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04 COVER STORY

FMM Annual Dinner 2017

F E D E R A T I O N O FM A L A Y S I A NM A N U F A C T U R E R S

JAN – MAR 2018 VOL: 1/2018 www.fmm.org.my KDN NO.PP 16730/08/2012 (030376) FMM@

18 SME NEWS

FMM SME Conference 2017

12 FEATURE

FMM – MIER Business Conditions Survey

YOUR VOICE YOUR PARTNER

Years & Beyond19682018

COVER STORY

04 FMM Annual Dinner 2017

SPECIAL FEATURE

06 FMM 49th Annual General Meeting

E D I TO R I A L CO N T E N TAdvisorDr Yeoh Oon TeanChief Executive Officer

Editorial TeamKenny LeeManagerMembership Division

Natalie NgSenior ExecutiveMembership Division

AdvertisementsKenny LeeManagerMembership DivisionTel: 03-62867200Email: [email protected]

Published ByFederation of Malaysian Manufacturers(7907–X)

Wisma FMMNo. 3, Persiaran Dagang, PJU 9Bandar Sri Damansara52200 Kuala LumpurTel: 03-62867200Fax: 03-62741266/7288Email: [email protected]: www.fmm.org.my

Printed ByPercetakan Okid Sdn BhdNo. 2, Jalan SS13/3CSubang Jaya Industrial Estate47500 Subang Jaya, Selangor

FMM has nine branches and one representativeoffice located in Kedah, Penang, Perak, Selangor,Negeri Sembilan, Malacca, Johor, Pahang,Sarawak and Sabah.

Any material extracted from BUSINESS ACTION@FMM to be quoted or reprinted shouldcontain an acknowledgement to FMM or itsacknowledged sources.

F E D E R A T I O N O FM A L A Y S I A NM A N U F A C T U R E R S© Copyright Reserved

07 Dato’ Soh Thian Lai Elected as FMM President

08 Line-up of FMM Council for 2017/2018

10 FMM Council Swearing-in Ceremony, Dinner and Media Night

2 | BIA@FMM | JAN – MAR 2018

Negeri Sembilan

Malacca

Eastern

Johor

Sarawak

FEATURE

12 FMM – MIER Business Conditions Survey

SME NEWS

18 FMM SME Conference 2017: Developing Productive and Innovative SMEs towards Internationalisation and Industry 4.0

HR/IR CORNER

20 Interim Re-Employment Placement Programme (IREPP) 2018

16 FMM-MPC Briefing on LEAN System Development Programme

17 FMM LEAN Study Mission to Nagoya & Tokyo, Japan

BRANCH NEWS

22 Kedah/Perlis

Penang

Perak

Selangor

33 NEW MEMBERS

JAN – MAR 2018 | BIA@FMM | 3

COVER STORY

FMM’s 49th Annual Dinner onNovember 27, 2017 saw the handoverof the FMM Presidency from Tan SriDr Lim Wee Chai to Dato’ Soh Thian Lai,who was elected President at theCouncil Meeting following FMM AnnualGeneral Meeting held on the same day.YB Dato’ Sri Mustapa Mohamed, Ministerof International Trade and Industrywitnessed the handover ceremony.

Also present were more than1,000 members, their associates,business leaders and distinguishedguests including Tan Sri Amirsham AbdulAziz, Chairman of MIDA and Datuk SeriJ Jayasiri, Secretary General of MITI.

The Minister, whose speech was deliveredby Datuk Seri J Jayasiri, praised FMMfor its proactive role as an effectiveplatform for sectoral consensus buildingand networking based on consultationamongst its members.

YB Dato’ Sri reiterated that in Budget2018, various allocations and measuresto assist local manufacturers to staycompetitive and resilient. Some of theseincentives have been developed by theGovernment together with FMM andrelated trade bodies and chambers.

YB Dato’ Sri also highlighted thesignificant growth of the manufacturingsector which had increased by 7% toregister a 22.3% contribution to the

FMM ExcellenceAward 2017Introduced in 2010, the FMM ExcellenceAward is in its 7th edition. The Awardrecognises businesses for theiroutstanding achievement andexcellence in manufacturing, processimprovements and corporate growth.The Award winners were:

LARGE COMPANIES

Gold Recipients

• Linaco Manufacturing (M) Sdn Bhd

• Top Glove Sdn Bhd

• Toto Malaysia Sdn Bhd

Silver Recipient• Samling Housing Products Sdn Bhd

SMI COMPANIES

Gold Recipient• PETZL Manufacturing Malaysia

Sdn Bhd

Silver Recipient• AF Manufacturing Services Sdn Bhd

FMM Annual Dinner 2017

GDP. He called upon FMM membersto strive for better productivity andefficiency to generate greater returns.

In the speech, YB Dato’ Sri commendedFMM for its 7th cycle of FMM ExcellenceAward which had provided motivationand reinforced the need for the industryto continuously improve businessprocesses and enhance productdevelopment in order to remainrelevant and competitive.

In his concluding remarks, YB Dato’ Sriemphasised the importance for a closercooperation between the public andprivate sectors; to which he highlightedthe close partnership between theGovernment and FMM as an excellentexample of what can be achievedwhen both sectors work together.

YB Dato’ Sri witnessed and presentedcertificates and awards to recipientsand award winners as follows:

FMM Membership GrowthAward for Financial Year2016/2017The Award aimed at recognising andmotivating FMM Branches in theirefforts to recruit and retain members.The Award for FY 2016/2017 was wonby FMM Negeri Sembilan Branch.

The winners and finalists of the FMM Excellence Award 2017 after receiving their certificates and trophies from YB Dato’ Sri Mustapa Mohamed


FMM Membership Growth Award for the financial year 2016/2017 was awarded toNegeri Sembilan Branch Chairman, Steven Aroki (3rd from right)

FMM Excellence Award winners with their respective awards

Property Showcase by S P Setia Project Management Sdn Bhd

Product Showcase

Ice-cream booth

Caricaturist

Teh Tarik demonstration


Celebration activitiesFMM 50th Annual Dinner

October 9, 2018

SPECIAL FEATURE

FMM held its 49th Annual GeneralMeeting (AGM) on November 27, 2017,at Wisma FMM, Bandar Sri Damansara,Kuala Lumpur.

In his address, Tan Sri Dr Lim Wee Chai,then FMM President, highlightedthat global economic expansionwas slower in FY 2016/17 withgrowth in GDP of 3.1% in 2016.The Malaysian economy registeredlower growth of 4.2% in 2016 against

weak global demand, subduedconsumer sentiments and a weakerringgit. GDP growth, however, pickedup to 5.7% in the first half of 2017driven by higher export demand andstronger private sector demand.

During the year under review,FMM continued to assume aproactive role in advocating theinterests of members and expandingtheir global reach in 2016/2017.FMM effectively addressed the issuesof concern to members with theGovernment and through workingwith partners.

FMM also focused on addressingconcerns of its 3000 members.FMM’s strong links with governmentand key appointments in key publiccommittees including PEMUDAH,National Export Council, MIDA,MATRADE, SME Corporation, EPF andSOCSO assisted in resolving key issues.

As Secretariat to the Malaysian-Singapore Business Council, APECBusiness Advisory Council, East AsiaBusiness Council, ICC and MNSC, FMMalso facilitated and expanded businessand trade opportunities for members.

FMM continued to provide value-added and consultancy services tomembers through its network of

offices, regional committees andindustry groups. FMM monitoredindustry concerns through theFMM – MIER Business Conditions Surveyand feedback from Council, Branch,Regional and Working Committees.

Regular updates on new policies,regulations, and market developmentswere provided via FMM Net,publications, weekly FMM Bulletinsand 348 circulars. The 48th FMMDirectory of Malaysian Industries,FMM website and FMM Facebookpromoted members’ products/services.

FMM also undertook a numberof CSR activities to promotesustainable development,corporate social responsibilityand community development.

In the coming year, FMM willcontinue to monitor the operatingenvironment and any upwardpressure on costs especiallyregulatory compliance costs.FMM will also continue to press fortax incentives for exports, branding,innovation and R&D to assist FMMmembers’ companies move up thevalue chain.

In conclusion, members werecalled to embrace new technologicaladvancements, Industry 4.0, invest

FMM 49th Annual General Meeting

The Annual General Meeting in session

Tan Sri Dr Lim Wee Chai addressingFMM members at the

Annual General Meeting


Dato’ Soh Thian Lai Elected as FMM President

Dato’ Soh Thian Lai was elected asFMM President at the Council meetingon November 27, 2017, succeedingTan Sri Dr Lim Wee Chai. A handoverceremony was held at FMM’s AnnualDinner, witnessed by YB Dato’ SriMustapa Mohamed, Minister ofInternational Trade and Industry.

of MITI, Council Member of MalaysianStandard & Accreditation Councilunder Ministry of Science, Technology& Innovations and Council Memberof National Accreditation Councilunder the Department of StandardMalaysia, Ministry of Science,Technology & Innovations.

Before elected as FMM President,Dato’ Soh served as Chairman ofFMM Selangor Branch andCo-Chairman of PEMUDAH Selangor.

Dato’ Soh graduated from TunkuAbdul Rahman College with aDiploma in Technology (MaterialsEngineering) in 1985. He obtaineda Diploma in Management fromMalaysian Institute of Management(MIM) in 1991 and a Master of BusinessAdministration from the Universityof Bath, United Kingdom in 1994.Dato’ Soh was upgraded as aFellow Member of MIM in 2010.

Dato’ Soh is the Group ExecutiveDeputy Chairman of YKGI HoldingsBerhad. Dato’ also holds the designationas Executive Chairman for Star ShineIndustries Sdn Bhd and as DeputyChairman for Asteel Sdn Bhd.

Dato’ Soh has over 30 years ofexperience in the steel industry.Dato’ has been instrumental in thedevelopment and growth of YKGIHoldings Bhd and its group ofcompanies. Dato’ is also serving asPresident of Malaysian Iron andSteel Industry Federation (MISIF),Vice-President of National Chamber ofCommerce and Industry of Malaysia(NCCIM), Council Member and Vice-President of ASEAN Iron and SteelCouncil (AISC), Director of South EastAsia Iron and Steel Institute (SEAISI),Council Member of Malaysian SteelCouncil (MSC) under MITI, Foundingmember and Director of Malaysia SteelInstitute (MSI) – one of nine agencies

more resources to upgrade productivity,quality and R&D, expand market access,up-skill workforce through trainingand invest in upgrading and automatingmanufacturing processes to stepup competitiveness.

The report of the Council andStatement of Accounts for financialyear ended June 30, 2017, wereunanimously approved and adoptedby the members present. 15 Councilmembers were elected/re-electedinto the FMM Council.

At the Council meeting followingthe AGM, Dato’ Soh Thian Laiwas elected as FMM President for2017/2018. Tan Sri Dr Lim Wee Chaitook office as the Immediate PastPresident under Article 38. Dato’ DrIr Andy Seo Kian Haw, Datuk NorainiSoltan, Dato’ Nathan K Suppiahand Abdul Samad Ibrahim were elected as Vice-Presidents for2017/2018.

(continued from page 6)


Members present at the 49th Annual General Meeting

Celebration activitiesFMM ICON Award 2018

President

Dato’ Soh Thian LaiYKGI Holdings Berhad

Immediate Past President

Tan Sri Dr Lim Wee ChaiTop Glove Sdn Bhd

Vice-Presidents

Dato’ Dr Ir Andy K. H. Seo Alphaprima Engineering Sdn Bhd

Dato’ Nathan K SuppiahISUS JVC Industries Sdn Bhd

Abdul Samad Ibrahim Kulitkraf Sdn Bhd

Datuk Noraini Soltan Sipro (Malaysia) Sdn Bhd

Council Members

Dr Helena Eian Yeut Lan Accel Graphic System Sdn Bhd

Tan Sri Albert Cheng Yong KimAntara Steel Mills Sdn Bhd

Victor Hii Lu Thian Asteel Sdn Bhd

Michelle Hah Mei Kian Fire Fighter Industry Sdn Bhd

Tan Sri Saw Choo Boon Heineken Malaysia Berhad

Dato’ Mizanur Rahman Ghani Huntsman P & A Asia Sdn Bhd

Tan Sri Dato’ Soong Siew HoongKejuruteraan Wang Yuen Sdn Bhd

Ir Ter Leong LengKemuncak Engineering SuppliesSdn Bhd

Datuk Leow Chong HowaLB Aluminium Berhad

Puan Sri Maimon Arif PatailMalaysian Mosaics Sdn Bhd

Ir A K WooMaster Jaya Engineering Sdn Bhd

Mag NgMega Fortris (Malaysia) Sdn Bhd

Dato’ Kevin Lai Tak KuanNagakaya Corporation Sdn Bhd

Alois Hofbauer

Nestle Manufacturing (Malaysia)Sdn Bhd

Hiroyuki ImizuPanasonic Manufacturing MalaysiaBerhad

Davies DanavaindranRadosh Engineering and IndustrialSdn Bhd

Datuk Wong Choon SengSabaconcrete Sdn Bhd

Dato’ Palaniappan Joseph Satake Technologies Sdn Bhd

William Tan Sky Resources Sdn Bhd

Ng Ming Yee Nissha Precision Technologies MalaysiaSdn Bhd

Dato’ Goh Boon KimTaik Sin Timber Industry Sdn Bhd

Gor Siew Yeng Toray Plastics (Malaysia) Sdn Bhd

Dato’ Tan Boon PunXilouette Manufacturer Sdn Bhd

Branch Chairmen

Dato’ Dr Haminnuddin Abd Hamid Kedah/Perlis Branch CommitteeIdeal Healthcare Sdn Bhd

Dato’ Dr Ooi Eng Hock Penang Branch CommitteeMenara Kerjaya Fasteners Sdn Bhd

Dato’ Gan Tack Kong Perak Branch CommitteeNgan Yin Food Industries Sdn Bhd

Jacob Lee Chor Kok Selangor Branch CommitteeAsli Mechanical Sdn Bhd

Steven Aroki Negeri Sembilan Branch CommitteeSmane (M) Sdn Bhd

Datuk Jeffery Ong Malacca Branch CommitteeOriental Food Industries Sdn Bhd

Capt (R) Haji Abdullah ShariffJohor Branch CommitteeDSN Advanced Technology (M)Sdn Bhd

Azli Haji NoraliEastern Branch CommitteeBI Technologies Corporation Sdn Bhd

Haji Othman Abdul Rani Sarawak Branch CommitteeCMS Cement Sdn Bhd

Line-Up of FMM Council for 2017/2018

Group photograph of the FMM Council Members for 2017/2018

SPECIAL FEATURE


SPECIAL FEATURE

The inaugural FMM Council Swearing-in Ceremony, Dinner and Media Nightwas held on January 24, 2018 atShangri-la Hotel, Kuala Lumpur.

The historic Swearing-in Ceremonyof the FMM Council members wasofficiated and witnessed by Ministerof International Trade and Industry II,YB Dato’ Seri Ong Ka Chuan. Membersof the press were also present towitness the ceremony.

In the speech, YB Dato’ Seri expressedhis appreciation for the FMM’s strongsupport and cooperation in workingtogether with MITI in supporting themanufacturing sector. YB Dato’ Seriwas confident that with the selflessand dedicated commitments of thenewly sworn-in Council members,FMM would continue to providethe leadership to help the governmentto prevail over economic as wellas technological challenges in thecoming years.

Meanwhile, FMM President, Dato’ SohThian Lai in delivering his address,emphasised that while the Swearing-in

FMM Council Swearing-in Ceremony, Dinnerand Media Night

Tan Sri Dato’ Soong Siew Hoong receiving his Certificate as FMM Council Member fromMinister of International Trade and Industry II, YB Dato’ Seri Ong Ka Chuan and

witnessed by FMM President, Dato’ Soh Thian Lai

Group photograph of the FMM Council Members for 2016/2017FMM Council Members group photograph with Minister of International Trade and Industry II, YB Dato’ Seri Ong Ka Chuan

Ceremony was momentous andimportant, the occasion was beyondceremonial. He believed that withthe rich diversity background of theCouncil members, FMM would continueits role as the voice of Malaysian Industryin representing the interest of itsmembers. FMM would continue to worktogether with the Government

to drive the national economyforward into higher value-added,high-technology and knowledge-driven growth in the Industry 4.0 era.

In his concluding remarks, healso reinforced FMM’s commitmentto transparency, integrity, andno corruption.


FAVOURABLE BUSINESS CONDITIONS IN 2H2017 OUTLOOK FOR 1H2018 POSITIVE Issue No. 1/2018 Released on February 22, 2018

Indicators FMM – MIER Business Conditions Index Values Current

(Compared to 6 months ago) Looking Forward (Next 6 months)

1H2016 2H2016 1H2017 2H2017 2H2016 1H2017 2H2017 1H2018 Business conditions 90 102 101 115 107 100 110 120Local sales 80 87 87 107 99 87 102 110Export sales 99 109 109 113 112 111 117 117Production volume 93 106 105 122 114 106 117 126Capacity utilisation 94 107 103 118 111 106 111 118Capital investment 110 110 113 116 108 116 120 122Number of employees 106 104 109 110 111 110 114 117Cost of production 154 167 165 164 150 165 153 157

Results of the FMM-MIER Business Conditions Survey for 2H2017 showed that business conditions were favourable for the Malaysian manufacturing sector in 2H2017 as sales, production volume, capacity utilisation and employment picked up pace in parallel to an improving economy, while costs of production wererelatively stable but still high.

The outlook for the sector is positive going forward as trade growth and investment recovery, benefitting from a stronger Ringgit are expected to help spur the economy. UPTREND IN BUSINESS ACTIVITY IN 2H2017 The manufacturing sector was a hive of activity in 2H2017, as reflected in the latest general business conditions index which surged fourteen points from the previous survey to 115.

42% of the respondents indicated that their business activity in recent months had expanded, up from 35% in 1H2017 and 33% in 2H2016.

Local and Export Sales Increase

For the first time since the inception of this survey in 2012, the current local sales index breached the 100-point optimism threshold to reach 107 in 2H2017, suggesting a stronger growth momentum of the domestic economy.

An all-time high of 35% of the respondents enjoyed higher domestic sales in 2H2017, while 28% reported lower sales, down from 39% and 38% in 1H2017 and 2H2016, respectively.

Sustained external demand has pushed the index for current export sales up which, at 113, improved four points from 1H2017, with 38% of the respondents confirming higher sales abroad in 2H2017.

Production Volume and Capacity Utilisation Shift

Higher Recent production and capacity utilisation had grown in tandem with the buoyant sales. Reflecting this is the index for current production which picked up seventeen points from 1H2017 to 122, while the current capacity utilisation index rose fifteen points to 118 in 2H2017.

KEY FINDINGS 2H2017

Business conditions index surged 14 points to 115 (1H2017: 101). 42% noted increase in business activity (1H2017: 35%) 35% reported higher domestic sales & 38% higher exports Production index up 17 point & Capacity utilization index up 15 points Capital investment stronger 31% (1H2017: 29%) higher investment

1H2018

Business conditions index rising to 120 37% expecting improvementsAlmost one third expect higher domestic sales & 39% higher exports43% likely to step up production & 36% higher capacity utilisation63% expecting higher production costs9 in 10 respondents likely to increase or maintain headcount

FEATURE



45% of the respondents increased production, up from 36% in 1H2017 and 37% in 2H2016. Capacity levels were also raised by majority (42%) of the respondents, compared to 32% and 35% in 1H2017 and 2H2016, respectively. Cost of Production Stable,

Capital Investment Beefs Up

The index for current cost of production, at 164, was little changed from the prior survey’s165, indicating manufacturing costs had remained relatively stable in 2H2017.

7-in-10 of the respondents noted an increase in their production costs, down from 72% in 1H2017 and 74% in 2H2016. 6% reported a reduction in costs, compared to 7% in the past two surveys.

Capital investment picked up lately. Attesting to this is the current capital investment index which rose three points from 1H2017 to 116 in 2H2017. 31% increased capital expenditure in 2H2017, up from 29% in 1H2017 and 30% in 2H2016; while more than half of the respondents maintained their allocations for now.

Employment Steady

The current employment index was also little changed from the previous survey. With the index registering 110 as opposed to 109 in the preceding survey, it infers that hiring remained fairly stable throughout 2017.

Only a quarter of the respondents had increased their headcount, while most had maintained in each period.

POSITIVE OUTLOOK FOR 1H2018

The outlook for 1H2018 is encouraging, with all forward-looking indicators registering improvements over those in the previous survey. The biggest gains are observed for business conditions, production volume and local sales.

The expected business conditions index climbed to 120, with 37% hoping to see an improvement in business conditions soon. While 48% believe that status quo will remain, 17% responded negatively.

Domestic demand is expected to remain resilient at the outset of 2018, as reflected in the index for expected local sales which rose to 110 in the latest survey. Almost one-third of the respondents are expecting an increase in local sales in 1H2018, up from 27% a survey ago.

The expected export sales index is held steady at 117, with 39% projecting higher sales abroad in the coming months, while another 39% responded neutrally.

With sales expectations looking up, production volume is set to pick up pace as well. The index for expected production volume surged to 126 from the prior survey’s 117, with 43% of the respondents likely to step up production in the months ahead. 4-in-10 will maintain current volume and 17% are expected to reduce production instead. In line with the encouraging business conditions and sales outlook for 1H2018, the index for expected capacity utilisation increased to 118. 36% of the respondents will likely expand their capacities in the coming months, up from the former survey’s 30%.

Respondents are bracing for higher production costs soon. This is shown in the index for expected cost of production which jumped to 157 from the prior survey’s 153. 63% of the respondents are anticipating an increase in their production costs in 1H2018 and only 6% foresee otherwise. The expected capital investment index gained two points from the last survey to 122, postulating that capital investment will remain sturdy in 1H2018. 88% are planning to increase or maintain their capital investment.

The index for expected employment, at 117, also improved over the prior survey, with 9-in-10 of the respondents likely to increase or maintain their headcount in early 2018. DEBT COLLECTION

FMM had received feedback that debt collections were taking longer than a company’s credit period (CP).

The survey found that 30-60 days is the CP of most respondents, with a majority of 37% indicating that their CP is 60 days, while that of 27% is 30 days.

Those with CP 90 days totalled almost 15%, while 18% offer CPs of 3-120 days.

Most (46%) of the respondents said that more than 50% of their debts were collected within their CP. While 17% take up to 30 days in excess of their CP to collect debts, 20% take more than 30 to 60 days in excess of CP.

Another 10% and 5% require more than 60 to 90 days, and more than 90 days, in excess of their CP, respectively.

SALARY INCREMENT

For financial year 2017, salary increments for executives and non-executives were mainly in the range of 1-<5% and 5-<7%. 47% and 48% of the respondents awarded salary increments of 1-<5% for executives and non-executives, respectively.

Pay hikes of 5-<7% for executives and non-executives were given by 31% and 32% of the respondents, respectively.

Almost 8% increased their executive payroll by 7-<10%, and the same rate was given by 7% of respondents to their non-executives.

The largest increment of >10% was accorded by 2% of the respondents to their executives, while another 2% gave their non-executives the same quantum.

13% did not provide their executives any increment; neither did 10% for their non-executives.

Salary increments for financial year 2018 are expected to be the same as 2017, with the projected rates likely to be maintained at 1-<5% and 5-<7%.

An increment of 1-<5% is being considered by 52% of the respondents for both their executives and non-executives, while 31% and 34% are contemplating a raise of 5-<7% for their executives and non-executives, respectively.

An upgrade of 7-<10% and >10% for all staff is also on the agenda of 7% and 1% of the respondents, respectively.

8% will not be giving their executives any increment in 2018, while 6% will not be giving any to their non-executives.

COSTS OF RAW MATERIALS According to the 1H2017 survey, raw materials, which constitute up to 70% of production costs, had increased by 6-10%, with some as high as 22%.

It was subsequently found in the latest survey that these high costs of local raw materials were mainly due to the weak Ringgit vis-à-vis the USD, with almost 64% confirming this.

Cost pass through was pointed out by 51% of the respondents, while 30% and 18% attributed it to a shortage/disruption in supply, and fewer suppliers, respectively.

The weak Ringgit was also the primary reason for the high costs of imported raw materials for 81% of the respondents; while shortage/disruption in supply and cost pass through, were indicated by 32% and 30% of the respondents, respectively.

GST INPUT TAX REFUNDS Section 67 GST Regulations 2014 stipulates that input tax credit (ITC) refunds are to be paid within fourteen working days (WD) from the date of filing the GST returns online and 28 working days for manual submission.

Findings of this survey showed that the average time taken by most companies for a refund is 1-3 months for both online and manual filings. 51% of the respondents attested to this for online filing, and 40% for manual filing.

Refund was prompt for only 8% of the respondents who filed online taking an average time of up to 14 working days; and less than 1 month for the 38% who filed manually. 18% who filed online and 22% who filed manually took an average of >3 months to get a tax refund.

The main issue faced by respondents with their tax refunds was the requirement of additional documents, as claimed by a majority of almost 36%.

23% lamented on the lack of updates on their refunds, while 22% had to undergo a Customs desk review/ audit and 12% faced difficulties contacting the Customs Department.

2018 BUDGET INITIATIVES Several incentives announced in Budget 2018 are relevant to the manufacturing sector.

Of these, most (38%) of the respondents expect to benefit from the accelerated capital (ACA) and automation equipment (AEA) allowances @ 100% AE purchase on the first RM2 million qualifying capital for YA2018-YA2020.

Export promotion programmes, especially the Market Development Grant (MDG), as well as the ACA on ICT equipment and software purchases from YA2017 and development of customised software from YA2018 are expected to benefit 35% and 30% of respondents, respectively.

21% believed the ACA and AEA to adopt Industry 4.0 technology on the first RM10 million qualifying capital for YA2018-YA2020 will be of benefit.

16% are looking forward to the loan guarantee for SMEs under the Skim Jaminan Pembiayaan Perniagaan to automate production processes.

10% are also expecting to benefit from the insurance credit and credit financing facilities for SME exporters through the EXIM Bank.

FEATURE


Table 1 2018 Budget Incentive % is % of Incentive Concerned

Micro Small Medium Large Total

No % No % No % No % No

ACA & AEA on Automation 2 1.3 40 25.3 36 22.8 80 50.6 158 ACA & AEA on Industry 4.0 1 1.1 23 26.1 20 22.7 44 50.0 88 ACA on ICT Equipment 2 1.6 35 27.8 28 22.2 61 48.4 126 Export Promotion include MDG 5 3.4 54 37.0 36 24.7 51 34.9 146 Insurance Credit & Credit Refinancing for SME Exporters 3 7.1 18 42.9 10 23.8 11 26.2 42

Loan Guarantee for SMEs to Automate Production Processes 4 6.0 39 58.2 15 22.4 9 13.4 67

Table 2 INDUSTRY 4.0 TECHNOLOGY % is % of Total Respondents(414)

No. of Respondents (% of total) Using Not Using Intend to Use Unaware

No % No % No % No % Industrial Internet of Things 97 23.8 185 45.5 100 24.6 25 6.1 Cloud Computing 110 27.0 173 42.4 114 27.9 11 2.7 Simulation 68 16.7 251 61.5 58 14.2 31 7.6 Additive Manufacturing 29 7.1 292 71.7 51 12.5 35 8.6 Big Data 43 10.5 229 56.1 101 24.8 35 8.6 Cybersecurity 143 35.0 158 38.6 76 18.6 32 7.8 Vertical & Horizontal System Integration 68 16.7 226 55.7 75 18.5 37 9.1 Augmented Reality 17 4.2 285 70.2 55 13.5 49 12.1 Autonomous Robots 30 7.4 270 66.7 78 19.3 27 6.7

Only 7.4% of respondents used Autonomous Robots to perform complex tasks, to interact with one another and to work safely and learn with humans. 7.1% said they were using Additive Manufacturing technologies to build physical 3Dobjects through the layering of materials such as 3D printing.

Even lower was the use of Augmented Reality i.e. using computer-generated virtual reality to give a live view of a real-world environment with sound, video, graphics, haptics or GPS data. Only 4.2% were using it.

Although 72% of respondents are currently not using Additive Manufacturing, 13% intend to use in future. Presently 70% do not use Augmented Reality, but 14% will likely use later.

Most are planning to use Cloud Computing (28% responses), Big Data (25%) and Industrial Internet of Things (25%) in the near future. 13%-19% intend to use the other technologies in future as well.

Only 3%-12% are not aware of these technologies. Augmented Reality topping the list with 12% unaware, and Cloud Computing the least responses (3%).-------------------------------------------------------The FMM-MIER Business Conditions Index (FMM-MIER BCI) is a collaborative effort between FMM and the Malaysian Institute of Economic Research (MIER). Business condition is the general state of an economy affecting business viability. The FMM-MIER BCI uses the current level of business activity as a proxy for current business conditions, compared to six months ago.

Index values range from 0 to 200 points. A value above the growth-neutral threshold level of 100 points indicates an improvement or positive outlook, while that below the threshold indicates a worsening or negative outlook.

The FMM – MIER Business Conditions Survey 2H2017 received 414 responses, of which 56.2% were SMEs, with 106 and 107 responses from Perak and Klang Valley respectively. The top three industries for responses were: Food, Beverage & Tobacco (14% of respondents); Fabricated Metal (11%) and Chemicals & Chemical Products (10%). All rights reserved Federation of Malaysian Manufacturers (FMM)Wisma FMM, No 3 Persiaran Dagang, PJU 9 Bandar Sri Damansara, 52200 Kuala LumpurTel: 603-62867200 Fax: 603-62741266Website: www.fmm.org.myEnquiries: [email protected]

INDUSTRY 4.0 TECHNOLOGIES

The Boston Consulting Group has identified nine pillars of technological advancement that underpin Industry 4.0. Respondents were asked of the status of adoption and awareness of each of these technologies.

Of these technologies currently in use, Cybersecurity was the most popular. 35% of respondents are using technology to protect their information systems.

This is followed by:

Cloud Computing, with 27% storing and/or accessing data and programmes over the Internet instead of on their computer’s hard drive;

Industrial Internet of Things, with nearly 24% having machines fitted with sensors and interconnected to collect and share data;

Vertical and Horizontal System Integration, used by nearly 17% of respondents to be connected with other companies, suppliers, vendors, customers, etc;

3D Simulation, in use by nearly 17% of respondents for product development and production processes; and

Big Data, i.e. advanced data analysis methods for predictive analytics, user behavior analytics, etc is in use by nearly 11% of respondents.

KEY HIGHLIGHTS OF SPECIAL TOPICS

Debt Collection 46% collected more than 50% of debts within credit period.

Salary Increment 2018 increment to be mainly 1-<5% and 5-<7%, as in 2017.

High Raw Materials Cost RM vis-à-vis USD & cost pass through were main factors.

GST Input Tax Refunds Most receive refunds after 1 – 3 months of filing.

2018 Budget Incentives ACA & AEA on automation, Export promotion programmes and ACA on ICT equipment were most beneficial to members.

Industry 4.0 Technologies Cybersecurity, Cloud Computing & Industrial Internet of Things were the top 3 technologies already in use.


FEATURE

The participants who attended the Seminar on LEAN Production System:Applications and Sharing of Experiences

A total of 100 participants joined thebriefing on FMM-MPC LEAN SystemDevelopment programme onSeptember 7, 2017. The briefingemphasised the importanceand benefits of LEAN system inmanufacturing. Chief Executive Officerof FMM, Dr Yeoh Oon Tean, deliveredthe remarks at the briefing session.In his speech, he reiterated thatLEAN tools are likely to becomemore important as manufacturersare noticeably aware of the needto incorporate some elements ofIndustry 4.0 in the current environment.

Highlights of the sharing sessionfrom the companies were as follows:

• Operations Director, Sensorsand Specialist Components ofBI Technologies Corporation Sdn Bhd,Mohd Podzi Mahmud highlightedthat with knowledge gained fromthe programme, there wereimprovements in waste reduction,cultural change and teamworkamong staff. He also highlighted theimportance of the management’scommitment to ensure success inimplementing LEAN system inthe factory.

• Business Development Manager ofJemco Manufacturing Sdn Bhd,Edwin Yap highlighted that withguidance from the FMM LEANconsultant, the company was ableto merge and simplify the processesof two plants into one plant. Thishad resulted in reduction in rental,improved space savings by 40%,improved output by 30% andoptimised manpower by 40%.He also shared on the challengesfaced in changing the mindset ofthe staff especially those who havebeen working in the family businessfor a long time and getting them tounderstand benefits of LEAN andto accept changes to the system.

• Section Manager, ProductionDepartment of Penfabric Sdn Bhd,Ong Seng Puay highlighted thatthe programme resulted inreduction of cycle time anddowntime by 35% – 43% whileproductivity increased by 30%through work standardisation andline balancing. He also highlightedthe challenges faced in copingwith the manpower constrainand commitment from staff inimplementing the LEAN system.

FMM-MPC Briefing on LEAN SystemDevelopment Programme


• Agricultural Chemicals (M) Sdn Bhd Significant improvements in productivity, output and elimination of wastage in production line which resulted in savings for the company.

• Auto Global Parts Industries Sdn Bhd Achieved greater understanding on LEAN manufacturing, learned how to identify and reduce waste via LEAN tools e.g. Value Stream Mapping, SMED, Just-in-Time, and other useful LEAN tools.

• Elite Stationery (M) Sdn Bhd Output increased by 30% just three months after the project was implemented. Strongly encourage companies to participate in this programme.

• Filtermation (Mfg) Sdn Bhd Change in layout of factory has resulted in less movement of workers, better utilisation of floor space and equipment and quality improvements due to early recognition of defects.

• Kulitkraf Sdn Bhd Increase in efficiency, improvement to process flow and a reduction in waste. Managed to identify non- productive activities and eliminate them.

• Kurz Production (M) Sdn Bhd Achieved 50% reduction in monthly overall downtime and 68% improvements in work standardisation.

• Medical-Latex (DUA) Sdn Bhd Managed to reduce manufacturing costs by 12% in three months.• MJ Manufacturing Industries Sdn Bhd Reduction in wastage, increase in output and efficiency of our equipment.• VSP Technology (M) Sdn Bhd Productivity has increased by 62%. This will immensely help the company meet future

market challenges.• Yeung Chaur Shing Paper Mill Sdn Bhd Within the period of six months, there was a significant improvement in the overall

equipment efficiency by 38% and increase in output by 37% in the areas under study.

Testimonials of companies currently implementing LEAN System

Company Testimonials


FMM, with the support of the MalaysiaProductivity Corporation (MPC)organised the second annual studymission on LEAN Management toNagoya and Tokyo from September 24 –29, 2017. The main objectives of thestudy mission were to provideopportunities for the participants tovisit Japanese companies that excelin LEAN manufacturing and to gaininsights into how they remainedcompetitive despite cost challengessimilar to that faced by Malaysia.

During the study mission, ahands-on workshop on LEAN toolswas conducted by two instructors withover 40 years of experience from ToyotaMotor Corporation. The participantshad the exclusive opportunity to visitfactories, some of which were generallyclosed to group visits, to learn thebest practices of LEAN Manufacturing:

FMM LEAN Study Mission to Nagoya & Tokyo, Japan

Group photograph of the participants of FMM LEAN Study Mission to Japan

• Toyota Motor Corporation – Japan’s andworld’s number one car manufacturer.

• OSG Corporation – a comprehensivecutting tool manufacturer withexcellent factory visual management.

• Mitsubishi Electric Corporation(Nagoya Plant) – company’s principalfacility for automation equipmentproduction, ensuring supplies of keyparts to Mitsubishi Electric’s factoryautomation lines worldwide.

• Daifuku – known as the world’slargest logistics and materialhandling equipment production site,with 11 factories spanning a totalof 1.2 million square meters.

• Yazaki Kako Corporation –manufacturingand machining of injection moulded,plastic products and electrical appliancesand provides ideas on how toimplement continuous improvementusing Karakuri/Creform System.

• KARAKURI Kaizen Fair – annualexhibition to showcase how themanufacturing industry in Japan doescontinuous improvement in the mostcreative way without spending money.

Participants were able to learnKaizen concept to create a productiveenvironment for the staff, the needto incentivise staffs to provide ideasto improve processes or reduce wastage,usage of display board for productionand Jidoka, a system that stop worksimmediately when a problem first occurs.

The study mission was claimable100% under the Human ResourceDevelopment Fund.

For more information on the nextFMM LEAN Study Mission, pleasecontact Jess Chong of the FMMSecretariat at [email protected].

• LEAN Consultant of SynergyAssimilation of KnowledgeResources, Shaharum Ashaari andLEAN Consultant of LEAN VisionEnterprise, Iskandar Zulkarnaen whowere appointed as consultants inthe project presented the challengesfaced by the companies and theimprovements made to theproduction processes e.g. reduced

paperwork, improved work flow andproductivity, better teamwork,reduced overall operation costs andimproved customer satisfaction.

The FMM-MPC LEAN SystemDevelopment Programme is 100%claimable from HRDF. Members maycontact the FMM Secretariat shouldthey need to seek additional details

from any of the participatingcompanies in respect of thebenefits of the LEAN Programmethat have helped them to enhanceand improve the managementof their projects. The Secretariatwill assist to facilitate thecommunication between membersand the senior representatives ofthe relevant companies.

(continued from page 16)

Celebration activitiesFMM Industry 4.0 Conference

October 2018

SME NEWS

FMM in collaboration withSME Corporation Malaysia (SME Corp)organised the 3rd edition of FMMSME Conference on October 31, 2017.The conference themed ‘DevelopingProductive and Innovative SMEstowards Internationalisation andIndustry 4.0’ was graced by Ministerof International Trade and Industry,YB Dato’ Sri Mustapa Mohamedat Menara MITI. The conferencewas attended by more than270 participants.

The conference served as anengagement platform for SMEsto better understand the currentsituation of Malaysia’s economy andthe SME industry. A line of eloquentand high profile panellistsdiscussed and analysed in-depthon the Budget 2018 for SMEs aswell as Industry 4.0.

Participants also had theopportunities to visit booths byeight solution providers that offeredvarious products and services.

YB Dato’ Sri Mustapa Mohamed,in delivering his speech, reiteratedthat Government is committedto promote and accelerate thedevelopment of SMEs. A totalof RM22.2 billion has beenallocated for SME developmentto be implemented by variousMinistries and Agencies. He urgedSMEs to take the incentives andprogrammes by the Governmentto be readied for the fourth industrialrevolution that is changing themanufacturing processes.

The conference featured amongothers, the Chief Executive Officersfrom Karex Industries Sdn Bhd andPensonic Industries Sdn Bhd whoshared their success stories of goingglobal and speakers from MATRADE,Malaysia Productivity Corporation,

SME Corp. Malaysia, Penang SkillsDevelopment Centre (PSDC) andSatake Technologies Sdn Bhd to talkabout capacity building and tradefacilitation support towards

internationalisation. The conferencealso featured a Power Luncheon Talkby Managing Director of ABB MalaysiaSdn Bhd, Jukka Poutanen on the artof digitalisation.

FMM SME Conference 2017:Developing Productive and Innovative SMEstowards Internationalisation and Industry 4.0

From left: Cheang Chin Wooi, Executive Director of LF Beauty Thailand Ltd, Rizal Nainy, Deputy CEOof SME Corp, Tan Sri Dr Lim Wee Chai, then FMM President, Dr Viraj Perera, CEO of PlaTCOMVentures Sdn Bhd, Dato’ Dr Ir Andy Seo, FMM Vice-President during the Town Hall Session

Then FMM President, Tan Sri Dr Lim Wee Chai and Vice President, Dato’ Dr Ir Andy Seovisiting one of the booths


HR/IR CORNER


Workers who lose their employmentin year (2017) are qualified for aninterim benefit in the form of a cashallowance of RM600 per month for amaximum of three months under theInterim Re-Employment PlacementProgramme (IREPP) 2018. Accordingto the Social Security Organisation(Socso) about 50,000 individualsare expected to claim the benefit.The Government has allocatedRM122 million to Socso to implementthis programme as an interimmeasure to assist employees who lose their employment in year 2017.

Under the Employment InsuranceSystem Act 2017(EISA 2017), whichcame into force on 1.1.2018, bothemployers and employees are requiredto contribute 2% respectively to Socso.The main objective of the Act is toassist employees who have lost their

Interim Re-Employment Placement Programme(IREPP) 2018

employment. Assistance is in bothfinancial as well as non–financial forms.The assistance, under the EISA 2017 isonly available to employees who losetheir employment in year 2019 afterhaving paid the required number ofcontribution in 2018.

Objectives of the IREPP is to makeinterim payment to insured personswho have lost their jobs, assist insuredperson participate in IREPP activitiessuch as job carnival and raise theemployability level of workersthrough training. The insured personmust fulfil certain conditions suchas submitting the claim within30 days from the date of loss ofemployment with supportingdocuments. The claimant must beable to work, available to work andactively seeking for work and participatein the placement programmes.

The insured person must satisfy theabove conditions in order to claimthe interim payment of RM600 forthree months. The first payment ofRM600 will be paid within 14 daysof registration and the balance willbe paid within 30 days from thefirst payment. SOCSO can rejectclaims or stop payment if the insuredperson does not fulfil the terms orconditions. Insured persons whoare terminated after 31st December2018 are not eligible to participate inthis programme.

As an interim programme, the IREPPwill end on 31st December 2018 orwhen the RM122 million is depletedwhichever is earlier. Neverthelessinsured person who lose their jobs inDecember 2018 and have made therequired contributions will be eligibleto make their claim under EISA 2017.

Trade Fairs Date Location Target Profiles

FMM Trade Fairs and Trade Missions 2018

MIHAS 2018 April 4 – 7, 2018 MITEC, Kuala Lumpur Halal industryBeauty Eurasia 2018 April 12 – 14, 2018 Istanbul, Turkey Cosmetics & skincareNEPCON China April 24 – 26, 2018 Shanghai, China AutomotiveChinaplas April 24 – 27, 2018 Shanghai, China Plastic & RubberASEANbeauty May 3 – 5, 2018 Bangkok, Thailand Cosmetics & skincarePhilBeauty May 30 – June 1, 2018 Manila, Philippines Cosmetics & skincareProfessional Beauty June 4 – 5, 2018 New Delhi, India Cosmetics & skincareASEAN Sustainable Energy Week June 6 – 9, 2018 Bangkok, Thailand Renewable EnergyPropak Asia June 13 – 16, 2018 Bangkok, Thailand PackagingManufacturing Expo June 21 – 24, 2018 Bangkok, Thailand ManufacturingFine Food New Zealand June 24 – 26, 2018 Auckland, New Zealand Food & BeverageFood Taipei 2018 June 27 – 30, 2018 Taipei, Taiwan Food & Beverage

For more information, please contact Joe Lee at [email protected], Leow Sze Yin at [email protected] orKoh Wee Leng at [email protected]

Trade Missions Date Location Target Profiles

LEAN Study Mission to Indonesia April 23 – 27, 2018 Jakarta, Indonesia Halal industry

Trade Mission to Papua New Guinea April 28 – May 2, 2018 Port Moresby Cosmetics & skincare Papua New Guinea

BRANCH NEWS

Seminar on Duty Exemption, Drawback & Refund on October 25, 2017

Kedah/PerlisThe Branch organised the following:

• FMM Kedah/Perlis Tenpin BowlingTournament on September 23,2017. The networking sportevent was held at Park AvenueBowling Centre and gathered80 participants. The bowling teamfrom Schaefer Kalk (M) Sdn Bhdwas the champion.

• FMM-MODENAS OSH Day & OSHTalk: Prevention of OccupationalDisease on October 3, 2017. TheOSH related CSR event was jointlyconducted with Modenas inGurun, Kedah. The event waslaunched by Assistant Directorof DOSH Kedah, BasharuddinAbd Rahman. More than400 participants attended theevent. Talks on noise prevention,ergonomics guidelines andprevention of occupationaldiseases were conducted at theevent. Free consultation and healthinspection was offered by SOCSO,Audio Lab and Pantai Hospital.

• The Branch 9th AGM was heldon October 9, 2017. The followingOffice Bearers for 2017/2018were elected:

DOSH Kedah OHD, Dr Ahmad Faiz giving talk at FMM-MODENAS OSH Day & OSH Talkon October 3, 2017

Chairman

Dato’ Dr Haminnuddin Abd HamidIdeal Healthcare Sdn Bhd

Vice-Chairmen

Tahiruddin Hamdan Silterra Malaysia Sdn Bhd

Desmond Chong Ryder Tech Sdn Bhd

Aminnuddin SallehMalaysia NPK Fertiliser Sdn Bhd

• Seminar on Duty Exemption,Drawback & Refund on October 25,2017. The Seminar was attendedby 40 participants. Invited speakersfrom MIDA Head Office were DeputyDirector Tariff Section, Siti HajarAhmad Zabidi and IT Departmentofficer, Mohd Muhammad RadzieHashim. Representing CustomsDepartment Kedah were PrincipalAssistant Director Aziz Yusof,Assistant Director Raju A/LSupramaniam and Assistant DirectorMuhammad Asnawi.


Celebration activitiesKedah/Perlis Bowling Tournament

April 2018

BRANCH NEWS


PenangThe Branch organised the following:

• Dialogue session with the RoyalMalaysian Customs Department(RMCD) on August 16, 2017.The Branch was represented byBranch Chairman, Dato’ Dr OoiEng Hock, Vice Chairmen, Dato’Jimmy Ong, Hun Keng Kuan,See Chee Tat and branchcommittee members met withState Director of Customs Penangfrom Royal Malaysian CustomsDepartment (RMCD), Saidi binIsmail, and his team members.

• FMM Penang HR/IR Forum &Clinic Session on September 8,2017 with 29 participants.

HR Advisor of FMM, Heng Poh Suanconducting the HR/IR Forum & Clinic session

on September 8, 2017

• FMM Penang Workshop onWhat Every HR PractitionerShould Know held on October 31,2017 with eight participants.

• FMM Penang Bowling Tournament2017 held on September 30, 2017at Ole Ole SuperBowl, Mydin MallBukit Mertajam. Total of 19 teamsfrom FMM member companiesparticipated in the tournament.

• FMM Penang Workshop onRoad Safety for Our ValuableEmployees was held on October 11,2017. It was a joint collaborationwith Penang State Government& PDRM Pulau Pinang. The workshopwas attended by 68 participants.

• FMM Penang handed overRM350,000.00 to State ReliefFund. FMM Penang led byFMM Penang Branch Chairman,Dato’ Dr Ooi Eng Hock, raisedRM350,000.00 from members andbusiness associates to assist thevictims of recent flood affectingthe Penang State.

• The fund was handover to theState Relief Fund on November 14,2017 and witnessed by theChief Minister of Penang,YAB Lim Guan Eng.

The presentation of mock cheque to the State Relief Fund and witnessed byChief Minister of Penang, YAB Lim Guan Eng on November 14, 2017

Group photograph with winners of the FMM Penang Bowling Tournament 2017 on September 30, 2017

Celebration activitiesPenang Golf Tournament

July/August 2018

PerakThe Branch organised the following:

• Joint training on Fire Preventionand Fire Fighting with BombaPerak on September 19 – 20, 2017and October 4 – 5, 2017 at BalaiBomba Ipoh. The training wasattended by 30 participants from16 companies.

• Workshop on Expand Your MarketThrough Digital Free Trade Zone(DFTZ) faciliated by Director ofMatrade Northen Region, SharifahNazreen Farhana Syed Marzukiand representatives from Alibabaon September 21, 2017

Participants at the Seminar on Understanding Complexities of Witholding Tax Obligations inMalaysia on September 25, 2017

Photography session with Chief Minister of Perak, YAB Zambry bin Abdul Kadir (4th from left)at FMM Perak 49th Annual Dinner on October 16, 2017

• Seminar on UnderstandingComplexities of Witholding TaxObligations in Malaysia onSeptember 25, 2017. Former SeniorAssistant Director of Inland RevenueBoard, Yong Mei Sim facilitated theseminar. The seminar was attended by 55 participants.

• Briefing on Endorsement ofFMM Non-Preferential Certificateof Origin (NPCOs) was held onSeptember 27, 2017 facilitated bythe Branch Assistant Manager, NicoleChoe. The briefing was attended by19 participants.

• The Branch 49th Annual Dinnerwas held on October 16, 2017 atImpiana Hotel. The dinner wasgraced by Chief Minister of Perak,YAB Zambry bin Abdul Kadir.About 70 key personnels fromvarious government departmentsand 303 members attendedthe dinner.

• 49th Annual General Meeting of the Branch was held onOctober 26, 2017 chaired byDato’ Gan Tack Kong. A total of26 ordinary member companiesattended the meeting.

• Seminar on Industry 4.0 onNovember 2, 2017. The seminarwas attended by 37 participantsand presented by representativesfrom CTI Resources Sdn Bhd,Top Glove Corporation Bhd,Malaysian Investment DevelopmentAuthority (MIDA), SME CorpMalaysia and Malaysian IndustrialDevelopment Finance Berhad (MIDF).

• A half-day Awareness Seminaron Energy Efficiency and SolarThermal Application in TheIndustrial Sector was co-organisedby UNIDO and FMM on October 27,2017 at FMM Perak. The seminarwas facilitated by National ProjectManager of UNIDO Dr. Azmi HajiIdris, and Technical Adviser ofUNIDO, Mohd Iskandar Bin Majidi.

• Hands-on Workshop on LatestChanges to Perintah Duti Kastam(PDK) 2017 & e-PCO OnlineApplication on November 7, 2017was facilitated by Certified Trainerfrom Dagang Net, Nor Zakina andattended by eight participants.

• FMM-TNB Committee Meetingheld on November 8, 2017 waschaired by General Manager ofTNB Perak, Abdul Jalil bin Raja Zaidand co-chaired by Director ofStoneworks Technologies Sdn Bhd,Chew Boon Kooi. This meetingdiscussed power interruptionsfaced by members and upgradingsystems by TNB.

BRANCH NEWS


Celebration activitiesStudy Visit to PSDC

April 2018

BRANCH NEWS

SelangorThe Branch organised the following:

• Courtesy visit to the new SelangorChief Police Officer, YDH CP DatukMazlan Mansor on September 5,2017 at Ibu Pejabat Polis KontinjenSelangor, Shah Alam.

• FMM Kuala Langat RegionalBadminton Tournament heldon September 10, 2017 atTM Sports Complex PandamaranKlang with participation often teams. KYB-UMW MalaysiaSdn Bhd was the champion, withsecond and third placing won byAmkor Technology (M) Sdn Bhdand Chemi-con (M) Sdn Bhdrespectively. The best supportiveteam was from Agriasia Sdn Bhd.

• Briefing session on theImplementation of StrategicInitiatives by PembangunanSumber Manusia (PSMB), Utilisingthe 30% Consolidated HumanResources Development Fund(Pool Fund) held on September 12,2017 with 20 participants.

• Co-organised the SelangorInternational Expo 2017 held fromSeptember 14 – 17, 2017 at SetiaCity Convention Centre, Setia Alam.The 4-day expo was declared openby Raja Muda Selangor TengkuAmir Shah Sultan Sharafuddin Idris

Shah at the Setia City ConventionCentre. 26 FMM members companiesparticipated in the expo.

• The Branch Committee attended theSelangor-ASEAN Business Award 2017Gala Dinner held on September 15,2017 at Concorde Hotel Shah Alamwhich saw Michelle Hah, ExecutiveDirector of Fire Fighter IndustrySdn Bhd and Branch Vice-Chairpersonwinning the Successful WomanEntrepreneur Award.

• FMM Selangor Bowling Challenge2017 held on October 7, 2017at U-Bowl Centre at One UtamaPetaling Jaya with 35 teams. TelekomSelangor A emerged as champion,followed by Telekom Selangor B andGS Paperboard & Packaging Sdn Bhd.

• Courtesy visit to the President ofManagement & Science University(MSU), Professor Tan Sri Dato’ Wira Dr Mohd Shukri Ab Yajid onOctober 24, 2017.

• FMM Hulu Langat & Kuala LangatRegional Committees visited theSungai Langat Water Treatment Plantand Langat Dam on October 26, 2017with 31 participants from 21 companies.

• Industry Sharing on Foreign Worker’sLiability to Pay Income Tax held onOctober 26, 2017 with 64 participantspresented by Company Advisor of

May-Plastics Manufacturers Sdn Bhd,Leong Peng Kong who is also theChairman of FMM Selayang RegionalCommittee & the Committeemember of FMM HRM Committee.

• Then FMM President, Tan Sri Dr LimWee Chai’s courtesy call to theBranch on November 3, 2017.

• The Branch 31st AGM was held onNovember 9, 2017 and the followingwere elected at the first meeting ofthe FMM Selangor Branch Committee:

ChairmanJacob Lee Chor Kok Asli Mechanical Sdn Bhd

Immediate Past ChairmanDato’ Soh Thian LaiYKGI Holding Berhad

Vice-ChairmenDato’ Nathan K SuppiahISUS JVC Industries Sdn Bhd

Abdul Samad IbrahimKulitkraf Sdn Berhad

Colonel Dato’ Goh Boon KimTaik Sin Timber Industry Sdn Bhd

Michelle Hah Mei KianFire Fighter Industry Sdn Bhd.


Group photograph of FMM Selangor Branch Committee 2017/2018 & 2018/2019 on November 9, 2017

Celebration activitiesFMM Selangor Nite’ 2018

May 10, 2018

Negeri SembilanThe Branch organised the following:

• Seminar on Food Handling andthe Fundamentals of HALAL onSeptember 7, 2017 conductedby an associate trainer of FMM,Khairol Anuar Bin Masuanwith ten participants frommember companies.

• The Branch’s CEOs NetworkingHi-Tea and business talk onEconomic Outlook by ExecutiveDirector of the Malaysian Instituteof Economic Research (MIER),Emeritus Professor Dr ZakariahAbdul Rashid on September 7,2017 with 20 participants.

• The Branch held its 18th AGMon September 14, 2017 and thefollowing Office Bearers wereelected for 2017/2018 & 2018/2019:

ChairmanSteven ArokiSmane (M) Sdn Bhd

Vice-ChairmenBaskaran Madhavan NairCordage Industrial Rope Sdn Bhd

Radzi Abdul RashidAkzo Nobel Paints (M) Sdn Bhd

Dorcas TeohUB Acrylic (M) Sdn Bhd

Penny WongWtech Holdings Sdn Bhd

• FMM NS OSH Conference 2017 onOctober 10 – 11, 2017 officiatedby Negeri Sembilan State CouncilMember, YB Dato’ ManickamLetchuman with 35 participants.

• Futsal Tournament jointlyorganised by Negeri SembilanSkill Development Centre (NSSDC)and FMM NS on October 14, 2017with 20 teams. The winners wereCeramtec Innovative CeramicEngineering (M) Sdn Bhd, 2nd placewas won by Safran Landing SystemsMalaysia Sdn Bhd and 3rd placewent to Kualiti Alam Sdn Bhd.

• Dialogue session between MajlisPerbandaran Seremban (MPS),Negeri Sembilan Investment Centre

Group photograph of FMM Negeri Sembilan Branch Committee Members on September 14, 2017

Winners of the FMM NS S.H.E Excellence Award 2016/2017 with Menteri Besar of Negeri Sembilan, YAB Dato’ Seri Utama Hj Mohamad bin Hasan (5th from right) at the Annual Dinner on October 25, 2017

(NSIC), MIDA, FMM and industries onOctober 13, 2017. The session wasattended by 100 participants and amongthe issues raised were waste collection,landscape and poor road conditions atGalla Industrial Park Seremban.

• Courtesy call to General Managerof Tenaga Nasional Berhad (TNB)Negeri Sembilan, Wan Ishak Bin Soedon October 13, 2017. The Branch’sdelegation was led by its BranchChairman, Steven Aroki.

• The Branch Annual Dinner washeld on October 25, 2017 and wasattended by over 350 representativesfrom public and private sector.The dinner was graced by theMenteri Besar of Negeri Sembilan,YAB Dato’ Seri Utama Hj Mohamadbin Hasan. The highlight of thedinner was the presentation of theFMM NS S.H.E Excellence Awardand top FMM Institute contributors.


Celebration activitiesCEO Networking Hi-Tea

October 2018

BRANCH NEWS

MalaccaThe Branch organised the following:

• The Branch 43rd Annual GeneralMeeting was held on October 10,2017. The following Office Bearersfor 2017/2018 were elected:

ChairmanDatuk Jeffery OngOriental Food Industries Sdn Bhd

EasternThe Branch organised the following:

• The Branch held its 23rd AnnualGeneral Meeting on October 26,2017 and the following were theOffice Bearers for 2017/2018 and2018/2019:

ChairmanDato’ Haji Lahuree bin SudiranW. R. Grace Specialty Chemicals(Malaysia) Sdn Bhd

Vice-ChairmenAzli bin Haji NoraliBI Technologies Corporation Sdn Bhd

Ng Ghim EngNice Rika Biotechnologies Sdn Bhd

Kumar Ramu Huntsman Pigments and AdditivesAsia Sdn Bhd

Dr Marwani Hirmi binti MudaLynas Malaysia Sdn Bhd

Vice-ChairmenJimmy OngSan Miguel Yamamura Woven Sdn Bhd

Yeo Cheng PorImpressive Edge Sdn Bhd

• Training on Free Trade Agreement andSection 99, Customs Act 1967 – AnotherWay to Overcome Difficulties inObtaining MIDA Tax Exemption UnderSection 14.2 on October 16, 2017.

• Visit to Assembly Services Sdn Bhdon October 26, 2017. Participantswere briefed on their humanresources development programmes,safety practices at workplaceand comprehensive qualitycontrol methods that are inculcatedinto their workforce to ensurethe quality of their products arenot compromised.


Participants of the visit to Assembly Services Sdn Bhd on October 26, 2017

Expand Your Productsto Global Markets

Through FMM Directoryof Malaysian Industries

Call 03-62867200 orVisit us at www.fmm.org.my

Celebration activitiesEastern Branch Annual Dinner

May 2018

Group photograph of branch delegation at Manufacturing Solutions Expo 2017 on October 25, 2017

JohorThe Branch organised the following:

• On September 12, 2017,Ambassador of the CzechRepublic, His Excellency RudolfHykl, was invited to briefmembers on the investmentopportunities and economicprofile of the Czech Republic.

• Seminar on Understanding theTechnique of Classification andUpdates on the New CustomsHarmonized System (HS) Codes2017 on September 13 – 14,2017. The two-day seminar wasattended by 75 participants andfacilitated by the Senior Officialsfrom Royal Malaysian CustomsDepartment (RMCD), Putrajaya.

• FMM CSR visit to PertubuhanPerkhidmatan Intervensi Awal(PPIA) Batu Pahat, Johor onSeptember 27, 2017. PPIA isa non-profit and charitableorganisation, serving childrenand youths with intellectualchallenges in and aroundarea of Batu Pahat. Membersparticipated the visit contributedcash amounting RM5,080.00and gifts-in-kind to PPIA.

• FMM Seminar on Understandingthe Employee Taxation: MitigatingWrongful on Tax Reporting onOctober 9, 2017 held at Thistle Hotel,Johor Bahru. The seminar wasattended by 69 participants andfacilitated by former PrincipalAssistant Director of Inland RevenueBoard of Malaysia, Yong Mei Sim.

• The branch in collaboration withJohor State Investment Centre(JSIC) organised a special BusinessNetworking Session with Chairmanof Tourism, Domestic Trade and

Consumerism of Johor, YB DatukTee Siew Kiong on October 11, 2017with 42 participants.

• Business Networking Visit toManufacturing Solutions Expo 2017at Singapore EXPO on October 25,2017. The branch delegationwas led by Branch Chairman,Capt (R) Haji Abdullah Shariffwith 39 participants. The programmeenabled members to learn oninnovative manufacturing solutionsand the opportunity to widenbusiness contacts.


FMM members actively exchanged views and name card during the networking sessionon October 11, 2017

Celebration activitiesBlood Donation Campaign

July 2018

SarawakThe Branch organised the following:

• The Branch held its Second AnnualGeneral Meeting on October 23,2017. Members were updated onthe branch activities and issuesaffecting members in Sarawakwere discussed.

• Briefing on MIDF GovernmentFinancial Assistance Programmewas held on October 10, 2017.The half-day programme wasfacilitated by the Malaysia IndustrialDevelopment Finance Berhad(MIDF) Sarawak Assistant Vice-President, Mohd Suffian Bolhassan.

• Briefing on Essentials ofthe Sarawak Labour Ordinance(Sarawak Cap. 76) Part 1 washeld on November 15, 2017.The one-day programme wasfacilitated by Assistant Directorof Sarawak Labour Department,Ismail Bin Mohammad.

• Training on OccupationalFirst Aid and CardiopulmonaryResuscitation (CPR) Programmeon November 11 – 12, 2017. It wasattended by 26 participants andfacilitated by Syamsul Kamal.


AGM Meeting on October 23, 2017

Group photograph of participants of Occupational First Aid andCardiopulmonary Resuscitation (CPR) Programme on November 11 – 12, 2017

Effective Supervisory Skills training conducted by Irene Choong on October 24 – 25, 2017

BRANCH NEWSCelebration activities

FMM Sarawak RunSeptember 2018

NEW MEMBERS


FMM welcomes 116 new members, comprising 95 Ordinary Members and 21 Affiliate Membersthat joined FMM from September 2017 to January 2018

• Accurativ (M) Sdn Bhd

• Antico Stone Sdn Bhd

• Arrow Components (M) Sdn Bhd

• BAFCO Asia Sdn Bhd

• Best Ninety Nine Enterprise

• Bio-Nutricia Manufacturing Sdn Bhd

• Boxter Global Sdn Bhd

• Bulk and Fluids Engineering Sdn Bhd

• Century Minerals Sdn Bhd

• Cheung Woh Technologies (Malaysia) Sdn Bhd

• Cosmo Synergy Sdn Bhd

• Custech Machinery Sdn Bhd

• Delta Sama Jaya Sdn Bhd

• Dermypack Plastic (M) Sdn Bhd

• DJ Auto Components Manufacturing Sdn Bhd

• Drive System Engineering Sdn Bhd

• Eco Valves & Fittings Sdn Bhd

• ECSpec Marketing Sdn Bhd

• EKA Global Sdn Bhd

• Elegance Global Trading Sdn Bhd

• Eonmetall Systems Sdn Bhd

• Excelvisions Medicals Sdn Bhd

• Fajar Cables Sdn Bhd

• Federal Furniture (1982) Sdn Bhd

• FEPA Sdn Bhd

• Flytech Engineering Sdn Bhd

• Great Eco Glove Sdn Bhd

• Green Panel Products (M) Sdn Bhd

• GS Paperboard & Packaging Sdn Bhd

• Hiwonder Sdn Bhd

• HKY Unirise Engineering Sdn Bhd

• IRC Automation (M) Sdn Bhd

• Itahome Sdn Bhd

• JL Food Industries Sdn Bhd

• JT International Trading Sdn Bhd

• Kewcast Industries Sdn Bhd

• Khai Seng Packaging Industries Sdn Bhd

• KJ Can (Johore) Sdn Bhd

• Kossan Latex Industries (M) Sdn Bhd

• KQY Masterpiece (Malaysia) Sdn Bhd

• Kueen Sing Auto (M) Sdn Bhd

• Laird Technologies (M) Sdn Bhd

• Lenhon Kilang Kopi Sdn Bhd

• LeveragEdge Sdn Bhd

• Lubetech Sdn Bhd

• Mariwealth Engineering & Consultancy Sdn Bhd

• Mesh Hi-Tech (Malaysia) Sdn Bhd

• Multi Graded Industries Sdn Bhd

• Natural Wellness Industries Sdn Bhd

• Nature Care Wholefood Sdn Bhd

• Netpoint Coating Sdn Bhd

• Nichias FGS Sdn Bhd

• Nissho Precision (Malaysia) Sdn Bhd

• Norwards Industries Sdn Bhd

• OE Unity Sdn Bhd

• Pacifica Power Sdn Bhd

Ordinary Members

NEW MEMBERS


• Pak Keong Food Industries Sdn Bhd

• Panwater Engineering Sdn Bhd

• Papparoti (M) Sdn Bhd

• Perak River Sand Sdn Bhd

• Platinium Marine Products Sdn Bhd

• Plaxtron Industrial (M) Sdn Bhd

• Poly-Max Sdn Bhd

• Polyscientific Enterprise Sdn Bhd

• Posco-Malaysia Sdn Bhd

• Power Steel and Electro-Plating Works Sdn Bhd

• PTS Industries Sdn Bhd

• QPP Ear Piercing Sdn Bhd

• Quality Coils Industries Sdn Bhd

• Rensoon Sdn Bhd

• Rovski Sdn Bhd

• Sandisk Storage Malaysia Sdn Bhd

• Sanrix Paper Sdn Bhd

• Schmaco Auto Parts Industries Sdn Bhd

• Seownox Sdn Bhd

• Sing Lian Heng Fishery

• Sleep Factory Sdn Bhd

• Spurs Industries (M) Sdn Bhd

• Sumbertech Ventures Sdn Bhd

• Superbest Power Health Food & Beverages Sdn Bhd

• SWJ Air-Con Sdn Bhd

• Taiko Clay Marketing Sdn Bhd

• Tamasek Group Sdn Bhd

• Tera Va Sdn Bhd

• Tohken (M) Sdn Bhd

• Twinkle Sweet Foodstuff Industries Sdn Bhd

• Upper Odyssey Technology Sdn Bhd

• Uropolymers (Malaysia) Sdn Bhd

• Waterotec (M) Sdn Bhd

• Watterson Technology Sdn Bhd

• Webbing MK Sdn Bhd

• Windmill Food Industries Sdn Bhd

• Y.S.P. Industries (M) Sdn Bhd

• Yong Mei Foodstuffs Manufacturing (M) Sdn Bhd

• Zantat Sdn Bhd

Ordinary Members (continued)

• Advantage Marine Services (Malaysia) Sdn Bhd

• Archi Panel Sdn Bhd

• Chan Soon Transport & Trading Sdn Bhd

• CRRC Kuala Lumpur Maintenance Sdn Bhd

• ECnet (M) Sdn Bhd

• Elledi (M) Sdn Bhd

• Encompass Industries Sdn Bhd

• FCA Services Support Malaysia Sdn Bhd

• Forefront Logistics Sdn Bhd

• Home Retreat Sdn Bhd

• Icon Trans Sdn Bhd

• Identi3 (M) Sdn Bhd

• KMSA Trading Sdn Bhd

• MGS Shipping & Fowarding Sdn Bhd

• MHE-Demag Logistics Malaysia Sdn Bhd

• Nora S W Lam & Associates

• Sage Software Sdn Bhd

• Solar Sunyield Sdn Bhd

• Vanqo Sdn Bhd

• YNY Technology Sdn Bhd

• Zenxin Agri-Organic Food Sdn Bhd

Affiliate Members

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