals Focus Group under the National Export Council, which was chaired by the Economic Planning Unit (EPU). The proposals and feedback from the meeting are as follows:

A. MPMA’s Proposal – More aggressive tax incentives on exports to be provided by relaxing the existing eligibility criteria.

Feedback – EPU had requested MITI to look into this.

B. MPMA’s Proposal – MATRADE to assist companies to increase exports through technology acquisitions or technology transfer platforms.

Feedback – MATRADE had informed that this proposal is in their work programme for 2016.

C. MPMA’s Proposal – Increase the quantum of Market Development Grant (MDG) from RM200,000 to RM500,000 per company.

Feedback – MATRADE had informed that the scope of MDG has been extended to include first time market entry.

MPMA was requested to provide a comprehensive proposal for discussion at the upcoming Petrochemicals Focus Group meetings.

ii. 29 November 2016 – At the MPMA-Plastic Resins Producers Group (PRPG) Dialogue, both parties agreed to work on some form of common submissions where possible.



iii. 21 February 2017 – MPMA prepared a detailed proposal for submission to the Focus Group. The proposal covers improvements on the existing MATRADE’s export promotion programmes, more aggressive tax incentives for exports and extension of the Reinvestment Allowance (RA).

6.6 Seminar on Government Policies, Facilitations and Assistance for the Plastics and the Mould and Die Industries

MPMA organised a Seminar on Government Policies, Facilitations and Assistance for the Plastics and the Mould and Die Industries with The Malaysia Mould and Die Association (MMADA) and the Malaysian Investment Development Authority (MIDA). The Seminar was held on 26 Sept 2016 at MIDA’s Office, Kuala Lumpur Sentral.

The Seminar attracted a total of 95 participants - 72 MPMA members, 21 MMADA members and two non-members. Majority of the participants were of the view that the Seminar was informative, practical and relevant to their jobs and businesses and suggested that the seminar be held once every two years. The Seminar attracted wide and in-depth coverage by the local media on the plastics and mould and die industries as well as MIDA’s activities.

From left: yBhg Dato’ Raymond Sng, MPMA Vice-President, yBhg Datuk N Rajendran, Deputy Chief Executive Officer, MIDA and Mr Thay Peng Kee, President, MMADA at the Seminar’s Opening Ceremony/Press Conference.

The Seminar received overwhelming response from members.

6.7 Budget 2018: Preparation of Tax Incentive Proposals

In March 2017, MPMA submitted a proposal to MITI and MIDA on tax incentives to facilitate the growth and smooth operations

of the plastics companies, in the following forms:

A. Increase the limit of the MDG.

B. More aggressive tax incentives for exports.

C. Extend the RA to 2019 and beyond.

D. Extend the Automation Capital Allowance (ACA) from 2017 to 2022.

E. Allow greater flexibility in the Approved Traders Scheme (ATS) to facilitate domestic direct investment company and to suspend Goods and Services tax (GST) payment on importation.


7 INTERNATIONAL LIAISON

7.1 25th Asia Plastics Forum

The 25th Asia Plastics Forum (APF), held in conjunction with the 11th Bangladesh International Plastics Packaging Printing Industrial Exhibition 2016, took place from 20-22 January 2016 in Dhaka, Bangladesh, with representatives from Bangladesh, India, Indonesia, Japan, Malaysia, Philippines and Thailand. The 25th APF 2016 was hosted by the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

The theme for the 25thAPF2016was“PlasticsWasteManagement:Going Beyond the Observations”. The APF Programme was designed to highlight the misconception of plastics and its impact on the environment, and waste management practices from selected APF member countries.

7.2 26th Asia Plastics Forum (APF) and 16th Term ASEAN Federation of Plastic Industries (AFPI) Conference

The 26th APF and 16th Term ASEAN Federation of Plastic Industries (AFPI) Conference were held in Bangkok, Thailand, from 14 to 16 September 2016 in conjunction with the A-PLAS 2016: ASEAN Community Plastics Exhibition.

Representatives from Bangladesh, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam were in attendance. Representatives from China Scrap Plastic Association and Gulf Petrochemicals and Chemicals Association were also present.

Withthethemes‘TowardsInnovationandSustainablePackaging’and‘Intra-ASEAN Investment for the Plastics Industry’ for APF and AFPI respectively, some of the topics discussed were how to incorporate sustainability into businesses, government and community, managing plastics waste and the sustainability of bio-based plastics.

7.3 27th Annual Global Meeting on Plastics and Sustainability

The 27th Annual Global Meeting on Plastics and Sustainability was held in Hanoi, Vietnam, from 7 to 9 December 2016. Four main topics that were covered during the Global Meeting were plastics waste management solutions; marine litter solutions; outreach activities and communicating sustainability. Discussions involved regulatory development in managing plastics waste, action plans on marine litter and on how plastics contribute to a sustainable future.

25th APF Council Meeting

The 29th Annual Global Meeting in progress

From left to right: Mr Akekasit Chareonkidkachorn, Secretary-General, Plastics Industry Club, The Federation of Thai Industries (PIC FTI), Mr Paradorn Chulajata, Host Chairman and Chairman, PIC FTI. Mr Callum Chen, Secretary-General, APF, Mr Chen Namchaisiri, Chairman, FTI, Mr Suracha udomsak, SCG Chemicals and Dr Tine Rorvik, Chief Executive Officer, Norner AS at 26th APF 2016



7.4 K 2016

K 2016 took place from 19 - 26 October 2016 in Dusseldorf, Germany. The triennial event is the world’s premier trade show for the plastics and rubber industry. MATRADE had promoted the plastics and rubber industry by setting up a Malaysian Pavilion comprising 14 companies, of which eight were MPMA members. MPMA had also organised a visiting mission for companies interested to visit K.

7.5 Chinaplas 2016

Chinaplas, Asia’s number one plastics and rubber trade fair, was held from 25 to 28 April 2016 at Shanghai, PR China. MPMA had organised a visiting mission to Chinaplas comprising about 30 members.

7.6 MATRADE’s Mid-tier Companies Development Programme (MTCDP) and Ramp up Programme

MTCDP was developed to help local mid-tier companies (MTCs) in Malaysia to accelerate export growth and strengthen their core business functions. MTCs are defined as companies with an annual revenue of between RM50 million to RM500 million in the manufacturing sector and RM20 million to RM500 million in the services sector. Todate, about 101 companies are part of the MTCDP.

7.7 Other Trade Events

The other trade events promoted by MPMA during the period in review are as follows:

Export Accelerated Mission (EAM) to London, 24-27 September 2016.

A-Plas 2016, Bangkok, Thailand, 14–17 September 2016.

8. RAW MATERIALS

8.1 Plastic Resins Producers Group Dialogues

The dialogues between MPMA and PRPG were organised to share information between resin producers and the plastics industry, as well as working on collaborative activities for mutual benefits of the two organisations.

The Chairmanship of the Dialogues rotates between the two organisations on a biennial basis. MPMA currently holds the Chairmanship position.

Malaysian delegation at Chinaplas 2016

From left: Datuk Chua Tee yong, Deputy Minister, MITI visiting LH Plus, one of the companies selected to participate in the MTCDP. Mr Callum Chen, Honorary President, MPMA (right)


Meetings conducted were as follows:

26 May 2016 MPMA-PRPG Dialogue at MPMA Head Office, PJ

29 November 2016 MPMA-PRPG Dialogue at MPMA Head Office, PJ

At these meetings, members of the PRPG share market information related to the major types of resins from independent sources and MPMA provides a report on the performance of the plastics industry, covering key sub-sectors.

MPMA and PRPG also worked together to address queries from the public on matters related to plastics safety and plastics effect on the environment.

8.2 Seminars on Raw Material Market Trends

The updates on raw material market trends were incorporated as a topic into the MPMA Roadshows 2017 where ICIS presented on “Asia Polyolefins Market Outlook, Impact of Crude Oil Prices”.

9. PROCESS GROuP

9.1 MPMA Polyvinyl Chloride Pipes and Profiles Sub-Committee

MPMA Polyvinyl Chloride (PVC) Pipes and Profiles Sub-Committee is involvedinSIRIM’sTConWaterSupply.TheSub-CommitteesitsasoneofthemembersinSIRIM’sWGforthedevelopmentofstandardsfor the unplasticised PVC (uPVC) pipes.

9.2 MPMA Fibre Reinforced Plastics Panel Tank Manufacturers (FPTM) Tank Sub-Committee

During the period in review, the Fibre Reinforced Plastics (FRP) Panel Tank Manufacturers Committee conducted testing on materials in relation to the implementation of MS1390 on Glass Fibre Reinforced PolyesterPanelsandPanelWaterTanks-Specifications.TheCommitteereviewed the above-mentioned standard to improve the MS content for technical and commercial purposes.

Speaker from ICIS presenting at the Roadshow in MPMA Head Office, 21 February 2017.

The MPMA PE Pipes and Fittings Sub-Committee at the JTJAD exhibition.



9.3 MPMA Polyethylene Pipes and Fittings Sub-Committee

During the period in review, MPMA Polyethylene (PE) Pipes and Fittings Sub-Committee held three meetings to discuss on the issue of HDPE Pipes.

The Sub-Committee had participated in the exhibition organised by Jawatankuasa Tindakan Jurutera Air Daerah (JTJAD) Se-Malaysia–JTJADAnnualMeeting.The2016WaterConferencewasheldinconjunctionwithJTJAD29th Annual Meeting from 13th to 15th December 2016 in Grand Dorsett, Subang Jaya, Selangor.

10. REPORT FROM BRANCHES

10.1 MPMA Johor Branch

21 January 2016 A Seminar on ETOU, SIT New Policy and Energy Management was organised with TNB for 37 participants from 19 companies at the MPMA Johor Branch Conference Room.

27 - 29 February 2016

MPMA Johor Branch organised the Litter-Free Chingay 2016. The Campaign involved 30 volunteers from 14 companies. It aimed at encouraging Chingay devotees and the public to dispose of their litter properly by using specially prepared bins. The bins were marked ‘Recyclables’ for recyclable waste, and ‘Non-Recyclables’ for food waste.

17 March 2016 The MPMA Roadshow 2016 was organised by MPMA Johor Branch for 56 participants at the Starhill Golf and Country Club. MPMA’s President, Datuk Lim Kok Boon presented on the Current Profile of the Malaysian Plastics Industry and issues faced by the industry. Participants at the Roadshow also heard a presentation on the Trans Pacific Partnership Agreement (TPPA) and the on the PE/PP and Crude Oil Markets.

6 May 2016 MPMA Johor Branch held its Annual General Meeting at the MPMA Johor Branch Conference Hall. 19 member companies attended the Meeting.

On the same day, the Branch held its 1st Committee Meeting for the 14th Term (2016 - 2018) to elect the Office Bearers.

10 May 2016 Representatives from the Johor Petroleum Development Corporation (JPDC) visited BP Plastics Sdn Bhd. Accompanying the JPDC entourage were MPMA Johor Branch’s Vice-Chairman, Mr Mike Lam and MPMA Johor Branch Secretariat.

26 August 2016 MPMA Johor Branch held its Annual Golf Tournament 2016 at the Tanjong Puteri Golf Resort Berhad, Pasir Gudang, Johor for 127 members and guests.

On the same day, MPMA Johor Branch held its 28th Anniversary Dinner at the Golden Straits Seafood Restaurant, Dangabay, Johor. Over 822 members and guests attended the Dinner. During the dinner, the installation of the new Office Bearers for the 14th Term (2016-2018) was held and witnessed by MPMA President, Datuk Lim Kok Boon.

During the Dinner, RM40,000 was given towards the Academic Excellent Award 2016 and presented to 79 outstanding students.


26 October 2016 A 13-member delegation led by Mr CC Cheah, MPMA’s Vice-President and accompanied by MPMA’s Johor Branch Chairman, Mr Tang as well as key representatives from PETRONAS Chemical Group, Lotte Chemical Titan, Idemitsu and several representatives from the PS Group and JPDC, attended the meeting with YB Datuk Haji Ayub Bin Rahmat , State Executive Council for Health and Environment. The meeting discussed the banning of PS food packaging and plastic bags in Johor.

27 October 2016 The MPMA-SDA Seminar on Enhancing Global Competitiveness Through Standards Introducing: MS1905:2015 and MS1405:2008 was jointly organised by Standards Malaysia and MPMA at the KSL Resort, Johor Bahru. A total of 20 participants from 12 companies participated in the Seminar.

7 November 2016 A factory visit was arranged for several representatives from MPMA Johor Branch. The delegation, led by MPMA Johor Branch’s Chairman, Mr Tang , visited YB Enterprise Sdn Bhd and Lean Lee Trading Co Sdn Bhd.

16 - 18 February 2017 MPMA Johor Branch organised the Litter-Free Chingay 2017.

16 March 2017 The MPMA Roadshow 2017 was organised with 49 participants in attendance.

1. Volunteers during the Litter-free Chingay 2016

2. MPMA Johor Branch’s Annual Golf Tournament 2016

3. MPMA Johor Branch’s 28th Anniversary Dinner

4. Meeting with yB Datuk Haji Ayub B Rahmat

2

4

1

3



10.2 MPMA Northern Branch

19 May 2016 The election of Office-Bearers was held at the MPMA Northern Branch.

24 May 2016 The swearing-in ceremony for the newly elected Office Bearers was held at the MPMA Northern Branch.

14 July 2016 AnAppreciationDinnerforMrTanWeeMingwasheldatTheView,HotelEquatorial,toacknowledgehissupportand leadership as Branch Chairman for the past six years.

7-9 July 2016 MPMA Northern Branch visited InterPlas Thailand 2016 at BITEC, Bangkok, Thailand. The 10-member delegation was lead by Chairman, Mr Alvin Ang.

18 September 2016 MPMA Northern Branch organised a Bowling Competition at Mega Bowling Centre, Seberang Jaya for 30 teams.

26 October 2016 MPMA Northern Branch organised the MPMA-SDA Seminar on Enhancing Global Competitiveness Through Standards: Introducing: MS 1905:2015 and MS 1405:2008 at The Light Hotel for 20 participants.

5 November 2016 The 19th Annual Golf Tournament was organised at the Penang Golf Club, Bukit Jambul for 67 golfers.

On the same day, the Branch celebrated its 25th Anniversary Dinner at The Light Hotel, Seberang Jaya. About 700 members and guests attended the Dinner.

5 November 2016 A total of RM5,100 was awarded to 31 outstanding and deserving students from 17 member companies under the Members’ Employees Children Academic Excellence Awards.

12 November 2016 MPMA Northern Branch sponsored the Jit Sin Independent High School’s 3Rs Awareness Campaign.

13 November 2016 MPMA Northern Branch won the Group Champions title in a Golf Tournament involving five Associations at the Penang Golf Club. This tournament was jointly organised by the Penang Furniture and Timber Industry Association, MPMA Northern Branch, Penang Foundry and Engineering Industries Association, Penang Hardware and Machinery Merchants Association and Malaysia Printers Association, Northern Branch.

1. Mr Alvin Ang, Chairman, MPMA Northern Branch, delivering his address during the MPMA Northern Branch 25th Anniversary Dinner

2. Recipients of the Members’ Employees Children Academic Excellence Awards

21


26 November 2016 The “Don’t Be A Litterbug” MPMA-ExxonMobil Litter-Free Penang Bridge International Marathon 2016 was organised by MPMA Northern Branch and sponsored by ExxonMobil. The youth group from MPMA Northern Branch left their ‘footprint’ at the International Marathon by promoting an environmental message to over 30,000 participants. The youths were seen encouraging the runners to use a bin at the Marathon in the spirit of keeping Penang clean.

8 February 2017 MPMA Northern Branch organised a Chinese New Year Dinner cum Karaoke Contest for its members at Kim Hee Restaurant, Seberang Jaya, for 230 participants.

12 February 2017 MPMA Northern Youth Club visited the "Pertubuhan Kebajikan Da Zhi Jiang Tang", an orphanage in Butterworth. The event started off with a short 3Rs video presentation. MPMA Northern Branch contributed RM1,000 to the orphanage home and presented cash token or 'Ang Paos' to 20 children and 7 care takers.

1. Mr Alvin Ang, Chairman, and members of the MPMA Northern Branch at the Jit Sin Independent High School’s 3Rs Awareness Campaign

2&3. Volunteers at the “Don’t Be A Litterbug” MPMA-ExxonMobil Litter-Free Penang Bridge International Marathon 2016

4. MPMA Northern Branch members at the “Pertubuhan Kebajikan Da zhi Jiang Tang”

2

4

1

3



10.3 MPMA Perak Branch

8 May 2016 The Children's Academic Excellence Achievement Award was held at the Syeun Hotel, Ipoh. 82 children from 21 member companies received their awards.

14 May 2016 MPMA Perak Branch held its 28th AGM at the MH Hotel, Ipoh.

24 - 28 May 2016 MPMA Perak Branch participated in Thaifex in Bangkok, Thailand.

21 June 2016 MPMAPerakBranchand IpohCityWatchco-organisedthe"PublicForumonThe ImpactofPlasticson theSustainabilityoftheEnvironment:ShouldPlasticsbeBanned?"attheWeilHotel,Ipohfor120participants.

29 July 2016 MPMA Perak Branch celebrated its 28th Anniversary Dinner at the Syeun Hotel, Ipoh. 840 guests attended the event.

On the same day, the 16th Annual Golf Tournament was held at the Meru Golf and Country Club for 47 participants.

12 - 15 September 2016

Magnum Plastic (M) Sdn Bhd, Sidney Industries Sdn Bhd and TS Plastics Sdn Bhd participated in the "Fine Food Melbourne Exhibition".

9 December 2016 MPMA Perak Branch organised a delegation to the 13thMalaysia InternationalBrandingShowcaseatPWTC,Kuala Lumpur.

18 February 2017 An appreciation dinner come 2016 Year End Gathering Dinner was held at the Sun Lee How Fook Restaurant for 126 members from 48 companies.

10.4 MPMA Sabah Branch

4 - 12 March 2016 DatukAlanAng,MPMASabahBranchChairman,participatedinanine-dayvisittoWuhan,Guangzhou,Shenzenand Macau. The trip was led by Special Tasks Minister, Datuk Teo Chee Kang and aimed at promoting two-way co-operation between entrepreneurs in China and Sabah.

23 May 2016 MPMA Sabah Branch held its 24th AGM of the 13th Term (2016 - 2018) followed by election of Office Bearers. The events were held at the May Flower Restaurant, Kota Kinabalu, Sabah.

10 October 2016 Courtesy visit to Datuk Yeo Boon Hai, Mayor of Kota Kinabalu, Sabah

Visit to Wuhan, Guangzhou, Shenzen and Macau to promote co-operation between China and Sabah


11. PLASTICS EAGLE-MPMA

11.1 Membership Composition

To-date, Plastics Eagle-MPMA has 177 members comprising:

Life Members : 71

Ordinary Members : 71

Associate Members : 33

Corporate Members : 2

TOTAL : 177

11.2 Plastic Eagle-MPMA Tournament

Date Eagles Tournament Sponsor

30 March 2016 Sonyu Trophy Mr Siow Sooi Yu

15 July 2016 Corvet Technologies Trophy Mr Yoshimi Takashi

8 December 2016 Annual Golf Tournament

24 March 2017 May Plastics Trophy Mr Steven Cheah

11.3 Plastic Eagle-MPMA Annual Golf Tournament

Plastics Eagle-MPMA held its Annual Game for 2016 on Thursday, 8 December 2016 at the Glenmarie Golf & Country Club. The event attracted about 83 Eagle members and guests.

Plastic Eagle-MPMA Annual Golf Tournament



1967 – 1969

MrSWGoh

(President for pro-tem Committee)

United Plastic Factory

1969 – 1971

MrThomasWong

Century Plastic

Sdn Bhd

1971 – 1973

MrThomasWong

Century Plastic

Sdn Bhd

1973 – 1975

MrThomasWong

Century Plastic

Sdn Bhd

1975 – 1977

MrThomasWong

Century Plastic

Sdn Bhd

1977 – 1978

MrThomasWong

Century Plastic

Sdn Bhd

1978 – 1980

Mr KC Tan (the late)

Lam Seng Plastics Industries

Sdn Bhd

1980 – 1982

Mr KC Tan

Lam Seng Plastics Industries

Sdn Bhd

1982 – 1984


Chong Wah Plastics Industries

Sdn Bhd

1984 – 1986


Chong Wah Plastics Industries

Sdn Bhd

1986 – 1988

Mr Johnny Yong

Yong Kam Fook Plastic Industries

Sdn Bhd

1988 – 1990

Mr Johnny Yong


Sdn Bhd

1990 – 1992

Dato’ Liew Sew Yee

Thong Fook Plastics Industries

Sdn Bhd

1992 – 1994



Sdn Bhd

yEAR 1980 – 1994yEAR 1967 – 1980

1994 – 1996



Sdn Bhd

1996 – 1998



Sdn Bhd

1998 – 2000

Mr Callum Chen

Lee Huat Plastics Industries

Sdn Bhd

2000 – 2002

Mr Callum Chen


Sdn Bhd

2002 – 2004

Mr Callum Chen


Sdn Bhd

2004 – 2006

Dato’ Peter CC Yong


Sdn Bhd

2006 – Present

Datuk Lim Kok Boon

Scientex Great Wall Sdn Bhd (formerly known as GW Packaging

Sdn Bhd)

yEAR 1994 – PRESENT

MPMA’s Presidents

This page has been intentionally left blank

52 Statement by Central Committee Members

53 Independent Auditors’ Report

Financial Statements

56 Statements of Financial Position

57 Statements of Comprehensive Income 58

Statement of Receipts and Payments

59 Notes to the Financial Statements

This page has been intentionally left blank


13 April 2017

Statement by Central Committee Members

We,beingthreeManagementCommitteeMembersoftheMALAySIAN PLASTICS MANuFACTuRERS ASSOCIATION, state

that in our opinion, the financial statements are drawn up so as to give a true and fair view of the Statement of Financial Position

as at 31 December 2016, Statement of Comprehensive Income and Statement of Receipts and Payments for the financial year

then ended on that date in accordance with the provision of the Societies Act 1966, the provision of the rules and regulation of

Association and the Malaysian Private Entities Reporting Standard in Malaysia.

Datuk Lim Kok Boon

President

Tan Cheow Ho

Treasurer

Eddie Fong Seak Foh

Secretary-General


Report on the Financial Statements

Opinion

WehaveauditedthefinancialstatementsofMalaysian Plastics Manufacturers Association which comprise the statement of

financial position as at 31st December 2016, and statement of profit or loss and other comprehensive income and statement of

receipts and payments for the financial year then ended, and a summary of significant accounting policies and other explanatory

notes, as set out on pages 56 to 72.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Association as at

31 December 2016, and of its financial performance and its receipts and payments for the year then ended in accordance with

Malaysian Private Entities Reporting Standard, the provision of the rules and regulation of Association and the requirements of

the Societies Act, 1966 in Malaysia.

Basis for Opinion

WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysiaandInternationalStandardsonAuditing

(‘ISA’). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial

Statementssectionofourreport.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovide

a basis for our opinion.

Independence and Other Ethical Responsibilities

“WeareindependentoftheAssociationinaccordancewiththeBy-Laws(onProfessionalEthics,ConductandPractice)ofthe

Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for

Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws

and the IESBA Code.

Management Committee Responsibility for the Financial Statements

The management committee is responsible for the preparation of financial statements so as to give a true and fair view in accordance

with Malaysian Private Entities Reporting Standard in Malaysia and the provisions of the rules and regulations of the Association.

The Council Members are also responsible for such internal control as the Council Members determine is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Management Committee is responsible for assessing the association’s ability to continue

as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting

unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so.

Independent Auditors’ Report To The Members of Malaysian Plastics Manufacturers Association


Independent Auditors’ Report To The Members of Malaysian Plastics Manufacturers Association

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is

a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in

Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we

exerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

i) Identify and assess the risks of material misstatement of the financial statements of the Association, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher

than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the

override of internal control.

ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control.

iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by Management Committee.

iv) Conclude on the appropriateness of Management Committee’s use of the going concern basis of accounting and, based on

the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant

doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are

required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’

report. However, future events or conditions may cause the Association to cease to continue as a going concern.

v) Evaluate the overall presentation, structure and content of the financial statements of the Association, including the disclosures,

and whether the financial statements of the Association represent the underlying transactions and events in a manner that

achieves fair presentation.

WecommunicatewiththeManagementCommitteeregarding,amongothermatters,theplannedscopeandtimingoftheaudit

and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Other Matters

As stated in Note 3.1 to the financial statements, Malaysian Plastics Manufacturers Associations adopted Malaysian Private Entities

Reporting Standard on 1 January 2016 with a transition date of 1 January 2015. These standards were applied retrospectively by

the Central Committee Members to the comparative information in these financial statements, including the statements of financial

position of the Association as at 31 December 2015, and the statements of comprehensive income, statements of changes in

equity, statements of income and retained earnings and statements of receipt and payment of the Association for the year ended

31December2015andrelateddisclosures.Wewerenotengagedtoreportontherestatedcomparativeinformationanditis

unaudited. Our responsibilities as part of our audit of the financial statements of the Association for the year ended 31 December

2016, in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 January

2016 do not contain misstatements that materially affect the financial position as at 31 December 2016 and the financial performance

and receipt and payments for the year then ended.

ThisreportismadesolelytothemembersoftheAssociation,asabody,andfornootherpurpose.Wedonotassumeresponsibility

to any other person for the content of this report.

YYC & CO.

No. AF 0055

Chartered Accountants

Yap Seong Fatt

No. 398/04/18 (J)

Chartered Accountant

Kuala Lumpur,

13 April 2017


Statements of Financial PositionAs at 31 December 2016

The accompanying notes from an integral part of these financial statements.

Note 2016 2015

RM RM

Non-current asset

Property, plant & equipment 5 982,823 966,078

Total non-current asset 982,823 966,078

Current assets

Inventories 6 1,553 5,777

Other receivables, deposits and prepayments 7 514,583 545,604

Fixed deposits with licensed banks 8 3,433,807 3,363,472

Cash and bank balances 9 489,641 456,758

Total current assets 4,439,584 4,371,611

Total assets 5,422,407 5,337,689

Financed by:

Accumulated fund 10 1,205,886 1,195,041

Building fund 11 2,023,219 2,023,219

Employees’ welfare fund 12 140,694 140,694

Founders’ fund 13 230,000 230,000

Membership fund 14 94,100 94,100

Scholarship reserves fund 15 353,083 249,083

Training fund 16 99,880 99,880

Total funds 4,146,862 4,032,017

Current liability

Other payables and accruals 17 1,275,545 1,305,672

Total current liability 1,275,545 1,305,672

Total liability 1,275,545 1,305,672

Total funds and liability 5,422,407 5,337,689


Statements of Comprehensive IncomeFor the financial year ended 31 December 2016


Note 2016 2015

RM RM

Income

Members' subscriptions 390,963 409,786

Seminars 639,278 526,103

Activities for generating funds 1,500,628 1,848,247

Other income 394,038 191,675

Total Income 2,924,907 2,975,811

Expenditure

Costs of seminars 291,588 288,457

Costs of generating funds 927,996 932,237

Staff related expenses 1,244,726 1,203,049

Professional fees 28,802 20,350

Depreciation 73,948 59,013

General expenses 347,002 438,798

Total Expenditures 2,914,062 2,941,904

Surplus Before Taxation 10,845 33,907

Taxation 18 - -

Surplus During the year 10,845 33,907


Statement of Receipts and PaymentsFor the financial year ended 31 December 2016

2016 2015

RM RM

Receipts

Members' subscriptions 502,166 395,816

Seminars 622,234 261,698

Activities for generating funds 1,594,307 1,774,704

Other income 409,906 333,092

Customer deposit - 424

Financing activity 144,000 67,500

Total receipts 3,272,613 2,833,234

Payments

Costs of seminars 235,939 288,457

Costs of generating funds 1,104,683 959,044

Staff related expenses 1,183,583 1,148,662

Professional fees 24,802 18,650

General expenses 504,545 492,379

GST expenses - 20

Capital expenses 75,843 58,055

Financing activity 40,000 9,600

Total payments 3,169,395 2,974,867

Surplus of receipts over payments 103,218 (141,633)

Balance brought forward 3,820,230 3,961,863

Balance carried forward 3,923,448 3,820,230

Cash and cash equivalents as at year end comprises:

Fixed deposits with licensed banks 3,433,807 3,363,472

Cash and bank balances 489,641 456,758

3,923,448 3,820,230



1. GENERAL INFORMATION

Amalgamation

The amalgamation consists of the Association, Plastics Technology Training Centre and Plastics Eagle-MPMA.

The organisation is trade association registered in Malaysia. The principal object of the Association is to promote, encourage,

foster, develop and protect by all lawful means the Plastics Industry.

The following Branches are part of and under the purview of the Malaysian Plastics Manufacturers Association. They operate

autonomously and have the responsibility to prepare separate financial statements which are required to be audited. The

addresses of the registered offices and principal places of activities are as follows:

Head Office

37, Jalan 20/14, Paramount Garden,

46300 Petaling Jaya, Selangor Darul Ehsan.

Perak Branch

15, Medan Istana 3, Bandar Ipoh Raya,

30000 Ipoh, Perak Darul Ridzuan.

Johor Branch

2A, Jalan Anggerik 2/4, Taman Anggerik,

81200 Johor Bahru, Johor Darul Takzim.

Plastics Technology Training Centre

i) Head Office

ii) Northern Branch

Plastics Eagle-MPMA

37, Jalan 20/14, Paramount Garden,

46300 Petaling Jaya, Selangor Darul Ehsan.

The financial statements of the Association are presented in the functional currency, which is the currency of the primary

economic environment in which the Association operates.

The total number of employees of the Assocation at the end of the financial year is 17 (2015:15).

Notes to the Financial StatementsFor the financial year ended 31 December 2016

Northern Branch

40, Jalan Bagan Satu,

Taman Bagan, 13400 Butterworth, Pulau Pinang.

Sabah Branch

11.2 KM, Jalan Tuaran,

89350 Inanam, Kota Kinabalu, Sabah.

Sarawak Branch

Lot 1370, Blk 12, MTLD, Sama Jaya Free Industrial

Zone, 93450 Kuching, Sarawak.


2. SIGNIFICANT ACCOuNTING POLICIES

The financial statements have been prepared in accordance with the Malaysian Private Entities Reporting Standard (“MPERS”)

deemed relevant and appropriated by Central Committee, the provision of rules and regulation of Association and the

requirements of the Societies Act, 1966.

The financial statements have been prepared on the historical cost basis other than as disclosed in Note 2.

The principal accounting policies adopted are set out below:

2.1 Property, plant and equipment

The cost of an item of property, plant and equipment is recognised as an asset when it is probable that future economic

benefits associated with the item will flow to the Association and the cost of the item can be measured reliably. After

recognition as an asset, an item of property, plant and equipment are measured at cost less any accumulated depreciation

and any accumulated impairment losses, except for freehold land and buildings.

Except for freehold land and properties under construction which are not depreciated, depreciation is provided on a

straight-line method so as to write off the depreciable amount of the following assets over their estimated useful lives,

as follows:

The principal annual rates adopted are as follows:-

Rate %

Buildings - 2% to 2.5%

Furniture, fittings & equipment - 10% to 20%

Freehold land - -

Depreciation of an asset begins when it is ready for its intended use.

If there is an indication of a significant change in factors affecting the residual value, useful life or asset consumption

pattern since the last annual reporting date, the residual values, depreciation method and useful lives of depreciable

assets are reviewed, and adjusted prospectively.

The carrying amounts of items of property, plant and equipment are derecognised on disposal or when no future economic

benefits are expected from their use or disposal. Any gain or loss arising from the derecognition of items of property,

plant and equipment, determined as the difference between the net disposal proceeds, if any, and the carrying amounts

of the item, is recognised in profit or loss. Neither the sale proceeds nor any gain on disposal is classified as revenue.



2.2 Impairment of assets, other than inventories and financial assets

At each reporting date, the Association assesses whether there is any indication that an asset may be impaired. If any

such indication exists, the recoverable amount of the asset is estimated.

Whenthereisanindicationthatanassetmaybeimpairedbutitisnotpossibletoestimatetherecoverableamountof

the individual asset, the Association estimates the recoverable amount of the cash-generating unit to which the asset

belongs.

The recoverable amount of an asset and a cash-generating unit is the higher of the fair value less costs to sell and value

in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset or a cash-generating unit is less than the carrying amount, an impairment loss is

recognised to reduce the carrying amount to its recoverable amount. An impairment loss for a cash-generating unit is

firstly allocated to reduce the carrying amount of any goodwill allocated to the cash-generating unit, and then, to the

other non-current assets of the unit pro rata on the basis of the carrying amount of each appropriate asset in the cash-

generating unit. Impairment loss is recognised immediately in profit or loss, unless the asset is carried at a revalued

amount, in which case it is treated as a revaluation decrease.

The recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less to sell, value in use and zero.

An impairment loss recognised in prior periods for an asset or the appropriate assets of a cash-generating unit is reversed

when there has been a change in the estimates used to determine the asset’s recoverable amount. An impairment loss

is reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been

determined, net of depreciation, if no impairment loss had been recognised in prior periods. A reversal of an impairment

loss is recognised immediately in profit or loss, unless the asset is carried at revalued amount, in which case it is treated

as a revaluation increase.

2.3 Financial assets

Financial assets are recognised in the statement of financial position when the Association becomes a party to the

contractual provisions of the instrument.

On initial recognition, financial assets are measured at transaction price, include transaction costs for financial assets

not measured at fair value through profit or loss, unless the arrangement constitutes, in effect, a financing transaction

for the counterparty to the arrangement.

After initial recognition, financial assets are classified into one of three categories: financial assets measured at fair value

through profit or loss, financial assets that are debt instruments measured at amortised cost, and financial assets that

are equity instruments measured at cost less impairment.


i) Financial assets at fair value through profit or loss

Financial assets are classified as at fair value through profit or loss when the financial assets are within the scope of

Section 12 of the MPERS or if the financial assets are publicly traded or their fair value can otherwise be measured

reliably without undue cost or effort.

Changes in fair value are recognised in profit or loss.

If a reliable measure of fair value is no longer available for an equity instrument that is not publicly traded but is

measured at fair value through profit or loss, its fair value at the last date that instrument was reliably measurable is

treated as the cost of the instrument, and it is measured at this cost amount less impairment until a reliable measure

of fair value becomes available.

ii) Financial assets that are debt instruments measured at amortised cost

After initial recognition, debt instruments are measured at amortised cost using the effective interest method. Debt

instruments that are classified as current assets are measured at the undiscounted amount of the cash or other

consideration expected to be received.

Effective interest method is a method of calculating the amortised cost of financial assets and of allocating the

interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimate future

cash receipts through the expected life of the financial assets or, when appropriate, a shorter period, to the carrying

amount of the financial assets.

iii) Impairment of financial assets

At the end of each reporting period, the Association assesses whether there is any objective evidence that financial

assets that are measured at cost or amortised cost, are impaired.

For certain category of financial assets, such as trade receivables, if it is determined that no objective evidence of

impairment exists for an individually assessed financial asset, whether significant or not, the assets are included in

a group with similar credit risk characteristics and collectively assessed for impairment.

Impairment losses, in respect of financial assets measured at amortised cost, are measured as the differences

between the assets’ carrying amounts and the present values of their estimated cash flows discounted at the assets’

original effective interest rate.

If there is objective evidence that impairment losses have been incurred on financial assets measured at cost less

impairment, the amount of impairment losses are measured as the difference between the asset’s carrying amount

and the best estimate of the amount that the Association would receive for the asset if it were to be sold at the

reporting date.



The carrying amounts of the financial assets are reduced directly, except for the carrying amounts of trade receivables

which are reduced through the use of an allowance account. Any impairment loss is recognised in profit or loss

immediately. If, in subsequent period, the amount of an impairment loss decreases, the previously recognised

impairment losses are reversed directly, except for the amounts related to trade receivables which are reversed

to write back the amount previously provided in the allowance account. The reversal is recognised in profit or loss

immediately.

iv) Derecognition of financial assets

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire, or

are settled, or the Association transfers to another party substantially all of the risks and rewards of ownership of

the financial assets.

On derecognition of financial assets in their entirety, the differences between the carrying amounts and the sum of the

consideration received and any cumulative gains or losses are recognised in profit or loss in the period of the transfer.

2.4 Cash and cash equivalents

Cash and cash equivalents in the statement of receipts and payments comprise cash and bank balances, short-term

bank deposits and other short-term, highly liquid investments that have a short maturity of three months or less from

the date of acquisition, net of bank overdrafts if any.

2.5 Financial liabilities

Financial liabilities are recognised in the statement of financial position when the Association becomes a party to the

contractual provisions of the instrument.

On initial recognition, financial liabilities are measured at transaction price, include transaction costs for financial liabilities

not measured at fair value through profit or loss, unless the arrangement constitutes, in effect, a financing transaction

for the Association to the arrangement.

After initial recognition, financial liabilities are classified into one of three categories: financial liabilities measured at

fair value through profit or loss, financial liabilities measured at amortised cost, or loan commitments measured at cost

less impairment.

i) Financial liabilities measured at fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss when the financial liabilities are within the

scope of Section 12 of the MPERS or if the financial liabilities are publicly traded or their fair value can otherwise be

measured reliably without undue cost or effort.


If a reliable measure of fair value is no longer available for an equity instrument that is not publicly traded but is

measured at fair value through profit or loss, its fair value at the last date that instrument was reliably measurable is

treated as the cost of the instrument, and it is measured at this cost amount less impairment until a reliable measure

of fair value becomes available.

ii) Financial liabilities measured at amortised cost

After initial recognition, financial liabilities other than financial liabilities at fair value through profit or loss are measured

at amortised cost using the effective interest method. Gains or losses are recognised in profit or loss when the

financial liabilities are derecognised or impaired.

Effective interest method is a method of calculating the amortised cost of financial liabilities and of allocating the

interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimate

future cash payments through the expected life of the financial liabilities or, when appropriate, a shorter period, to

the carrying amount of the financial liabilities.

iii) Loan commitments measured at cost less impairment

Commitments to receive loan that meet the conditions of Section 11 of the MPERS are measured at cost less impairment.

iv) Derecognition of financial liabilities

Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Any difference between the carrying amounts of the financial liabilities derecognised and the consideration paid is

recognised in profit or loss.

2.6 Employment benefits

i) Short-term employment benefits

Short-term employment benefits, such as wages, salaries and other benefits, are recognised at the undiscounted

amount as a liability and an expense when the employees have rendered services to the Association.

The expected cost of accumulating compensated absences are recognised when the employees render services that

increase their entitlement to future compensated absences. The expected cost of non-accumulating compensated

absences, such as sick and medical leaves, are recognised when the absences occur.

The expected cost of accumulating compensated absences are measured at the undiscounted additional amount

expected to be paid as a result of the unused entitlement that has accumulated at the end of the reporting period.

The expected cost bonus payment is recognised when the Association has a present legal or constructive obligation

to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present

obligation exists when the Association has no realistic alternative but to make the payments.



ii) Defined contribution plan

Contributions payable to the defined contribution plan are recognised as a liability and an expense when the

employees have rendered services to the Association.

2.7 Income tax

Tax expense is recognised in profit or loss, except that a change attributable to an item of income or expense recognised

as other comprehensive income is also recognised in other comprehensive income.

Tax payable on taxable profit for current and past periods is recognised as a current tax liability to the extent unpaid. If

the amount paid in respect of the current and past periods exceeds the amount payable for those periods, the excess

is recognised as a current tax asset.

Current tax assets and liabilities are measured at the amounts expected to be paid or recovered, using the tax rates

and laws that have been enacted or substantially enacted by the reporting date.

Current tax liabilities and assets are offset if, and only if the Association has a legally enforceable right to set off the

amounts and plan either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax is provided in full on temporary differences which are the differences between the carrying amounts in the

financial statements and the corresponding tax base of an asset or liability at the end of the reporting period.

Deferred tax liabilities are recognised for all taxable temporary differences that are expected to increase taxable profit

in the future. Deferred tax assets are recognised for all deductible temporary differences that are expected to reduce

taxable profit in the future and the carryforward of unused tax losses and unused tax credits.

Deferred tax liabilities and assets are not recognised in respect of the temporary differences associated with the initial

recognition of an asset or a liability in a transaction that is not a business combination and at the time of the transactions,

affects neither accounting profit nor taxable profit. Deferred tax liabilities are also not recognised for temporary difference

associated with the initial recognition of goodwill.

Deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Association

expects to recover or settle the carrying amounts of their assets and liabilities and are measured at the tax rates and

laws that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates that

have been enacted or substantially enacted by the reporting date.

2.8 Foreign currency transactions

Transactions in foreign currencies are initially recognised in the functional currency by applying to the foreign currency

amount the spot exchange rates between the functional currency and the foreign currency at the date of the transactions.


At the end of each reporting period, foreign currency monetary items are translated using the closing rate. Non-monetary

items that are measured at historical cost in a foreign currency are translated using the exchange rates at the date

of the transactions. Non-monetary items that are measured at fair value in a foreign currency are translated using the

exchange rates at the date when the fair value was determined.

Exchange differences are recognised in profit or loss in the period in which they arise except when a gain or loss on a

non-monetary item is recognised in other comprehensive income. If so, any exchange differences relating to that gain

or loss is recognised in other comprehensive income.

2.9 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction would

flow to the Association, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction

can be reliably measured and specific recognition criteria have been met for each of the activities of the Association

as follows:

i) Members’ subscription and miscellaneous income

Income from members’ subscription and miscellaneous are recognised where the period related to and on an

accrual basis.

ii) Interest and rental income

Interest and rental income are recognised on an accrual basis.

iii) Rendering of services

Income from services is recognised on the performance of services rendered.

iv) Investment income

Dividend income from investment is recognised in the income statement when the right to receive is established.

2.10 Inventories

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost of

inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories

to their present location and condition. Cost of inventories is measured by using the First-in First-out (‘FIFO’) method.



3. TRANSITION TO THE MPERS

3.1 Basis of transition to the MPERS

The Association’s financial statements for the year from 1 January 2016 to 31 December 2016 are the first financial

statements prepared in accordance with the MPERS, which is the beginning of the earliest period presented.

The Association’s transition date is 1 January 2015. The Association prepared its opening MPERS statement of financial

position at that date.

The Association has applied all the mandatory exceptions and certain of the optional exemptions from full retrospective

application of the MPERS. Previously, the Association presents the most recent financial statements using Private Entity

Reporting Standards (“PERS”).

The Association has also chosen to early adopt the limited amendments issued by the MASB, which are effective for

annual periods on or after 1 January 2017.

4. CRITICAL ACCOuNTING JuDGEMENTS AND KEy SOuRCES OF ESTIMATION uNCERTAINTy

4.1 Critical judgements in applying the accounting policies

There were no critical judgements made by the Management Committee in the process of applying the accounting

policies of the Association which may have significant effect on the amounts recognised in the financial statements.

4.2 Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next

year, other than those disclosed in the Notes, are as follows:

i) Depreciation of Property, Plant and Equipment

The cost of an item of property, plant and equipment is depreciated on the straight-line method or another systematic

method that reflects the consumption of the economics benefits of the asset over its useful life. Estimates are applied

in the selection of the depreciation method, the useful lives and the residual values. The actual consumption of the

economic benefits of the property, plant and equipment may differ from the estimates applied and this may lead to

a gain or loss on an eventual disposal of an item of property, plant and equipment.


5. PROPERTy, PLANT AND EquIPMENT

At 1 January 2016 Additions Disposals

At 31 December 2016

RM RM RM RM

Cost

Buildings 1,225,113 - - 1,225,113

Furniture, fittings and

equipment 761,104 91,234 (1,013) 851,325

Freehold land 306,278 - - 306,278

2,292,495 91,234 (1,013) 2,382,716

Accumulated depreciation

Buildings 691,826 25,717 - 717,543


equipment 634,591 48,231 (472) 682,350

Freehold land - - - -

1,326,417 73,948 (472) 1,399,893

Carrying amount Depreciation

2016 2015 2016 2015

RM RM RM RM

Buildings 507,570 533,287 25,717 25,718


equipment 168,975 126,513 48,231 33,295

Freehold land 306,278 306,278 - -

982,823 966,078 73,948 59,013

a) The title deed of the Northern Branch freehold land and building is registered in the name of Mayban Trustees Berhad.

However, with reference to the Rule 16 of the Association’s Rules (Amended) which is approved by the Registrar of

Societies:-

‘’All landed properties of the Association to be registered in the name of the Association.’’

b) Central Committee has instructed Management Committee of the Northern Branch to act on on this matter.



6. INVENTORIES

7. OTHER RECEIVABLES, DEPOSITS AND PREPAyMENTS

8. FIxED DEPOSITS

Fixed deposits amounting to RM 3,433,807 (2015: RM 3,363,472) are deposited with the licensed banks.

9. CASH AND BANK BALANCES

2016 2015

RM RM

Subscription receivable from member 6,678 26,733

Refundable deposits 38,353 12,575

Golf game entrance fee receivables 31,430 20,751

Amounts receivables from members: 28,490 55,265

Seminar debtors 186,298 261,141

Prepayment - 14,425

Other debtors 223,334 154,714

514,583 545,604

2016 2015

RM RM

At cost:

Consumable goods 1,553 5,777

2016 2015

RM RM

Cash in hand and at bank 489,641 456,758


10. ACCuMuLATED FuND

11. BuILDING FuNDS

12. MEMBERSHIP FuNDS

13. FOuNDERS’ FuND


2016 2015

RM RM

Balance at beginning of the year 1,195,041 1,161,134

Surplus during the year 10,845 33,907

Balance at end of the year 1,205,886 1,195,041

2016 2015

RM RM

Balance brought forward 2,023,219 2,023,219

Donation received - -

Balance carried forward 2,023,219 2,023,219

2016 2015

RM RM

Balance brought forward 140,694 140,694


Balance carried forward 140,694 140,694

2016 2015

RM RM





14. MEMBERSHIP FuND

15. SCHOLARSHIP RESERVE FuND

16. TRAINING FuND

2016 2015

RM RM




2016 2015

RM RM




2016 2015

RM RM

At 1 January 249,083 191,183

Total receipts 144,000 67,500

Total payments (40,000) (9,600)

At 31 December 353,083 249,083



17. OTHER PAyABLES AND ACCRuALS

18. TAxATION

No taxation is required because the Association has no chargeable income.

The Association has taxable losses available for carry forward against future taxable profits. No provision has been

made for a deferred tax asset in respect of the excess of these losses in view of the uncertainty as to when these will

be fully recoverable.

19. ExPLAINATION OF TRANSITION TO MPERS

The Association has adopted the MPERS Framework during the financial year ended 31 December 2016. Accordingly, these are the first financial statements of the Association prepared in accordance with MPERS. The date of transition to MPERS is 1 January 2015.

The accounting policies set out in Note 2 to the financial statements have been applied in preparing the financial statements of the Association for the financial year ended 31 December 2016, as well as comparative information presented in these financial statements for the financial year ended 31 December 2015.

The transition to MPERS does not have significant financial impact to the financial statements of the Association.

20. DATE OF AuTHORISATION FOR ISSuE

The Central committee had authorised the financial statements to be issued on 13 April 2017.

2016 2015

RM RM

Advances from MPMA Holdings Sdn. Bhd. - 18,000

PS media fund 472,532 651,705

Accrued expenses 147,041 189,650

Deposit received - 9,950

Deposit refundable 11,582 17,500

Customer deposit - 424

Advertorial on plastic 180,384 218,544

Other creditor 464,006 199,899

1,275,545 1,305,672

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION

37, Jalan 20/14, Paramount Garden, 46300 Petaling Jaya, Selangor, Malaysia

Tel: 603-7876 3027 Fax: 603-7876 8352 E-mail: [email protected]

URL: www.mpma.org.my

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION AR2017-new.pdf · The Malaysian Plastics Manufacturers...

Documents

Transcript of MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION AR2017-new.pdf · The Malaysian Plastics Manufacturers...