business - fmm · held its 45th annual general meeting (agm) on november 28, 2013, at wisma fmm,...

@FMMBusinessBusinessin in ActionAction

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

Jan/Feb 2014VOL 1/2014

www.fmm.org.my

Handover of FMM Presidency

FMM-MIER Business Conditions Survey Results

Preparing Manufacturers for the Goods & Services Tax

Excellence Award 2013

02 BIA@FMM | Jan – Feb 2014

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

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

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

EditorialADVISORDr Yeoh Oon TeanChief Executive Officer

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

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Contents

FEDERATION OFMALAYSIANMANUFACTURERS

Cover Story

03 45th Annual Dinner

Special Feature

04 Dato’ Saw Choo BoonElected as FMM President

05 45th Annual General Meeting

06 Line-Up of FMM Council2013/2014

09 Winner of the Manufacturerof the Year Award(Large Company)

News Highlights

10 Automating the SMEs forProductivity Enhancementand Workforce Optimisation

12 Seminar on Requirement ofLicenses for Import & Export

INTRADE 2013

13 Preparing Manufacturers forthe Goods & Services Tax

14 Events In Pictures

Updates

16 FMM-MIER BusinessConditions Survey

18 New Electricitiy Tariff EffectiveJanuary 1, 2014

20 Proposed Developments inthe GSP Scheme of Canada

Branch Events

22 Perak

24 Penang

25 Selangor

Sarawak

26 Negeri Sembilan

Eastern

Sabah

28 Kedah/Perlis

Johor

30 Malacca

Jan – Feb 2014 | BIA@FMM 03

Cover Story

YB Senator Dato’ Sri Abdul Wahid Omar highlighted inhis speech that under Tan Sri Yong’s and past presidents’leadership and guidance, FMM has been a strong advocatefor its members and has contributed greatly by providinginputs and feedback on the various government policies andguidelines. He also commended FMM on taking a proactivestep in highlighting and explaining the Goods & Services Taxto its members and the public. He also extended hisappreciation to FMM for inputs provided in the Budget 2014that was tabled by the Prime Minister on October 25, 2013.

During the Dinner, the FMM Excellence Award 2013 wereawarded to Hicom Teck See Manufacturing Sdn Bhd,Barkath Co-Ro Manufacturing Sdn Bhd and Steel ReconIndustries Sdn Bhd, as the winners of The Manufacturerof the Year 2013 Award for Large Companies, TheManufacturer of the Year 2013 Award for SMIs andThe Rising Star of the Year Award 2013 respectively.All three winners received their awards from YB SenatorDato’ Sri Abdul Wahid bin Omar.

45th Annual Dinner

FMM’s 45th Annual Dinner on November 28, 2013 saw the handover of the FMM Presidency from Tan Sri DatukYong Poh Kon to Dato’ Saw Choo Boon, who was elected President at the Council Meeting following its 45th Annual GeneralMeeting held on the same day. Minister in the Prime Minister’s Department, YB Senator Dato’ Sri Abdul Wahid bin Omar,who was the Guest of Honour at the Dinner witnessed the handover ceremony. The Dinner was attended by about1,200 members, their associates and business leaders.

From left: YB Senator Dato’ Sri Abdul Wahid Bin Omar, Tan SriDatuk Yong Poh Kon, Tan Sri Mohd Sidek Haji Hassan, YB SenatorDatuk Paul Low and Dato’ Saw Choo Boon having a light moment

before the Annual Dinner

Group photograph of the winners of the FMM Excellence Awards 2013

(continue on page 4)


Special Feature

Dato’ Saw holds a Bachelor of Science (Chemistry) Honours from the Universityof Malaya. He joined Shell Malaysia in 1970 and served in various capacitiesin Manufacturing, Supply, Trading and Planning in Malaysia, Singapore andNetherlands. In 1996, Dato’ Saw was appointed Managing Director of Shell MDS(Malaysia) Sdn Bhd. In 1998, he assumed the position of Managing Director for OilProducts (Downstream) Shell Malaysia. In 1999, with the globalisation of the ShellOil Products business, he was appointed the Vice-President of the Commercial businessin the Asia-Pacific region and in 2005 he managed Shell’s Global Marine Oil business.He was appointed the Chairman of Shell Malaysia from 2006 until 2009, and SeniorAdviser until 30 June 2010, when he retired from Shell after 40 years of continuous service.

Currently, Dato Saw is a Non-Executive Independent Board Member of Shell RefiningCompany (FOM) Bhd, RHB Capital Bhd, RHB Investment Bank Bhd, Digi Com Bhd,and Guinness Anchor Bhd. where he is also the Chairman. He is also the co-Chair ofthe Government’s Special Task Force to Facilitate Business (PEMUDAH).

Dato’ Saw Choo Boon Elected asFMM PresidentDato’ Saw Choo Boon was elected as FMM President at the FMM Council meeting on November 28, 2013, taking overthe helm from Tan Sri Datuk Yong Poh Kon. A handover ceremony was held at FMM’s Annual Dinner, witnessed by theMinister in the Prime Minister’s Department, Senator Dato’ Sri Abdul Wahid bin Omar.

The FMM Excellence Award was introducedin 2010 to recognise businesses for theiroutstanding achievement and excellence inmanufacturing, process improvements andcorporate growth.

HICOM Teck See Manufacturing MalaysiaSdn Bhd is a leading manufacturer ofprecision plastic injection moulding for theautomotive industry. Barkath Co-RoManufacturing Sdn Bhd, a joint venturebetween Kumpulan Barkath and Co-Ro Foodof Denmark is the producer of SUNQUICK –Malaysia’s top brand in concentrated fruitjuice drink. Steel Recon IndustriesSdn Bhd is a 100% Malaysian-ownedmanufacturer of fire fighting equipment.

Apart from YB Senator Dato’ Sri AbdulWahid bin Omar, other dignitaries whoattended the Dinner included Minister in thePrime Minister’s Department YB SenatorDatuk Paul Low and his spouse Datin HungLai and Chairman of Petronas and formerChief Secretary Tan Sri Mohd Sidek binHj Hassan accompanied by his spousePuan Sri Wan Norlina Wan Hussin.

(continued from page 3)

Tan Sri Datuk Yong Poh Kon takes office as the Immediate Past President of FMM. Tan Sri Yong who is theManaging Director of Royal Selangor International Sdn Bhd joined the FMM Council in 1972. He has held the positionof FMM President from 2005 to 2008 and was re-elected FMM President in 2011.

From left: FMM President Dato’ Saw Choo Boon and Senator Dato’ Sri Abdul Wahid BinOmar at the FMM’s 45th Annual Dinner


Special Feature

FMM held its 45th Annual General Meeting (AGM) on November 28, 2013, at Wisma FMM, Bandar Sri Damansara,Kuala Lumpur. In his address, Tan Sri Datuk Yong Poh Kon, then FMM President, highlighted that the financial year2012/2013 saw a continuation of the weak external economic environment.

45th Annual General Meeting

During the year under review, FMM objected strongly to theimplementation of the mandatory minimum retirement age onJuly 1 2013, increased EPF contributions beyond 55 yearsand rising port charges. FMM also reiterated concerns aboutthe rising costs of doing business given sustained high worldcrude oil prices and a lower domestic oil subsidy.

On the review of prices of natural gas, FMM called for afair pricing to domestic customers. FMM also successfullynegotiated for more flexible and less punitive terms in GasMalaysia Berhad’s new gas supply agreement. In thepower sector, following repeated calls by FMM for greaterefficiency and lower tariffs, the government and EnergyCommission implemented competitive bidding amongstpotential power producers.

FMM has actively advocated for improvements in theeducation system, particularly with respect to Englishproficiency and availability of technical skills. FMM waspleased to note that English would be a compulsory passsubject and FMM was also working with the Governmentto enable FMM members to provide practical trainingto students. Tan Sri Datuk Yong highlighted that giventhe importance of market access especially with theimpending removal of the Generalised Scheme ofPreference, FMM supported the conclusion of FreeTrade Agreements, in particular the Trans-Pacific

Partnership Agreement (TPPA) and Malaysia-EuropeanUnion Free Trade Agreement. The TPPA alone wasexpected to open up another 10% of duty free tradewith new non-FTA markets.

In his speech, Tan Sri Datuk Yong also informed thathe had stepped down as Co-chair of PEMUDAH inSeptember 2013 after six years with the Taskforce. Dato’ Saw Choo Boon, then FMM Vice-President hadsince been appointed Co-chair of PEMUDAH to continuethe work of the Taskforce.

The report of the Council and Statement of Accounts forfinancial year ended June 30, 2013 were unanimouslyapproved and adopted by the members present. At themeeting Tan Sri Dato’ Soong Siew Hoong was re-electedto the Council under Section 129(6) of the Companies Act1965. Eleven Council members were elected/re-electedinto the FMM Council.

At the Council meeting following the AGM, Dato’ SawChoo Boon was elected as FMM President for 2013/2014while Tan Sri Datuk Yong Poh Kon assumes the positionof Immediate Past President. YM Raja Dato’ Abd Aziz binRaja Muda Musa, Dato’ OK Lee, Davies Danavaindranand Tan Sri Dato’ Lim Wee Chai were elected asVice-Presidents for 2013/2014.

Group photograph of the FMM Council members


COUNCIL MEMBERS

DATO’ SAW CHOO BOON

Shell Refining Co (FOM) Bhd

Mohd Radwan AlamiAlami Vegetable Oil Products

Sdn Bhd

Dato’ (Dr) Ir Andy SeoKian Haw

AlphaprimaEngineering Sdn Bhd

Yeow Teck ChaiAmsteel Mills Sdn Bhd

Tan Sri Cheng Yong KimAntara Steel Mills Sdn Bhd

Amirul Feisal Wan ZahirChemical Company of

Malaysia Berhad

Abdul Samad IbrahimKulitkraf Sdn Bhd

Datuk Leow Chong HowaLB Aluminium Berhad

Wong Siew YapLinde Malaysia Sdn Bhd

Ir A K WooMaster Jaya

Engineering Sdn Bhd

Jay RahmanMesra Alam Borneo Sdn Bhd

Datuk Dr Wan Mohamed binWan EmbongWSA Capital

Corporation Sdn Bhd

Special Feature

PRESIDENT

Chan Cheu LeongWah Seong

Corporation Berhad

Peter Lim Yoke CheongUnited Vehicles

Industries Sdn Bhd

Tan Sri DatukAsmat Kamaludin

UMW Advantech Sdn Bhd

Line-Up of FMM Council for 2013/2014

Haji Othman Abdul RaniCMS Cement Sdn Bhd

Dato’ Tan Boon PunGreatpac Sdn Bhd

Naoto YoshidaHitachi Electronics Products

(M) Sdn Bhd

Dato’ Nathan K SuppiahIsus Dentomedic Industries

Sdn Bhd

Tan Sri Dato’ SoongSiew Hoong

Kejuruteraan WangYuen Sdn Bhd

YM Raja Dato’ Abd Aziz binRaja Muda Musa

Johan Ceramics Berhad

Tan Sri Datuk Yong Poh KonRoyal Selangor International

Sdn Bhd

Dato’ O K LeePenfibre Sdn Bhd

Davies DanavaindranRadosh Engineering &

Industrial Sdn Bhd

Tan Sri Dato’SriLim Wee Chai

Top Glove Sdn Bhd

Alois HofbauerNestle Manufacturing(Malaysia) Sdn Bhd

Dr Neoh Vee HengNETC Asia

Resources Sdn Bhd

Noraini bt SoltanSipro (Malaysia) Sdn Bhd

Dato’ Haji MizanurRahman Ghani

Tioxide (Malaysia) Sdn Bhd

John Lee Boon HawUmmi Medical & Life Sciences

Sdn Bhd

VICE-PRESIDENTSIMMEDIATEPAST PRESIDENT

Special Feature



Datuk Jeffery OngBranch Committee Chairman

Malacca BranchOriental Food

Industries Sdn Bhd

Capt (R) Haji AbdullahShariff

Branch Committee Chairman Johor Branch

Lam Soon Edible OilsSdn Bhd

REPRESENTATIVES FROM BRANCHES

Dr Haminnuddin Abd HamidBranch Committee Chairman

Kedah/Perlis BranchIdeal Healthcare Sdn Bhd

Khoo Cheok SinBranch Committee Chairman

Penang BranchPerusahaan Sindi Sdn Bhd

Dato’ Gan Tack KongBranch Committee Chairman

Perak BranchNgan Yin Groundnut Factory

Sdn Bhd

Dato’ Soh Thian LaiBranch Committee Chairman

Selangor BranchStar Shine Industries Sdn Bhd

Steven ArokiBranch Committee Chairman

Negeri Sembilan BranchSmane (M) Sdn Bhd

Dato’ Haji Mas’ut SamahBranch Committee Chairman

Eastern BranchPascorp Paper

Industries Berhad

EX-OFFICIOMEMBER

COMPANYSECRETARY

Dr Yeoh Oon TeanChief Executive Officer

Han Mong YingManager

Special Feature


Winner of the Manufacturer ofthe Year Award (Large Company)

The Manufacturer of the Year 2013 Award for LargeCompanies was awarded to Hicom Teck See

Manufacturing Malaysia Sdn Bhd. The Company,incorporated in 1991 by DRB Hicom Berhad and Teck SeePlastics Sdn Bhd, is a leading manufacturer of precisionplastic injection mouldings for the automotive industry.

Hicom Teck See expanded from a single to multiplecustomer base through close engagement and technologycollaboration with its global tier one customers to introducenew products and processes for green cars. It is the onlyHICOM subsidiary with an overseas factory.

Shuhaida binti Nun, Chief Operating Officer of Hicom Teck SeeManufacturing Malaysia Sdn Bhd (right) receiving the trophy from YB Senator

Dato’ Sri Abdul Wahid bin Omar while Dato’ Saw Choo Boon looks on

The Company is equipped with the most advancedequipment and machines to give complete supportto its customers, including large capital intensiveinvestments in high-end testing equipment andresearch & development.

The Award was presented to its Chief OperatingOfficer, Shuhaida binti Nun by Minister in thePrime Minister’s Department, Senator Dato’ Sri AbdulWahid bin Omar during FMM’s Annual Dinner onNovember 28, 2013.


News HighlightsNews Highlights

Automating the SMEs for ProductivityEnhancement and Workforce Optimisation

Datuk Phang Ah Tong (4th from left) with FMM and MATA representatives

The robot density in Malaysia of 22 units per 10,000 employees is still far below the global average of 55 units per10,000 employees. South Korea which has the highest robot density in the world recorded its use of robotics at

347 units per 10,000 employees in year 2012. Although SMEs may have been cautious in adopting robotic aids intheir businesses due to the initial heavy investment, factory automation is necessary for SMEs to stay competitiveand to mitigate the increased costs of doing business.

officiated by Datuk Phang Ah Tong, Deputy CEO II ofMalaysian Investment Development Authority (MIDA). In his keynote address Datuk Phang highlighted thatthe recently introduced Domestic Investment StrategicFund of RM1 billion managed by MIDA is intended toaccelerate the shift of Malaysian-owned companies intargeted industries to high value-added, high technology,knowledge-intensive and innovation-based industries.This is to facilitate companies to compete and sustainthemselves in the long run, and contribute towardshigher value-added, and high employment generation.

To further spearhead the adoption of factory automation,the Government also launched the Soft Loan Schemefor Automation and Modernisation in 2007 to encourageindustries to modernise and automate their manufacturingprocesses. The Fund for this Scheme is managed by theMalaysian Industrial Development Finance.

Datuk Phang also added that industrial automation helpsindustries to improve quality, decrease cycle time andenables companies to maintain the competitive edge andeven move ahead of their competitors. Though the initialinvestment on the costly robotic machineries can besubstantial, it assists a company to save on the monthlywages of production workers. In the long run, largesavings can be expected by the company.

FMM with the support of Malaysia Automation TechnologyAssociation (MATA) organised a two-day FMM FactoryAutomation Conference 2013 with the theme “Automatingthe SMEs for Productivity Enhancement and WorkforceOptimisation” to address the concerns of SMEs inimplementing automation in their companies. TheConference which was held on October 29 & 30, 2013,attracted over 104 factory/production managers andengineers. A total of 23 speakers from 20 organisationsshared the fundamentals of factory automation with theparticipants during the Conference. The Conference was

Some delegates who attended the ConferenceDatuk Phang Ah Tong, Deputy CEO II of MIDA officiated the Conference


Seminar on Requirement of Licenses forImport & Export

The Customs Prohibition of Export and Import Order 2012 which was gazetted on December 31, 2012 and madeeffective on September 1, 2013 requires more products to be licensed by specific agencies such as Malaysian

Timber Board and Malaysia Quarantine and Inspection Services.

As the imposition of the regulation affects SMEs whichconstitutes 68% of FMM members, FMM on November13, 2013 organised a Seminar on Requirement ofLicenses for Import & Export. The main objective of theSeminar was to provide an avenue for all exporters andimporters to understand why licenses are now requiredby the agencies. Participants were also updated on theapplication process, fee structure, and quarantineprocedures required by the specific government agencies.

The speakers included the representatives from theMalaysian Timber Board, Department of VeterinaryServices, Ministry of Natural Resources and Environment,Malaysia Quarantine and Inspection Services andPesticide Control Division from the Ministry of Agriculture& Agro-Based Industry.

Main concerns raised by the participants at the Seminarincluding the additional cost incurred in applying for thelicense from the agencies which increased the costs ofdoing business and checking of containers at entrypoints which resulted in some companies having to paydetention charges.

John Lee FMM Council Member (centre) chairing the Q&A sessionat the Seminar

INTRADE 2013

FMM was one of the442 exhibitors at INTRADE2013, the 7th AnnualInternational Trade and ExportExhibition organised by TheMalaysia External TradeDevelopment Corporation.The event held fromNovember 26 – 28, 2013attracted exhibitors from18 countries, 825 buyersfrom 60 countries andapproximately 9,000 tradevisitors. The FMM boothattracted over 100 visitors.

FMM staff attending to a visitor at the FMM booth at INTRADE 2013

News HighlightsNews Highlights


Preparing Manufacturers for the Goods &Services Tax

The Federation of Malaysian Manufacturers with the support of the Ministry of Finance and the Royal MalaysianCustoms successfully organised seven seminars on Goods & Services Tax (GST) for Industries: Getting Started

nationwide in 2013 The seminars attracted a total of 490 participants.

The seminars concluded with a final session in KlangValley on November 20 & 21, 2013. Five Senior CustomsOfficers from the GST Unit of the Royal MalaysianCustoms Department provided a clear understanding onthe GST model and operational aspects of the GST formanufacturers. Over 130 participants attended thistwo-day seminar.

Following the 2014 Budget announcement on theimplementation of the Goods and Services Tax effectiveApril 1, 2015, FMM recognises the need to hold

Nationwide Seminars on GST for Industries:Getting Started in 2014. The Seminars will assistmanufacturers to understand the GST system inMalaysia, its impact on business operations andthe preparations required to comply with the GST requirements.

For more information on the nationwide GST Seminar,please contact Maygelah Siva of the FMM Secretariat atTel: 03-62867320, Fax: 03-62741266/7288 or E-mail:[email protected].

Goods and Services TaxEffective April 1, 2015, the Malaysian Government will implement the Goods and Services Tax at a rate of 6%replacing the current sales and service tax regime.

Scope of GST• Charged on goods and services at all levels starting from production, manufacture, wholesale and retail supplied

within the country or imported into the country;

• Charges on goods and services supplied within the country or imported in the country;

• Tax paid on inputs (capital assets and raw material) is allowed as a credit (Input Tax Credit) to offset against theoutput (supplies made) tax;

• Businesses with annual sales of RM500, 000 and above are required to be registered under the GST legislation.

• Businesses below the GST threshold are not required to register but may register on a voluntary basis.

Standard-rated

Zero-rated

Exempt

Subject to a 6% tax and eligible to claimGST paid on business inputs

No GST on output and eligible to claimGST refunds on input taxes paid

No GST on output but not eligible to claimGST refunds on input taxes paid

All goods and services not otherwisestated as zero-rated and exempt supplies

Basic food items such as rice, sugar,salt, floor, cooking oil and etc.

Piped water supply and first 200 units ofelectricity per month

All supplies to a place outside Malaysia

Financial, health, transport andeducation services

The list of zero-rated and exempt supplies is available on FMM’s website at www.fmm.org.my/customs_advisory@_customs.advisory.aspx

Types of supply Description Example

News Highlights


Events in Pictures

Trade Delegation from Slovakia on October 22, 2013

Penang Branch’s FMM Rock N Roll Futsal Tournament 2013 on September 29, 2013

A dialogue cum briefing session with Immigration DepartmentNegeri Sembilan on September 10, 2013

Winners of the FMM Excellence Award 2013 at the FMM’s 45th Annual Dinner on November 28, 2013

Delegation from the Association of Korea Exhibition Industry on December 11, 2013

FMM Factory Automation Conference 2013 on October 29 & 30, 2013

Courtesy Visit by Selangor Branch on YB Ean Yong Hian Wah,State Executive Councillor for Investment, Industry and Trade on

September 27, 2013

Events in Pictures

FMM’s 45th Annual Dinner onNovember 28, 2013

Seminar on EPF (Ammendment of 3rd Schedule)Order 2013 organised by Perak Branch on September 18, 2013



Updates


• In line with the implementation of the subsidyrationalisation programme, the Ministry of Energy, GreenTechnology & Water released on December 2, 2013details of the new tariff for electricity which comes intoeffect on January 1, 2014. The average tariff increase forSabah and FT Labuan is 5 sen/kWh or 16.9% from29.52 sen/kWh to 34.52 sen/kWh.

• The average industrial tariff has increased to 36.15 sen/kWh, an adjustment of 5.21 sen/kWh (16.84%) from thecurrent average of 30.94 sen/kWh.

• The overall average tariff has increased by 4.99 sen/kWhbased on the four following components:– The adjustment of domestic gas price from RM13.70/

mmBtu to RM15.20/mmBtu, resulting in the 1.52% or0.51 sen/kWh increase in electricity tariff

– The price of imported Liquefied Natural Gas fixed atRM41.68/mmBtu, impacting electricity tariff by 10.17%or 3.41 sen/kWh

– The adjustment of coal price from USD85 per metrictonne to USD87.5 per metric tonne, impacting thetariff by 0.51% or 0.17 sen/kWh

– Increase in TNB’s base tariff by 2.69% or 0.90 sen/kWh,from the current average tariff. This base tariff will beregulated through a mechanism called IncentiveBased Regulation (IBR) to be administered by theEnergy Commission.

• The Special Industrial Tariff (SIT) will experience a tariffrevision of 18.85%, in line with the gradual reductionin subsidies.

• The contribution to the renewable energy (RE)fund has been revised from 1% to 1.6% fromJanuary 1, 2014. Contribution to the RE fundhas also been extended to industries in Sabahand FT Labuan.

FMM expressed its disappointment with the hugeincrease for the industrial category and the shortnotification period in its press statement issued onDecember 2, 2013. The double-digit hike would imposefurther difficulties on the industry in the wake of theimplementation of minimum wage and retirement agepolicies, the impending increase in gas pricing, alongwith various other proposals in the pipeline, such asunemployment insurance, environmental cess, etc.

FMM called on the Government to lower the quantumof increase and to extend the effective date to giveindustry sufficient time to mitigate the higher cost ofdoing business.

FMM will continue to engage the relevant authoritiesin addressing the impact of these increases to themanufacturing sector. FMM welcomes members’feedback on the impact of the electricity tariff increasein terms of increase in your company’s energy bills(in RM and percentage).

Enquiries: Ms Wan Haslina or Ms Hema, BusinessEnvironment Division, FMM HQ at Tel: 03-62867200,Fax: 03-62741266/7288 or E-mail: [email protected].

New Electricitiy Tariff Effective January 1, 2014

Tariff Category Unit Jan 1, 2014 June 1, 2011

Tariff D – Low Voltage Industrial TariffFor all kWh (up to 200 kWh a month)For all kWh (above 200 kWh a month)The minimum monthly charge is RM7.20For the first 200 kWh (1 – 200 kWh) per monthFor the next kWh (201 kWh onwards) per monthThe minimum charge is RM7.20

Tariff Ds – Special Industrial Tariff (for consumers who qualify only)For all kWhThe minimum monthly charge is RM7.20

Tariff E1 – Medium Voltage General Industrial Tariff For each kilowatt of maximum demand per monthFor all kWhThe minimum monthly charge is RM600.00

Tariff E1s – Special Industrial Tariff (for consumers who qualify only)For each kilowatt of maximum demand per monthFor all kWhThe minimum monthly charge is RM600.00

sen/kWh 34.5sen/kWh 37.7

sen/kWh 38.0sen/kWh 44.1

sen/kWh 42.7 35.9

RM/kW 29.60 25.30sen/kWh 33.7 28.8

RM/kW 23.70 19.90sen/kWh 33.6 28.3

Updates

Table 1: Electricity Tariff Effective January 1, 2014

(continue on page 19)


Tariff Category Unit Jan 1, 2014 June 1, 2011

Tariff E2 – Medium Voltage Peak/Off-Peak Industrial TariffFor each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak periodThe minimum monthly charge is RM600.00

Tariff E2s – Special Industrial Tariff (for consumers who qualify only)For each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak periodThe minimum monthly charge is RM600.00

Tariff E3 – High Voltage Peak/Off-Peak Industrial Tariff For each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak periodThe minimum monthly charge is RM600.00

Tariff E3s – Special Industrial Tariff (for consumers who qualify only)For each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak periodThe minimum monthly charge is RM600.00

RM/kW 37.00 31.70sen/kWh 35.5 30.4sen/kWh 21.9 18.7




Tariff Category Unit

Rates

Top Up Standby

Tariff E1 – Medium Voltage General Industrial Tariff Maximum demand charge per monthFor all kWh

Tariff E2 – Medium Voltage Peak/Off-Peak Industrial TariffFor each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak period

Tariff E3 – High Voltage Peak/Off-Peak Industrial Tariff For each kilowatt of maximum demand per month during the peak periodFor all kWh during the peak periodFor all kWh during the off-peak period

RM/kW 29.60 14.00sen/kWh 33.7

RM/kW 37.00 14.00sen/kWh 35.5sen/kWh 21.9

RM/kW 35.50 12.00sen/kWh 33.7sen/kWh 20.2

Updates

Table 1: Electricity Tariff Effective January 1, 2014 ((continued from page 18)

Top-Up and Standby Tariff for Co-generators

Co-generator means a generator who uses a single primary energy source to generate sequentially two different formsof useful energy for its own use at an efficiency rate of more than 70%.

Top-up supply: Additional supply required by a Co-generator who does not produce sufficient electricity for its own use.

Standby supply: Supply that TNB provides to a Co-generator in the event that the Co-generator does not generateelectricity due to plant failure/planned shutdown for maintenance. The Co-generator has a choice of firm or non-firmsupply. Non-firm standby means TNB does not guarantee that supply can be given when the Co-generator fails or is shutdown for maintenance.


• Substantial reductions in the number of eligiblecountries: The most important proposed change tothe GPT regime involves a substantial reduction inthe number of eligible beneficiary countries, similarto the changes introduced in the EU GSP scheme.Canada has proposed withdrawing GPT eligibilityfrom any country that has been classified for thepast two consecutive years as a high income orupper-middle-income country, according to the WorldBank classification, or any country that has a share ofworld exports that is equal to or greater than 1% fortwo consecutive years, according to the WTO tradestatistics. This change would eliminate 72 beneficiarycountries and reduce the total number of beneficiarycountries from 175 to 103. Notably, Brazil, theRussian Federation, India and China would all ceaseto be GPT beneficiaries. Imports from countries thathave separate preferential trade arrangements, suchas countries that have signed FTAs with Canada,would continue to receive preferential tariff ratesunder those agreements.

Proposed Developments in the GPT Schemeof CanadaCanada has provided preferential tariff rates for developing countries under its General Preferential Tariff (GPT) schemesince 1974. The current GPT regime that Malaysia enjoys is set to expire on June 30, 2014. In connection with renewalof the programme, substantial reform has been proposed to the GPT regime and is subject to public consultation.The proposed changes to the Canadian GPT regime may be summarised as follows:

Market Alert

• Possible changes to product coverage: the Government of Canada has suggested that changes to product coveragemay be considered, and has solicited public comment on the matter. Currently, the GPT regime provides duty-free orreduced tariff rates for more than 80% of Canadian tariff items.

• Potential formal incorporation of a safeguard mechanism: the Canadian Government has also suggested that it mightformally incorporate into law the GPT safeguard mechanism, which allows Canada to withdraw GPT benefits upona finding by the Canadian International Trade Tribunal that domestic producers are suffering serious injury, or threatthereof, from competition with GPT importrates.

• Potential changes to expiry date and frequency of reviews: at present, the GPT regime is reviewed every ten years.The Government is seeking public comment as to whether or not country coverage determinations, based on theabove criteria, should be reviewed annually and whether the GPT regime should be extended indefinitely.

Source: UNCTAD GSP Newsletter, April 2013

Trade Mission Date Contact Person

• Russia (Moscow, Pskov & St Petersburg) April 13 – 22, 2014 Ng Lee Lee

• Mauritius, Zambia & South Africa March 15 – 22, 2014 Koh Wee Leng

• Philippines (Cebu) May 2014 Koh Wee Leng

Upcoming Trade Missions

For more information, please call FMM Secretariat at 03-6286 7200


Perak

The Branch organised the following activities:

• A joint seminar with American Insurance Group on Trade Credit & Product Liability on October 30, 2013. Khun PrasitHongsaranagone, Head of Thailand, Malaysia & Vietnam and Louisa Lu, Vice President, Products Liability Casualty(Asia Pacific) briefed the participants on litigation aspects for exports and liability claims. The Seminar attracted atotal of 58 participants from 36 companies.

Branch Events

Ir Harapajan Singh briefing the participants on Energy Regulationsand Energy Efficiency Procedures

• Annual General Meeting on October 17, 2013 wherethe following Office Bearers were elected for the period2013/2014:

Branch Committee Chairman

Dato’ Gan Tack Kong, Ngan Yin Groundnut FactorySdn Berhad

Branch Committee Vice Chairmen

Francis Chok Yin Fatt, Yee Lee Edible Oils Sdn BhdTan Seow Heng, Sidney Industries Sdn BhdEdmund Wong Khin Kong, Asia Printed CircuitSdn BhdChua Kay Lin, Vinico Sdn Bhd

• Halal 2013: Updates on Malaysian Halal Certification on October 10, 2013. Ustaz Muhammad Naim bin Mohd Aziz,Senior Assistant Director of JAKIM introduced the participants to the Guidelines for the Implementation of the HalalAssurance System and the latest ammendments of the Halal certification. The Seminar was attended by 41 participantsfrom 20 companies.

• Seminar on EPF (Ammendment of 3rd Schedule) Order 2013, E-Contribution & Types of Withdrawals on September 18,2013 which attracted 73 participants from 45 companies.

• A Perak Customs Programme on Everything You Need to Know about Licensed Manufacturing Warehouse – ItsFacilities, Compliances & Latest Updates on September 4, 2013. The programme was conducted by Jeyasingam R,Senior Assistant Director of Customs (Rtd.). A total of 16 participants from nine companies attended the Seminar.

Trade Fairs Location Date Contact person

• Rubber Technology Expo 2014 Bangkok, Thailand Mar 12 – 15, 2014 Danielle Chin• Asia Pacific Maritime 2014 Singapore Mar 19 – 21, 2014 Clarissa Chin• World Food Uzbekistan 2014 Uzbekistan Apr 2 – 4, 2014 Clarissa Chin• Expomed Turkey 2014 Turkey Apr 3 – 6, 2014 Danielle Chin• Hannover Fair 2014 Germany Apr 4 – 7, 2014 Clarissa Chin• ExpoElectronica 2014 Russia Apr 15 – 17, 2014 Koh Wee Leng• Made In Asia 2014 Abu Dhabi Apr 21 – 23, 2014 Danielle Chin• Kazakhstan International Healthcare Expo 2014 Kazakhstan May 14 – 16, 2014 Danielle Chin• SUBCON Thailand 2014 Bangkok, Thailand May 15 – 17, 2014 Clarissa Chin/

Danielle Chin• SIA 2014 Ukraine May 28 – Clarissa Chin

Jun 1, 2014• Beauty Eurasia 2014 Turkey Jun 12 – 14, 2014 Clarissa Chin• Manufacturing Expo Bangkok 2014 Thailand Jun 19 – 22, 2014 Danielle Chin

Upcoming Trade Fairs

For more information, please call FMM Secretariat at 03-6286 7200


Branch Events

Penang


• Annual General Meeting on October 25, 2013 wherethe following Office Bearers were elected for the period2013/2014:


Khoo Cheok Sin, Perusahaan Sindi Sdn Bhd


Dato’ Dr Ooi Eng Hock, Menara Kerjaya FastenersSdn BhdHun Keng Kuan, Penfabric Sdn BhdSee Chee Tat, Malayan Metal Works Sdn BhdJimmy Ong, Emico Metalizing Sdn Bhd

• FMM Rock N Roll Futsal Tournament 2013 onSeptember 29, 2013. A total of 423 players (47 teams),from the manufacturing sector in Penang took part inthis event. The following are the winners:– Champion – First Solar (M) Sdn Bhd – 1st Runner-Up – F-One Freight Forwarding Sdn Bhd – 2nd Runner-Up – Lim Chuan Huck & Sons Sdn Bhd – 3rd Runner-Up – Fuji Electric Semiconductor (M)

Sdn Bhd YAB Tuan Lim Guan Eng, Chief Minister of Penang delivering the

keynote address at the Annual Dinner

From left: Lee Teong Li, Khoo Cheok Sin, Dr Ooi Eng Hock and Jimmy Ong

• 44th Annual Dinner on September 13, 2013. A total of 350 guests comprising member companies, governmentdepartments and trade associations attended this yearly event. The Guest of Honour for the evening was the ChiefMinister of Penang YAB Tuan Lim Guan Eng.

The following received the State Award 2013 at the Dinner:Jimmy Ong, Branch Committee Vice-Chairman – Pingat Kelakuan Terpuji (PKT)Dr Ooi Eng Hock, Branch Committee Vice-Chairman – Darjah Setia Pangkuan Negeri (DSPN) which carries thetitle Dato’Lee Teong Li, Branch Committee Chairman, Penang Island Committee – Darjah Johan Negeri (DJN)

Selangor

The Branch’s activities include the following:

• Briefing on e-Contributions, an on-line facilitythat allows employers to remit EPF contributionsthrough i-Akaun organised with EPF on November 20,2013. It was organised together with EPF PetalingJaya Branch.

• Business Opportunities Networking Sessionon November 19, 2013 attended by 28 participantsfrom 12 companies attended the session.

• Courtesy call on Selangor Senior State ExecutiveCouncillor for Local Governments, Research &Development, YB Dato’ Teng Chang Khim onNovember 1, 2013.

• Workshop on Crime Prevention for Industries onOctober 30 – 31 2013. Over 27 participants attendedthe Workshop which was jointly organised by theBranch, Ibu Pejabat Polis Kontijen Negeri Selangorand Selangor State Investment Centre.

• Briefing on SME Financing & Shariah ComplianceSchemes on October 24, 2013. The Briefing wasconducted by speakers from SME Corporation,Association of Islamic Banking Institutions Malaysiaand Bank Negara Malaysia.

• Briefing on Preferential Certificate of Origin by Ministryof International Trade and Industry on October 22, 2013.The Briefing was attended by 61 participants from36 companies.

• An appreciation dinner for Dr S Ramanaidu on October17, 2013 in recognition of his contribution during histenure as Branch Committee member (1998 – 2013).

• 27th Annual General Meeting on October 17, 2013where the following Office Bearers were elected forthe period 2013/2014:


Dato’ Soh Thian Lai, Star Shine Industries Sdn Bhd

Immediate Past Chairman

Tan Sri Dato’ Prof Dr James Alfred, Shiroshi Resource(M) Sdn Bhd


Dato‘ Nathan K Suppiah, Isus Dentomedic IndustriesSdn BhdDr Neoh Vee Heng, NETC Asia Resources Sdn BhdJacob Lee Chor Kok, Asli Mechanical Sdn BhdAbdul Samad Ibrahim, Kulitkraf Sdn Berhad

• Courtesy call on YB Ean Yong Hian Wah, SelangorState Executive Councillor for Investment, Industryand Trade on September 27, 2013.

• Dato’ Nathan K Suppiah, Branch Vice-Chairmanpresented a paper entitled Making Selangor aPreferred State for Investors especially SMEs for theSelangor State Government Budget Dialogue 2014on September 23, 2013.

• Industrial Safety and Health Forum on September 19,2013 chaired by Wong Soo Kan, Chairman of theBranch Industrial Safety, Health & Environment WorkingSub-Committee.

Branch Events

Dr Neoh Vee Heng, Vice-Chairman of FMM Selangor (left) withCzarif Chai Abdullah of SME Corporation Malaysia during theBriefing on SME Financing & Shariah Compliance Schemes


Sarawak

The following activities were organised:

• The Representative Office presented a paper on What is GS1 atthe Packaging and Branding Seminar organised by SME Corpon November 7, 2013.

• Seminar on Contract of Employment & Employees’ Register onOctober 30, 2013 facilitated by Tan Gake Hua, former Directorof Labour Department of Sarawak.

• Participated in the business matching event organised byMinistry of Domestic Trade, Cooperatives and Consumerismand Giant Sarawak on October 10, 2013.

Participants of the Packaging and Branding Seminarorganised by SME Corp


Branch Events

Negeri Sembilan

Eastern


• Luncheon with the Menteri Besar of Negeri SembilanYAB Dato’ Seri Utama Hj. Mohamad bin Hasan onNovember 13, 2013.

• 14th Annual General Meeting on October 31, 2013 andthe following Office Bearers were elected for the period2013/2014:


Steven Aroki, Smane (M) Sdn Bhd


Penny Wong, Seremban Engineering BerhadBaskaran Nair, Cordage Industrial Rope Sdn BhdDatuk Mohamed Arsa, PureCicle Sdn BhdRadzi Abdul Rashid, Akzo Nobel Paints (M) Sdn Bhd

• A dialogue cum briefing session with ImmigrationDepartment Negeri Sembilan on September 10, 2013which was attended by 50 participants.

Steven Aroki (left) presenting a token of appreciation to YAB Dato’Seri Utama Hj Mohamad bin Hasan after the luncheon with Negeri

Sembilan Menteri Besar

Kaveta Chelliah, Assistant National Project Manager, (2nd left) and Ir Dr KS Kannan (right), National Project Manager from UNIDO inspectingfacility equipment during the factory visit to Desa Hatchery Sdn Bhd

Sabah

The Representative Office organised a NetworkingSession Cum Business Talkon September 14, 2013.

The Networking Session which was titled BusinessOpportunities Networking Session for Urban Farming,World Ventures and Technical & Vocational SkillsCertification attracted around 40 participants fromvarious organisations.

The Branch held its Annual General Meeting on October23, 2013 and the following Office Bearers were electedfor the period 2013/2014.


Dato’ Haji Mas’ut bin A. Samah, Pascorp PaperIndustries Berhad


Ng Ghim Eng, Grandee Biotechnologies Sdn BhdKumar Ramu, (Malaysia) Sdn BhdSherene Lim Shin Wei, BASF PETRONAS ChemicalsSdn BhdDato’ Haji Lahuree bin Sudiran, W. R. Grace SpecialtyChemicals (Malaysia) Sdn Bhd



• 5th Annual General Meeting on October 22, 2013and the following Office Bearers were elected forthe period 2013/2014:


Dr Haminnuddin Abd Hamid, Ideal HealthcareSdn Bhd


Tahiruddin Hamdan, SilTerra Malaysia Sdn BhdDesmond Chong, Sufa Sdn BhdVincent Tai, SMT Technologies Sdn BhdMohd Nasaruddin Abu Hassan, KPNK AutomotiveIndustries Sdn Bhd

Kedah/Perlis

Johor


Eiap Eng Khoon, FMM Johor Vice Chairman(left) presenting a token of appreciation

to Omar bin Mat Piah at the Safety &Health Conference 2013

• FMM Johor Safety & Health Conference 2013 on November 13 & 14, 2013. The Conference was officiated byOmar Bin Mat Piah, the Director of Department of Occupational Safety and Health (DOSH) Johor. A total of74 participants joined the 2-day Conference.

• Courtesy Call on Yang Di Pertua of the Johor Bahru Tengah Municipal Council (MPJBT) Tuan Hj Salehuddin bin HjHassan on November 11, 2013. Branch Committee Chairman, Capt (R) Hj Abdullah Shariff, was accompanied byVice Chairmen Eiap Eng Khoon and Saw Seong Ho during the visit. The objective of the Courtesy Call is to strengthenthe relationship between the Branch and MPJBT.

Group photograph of the Office Bearers after the Annual General Meeting

Branch Events

• Seminar on Employment Income Reporting – Tax Compliance on October 10, 2013 attended by 25 participants.The Seminar helped employers understand the changes in tax treatment and to find ways to ensure full taxcompliance of employment reporting.

• Human Resource (HR) Conference 2013 on October 3, 2013. Key HR issues discussed at the Conferenceincluded reacting to the Business Landscape in 2013, implementing restructuring process and remunerationand performance management.

• A Hari Raya Gathering cum Networking Session on August 22, 2013 which was attended by 25 participants comprisingmembers and non-members. The event was to brief potential members on services offered by FMM as well as to give apreview on training programmes conducted by FMM Institute.

• The Branch conducted the Johor Bahru City Council Industrial Development SecretariatMeeting on November 9, 2013. The meeting was chaired by the Mayor, Tuan HajiIsmail bin Karim.

• The Branch also received a Courtesy Call from H.E. Maria Isabel Rendon, theAmbassador of Argentina on November 7, 2013. The visit was aimed at enhancingbilateral trade, exploring and expanding trade prospects between Argentina andbusinesses in Iskandar Malaysia.

• Annual General Meeting on October 22, 2013 and the following Office Bearers wereelected for the period 2013/2014


Capt (R) Haji Abdullah Shariff, Lam Soon Edible Oils Sdn Bhd

Branch Committee Vice ChairmenEiap Eng Khoon, Oriental Assemblers Sdn BhdGerard R Sankar, Taguchi K Rubber (M) Sdn BhdSaw Seong Ho, Panerai Engineering Sdn Bhd


Malacca

The Branch’s activities included the following:

Participants who attended the briefing on GS1 Item Identificationand Bar Coding

Abdul Malek Omar briefing the participants on How to Developand Use Job Safety Analysis to Minimise Accidents

Ordinary Members

• CY-Handee Rubber Mouldings Sdn Bhd• Dynatest Asia-Pacific Sdn Bhd• GBH Ceramics Sdn Bhd• LC Maize Manufacturing Sdn Bhd• Pen-Classic Industries Sdn Bhd• Rosfaniaga Services Sdn Bhd• Shamrock Precision (Malaysia) Sdn Bhd• SB Tape International Sdn Bhd• Yokohama Reclamation Sdn Bhd

• Akademi I.T.C. Sdn Bhd• Light Engineering Design Solutions Sdn Bhd• Valoraz Sdn Bhd

Affiliate Members

New Members (November 2013)The FMM welcomes the following 12 new members into the Federation, 9 Ordinary Membersand 3 Affiliate Members. The majority 42% are from Selangor, 17% from Perak and 8% from

Federal Territory, Johor and Penang, with the rest from other states

Branch Events

• Training on How to Develop and Use Job SafetyAnalysis to Minimise Accidents on November 21, 2013conducted by Abdul Malek Omar, Occupational Safetyand Health Consultant.

• Training on Implementing Safety and Health ManagementSystem at the Workplace on October 2 – 3, 2013.The training was conducted by Prame Kumar Nair,a freelance trainer specialising in Occupational Safetyand Health related programmes.

• Seminar titled Mandatory Electronic PreferentialCertificate of Origin Step by Step Procedure onSeptember 19, 2013. Firdaus Agus of Dagang NetTechnologies (M) Sdn Bhd conducted the workshop.

• Annual General Meeting on September 10, 2013 andthe following Office Bearers were elected for the period2013/2014


Datuk Jeffery Ong, Oriental Food Industries Sdn Bhd


Jimmy Ong, San Miguel Yamamura Woven ProductsSdn BhdTirath Singh, Pannu Industries Sdn Bhd

business - fmm · held its 45th annual general meeting (agm) on november 28, 2013, at wisma fmm,...

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