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@FMM Business Business in in Action Action KDN NO: PP 16730/08/2012 (030376) Nov/Dec 2013 VOL 6/2013 www.fmm.org.my Identifying Opportunities, Accelerating Growth Removal of GSP and Its Impact on Malaysian Manufacturers PEMUDAH’s 6-year Journey to Top 10 in Global Competitiveness MOU with Indonesia Partner during Interfood 2013 in Indonesia FMM’s Comments on the National Budget 2014

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Page 1: Business - fmm.org.my BIA NOVDEC 2013 .pdf@FMM Business in Action KDN NO: PP 16730/08/2012 (030376) Nov/Dec 2013 VOL 6/2013 Identifying Opportunities, Accelerating Growth Removal of

@FMMBusinessBusinessin in ActionAction

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

Nov/Dec 2013VOL 6/2013

www.fmm.org.my

Identifying Opportunities,Accelerating Growth

Removal of GSP and Its Impact on Malaysian Manufacturers

PEMUDAH’s 6-year Journey to Top 10 in Global Competitiveness

MOU with Indonesia Partner during Interfood 2013 in Indonesia

FMM’s Comments on the National Budget 2014

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PUBLISHED BYFederation of Malaysian ManufacturersWisma FMM No 3, Persiaran Dagang PJU 9Bandar Sri Damansara52200 Kuala LumpurTel: 03-62867200 Fax: 03-62741266/7288Email: [email protected]: www.fmm.org.my

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

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

EditorialADVISORDr Yeoh Oon TeanChief Executive Officer

EDITORIAL TEAMMadeline LohGeneral Manager (Trade)Ng Lee LeeSenior ManagerInternational Business DivisionFlorance S GabrielAssistant ManagerCommunications and Publications Unit

ADVERTISEMENTSKenny LeeMarketing Unit (+6012-383 3857)

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

© Copyright Reserved

Contents

FEDERATION OFMALAYSIANMANUFACTURERS

Cover Story

03 Removal of GSPand Its Impact onMalaysian Manufacturers

News Highlights

06 FMM’s Comments on theNational Budget 2014

07 Identifying Opportunities,Accelerating Growth

08 PEMUDAH’s 6-year Journey toPush Malaysia into the Top 10in Global Competitiveness

10 Seminar on FurtherLiberalisation of ForeignExchange Administration Rules

11 Conference onDriving Export Sales

12 MOU with Indonesian Partnerduring Interfood 2013 in Indonesia

Logistics Trends &Best Practices forBusiness Efficiency

14 Energy Efficiency ActionPlans in Mitigating EnergySupply Challenges

15 Resolving Duty Exemptionand Drawback Issueswith MIDA andRoyal Malaysian Customs

16 Events In Pictures

Market Alerts

20 Indonesian Market AttractsAttention of Car Makers

Branch Events

22 Kedah/Perlis

24 Perak

Johor

25 Selangor

26 Negeri Sembilan

Sarawak

28 Eastern

Malacca

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Nov – Dec 2013 | BIA@FMM 03

Feature

Over 150 participants attended the FMM Seminar on theRemoval of Generalised Scheme of Preference (GSP):

Impact on Malaysian Companies held on September 19,2013. Based on the feedback received from participants,FMM noted that the majority of companies were notprepared for the removal of the European Union (EU)GSP. Companies had expectations that the conclusionand implementation of the Malaysia-EU Free TradeAgreement (MEUFTA) in early 2014 would mitigate theimpact of the removal of the EU GSP on the affectedproducts. The following concerns were raised atthe Seminar:

• Loss in Malaysia’s export competitiveness relative toother neighbouring countries including Indonesia,Thailand and Vietnam that will continue to enjoyGSP after 2014;

• Loss in competitive advantage compared to Singaporethat had concluded negotiations for FTA with the EUthat is expected to be signed in 2013;

• Possible relocation of a number of multinationalcompanies to ASEAN countries that continue toenjoy GSP preferential tariffs;

Removal of GSP and Its Impact onMalaysian Manufacturers

FMM Council Member John Lee (right) with Alessandro Paolicchi,Head of Trade & Economic Relations, Delegation of European Union

in Malaysia attending to questions from participants

(continue on page 4)Participants of the Seminar on September 19, 2013

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Feature

• EU is a major export market for Malaysianmanufacturers of seafood, industrial machineryand parts, chemical, food, gloves, furniture, electricand electronics and bicycles and these manufacturersdepended on the GSP scheme for competitiveadvantage; and

• EU investments in Malaysia would be affected asMalaysian exports will be levied higher import duty.

Several recommendations were proposed by participantsto mitigate the impact of Malaysia’s graduation from theEU GSP scheme. They include:

• As Malaysian manufacturers are dependent on tradewith its traditional markets i.e. with the EU and US, boththe Trans Pacific Partnership Agreement (TPPA) andthe Malaysia-EU Free Trade Agreement (MEUFTA) areequally important to the manufacturing sector. It istherefore recommended that both these agreements benegotiated concurrently to enable industries to benefitfrom early conclusion of both the agreements;

• Establish an early harvest scheme as part of theMEUFTA for non-agriculture products. This wouldhelp manufacturers to remain competitive comparedto other countries in ASEAN and China;

• Advocate for EU to permit the adoption of the ASEANcumulation mechanism whereby products manufacturedin Malaysia can be used as inputs in the products ofanother ASEAN beneficiary country. This will enablea manufacturer in the ASEAN beneficiary country to

qualify his products for the EU GSP Scheme underASEAN cumulation. In such cases, Malaysian MITI willcontinue to issue GSP Form A for products that areexported to the ASEAN beneficiary country providedthe products have qualified for GSP status in their ownright in Malaysia. Singapore enjoyed ASEAN cumulationsince May 1, 1998 when it graduated from the EU GSPscheme. The ASEAN cumulation rule was onlywithdrawn recently from Singapore;

• Negotiate for EU to allow applications for the back-to-back GSP Form A for the re-export of ASEAN-originproducts from Malaysia to the EU. Malaysian issuedGSP Form A will be supported by the GSP Form A fromthe issuing ASEAN originating country. Singaporeanexporters continue to enjoy this privilege sinceMay 1, 1998 until 2012 when this arrangement wasdiscontinued; and

• Government provides tax relief for any loss in incomesuffered by Malaysian exporters on account of theabsorption of duties (payable by EU importers) followingthe removal of GSP for a period of three years or untilthe Malaysia-EU FTA is concluded.

FMM submitted the above proposals to the Minister ofInternational Trade and Industry on September 24, 2013.In the letter, FMM urged MITI to expedite the earlyconclusion of the MEUFTA as the withdrawal of the GSPis imminent and is expected to impact negatively on thecompetitiveness of Malaysian manufacturers and theattractiveness of Malaysia as a destination for investment.

(continued from page 3)

The Generalised System of Preference (GSP) is a system where developed countries grant preferential treatmentto eligible products imported from developing countries. Malaysia has been a recipient country under theEuropean Union (EU) GSP since 1971.

On October 31, 2012, EU formulated a new GSP policy which would come into force on January 1, 2014.With this new GSP policy, Malaysia will no longer be a recipient of the Scheme effective January 1, 2014 asMalaysia has been listed as an upper middle income economy (based on Gross National Income compiled bythe World Bank). The use of Form A for exports to the following 27 European Union countries and Turkey will,therefore, expire on December 31, 2013: • Austria • Finland • Latvia • Romania• Belgium • France • Lithuania • Slovakia• Bulgaria • Germany • Luxembourg • Slovenia• Cyprus • Greece • Malta • Spain• Czech Republic • Hungary • Netherlands • Sweden• Denmark • Ireland • Poland • United Kingdom• Estonia • Italy • Portugal

However, Malaysian exporters can still use Form A to apply for GSP to Russia, Belarus, Switzerland, Norway andJapan until further notice from MITI.

FMM has been informed that some Custom Authorities will reject the FORM A of goods arriving on January 1,2014. Manufacturers and exporters are thus advised to apply for the FORM A early and make the necessaryarrangements to ensure that the goods arrive at the destination before January 1, 2014.

Information on the GSP rate can be obtained fromhttp://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp? Lang=en&SimDate=20121129

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FMM commends the Government for the steps taken to further reduce the budget deficit and the measures to assistthe rakyat in the lower and middle income groups. Although the economic forecast is relatively positive, recent feedbackfrom the manufacturing sector indicates some slowing down of economic activities at company level. This may posechallenges in realising the expected outcomes of the National Budget initiatives.

Implementation of the Goods andServices Tax (GST)The announcement to implement the GST in order tostrengthen the government’s financial position is notunexpected. FMM maintains that this will impose aheavy compliance burden on manufacturers especiallythe SMEs that constitute 98.5 % of businesses.

Given the thousands of companies involved, FMM isconcerned about the implementation capacity ofgovernment agencies to disburse GST-related facilitiesand grants to SMEs. In addition, FMM seeks greaterclarity and certainty about mechanisms for timely refundson input GST, which remain a main concern for exporters.

The 6% GST rate is higher than anticipated andmanufacturers request for this rate to be maintained fornot less than 5 years from the date of implementation. We

note that regional countries with higher rates of GST hadincreased their rates incrementally over a period of time,for example Singapore took nine years to increase theirGST rate from 3% to 4%; and another four years to 7%.

The Federation is also of the view that the reduction incorporate tax rates following the implementation of theGST is not sufficiently aggressive to enhance Malaysia’sattractiveness as a destination for foreign investmenttaking into account the current corporate tax rates inneighbouring economies. A higher reduction would havebeen welcome.

However, FMM welcomes the restructuring of thepersonal income tax brackets which extends themaximum chargeable income rate from exceedingRM100,000 to exceeding RM400,000. This has been ourrecommendation to the Government for the purpose ofattracting and retaining talents in the country.

FMM’s Comments on the National Budget2014

News Highlights

(continue on page 7)

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Nov – Dec 2013 | BIA@FMM 07

Strengthening Skills TrainingFMM welcomes the budget strategies on human capitaldevelopment namely:

• The allocation of RM400 million from the HRDF forupskilling and reskilling of employees, as well as for thetraining of apprentices and future workers, which wouldhelp to further build-up the pool of skilled workers andalleviate the current shortages of skills.

• Manufacturers look forward to greater details on theseinitiatives particularly on the qualifying criteria and/oractivities as well as the eligible sectors to receivesuch assistance. There should be transparency inthe disbursement of these funds so as to maximisethe access to these benefits on an equitable basis.

• The Flexible Work Arrangement programme could helpto improve productivity, particularly to increase theparticipation of the latent workforce and the supplyof manpower.

Strengthening Small and MediumEnterprises (SMEs)The 2014 National Budget had introduced a number ofincentives for SMEs, most notably for the manufacturingsector are:

• A further tax deduction on the difference in wagesbetween the old and new rates paid by SME employersfor the period of January 1, 2014 to December 31, 2014in view of the implementation of the minimum wage;

• Allocation of RM120 million for an integratedpackage to increase innovation and productivitytogether with the extension of existing incentivesup to December 2017.

• FMM is of the view that the allocation for theintegrated package could be further enhancedconsidering that SMEs are a sizeable population,accounting for up to 98.5% of the registeredbusinesses in the country.

News Highlights

The Conference was selected by theGovernment as one of the satellite eventsof the 4th Global Entrepreneurship Summit(GES 2013) to prepare delegates andpotential delegates for the GES 2013. Over4,700 delegates from more than 100 countriesattended the GES 2013 which was officiatedby YAB Dato’ Sri Mohd Najib Tun Hj AbdulRazak and John Kerry, Honorary US Secretaryof State.

The FMM Innovation Conference 2013 wasofficiated by YB Datuk Dr Ewon Ebin, Ministerof Science, Technology & Innovation, Malaysia.In his speech, Datuk Dr. Ewon highlighted thatcompanies which are innovative and generatenew products and services speedily into themarkets are the ones that record the fastestgrowth of their market shares.

Tan Sri Dato’ Sri Lim Wee Chai, Chairmanof Top Glove Corporation Bhd presented theKeynote Address on “The World’s Largest

The FMM Innovation Conference 2013 with the theme “Identifying Opportunities, Accelerating Growth” was held onOctober 1, 2013 and attracted 122 participants comprising business leaders, new product development, innovation and

marketing personnel from various industry sectors.

Identifying Opportunities, Accelerating Growth

The panelists of the FMM Innovation Conference 2013 during theQuestion and Answer Session

Rubber Glove Company – The Innovation Journey”. Tan Sri Lim stressed the importance of being optimistic, paying attentionto detail and quality of leadership in mitigating challenges and in charting the development of Top Glove Corporation.“This FMM Innovation Conference is certainly a good learning experience for me. It opens up our eyes, mind and heartto what innovation is all about. A simple idea can become a gem of diamond,” said Chan Kok Khan, General Manager ofPenfabric Sdn Bhd.

(continued from page 6)

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I would like to share the 6-year journey from25th to 6th rank in DB rankings. PEMUDAHwas set up by the then Prime Minister,Dato’ Seri Abdullah Ahmad Badawi mainlyto address weaknesses in public servicedelivery and continuous civil service‘bashing’ in the media. He wanted to adopta fresh approach and saw the value of ajoint private-public sector committee inimproving public service delivery.

A small group of 23 leaders from both theprivate and public sectors was appointedto the Task Force which was co-chaired bythe then Chief Secretary to the Governmentof Malaysia, Tan Sri Mohd Sidek HajiHassan and me. The Vision adopted atthe first meeting was to have ‘a globallybenchmarked, customer-centric, innovativeand proactive service in support of avibrant, resilient and competitive economyand society’. This Vision was underpinned by the followingvalues: A Sense of Urgency, Proactive Public-PrivateSector Collaboration, Facilitation, not Hampering; No moreRegulation than Necessary; Zero Tolerance for Corruption.We announced our aim to be among the top 10 mostcompetitive economies globally.

How did PEMUDAH deliver on the promise? A sharedvision, a common multiagency platform, commitment andclear rules of engagement contributed to delivering theoutcomes. Meetings were scheduled at the beginning ofthe year, fixed on the last Friday of each month, exceptwhen Parliament was in session when meetings wereconvened on Tuesdays. Setting meeting dates earlyensured high attendance at meetings where no alternatemembers were permitted.

The commitment of members was not only confined to themonthly meetings of the Task Force as PEMUDAH workedthrough two main Working Groups (WG) and more than 10Focus Groups (FG) which focused on specific areas. Eachgroup was chaired either by the public or private sector andreported progress on a monthly basis to the main TaskForce. No allowances of any kind were paid and memberscontributed voluntarily for the common good.

The WG on Efficiency Issues focused on operationalefficiency including licensing, e-payments and immigration-related matters. The WG on Policy Issues deliberated onnational competitiveness issues like FIC, liberalisation,education, FTAs, etc. The FGs covered specific issueslike paying taxes, registering property, enforcing contracts,business processes, operations of DBKL to name afew. While membership in PEMUDAH was confined toappointed members, membership in the WGs and FGswas wider.

To enhance awareness by the business community andcitizens, the Secretary Generals/Heads of Ministries/Agencies wrote articles in the press and publicised theiremail addresses to enable direct communications to bedirect and instantaneous and the media used to publiciseimprovements made. PEMUDAH was supported by astrong secretariat in the Ministry of Trade and Industry(MITI) that issued minutes of meetings within 48 hours tofacilitate quick follow-ups to decisions made.

The key improvements to public service delivery werevaried with significant gains registered in many areas.A case in point is the issuance of construction permits,ranked 137th in 2007. Datuk Arpah binti Abdul Razak,

An Ambition Realised PEMUDAH’s 6-year Journey to Push Malaysiainto the Top 10 in Global Competitiveness

PEMUDAH or The Special Task Force to Facilitate Business Malaysia’s ambition to be ranked among the top 10in the world was realised when Malaysia was ranked 6th in the World Bank Ease of Doing Business Report 2014 (DB 2014),up from 12 in 2013 and 25 in 2007 when PEMUDAH was established. PEMUDAH is public and private sector partnership,established in 2007 to improve the ease of doing business in Malaysia and to enhance the nation’s competitiveness.This achievement is very significant as Malaysia competed with 189 economies to be counted among the best in a racewhere competition was intense and benchmarks were high.

News Highlights

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then DG of Local Government Department and currentlythe SG of the Ministry of Housing and Local Governmentset up One Stop Centres (OSC) which allowed concurrentsubmission of all applications. OSC then obtainedapprovals from all technical agencies within a stipulatedtime-frame. Datuk Seri Hj. Ahmad Phesal bin Hj Talib,Mayor of Kuala Lumpur further streamlined theprocedures/timelines. Timelines for approvals wasreduced from 420 days to 100 days while proceduresdeclined from 39 to 10. Malaysia’s rankings inconstruction permits leapfrogged to 43rd in DB 2014.

Another area of significant improvement was registeredwas Trading Across Borders. Datuk Dr Rebecca FatimaSta Maria, SG of MITI chaired a multi-agency FGcomprising Customs, Ministry of Transport, Ministry ofFinance and permit issuing agencies to reduce time takento import and export though pre-clearance of cargo andreducing documentation for such transactions. The workof this FG improved Malaysia’s rankings from 46th to 5th

in the six years.

In streamlining processes to start and close a business,credit is due to Datuk Abdul Karim bin Abdul Jalil, formerChief Executive of the Companies Commission ofMalaysia (CCM) and his team. Today, you can start abusiness in one hour compared to 3 days in 2007.In addition, the introduction of the Malaysian CorporateIdentity (MyCoID) by the Malaysian AdministrativeModernisation and Management Unit has also contributedto Malaysia’s ranking improving from 71st to 16th in 2014.The ranking will strengthen further with the impendingintroduction of a new Companies Act by En. Mohd. NaimDaruwish, CCM Chief Executive that will further reducecosts and improve efficiency.

Malaysia’s ranking in Paying Taxes was 49th in 2007,15th last year and 36th in DB 2014. Several initiativeswere implemented by Tan Sri Hasmah Abdullah, formerCEO of the Inland Revenue Board (IRB) and Dato’Dr Mohd. Shukor bin Haji Mahfar, the current CEO tofacilitate electronic services, prompt refunds of overpaidtaxes and enhance transparency of the tax process.Tan Sri Hasmah reported that she received more than500 messages on the day her email was made public anda special mechanism was set up to allow her to reply toeach of them. Such was the commitment of this formercivil servant.

Businesses used to complain about the backlog of casesin the courts and often commercial contracts includedprovisions for determining courts to be in Singapore.The former Chief Justice (CJ) Tun Zaki bin Tun Azmi andthe current CJ, Tun Ariffin bin Zakaria were instrumental in

motivating their team to clear the backlog. They also tookup PEMUDAH’s proposal for New Commercial Courts tobe established with a client charter of resolving all newcommercial cases within a nine month period – a timelinethat is world class by any standards. The transformationand improved rankings from 81st in 2007 to 30th in DB2014 was the subject of a special report by the WorldBank on Malaysia as a best practice. Rankings willimprove further as the focus moves to the enforcementof judgements.

We have experienced the speed of issuance and renewalof passports, due largely to the work of past and presentDirector Generals of Immigration, including Tan SriMahmood Adam, who subsequently assumed the positionof SG Ministry of Home Affairs. He also adopted andadapted PEMUDAH’s point system for evaluatingeligibility for Permanent Residence and made it easier forforeign spouses and expatriates to work here.

When the proposal to disband the FIC was presentedto the Prime Minister, Dato’ Seri Mohd Najib, he wasdecisive. The decision has contributed significantly toimproving the investment climate for Malaysia.

The 6-year journey of PEMUDAH is evidence that with theright focus and the right commitment by the right parties,our rankings in world benchmarked public services can beeven higher. It also indicates the power of public-privatesector collaboration as a common and effective platformin moving the Malaysian development agenda forward.

I wish to congratulate all members of the civil service,past and present and to thank my private sector friendswho have contributed to the incredible journey ofPEMUDAH. A special word of thanks to the formerChair, Tan Sri Mohd Sidek Haji Hassan, for his strongleadership and for throwing the challenge to be top 10at us – we have done it in partnership with everyone.I am confident that Tan Sri Dr Ali Hamsa, Chief Secretaryto Government of Malaysia and the new private sectorCo-chair, Dato’ Saw Choo Boon, will be successful inmaintaining or improving Malaysia’s ranking evenfurther with the continued support of the private andpublic sectors.

Tan Sri Yong Poh Kon

(Tan Sri Yong stepped down as Co-Chair of PEMUDAH inSeptember 2013. He is the current President of theFederation of Malaysian Manufacturers and the ManagingDirector of Royal Selangor)

The article was published in Berita Harian (October 31, 2013),The Star (October 31, 2013) & The Malaysian Insider (October 31,2013)

News Highlights

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News HighlightsNews Highlights

Seminar on Further Liberalisation ofForeign Exchange Administration Rules

BNM Governor Tan Sri Dr ZetiAkhtar Aziz was quoted sayingduring the launch of the BankNegara Report 2012 that “…the measures were in line with theFinancial Sector Blueprint’s agendato achieve a more developedforeign exchange market. Malaysiais an open economy, therefore,we should have a well-developedforeign exchange market to supportit…”.

Senior officials from the ForeignExchange AdministrationDepartment of Bank Negaraconducted a one-day seminar forFMM members on September 3,2013 on the key changes to the FEAprovisions which are now reflectedunder several Sections under theFSA and IFSA. The provisionsprovide a policy framework inmanaging the balance of paymentsand the value of Ringgit which issummarised in the Diagram.

• Free to undertake anticipatory hedging on financial account transactions involving Ringgit with licensed onshore banks (excluding international Islamic banks)• Free to invest in onshore foreign currency-denominated assets offered by residents• Free to issue any securities (including warrants) provided issuance of debt securities to non-residents are subject to the prevailing rules on borrowing from non-residents

• Free to undertake anticipatory hedging on current account transactions involving Ringgit with licensed onshore banks (excluding international Islamic banks)• Free to issue foreign currency securities in Malaysia

• Licensed takaful operators free to undertake investments abroad of any amount on behalf of their resident clients• Licensed insurers and takaful operators to undertake investments abroad of any amount for own account

Residents

Non-residents

Others

Liberalisation in the FEA policy include:

With the coming into effect of the Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013(IFSA), Bank Negara Malaysia (BNM) with effect from June 30, 2013 liberalised the Foreign Exchange Administration

(FEA) rules. Bank Negara Malaysia on June 28, 2013 revoked all Exchange Control Measure (ECM) notices and relatedcircular letters and issued seven (7) Notices in exercise of the powers conferred by subsections 214(2), (5), (6) andsection 261 of the FSA and subsections 225(2), (5), (6) and section 272 of the IFSA. The liberalised FEA rulesare prudential measures aimed at further developing the domestic financial market and enhancing the economy’scompetitiveness through the creation of a more supportive and facilitative environment for trade, business and investment.

(continue on page 11)

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News Highlights

Conference on Driving Export Sales

The second FMM Export Conference with the theme Driving Export Sales was organised on October 31, 2013 andofficiated by the Deputy Minister of International Trade and Industry, YB Datuk Ir Hamim Samuri. In his speech,

the Deputy Minister highlighted that the World Trade Organisation (WTO), in its September 2013 review, had reviseddownwards its forecast for global trade growth for 2013 and 2014.

The ECMs have been consolidated into seven (7)Notices covering the following areas:Notice 1: Dealings in currency, gold and ther precious metals Notice 2: Borrowing and guarantee Notice 3: Investment in foreign currency asset Notice 4: Payments Notice 5: Security, Islamic security, financial instrument or Islamic financial instrument Notice 6: Import and export of currency Notice 7: Export of goods

Specifically for exporters, Notice 7 on Exports of goodshighlighted that exporters must receive export proceedsin full value in Malaysian Ringgit or foreign currency andpayment must be received not later than six months fromthe date of export. Permission is required:• To offset or write-off export proceeds; and • To seek an extension of the period to receive export

proceeds later than the six months from the date ofexport. Permission must be obtained before the six-month period ends.

Exporters with an annual exports exceeding RM50 millionequivalent in the preceding year are required to submit areport online no later than 21 days after the end of eachreporting quarter.

Full details of the FEA Notices are available at BNM’swebsite on http://www.bnm.gov.my/index.php?lang=en&ch=en_newfea&pg=en_newfea_circulars&ac=1&eId=box1.

The participants who attended the Seminar on September 3, 2013

YM Raja Dato’ Abdul Aziz, FMM Vice President (2nd left) presentinga token of appreciation to YB Datuk Ir Hamim Samuri whileDato’ Zulkifli Mahmud (left) and HE Luc Vandebon look on

(continued from page 10)

In 2014, the WTO forecast this growth to be 4.5%.As the road ahead would be more challenging, companieswould therefore have to take steps to enhance theircompetitiveness. This could be through research anddevelopment, innovation and technology.

One of the key highlights of the Conference was thesharing of corporate experiences by three FMM membersie Top Glove Corporation Bhd, MS Elevator Group andGB Industries Sdn Bhd on how they have successfullyexpanded their international business in challenging times.

Given the recent announcement on the implementationof the Goods & Services Tax on April 1, 2015, Tan EngYew, Executive Director of Deloitte Malaysia spoke on thekey impact of GST on businesses including costs,cash flow, pricing and what exporters should do inpreparation for GST implementation.

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News Highlights

Over 147 logistics and supply chain personnel participated in the FMM National Shippers’ Conference 2013 to gainupdates on the latest trends and best practices in logistics. The Conference held on August 22, 2013 was officiated

by Dato’ Abdullah Yusuff Basiron, Under Secretary of Maritime Division, Ministry of Transport, Malaysia. In his keynoteaddress, Dato’ Abdullah shared the Ministry’s transportation policies and projects that will impact on exporters and importers.

Logistics Trends & Best Practices forBusiness Efficiency

Federal Agriculture Marketing Authority (FAMA)was among the eight companies which participatedat the FMM Pavillion at the recent Interfood 2013held from August 28 – 31, 2013 in Jakarta, Indonesia.A signing ceremony was held at the fairgroundbetween FAMA and its local partner, PT ImmunoLestari Makmur, appointed as the marketing agent forFAMA in Indonesia.

Arianpour Sdn Bhd, manufacturer of fruit juicesin Malaysia was able to source five potentialdistributors from the Fair. Other exhibitors whoparticipated this year are Biofact Life Sdn Bhd,Sydney Cake House Sdn Bhd, Erat SemarakSdn Bhd, Marine Gold Marketing Sdn Bhd, PerfectFood Sdn Bhd and Universal Nutribeverage Sdn Bhd.

The Fair drew over 340 exhibitors from181 countriesand attracted a total of 37,285 visitors. Interfood 2014will be held from November 12 – 15, 2014 in Jakarta.For further information, please contact ClarissaChin from the FMM Secretariat tel: 03-62867200or email: [email protected].

MOU with Indonesian Partner duringInterfood 2013 in Indonesia

Signing of MOU between FAMA and PT Immuno Lestari Makmurat Interfood Indonesia 2013 in Jakarta

Chew Phye Keat from Raja, Darryl & Lohelaborated on how the Competition Act 2010affects businesses in Malaysia. Speakers fromCentury Logistics Holdings, Evergreen MarineCorporation, MASkargo, IBM and DHL Expresshighlighted the logistics providers’ support forbusinesses, developments in the sea and airtransportation modes as well as IT system relevantfor the logistics operations of the companies.

Best practices in logistics with focus on onlineorders and fulfilment, warehouse and distributionmanagement were shared by speakers fromLazada.com.my, IGLO and ITL Asia Pacificrespectively. Participants were also given theopportunity to raise their concerns and seekclarifications from the Ministry of Transport andother speakers at the Conference.

From left: YM Raja Dato’ Abd Aziz bin Raja Muda Musa,Dato’ Abdullah Yusuff Basiron and Dato’ Soh Thian Lai

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On average, a plant could achieve overall energy savingsof 10% – 30% with higher savings for specific solutionssuch as co/tri-generation. However, due to financingchallenge, most companies focused on measures with lessthan a two-year payback period and tend not to harvestbenefits from projects with longer paybacks. The natureof EE projects is such that it requires a holistic approachto utilise its potential and specific type of appraisal.

These were among the points highlighted at the FMMSeminar on Energy Efficiency from September 5 – 6,2013, where the speakers from CENDID Energy Solutionsand Litmus Group shared with participants the businesscase design and forms of financing for EE projects,EE trends as well as strategies and measures to dealwith the new Gas Supply Agreement (GSA).

The Catch 21 within the EE market which are commonfor a developing industry are the financiers’ reluctanceto provide funding due to lack of strong project

references (risk perception). Project developers, onthe other hand, claim they do not have access toaffordable funding to develop successful referenceprojects. Governments would often facilitate by providinga framework i.e. regulations and enforcement, andsupport structures such as guarantees and subsidiesto develop the market.

Similar to other projects, the principle for structuring thefunding for EE projects is to find the lowest cost of capital.The cheapest source of funding such as public fundingshould be utilized where possible. Conventional privatefunding could be utilized but may require somemodifications e.g. loan repayments through utility bills.Specialised private funding options are evolving e.g.private equity funds, mezzanine financing, venture capital,and could be utilized if capabilities are sufficient. Theunderlying concepts of Islamic Banking (profit sharing) aremost suitable for EE investment while leasing is analternative to standard loans if conditions are attractive,

Energy Efficiency Action Plans to MitigateEnergy Supply Challenges

News Highlights

Rising energy demand, limited energy supply and tighter regulations are among the factors that would ensure risingdemand for energy efficiency (EE) projects. Committed EE targets by Governments around the world including the

ASEAN countries would increase the pressure for businesses operating in these countries to comply with the nationaltarget, envisaged to be achieved either through regulations or investment incentives.

Christian Rahnsch of CENDID Energy Solutions addressing the participants of the seminar

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News Highlights

especially if off balance sheet treatment is desired. Bothinternal finance and engineering staff should be trained onEE financing.

Key elements of EE could be integrated into a company’sbusiness process management. EE programmes in anorganization could be structured as a project portfoliomanagement, as well as linked to business intelligenceand discovery platforms or business realisation approach.

Among the EE technologies available are co/trigeneration,biomass and biogas where the speakers highlightedthe internal and external factors to be considered inassessing the suitability of these technologies.Co/trigeneration, a highly efficient technology, is stillnot popular locally due to low energy prices and thelack of a structured FiT scheme.

The speakers also shared with natural gas consumers avariety of measures to deploy ‘within’ and ‘outside’ thesystem in dealing with the new GSA. Measures ‘within’the system’ included the evaluation of increasing DailyQuantity (DQ) every month and decreasing DQ every six months. Measures ‘outside the system’ wereimproving process energy efficiency, gas storage forusage during peak period (to consider cost of storageagainst cost of surcharges), demand side control

i.e. manual process control of production process thatmost plants can adopt, and substitution or supplementsupply with alternative energy sources i.e. biomassor biogas.

While a ‘one size fits all’ solution is not possible, all wouldrequire metering and monitoring to be effective. Strategy I –Do Nothing (No Investment), could be valid for companiesthat are only marginally impacted by GSA changes i.e.small gas consumers, predictable and stable gasconsumption, already equipped with advanced meteringand monitoring solution. Strategy II – Do What has to beDone which focus on avoiding any penalties and keepingstatus quo, could be applied to those with a fairlypredictable production profile and low energy savingspotentials i.e. medium to large consumers, moderateproduction volatility (seasonal predictable production),already invested significantly in EE improvement. StrategyIII – Explore Opportunities which focus on exploiting energysavings potential and impacting the bottom line, could bevalid for large energy consumers with volatile productionand big energy saving potentials.

An organisation should continue its journey based onits roadmap of suitable measures and encouraged toimplement energy management system based onISO 50001 for continuous improvement.

(continued from page 14)

Resolving Duty Exemption andDrawback Issues with MIDA andRoyal Malaysian Customs

In order to promote the activities of themanufacturing sector, the government of

Malaysia has provided specialconcessions such as duty exemptions anddrawback. Over the past year FMM hasreceived numerous complaints frommembers on the duty exemption anddrawback processes.

To address members’ concerns,FMM organised a Seminar on DutyExemption, Drawback and Refund withexperienced speakers from the RoyalMalaysian Customs and the MalaysianInvestment Development Authority. A totalof 90 participants attended the Seminarheld on September 26, 2013.

In an active question and answer session,the speakers addressed issues relatingto the online submission system, specificoperational problems such as dutyrefunds, tariff code discrepancies andmodification of shipment terms.

FMM has recently introduced a free MIDA Advisory Services forFMM members. The MIDA Advisor will also provide advisory servicesand guidance on other MIDA related incentives, procedures andrequirements. For more information please contact Maygelah Sivaof the FMM Secretariat at tel: 03-62867320 or or e-mail:[email protected].

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Events in Pictures

Negeri Sembilan Branch’s dialogue session with Police Department (Nilai Region) on May 21, 2013

Tan Sri Datuk Yong Poh Kon, FMM President met theHigh Commissioner of Sri Lanka HE Ibrahim Sahib Ansar

on October 7, 2013Selangor Branch’s visit to Mega Fortris (Malaysia) Sdn Bhd on July 9, 2013

Supply Chain & Logistics Summit 2013 on October 8, 2013

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Penang Branch’s Courtesy Visit to Malaysian Highway Authority Northern Region Office on July 24, 2013

ICC Malaysia Seminar on Bank Payment Obligation – An AlternativeMeans of Settlement in International Trade on August 22, 2013

Tan Sri Datuk Yong Poh Kon met HE Khalfan Saeed Al Kaabi,First Vice Chairman and Head (Economic Committee) of Abu Dhabi

Chamber of Commerce & Industry on October 17, 2013

Events in Pictures

FMM Innovation Conference 2013on October 1, 2013

Tan Sri Datuk Yong Poh Kon (right), met Joseph Y Yun, US Ambassadorto Malaysia on September 24, 2013

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The Economic Transformation Programme (ETP) is a comprehensive effort by the Government totransform Malaysia into a high income nation by 2020. Early Childhood Care and Education

(ECCE) is one of the areas under the National Key Results Area (NKRA) that is capable of increasingthe country’s GNI by 1.3 billion from 2010 to 2020. In order to meet this target the ECCE Council wasset up in 2010 as the governing body to oversee the upscaling of childcare centres and preschools .The Corporate Responsibility to Employees (CRE) Committee of the ECCE Council whose membersinclude inter alia, FMM, MEF, SSM, Department of Labour, NUBE, works closely with PEMANDU forthe following key objectives:

• To meet the strategic reform initiatives under the GTP to escalate the participation of more women inthe workforce via the rapid up scaling of the number of childcare centres and preschools to supportyoung families and to provide the best start in life for our young children

• To encourage the private sector to set up workplace childcare centres in its various as part of theircorporate responsibility so as to increase the number of workplace childcare centres (WCC) in linewith the targets of EPP1

• To raise awareness of the benefits of workplace childcare including tax incentives

• To discuss issues and concerns of setting up childcare centres at the workplace

Types of Workplace Childcare Centres The definition of WCCs have been extended to cover all workplace childcare centres (whether privateor public) that go beyond having traditional on site centres and these include:

• on site at the workplace

• corporate run centres near to the workplace

• collaboration with private registered childcare centres with subsidies given to staff

• childcare subsidy for staff to send to any registered childcare centres

Tax Incentives for EmployersIn the 2013 Budget, the government has provided for increased tax benefits for companies whoprovide childcare facilities and incentives for their staff and these include:

• Double deduction on expenditure incurred for the provision and maintenance of child care centres

• Double deduction on child care allowance given to employees (employees exempted from tax up toRM2400/year)

• Industrial Building Allowance at 10% annually for buildings used as child care centres

The ECCE Council looks forward to working with the corporate sector to increase the participationrate of women in the workforce by investing in the caring of children of employees. For research onthe economic benefits of investing on childcare please log on to: http://www.aft.org/pdfs/americaneducator/spring2011/Heckman.pdf Heckman, J.J. (2011).

Source: Heckman, J.J. (2011), The Economics of inequality: The value of early childhood education. American Educator,35 (1),31-47 or Website: www.eccecouncil.org

Workplace Childcare Centres:Benefits to Companies

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Market Alert

In early September, UK-based Ricardo StrategicConsulting issued a report on prospects for the globalautomotive industry, identifying Indonesia as one of thestars for vehicle sales from 2020 onwards. The countries inRicardo’s “Rising 15” – a group of 15 markets the companytipped to see the highest growth in auto sales – have allexperienced strong economic development over the pastdecade, with average annual GDP expansion exceeding9%. Significantly, Indonesia’s neighbours namely thePhilippines, Vietnam, Thailand and Malaysia were alsonamed in the Ricardo study, marking them as potentialexport markets for local producers.

In mid-August, market research firm Frost & Sullivanissued a report forecasting strong growth across theASEAN automotive sector, led by demand from Indonesia,which the study said would more than double by 2019.“Indonesia is expected to emerge as the largestautomotive market in ASEAN by 2019, accounting for2.3 million vehicles, driven by sustained economic growth inthe country, growing middle classes with larger disposableincomes, increased investments in the automotive sector

and introduction of automotive regulations supportingmarket growth,” Vijay Rao, Frost & Sullivan’s regionalresearch director for the Asia-Pacific, said on August 15.

One to recognise this growing potential is US giantGeneral Motors (GM), which is reopening a previouslyclosed plant in Bekasi, investing USD150 million in arevamp to allow it to produce for the local market.The facility, which was closed in 2005, will be turning outpassenger vans. The newly appointed GM president forIndonesia, Michael Dunne, said the move was part of aconcerted effort to deepen the corporation’s penetrationin the market, riding on the back of a 120% increase insales so far this year.

“Indonesia is a dynamic country and offers greatpotentials for car producers,” Dunne said on September 1.GM is not the only global car maker gearing up to enterthe Indonesian market, with Germany’s Volkswagen alsoin line to set up a production base. According to Ministerof Industry MS Hidayat, Volkswagen will formallyannounce plans for a USD266 million manufacturing

Indonesian Market Attracts Attention ofCar Makers

An expanding middle class and a broadening economic base have been cited as two of the driving forces behindthe forecast for rapid expansion of the Indonesian automotive industry, with predictions that domestic and regional

demand will combine to boost growth over the next few years. However, rising interest rates and a weaker rupiah mayput a damper on sales in the more immediate term. Automotive ownership in Indonesia is low in comparison to someof its neighbours, with penetration rates of around 80 vehicles per 1000 people, as against 330 per 1000 in Malaysia.With a population of 240 million and per capita income on the rise, the potential market for automotive producers andimporters is set to expand, a trend projected in two recent reports.

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Assistance to Members

Nov – Dec 2013 | BIA@FMM 21

• Approval of 200 foreign workers for Latexx Manufacturing Sdn Bhd

The Branch with the cooperation of MITI Perak, assisted Latexx Manufacturing Sdn Bhd to obtainapproval to recruit 200 foreign workers in September 2013. The company’s application was earlierrejected by the Labour Department as it had exceeded the quota for recruitment of foreign workers.

• Delayed Forestry License from the Forestry Department Expedited

Hiroshima Wood Frame Sdn Bhd’s forestry license which was pending since April 2013 wasapproved on September 17, 2013 after FMM raised it at the Centre of Investment WorkingCommittee meeting.

• Land Title Conversion and Special Infrastructure Layout

The Branch assisted in Latexx Manufacturing Sdn Bhd’s application for the land title conversion fromagricultural land to industrial land. The application was speedily endorsed by Perak State’s Exco withthe close cooperation of MIDA, Invest Perak and the Land and Mines Department.

• Endorsement for Property Transfer for Expansion

The Branch through the Centre of Investment Working Committee successfully assisted ITL AsiaPacific Sdn Bhd to obtain the endorsement of the Menteri Besar Perak on its purchase of a factoryland at Bemban Industrial Estate.

Perak: Assistance to Members

(continued from page 20)

facility in West Java in partnership with local firmIndomobil Sukses Makmur, with production set to start in2017. Though Volkswagen officials have not confirmedthe project or the plant’s capacity, the Minister said onAugust 22 that the details of the development would bereleased before the end of the year. India’s Tata is thethird manufacturer seeking to break into the Indonesianmarket, launching a sports utility, a multi-purpose vehicleand a hatchback on September 10, with the companysaying it intended to set up a chain of dealerships andauthorised service centres across the country by Marchnext year. Tata plans to follow up its initial entry into themarket with a further push powered by its heavy vehiclerange, targeting the mining sector with its tippers anddumpers, while also looking at the public transport sectoras an opening for its buses and other mass peoplemovers, Biswadev Sengupta, President of Tata MotorsIndonesia, told OBG in late August.

Auto makers are also looking to take advantage ofthe government’s new low-cost green car (LCGC)programme, which eliminates the luxury tax on certainfuel-efficient vehicles. In July, the government releasedthe final technical regulations for the initiative, firstrevealed last year. Toyota announced in September thattwo of its models had qualified for the programme, whileHonda expects to earn LCGC certification for its BrioSatya by the end of October. Though there has been ayear-on-year increase in sales every month through to

July so far in 2013, according to data from the Associationof Indonesian Automotive Industries (Gaikindo), a numberof industry experts predict the roll out of vehicles from thenation’s lots could slow. Year-to-date sales to the end ofJuly came to just over 700,000 units, suggesting industryprojections of topping last year’s total of 1.1m vehiclessold was on track.

However, a number of factors could slow sales later inthe year. Bank Indonesia raised its key lending ratefrom the record low of 5.75% as of June to 7% in August,a move aimed at propping up the local currency andstemming the inflation rise. The rate increase couldbecome a significant factor, as up to 70% of all vehiclepurchases are funded through loans. With the rupiahdepreciating – having fallen around 10% against thedollar this year – the cost of imported vehicles, and ofparts for locally produced vehicles brought in fromoverseas, is expected to rise.

Even though the IMF has lowered its growth forecast forthe Indonesian economy this year from 6-6.5% to a stillhealthy 5.5-5.9%, the government is projecting a reboundin 2014, predicting GDP to rise by 6.4% and to hit $5000per capita. If the government’s budget forecasts, issued inmid-August, are met, Indonesia’s automotive sector couldget a further jump start in the new year.

Source: Oxford Business Group, September 18, 2013

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The Branch organised the following activities:

• A Courtesy Call on Menteri Besar of Kedah, YAB Dato’ Paduka Haji Mukhriz Tun Mahathir on July 28, 2013. Among theissues discussed include:

Kedah/Perlis

– proposal for the development ofindustrial areas similar to the KulimHi-Tech Park

– proposal for establishment of“Business Think-Tank” for theindustrial development of Kedah

– proposal that a representativeshould be involved directly within theLocal Council Task Force on theindustrial planning

– discrepancy of leasehold rates forKawasan Perindustrian Mergong Iand II

• A Hari Raya gathering cum NetworkingSession on August 22, 2013 whichwas attended by 40 participants.

The Branch’s activitiesincluded the following:

• Courtesy Call on theDirector of MalaysianHighway AuthorityNorthern Region Office,Harryati Bt Rofik onJuly 24, 2013.

• A Networking Hi-TeaSession with TenagaNasional Berhad onAugust 30, 2013.

Penang

Group photograph of the participants of the hi-tea session with Tenaga Nasional Berhad on August 30, 2013

Group photograph with Menteri Besar of Kedah,YAB Dato’ Paduka Haji Mukhriz Tun Mahathir (5th from right)

Branch Events

Branch Relocation

Effective September 17, 2013, the Branch has temporarily relocated to:

Wisma Idealcare, No 5, 2nd floor, Lalan Perdana Heights 1/1 (lot 88), Perdana Heights08000 Sungai Petani, Kedah. Tel: 04-424 6431/1079 Fax: 04-4216876

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Perak

The Branch organised the following activities:

• A Seminar on SOCSO: Latest Updates and Protection Schemes on August 22, 2013 which was facilitated by four seniorofficers from Pertubuhan Keselamatan Sosial. A total of 88 participants from 50 companies attended the Seminar.

• A Seminar on Customs Programme on Import & Export Requirements on July 24, 2013 which attracted 30 participants.The participants were briefed on Methods of WTO Customs Valuation, Customs Offences and Penalties underSections 133, 114, 126 and 135 of Customs Act 1967. The programme was facilitated by Jeyasingam R, SeniorAssistant Director of Customs Department.

• A practical training on Electronic Application of the Preferential Certificate of Origin (ePCO) on July 4, 2013.A representative from Dagang Net Technologies Sdn Bhd, Mohd Firdaus Agus bin Md Derus conducted the training.

• A tea talk on the Competition Act 2010 on August 29, 2013. Chan Kok Keong, Advocate & Solicitor from Chan &Associates briefed the participants on the regulations governing the Act.

Mohd Firdaus Agus Bin Md Derus from Dagang Net TechnologiesSdn Bhd facilitated the training on ePCO

Participants who attended the Seminar on “SOCSO:Latest Updates and Protection Schemes”

Johor

The Branch’s activities included the following:

• A dialogue session with government agencies onJuly 19, 2013 to discuss the Bandar Seri Alam quarryblast incident and to understand the proper proceduresto conduct a quarry blasting and its licensing requirementfrom the relevant government agencies.

• Courtesy Call on YAB Datuk Seri Mohamed KhaledBin Nordin, new Menteri Besar (MB) of Johor onJuly 19, 2013. FMM delegates congratulated YABDatuk Khaled Khaled Bin Nordin on his appointmentas the MB of Johor. He further encouraged FMM toregularly update him on the challenges faced bythe manufacturing sector in the state. YAB DatukKhaled Bin Nordin invited FMM to join the JohorState Investment Board that he would establish indue course.

Branch Committee Chairman Capt(R) Hj Abdullah Shariff(2nd right) presenting a token of appreciation to Menteri Besar of

Johor (3rd right) Datuk Seri Mohamed Khaled Bin Nordin

Branch Events

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Branch Events

The Branch’s activities included the following:

• A visit to Mega Fortris (Malaysia) Sdn Bhdon July 9, 2013 led by Dr Neoh Vee Heng,Chairman of FMM Selangor SMI WorkingSub-Committee.

• A HR/IR Forum held on July 11, 2013with an attendance of 25 participantsto discuss the latest court awards,court findings and human resourceworkplace issues.

• New Members Networking Session ledby Dr Neoh Vee Heng, FMM SelangorVice-Chairman & Chairman of FMMSelangor SMI Working Sub-Committeeon August 22, 2013.

• A focus group discussion with LTLResources Sdn Bhd on August 8, 2013.

• A Training Programme on Planning andInventory Control on September 4 – 5,2013.

Selangor

Dr Neo Vee Heng, FMM Selangor Vice Chairman and Chairman of SMI WorkingSub-Committee facilitated the New Members Networking Session on August 22, 2013

Presentation by Dr Kuppusamy of LTL Resources Sdn Bhd during the focus group discussion on August 8, 2013

The Branch also conducted the following meetings:

• The 2nd Majlis Daerah Kuala Langat-IPMC Meeting held on July 4, 2013. It was chaired by Yang Dipertua MajlisDaerah Kuala Langat, Tuan Mohd Azhar bin Mohamed Ali to discuss infrastructure and security issues relating to theindustrial area in Kuala Langat district.

• Selangor State Committee on Investment, Industry & Trade Meeting on July 19, 2013. The meeting was attended bythe Branch Committee Chairman Dato’ Soh Thian Lai and YB Ean Yong Hian Wah, Selangor State Executive Councilorfor Investment and Industry & Trade.

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Branch Events

Sarawak

The Representative Office organised the following:

• A courtesy call to DOSH Director of Sarawak Ir Hj MohdHatta bin Zakaria on August 20, 2013. The delegationwas led by Hj Othman Abdul Rani, Chairman ofFMM Sarawak Working Committee and participatedby YKGI Berhad, Ta Ann Plywood Sdn Bhd and X-FABSarawak Sdn Bhd.

• A one day Seminar on “Employment of Foreign Workersin Sarawak” on August 28, 2013. The Seminar wasfacilitated by Tan Gake Hua, retired Director of LabourDepartment Sarawak and was attended by 18 participants.

• A visit to Yayasan Sarawak on September 9, 2013.The Director of Yayasan Sarawak Datu Haji Mohamad AbuBakar bin Marzuki informed FMM that it will be taking overPusat Latihan Belia next year and proposed a collaborationbetween FMM Institute and Yayasan Sarawak in providingtechnical training programmes for the local youths.

Group photograph during the courtesy call on DOSH Director of Sarawak,Dr Hj Mohd Hatta bin Zakaria

Negeri Sembilan

The Branch’s activities included the following:

• Annual Dinner on July 3, 2013. The Dinnerwas graced by the Yang DiPertua MajlisPerbandaran Seremban/Nilai, Dato’ Hj AbdHalim bin Hj. Abd Latif and was attended byover 330 representatives from public and privatesector companies.

• Safety talk and visit to Mawar Renal MedicalCentre on May 22, 2013 which was led bythe Safety and Health Committee Chairman,Erista Adisetya.

Dato’ Haji Abdul Halim bin Hj Abd Latif, Yang Di Pertua, (centre) withSteven Aroki, Branch Committee Chairman (3rd left) and Tan Sri DatukYong Poh Kon, FMM President (3rd right) at the Branch Annual Dinner

Guests who attended the Annual Dinner held on July 5, 2013Erista Adisetya (right), FMM NS SHE Sub Committee Chairmanpresenting the token of appreciation to Dato’ Dr Yeow

Chai Thiam (left) Founder and the Chairman of the Mawar RenalMedical Centre while Henderic Koo, Group CEO looks on

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Eastern

The Branch visited Tenaga Nasional Berhad Pahang onSeptember 4, 2013

Participants at the Briefing on Customs Appeal Tribunal:Roles, Functions and Case Studies on September 12, 2013

Malacca

The Branch organised the following activities:

• Seminar on ‘Effective Safety and Health Committee held on July 18, 2013 which was facilitated by Abdul Malek Omar,an Occupational Safety and Health Consultant.

• Seminar on ‘Minimum Retirement Age Act 2012’ held on September 4, 2013 and facilitated by Heng Poh Suan,FMM HR/IR Advisor.

• A HR/IR Forum facilitated by Heng Poh Suan, FMM HR/IR Advisor on September 5, 2013 with a total of 30 participants.

• 39th Annual General Meeting on September 10, 2013.

The Branch Annual General Meeting held on September 10, 2013HR/IR Forum conducted on September 4, 2103

The Branch’s activities included the following:

• A Courtesy Call on Director of Jabatan Alam SekitarNegeri Pahang Rusli bin Che Husin on July 23, 2013,led by the Branch Committee Chairman, Dato’ Mas’utbin A Samah.

• A Courtesy Call on Dato’ Sharuddin bin Mohd Simin,General Manager of Pahang Tenaga Nasional BerhadPahang on September 4, 2013.

• A Seminar on GST for Industries: Getting Started onSeptember 9, 2013 which was organised in collaborationwith the Royal Malaysian Customs Department.

• A half day Briefing on Customs Appeal Tribunal: Roles,Functions and Case Studies on September 12, 2013.

The Branch also organised the following meetings:

• 1st Kuantan Industrial Park Management CommitteeMeeting on July 11, 2013 chaired by Tuan HajiIr. Roslan bin Abdul Azis, Pengarah JabatanPembangunan dan Penyelenggaraan, MajlisPerbandaran Kuantan.

• 1st Temerloh Industrial Park Management CommitteeMeeting on July 22, 2013 chaired by Dato’ Haji Zainalbin Abidin, Yang Dipertua Majlis Perbandaran Temerloh.

Branch Events

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Ordinary Members

• Anis Food Sdn Bhd

• BRC Prefab Holdings Sdn Bhd

• Chien Jin Plastic Sdn Bhd

• Classic Emas (Sarawak) Sdn Bhd

• Deutsche Technoplast Melaka Sdn bhd

• Evyap Sabun Malaysia Sdn Bhd

• Furley Biosystem Sdn Bhd

• GCB Specialty Chocolates Sdn Bhd

• Hee Plastic Industries Sdn Bhd

• Kean Guan Tea Merchants Sdn Bhd

• LH Plus Sdn Bhd

• Lucoma AG Sdn Bhd

• Maestro Swiss Chocolate Sdn Bhd

• Niro Ceramic Labuan Ltd

• Panerai Engineering Sdn Bhd

• Pericoli Asia Pacific Sdn Bhd

• Pyrogen Manufacturing Sdn Bhd

• Safetyware Sdn Bhd

• Seiko Denki (M) Sdn Bhd

• Shotic Malaysia Sdn Bhd

• Taspack Industrial Sdn Bhd

• Tian Siang Oil Mill (Air Kuning) Sdn Bhd

• Unisil Mineral (M) Sdn Bhd

• Visdynamics Research Sdn Bhd

• Vulcanite Malaysia Sdn Bhd

• Wellmate Sdn Bhd

• Yong Choo Kui Shipyard Sdn Bhd

• Bagus Marketing Sdn Bhd

• Cofely Malaysia Sdn Bhd

• Golden Drop Trading Sdn Bhd

• M.I.T. Academy Sdn Bhd

• Regency Specialist Hospital Sdn Bhd

Affiliate Members

New Members (September – October 2013)The FMM welcomes the following 33 new members into the Federation, 28 Ordinary Membersand 5 Affiliate Members. The majority (33%) are from Johor, 27% from Selangor and 9% from

Federal Territory and Penang, with the rest from other states

New Members

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