NO: PP 16730/08/2012 (030376)
2 nd Hazards Asia Pacific Symposium
Switch Asia Project on Environmental Declaration Scheme
Visit to Singapore Manufacturing Federation
World Food Uzbekistan 2013
© Copyright Reserved
Federation of Malaysian Manufacturers
No 3, Persiaran Dagang PJU 9
Bandar Sri Damansara
52200 Kuala Lumpur
FMM has eight branches and
two representative offices located in
Kedah, Penang, Perak, Selangor,
Negeri Sembilan, Malacca, Johor,
Eastern, Sabah and Sarawak.
Any material extracted from
Business in Action @ FMM to be
quoted or reprinted should contain
an acknowledgement to FMM or its
Dr Yeoh Oon Tean
Chief Executive Officer
General Manager (Trade)
Ng Lee Lee
International Business Division
Florance S Gabriel
Communications and Publications Unit
Marketing Unit (+6012-383 3857)
Percetakan Okid Sdn Bhd
No. 2, Jalan SS13/3C
Subang Jaya Industrial Estate
47500 Subang Jaya, Selangor
03 2 nd Hazards Asia
04 Switch Asia Project on
Scheme for Construction
and Building Materials
05 FMM Manufacturer of
the Year Award (SMIs)
Kina Roof Industries (Sabah)
06 World Food Uzbekistan 2013
07 Over 26 Wood Products to be
Licensed by September 2013
08 Visit to Singapore
10 Conference on
Marketing & Branding
11 Updates on Industrial Designs
(Amendment) Act 2013
12 Is Your Business Competition
16 Events in Pictures
Trade & Policy
18 Free Customs Advisory
Services for FMM Members
20 Updates on Production Costs
of Mainland China
Happenings at Branches
02 BIA@FMM | May – Jun 2013
2 nd Hazards Asia Pacific Symposium
An international audience of 240 process safety experts and regulators gathered in Kuala Lumpur for the 2 nd Hazards
Asia Pacific (Hazards AP) Symposium held from April 16 – 18, 2013. The Symposium was jointly organised by the
Chemical Industries Council of Malaysia (CICM) and the Institution of Chemical Engineers. It was officiated by Tan Sri
Mohd Sidek Hj Hassan, Chairman of the Petroliam Nasional Berhad (PETRONAS).
With the theme: “Achieving Operational Excellence in
a Competitive Environment”, the Symposium provided
a platform for process safety experts and regulators to
discuss the latest developments and challenges faced
by companies in the Asia Pacific region on chemical
Tan Sri Mohd Sidek Hj Hassan in his keynote address
reminded companies that to remain competitive in the
long run, chemical companies in the Asia Pacific region
will need to contend with compliance to new regulations
and standards, rising energy and production costs and
increasing expectations to innovate and create sustainable
products and businesses. He also stated that maintaining
a good track record of health, safety and environment
performance is a must and that it is considered as a
license for companies to continue operating.
In his welcome speech, CICM Chairman Dr Abd Hapiz
Abdullah highlighted that “in the midst of enormous growth
in the chemical industry, particularly in the Asia Pacific
region, process safety continues to be more relevant than
ever. What’s more, with near instant communications, if
the chemical industry wants to keep
its license to operate, it must improve its health, safety
and environment performance by adopting a set of high
standards which are receptive to the views of the public
and other stakeholders”.
Keynote speakers featured in the three-day symposium
included Judith Hackitt, Chair of the British Health &
Safety Executive, Hans Volkmar Schwarz, Group-wide
Vice President of Process Safety at BASF, Datuk Wan
Zulkiflee, Chief Operating Officer and Executive Vice
President for Downstream Operations at PETRONAS.
Group photograph of the Heads of Safety and Health in
Malaysia, UK and China.
Other speakers included Wang Haoshui, the Director-
General in the Department of Hazardous Chemicals
and Work Safety Supervision, Lee Yang Soo, Senior
Vice- President for Health, Safety and Environment at
SK Innovation, John Bresland, President of Process
Safety Risk Assessment, Ian Hamilton, who was
appointed to run the global human factors team at
leading EHS consultancy practice, ERM, and Juan
Gabriel, Worldwide Managing Director of Sustainable
Operations for DuPont Sustainable Solutions.
Among the topics addressed by the keynote speakers
included Complacency to Anxiety – the Road to
Process Safety Leadership, Achieving Business
Sustainability Through Effective Management of
Process and Operational Risks, Supervision and
Administration of Safety in the Chemical Industry in
China, and Design of Buildings in Petrochemical
Facilities Using a Risk-Based Approach.
The Symposium also comprised a twin track technical
programme containing more than 40 peers reviewing
papers pertaining to process safety design and analysis,
asset integrity, operational safety, challenges of regulatory
compliance, process safety management, learning from
major hazards incidents and management of abnormal
operations; which highlighted the importance of
exchanging knowledge, learning from past mistakes
and sharing of best practices.
Some of the delegates who attended the
Hazards Asia Pacific Symposium
The next Hazards Asia Pacific Symposium is scheduled to
take place in May 2014 in Kuala Lumpur.
May – Jun 2013 | BIA@FMM 03
Switch Asia Project on Environmental
Declaration Scheme for Construction
and Building Materials in Malaysia
FMM had on March 14, 2013, organised a free briefing and dialogue session on Identification of Environmental
Declaration Scheme for Construction and Building Materials in Malaysia chaired by John Lee Boon Haw, FMM Council
Member. A total of 32 participants from 25 companies manufacturing construction and building materials attended the
briefing. The purpose of the briefing was to pre-screen ten product categories in the construction and building materials
industry that would be selected for the project.
The Switch Asia project, funded by the European Union,
aims to transfer existing best practice in sustainable
construction materials, which is currently absent in
Malaysia. It seeks to produce tools, guidelines and the
supporting mechanisms for product footprinting and
labelling that meet the needs of the local and international
market and create the recognition for sustainable products
from SMEs in the Malaysian construction and building
materials sector. The three-year project will involve an
international collaboration with Carbon Trust, which is the
pioneer of product carbon footprinting and carbon
management in United Kingdom.
Following the briefing in FMM, SIRIM Berhad as the
project leader conducted a brainstorming session on
March 21, 2013 with FMM and other project partners
i.e Malaysian Green Building Confederation and Building
Materials Distributors Association of Malaysia to finalise
the product selection. The final product categories agreed
to by all partners are as follows:
• Coatings such as paint, sealant, primers;
• Sanitary wares made of ceramic, metal & plastics;
• Plumbing pipes made of PVC, PE, copper and steel;
• Floor finishing e.g tiles, plasters, fiber cement,
• Wall panels such as Gypsum plasters, fiber cement,
timber, metal, tiles, glass;
• Masonry units like concrete, clay, recycled materials;
• Structural steel (truss & frame) – steel;
• Ceilings such as Gypsum plasters, fiber cement,
• Architectural metal – railing & lourves made of brass,
steel and aluminum; and
• Architectural roofing made of clay, metal sheets,
concrete & recycled materials.
FMM members especially the SMEs involved in the
manufacturing of selected product categories are
encouraged to participate in this Project as they
could be among the first ten SME market leaders in
Malaysia to obtain carbon footprinting for construction
and building materials.
For further details on the project, please contact
Nur Hafizah of the FMM Secretariat at email:
John Lee Boon Haw, FMM Council member (left) and Letchumi Thannimalay from SIRIM Berhad during the Q&A session at the briefing
04 BIA@FMM | May – Jun 2013
FMM Manufacturer of the Year Award (SMIs)
Kina Roof Industries (Sabah) Sdn Bhd
Established in 2008 by a group of businessmen with more than ten years experience in cold roll form industry, Kina
Roof is currently equipped with the most up-to-date cold roll form machines available in the market that comply
with the Australian Standards; AS1599 and AS 1365.
Kina Roof is the leader in metal roofing industry in
Sabah. This family-owned business achieved
outstanding double digit sales growth and an
exceptional nine-fold increase in profit after tax in
2011. Kina Roof’s motto is “those in the market, we
improve it; those we don’t have, we do it”. Their
products are patented under the brand “ROFO”
On winning the award, Lau Lee Chung, Kina Roof’s
CEO said that this recognition is a good start for the
Company to move in the right direction. Lau said that
Kina Roof was established with very limited financial
resources and manpower. “Focus and continuous
improvement were the most important factors that
contributed to our success in winning the award”
Lau further added.
The award was presented to Kina Roof Industries
(Sabah) Sdn Bhd during FMM’s Annual Dinner held
on November 29, 2012.
Lau Lee Chung, Kina Roof’s CEO (right) after receiving the award from
Datuk Dr Rebecca Fatima Sta Maria, Secretary General,
Ministry of International Trade and Industry (centre) while
FMM President Tan Sri Datuk Yong Poh Kon looks on
Visit to PKT Logistics Group Sdn Bhd
On March 7, 2013, 55 members led by FMM Council Member and Chairman of FMM-SMI Working Committee Tan Sri
Dato’ Soong Siew Hoong visited PKT Logistics Group Sdn Bhd (PKT) at One Logistics Hub, Shah Alam. The group was
welcomed by PKT’s Chief Executive Officer/Managing Director, Dato’ Michael Tio and his management team.
PKT which was founded in 1974, specialises
in custom clearance for cars. Located at
Shah Alam, Selangor, it consists of The Ship
(headquarters), The Wave (environment friendly
warehouse) and The Lighthouse (warehouse
expected to be ready end of this year).
FMM delegates were briefed on PKT’s strategy
and expansion plan by the Group Chief Operating
Officer, P’ng Tean Hau. Dato’ Michael Tio shared
on how he turned the company into a logistics
giant and his unique management style,
capitalising on the workforce of Generation Y
and the social networking media, including using
Facebook as a tool to achieve his business goals.
The visit ended with a tour to a pineapple farm
located next to the headquarters, managed by
the staff of PKT Logistics.
Group photograph of members who visited PKT Logistics Group Sdn Bhd on March 7, 2013
May – Jun 2013 | BIA@FMM 05
World Food Uzbekistan 2013
Over 180 exhibitors from 25 countries participated in the World Food Uzbekistan 2013 which was held in Tashkent,
Uzbekistan from April 3 – 5, 2013. Four Malaysian companies namely Erapoly Global Sdn Bhd, Inno-Wangsa Oils
and Fats Sdn Bhd, See Hau Gobal Sdn Bhd and WMA Trading Sdn Bhd participated for the first time in the Fair which
attracted over 6,000 trade visitors.
According to Abdulaziz A Yunusov, Regional Representative
and Marketing Officer of MATRADE in Tashkent, there are
vast business opportunities for Malaysian companies
in Uzbekistan. Malaysian exporters can explore and work
with the local importers or purchasers who are interested
in their products.
Business matching discussion in progress at the Exhibition
Chow Kien Yu (left) of See Hau Global being interviewed by the
local Uzbekistan TV station
06 BIA@FMM | May – Jun 2013
Over 26 Wood Products to be Licensed by
The Customs Prohibition of Export and Import Order 2012 was gazetted on December 31, 2012. The new regulation
requires exporters of 26 types of wood products and importers of three types of wood products to be registered and to
obtain export and import licenses from Malaysian Timber Industry Council (MTIB). Implementation of the new ruling would
come into effect on September 2013.
FMM, in a letter dated April 18, 2013 to the Director-General of MTIB, highlighted the following concerns raised by
FMM members on the imposition of the above new regulation:
• Additional cost incurred in applying for the license which adds to the cost of doing business. These include application
fees and membership fees to join the associations as listed by MTIB;
• Requirement to be a member of the listed associations even through some of the members are already members of
FMM or other associations;
• Imposition of export taxes on finished wood products is unnecessary and acts as a non-tariff barrier to trade.
It is also inconsistent with the Article XI of the World Trade Organisation’s General Agreement on Tariffs and Trade
(GATT) which generally prohibits export restraints such as export licensing; and
• The Malaysian Government is currently negotiating comprehensive Free Trade Agreements (FTAs) such as the Trans
Pacific Partnership Agreement and the Malaysia-European Union Free FTA that require the removal of NTBs such as
export licensing. This new export requirement on most wood products would only hamper the successful completion of
FMM also proposed the following:
• As the main objective of imposing the regulation is to collect data on raw timber and semi-finished timber, finished
products should be exempted from this requirement; and
• The requirement for applicants to be a member of any one of the listed associations in the MTIB Act should be removed
as it effectively increases the cost of doing business.
For further information on The Customs Prohibition of Export and Import Order 2012, please contact Leong Soke Ching
of the FMM Secretariat at firstname.lastname@example.org.
FMM will be organising a Briefing on Updates on Requirement for Licenses for Export and Import on Tuesday, July 2,
2013, from 9.00am to 4.30pm at Wisma FMM to update companies on the licenses requirement for wood products and
other products listed in the Customs Prohibition of Export and Import Order 2012 i.e skin, leather, wool, milk based
products, rice flour, fish etc.
For further information on the Briefing, kindly contact Nur Hafizah of the FMM Secretariat at email@example.com.
May – Jun 2013 | BIA@FMM 07
Visit to Singapore Manufacturing Federation
The SMI Working Committee and Human Resource Management Committee jointly organised a visit to the Singapore
Manufacturing Federation (SMF) on April 15, 2013. The 22-member delegation which included members from
Johor was led by Tan Sri Dato’ Soong Siew Hoong, Chairman of the FMM SMI Committee and Davies Danavaindran,
FMM Vice President and Chairman of the FMM HRM Committee.
The main objective of the visit was to better understand issues affecting the manufacturing sector in Singapore, including
Government policies and incentives for SMEs. The delegation was received by SMF President, George Huang.
Key highlights of the visit include the following:
• Minimum Wage – Singapore does not have a minimum wage policy as the Government believes that supply and
demand would determine the right wages;
• Foreign Workers (FW) – There is a tightening of foreign worker employment in Singapore. The tightening was triggered in
early 2000 when the Singaporean economy overheated. The high growth was unsustainable as it was heavily dependent
on foreign workers. Singapore decided to grow the economy by improving productivity. A huge fund was set aside
each year by the Government to assist industries increase productivity, including implementing ERP and automation.
The growth in productivity and revenue is shared with companies and workers. To reduce FW dependence, the
Government increases the levy each year. However, the levy is given back to industries to upgrade/automate. A quota
is imposed on FW employment based on industry as some industries in Singapore still require FW as locals are not
prepared to work over time;
• Employment Practices – The Singapore National Employers’ Federation formed a Tripartite Committee with representatives
from the public and private sectors and unions to resolve all issues related to human resource. Retirement age in
Singapore is 62 years old. The Government has a Retirement and Re-employment policy. Unemployment is 1.9%; and
• Assistance for SMEs – Singapore has over 160 finance and grant schemes for SMEs. Incentives given are always
tied to productivity. Grants are given to activities such as investment in ICT and establishing operations in the Iskandar
region and Riau. Singapore has SME Centres to provide consultation.
SMF believes that political boundaries should not deter investments from both sides and looks forward to greater exchange
of visits and discussions, including setting up joint working groups to discuss issues affecting the manufacturing sector of
both countries. The one-day visit ended with a tour to Makino Asia Pte Ltd, a precision engineering company producing
milling machines and electrical discharge machines.
Group photograph of the visit to Singapore Manufacturing Federation on April 15, 2013
08 BIA@FMM | May – Jun 2013
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• Comprehensive and reliable one-stop
business sourcing handbook that
provides in-depth profiles of over
2,400 manufacturers, exporters and
• Product index of over 11,500 items
to provide importers, exporters and
buyers with quick and easy reference
for business opportunities;
• The latest information on the Malaysian
Economy, trade statistics;
• A list and contact details of Ministers
and Ministries in Malaysia;
• Easy-to-refer index according to
states, industry groupings, products and
services and certified ISO companies,
in alphabetical order; and
• Classification by industry groups based
on International Standard Industrial
Classification (ISIC) code.
Products & Services Catalogue for:
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• Textile, Wearing Apparel and Leather;
• Manufacture of Furniture Wood and
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Federation of Malaysian Manufacturers (7907–X)
Wisma FMM, No 3, Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200 Kuala Lumpur
Tel: 03-62867200 Fax: 03-62741266/7288 E-mail: firstname.lastname@example.org Website: www.fmm.org.my
Communications & Publications Unit (Attn: Ida Tan)
NOW ON SALE at FMM Head Office, Branches and Representative Offices
May – Jun 2013 | BIA@FMM 09
Conference on Marketing & Branding
Atotal of 192 participants comprising Chief Executive Officers, Managing Directors, General Managers, Marketing
Managers, Brand/Product Managers, Marketing Communication Managers, Customer Relationship Managers,
Business Development Managers or Executives attended the FMM Conference on Marketing & Branding which was
held on April 18, 2013 with the theme Retail Marketing – Insights & Opportunities in Engaging Consumers.
The event was officiated by
Dato' Saripuddin Kassim, Secretary
General, Ministry of Domestic Trade,
Cooperatives and Consumerism.
One of the issues raised during the
dialogue session with Dato’ Saripuddin
Kassim was the inability of SMEs
to supply to hypermarkets due to
high listing and advertisement rates.
The Secretary General requested
FMM to coordinate a meeting among its
members and to submit its proposals to
reduce listing fees in hypermarkets.
Speakers at the Conference included
senior representatives from Retail
Group Malaysia, Nielsen Malaysia and
Singapore, Nelson’s Franchise,
dunnhumby Malaysia, CBSA Online
Sdn Bhd and MYDIN.
FMM Marketing & Branding Conference 2013 attracted over 200 participants
MTDCC Secretary General, Dato’ Saripuddin Kassim (centre) receiving a token
of appreciation from FMM President, Tan Sri Datuk Yong Poh Kon (left) while
YM Raja Dato’ Abd Aziz Bin Raja Muda Musa, Vice President of FMM looks on
Caroline Chong of dunnhumby Malaysia briefing
participants on TESCO’s Loyalty Programme
10 BIA@FMM | May – Jun 2013
Updates on Industrial Designs (Amendment)
At a recent meeting of the FMM Branding and Intellectual
Property Rights Committee held on April 5, 2013, members
were informed by Charmayne Ong of SKRINE that the
Industrial Designs (Amendment) Act 2013 (“Amendment Act”)
was gazetted on January 22, 2013 and would come into
force on July 1, 2013. The following are some of the
amendments made to the Industrial Designs Act 1996
under the Amendment Act which will have a significant
effect on the protection and exploitation of industrial
designs in Malaysia:
• The new amendments will require prospective
applicants to ensure that the design they intend to
register with the Malaysian Intellectual Property
Office be new on a global basis. Currently an
industrial design has to be only new in Malaysia to
qualify for registration. This requirement of novelty on
a global basis will not apply retrospectively to cases
where the design has already been registered.
This would include cases where legal proceedings
in respect of such registered designs are pending.
However, it is crucial to note that any application for the
registration of an industrial design pending on the date of
coming into force of the amendments will be dealt with
under the IDA as amended by the Amendment Act. This
being the case, although the amendments will only come
into force on July 1, 2013 it would be necessary to ensure
henceforth that designs for which registration is sought, are novel
on a global basis;
• The proposed amendments will enable the proprietor of an industrial
design to protect an industrial design up till a maximum of 25 years
(as compared to the current 15 years) provided renewal fees are paid before the
expiry of each term; and
• The new provisions are being included to clarify that a security interest can be created over a registered industrial
design or an application for the registration of an industrial design.
For further enquiries, please contact Leong Soke Ching of the FMM Secretariat at email@example.com.
Requirement of Certificate of Approval for Electrical Equipments
In order to enhance the safety of electrical equipments, the Energy Commission (EC) will now be regulating
35 new electrical equipments. The manufacturers and importers of the electrical equipment are required to obtain
the Certificate of Approval from EC before they can be sold in the market. The effective date of the implementation
has been postponed from January 1, 2013 to January 1, 2014.
The affected electrical products include massagers, air conditioners, adaptors, chargers, door bell & chimes, portable
cable reels, Edison screw holders & caps, LED lamps, bottle warmer sterilizers, water dispenser/filters, dish washer
and other utensils, decorative fans, ionic facial sauna or similar to it, audio/video recorder up to four channels and
etc. The complete list of regulated electrical equipment can be located at http://www.fmm.org.my-Resource
For enquiries, please contact Maygelah Siva of the FMM Secretariat at tel: 03-62867320 or Fax: 03-62741266/7288
or e-mail: firstname.lastname@example.org.
May – Jun 2013 | BIA@FMM 11
Update on Competition Law (Part 1)
Is Your Business Competition Law Compliant?
The Malaysian Competition Commission (MyCC) has made it clear that the beginning of 2013 will see the end of
its ‘soft touch’ approach to enforcement of Malaysia’s Competition Act 2010 (CA 2010), which came into force on
1 January 2012. Now is the time to ensure your business is competition compliant. The best way to ensure compliance
is to put in place a “competition law compliance programme”. This article sets out the steps involved in establishing a
compliance programme and includes some practical tips.
Where to Begin?
As a preliminary step, you should ensure that the CA 2010
applies to your business. The CA 2010 applies to “any
commercial activity”. This is a broad concept so it is
likely that the activities of most businesses in Malaysia –
big and small – will be caught by the Act.
What is the Purpose of a Competition
Law Compliance Programme?
A competition law compliance programme is designed to
perform a number of key functions:
• Identify any existing competition law breaches and
• Give the business an opportunity to rectify those
breaches and manage the risk areas; and
• Ensure that ongoing competition compliance becomes
part of the culture and ethos of the business.
The following steps set out how to achieve these functions
STEP 1: Identifying Competiton Law
Breaches or Risk Areas
This initial step will be the most critical for a business
undertaking a competition law compliance programme
for the first time. The aim of this step is to identify:
• existing agreements or practices that are, or may be,
against the law; and
• the areas of the business which are most at risk of
breaking the law in the future.
In practice, this step requires a comprehensive review
of all of the legal arrangements your business has in
place. This will include written and verbal (gentleman’s)
agreements, decisions of trade associations, as well as
informal ‘understandings’ reached (through a nod and
a wink) that are not documented.
If your business has a ‘contract register’ (a formal record
of the agreements entered into by the business), then you
should be able to easily identify the written agreements
for review. If the business does not have a record of its
agreements, this may present a good opportunity to
It will be much harder to identify verbal agreements or
understandings that are reached as part of the day to
day activities of your business. A good way to identify
arrangements or practices that exist is to conduct
face-to-face interviews of relevant staff members.
The interview should seek to build a picture of:
• who the staff member deals with outside the business;
• what meetings the staff member attends;
• where meetings are with competitors, what is the
purpose of those meetings;
• how prices are determined for goods;
• how decisions are made about production or investments
in new technology or production facilities; and
• who makes decisions about which markets the
business operates in.
This is not an exhaustive list and more questions will no
doubt arise as the answers are provided to the above.
It will not be necessary to interview all of your staff, just
those in risk areas. For example, those responsible for
buying and selling, those who attend trade association
meetings on behalf of your business, those involved in
regular dealings with your competitors, as well as all
senior management. You may wish to have someone
independent of the business conduct these interviews.
It should be made clear to staff members that they
will not face any consequences for disclosing any
arrangements or practices that are against the law.
At this stage, the objective is not punishing staff
members; it is to identify areas of concern for the
business so that you can decide how to deal with them.
Once you have established an ongoing compliance
programme, you may wish to include some consequences
for staff members that break the law after appropriate
training has been given.
"Published with permission of The Malaysian Current Law Journal
Sdn Bhd and CLJ Legal Network Sdn Bhd."
Part two of the article will be published in the
next issue of the BIA.
12 BIA@FMM | May – Jun 2013
Assistance to Members
Flooding at Teleflex Medical Sdn Bhd
Through the efforts of the Branch, Majlis Perbandaran Taiping (MPT) convened a special meeting on February 25,
2013 under the Taiping IPMC to discuss the acute flooding problem faced by Teleflex Medical Sdn Bhd (Teleflex).
The meeting was chaired by Borhan bin Abdul Halim, Secretary for MPT and noted that the main reason for the
flooding was the backflow of the water from two neighbouring factories which had weak drainage systems.
The representatives from the two companies who were present at this meeting were directed to improve
their drainage system within three months failing which they would be compounded. At the Taiping Regional
Sub-Committee meeting on April 2, 2013, Abdul Mutalib reported that one of the companies had complied and
since then there have been no reoccurrence of flooding.
Improving the Delivery of the State Immigration Department of Perak
The Branch wrote to the Director of State Immigration of Perak on February 27, 2013 to highlight the following
problems faced by members in their applications for foreign workers:
• Queue numbers are taken up fast even though some companies arrive and queue from as early as 6.00am;
• Limited number of counters are opened during peak periods;
• The computer system frequently break downs; and
• Calling visas take up to two weeks or more to be approved although it is indicated as three days in the
FMM made the following recommendations:
• Have separate counters to process applications for foreign workers by companies and agents;
• Look into the feasibility of establishing foreign workers division at regional immigration offices to ease the
load at the Ipoh Immigration Office; and
• All counters should operate during the peak hours.
The new Director of State Immigration of Perak, Ahmed Syam bin Che Kub @ Ab Rasid in a letter dated April 1,
2013, informed that queue numbers would be abolished and additional officers would be stationed at the
counters during the peak period from 8.00am to 10.00am. Efforts are also being taken to improve the reliability
of the computer system.
FMM EXPORT PROGRAMMES
• Cambodia & Vietnam – FMM Focus ASEAN Series: Cambodia & Vietnam – June 18, 2013
INTERNATIONAL TRADE FAIRS
• Taiwan – Food Taipei 2013, Taipei – June 26−29, 2013
• South Africa – Africa Big 7 and SAITEX, Johannesburg – June 30 – July 2, 2013
• Indonesia – Interfood, Jakarta – August 28 – 31, 2013
• Myanmar – Build-Con Myanmar, Yangon – September 25 – 27, 2013
For further details, please contact Ida or Sandy of the FMM Secretariat at 03-62867200
14 BIA@FMM | May – Jun 2013
Events in Pictures
Factory visit to Makino, Singapore, April 15, 2013
Seminar on FMM-JETRO Energy Saving Audit, March 13, 2013
Selangor Branch’s visit to Selangor State Investment Centre,
March 14, 2013
Kedah/Perlis Branch’s Seminar on Implementing
Strategic OSH-MP 15 & Overview of Proposed
Review of OSH Legislation, December 6, 2012
16 BIA@FMM | May – Jun 2013
Events in Pictures
Trade & Investment Mission to Balikpapan, Indonesia, April 24 – 26, 2013
FMM Marketing & Branding Conference,
2013, April 18, 2013
World Food Uzbekistan, April 3 – 5, 2013
Briefing on Environmental Declaration Scheme,
March 14, 2013
Hannover Fair in Germany, April 8 – 12, 2013
May – Jun 2013 | BIA@FMM 17
Trade & Policy
Free Customs Advisory Services for
A Senior Customs Officer from the Royal Malaysian Customs Department, Choo Kim Foong is based at FMM to
assist FMM members as a Customs Advisor. The services of the Customs Advisor are available at FMM from 9.00 am
to 1.00 pm every Tuesday. The Customs Advisor will assist members with the following:
• Provide advisory services and guidance on Customs related policies, procedures and requirements;
• Resolve operational related issues encountered at the company level; and
• Assist with applications for licenses and Customs facilities.
Members are encouraged to have individual meetings on a ‘one-on-one’ basis with the Customs Advisor at FMM
to resolve specific issues pertaining to their company. Common issues and enquiries will be published in the
Business in Action@FMM for members’ information. For further enquiries, please contact Arasy Velayutham at
FMM Secretariat at tel: 03-62867356 or e-mail: email@example.com.
Q Where can I locate the latest amendments to the Customs Acts or Regulations?
A The official portal e-Federal gazette will have the latest amendments to the Customs Act or Regulations.
Q What is the difference between the sales tax facilities for sales tax exemptions: CJ5 and CJP2?
A Sales tax exemption CJ5 is a facility given to a licensed manufacturer to import or buy raw materials, components and
packaging material from other licensed manufacturer to be used directly in the manufacturing process without paying
sales tax as provided under section 9, Sales Tax Act 1972.
The Customs Department also allow sales tax
exemption to institutions and individuals who are not
licensed under the Sales Tax Act 1972, to buy taxable
goods without paying sales tax as provided under
the Sales Tax (Exemption) Order 1980 by using the
Some examples where CJ(P)2 can be used are:
• Sales Tax (Exemption) Order 1980, Schedule B,
item 28: Trading company can apply for sales tax
exemption when it buys from a sales tax licensed
manufacturer to sell to a licensed manufacturer under
section 65/65A of the Customs Act 1967 (LMW);
• Sales Tax (Exemption) Order 1980, Schedule B, item
71: Trading company can apply for sales tax
exemption when it buys from a sales tax licensed
manufacturer and exports the said products;
• Sales Tax (Exemption) Order 1980, Schedule B, item 85: These companies can apply for exemption to buy or import
packing and packaging materials from a licensed manufacturer to be used solely for the packing or packaging of
fresh eggs, fresh fruits, aquatic plants, aquarium marine life or cut flowers and then exported;
• Sales Tax (Exemption) Order 1980, Schedule B, item 89: All goods exported to a Free Industrial Zone or moved
to a manufacturing warehouse licensed under sec 65/65A of the Customs Act 1967 for subcontract work and
subsequently re-imported or returned can apply to be exempted from sales tax; and
• Sales Tax (Exemption) Order 1980, Schedule C, item 1 – 13: Manufacturers who manufacture goods that are not
subject to sales tax can apply for sales tax exemption to buy/import raw materials/components and packaging material.
This facility is only given to certain industries as stated in item 1 – 13.
18 BIA@FMM | May – Jun 2013
Updates on Production Costs of
Tight Labour Supply Amid Rising Labour Costs
Immediately after the Chinese New Year, which fell in February this year, manufacturers generally felt the pressure of
labour shortages, in particular those operating in Guangdong. According to the Human Resources and Social-security
Department of Guangdong, there will be around 1.2 million shortage of workers this year after the Chinese New Year.
The city of Dongguan, a major production base in Guangdong, was reportedly having a labour shortage of 150,000
after the Chinese New Year.
According to a survey conducted by Hong Kong Trade Development Council (HKTDC) among Hong Kong manufacturers
in the first quarter of 2013, 50% of respondents indicated that they experienced the problem of labour shortage after the
Chinese New Year. Among those having labour shortage problem 21% considered the situation to be much more serious
than a year ago, while 38% considered the situation to be a bit worse than a year ago.
This development has persistently pushed up the general wage level. In 2012, 25 provinces or regions in China raised
the minimum wage levels by an average of 20.2%. In Guangdong, the minimum wage level will be raised again effective
from May 1, 2013 by an average of 19.1%. The city of Shenzhen continues to have the highest level of minimum wage
Companies need to employ different levels of staff for different jobs. According to official figures, in the first three quarters
of 2012, the average wages of staff and workers in China on average increased by 12%, while in Guangdong province they
increased by 11.5%. Some inland provinces recorded faster growth in the average wages of staff and workers, such as
Hunan at 14.4%, Sichuan at 13% and Jiangxi at 14.8%.
According to HKTDC surveys in the first quarter of 2013, 78% of the responding Hong Kong companies experienced a
rise in labour costs on the mainland compared to the previous quarter. For those respondents who experienced higher
labour costs on the Mainland, 33.3% said the increase was more than 10% and 51.3% said the increase was between
5% to 10%. Compared to the first quarter of 2012, the rates of increase appear to be moderating but the general wage
level is still moving upwards.
(continue on page 21
20 BIA@FMM | May – Jun 2013
China’s Food Prices Surged in February 2013
China’s inflation reached a recent low in October 2012 with the Consumer Price Index (CPI) increasing by 1.7% and
food prices increasing by 1.8%, but has begun to accelerate again since then. The CPI recorded a 3.2% increase in
February 2013 while food prices grew at 6%.
Gasoline and Diesel Prices Adjusted Upward In February 2013
Following the rise in oil prices, China followed suit and also raised the retail price of gasoline and diesel in February 2013.
The retail price of gasoline in Guangdong is now 10.6% higher than the level in July 2012. The increases in gasoline and
diesel prices will push up transportation costs.
Metal Prices Moderated on Entering February 2013
Over the last 12 months, the general price level of metals has been volatile. Metal prices had been edging up since
November 2012, but moderated on entering February 2013. According to the Economist Metal Price Index, in early
March 2013 the general price level of metals declined by about 7% within a month. However, the level in early March was
still 7.5% higher than the recent trough in mid-August 2012. Over the last six months, the prices of aluminium alloy have
been fluctuating within the range of US$1,800 to US$2,000 per tonne while the prices of copper have been moving in the
range of US$7,600 to US$8,400 per tonne.
Oil prices started to edge down after reaching a recent peak around mid-February 2013. However, prices in mid-March
2013 were still about 21% higher compared to the ebb in June 2012. Prices of downstream products, such as plastics,
have also declined since mid-February 2013. The price of polypropylene (PP) in mid-March 2013, for example, had
dropped by about 5% from a month earlier. However, the price level of PP in mid-March 2013 was still about 11% higher
than the level in mid-June 2012.
The price of cotton has started to edge up again since November 2012. The average price of cotton in February 2013
was about 11% higher than the level recorded in November 2012. The average price of pulp has also started to rise since
September 2012. The average price of pulp in February 2013 was up by 7.5% compared to the level in September 2012.
The Rmb Continued to Appreciate
Rmb appreciation has been a major challenge for Hong Kong manufacturers operating in China. Since June 2010,
China has continued with its reform of the exchange rate mechanism of the Rmb by allowing more flexible movement in
its exchange rate. Since the end of July 2012, the exchange rate of the Rmb against the US dollar has generally engaged
in an upward trend. By mid-March 2013, the Rmb had appreciated by about 2.4% compared to the end of July 2012.
China’s Export Prices Stopped Declining
The growth of China’s export price index continued to slow down in 2012 and recorded declines from September to
November 2012, but the price index has moved back to positive growth since December 2012. On the other hand,
import price index of the US with China as origin remained in decline in the first two months of 2013.
Source: Billy Wong, Senior Economist (Greater China) of the HKTDC – Research.
May – Jun 2013 | BIA@FMM 21
Happenings at Branches
The Branch organised the following activities:
• Seminar on Implementing Strategic OSH-MP 15 & Overview of Proposed Review of OSH Legislation on
December 6, 2012. The Seminar was conducted in collaboration with Department of Occupational Safety and Health;
• Seminar on GST: Getting Started on February 27 – 28, 2013.The speakers were Teh Kheng Ean, Senior Assistant
Director of Customs I and Nur Hanisah Dukes bt Abdullah Senior Assistant Director of Customs II of Customs
• SME Corp Seminar on Halal Certification and Workshop on Branding and Packaging on March 15 – 16, 2013 in
conjunction with Kedah Halal Products Exhibition 2013; and
• FMM Branch Institute assisted Schaefer Kalk (M) Sdn Bhd to Develop and Implement Good Manufacturing Practices
(GMP) for Pharmaceutical Excipients.
Teh Kheng Ean, Senior Assistant Director of Customs speaking to the participants of the Seminar on GST held on February 27 – 28, 2013
The Branch organised a training session on Malaysian
Customs Classification: The Right Way to Get the
Correct Tariff Code and Avoid Disputes” on March 18,
2013. The event was facilitated by retired Customs
Officer, Goh Kin Siang.
Sarawak Representative Office
The participants who attended the GS1 Briefing held at
The Branch organised a Workshop titled “Bengkel
Pembungkusan & Penjenamaan” from February 28 –
March 1, 2013. The Workshop attracted a total of
300 participants who were briefed on how to fill in the
GS1 application form, GS1 numbering system and
documents required for application.
22 BIA@FMM | May – Jun 2013
Happenings at Branches
The Branch organised the following programmes:
• A two day seminar on GST for Industries: Getting Started
was held from March 5 – 6, 2013 and facilitated by
Mohammad Sabri Saad, Senior Assistant Director
of Customs Department and Arvina binti Alwi,
Assistant Director of Customs from the GST Task
Force Unit, Putrajaya; and
• Briefing on the Implementation of Guidelines on Minimum
Retirement Age Act 2012 and The New Employment Act
Section 81: Sexual Harassment on March 12, 2013.
The following Industrial Park Management Committee
meetings were held:
• IPMC Batu Gajah on March 13, 2013 which was co-chaired
by Haji Dato’ Hj Jamry bin Hj Sury, Yang Dipertua
(YDP) of Batu Gajah District Council (MDBG) and
Teng Kim Ming, Committee Member of FMM Perak.
Among the issues discussed were thefts at the
industrial estates and FMM’s objection to a cattle owner’s
proposal to use the vacant plot next to Nihon Canpack
for grazing cattles;
• IPMC Ipoh on March 13, 2013 which was co-chaired
by Dato’ Haji Roshidi bin Hashim, The Lord Mayor and
Tony Cheam, Committee Member FMM Perak. Issues
discussed at the meeting include FMM’s proposal of
utilising the road shoulders at industrial estates as a
parking lot for heavy vehicles. Other issues discussed
included flooding at the Ceramic Industrial Park; and
• IPMC Manjung on March 15, 2013 which was chaired by
Azizan bin Haji Abd Muin, Secretary of Manjung Municipal
Council (MPM) with FMM representing the private sector.
Issues affecting the industries like rubbish disposal,
dust and air pollution were discussed at the meeting.
The Committee was informed that lorries parked along
the road near PGEO Group were from out of state and
FMM’s proposal to provide a holding bay was noted.
Participants who attended the two-day Seminar on GST for
Industries: Getting Started at Perak Branch
Arvina binti Alwi (left) and Mohammad Sabri Saad briefing the
participants on GST for Industries: Getting Started
The Branch’s activities include
• Forum on Human Resource
Management Updates facilitated
by Lingasparan Karuppaiah
Chairman of the FMM Human
Resource Management (HRM)
Sub-Committee on January 10,
• ICT, Biotech & Green Tech
Funding Workshop held on
January 30, 2013. The Workshop
was organised in collaboration with
Malaysia Debt Ventures Berhad.
Participants who attended the Forum on Human Resource Management Updates
at Penang Branch
24 BIA@FMM | May – Jun 2013
Happenings at Branches
MITI speakers (from left) Noraini Abrahim, Jaysiwanta Kaur and
Aizul Kamil Ibrahim at the Briefing
Members who attended the Business Opportunities Networking Session
on March 21, 2013
The Branch organised the following activities:
• Briefing on Certificate of Origin on February 26, 2013, in cooperation with the Ministry of International Trade and
Industry to discuss on Preferential & Non-Preferential Certificate of Origin;
• Briefing on Competition Act 2012 on February 28, 2013 conducted by Dhaniah binti Ahmad, Head of Legal Unit from
the Malaysian Competition Commission;
• Courtesy call to Selangor State Investment Centre on March 14, 2013 led by the Branch Chairman Dato’ Soh Thian Lai;
• Seminar on GST for Industries: Getting Started from March 19 – 20, 2013 conducted by Wan Leng Whatt, Deputy
Director of Customs and Annie Thomas, Assistant Director of Customs Department; and
• Business Opportunities Networking Session on March 21, 2013 facilitated by Dr Neoh Vee Heng, Chairman of
FMM Selangor SMI Working Sub-Committee.
The Branch organised the following activities:
• A visit to Danone Dumex (M) Sdn Bhd led by the Branch’s Vice Chairman Radzi Abdul Rashid held on March 19,
• The FMM Human Resource/ Industrial Relations (HI/IR) Forum & Consultancy Session held on Tuesday, March 12, 2013
which was attended by 19 participants.
Group photograph of members who visited Danone Dumex (M) Sdn Bhd
26 BIA@FMM | May – Jun 2013
Happenings at Branches
The Branch organised the following activities:
• Courtesy Call on State Economic Planning Unit
Director on March 14, 2013. Branch Chairman Capt (R)
Hj Abdullah Shariff met Tuan Hj Elias bin Hasran,
State Director and Dr. Badrul Hisham Kassim, Deputy
Director of Economic Planning Unit (UPEN) Johor;
• Meeting of Industrial Park Management Committee
on February 1, 2013 which was chaired by Tuan Hj Elias
bin Hasran, State Director of UPEN Johor. Among the
issues tabled by the Branch included the site of the
demolished building near General Electric Sdn Bhd,
long term solution for the illegal stalls operating in
industrial estates, vacant land located between Kami
Electronics and Malayan Sugar and scheduled cleaning
at Sungai Kangkar and Sungai Tebrau; and
• Meeting with PEMUDAH Johor on January 18, 2013 –
the Branch was represented by its Vice Chairman
Eiap Eng Khoon. Issues discussed at the meeting
included Tenaga Nasional Berhad’s tariff conversion
from commercial to industry, on-line Preferential
Certificates of Origin, port security issues and delays
in issuance of Health Certificate.
Capt (R) Hj Abdullah Shariff (left), Branch Chairman presenting the
token of appreciation to Tuan Hj Elias Hasran, UPEN State Director
New Members (March – April 2013)
The FMM welcomes the following 36 new members into the organisation, 29 Ordinary Members and
7 Affiliate Members. The majority or 39% are from Selangor, 19% from Johor and Penang and 11% from Federal Territory,
while the rest is from other states
• Arab Supplier Fabrication and
Retail Sdn Bhd
• Bee Hua Industrial Gases Sdn Bhd
• Bestgen Food Sdn Bhd
• BI Technologies Corporation Sdn Bhd
• De Luxe Circle (M) Sdn Bhd
• Diptech Industries Sdn Bhd
• Flexitech Sdn Bhd
• Guava Soft
• Hong Yang Hoo Pharma Sdn Bhd
• Hung Thong Food Technology Sdn Bhd
• Kein Hing Industry Sdn Bhd
• KYM Industries (M) Sdn Bhd
• Linkk Busway Systems (M) Sdn Bhd
• Mackenzie Industries Sdn Bhd
• Memscom Technology Sdn Bhd
• NBC Ventures Sdn Bhd
• Platinum Green Chemicals Sdn Bhd
• PMI Pneumatic (M) Sdn Bhd
• PTT Corporation Sdn Bhd
• Rohde & Schwarz Technologies
Malaysia Sdn Bhd
• Saga Software Sdn Bhd
• Solid Print Sdn Bhd
• SPM Syarikat Permainan
(Malaysia) Sdn Bhd
• Steriflow (Malaysia) Sdn Bhd
• Summer Pacific Sdn Bhd
• Sunhei Sdn Bhd
• Trapia Malaysia Sdn Bhd
• Trinitas Global Sdn Bhd
• Trocellen S.E.A. Sdn Bhd
• Vermi Industries Sdn Bhd
• Dagang Net Technologies Sdn Bhd
• European Credit Investment Bank Ltd
• Harvard Hotel (Jerai) Sdn Bhd
• HCK Capital Sdn Bhd
• Malaysia Debt Ventures Berhad
• Senawang Indah Medical Centre Sdn Bhd
28 BIA@FMM | May – Jun 2013