18TH CICA COUNCIL MEETINGBY
PUAN SRI MAIMON ARIF PATAILVICE-CHAIRMAN
FMM MALAYSIAN CERAMIC INDUSTRY GROUP (FMM MCIG)
MALAYSIA COUNTRY REPORT
7.20 6.00
-1.70
4.706.505.80
5.30
6.805.405.20
-0.90
-1.50
-0.30
7.30
4.20
5.80
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
YEAR
Gro
wth
Ra
te (
%)
M'sia GDP
Construction
M'sia GDP 6.80 5.30 5.80 6.50 4.70 -1.70 7.20 6.00
Construction -0.90 -1.50 -0.30 7.30 4.20 5.80 5.20 5.40
2004 2005 2006 2007 2008 2009 2010 (p) 2011 (f)
Source :Bank Negara Malaysia/Economic Planning Unit2009= preliminary2010= forecast
Malaysia GDP & ConstructionSector Growth Trend 2004-2011
MALAYSIA KEY ECONOMIC INDICATORS
2009 2010
Population 27.9 million 28.3 million
GDP US$ 147.8 billion US$ 166.8 billion
GDP Growth -1.7% 7.2%
Per Capita Income US$ 6,764 US$ 8,140
Inflation Rate 0.60% 1.7%
Labour Force 12.1 million 12.2 million
Unemployment 3.70% 3.20%
Total Export US$ 157 billion US$ 193 billion
Total Import US$ 123 billion US$ 160 billion
Major Exports Electrical & Electronic products, palm oil & palm oil products, crude petroleum , liquefied natural gas, timber & timber
based products and petroleum products.
Major Imports Electrical & Electronic products, petroleum products. Telecommunication equipments, copper and machines.
Source : Annual Report Bank Negara Malaysia 2010
Source : Bank Negara MalaysiaBase Lending Rate
6.13
5.996.61 6.72
6.70
5.62
5.64
6.27
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2004 2005 2006 2007 2008 2009 2010 2011
YEAR
Inte
res
t R
ate
(%
)
as at 1Q
BANK INTEREST RATE2004 - 2011
Source : Bank Negara Malaysia
6.27
5.516.48
2.00
3.60
3.00
1.40
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2004 2005 2006 2007 2008 2009 2010
YEAR
Infl
ati
on
R
ate
(%
)INFLATION RATE
2004 - 2010
Source : Bank Negara Malaysia
3.02
3.31
3.803.79
3.67
3.44
3.33
3.53
3.00
3.10
3.20
3.30
3.40
3.50
3.60
3.70
3.80
3.90
2004 2005 2006 2007 2008 2009 2010 2011
YEAR
RM
/US
DFOREIGN EXCHANGE RATE2004 – 2011(RM/USD)
As at July 13, 2011
ELECTRICITY AND NATURAL GAS PRICE
2010 2011
Average electricity price US$ 0.09/kWh US$ 0.11/kWh
Natural Gas US$ 4.50/MMBtu US$ 5.35/MMBtu
Source : Suruhanjaya Tenaga and Gas Malaysia
� Launched of Economic Transformation Programme (ETP) on October 25, 2010-transform Malaysia into a high-income nation by 2020.
� Increase Gross National Income (GNI) per capita from USD6,700 toUSD15,000 by 2020
� ETP focus on 12 National Key Economic Areas (NKEA) .
� The 12 NKEAs are ;Oil, Gas and Energy; Palm Oil; Financial Services; Tourism; Business Services; Electronics and Electrical; Wholesale and Retail; Education; Healthcare; Communications.
CURRENT SCENARIO
Source :PEMANDU
Construction Industry
�Construction industry is expected to rely more on private project in 2010-2011.
�The growth in construction industry was supported mainly by the civil engineering sub-sector and non-residential sub sector.
�Civil engineering sub-sector continued to grow with the implementation of infrastructure projects such as the new Low Cost Carrier Terminal (LCCT), Second Penang Bridge, double-track rail project and several highways.
CURRENT SCENARIO
Source : Annual Report Bank Negara
�Promoting Green Technology
- Government is working in developing standards, certification scheme, labelling mechanism and green procurement manuals and procedures to enable the public and private sectors to embark ongreen purchasing which will be internationally recognised.
- The Green building Index, a rating tool to grade-environment-friendly buildings and the Government is providing fiscal incentives to buildings which are GBI-certifies.
- Green technology will be as an engine of growth to drive innovation and create employment in the country.
CURRENT SCENARIO
Source: Ministry of Energy , Green Technology & Water
Highlights of FTA’s
� Malaysia-New Zealand FTA- August 1, 2010
� Malaysia FTA negotiations with Chile and Indian were successfully concluded;
� Malaysia FTA negotiations with Turkey and EU commenced in 2010;
� Malaysia was accepted as a full negotiating partner in the Trans-Pacific Partnership Strategic Economic Partnership (TPP). Members of TPP are:-Australia, Brunei, Chile, New Zealand, Peru, Singapore, United States and Viet Nam
Source: Ministry of International Trade and Industry (MITI)
Malaysia's FTA Involvement
ABOUT
FMM MCIG
Tiles
40%
Sanitary-
ware
14%Table-
ware
10%
Claypipe
5%
Others
30%
�� Main subMain sub--sectors are tile, sectors are tile, sanitarywaresanitaryware, ,
tableware, clay pipes and adhesive ( Total: 20 tableware, clay pipes and adhesive ( Total: 20
membersmembers))
MEMBERSHIP STRUCTURE OF MCIG
ChairmanChairman YM Raja DatoYM Raja Dato’’ Abd Aziz b Raja Abd Aziz b Raja Muda MusaMuda Musa
Johan Ceramics BhdJohan Ceramics Bhd
Vice Chairman Vice Chairman
(I)(I)
YBhg Puan Sri Maimon YBhg Puan Sri Maimon ArifArif PatailPatail Malaysian Mosaics BhdMalaysian Mosaics Bhd
Vice Chairman Vice Chairman (Ii)(Ii)
Mr Ian KokMr Ian Kok Niro Ceramic Sdn BhdNiro Ceramic Sdn Bhd
Hon. Secretary/Hon. Secretary/
TreasurerTreasurer
Mr Seow Kok HooiMr Seow Kok Hooi GuoceraGuocera Tile Industries Sdn Tile Industries Sdn BhdBhd
SubSub--sector Coordinatorssector Coordinators
TilesTiles Mr Alvin LohMr Alvin Loh Kim Kim HinHin Industry Sdn BhdIndustry Sdn Bhd
SanitarywareSanitaryware Mr Chan Kum SengMr Chan Kum Seng ClaytanClaytan Corporation Sdn BhdCorporation Sdn Bhd
Tableware/Tableware/
ArtwareArtware
Mr Tan Chong JenMr Tan Chong Jen Oriental Ceramic Sdn BhdOriental Ceramic Sdn Bhd
Associate Associate
MembersMembersMr Michael ChongMr Michael Chong CentriconCentricon Industrial Supplies Industrial Supplies
S/BS/B
SecretariatFMM Malaysian Ceramic Industry Group (FMM MCIG)c/o Federation of Malaysian Manufacturers, Wisma FMM, No 3 Persiaran Dagang, PJU 9 Bandar Sri Damansara, 52200 Kuala Lumpur
FMM MCIG EXECUTIVE COMMITTEE
� Regular dialogues with the Government to address:
- Stability in energy supply at a competitive price
- enforcement of Standards for ceramic tableware
- Curtail the influx of sub-standard ceramic products into the domestic market
� Training Malaysian Customs officials on the proper valuation and classification of imported ceramic products
� FMM MCIG continues to be recognised as the authoritative voice for the ceramics industry.
FMM MCIG ACTIVITIES
Quality & Standard
Mutual Recognition Agreement (MRA) are not adopted by some countries.
Lack of enforcement/ regulation by authority on MS compliance
Lack of awareness on quality/MS products amongst public.
Research & Development (R&D)
Lack of R&D culture, human capital & facilities.
Resistance of industry players to utilise latest construction technologies.
Non Tariff Barriers (NTB)
Human rights/Corporate Social Responsibility (CSR)
Environmental issue (Green issue)
Bureaucracy in imposing trade remedies
CHALLENGES
CERAMIC INDUSTRY 2010
Production Domestic Market
Unit
Tiles 83. 3 million 70.4 million sqm
Sanitaryware 3.2 million 3 million pcs
Tableware 17.4 million 21.8 million pcs
Source : Department of Statistic & FMM MCIG
5053
46
28
22
27
45
2726
17
33
1820
854
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008 2009 2010
Export Value Import Value
Million US$
Source : Department of Statistic Malaysia
Major Export :1. Singapore- 21%2. Australia-10%3. Thailand-8%
Major Import:1.China- 67%2. Vietnam-25%
Year
IMPORT & EXPORT VALUES OF 6907- UNGLAZED TILES
5661
74
16 1621
63
4751
5751
1319
15 15 11
0
10
20
30
40
50
60
70
80
2003 2004 2005 2006 2007 2008 2009 2010
Export Value Import Value
Million US$
Source : Department of Statistic Malaysia
Major Export :1.Australia-25%2.Singapore-14%3. United Kingdom-7%
Major Import 1.Indonesia-48%2. Thailand-31%3. China-8%
Year
IMPORT & EXPORT VALUES OF 6908- GLAZED TILES
22
19
22
9
6
8.5
15
12
1615
20
3 45 6 6
0
5
10
15
20
25
2003 2004 2005 2006 2007 2008 2009 2010
Export Value Import Value
Million US$
Source : Department of Statistic Malaysia
Major Export1.Australia-48%2.Singapore-21%3.United Kingdom-10%
Major Import :1.China-70%2.Indonesia-21%3. Thailand-5%
Year
IMPORT& EXPORT VALUES OF HS 6910-SANITARYWARE
22 24
14 13
3024
49
82
30 32
22
34
64
16 12 15
0
10
20
30
40
50
60
70
80
90
2003 2004 2005 2006 2007 2008 2009 2010
Export Value Import Value
Million US$
Major Import 1.China-77%2. Thailand-5%3. Singapore-3%
Major Export 1.Japan-20%2. USA-10%3. Thailand-14%
Source : Department of Statistic Malaysia
Year
IMPORT & EXPORT VALUES OF 6911 & 6912-TABLEWARE
159 155166
75
5869.5
150
129
174
126 135
515344
92
55
0
20
40
60
80
100
120
140
160
180
200
2003 2004 2005 2006 2007 2008 2009 2010
Export Value Import Value
Million US$
Source : Department of Statistic Malaysia4 ceramic products group : Unglazed Tiles, Glazed tiles, tableware and Sanitaryware
Year
IMPORT & EXPORT VALUES OF 6907, 6908, 6910, 6911 & 6912
� Introduction of affordable housing programme launched under a public-private initiative will boost the activities in the residential sub sector for 2011.
� Public expenditure on building and upgrading of schools, universities, hospitals and clinics under 10th Malaysian Plan will also provide positive outlook to the ceramic sector.
� The performance of the ceramic tiles sub-sector will continue to be sensitive to foreign exchange rate movements as well as raw materials and energy costs.
Outlook for Ceramic Industry