CONTENTSTHE ASSOCIATED CHINESE CHAMBERS OFCOMMERCE AND INDUSTRY OF MALAYSIA

77 Issue No.77

Bulletin2012 2 (February 2012)

Issue No: 1/2012KDN: PP8722/12/2012(031293)

Published by

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

Editorial and Publication Committee

ChairmanDatuk David Chua

Deputy ChairmanDato’ Low Kian Chuan

Chief EditorOng Kim Seng

Deputy Chief EditorChow Mun Seong

Executive EditorSeow Mei Yin

Assistant EditorsChristine PooPoh Wan Kh’ngYong Chee SoonWai Kian HongFoo Sheve LeNg Siew Hwa

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

Printed by:

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

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Notes by Chairman of the Editorial and Publication Committee

Special Features

3

Regeneration 2.1: Chinese Entrepreneurs Roundtable Series (1):

Malaysia Enterprises Innovation Strategies

6

Financial Sector Blueprint 2011-2020

9

Despite Economic Slowdown, The Currency Exchange Is Still On A Bullish Trend

ACCCIM Activities

12

MITI Minister’s Brainstorming Session with Chinese Associations and Think Tanks

15

ACCCIM Trade and Investment Mission to Bangkok, Thailand

17

ACCCIM 3rd SME Conference

1

Notes by Chairman of the Editorial and Publication CommitteeNotes by Chairman of the Editorial and Publication Committee

Datuk David Chua

237天

65%

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As a pass-time, taking a drive to some of the popular routes where you will find small fruit orchards or dusun can be a good and rewarding experience. During popular fruit seasons especially the durian season, you will probably be able to pick up some quality fruits at almost half the price as you would have to pay when these produce are brought to the cities for sale by the vendors. It is a win-win situation as these dusun owners get a better price selling direct to passersby than selling their harvest to the middlemen who usually make huge profi ts by buying in bulk and on-selling them to street vendors in the cities.

However, occasionally you might find rather funny situations where not-so-well-informed dusun owners will quote you prices that could either be a delight or a disappointment. There were occasions when the seller would simply quote you prices for the lot of fruits or other produce that totally defy prevailing local market price levels. When asked how the price is determined, the answer given is that he needs the sum to meet expected expenses: perhaps to buy

something he needs or to pay for the children’s schooling expenses.

The above story has some relevance to expectation of wages by employees of all sectors and categories. There is no absolute right or wrong in that expectation. An employee may perceive that for all that he or she is doing, the remunerations received are inadequate compensation. The reason is that the take home pay is inadequate to meet his personal or family’s fi nancial commitments. On the other hand, from the employers’ perspective, wage levels are to refl ect prevailing industry standards having regard to productivity, quality of work, level of responsibility and contributions to the entire production process for goods and services.

Under the Economic Transformation Programme [ETP], key transformation strategies are designed to facilitate the business and industrial sectors to move forward and achieve better productivity, and enhance their performance and competitiveness. An integral part of this strategy is human resource productivity.

Income DoublingThe Issues of Productivity, Multi-Skill and Self-Improvement

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One of the ETP’s goals is to achieve income doubling from the current US$7,500 to US$15,000 p.a. by 2020. Ostensibly, wage earners will enjoy accelerated wage increases and by the target date, their incomes are expected to double in terms of fi gures. Some quarters may simply view this as ‘enhanced earnings’ by some magical process and hence the dream of higher income is realized. In real terms, this is not to be. There are a number of underlying issues such as infl ation, and other non-infl ationary factors that may give rise to rising cost of goods and services that are not directly caused by infl ation, and the falling value of money due to increase in supply of money or liquidity.

With the recent long holiday seasons over now, we are moving into higher gear in our respective businesses and work routine, it is perhaps timely and appropriate to remind ourselves that Malaysia is among the countries that have the highest number of Public Holidays or to be more precise ‘non-working’ days. To start with, in a year there are about 53 weeks. For each week, there are one and a half days of weekend holidays, and in a year, this translates into about 80 ‘non working’ days.

In addition, Malaysia has 17 Public Holidays (2012 average for States or Federal Territories). Then, there is the leave entitlement of ranging between from 8 days to 30 days depending upon years of service and positions. Beyond this, there are the compassionate leave, maternity leave (60 to 90 days) and paternity leave, marriage leave etc. Above all, there is also provision for sick or medical leave of up to 12 days per year. Adding all these up, in a year, the non-working days may add up to 128 days before taking into account maternity, paternity, compassionate leave, marriage leave and the like.

On the minimum basis, providing just for 128 non-working days in a year, Malaysians will only work 237 days in a year or about 65% of the total number of days (of about 9 to 12 hours a

day) in a year. This has not taken into account the pre and post major festival ‘slow down period’ such as Christmas, New Year, Chinese New Year, Ramadhan and Aidil Fitri and other ethnic festivities in multi-racial Malaysia.

The above has certainly contributed to higher cost of doing business in Malaysia. It is also note worthy that as we embark on the road for higher productivity to justify higher remunerations, the average Malaysians have to acquire multi-skill capabilities and steer away from the age-old single skill mindset. In more effi cient societies, it is not uncommon, for example, to notice a streetlight serviceman drives himself, operates the sky lift and changes the bulb all by himself as compared to a crew of two or three persons each performing a separate role of driving, operating the sky lift or changing the bulb as is happening in another situation. In the earlier case, it is fully justifi able for higher wages payment, and in the latter case, each person is only good to be paid for what each is able to perform his single skill work and cumulatively it costs more to employ three persons for such a low skill job.

There are many such examples. There was once an amazing encounter involving a typical case of a supposedly senior executive telling the boss that she has to pass a particular task assigned to her to a lesser staff because ‘she is not trained’ for a assigned task – the lesser staff is not trained for it either. This was a case of refusal to learn basic management skill and shirking responsibility by simply pleading ignorance to a particular call of duty, or passing the buck.

As Malaysia aspires to achieve the status of high-income economy and developed nation, the above challenges are some of the arduous tasks ahead that must be overcome if we are to achieve sustainable success.

4

Regeneration 2.1:Chinese Entrepreneurs Roundtable Series (1): Malaysia Enterprises Innovation Strategies

Special Features

华商圆桌会议系列（一）座谈嘉宾合照。

Participants of Chinese Entrepreneurs’s Roundtable Series (1).

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(Identity)

马来西亚连锁协会会长

拿督郑生金(零售业) Dato’ Tay Sim Kim, President of Malaysian Retailer- Chains Associations.

苹果旅游董事经理拿

督李益辉(旅游业)Dato’ Lee-san, Managing Director of Apple Vacations and Conventions Sdn Bhd Group.

Special Features

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Mr. Ng Yih Pyng, Group Managing Director of Tomei Consolidated Bhd cum President of Federation of Goldsmith and Jewellers Association of Malaysia

Special Features

Mr. Tee Cheong Tuan, President of the Selangor and Federal Territory Chinese Printing Presses’Asscociation.

7

Bank Negara Malaysia released the new Financial Sector Blueprinton 21 December 2011. Themed “Strengthening Our Future”, the Blueprint charts the future direction of the fi nancial system over the next ten years.

As the country transitions towards a high value-added and high-income economy, the role of the financial sector is envisioned to grow beyond its role as an enabler of growth to be a key driver and catalyst of economic growth. Towards this end, the aim is for the fi nancial sector to be more competitive, dynamic, inclusive, diversified and integrated, with the ability to offer world class financial services, in terms of breadth, depth and quality to serve the needs of Malaysia. The growth of the fi nancial system should be ultimately anchored to the growth in the real sector. Based on the rate of growth of the economy projected for the next decade, the fi nancial sector is envisaged to expand to six times of GDP in 2020 from 4.3 times of GDP currently. Meanwhile, the contribution of the fi nancial services sector to nominal GDP is expected to grow from 8.6% of nominal GDP to between 10 and 12% by 2020.

Recognising the increasingly complex linkages, both between the various components of the financial system and the greater international connectivity and regional financial integration, the Blueprint moves away from the sector-based approach of the previous Financial Sector Masterplan (FSMP). The Blueprint adopts an integrated approach where recommendations are based on shared outcomes applicable to various sub-sectors within the financial sector. Beyond domestic borders, the Blueprint envisions greater participation by the Malaysian financial sector in facilitating regional financial flows, especially in suppor ting regional trade and

investment, regional fi nancial integration, as well as the internationalisation of Islamic fi nance. The formulation of the Blueprint also draws important lessons from the recent global financial crisis where fi nancial stability is an important prerequisite in ensuring orderly and sustainable development of the fi nancial sector and the economy as a whole.

There are nine focus areas under the Blueprint to further advance financial sector development to drive Malaysia’s transition to a high value-added, high-income economy with adequate safeguards to preserve fi nancial stability:

Effective intermediation for a high value-added and high-income economy

This entails the mobilisation of diverse savings to productive investments in Malaysia and to meet the needs of both businesses and households. A vibrant risk-capital ecosystem to suppor t innovation-driven economic activities and start-up ventures will be developed. The initiatives will also include enhancing the provision of large and long-term project financing for infrastructure development. As Malaysia deepens its trade and investment linkages, the financial sector is envisaged to have a larger role in supporting the internationalisation of Malaysian businesses. To cater to Malaysia’s growing affl uent segment and maturing population, emphasis will be placed on enhancing the provision of financial services for wealth management, retirement and long-term healthcare. The development of a vibrant private pension industry is also expected to enhance the role of pension funds as a key source of funding for the longer-term and risk-based fi nancing needs of the economy.

Financial Sector Blueprint 2011- 2020

Special Features

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Developing deep and dynamic fi nancial markets

Efforts will be directed towards improving the liquidity, depth and participation in the money, foreign exchange and government securities markets in Malaysia, in enabling more effective intermediation, transfer of risks and management of liquidity, and meeting the diverse needs of a more developed and internationally integrated economy. The foreign exchange administration rules will be progressively liberalised to further raise effi ciency in fi nancial market transactions. The development of vibrant domestic foreign exchange and money markets, and ensuring sound risk management and corporate governance practices by financial market players, will be an important agenda in the development of our fi nancial system.

Financial inclusion for greater shared prosperity

The aim is to enable all members of society, including the underserved, to have access to and usage of quality, affordable and essential fi nancial services. Initiatives will focus on developing more innovative delivery channels such as agent banking to enhance the outreach of fi nancial services in a cost-effi cient manner and expansion of the range of products and services such as more flexible micro financing products, long-term contractual micro saving products, and microinsurance and microtakaful products to cater to distinct fi nancial needs of all segments of society.

Strengthening regional and international fi nancial integration

As the Malaysian financial sector assumes a larger role in mobilising regional and cross-border funds and supporting the needs of both Malaysian corporations expanding abroad and corporations that invest in Malaysia, ef for ts to strengthen Malaysia’s international financial linkages will be pursued. Moving forward, Malaysia’s investment policy will be guided by two key considerations - (i) prudential criteria and (ii) the best interest

of Malaysia criteria, which includes the effect of the investment on Malaysia’s economic activity, particularly in catalysing new high value-added activities, contribution towards enhancing international trade and investment linkages and impact on fi nancial stability, including the level of competition. A further consideration in assessing the best interest of Malaysia is the continued presence of strong and well-managed domestic banking groups that continue to mobilise a significant share of resident deposits, as this is important for the orderly growth and development of the fi nancial sector.

Internationalisation of Islamic fi nance

While Malaysia has made significant inroads in becoming an international Islamic fi nancial centre, efforts will continue to be undertaken to enhance the Islamic financial ecosystem. This will entail developing a more conducive environment for the mobilisation of higher volumes of international Islamic financial flows from a diverse range of players to be channelled through innovative Islamic financial instruments. In strengthening the legal and Shariah frameworks and further advancing Malaysia’s thought leadership in Islamic finance, a single legislated body to be the apex authority on Shariah matters in Islamic finance will be established.

Regulatory and supervisory regime to safeguard the stability of the fi nancial system

A comprehensive legislative framework will be enacted to reinforce a sound, transparent and accountable system for effective regulation and supervision. Focus will also be accorded towards enhancing capital and liquidity standards of financial institutions in line with international standards as well as raising their governance and risk management standards. As the fi nancial sector grows to be more regionally-and internationally-connected, greater cross-border collaboration will be pursued with other supervisory authorities.

Special Features

9

Electronic payments for greater economic effi ciency

Accelerating the migration to electronic payments (e-payments) will be emphasized. In the next ten years, the Bank targets to increase the number of e-payment transactions per capita from 44 transactions to 200 transactions, and reduce cheques by more than half from 207 million to 100 million per year. Measures to achieve this aim will include providing the right price signals to encourage the switch from paper-based payments to e-payments, and facilitating wider outreach of e-payments infrastructure, such as point-of-sale terminals and mobile phone banking.

Empowering consumers

A c ompr ehens i ve and ho l i s t i c appr o ach towards consumer protection and education will be pursued in collaboration with various stakeholders. The aim is to promote a culture of mutual responsibility shared between consumers, who are empowered with the knowledge, skills and financial literacy to manage their personal wealth, and financial service providers, who uphold fair and responsible dealings in the conduct of their business. The infrastructure to suppor t greater consumer empowerment will be strengthened through establishing a single consumer credit legislation, integrated dispute resolut ion system and an enhanced credi t information framework. Measures to promote financial capability among consumers through the integration of fi nancial curriculum at schools and targeted fi nancial literacy programmes based on life events will be pursued.

Talent development to support a more dynamic fi nancial sector

A Financial Services Talent Council wil l be established to drive, oversee and coordinate talent development efforts in the fi nancial sector. Other initiatives include developing talent for

entry level, promoting continuous learning for the existing workforce, and attracting talent from abroad. Ensuring an adequate supply of skilled talent to meet the challenges in the new fi nancial landscape will require greater collaboration and coordination among various agencies beyond the fi nancial sector.

The strategies and recommendations of the Blueprint will build on the strong foundation of the Malaysian financial system. Malaysian financial institutions today are well capitalised with strong buffers, improved risk management and corporate governance practices, and greater regional presence. The fi nancial infrastructure in Malaysia has also been signifi cantly strengthened, including the development of a deep and vibrant bond market, robust payment and set tlement systems, and an effective financial safety net. This has been supported by a comprehensive and robust regulatory and supervisory framework and effective surveillance that is forward looking and focused on addressing the risks to overall financial stability. In addition, Malaysia has a comprehensive Islamic financial system that is recognised as among the most advanced in the world.

The Blueprint charts a vision and direction for the Malaysian financial sector for the next ten years that will suppor t Malaysia’s long-term ambitions. To ensure the achievement of the desired outcomes, a robust implementation and moni tor ing f r amework w i l l be pu t in place, including update on the progress of the implementation of the Blueprint.

Source: Bank Negara Malaysia

Special Features

12

白文春先生Mr. Peck Boon Soon

2011

Despite Economic Slowdown, The Currency Exchange Is Still On A Bullish Trend

Special Features

13

MITI Minister’s Brainstorming Session with Chinese Associations & Think Tanks

由

ACCCIM Activities

14

丹斯里拿督斯里黄家定及丹斯里钟廷森联合主持首轮交流

会。Tan Sri Dato’ Seri Ong Ka Ting and Tan Sri William Cheng co-chaired the fi rst part of interaction session.

ACCCIM Activities

15

贸工部长与华团领袖一同捞生。

Minister of MITI enjoying the “laosheng” with leaders of Chinese associations.

ACCCIM Activities

拿督斯里慕斯达法、拿督慕克力与华团及智囊团领袖举行脑力激荡会议。

Dato’ Sri Mustapa bin Mohamed, Dato’ Mukhriz bin Tun Mahathir at brainstorming session with leaders of Chinese associations and think tanks.

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ACCCIM Trade and Investment Mission to Bangkok, Thailand.

H.E. Dato’ Naziran binti Hussain 3

Tan Sri Dato’ Soong Siew Hoong presented a souvenir to H.E. Dato’ Naziran binti Hussain (3rd from left) , Malaysian Ambassador to Thailand.

Photo taken between offi ce-bearers of Thai-Chinese Chamber of Commerce and members of ACCCIM delegation.

ACCCIM Activities

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Photo taken between offi ce-bearers of Malaysia-Thai Chamber of Commerce and members of ACCCIM delegation.

Tan Sri Dato’ Soong Siew Hoong visited the resource centre of MIDA’s offi ce in Bangkok.

Photo taken by members of delegation at the Thai BOI Fair.

ACCCIM Activities

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ACCCIM 3rd SME Conference

Regeneration 2.1Innovation • Talent • Market

Berjaya Times Square Hotel Kuala Lumpur.

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ACCCIM Activities

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Speakers

ACCCIM Activities

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03- 4260 3090/ 3091

acccim@acccim.org.my

03- 4260 3080

www.acccim.org.my

6th Floor, Wisma Chinese Chamber, 258, Jalan Ampang, Kuala Lumpur.

ACCCIM Activities

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•

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Products & Services- Cyclone, Bag filter, Scrubber, Oil Mist

Filter, Thermal Oxidiser, Electrostatic Precipitator

- Fan, Blower, Industrial Vacuum Cleaner- Industrial Silencer, Acoustic Enclosure- Heat Exchanger, Heat/Energy Recovery- Powder Handling, Pneumatic Conveying,

Central Vacuum Cleaning- Steel Mill Equipment, Rolls, Roller Guide,

Steel Handling System- Training & Consultancy on all aspects of

Air Pollution Control - Field Audit, Upgrading, Retrofit &

Modification of existing Air Pollution Control System, Parts & Service

Design, Consult, Manufacture, Supply, Install, Test & Commission, Parts & Service, Upgrade & Modify and Training

MASTER JAYA ENVIRONMENTAL SDN BHD (201551-K)Factory Address :- Lot 8320, Jalan Permata 1, Arab-Malaysian Industrial Park, 71800 Nilai, Negeri Sembilan

Office Address :-Wisma Master Jaya, 20, Jalan Taming 3, Taming Jaya Industrial Park, 43300 Seri Kembangan, Selangor Tel : 03-8962 6233 Fax : 03-8962 6211Email : info@masterjaya.com.my Website : www.masterjaya.com.my

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