ACCCIM Bulletin2016 2 (February 2016) Issue No: 1/2016 KDN: PP8722/12/2012(031293)

99

Issue on Hikes in Foreign Worker Levies Issue on Hikes in Foreign Worker Levies Issue on Hikes in Foreign Worker Levies

Pros and Cons of Trans-Pacific Partnership Agreement (TPPA)

THE ASSOCIATED CHINESE CHAMBERS OFCOMMERCE AND INDUSTRY OF MALAYSIA

Editorial and Publication Committee

2016 2 (February 2016)

Issue No: 1/2016

KDN: PP8722/12/2012(031293)THE ASSOCIATED CHINESE CHAMBERS OF COMMERCE AND INDUSTRY OF MALAYSIA

Published by

THE ASSOCIATED CHINESE CHAMBERS OF COMMERCE AND INDUSTRY OF MALAYSIA6th Floor, Wisma Chinese Chamber, 258, Jalan Ampang, 50450 Kuala Lumpur, Malaysia. Tel: 603-4260 3090/3091/3092/3093/ 3094/3095Fax: 603-4260 3080E-mail: acccim@acccim.org.my Homepage: www.acccim.org.my

Bulletin 99 Issue No.99

AdviserAdviser

Tan Sri Dato’ Soong Siew Hoong

ChairmanDato’ Low Kian Chuan

Deputy Chairmen

Tan Sri Dato’ Teo Chiang Kok

Mr. Michael Chai

Chief EditorChow Mun Seong Deputy Chief EditorChristine Poo

Assistant Editors Poh Wan Kh’ngSeow Mei Yin

Kelly WongFelix CheahLim Yen Ling

Hon Jia Hui

Cover design and Artwork :Lin Graphic17B, Jalan SR 3/2, Taman Serdang Raya, 43300 Seri Kembangan, Selangor.Tel: 603-8945 3933 Fax: 603-8945 2933

Printed by:Len & Hup Printing (M) Sdn. Bhd.No. 7, Jalan SR 7/11, Serdang Raya, 43300 Seri Kembangan, Selangor.Tel: 03-8948 1698 Fax: 03-8941 6386

Contents

11 Notes by Chairman of the Editorial and Publication Committee

22

YAB Prime Minister’s Engagement Session with Business Leaders and 2016 Budget Recalibration

66 Issue on Hikes in Foreign Worker Levies

1313 Pros and Cons of Trans-Pacifi c

Partnership Agreement (TPPA)

3434

Revisions of the Market Development Grant (MDG) by MATRADE

3838 HRDF Pool Fund

4949 Courtesy Call on Y.A.A. Tun

Arifi n bin Zakaria, Chief Justice of the Federal Court, Malaysia

5151 Meeting with the Director General of

Lands and Mines (Federal)

5252 Meeting with Chief Executive Offi cer of

Social Security Organisation (SOCSO)

5353ACCCIM Press Conference on STI

Competition 2016

Congratulations

5454 Courtesy Visit by H.E. Eduardo Frei Ruiz-Tagle, Former President of Chile

Courtesy Visit of Taiwan Trade Center,

Inc. Kuala Lumpur Representative Offi ce

5555 Meeting with President of Malaysian Associated Indian Chambers of Commerce and Industry (MAICC)

Visit by Delegation of Department of

Commerce of Yunnan Province, China

5656 Major Activities Organised by ACCCIM’s

Constituent Chambers

ACCCIM

1

Dato’ Low Kian Chuan

拿督卢成全拿督卢成全

Notes by Chairman of the Editorial and Publication Committee

Foreign worker (FW) issues emerge in endlessly and are great distress to the business sector. On 1st February 2016, the

Government has announced in a sudden the hike in foreign worker levy by 100% to 300 %, resulting in strong objection from the business sector. The Government later announced put on hold the increase of FW Levy and convened a meeting with stakeholders. At the meeting representatives of chambers of commerce and trade organisations unanimously expressed their strong objection to the increase of FW levy, and their view points on the legalization of illegal FW and recruitment of 1.5 million FW from Bangladesh. This issue of Bulletin provided a progress report on this matter and we earnestly hope that the Government will listen to the rakyat and do not burden the business sector at this moment of economic downturn.

YAB Prime Minister of Malaysia has invited business leaders for an engagement session to overview domestic and regional/global fi nancial and real economy. The President of ACCCIM was invited to attend the session and had submitted an ACCCIM memorandum for consideration of the Government on measures to revitalize the Malaysia’s economy. Subsequently, YAB Prime Minister announced the 2016 Budget Recalibration and the ACCCIM issued a Press Statement to comment on the 2016 Budget Recalibration.

The Dewan Rakyat had passed a motion for Malaysia to sign TPPA of which YB Minister of International Trade and Industry had signed the TPPA in New Zealand representing Malaysia. In order for members to have a better understanding on what is TPPA, pros and cons of TPPA, benefits, challenges and opportunities, and the critical sector etc., this issue of Bulletin has published an article on TPPA for reference of readers.

ACCCIM paid a courtesy call on Y.A.A. Chief Justice of the Federal Court, Malaysia. At the visit, ACCCIM submitted a memorandum for consideration and discussion with Y.A.A. Tun.

This issue of the ACCCIM Bulletin also covered details of Market Development Grant (MDG) by MATRADE, HRDF Pool Fund, Meeting with Director General of Lands and Mines (Federal), Meeting with CEO of SOCSO, ACCCIM Press Conference on STI Competition and other activities organised by ACCCIM for reference of readers.

Highlights2

2016国家财政预算案调整15-1-2016 28-1-2016

首相与工商界领袖会议           

首相拿督斯里纳吉公布调整2016国家财政预算案                                               

中总提呈了以下的紧急策略供政府考虑：

策略1: 通过投资刺激经济活动

策略2: 减轻经商成本以让商家和员工保持竞争力

策略3: 减轻粮食持续上涨

策略4: 促进本地和国内旅游业

策略5: 促进外来直接投资和鼓励国内投资以善用“一带一路”，“东盟经济共同体”和“跨太平洋伙伴关系协议”所带来的更广泛市场准入

策略6: 放宽抑制房地产投机活动的措施，推动支撑着超过140个其他行业发展的产业开发及建筑领域

策略7: 为中小型企业引入第四生产力要素

策略8: 实行削减开支措施

Highlights 3

YAB Prime Minister’s Engagement Session with Business Leaders

Datuk Ter Leong Yap, President of ACCCIM received an invitation from the Prime

Minister’s Department to attend a closed-door session with YAB Dato’ Sri Mohd. Najib bin Tun Abdul Razak, Prime Minister of Malaysia to overview domestic and regional/global fi nancial and real economy on 15th January 2016.

Upon receiving the invitation, the ACCCIM Socio-Economic Research Commit tee together with SERC Sdn. Bhd. immediately prepared a memorandum for consideration of the Government and for Datuk Ter Leong Yap, the President of ACCCIM to deliberate at the closed-door session.

ACCCIM opined that most of the businesses are remain rationally cautious as they are being confronted with anxieties of external macroeconomic development, and the potential impact of the higher-than-expected China slowdown that add further pressures on subdued domestic economy and business environment. The prevailing global uncertainties; the possibility of further devaluation of Renminbi and rising interest rates in the US; and the weak outlook for oil will continue to exert pressures of infl ation on overall demand.

Private household demand has slowed down on three inter-linked reasons. Demand was initially weighed down by infl ationary pressures following the imposition of the GST in April 2015 and subsequently waned by the depreciation of the Ringgit. The weakened Ringgit then adds further infl ationary pressures overall demand as refl ected in the slowdown in retailing sector.

YAB Prime Minister’s Engagement Session with Business Leaders and 2016 Budget Recalibration

15-1-2016 and 28-1-2016

Highlights4

The Brent crude that dived to as low as USD32 per barrel on the pressure on oversupply will certainly impact our Government revenues, as the National Budget 2016 was done on the basis of USD48 per barrel. Should oil prices remain as current, and no revision in fiscal spending, we can anticipate the vicious cycle of further budget defi cit which send signals of further downgrade in rating resulting in the outfl ow of Ringgit; weakening it further and impacting overall domestic demand. On the other hand, cutting fi scal spending itself will have effect on domestic slowdown. The business community is apprehensive that this confidence deficit will transform into a prolonged economic downturn or a recession. As such, ACCCIM urge the Government to head up and work hand-in-hand with the private sector in restoring the economic confidence and to support the private sector in driving up the economic activities in the midst of these external environment.

In this respect, ACCCIM has proposed the following immediate measures for consideration of the Government:

Strategy 5: Enhance promotion of Foreign Direct Investment (FDI) and encourage domestic investment to capitalize on the wider market access of “One Belt One Road”, ASEAN Economic Community (AEC) and Trans-Pacifi c Partnership (TPP)

Strategy 6: Easing the measures to curb property speculation and to boost the property development and construction sector that support more than 140 other sectors.

Strategy 7: Introduce Fourth Factor of Productivity into SMEs

Strategy 8: Implementing Cost Cutting Measures

Strategy 1:Stimulation of economic activity through investment

Strategy 2: Mitigate the cost of doing business to keep businesses and workers competitive

Strategy 3: Ease the rising cost of food

Strategy 4: Enhance the promotion of domestic and in-bound tourism

Announcement by YAB Prime Minister on 2016 Budget Recalibration

YAB Dato’ Sri Mohd. Najib bin Tun Abdul Razak, Prime Minister of Malaysia announced the 2016 Budget Recalibration on 28th January 2016 at the Putrajaya International Convention Centre (PICC). Datuk Ter Leong Yap, President of ACCCIM was invited to attend the session.

The ACCCIM issued a Press Statement on 28th January 2016 to comment on 2016 Budget Recalibration.

The ACCCIM welcomes the announcement that with effective from 1st March this year, China nationals visiting Malaysia will be accorded free visa for a maximum stay of 15 days. ACCCIM believe that this bold measure will encourage

Highlights 5

more Chinese tourists to visit Malaysia of which in return will boost consumption, promote tourism and related industries. This was one of the ACCCIM suggestions to the Government in our recent memorandum entitled “Proposed Measures to Restore the Confidence in the Malaysian Economy”. We hope that this free visa relaxation will be implemented with immediate effect so as not to miss any further peak season visitors from China. The Ministry of Tourism and Culture and travel agencies should strengthen collaborations and vigorously design a series of packages and activities to promote in-bound tourism, and to undertake extensive publicity so as to encourage more Chinese tourists to visit Malaysia.

The Government has announced that it will continue to focus on infrastructure projects that will benefi ts the people’s welfare, including the building of more hospitals, schools, roads and bridges, public infrastructure facilities and at the same time, re-schedule the non-core projects. The ACCCIM welcomes the decision as this is an important measure to ensure optimum use of the development expenditure, and more effective allocation of Government resources.

Human capital is an important factor to foster sustainable development of a country. Engineering, science and technology will drive innovation and education reform. ACCCIM applauds the Government’s commitment to continue to grant scholarships and loans, especially for 200 students to Japan, Korea, Germany and France under the Special Engineering programme so as to cultivate and retain Malaysian talents.

Other measures including tax relief of up to RM2,000 to those with income below RM8,000 per month for the year assessment of 2015 is expected to benefi t two million taxpayers, whilst employees may reduce their EPF contributions by 3% from March this year to end of next year is expected to ease the pressure of rising cost of living for the middle-income group, as well as will improve the spending in the market.

ACCCIM welcomes the development fi nancial institution (DFIs) and government-owned

venture capital funds that will increase their funding by RM6 billion to provide fi nancing to small and medium enterprises (SMEs) and start-up companies and the interest rate of this fund should be low and affordable with simplifi ed application procedures to ensure sustainable development of SMEs.

In addition, 30% of contributions to the Human Resource Development Fund (HRDF) will be utilised for skills training to increase workers competency and skills, including providing retraining for unemployed workers, will help Malaysians to improve productivity and effi ciency. However, the relevant Government Ministry should formulate a transparent mechanism to ensure rights and interests of the contributors are being protected and their rights to draw from their contributions are preserved.

ACCCIM welcomes the Government’s move to streamline the management of the foreign workers system. The Government, however, should clarify and announce as soon as possible how levy is to be clustered into two categories. ACCCIM suggests the relevant Ministries to solicit feedback from the business community so as to formulate a more effective mechanism that is simple, effi cient and cost-effective that meet the needs of the employers.

Concerning the Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) will step up enforcement and take legal actions on non-ethical businessmen who take the opportunity of profiteering, ACCCIM wish to caution that the enforcement should be targeted solely on unethically or law-breaking traders and not on a random basis that disrupts the genuine businesses at this trying time.

ACCCIM urges all Malaysians, Government Ministries, the business community and the public to be united in purpose and work hand-in-hand in this challenging time so as to revitalize our Malaysian economy by maintaining the economic growth and the steady progress of our country.

Highlights6

ACCCIM together with 54 chambers of commerce and trade organisations organised a press conference to voice objection to the substantial hikes in foreign worker levies.

Issue on Hikes in Foreign Worker Levies

Highlights 7

回响及最新情况进展：

就外劳人头税调涨发表文告

Highlights8

(a)�我国非法 外劳预算300万至600万人，预算平均400万人。把400万非法外劳合法化，在同样RM1250外劳人头税的基础上，政府所收人头税总额高达50亿令吉。政府须关注的是，我们已多次强调人头税并非政府收入，实际上这笔钱应该重新拨 入各相关行业，作为培训、提升

技能以及自动化。然而在目前的经济情况下，我们建议政府所收取的50亿令吉人头税，其中25亿令吉归政府，剩余25亿令吉则保留给工商领域。

(b)�非法外劳是产生许多社会问题的根源，要是没有尽快解决，问题继续衍生。

(a)�合法化行动必须透明、简捷、有效和收费合理；

(b)�这个程序须由内政部执行；

(c)�完成合法化行动后，就不再有任何非法外劳的问题。在这方面，政府必须严正执法，接下来的合法外劳申请必须透明，有明确的指南和收费合理为关键。

Highlights 9

We, as representatives of employer and trade organisations, are shocked and appalled by the government’s sudden announcement of the hike in foreign worker (FW) levy ranging from 100% to 300% without any prior notice or consultation with stakeholders. We are totally surprised and disappointed by the abruptness of this announcement, given that the government has been portraying that it is an inclusive and consultative government.

We are deeply concerned as the hike in foreign worker levies would detrimentally impact the cost of doing business which could lead to business failures and would ultimately be passed on to consumers and result in price increases. Some of our concerns are as follows:

1. The altruistic purpose of the levy is to level out the supposedly lower wages of FW compared to local workers to eliminate the supposed advantage of recruiting FW instead of local workers.

2. The proposed hike in foreign worker levy would add RM2.5 billion annually to the government’s coffers, and this is a clear indication that the altruistic purpose of imposing the levy had been discarded. We urge the government to revert to the original intention for imposing foreign worker levy. In fact with the implementation of minimum wage, there is now no differentiation in between FW and local wages and the rationale for imposing the levy have been extinguished and thus the levy should be rightfully be withdrawn.

3. The economic slowdown is already straining the operations of many businesses. This is further compounded by the imposition of GST, falling value of the Ringgit and the soon-to-be implemented

new minimum wages. Furthermore, the FW already in the country are forced to deal with signifi cant losses in terms of foreign exchange when remitting their salaries back to their home countries which has led to an increasing number of foreign workers leaving the country. Malaysia is becoming less attractive for FW to work in. A shortage of workers, whether local or foreign, will have a signifi cant and adverse effect on the economy of the country.

4. The fundamental issue is the need for better management of FW and the elimination of illegal/undocumented FW.

5. Currently, the application process to recruit FW is so expensive, convoluted and uncertain and enforcement is poor, that certain employers are driven to resort to employing illegal foreign workers in order to survive. This has resulted in the mushrooming of illegal/undocumented FW.

6. No employe r wou ld p refe r to engage undocumented FW if the cost and process to engage legal FW is reasonably priced, efficient and transparent.

7. The current process needs to be streamlined. What should be a one-window process has been broken into many processes to accommodate the many outsourced entities that have been created to perform each of the broken-up steps for recruitment.

8. These outsourced processes do not add value to the entire recruitment process but actually impede and impose unnecessary additional costs as these outsourced entities are private companies that are profi t-driven and monopolistic in nature.

Representatives from various chambers of commerce and trade associations actively participated at the joint press conference.

Joint Press Statement Issued on 2nd February 2016

HIKES IN FOREIGN WORKER LEVIES 

Highlights10

9. Although it may be argued that the fees imposed by the outsourced entities are paid by the FW, these fees add unnecessary burden to the would-be FW. Such fees will ultimately be passed on to employers and eventually to the consumers.

We urge the government to withdraw this sudden hike in FW levy and conduct comprehensive consultations with all stakeholders. There is an urgent need for a holistic review of the entire application process, outsourcing programs and to address the illegal/undocumented FW already gainfully employed who represent the main backbone labour force for the smooth operations of the economy.

It has to be recognised and acknowledged that the size of our economy currently needs some 6 million FW. The key is to have an effi cient and transparent system in place for the management of FW.

We note that the sudden revision in the levy is associated with the recalibrated Budget as part of raising revenue for the government, which in this case is expected to raise RM2.5 billion.

We are of the view that this move is short sighted for the reasons as set out above.

We would suggest that the above move be shelved and in place, a comprehensive move to legalise the existing illegal FW in Malaysia be implemented for the following reasons:-

a) The estimated illegal FW range from 3 to 6 million, with an estimated average of 4 million. On the basis of a similar RM1250 as levy on the 4 million illegal FW been converted to legal workers, the levies collected would amount to RM5 billion. The government will note that we have on numerous occasions taken the view that the levy is not part of government’s revenue and that it should in fact be ploughed back to the respective industry for the purpose of, inter alia, training, upskilling, and automation. However under the existing economic circumstances, we would suggest that RM 2.5 billion of the RM 5 billion raised be assigned to the government and the balance RM2.5 billion be reserved for the industries.

b) The existance of i l legal FW have been the source of numerous social problems, which will

continue unabated if not resolved expeditiously. This proposal will therefore eliminate these long outstanding issues.

The above must be implemented as follows:-

a) The legalising process must be transparent, simple, effi cient and at reasonable cost

b) This process must be undertaken by KDN and not any outsourced parties

c) Upon the completion of this exercise, there should not be any issues relating to illegal FW, and in this regard, it is critical that the government exercise strict enforcement with the caveat that subsequent applications for legal FW be transparent, with clear guidelines and at reasonable cost.

Legalising the currently illegal/ undocumented FW already gainfully employed in our country will be the most effective way to solve the current debacle without jeopardising the smooth running of the economy especially at this very challenging and precarious time.

This legalising exercise merely at the old levy rate will already bring in more than RM 2.5b targeted for the sudden hike in levies announced yesterday. The levy to be paid upon legalising is proper, fair and is actually due. At the same time the lingering and perennial issue of illegal FW is resolved without interruption to the smooth of operations of businesses which are undertaken by these currently illegal FW.

The manpower needs and the need for FW should be determined accurately by the Ministry of Human Resources. The Ministry of Home Affairs should also review and improve the entire application and renewal processes for FW and ensure effective enforcement and management of FW. With an efficient and transparent system in place, no employer will need to use any illegal/ undocumented FW and illegal FW working in Malaysia will become neither viable nor attractive. We urge the government to withdraw immediately the hikes in foreign worker levy, and urgently review the entire need for FW and the process to engage FW as soon as possible urgently.

Highlights 11

有关政府提高外劳人头税之联席新闻发布会

Joint Media Conference on Government Announcement to Increase Foreign Worker Levies

2 – 2 – 2016

List of Participated Chambers/ Trade Organisations:

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM)

Malay Chamber of Commerce Malaysia (MCCM)

Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI)

Federation of Malaysian Manufacturers (FMM)

Malaysian Employers Federation (MEF)

SME Association of Malaysia

Federation of Malaysian Foundry and Engineering Industries Associations (FOMFEIA)

Malaysian Furniture Council (MFC)

Malaysian Plastics Manufacturers Association (MPMA)

Malaysia Textile Manufacturers Association (MTMA)

Malaysian Knitting Manufacturers Association (MKMA)

Malaysian Wood Industries Association (MWIA)

Malaysian Panel Products Manufacturers’ Association (MPMA)

Persatuan Pengusaha Kayu- Kayan & Perabot Bumiputra Malaysia (PEKA)

The Electrical and Electronics Association of Malaysia (TEEAM)

Malaysian Air-Conditioning & Refrigeration Association (MACRA)

Malaysian Iron & Steel Industry Federation (MISIF)

Malayan Agricultural Producers Association (MAPA)

Malaysian Rubber Glove Manufacturers Association (MARGMA)

Malaysian Rubber Products Manufacturers’ Association (MRPMA)

Malaysia-China Chamber of Commerce (MCCC)

Malaysian Association of Foreign Maids Agencies (PAPA)

Malaysian Bakery, Biscuit, Confectionery & Mee Merchants’ Association

Malaysia Seafood Industries Association (MSFIA)

Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM)

Highlights12

Malaysia Garments Marketers Association

Tea Trade Association of Malaysia

Malaysia Garments Wholesale Merchants Association

The Federation of Stationers And Booksellers Association of Malaysia

Textile & General Goods Importers & Exporters Association of Kuala Lumpur Federal Territory and Selangor (GIMTEX)

Selangor & Federal Territory Chinese Textiles & General Goods Merchants Association (TAGMA)

Kuala Lumpur and Selangor Indian Chambers of Commerce and Industry (KLSICCI)

Selangor and Federal Territory Chinese Printing Presses’ Association

Persatuan Peniaga Nilai 3, Negeri Sembilan

Persatuan Peniaga Seri Iskandar Perak

Persatuan Usahawan Cina KL & Sel

Perak Garments Manufacturers Association

The Malacca Textile & General Goods Dealers’ Association

Persatuan Peniaga Kain dan Barang Runcit Johor Bahru

The North Malayan Chinese Textile & General Merchants Association

Malaysia Hardware, Machinery & Building Materials Dealers’ Association (MHMBA)

Malaysian Footwear Manufacturers’ Association (MFMA)

Malaysian Gifts and Premium Association (MGPA)

Malaysia Retail Chain Association (MRCA)

Master Builders Association Malaysia (MBAM)

Malaysian Association of Hotels (MAH)

Branding Association of Malaysia

Malaysian Hardware Wholesalers’ Association (PPBLM)

Malaysia Foodstuffs and Toys Merchants Association (MFTMA)

Malaysian Fruits Farmer Association (MFFA)

Malaysia Printing Association (MPA)

Federation of Sundry Goods Merchants Associations of Malaysia

Federation of Chinese Physicians and Acupuncturists Association of Malaysia (FCPAAM)

Society of Licensed Vocational Experts Association of Malaysia (SOLVE)

Federation of Textile General Goods & Garment Merchants Associations Malaysia (FOTGAM)

Special Features 13

Twelve (12) Ministers of the Trans-Pacific Partnership (TPP) countries concluded the Trans-Pacifi c Partnership Agreement

(TPPA) negotiations on 5th October 2015. Subsequently, the Ministry of International Trade and Industry (MITI) released the full details of the TPPA on 5th November 2015, and followed by the independent cost-benefi t analyses (CBAs) on the potential economic impact and the study of the impact on national interest which provides the public with more transparent, informed and detailed analysis of TPPA impact on Malaysia.

With the release of the full details, ACCCIM in collaboration with its Socio-Economic Research Centre (SERC Sdn. Bhd.) have undertaken feedback studies on TPPA. ACCCIM had issued a press statement on TPPA on 11th November 2015; and followed by a press conference on TPPA chaired by Datuk Ter Leong Yap, President of ACCCIM on the Response to the Cost-Benefi t Analyses (CBA) of the TPPA to express the ACCCIM’s view. ACCCIM, together with the Federation of Malaysian Manufacturers (FMM), Malaysian International Chamber of Commerce and Industry (MICCI), Majlis Perundingan Melayu (MPM), SME Association of Malaysia, Persatuan Pedagang dan Pengusaha Melayu Malaysia (Perdasama) and American Malaysian Chamber of Commerce (AMCHAM) had organised a joint press conference on 20th January 2016 to support the signing of TPPA. ACCCIM was represented by Mr. Michael Chai and Dr. Teh Chee Ghee.

The Dewan Rakyat had passed a motion for Malaysia to sign TPPA, with 127 votes supporting and 84 against the signing on 27th January 2016. YB Dato’ Sri Mustapa bin Mohamed, Minister of MITI signed the TPPA in Auckland, New Zealand on 4th February 2016 representing Malaysia.

The 12 countries that signed the TPPA are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam. The TPPA aimed at creating the biggest free trade area in the world. Signing countries will have two years to ratify the agreement and will enter into force by 4th February 2018.

In order for members to have a better understanding of TPPA, it’s pros and cons, i.e. benefi ts, challenges and opportunities etc., SERC Sdn. Bhd. had prepared a booklet on the Pros & Cons of Trans-Pacific Partnership Agreement (TPPA) to Malaysian Businesses. We are pleased to publish this report here for benefi t of our readers.

跨太平洋伙伴关系协定的利与弊Pros and Cons of Trans-Pacific Partnership

Agreement (TPPA)

Special Features14

跨太平洋伙伴关系协定（跨协）跨协对于马来西亚工商界的利与弊

什么是跨协?

跨协人口 跨协国内生产总值

标准法定范围/章节 传统自由贸易协议的范围/章节 跨协：新范围/章节

Special Features 15

为什么马来西亚应该签署跨协？

四个自由贸易协议的新市场：

TPP

AEC2016

RCEP

1. 2. 3.

8.9.

10. 4. 5. 6.

OBOR >65

7.

201620152005 2010-2013

跨协谈判的背景

Special Features16

20182016

跨协的好处：市场准入与投资

4个主要受益的行业

马来西亚国会下议院于2016年1月27日通过签署跨协

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种植

与大宗商品

Special Features 17

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电子及电器

木材

纺织及制衣

“纱线原产地”规则•

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中小型企业：机会与挑战

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 一些涉及中小型企业的跨协条款

Special Features18

知识产权：利与弊

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Special Features 19

什么是争端解决机制?

电子商务：新商机

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 好处

与机会

挑战

主要条款

好处

与机会

挑战

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投资者-东道国争端解决机制（ISDS）

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Special Features20

政府采购及国营企业的切离条款

政府采购建筑工程的局部自由化：

劳工：跨协要求比我国现有法律更高的标准

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Special Features 21

电信：利与弊

金融服务业�–�关键的领域

主要条款 好处与机会 挑战•

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然而。。。

以及。。。

- - 风险 - -

BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA

Special Features22

总结和马来西亚的前进路向

总结

马来西亚的前进路向

Special Features 23

TRANS-PACIFICPARTNERSHIPAGREEMENT(TPPA)The Pros & Cons of TPPA to Malaysian Businesses

What is TPPA?The Trans-Pacifi c Partnership Agreement (TPPA) is a comprehensive and high-standard 30 chapters multi-lateral free trade agreement (FTA) that brings together 12 Pacifi c Rim countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam. TPP aims to create the world’s biggest free-trade area. The key priority of this game changing trade partnership converges on improved market access and cross-border trade, fair and level playing fi eld, and regulatory transparency.

TPPA is expected to be positive for Malaysia as the TPP will become a free trade region to 800 million people, accounting for approximately 30% of global trade and 40% of the world’s GDP.

Special Features24

Standard Legal Scopes/ Chapters

Traditional FTAScopes/Chapters

TPPA:New Scopes/Chapters

Chapter 1 – Initial Provisions27 – Administrative

& Institutional Provisions

28 – Dispute Settlement

29 – Exceptions and General

Provisions30 – Final Provision

2 – National Treatment & Market Access for Goods

3 – Rules of Origin4 – Textiles & Apparel5 – Customs Administration6 – Trade Remedies7 – Sanitary and

Phytosanitary8 – Technical Barrier to

Trade9 – Investment10 – Cross Border Services

11 – Financial Services12 – Temporary Entry13 – Tele-communications14 – E-Commerce15 – Government

Procurement*16 – Competition Policy18 – Intellectual Property21 – Cooperation &

Capacity Building22 – Competitiveness and

Business Facilitation

17 – State-owned Enterprises (SOEs)*

19 – Labour*20 – Environment*23 – Development24 – SMEs25 – Regulatory

Coherence26 – Transparency and

Anti-Corruption

* New scope for Malaysia

Why Malaysia should sign the TPPA?Being a trade-dependent economy, Malaysia will be able to tap into the TPPA member countries, in particularly the four new markets, i.e. United States, Canada, Mexico and Peru, where Malaysia has yet to establish any FTAs.

The elimination or lowering of import tariffs, and removal of other trade barriers play critical role for our businesses as they open door to new global markets, will certainly strengthen the competitive of our products and services. By being the original 12-signatories to the TPPA, Malaysia stands to gain from its fi rst mover membership advantage, together with Vietnam, Brunei and Singapore in ASEAN.

Malaysia is placed in a favourable and strategic positions in the ASEAN region by involving in various regional initiatives i.e. AEC, RCEP, TPP, and China’s One Belt One Road (OBOR) – the 21st-century Maritime Silk Road and the Silk Road Economic Belt’s initiatives. Malaysia is so well-positioned as the magnet for investment because of its resources, strategic location, facilities and infrastructures, and socio-economic stability.

Special Features 25

20182016

The original P4 FTA started with Brunei, Chile, New Zealand, and Singapore in 2005, and entered into force since 2006.

United States and Malaysia came in 5 years later and Japan came in last.

TPPA began with inclusion of the United States, Australia, Peru and Vietnam in March 2010. Malaysia joined in October for the same year.

Subsequently, Canada and Mexico joined in December 2012, while Japan joined in July 2013.

Negotiations completed on 5 October 2015.

PwC and Institute Strategy and International Studies (ISIS) have conducted extensive study on potential economic impact and national interest of Malaysia’s participation in TPPA.

Special Parliament session to debate on TPPA at the end of January 2016.

201620152005 2010-2013

Background of TPPA Negotiation

Dewan Rakyat of Malaysia passed a motion on 27th January 2016 for Malaysia to sign TPPA

Malaysia signed the TPPA on 4th February 2016 in New Zealand.

TPPA’s enter into force (EIF) by 4th February 2018 upon completion of ratifi cations*.

All the signatories will be amending their legislations to ratify TPPA, e.g. Malaysia expects minor amendments to at least 26 legislations.

* 60 days after all ratifi cations completed by 12 signatories or else 60 days after the expiry of 2-year period from the signing of TPPA if at least 6 signatories with minimum 85% GDP ratifi ed the agreement.

Special Features26

1. Remove or substantially lower barriers to trade in goods, services and investments across all TPP countries

Plantation & Commodities

Electronics & Electrical

(E&E)

Wood

2. “National treatment (NI)” and “most-favoured-nation (MFN)” provide non-discriminatory treatment to investors of TPP countries.

3. Prohibitions on “performance requirements”, e.g. local content and technology transfer as conditions of foreign investment.

4. Protection against expropriation and the defi nition of “investment” is expanded beyond assets that investor owns/controls” to include characteristics of investments such as capital commitment, fi nancial instruments (bonds, loans, derivatives etc.), and intangible assets such as IP rights, licenses and permits.

• More predictable investment environment will facilitate inbound foreign investment.

• Fair market access and protection for Malaysian businesses and investors.

• Export industries can benefi t from reduction in transaction costs and speedier procedures

Benefi ts of TPPA: Market Access and Investment

Major Benefi ciaries in Four (4) Selected Sectors• E.g. palm oil and rubber.• Malaysia graduated from the Generalised Scheme of Preferences (GSP) status with

the US since 2014, which resulted in the expiry of tax-exempt privilege being accorded.• With TPPA, United States and Canada will be more likely to buy palm oil and rubber

from Malaysia vis-à-vis Indonesia.• However, the export volume may be limited by logistics costs, time, and competition

from their own domestic edible oils.

• Although E&E exports are already enjoying zero or low duties, the increase in market access lies on the access to the U.S. government procurement market which is being offered to foreign business, estimated at RM650 billion.

• Most key E&E companies in Malaysia are already in compliance to international labour standards, including the International Labour Organisation (ILO) Convention. Thus, the impact on labour costs and labour disruptions arising from the TPPA in this industry is expected to be minimal.

• Japan and the US are Malaysia’s two major export markets which account for 33% of total wood-related exports, while Malaysia sources 24% of its word imports from TPP countries.

• Lower import duties on plywood and furniture in TPP countries may increase our exports. Plywood accounts for 28% of total revenue from wood export. The key export market for plywood is Japan, which currently accounts for 15% of the plywood export.

• Companies can expect a total savings of about RM3.2 billion from payment in import duties, while access to cheaper products such as sawn logs and sawn timber could help alleviate the domestic shortage.

Special Features 27

Textile & Garments

• Require Malaysia to use yarn from TPP countries in order to enjoy zero or low tariff for textiles and garments, which may increase production cost and potentially negate the cost advantage arising from the lower tariffs being accorded.

• May lead to some changes or disruption in sourcing strategies. However, there are provisions under Short Supply List, which allow opportunities for members to source materials from non-TPP countries.

• May induce businesses that previously source inputs from non-TPP countries to consider relocating closer to their production base, benefi ting Vietnam for mass production and Malaysia for higher quality and higher value-added garment manufacturing.

SMEs: Opportunities and Challenges

• In 2014, Malaysia’s exports of garments to TPPA countries accounted for 59% of total exports, of which the U.S. market accounted for 34%. A 10% tariff reduction across all textile products exported to the US could result in savings of RM190 million per year.

• The removal of non-tariff barriers in Mexico and Peru may encourage higher exports from the current value of RM83 million.

• The “yarn forward” rule which requires yarn to be sourced from a TPP country as a qualifying criterion for zero duty may spur capital investments in yarn and fabric making in Malaysia, including investments from non-TPP countries.

• For accumulation sourcing rule, we can expect needs for more transparency in sourcing, including potentially disclosure of companies’ strategic sourcing and business operations.

• The US also requires Malaysia to establish and maintain a registration system covering all companies that are engaged in the production of textile or apparel goods or the export to the US.

“Yarn For ward” rule

SMEs are important to the Malaysian economy, contributing more than 35.9% of the real GDP. TPPA deliberately includes a chapter dedicated to SMEs, i.e. Chapter 24. Several other chapters, such as Chapter 22 on Competitiveness and Business Facilitation and Chapter 14 on E-Commerce, also contain provisions to help SMEs make use of the opportunities provided by TPPA.

• Chapter 24 contains elements on how to assist SMEs to integrate into the global supply chain and also benefi t from expanding overseas. Among others, each TPP country will develop a website that explains TPPA and the international SME committee will meet regularly to review how far TPPA is benefi tting SMEs. However, the chapter is persuasive in nature, thus not legally binding. Hence, there is no recourse in the event that some TPP countries do not fulfi l their obligations under this chapter.

• Chapter 22 requires TPP countries to establish a committee to promote trade, investment and economic integration, including providing “recommendations aimed at enhancing the participation of SMEs in regional supply chains”.

• Chapter 14 will facilitate cross-border e-commerce, and also includes provisions to promote cooperation between TPP countries to help SMEs make use of e-commerce.

Selected provisions on

SMEs from TPPA

Special Features28

• Chapter 24 does not specifi cally address the issue of increased competition faced by SMEs. While the interests of some 247,939 Bumiputera SMEs are safeguarded in the form of carve-out for government procurement and thresholds capping, those SMEs that do not fall under these carve-outs will need to compete openly with foreign companies in the domestic market.

• SMEs can now take advantage to reach out to international markets with less cumbersome procedures using e-commerce. It is important for SMEs to evaluate their strengths and weaknesses and put in place a strategic plan to expand globally. Our SMEs may lack the ability to compete with other TPP counterparts like US on home ground since our SMEs are much smaller in scale, lack access to capital and latest technologies, and the quality of their products may also fall short of export requirements. But this can be overcome by prompt adaptation to market changes.

Opportunities &

challenges

There are now more opportunities for SMEs. Past experiences from other FTAs indicate that if the SMEs are ready to participate, the market access for goods and cross-border services is expected to benefi t SMEs in terms of lower costs arising from greater tariff elimination, lowering of non-trade barriers, and lower cost derived from the effectiveness of internet and e-commerce.

Intellectual Property (IP): Pros and ConsIntellectual property (IP) protection plays significant role in developing high-value and knowledge-based economy. The standards adopted in dif ferent types of IP (patents, copyrights and trademarks, etc.) can provide businesses with more assurance as they invest in more innovative products and services.

• Patent protection remains at 20 years, except unreasonable delays in approval (Malaysia has been effi cient in approval process).

• The scope of data exclusivity will now include biologics with options to provide for period of 5 or 8 years. Malaysia opted for 5-year period. While the data exclusivity serves as incentives for biologics producers for their R&D works, the impact is anticipated to be insignifi cant on the small number of Malaysian biopharmaceutical manufacturers as past records have shown that the generics (biosimilar) were registered between 6-13 years after the fi rst marketing approval of the biologics counterparts. Furthermore, the 18-month access window incentivize pharmaceutical companies to bring their new medicines to Malaysia quickly, hence Malaysians have early access to these new drugs, and consequently early access of similar generic drugs. Therefore, public access to biosimilars is not expected to be jeopardised by TPPA.

• The contentious issues for Malaysia are in pharmaceuticals that could potentially make generics less available, hence pushing up the cost of affordable and life-saving medicines. Malaysia’s public healthcare which is currently heavily subsidised and dependent on dispensation of generic drugs and biosimilar may potentially place further pressure on the government’s ability to provide free or affordable public health services. However, the fi nal obligation of 5-year data exclusivity for biologics vis-à-vis 8 or 12 years during the negotiation stages does not seem to pose detrimental risks.

• The extension of copyright protection, i.e. from 50 to 70 years for books, music and fi lm will limit accessibility due to higher burden in royalty payments.

t 20 t bl d l i l

Special Features 29

There exists an Investor-State Dispute Settlement (ISDS) clause for foreign corporations to seek recourse for international arbitration, in the event investors were targeted by or treated unfairly under new government regulations; or against host-state for expropriation. This provision is also important in protecting the interest of Malaysian companies investing abroad.

Benefi ts & opportunities

Challenges

Key provisions

• The ISDS does not preclude the government from introducing new legislation or policies that are designed to preserve public interest and welfare, namely safety, environment and health.

• Criticism of the ISDS provisions largely lies on the threat and risks on sovereignty of nation states, but the ISDS provides safeguard provisions such as the need for consultation and mediation before fi ling for claims (Article 9.17), and the proof of losses to limit frivolous claims; investors to pay attorney fees; and fi nally the time threshold of three years and six months to bring an action (Article 9.20).

• The provisions in TPPA strengthen the transparency and integrity of ISDS. The conditions and timeline for arbitration to convene; provisions for hearings and documents are to be made public, with the exception of protected information or those categorised as national security.

• Although ISDS creates a more competitive situation for investors in dealing and operating their businesses, there is a risk for the government to legislate new law.

• TPP Parties are allowed to adopt a “negative-list”. This means governments can safeguard in the public interest and preserves certain investments policies, thus allowing liberalization to foreign entry except those listed in NCM (non-conforming measure). These NCM may downplay or negate the potential of TPPA in respective of attracting FDI and potential for outward investments at TPP member countries.

Investor-State Dispute Settlement (ISDS)

E-Commerce: New Business Opportunities

What is Dispute Settlement Mechanism?

• No customs duties on electronic transmissions.

• No less favourable treatment to digital products.

• Authentication and electronic customs administration documents to facilitate trade.

• Free cross-border data fl ow.

• Prohibition of forced data localisation requirement.

• Cooperation among TPP countries to help SMEs make use of e-commerce.

Special Features30

Benefi ts & opportunities

Challenges

• E-commerce may be further enhanced in the TPP member countries. This will pose even more challenges to the local brick and mortar retailers.

• Retailers may leverage on e-commerce, but they may not have the capacity and capability to penetrate foreign markets compared to savvier e-commerce companies from TPP countries with more mature e-commerce, such as the US and Japan.

Carve-outs for Government Procurement (GP) and State-Owned Enterprises (SOEs)

TPPA acknowledges the legitimate role played by SOEs in achieving social and development goals, while recognises the need for level playing fi eld. TPPA now establishes the new rules regarding the conduct of state owned enterprises (SOEs) to make decisions on a commercial basis, hence private businesses can now compete in the region on a level playing fi eld. In the area of government procurement, parties to TPPA are required to conduct procurement in a more transparent manner in order to provide predictability to suppliers.

• Malaysia has negotiated for concessions that were aimed at protecting national agendas and sensitive areas, namely Bumiputera agenda, government procurement and state-owned enterprises will get concession of a longer transition periods and differential treatments.

• The new level playing rules enable companies (e.g. IT or construction) to bid for government procurement projects in countries/markets previously inaccessible to foreigners. Ultimately, this will open up business opportunities for private Malaysian companies in domestic market and in all other TPPA member countries.

• Fair market access of digital products across TPP markets.

• E lec t ron ic au thent i c a t ion and signatures as well as paperless customs will facilitate electronic transactions and customs and export delivery.

• Companies may consolidate its existing data centres and use only one data centre to serve multiple TPP markets, this increases economies of scale. This will benefi t SMEs that seek to expand to other TPP countries, as they will not need to set up a data centre in every TPP market they serve, which will reduce cost.

• Free cross-border data flows and no forced data localization in TPP may provide more business opportunities to Malaysia’s shared services and data storage industries, thereby enhancing Malaysia’s position in these industries

• This chapter may also facilitate the emergence of non-traditional exporters in fields such as health care and research labs. For example, companies providing healthcare management services may serve clients across TPP markets when there are no restrictions on cross-border transfer of information

• TPP provides Malaysia some exclusions for procurement activities in goods (rice, electrical energy and natural water), services (financial services), and construction services (dredging services and slope works). Bumiputera suppliers and manufacturers will continue to enjoy the price preference for goods and services.

• Stimulus packages given during economic crisis are excluded from the GP requirement for 25 years.

Special Features 31

Labour: TPPA requires higher standards than existing Malaysian laws

• Construct ion services above a threshold value of SDR63 million (RM315 mil) will be liberalised upon entry into force (EIF). The threshold will be gradually reduced to SDR14 million (RM70 million) within 20-year period.

• The EIF will only have minimal impact as only 0.7% and 2.8% of government contracts in 2014 were above RM300 million and RM100 million, respectively. The 20-year period is gauged to be sufficient for local contractor to build their capabilities and competitiveness.

• Liberalization is not applicable for private-publ ic par tnership construct ion projects, rural development projects, corporat ized government entities such as MRT, Prasarana, etc, and 30% allocation to Bumiputera.

Partial Liberalisation of Government Procurement of Construction Services:

• SME / Bumipu te ra ’s c ont rac to r s w i l l be protected under the above value thresholds and special conditions.

• Mid- and large-sized contractors previously hav ing large exposure to Government-related projects are expected to be affected since these contractors have to compete with foreign contractors in the open competitive relative to international contractors. However, specialized contractors having to rely on past track records are expected to face increased pressure from competitors.

• TPPA requires compliance with key International Labour Organization (ILO) principles:

• Freedom of association

• Right to collective bargaining

• Elimination of forced labour

• Elimination of child labour

• Elimination of employment discrimination

• Establish acceptable work conditions – minimum wage, work hours and occupational safety & health (already implemented in Malaysia)

• Workers will be allowed to form multiple unions, be members of multiple unions, hold strikes based on consent of simple majority, and foreign workers to hold posts in unions.

• The obligations of “acceptable conditions of work” under Article 19.3.2 does not require adherence to any international standards. These “acceptable” conditions can be determined by member countries. This implies that Malaysia can still maintain fl exibility to implement additional domestic guidelines or pre-requisites that help to manage risks of disruptive labour disputes arising from the adoption of ILO rights.

• T P PA l a b o u r s t a n d a r d s a r e app l i c ab le ac ross the boa rd , whether c ompan ies ’ bus iness involve TPP countries or not.

• Ma lays ia must amend 8 laws to c omp ly w i t h T PPA lab ou r obligations and have specific plan in place to ensure compliance.

• Risk of production disruption arising from labour disputes.

• Labour costs due to compliance

Special Features32

Telecommunications: Pros and Cons

Financial Services – The Critical Sector

Key provisions Benefi ts & opportunities Key provisions• E n s u r e r e a s o n a b l e ,

non - d isc r iminator y and transparent access to and use of public communication infrastructures by suppliers from TPP countries.

• P r o m o t e t r a n s p a r e n t and reasonable rates for international mobile roaming

• The advantages possessed by the incumbents will be undermined, and will face greater competition from new foreign entrants.

- - RISK - -Upon entry into force of TPPA, Malaysia will be required to declare its forex intervention data for the very fi rst time, and may attract more speculations on the Ringgit.

• Provide Malaysian telecommunications suppliers. market access to other TPP countries.

• Greater market competition may offer more choices, drive down prices and improve services to end-consumers, including businesses.

• International mobile roaming rates may become cheaper.

Through “Joint Declaration of the Macroeconomic Policy Authorities of Trans-Pacifi c Partnership Countries”, each party agree to refrain from devaluating its country’s exchange rate for competitive advantage purposes.

But…But…

And…And…

• Malaysia has an exception to provide forex intervention data on an aggregate basis over the period of 6 months and release the data within 6 months after the period, compared to the originally quarterly data and release within 3 months.

• Malaysia reserves the right to provide subsidies or grant advantages to fi nancial institutions that are integral for the orderly functioning and development of the capital market.

• This includes subsidies and advantages granted in connection with the supply of any fi nancial service deem to be strategically important and necessary, i.e. for local micro, small and medium enterprises.

Bank Negara Malaysia (BNM) still retains its autonomy in managing the local currency, forex reserves and capital controls.

Special Features 33

Conclusion & Way Forward for Malaysia

ConclusionThe cost-benefi t analysis conducted by two independent organisations concluded that under TPPA, Malaysia’s national interest is taken care of and Malaysia is projected to achieve a gross domestic product (GDP) cumulative gain of USD107 billion to USD211 billion over a 10-year period from 2018 to 2027. This translates to an additional increase of GDP growth by 0.60 ~ 1.15 percentage points in 2027. Investment is projected to escalate by USD136-239 billion, while the accumulated savings from elimination of tariffs alone is estimated at USD12 billion over the same period. On the other hand, Malaysia’s non-participation in the TPPA would not only foregone the potential GDP gains but will also cost the country a cumulative GDP loss of USD9 billion to USD16 billion over the same 10-year period. TPPA is a boost to Malaysian businesses for duty free export to TPP countries after our graduation from GSP in 2014.

Way Forward for MalaysiaBased on the above, the TPPA is expected to bring more positive than negative impacts to Malaysian businesses. To realize the maximum benefi ts and avert the potential costs, capacity building measures, short-term adjustments and structural reforms have to be undertaken by the industries, especially SMEs and the Government so that all are not left out in this new normal era. Some of these measures may include upskilling of workers, business process reengineering, upgrading of infrastructures or facilities, industry consolidation, productivity improvements, review of frameworks or guidelines and certifi cations, innovation, etc.

In collaboration with:ACCCIM and Socio-Economic Research Centre (SERC) Sdn. Bhd.

Special Features34

1） 宗旨：

2） 援助金形式：

3） 补贴上限：

4） 申请标准

•

•

•

•

•

•

•

附加其他强制性要求:

2016 MDG补贴调整如下：

马来西亚对外贸易发展局调整市场开发援助金

Special Features 35

补贴金额

项�目 �金�额

注：参加费用包括会议注册费、展位费、展位搭建费、机票及酒店住宿费。

Revisions of the Market Development Grant (MDG)by MATRADE

MATRADE has made revis ions to the Market Development Grant (MDG) on

1st December 2015 to enable more eligible Malaysian Small and Medium Enterprises (SMEs) to avail themselves of the MDG.

1) OBJECTIVE - The Market Development Grant (MDG) is designed to assist Malaysian Small and Medium Enterprises (SMEs), Trade & Industry Associations, Chambers of Commerce & Professional Bodies in undertaking eligible export promotional activities.

2) FORM OF GRANT - A reimbursable financial assistance on eligible expenses incurred in undertaking export promotional activities.

3) GRANT CEILING - The maximum grant for any eligible company under the MDG program is RM 200,000.00. Any applicant that has utilised the maximum grant of RM200,000.00 since the commencement of MDG in 20 02, i s not el ig ible for consideration. This grant also will be subject to the availability of fund.

Special Features36

4) ELIGIBILITY CRITERIA

A. Small and Medium Enterprises (SMEs)

• Incorporated under the Companies Act 1965;• At least 60% equity is owned by Malaysian(s);• Export ing products made in Malays ia

or Malaysian services; and fulfi l l ing the following criteria:

1. Manufacturing (including agro-based):

i. Annual sales turnover not exceeding RM50 million (based on the latest Audited Financial Statement) OR

ii. Full-time employees not exceeding 200 (based on the latest EPF Statement)

2. Tradingi. Annual sales turnover not exceeding

RM20 million (based on the latest Audited Financial Statement) OR

ii. Full-time employees not exceeding 75 (based on the latest EPF Statement)

3. Services (excluding real estate, tourism, fi nancial & insurance industry):

i. Annual sales turnover not exceeding RM20 million (based on the latest Audited Financial Statement) OR

ii. Full-time employees not exceeding 75 (based on the latest EPF Statement)

B. Professional Service Providers (Sole Proprietor or Partnership)

• Incorporated under the Registration of Business Act (1956) / Registered under the respective statutory bodies for professional services providers;

• At least 60% equity owned by Malaysian;

• Exporting Malaysian services; and fulfi ll any of the following criteria:

i. Annual sales turnover not exceeding RM20 million (based on the latest Audited Financial Statement) OR

ii. Full-time employees not exceeding 75 (based on the latest EPF Statement)

C. Trade & Industry Associations, Chambers of Commerce & Professional Bodies

• Registered with the Registrar of Societies (ROS) or Associated Profess ional Authority.

ADDITIONAL MANDATORY REQUIREMENTS:1. Registered with MATRADE under the

Malaysia Exporters Registry (MER);

2. An active business entity;

3. Not a Government Linked Company (GLCs) or have Government equity (federal or state);

4. Export promotional activities which are subsidised or sponsored by third parties (e.g Ministries or Government Agencies/Trade and Indust r y As soc iat ions/Chambers of Commerce/Professional Bodies and Others) are not eligible for MDG;

5. Fo r co n s i d e ra t i o n, a l l co m p l ete applications must be submitted online and received by MATRADE within forty (40) days from the last date of the activity. All late applications will not be considered.

THE CHANGES IN 2016 ARE AS FOLLOWS:

a) The maximum grant amount has been increased from RM800 to RM2,000 for Trade & Investment Mission activities;

b) The maximum grant amount has been increased from RM800 to RM2,000 for Specialised Marketing Mission (SMM) activities organised by other Government Agencies, Trade Associations, Chambers of Commerce & Industry and professional bodies;

c) Active companies that are in operation for less than a year can apply for the MDG.

Special Features 37

The following information is extracted from the MDG Guidelines dated 1st December 2015:

GRANT AMOUNT

The table below indicates the amount of grant to be reimbursed for the eligible activities:

ACTIVITY AMOUNT

International Trade Fairs in Malaysia Maximum reimbursement of RM 5,000 per company per participation or the actual participation fees whichever is lower.

International Trade Fairs Overseas Maximum reimbursement of RM 15,000 per company per participation or the actual participation fees whichever is lower.

Trade & Investment Miss ions (MITI and Agencies)

Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.

Trade & Investment Missions organised by other Government Agencies, Chambers of Commerce Trade and Industry Associations and Professional Bodies

Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.

Specialised Marketing Missions (SMM) by MATRADE

Maximum of RM 10,000 per company per participation or the actual participation fees whichever is lower.

Specia l i sed Market ing Mis s ions (SMM) organised by other Government Agencies, Trade Associations, Chambers of Commerce/Professional Bodies

Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.

International Conferences Overseas Maximum of RM 2,500 per company per conference or the actual participation fees whichever is lower.

Listing Fee for Made in Malaysia products in Supermarkets/ Hypermarkets/ Retail Centres Overseas

Maximum of RM 20,000 per company per Supermarket/ Hypermarket/ Retail Centre per country or the actual listing fee, whichever is lower.

PLEASE NOTE THAT PARTICIPATION FEE INCLUDES REGISTRATION FEE, BOOTH RENTAL AND CONSTRUCTION, TRAVEL AND ACCOMMODATION.

For more information, please visit MATRADE’s website.

Source: Matrade External Trade Development Corporation (MATRADE)S M d E l T d D l C i (MATRADE)

Special Features38

“We aim to be the human capital

development authority in strengthening the

economic development of

Malaysia”

-PSMB Vision

PEOPLE | PROWESS | PROGRESS

PEOPLE | PROWESS | PROGRESS

1 THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

2 ISSUES & CHALLENGES TO MEET THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

3 WHY THE NEED FOR DIFFERENT APPROACH?

4 HRDF POOL FUND

5 HRDF’S SOURCE OF POWER

Special Features 39

1

THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

11th MALAYSIA PLAN: ACCELERATING HUMAN CAPITAL DEVELOPMENT FOR AN ADVANCED NATION

BUDGET 2016

CREATION OF MORE HIGH-SKILLED JOBS BY 2020

THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

CHAPTER 5: ACCELERATING HUMAN CAPITAL DEVELOPMENT FOR AN ADVANCED NATION

The Malaysian Government aims to achieve 35% of skilled workers by Year 2020.

Creation of over 1.5 million new jobs by the Year 2020.

FIVE(5) PRIORITIES

a. Strengthening Economic Resilience

b. Increasing Productivity, Innovation and Green Technology

c. EMPOWERING HUMAN CAPITAL

d. Advancing the Bumiputera Agenda

e. Easing the Cost of Living of the Rakyat

Special Features40

Creation of more high-skilled jobs

• Skilled workers are projected to comprise 35% of the workforce by 2020.• Existing industries will be encouraged to move up the value chain by investing in

high value added activities that require skilled workers

The three major occupational groups are skilled workers, semi-skilled and low-skilled. Skilled workers comprise managers, professionals and technicians and associate professionals. Semi-skilled workers comprise clerical support workers, service and sales workers, skilled agricultural, forestry and fi shery workers, craft and related trade workers, and plant and machine operators and assemblers. Low skilled workers comprise elementary occupations.

Source: Eleventh Malaysia Plan (2016 – 2020), Economic Planning Unit

2

ISSUES & CHALLENGES TO MEET THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

THE TENDENCY FOR EMPLOYERS TO OPT FOR NON-TECHNICAL TRAINING

INCLINATION FOR EMPLOYERS TO SEND EMPLOYEES FOR TRAINING IN THE FORM OF CERTIFICATES OF ATTENDANCE

ACHIEVING NATIONAL AGENDA TO PRODUCE 35% OF SKILLED WORKERS BY THE YEAR 2020

Special Features 41

ISSUES & CHALLENGES TO MEET THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

THE TENDENCY FOR EMPLOYERS TO OPT FOR NON-TECHNICAL TRAINING

THREE (3) SKILL AREAS CATEGORY WITH THE HIGHEST NUMBER OF APPROVED TRAINING PLACES

SAFETY & HEALTHQUALITY &

PRODUCTIVITYMOTIVATION & TEAMBUILDING

110,111 92,951 77,443

THREE (3) SKILL AREAS CATEGORY WITH THE HIGHEST NUMBER OF APPROVED FINANCIAL ASSISTANCE

MOTIVATION & TEAMBUILDING SAFETY & HEALTH QUALITY & PRODUCTIVITY

RM52.69 mill RM46.45 mill RM37.22 mill

INCLINATION FOR EMPLOYERS TO SEND EMPLOYEES FOR TRAINING IN THE FORM OF CERTIFICATES OF ATTENDANCE

Level of Certifi cation

99%

1%

Certifi cate of Attendance

Professional Certifi cate

Special Features42

ACHIEVING NATIONAL AGENDA TO PRODUCE 35% OF SKILLED WORKERS BY THE YEAR 2020

1,392 (10%)

1,013 (7%)

8,531 (52%)

8,927 (58%)

3,859 (28%)

5,352 (35%)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2015 2016 2017 2018 2019 2020

Jobs

to b

e cr

eate

d (‘0

00)

JOBS BY SKILLED CATEGORY (2015 – 2020)

Low-skilled Semi-skilled Skilled

3

WHY NEED FOR DIFFERENT APPROACH?

EMPLOYER CENTRIC vs NATIONAL AGENDA

THE NEED FOR DIFFERENT APPROACH

HRDF’S ROLE TO SUPPORT THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT

Special Features 43

EMPLOYER CENTRIC vs NATIONAL AGENDA

Focusing on Business Plan / Activities

Company Performance Related

Business Sustainability

Business Productivity and Profitability EMPLOYERS

EmployerCentric (Business Perspective)

Advanced economy status by the year 2020

Transition of all economic sectors towards knowledge-intensive activities

Creation of more High-Skilled Jobs to Produce 35% of Skilled Workers

Promoting Investment to Spearhead Economic Growth

Inclusiveness Growth for Sustaining of Economic Development

National Agenda(Macro Level)

vs

THE NEED FOR DIFFERENT APPROACH

EMPLOYERS

LEVY PAYMENTFulfilling

Business Needs

SUPPORT NATIONAL AGENDA

POOL FUND

COMPANY INDIVIDUAL ACCOUNT

MACRO LEVEL

BUSINESS PERSPECTIVE

BENEFITS TO THE INDUSTRY

MA

CRO LEVEL

INTERN

VENTIO

N

Special Features44

HRDF’S ROLE TO SUPPORT THE NATIONAL ACENDA ON HUMAN CAPITAL DEVELOPMENT

Support the National aspiration of having 35% skilled Malaysian workers by the year 2020.

Encourage existing employers to train their employees through certifi cation programmes recognized by professional bodies.

Shifting Industry from Labour-Intensive to Knowledge-and-Innovation-Based Economic Activities

Assist industries in identifying training that suit their needs.

HRDF POOL FUND - CONCEPT

• The HRDF Pool Fund is sourced from the employers’ individual HRD fund accounts and to be used especially to implement certification or development programmes or activities that correspond with the Government strategic directions / agenda and the advancement of technology, system and processes within the industries in order to enhance the employers’ level of competitiveness

• Among the countries that have implemented the concept of Training Pool Fund are:

4

HRDF POOL FUND

CONCEPT IMPLEMENTATION BENEFITS TO THE INDUSTRY MECHANISM GOVERNANCE

Special Features 45

SINGAPORE

The Singapore Workforce Development Agency (WDA) was established in September 2003.

The objective of WDA is to lead, drive and champion workforce development, enhancing the employability and competitiveness of Singapore’s workforce.

MAURITIUS The Human Resource Development Council (HRDC), operating under

the aegis of the Ministry of Education and Human Resources, was set up as a corporate body in November 2003.

HRDC has been vested with the responsibility to look after and promote the development of the labour force in Mauritius in line with the requirements of a fast growing economy

HRDF POOL FUND - IMPLEMENTATION

100% HRD Fund

30%

70%

Con

solid

ate

Indi

vidu

al E

mpl

oyer

s

Employees’ training by Employers

1. Outplacement Centre (Retrenched Workers)

2. Train and Replace (Replacement of Foreign Workers)

3. SMEs Up-skilling & Re-Skilling Programmes

4. Programmes for Future Workers 5. 1Malaysia Globally Recognised

Industry & Professional Certification (1MalaysiaGRIP) Programme

6. Certification / Value Added Programmes Identified by the Sectorial Training Committees (STCs) / Special Fund for Industrial Association Programmes

Identification and Development of New Programmes

Up-skillingtraining

Special Features46

BENEFITS TO THE INDUSTRY

1 Equip the Malaysian workforce with more certifi cation-base courses that will enhance the quality of their work; positively impacting the performance of their organisation.

• Provide avenue for employers and the industry to capitalise the improved quality of their workers that have gone through the up-skilling process, to enhance their level of competitiveness.

• Increase the supply of quality workers to support the business expansion needs of the industry.

2 Tactical driven skills certifi cations will allow the Malaysian workforce to gain a competitive advantage over their foreign counterparts working in Malaysia. In addition, employers with skilled workforce will be able to explore new and bigger business opportunities as they become more competitive in the global marketplace.

• Equip Malaysian workers with specifi c skills needed by the industries.

• Reduce the employers’ and the country’s dependency on foreign workers especially on the skilled job categories.

3 Assist employers of SMEs with insuffi cient levy balance to continuously train and upgrade the skills of their employees through the use of the pool fund.

• Continuously assist SMEs to develop their human resources capability and capacity by acquiring the latest knowledge, expertise and technology through continuous up-skilling process of their workforce.

4 More funding could be generated to the industries that have identifi ed their specifi c training needs

• More funding could be provided to the industry, through employers’ associations, to implement high end technical courses / programmes that have been identifi ed.

Increase labour supply in strategic and high impact areas that have been identifi ed to reduce the country’s dependency on external expertise and support the Government’s aspiration to achieve developed nation status by the year 2020 through a 35% skilled local workforce

Special Features 47

MECHANISM

INDUSTRY STAKEHOLDER

PSMB

BOARD OF DIRECTORS

Discussion with PSMB on the proposed programme(s)

Submission to the Board for approval

Discussion & Identifying Programmes

Representative from Government Agencies:

3 persons

Independent Members: 2 Persons

Composition of Board of Directors

Representative from Employers: 10 persons

Representative from MOHR:

1 person

Representative from MOF: 1 person

Engagement with industry members to identify specific programmes for their industry

GOVERNANCE

Proposal of the Programme(s)

Submission to PSMB

Evaluation by Evaluation Committee

Endorsement by the BoardROLES OF THE COMMITTEE

The proposed programme must bebased on industry(ies) needs.

The Evaluation Committeecomprise of:• Government Agencies• Chairman of each STC• Industry Associations• SME Association• Selected Board Members

1. Evaluate suggested programmes2. Weigh the financial aspect of programmes3. Selection of programmes based on the needs of industry4. Assess potential impact of the programmes towards National Agenda

Special Features48

5

HRDF’S SOURCE OF POWERSECTION 3: MAIN OBJECTIVE OF THE CORPORATION

SECTION 4: FUNCTION OF THE CORPORATION

SECTION 5: POWER OF THE CORPORATION

SECTION 3: MAIN OBJECTIVE OF THE CORPORATIONThe main objective of the Corporation incorporated under the Companies Act 1965 [Act 125] under the name “Pembangunan Sumber Manusia Berhad” shall be the imposition and collection of a human resources development levy for the purpose of promoting the training and development of employees, apprentices and trainees and the establishment and administration of the Fund.

SECTION 4: FUNCTION OF THE CORPORATION

The functions of the Corporation are –

c) To determine the terms and conditions under which any fi nancial assistance or other benefi ts are to be given

SECTION 5: POWER OF THE CORPORATIONWithout prejudice to its powers as prescribed in its Memorandum and Articles of Association, the Corporation shall have power to do all things expedient or necessary for, or incidental to, the carrying out of its functions, and in particular, but without prejudice to the generality of the foregoing provisions-

m) To prescribe procedures to be followed in matters relating to fi nance and accounts of the Fund; and

n) To do such other thing as may be expedient or necessary for the effi cient management and administration of the Corporation and the Fund.

der the gunan

on of a otingand nd.

Source: Human Resources Development Fund (HRDF)

HRDF’S SOURCE OF POWER

ACCCIM Activities 49

礼貌拜会马来西亚联邦法院首席大法官敦阿里芬

26-2-2016

Datin Zalita binti Dato’ Zaidan

Members of ACCCIM delegation having a group photo with Y.A.A. Tun Arifi n bin Zakaria, Chief Justice of the Federal Court, Malaysia. From left: Mr. Tan Kar Peng, Dato’ Tan Tian Meng, Dato’ Liew Sew Yee, Datuk Ter Leong Yap, Tun Arifi n bin Zakaria, Tan Sri Lim Sing, Mr. Michael Chai, Mr. Chong Jee Min and Mr. Boo Chin Liong

ACCCIM Activities50

Courtesy Call on Y.A.A. Tun Arifi n bin Zakaria, Chief Justice of the Federal Court, Malaysia

26-2-2016

Datuk Ter Leong Yap, President of the ACCCIM has led an ACCCIM delegation to pay a

courtesy call on Y.A.A Tun Arifi n bin Zakaria, Chief Justice of the Federal Court, Malaysia on 26th February 2016. This was the third time that ACCCIM was granted an audience by Y.A.A. Tun. The last two meetings were held respectively on 1st March 2013 and 20th December 2013.

Members of the ACCCIM delegation comprises of Deputy President Tan Sri Dato’ Sri Lim Sing, Vice-President Dato’ Liew Sew Yee, Deputy Secretary-General I I cum Chairman of Legal Affairs Committee Mr. Michael Chai, Deputy Treasurer Dato’ Tan Tian Meng, Deputy Chairman of Legal Affairs Committee Mr. Tan Kar Peng, Members of Legal Affairs Committee Mr. Chong Jee Min and Mr. Boo Chin Liong. Also present at the meeting was Datin Zalita binti Dato’ Zaidan, Special Offi cer I to Y.A.A. Tun.

The ACCCIM Legal Affairs Committee is a very active committee that formed to handle a variety of subjects and activities pertinent to law and its interpretation, in particular to study the implications

of selective legislations on economy and business, to organise or participate in activities with a view to promote better understanding of laws by the business community and to assist in arbitration of disputes involving members.

In conjunction with visit, the committee has prepared a memorandum for consideration and discussion with the Chief Justice of the Federal Court. Issues outlined in the ACCCIM memorandum were (1) The Rule of Law, (2) Confirmation of Judicial Commissioner, (3) Making court papers available online and court hearings more accessible to the public to improve transparency, (4) Video conferencing is used in the court hearings in East Malaysia. West Malaysia courts should adopt this practice, (5) Setting up of a Special Court to deal with and dispose of Drug Cases, and (6) E-fi lling System.

The discussion was conducted in an open and friendly manner. ACCCIM would like to express our heartfelt appreciation to Y.A.A. Tun for the opportunity granted, and willingness to discuss and listen to the views of the private sector.

Datuk Ter Leong Yap presented a souvenir to YAA Tun Arifin bin Zakaria as a token of appreciation

ACCCIM Activities 51

Ministry of National Resources and Environment (NRE) submitted the proposals to amend the National Land Code 1965, Strata

Titles Act 1985 and Land Acquisition Act 1960 to the offi ce of the Attorney General for approval and drafting. The amendments are expected to be tabled to the Parliament in March 2016.

In view that the amendments will seriously undermine the rights of property owners and impact the construction and property industry, ACCCIM had organised a dinner meeting with Y.Bhg. Dato’ Dr. Sallehuddin bin Ishak, Director General of Lands and Mines (Federal) (JKPTG) on 3rd March 2016 to deliberate the issue.

ACCCIM was represented by Tan Sri Dato’ Teo Chiang Kok, Deputy Secretary-General I, Dato’ Tan Tian Meng, Deputy Treasurer, Mr. Tan Kar Peng, Deputy Chairman of ACCCIM Legal Affairs Committee and Dato’ Ir. Andy Seo, Chairman of KLSCCCI Small and Medium Enterprises and Human Resource Development Committee.

During the meeting, a joint proposal paper was submitted by the ACCCIM, Building Management Association of Malaysia (BMAM), Malaysia Shopping Malls Association (PPKM) and National House Buyers Association (HBA) to reiterate the stakeholders’ concerns.

Representatives from stakeholder associations who attended the dinner meeting including Ir. Lee Weng Onn, Secretary General of BMAM, Prof. S. Venkateswaran, Treasurer of BMAM, Mr. Tan Joon Kai, Honorary Secretary of PPKM, Mr. Albert Soo, Legal Advisor of HBA, Dr. Ernest Cheong, Advisor of HBA, Cr. Chang Kim Loong, Honorary Secretary-General of HBA and Tuan Haji Abdul Murad Che Chik, member of PEMUDAH Focus Group on Registering Property (FGRP).

与联邦土地及矿务局总监会议Meeting with the Director General of Lands and Mines (Federal)

3-3-2016

Representatives attended the meeting had a photo session with Dato’ Dr. Sallehuddin bin Ishak (3rd from left). 2nd

from left is Tan Sri Dato’ Teo Chiang Kok, 4th, 5th and 6th from left are Dato’ Tan Tian Meng, Dato’ Ir. Andy Seo and Mr. Tan Kar Peng.

ACCCIM Activities52

Social Security Organisation (SOCSO) issued a circular dated 7th January 2016 that the SOCSO will

stop accepting the submission of Monthly Contribution Schedule (Form 8A) by compact disc, diskette and self-printed Form 8A and require all employers to remit their monthly contribution payment and schedule by internet banking from March 2016 onwards.

Further to ACCCIM’s letter to the SOCSO on 27th January 2016 to request for review of the implementation, ACCCIM had a meeting with Y.Bhg. Dato’ Dr. Mohammed Azman bin Dato’ Aziz Mohammed, Chief Executive Offi cer of SOCSO on 17th February 2016 to deliberate on this issue.

ACCCIM was represented by Deputy Secretary-General I Tan Sri Dato’ Teo Chiang Kok, National Council Member Mr. Lee Yew Chen and Chairman of ACCCIM Science, Technology and Innnovation Committee Datuk Hong Lee Pee.

ACCCIM had also extended the invitation to various stakeholder associations to join in the discussion. Representatives attended the meeting including Deputy Secretary General of Malaysia Retail Chain Association (MRCA) Dato’ Bruce Lim, General Manager of Malaysia Retailers Association (MRA) Ms. Evelyn Cheong, Executive Director of Malaysian Association of Hotel Owners (MAHO) Encik Shaharuddin M Saaid, Finance Manager of Malaysian Association of Hotels (MAH) Cik Azura Rabudin, Executive Secretary of Malaysia Budget Hotel Association (MyBHA) Puan Elly Kamali Mustapha, Secretary of Federation of Malaysian Manufacturers (FMM) Cik Sofi nar Abdul Halim and General Manager of SME Association of Malaysia Ms. Lai Ngan Yin.

Representatives attended the meeting had a photo session with Dato’ Dr. Mohammed Azman (7th from right). 6th from right is Tan Sri Dato’ Teo Chiang Kok, 3rd and 4th from right are Mr. Lee Yew Chen and Datuk Hong Lee Pee.

与社险机构首席执行员会议Meeting with Chief Executive Offi cer of

Social Security Organisation (SOCSO)17-2-2016

ACCCIM Activities 53

Congratulations Congratulations

2016年中总中学科技创新比赛新闻发布会

ACCCIM Press Conference on STI Competition 2016 16-1-2016

ACCCIM calls for active participation of secondary school students in STI competition 2016

ACCCIM Activities54

Group photo of participants of the courtesy visit. 6th from left: YB Dato’ Seri Ong Ka Chuan, H.E. Eduardo Frei Ruiz-Tagle, Tan Sri Dato’ Koo Yuen Kim, Dato’ Low Kian Chuan.

接待智利前总统H.E. Eduardo Frei Ruiz-Tagle

Courtesy Visit by H.E. Eduardo Frei Ruiz-Tagle, Former President of Chile8-3-2016

Courtesy Visit of Taiwan Trade Center, Inc. Kuala Lumpur Representative Offi ce

吉隆坡台湾贸易中心礼貌拜会

Dato’ Low Kian Chuan presented the ACCCIM publications to Ms Tasha Hsiao (left), accompanied by Ms Jessie Tseng.

26-2-2016

ACCCIM representatives had a photo with Former President of Chile. From left: Dato’ Tan Tian Meng, Mr. Michael Chai, H.E. Eduardo Frei Ruiz-Tagle, Dato’ Low Kian Chuan and Dr. Chua Siew Kiat.

ACCCIM Activities 55

From left: Datuk Dr. A. T. Kumarajah, Dato’ Sri Tan Thian Poh, Tan Sri K.K. Eswaran, Datuk Ter Leong Yap, Tan Sri Teo Chiang Kok, Datuk Lim Kok Boon and Mr Michael Kang.

与马来西亚印度人总商会会长之会议

Meeting with President of Malaysian Associated Indian Chambers of Commerce and Industry (MAICC)29-1-2016

中国云南省商务厅代表团到访Visit by Delegation of Department of Commerce of Yunnan Province, China

27-2-2016

Tan Sri Lim Sing (7th from left) presented a souvenir to Mr. Yang Hui.

ACCCIM Activities56

中总各属会主办的主要活动Major Activities Organised by ACCCIM’s Constituent Chambers

50th Anniversary Dinner of ACCCI Sarawak 12-1-2016

Offi cial Launching of “MyHero” Award 2.0 by KLSCCCI 18-2-2016

The Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor (KLSCCCI) and Nanyang Siang Pau have once again

jointly organise the “MyHero Award” to pay tribute to peoples who have done great deeds whereby the spirit of helping each other regardless of ethnic groups is disseminated. This is the second joint MyHero Award since 2013. “MyHero” Award is supported by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and Department of National Unity and Integration of the Prime Minister’s Department [JPNIN]. Sinar Harian and Orizon are the media partners for this award.

The “MyHero” Award 2.0 was officially launched by Y.B. Tan Sri Datuk Seri Panglima Joseph Kurup, Minister in the Prime Minister’s Department on 18th February 2016 at the Wisma Chinese Chamber, and was attended by 140 guests. The KLSCCCI is conferred as “Rakan Perpaduan” by Y.B. Tan Sri Datuk Seri Panglima Joseph Kurup in appreciation of its efforts in promoting national unity.

“MyHero” Award is organised as one of the ten objectives set by the KLSCCCI, i.e. to promote national unity and racial harmony. KLSCCCI hopes to spread the information to all ethnic groups ef fectively. Meanwhile, this cross racial award is also the fi rst collaboration between various media partners of different languages.

Eligibility for Nomination (a) This award is open to all to participate; the nominee(s) and proposer

must be Malaysian citizen and are still alive.(b) The proposer can be one of the involved characters in the story or

can be the witness of the incident.(c) The incident had occurred in the period since Independence Day until

now (after 31st August 1957 until present) and based on original and true story only; fi ctional stories will not be entertained.

(d) Once selected, both parties must agree to be interviewed by the media and for the story to be published.

Method of Nomination (a) The proposer must submit the story (in short summary) to the

organiser including the details of the involved hero/heroine, time, location and photos (if any). The story may be sent via e-mail, by post or fax to the organiser. For those who are unable to write down the story, they may contact the organiser and provide details of the incident. All the manuscripts will not be returned.

(b) All the manuscripts must be submitted to organiser before 15th April 2016, late submission will not be entertained.

Selection Procedure and Reward (a) The panel of judges will select 6 winners with most touching stories.(b) The organiser will conduct an interview with the characters to follow-

up in the story on the incident details.(c) The 6 selected winners will get a reward of RM5,000 in cash and a

trophy each and the winner will be appointed by JPNIN as “National Unity Ambassador”.

For enquiries, please contact Secretariat of KLSCCCI at Tel: 03-42532135; Fax: 03-42532524; E-mail: inquiry@chinesechamber.org.my.

《英雄奖》2.0  “MyHero” Award 2.0

提名资格                                                               

提名方法                                                           

遴选程序及奖励方式                                          

ACCCIM AND CONSTITUENT CHAMBERS

The Associated Chinese Chambers of Commerce and Industr y of Malaysia (ACCCIM) is the national level organisation of the Chinese chambers of commerce and industry in Malaysia.

The ACCCIM was founded in 1947 as a society under Malaya’s Societies Act. It has 17 Constituent Chambers located separately in the 13 states of the nation. Direct and indirect membership of all Constituent Chambers are well over 100,000, representing Malaysian Chinese companies, individuals and trade associations.

The Associated Chinese Chambers of Commerce and Industry of Malaysia ( ACCCIM )6th Floor, Wisma Chinese Chamber, 258, Jalan Ampang, 50450 Kuala Lumpur, Malaysia. Tel l 603-4260 3090 / 3091 / 3092 / 3093 / 3094 / 3095Fax l 603-4260 3080E-mail l acccim@acccim.org.myHomepage l www.acccim.org.my

Malaysia Map showing location of 17 ACCCIM Constituent Chambers 17

Kelantan CCCI

Terengganu CCCI

ACCCI Pahang

Kluang CCCI

Johor ACCCI

Batu Pahat CCC

KLSCCCI

Perak CCCI

Penang CCC

Negeri Sembilan CCCI

Kedah CCCI

Malacca CCCI

North Perak CCCI

Klang CCCI

Perlis CCCI

ACCCI Sarawak

Sabah UCCC