Fourth Quarter 2007 KDN: PP15077/5/2008 Volume 1

www.mrepc.com

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Minister Leads Mission on Rubber,Palm Oil and Pepper to Hungary,Czech Republic and Germany

Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui, with the Malaysian delegation to Hungary, Czech Republic and Germany

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From the ceo’s desk

We would like to wish all our readers Happy New Year! 2008 is full of promise and

at the same time challenges. We have drawn up an exciting programme for the year and we hope more of you will join us in the activities we are organizing for 2008. We hope you will take advantage of the New Incentives Package launched in mid-2007 to venture out to previously untapped markets.

rising cost of energy. The government has alerted us that it is very difficult to sustain the huge subsidy it has to pay out every year. We need to prepare for the eventuality that the subsidy will be reduced. Gas prices will go up – it’s only a matter of when and by how much. Rubber manufacturers must find ways to further increase efficiency in energy utilization and also seriously explore alternative sources of energy from now if the sector hopes to remain competitive. Let us keep our fingers crossed that any increase in price will be gradual and at levels that will allow the industry sufficient time to adjust!

Editor-in-Chief:Dato’ teo Suat cheng

Editor:Dr Lim chong Lian

For comments, enquiries andadvertisements, please contact:the editor,mrePc,Block 2a, Level 13a-1, Plaza Sentral,Jalan Stesen Sentral 5,50�70 Kuala Lumpur, malaysia.tel: 603-27805888 Fax: 603-27805088e-mail: cllim@mrepc.comWebsite: www.mrepc.com

Printed by:Kum Printers Sdn BhdLot 9, Jalan 51a/2�3, Petaling Jaya�6100 Selangor, malaysia.

The contents of this publication are copyrights of MREPC, unless otherwise indicated, and no part may be reproduced or transmitted in any form or by any means, without the prior written permission from MREPC.

CEO of MREPC Dato’ Teo Suat Cheng

Many of you have participated in our programmes for 2007, be it Missions, trade shows or seminars/workshops at our office. We will continue to organize the series of training sessions under “A Morning with MREPC” in our premises as the response has been overwhelming. We will be including several new topics – so keep a look out for the announcements.

This last year, we have got to know more of you and in the process, understood more of your needs and constraints. We hope to address these as we go along and structure our activities to better serve your needs. We welcome feedback from all of you.

One final point before I end. In 2008, one of the biggest challenges we will have to grapple with would be the

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Promotional and Technical Mission on Rubber, Palm Oil and Pepper to Hungary, Czech Republic and Germany (17-28 October 2007)

market missions/trade Fairs

MREPC organized a rubber mission to Hungary and Czech Republic, together with a visit to K-Fair 2007, Germany, from 17 to 28 October 2007. The mission was led by the Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui.

The delegation of 38 members comprised representatives from the Ministry, MREPC, Malaysian Rubber Board, Malaysian Palm Oil Council, Malaysian Palm Oil Board, Malaysian Pepper Board, and the private sector. For the rubber sector, the following companies took part: Mardec Berhad, Top Glove Corporation Berhad, Cape Technology Sdn. Bhd., Wei Fong Industries Sdn. Bhd., Kinta Rubber Works Sdn. Bhd., Oriem Technology Sdn. Bhd. and Scalek Polymer Industries Sdn. Bhd.

The objective of the mission was to explore the market potential of both Hungary and Czech Republic and to make useful contacts with the relevant business community, viz., chambers of commerce, ministries, rubber associations, etc. The highlight of the mission programme included seminars, business-matching meetings, a factory visit and press conferences by the Minister in both Hungary and Czech Republic.

In his speech, the Minister emphasized the importance of forming strategic partnerships between Malaysia and the countries visited. Malaysia wishes to supply its quality rubber products directly to these countries without their need to purchase from a third party. The Minister also stressed that Malaysia is keen to supply its automotive rubber parts to Tier 1 & 2 companies and to promote SMGs (Standard Malaysian Gloves) to both countries. At the same time, Hungarian and Czech companies are welcome to set up their manufacturing bases in Malaysia to tap on the vast ASEAN market and to lower production costs.

In Hungary, Mr. Varadi of The Association of Hungarian Rubber Industry (MAGUSZ) said that Malaysian companies should start supplying some of its products to the more established “logistic centres” in the country which have a wide network across Hungary and the EU, in order to make inroads into their market. In addition, he mentioned that MAGUSZ could be a conduit to link Malaysian companies to some of their existing members. Malaysian companies were also requested to look into setting up warehouses in Hungary to meet smaller orders and to improve on their services.

At the seminar in the Czech Republic, Mr. Koracek of the Chamber of Commerce stated that Malaysian companies needed to create more awareness among the Czech business community. Currently, the Chamber has about 15,000 registered members and is looking forward to reciprocate our visit. On ways to improve trade between Malaysia and the Czech Republic, Mr. Korecek said Malaysian products must be of good quality and be reasonably priced in order to compete successfully. Malaysian companies are also welcome to set up joint ventures with Czech companies.

Keynote addresses by the Minister in Prague and Budapest

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Seminars

Two seminars were held: one in Budapest and the other in Prague. MREPC invited Mr. J. Varadi of the Association of the Hungarian Rubber Industry (MAGUSZ) to speak in Budapest, while Mr. Koracek of the Chamber of Commerce, Czech Republic, and Mr. Vojtech Ludvik of MITAS (a Czech tyre company) gave their presentations in Prague.

Dato’ Dr. Ong Eng Long, Deputy CEO of MREPC, Mr. Krishnasamy, Director of Marketing for MREPC, Dr. Andrew Tinker, Director of TARRC (Tun Abdul Razak Research Centre), and representatives of private companies also presented papers.

Factory Visit

The rubber delegation visited the Skoda manufacturing plant in Prague. Skoda is the national car manufacturer of the Czech Republic. The delegation witnessed how various components were assembled to form the final product.

Keynote addresses by the Minister in Prague and Budapest

Mr. Vojtech Ludvik of MITAS (Czech Republic)

Mr. Varadi of MAGUSZ (Hungary)

Participants at the seminar and business matching in Prague Question and Answer session

Skoda’s Showroom

Unique design car at the showroomSkoda manufacturing plant in Prague

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K-Fair 2007 (24-31 October 2007)

The K-Fair is the biggest international trade fair for plastics and rubber in Europe. It is held once every three years in Düsseldorf, Germany, for raw material producers, plastics and rubber processing companies and machinery manufacturers. K-Fair 2007 attracted a total of 3,130 exhibitors with almost 242,000 trade visitors from over 100 countries.

The Malaysian Pavilion was located at Hall 7.2 with 15 Malaysian exhibitors under the coordination of MATRADE. MREPC and seven rubber products manufacturers, viz., Wellcall, Pong Codan, Kumpulan Jebco, Seasons Fast Rubber, NSR Rubber, San Teh Rubber, and MALCORP, participated at the show. The remainder were from the plastics sector. Besides visiting the Malaysian Pavilion, the Minister also took the opportunity to visit some of the multi-national companies (MNCs) at the fair, such as Strucktol, Schill and Seilacher, Leistritz Extrusionstechnick GmbH and Theysohn Extrusionstechnick GmbH.

There was strong interest for Malaysian-made rubber products such as rubber hoses, moulded rubber parts, rubber extrusion profiles, general rubber goods and rubber automotive components. K-Fair represents a strong platform for Malaysian rubber and rubber products manufacturers to increase their export market, particularly to the European and Middle East countries.

The Minister at a MNC booth

Visitors at the MREPC booth

Malaysian rubber product manufacturers displaying their products at the Malaysian Pavilion

Staff changes at MREPC

Mr. Adnan Abdullah has joined MREPC

as Director, Marketing and Development

Division, on 11 October 2007. The previous

Director of the Division, Mr. Krishnasamy

Raman, now heads the Industry Relations

and Public Affairs Division.

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trade exhibitions and market missions 2008

MREPC’s Trade Exhibitions and Market Mission programme for 2008is as follow:

A. MARKETMISSION

Malaysian Rubber Product Marketing Mission to Australia (18- 26 February, 2008)- Rubber auto parts and other dry rubber products

• As an incentive to encourage participation, MREPC will absorb 50% of the hotel accommodation cost subject to a maximum of RM500 per day for one company representative (SBIM3).

B. TRADEEXHIBITIONS

Latex Sector: 1. China International Medical Equipment Fair (CMEF) - Shenzen, China, 19-22 April 20082. Hospitalar - Sao Paolo, Brazil, 10-13 June 2008 3. Venus - Berlin, Germany, 16-19 October 20084. Arab Health – Dubai, January 2009

Dry Rubber Sector:

1. International Auto Aftermarket Expo - Tokyo, Japan, 12-14 March 2008 2. Reifen - Essen, Germany, 19-23 May 20083. Istanbul Rubber - Turkey, (Dates to be confirmed)

• Companies participating under MREPC’s umbrella in the above shows are provided attractive incentives to cover the booth costs (SBIM1). And, especially for a first time participant, MREPC will absorb 99% of the booth cost plus the cost of an economy class air fare ticket for one company representative.

C. SPONSOREDTRADEEXHIBITIONS

The following are “sponsored” trade exhibitions. MREPC will coordinate participation of industry members at these shows. MREPC itself may not necessarily participate.

1. Interzum - Guangzhou, China, 27-30 March 20082. HospiMedica - Sydney, Australia, 13-15 May 20083. Automechanika - Frankfurt, Germany, 16-21 September 20084. Interstoff - Hong Kong, 8-10 October 2008

• Similar incentives as those provided under (B) above are available to participants.

D. WORKINGVISITS - Seismic Bearing, Chile & Peru (To be confirmed) - 2 other working visits (To be confirmed)

• A similar incentive as that provided under (A) above is available to participants.

E. PROMOTIONALBOOTHS

MEDICA - Düsseldorf, Germany, 19-22 November 2008

• MREPC will take up a promotional booth. Companies participatingontheirown in this show can make a claim of 50% of the booth cost up to a maximum of RM5000.

NOTE:Companies are encouraged to register their interest to participate in the above activities as soon as possible. Selection will be on a first-come-first-served basis. A detailed explanation on MREPC’s incentives (SBIM1 – SBIM5) is available at our website, www.mrepc.com. Companies seeking further clarification can contact:Ms. Low Yoke Kiew: - lykiew@mrepc.com at tel. no. 03-27805888 (ext. 127)Mr. Chin Wei Leong - chin@mrepc.com at tel. no. 03-27805888 (ext. 128)

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rubber Product trade Statistics

Major destinations of Malaysia’s Rubber Product Exports (RM’000)

Country Jan-Sept2006 Jan-Sept2007 %Change %Share(2007)

USA 1,929,748 1,899,483 -1.6 24.4

EU-27 1,913,604 2,478,524 29.5 31.9

ASEAN 666,903 702,831 5.4 9.0

Japan 441,698 426,163 -3.5 5.5

Hong Kong, S.A.R. 279,636 294,707 5.4 3.8

Australia 230,188 242,822 5.5 3.1

China, P.R. 183,104 184,764 0.9 2.4

Brazil 174,094 192,330 10.5 2.5

Canada 129,207 129,236 0.0 1.7

South Korea 93,277 99,640 6.8 1.3

Taiwan 81,042 72,282 -10.8 0.9

Subtotal 6,122,501 6,722,782 9.8 86.4

WorldTotal 6,932,430 7,780,878 12.2 100

Source: Department of Statistics, Malaysia

Malaysia’s Exports/Imports of Rubber Products (RM’000)

Exports Imports

2006 2007 2006 2007

January 663,434 828,886 170,935 201,106

February 611,981 722,152 169,211 152,080

March 798,408 933,714 202,757 212,695

April 750,784 817,841 179,283 207,134

May 769,406 834,129 213,281 210,321

June 806,666 865,875 200,663 213,096July 817,837 857,174 223,601 230,950

August 856,768 1,031,679 218,496 223,140

September 857,146 889,429 218,195 215,486

January-September 6,932,430 7,780,878 1,796,422 1,867,847

%Change(January-September)07/06

12.2 4.0

Source: Department of Statistics, Malaysia

interview with the chairman of mrePc

Q. Tan Sri, your public profile, contributions and achievements have been extensively documented. Perhaps you could give us some insight into your early life, your education and your guiding philosophy?

A. I come from a rural background, and my parents were rubber tappers. By today’s definition, we were the poorest among the Malay poor families. We went through the hardship of the Japanese occupation, where everything was scarce – food, medicine, and so on. Our main meal comprised tapioca once a day. My father passed away during that period, and being the eldest of 4 siblings, I worked as a forest labourer at the age of 15, while my mother washed clothes for others. I also suffered from malaria and typhoid.

In 1945, I sat for my School Certificate examination, and the results came out three months after my mother

Interview with TanSriDatukArshadbinAyubChairman,Board of Trustees,MREPC - Public servantextraordinaire,educational visionary,corporate player.

Tan Sir Datuk Arshad bin Ayub was born in Muar, Johor, in 1928 and is married to Puan Sri Zaleha bt. Mohd. Arshad. They are the proud parents of seven children and, currently, have twenty-four grandchildren.

Tan Sri Arshad’s extensive and varied educational background has enabled him to hold myriad public positions of great responsibility and contribute to nation building in Malaysia. This included his early assignment with RIDA (Rural and Industrial Development Authority) to distinguished positions such as the first Director of the MARA Institute of Technology (now the Universiti Teknologi MARA), and Secretary-General of the Ministry of Primary Industries, Ministry of Agriculture, and Ministry of Land and Regional Development.

Tan Sri Arshad has been and still is Chairman, Governor and member of various national and state educational institutions of higher learning, public bodies, co-operatives, and trade associations. He also holds directorships in close to two dozen public and private companies.

passed away in December that year. How I wished my mother was there. I then became a normal-trained teacher for three months. In my testimonial, my headmaster then, Lieutenant-Colonel C. A. Scott, wrote: “Despite his poverty, ill-health, and family bereavement, Arshad never lost sight of his ambition.” I did not know what my ambition then was, but knew that I have to work hard to fulfil my ambition, to be somebody.

The guiding philosophy is this: In life, nobody owes you a living. You have to make it on your own. And that has been my philosophy. Being the eldest, I have done well by today’s standard, but my siblings are not as fortunate. But, they are successful as teachers and clerks. You have to work very hard.

I was very fortunate as a civil servant. Not many in the civil service group had the opportunity to undergo the

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training and vocation that I had. I went to the Serdang Agricultural College for a diploma in agriculture, where the emphasis was on husbandry and nursery. The process of growing a plant involves selecting the best of the seeds, planting and nurturing the plant. In other words, it breeds patience, and this is another facet of my philosophy of life. Everything requires time and patience. Then I took a degree in Economics and Statistics in the University of Wales at Aberystwyth, and was later at IMEDE, now IMD, in Switzerland for a year.

The other thing to remember is never to miss your chance. I was given a second chance. I went to Singapore from 1949 to1951. I studied English, History and Economics, but did not do well because of my inadequacy in English. I did not read enough. People should read more. I came across something very interesting, which runs like this: “People who are in power or who are very busy have little time to read”. But, the corollary to this raises eyebrows: “Those who do not read should not be in power.”

Q. So, are you still reading extensively now?

A. Yes, I am trying to read as much as I can. My advice to students has always been that knowledge is power, and when they leave college, they must continue to read, and read, and read. And they must speak, read and write. That is the basis of the English language. I know of some people who read a lot, but they do not speak nor write. So others do not know of the knowledge these people have, and it is a loss to the community and the nation. I always advise students during graduations that they need to communicate and these involve reading, speaking and writing.

Q. The fact that you were the first Director of the Mara Institute of Technology (ITM) is well known. Would you care to refresh us on some of the highlights of your tenure, and changes that you implemented there?

A. When I was appointed director of ITM, I already had a fair amount of experience and knowledge. I tried to ask what the needs of the country were, in order to tailor ITM’s preparation of Malays for the industrial sector. To me then, there were 3 important concepts or demands of the industry: First, personnel must be professionals or sub-professionals with the appropriate technical knowledge. Second, they must be able to communicate effectively. I noted that the language of business was in English, and I stressed upon the importance of proficiency in English, even when we

were emphasizing on the use of the National Language. Third, what were the types of qualifications expected? I resolved that the qualifications should be those of professional or of international standing. For example, when the British Institute of Management discontinued conducting the examinations, we arranged for the Ealing Technical College to continue with the Diploma of Business Studies. So, as you can see, even from the early days, we were concentrating and focusing on international professional qualifications. I introduced Mandarin, Tamil, Japanese, French, German and Russian at ITM.

To me, if you wish to be a successful entrepreneur, you must have specialized and focused expertise of the business you are in. This, I am afraid, is what the current youths lack. I attribute this to the government not providing adequately short-term technical knowledge for entrepreneurs, to develop what some people call techno-entrepreneurs. There should be schools or colleges, do not call them universities, to provide some of this training.

Q. When you introduced English as the medium of instruction at ITM, was there any resistance?

A. No, there was no resistance. But the public was worried, especially those people who wanted the National Language as the medium of instruction at ITM. But I stuck with it, and I believe I have been vindicated.

Q. Would you tell us some of the controversies during your tenure, if any?

A. Controversies there were; not with the principles, but perhaps with the manner of implementation. But in the end, they appreciated the outcome. I termed this a “second chance.” The students were considered to be second best - I knew the reason was because of their rural background, like mine. While I might have appeared stern in respect of their misdemeanours, they were also aware of my compassionate and sympathetic side. The students were given a lot of freedom, but there was no compromise as far as their studies were concerned. They had to work hard.

Q. You are the Chairman of the Board of Directors of Universiti Malaya. What are your priorities regarding this important assignment entrusted upon you, especially now that the government talks about creating apex universities?

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A university has basically three functions: to serve the students, the staff and the community, including the government. We should know who our stakeholders are and what sort of university we wish to be. The government has classified universities into research universities, apex universities, and so on. This is in principle a good idea. We need to consider whether we are utilising our resources optimally. Universiti Malaya has been classified as a research university, hence we have to carry out research, and have to provide the necessary resources in order to achieve our mission and vision.

The nature of our country is that there are inadequate resources to bring in more foreign faculty and more foreign students, as our policy is to provide more opportunities to our own people. In the final analysis and looking at the global vision, we must ensure our graduates to be employable. In today’s context, being a graduate alone is insufficient; you must be a professional, a point I repeatedly emphasize. You need to augment your degree with a professional qualification. This is the accepted global qualification.

Q. So, what sort of time frame are you talking about for UM to strive to get back into the top 200, and further into the top 100?

A. Not more than 5 years to get back into the top 200. A decade after that we should be able to get back into the top 100. It is good for us to set a certain benchmark and work towards the objective. The world today sets standards, and we must strive to be over and above the minimum standard.

Q. Let me switch to something on a more personal note. Would you tell us something about your family?

A. When it comes to my work, my wife is very supportive, and does not interfere in any way with my duties. My concept is that I am the provider, and should be left to pursue my undertakings. I do not take any credit at all for the education of my children, except perhaps they might have looked at their father as a role model, and I provided adequately for their education.

Q. Did you provide guidance in their choice of educational pursuit?

A. No, I never provided the guidance; they never asked me. I hope they made the right decisions, and I do think they made the right decisions. As I mentioned, my wife

does not interfere with my work, but provides great emotional and moral support to me. At this stage, my aim in life is to provide enough savings for my grandchildren, all twenty-four of them, and possibly more. Zaleha gets all the credit for my children’s education. All the seven reached university-level education.

Q. While the children were growing up, did your family resent that so much of your time was spent in the service of the nation?

A. My wife understood my dedication to the nation and I know she shouldered the burden. She provided all the support the family needed. She worked for only two years. Perhaps, she may have a tinge of regret in the sense that she might have wished to have pursued her own education further. Not many are aware that, at the age of 60, she obtained a diploma in porcelain painting, and is now active in this field imparting her knowledge. If you ask my children, I guess they would say I have very little time for them.

I developed a savings habit at an early age. One regret I still harbour is that my mother sold her last three acres of land to keep us going during the Japanese occupation. I resolved to make up for the 3 acres, and if you ask me today, I have more than made up for the 3 acres. Unfortunately, while my mother had done so much for us, I did not have the opportunity to repay her kindness and sacrifice.

Q. Tell us how you unwind, if indeed you can find time at all for yourself ? Are there any specific hobbies that you indulge in, and have you been able to partake in them to your contentment?

A. After retirement, I bought a piece land at Sungai Penchala where there are fish ponds, fruit trees and birds. That’s where I unwind, amongst nature.

Q. One final question. People marvel at the boundless energy at your age. Do you ever think of slowing down or retiring, or is it still far away?

A. When I reach my 81st birthday, I shall ask myself this question.

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Workshops/Seminars

Seminar on Proposed Medical Devices Regulatory System in Malaysia(25 September 2007)

Dr. Ahmad giving his presentation

Participants at the Seminar

for submission to regulatory authorities in ASEAN countries. The workshop was conducted by Mr. Wang Hwee Beng, Director of the Medical Devices Bureau. The aim is to harmonise the differences and documentation forms presently existing in ASEAN countries. The adoption of a common submission dossier template for medical devices will make it easier for exporters of medical devices wanting to export to different ASEAN countries.

MREPC, taking cognizance that the impending bill on Medical Device Regulation will be tabled in the current parliament session, organized a seminar on the Proposed Medical Devices Regulatory System in Malaysia in collaboration with the Medical Devices Bureau, Ministry of Health (MOH), on 25 September 2007 at MREPC headquarters.

The objective of the seminar was to brief manufacturers of rubber medical devices such as medical gloves, catheters and condoms, on the important aspects of the bill that will affect them when the Medical Device Act is implemented.

The Act is to provide for the establishment and maintenance of a national system of controls relating to the quality, safety, efficacy and timely availability of medical devices. This Act is important for Malaysia because once implemented, it will place Malaysia on par with other countries that have implemented medical devices regulatory control. MOH has encouraged all companies that are involved in manufacturing medical devices to register with them on a voluntary basis presently, as once the Medical Devices Act takes effect, it will be mandatory for all medical devices manufacturers and traders to be registered for trading and export purposes.

A total of 42 participants from 30 companies manufacturing rubber medical devices participated in the seminar. The presenters from the Ministry of Health included Dr. Ahmad bin Mahmud from the Medical Devices Bureau, who briefed on the aims, objectives and guiding principles of the Medical Devices Act.

In addition to the briefing on the proposed Act, the Medical Device Bureau also conducted a workshop on the common dossier template

The overall response of the workshop was very encouraging. Companies provided positive comments on factors such as the suitability of venue, facilities provided, organization of the workshop and also on the handouts and briefing. A few of the companies suggested that MREPC organize a similar seminar before the Act is tabled at Parliament.

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Workshops/Seminars

In the face of increasingly stiff competition in the world market, it is no longer a choice whether we want to negotiate or not. The only choice we have is to excel in it and be a master negotiator. MREPC, being fully aware of this, organized a Workshop on Effective Negotiation Skills for decision makers from the industry, senior officials from the Ministry of Plantation Industries and Commodities, the Malaysian Rubber Board, and the Council on 18 and 19 September 2007 at MREPC. The capacity-building programme sought to improve the negotiation skills of the stakeholders in the industry.

Twenty participants attended the two-day event. The facilitator was Ms. Shanta Nagendram, the founder and director of Skill Focus Consultancy. As a reputable training consultant, she has vast experience in providing consultancy services for the Malaysian government, multinational corporations and non-governmental organisations, both locally and worldwide.

The workshop helped the participants to develop various useful techniques and skills to manage a negotiation process, and identify the key concepts and strategies for principled negotiations. The hands-on training not only provided the skills for effective planning and preparation in the process of negotiations, but also gave the participants an understanding of how to integrate the needs and concerns of various stakeholders in negotiations. In addition, the participants learnt how to be alert to the common problems, barriers and pitfalls encountered in a negotiation process. They were further exposed

to the art of creating communication leverage and influence, and ways of managing the conflicts that arise during negotiations.

Feedback from the participants showed that negotiation tools and techniques were the biggest take-away from the workshop. While they

Workshop on Effective Negotiation Skills (18-19 September 2007)

generally felt that the workshop had benefited them professionally, some of them suggested that there was a need to incorporate more real-life business case studies in the training programme.

Ms. Shanta conducting the workshop

Participants at the workshop

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courses

Rubber 101

MREPC had initiated a programme, “A Morning with MREPC,” at the end of May 2007. The first seminar under this programme was “Rubber 101,” a series of eight lectures, spread out between end of May and mid-August 2007. The lecture series was conducted by Dr. Kadir Mohamed, the Marketing & Technical Consultant to MREPC.

The Rubber 101 series sought to provide a quick and basic understanding of rubber to non-technical staff. It was originally designed as part of MREPC’s in-house training for new staff members. But then we thought it would be useful to share with industry members. Sure enough, we had overwhelming response from the industry. An average of 50 company representatives from the private sector participated in each of the eight lectures.

The lecture series was very well received by participants. Attendees went back with a good knowledge of what rubber is, what we need to do to convert rubber into useful products and how to test the products for the desired properties.

• AnsellShahAlamSdn.Bhd. The lectures were very useful

although some of the course content was not directly related to glove manufacturing. But it was a very good technical exposure to other industry members.

• Expedient Resources Sdn.Bhd.

Rubber 101 is good for people like me who come from different education background because this programme gave me the basic knowledge about rubber. I will be able to contribute something more to my company because of the knowledge gained.

• G.B. Industries (M) Sdn.Bhd.

I would like MREPC to organize some seminars/workshops that relate to rubber glove industry. I hope that MREPC would organize more rubber series which are more detailed than this Rubber 101 series.

• SSNMedicalProductsSdn.Bhd.

I would like express my appreciation to MREPC for organizing this seminar for the benefit of industry, especially for non-technical personnel. Personally it has helped me in my

area of work and eased a lot of my previous misunderstanding. I found it useful. MREPC should continue to organize it for those who do not have formal training in rubber.

Given the response to the Seminar and the favourable comments, MREPC plans a similar series on Rubber 101 in 2008. There have been several requests to run a similar series covering specifically the latex sector. Hence, a series entitled “Latex 101” could also be organized in 2008.

Some comments from four companies at the conclusion of the series were as follows:

Dr Kadir presenting his lectures

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commentary

Our health should be very dear to us. So is our environment. Indeed, the two could be intricately related. The pollution that we create adversely affects the quality of the air we breathe and the water we drink. Yet we continue with our mindless consumption of the earth’s resources, which aggravates further what could be considered an already dire situation. Despite environmentally friendly and renewable alternatives, we continue to use petroleum-derived materials and products. When will this ever end?

Against this backdrop, it was quite surprising to read, in the 6 January 2007 issue of Hospital Employee Health, that, to be latex-safe, the Northeast Georgia Medical Centre in Gainesville “is converting to vinyl exam gloves.” What makes this more incredulous is that, within the same article, there are the following two paragraphs.

Poisonous Plastic is no Alternative to Environmentally Friendly Latex

The US Centre for Health, Environment and Justice has labelled PVC as the poison plastic and for good reasons. In the life cycle of PVC, numerous hazardous materials are used or emitted, including carcinogens.

PVC is, inherently, a very hard material. To make soft or flexible products, including gloves, plasticizers are used. The most common of these plasticizers are the phthalates, which are considered to be teratogenic, i. e., they can cause congenital malformation of the foetus.

“Latex allergy has very significantly declined and almost disappeared,” says Gordon Sussman, MD, professor of medicine at the University of Toronto and staff immunologist and allergist at St. Michael’s Hospital. He is a leading researcher of latex allergy among health care workers.

“It’s because of initiatives of government, hospitals, and industry, which have changed their products. The exam gloves are 1,000-fold less allergenic and sterile gloves about 100-fold less allergenic [than they were in the 1980s],” he reports.

It is well-established that, when compared with latex gloves, the important properties of durability, barrier protection, elasticity and comfort of vinyl gloves fall far short. Environmentally speaking, latex gloves are more friendly, being made from nature’s renewable resource. In contrast, vinyl, or polyvinyl chloride (PVC), is petroleum-based. The manufacture of PVC not only involves the depletion of the earth’s resources, but also further pollutes our environment.

Property Latex Vinyl

Durability Good Poor

Protective barrier Good Poor

Elasticity Excellent Poor

Comfort Excellent Poor

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Readers are welcome to contribute articles on rubber product matters for publication in Stretch. The right to publish, however, rests with MREPC. An honorarium is payable on articles published.

Mercury

Productionof PVC

Chlorine

Manufactureof PVC

products

Use ofPVC

products

Disposal ofPVC

products

Heavymetals

Phthalates

Vinylchloride

monomer

Ethylenedichloride

Dioxin

Phthalates

Teratogenic

Phthalates

DioxinHCI

Teratogenic

Carcinogenic

Carcinogenic

Teratogenic

Carcinogenic

Hazardous Chemicals in Life Cycle of PVC

Thus, in a healthcare setting, it does seem incongruous that vinyl gloves are used to the exclusion of gloves made from latex, when the health hazards associated with PVC are well-known. This, coupled with the fact that low-protein latex gloves are available, as epitomized by the Standard Malaysian Gloves, makes the use of inferior vinyl gloves quite untenable in establishments concerned with people’s health.

(Article credit: Dr. A.Kadir)

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mrePc uSa

Background

In 1990, to insure that medical gloves imported into the United States meet certain quality standards, the U.S. Food and Drug Administration (FDA) implemented regulatory requirements for both patient examination and surgeons’ gloves, and initiated inspections of glove manufacturers to assure adherence to medical device Good Manufacturing Practices requirements and conformance to acceptable defect levels for barrier integrity. The FDA sampling methodology and defect action levels (in terms of acceptable quality levels or AQL) concerned were subsequently published. The test method was also adopted by standards organizations like the ASTM and ISO in their glove standards ASTM D-3577, ASTM D-3578, and ISO 10282 and ISO 11193.

The AQL represents the proportion of sampled gloves from a given lot that may include defects and still be accepted for entry into the marketplace. Medical glove lots that fail to meet the AQL specified will be considered adulterated; request may be made for re-sampling of the failed lot, which may also be marketed as non-medical gloves.

While the FDA acceptable leakage rate for surgeons’ gloves has remained at 2.5% (AQL) and patient examination gloves at 4.0% as acceptable defect levels considered in compliance until now, the ASTM and ISO standards have since lowered their AQLs to 1.5 and 2.5 for surgeon’s and patient examination gloves respectively.

TheNewFinalRule

The objective of the new rule is to reduce the risk of transmission of blood-borne pathogens, particularly

Final Glove Rule by FDA on the Test Procedures and Acceptance Criteria

Initially published on 19 December 2006 (This Rule will be effective on 19 December 2008)(An informational update by Dr. Esah Yip, Director, MREPC USA)

human immunodeficiency virus (HIV), hepatitis B (HBV), and to harmonize its new acceptable levels of defects at 1.5 and 2.5 for surgeons’ and patient examination gloves respectively with the consensus quality standards developed by ASTM and ISO.

The move was first initiated as a proposed rule published in the Federal Register dated 31 March 2003. After analyzing the impacts the rule might have, and assessment of anticipated costs and benefits involved, the rule was finalized recently and published in the Federal Register on the 19 December 2006. This was subsequently followed by a corrected version on 19 January 2007. According to the FDA, the new rule will have the following effects:

o Lowering the rate of acceptable defects and improving the barrier integrity of gloves should reduce the transmission rates of particularly the HIV and HBV;

o FDA has determined that about 940 million defective gloves are marketed each year (representing 2.4 percent of all marketed gloves) in the United States. In the absence of the final rule, FDA expects that the number would increase to 1.21 billion per year within 10 years;

o With the lower AQLs in place, the number of defective gloves should reduce by more than 25 percent - the current number will approximate 700 million and within 10 years will result in 900 million defective marketed gloves;

o Economically, the new rule will not have a significant impact on the industry as a vast majority of the glove manufacturers already

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produce gloves that meet the lower AQLs specified;

o Although FDA expects the rule to increase the costs of sampling by requiring larger and more detailed sampling plans to assure the lower AQL is met for each inspected glove lot, FDA does not believe that the increased costs due to the rule would likely be directly passed on to consumers in the form of price increases;

o FDA does not expect the new rule to have any impact on the environment;

o The average annualized costs of the final rule are estimated to be $6.6 million using either a 3 percent or 7 percent annual discount rate;

o FDA expects an annualized monetary benefit of $14.8 million (using 3 percent discount rate) or $15.1 million (using 7 percent discount rate) will be realized due to fewer pathogen transmissions and unnecessary blood screens.

o The average annualized net benefits are therefore substantial, between $8.2 million and $8.5 million depending on the discount rate. A positive net benefit is important in the consideration of finalizing any proposed rule by the FDA.

HarmonizationwithaDifference

The FDA may have now harmonized the new AQL standard with those of ASTM and ISO, but there is a concern about the difference existing between them. This has been expressed in a number of comments conveyed to the FDA, pointing out that while the AQL requirements by ASTM and ISO apply only to

pinhole defects, as measured by using the water leak test which involves the detection of water leakage shown by gloves when filled with a given volume of water and held for a given time period, the new FDA ruling, on the other hand, refers to both pinhole and visual defects.

Accordingly, FDA has always considered visual defects that affect barrier integrity as failures during glove testing. The defects currently defined by the FDA include not only leaks and tears that are detectable by the water leak test, but also include other visual defects such as mould, embedded foreign objects, etc. FDA expressed that visual defects would not be ignored when they are observed, although their occurrence may be of lesser frequency than pinholes. In response to the concern, the FDA agreed to include a language to clarify only visual defects that are likely to affect the barrier integrity should be counted as failures.

Impacts

The lower AQLs by the new rule are thought not to have significant impact on the glove manufacturers, since many of whom are already meeting the levels specified by ASTM and ISO international standards. As such, the new rule is also not expected to cause significant changes in the manufacturing processes. Generally, the new FDA rule is welcome by many in both the healthcare and glove industries. While harmonization of lower AQLs by the FDA with those of the ASTM and ISO international standards will help to ease confusion among the two industries, the new ruling will hopefully further decrease the risk of infection at healthcare facilities.

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Seminar on “Barrier Protection and Biohazards”

MREPC, in updating the glove-using public about Malaysia’s improved low-protein latex gloves, sponsored an educational glove seminar on “Barrier Protection and Biohazards” at the 2007 APIC (Association for Professionals in Infection Control and Epidemiology) Annual Conference on 27 June in San Jose, California.

The seminar, held at the APIC event, had presentations by three speakers:

1) “Biohazards and Viral Transmission – Recent CDC experience” by Dr. Michael Bell, Associate Director for Infection Control, National Center for Infection Diseases, of the Centers for Disease Control;

2) “Effectiveness of Glove Barrier in Clinical Settings” by Dr. Denise Korniewicz, DNSc, RN, FAAN, Professor & Senior Associate Dean for Research, University of Miami. A renowned researcher in glove barrier studies, Dr. Korniewicz has published many papers on the subject.

3) “Today’s Medical Gloves: What You Need to Know” by Dr. Esah Yip, D.Sc. with more than 30 years of experience in rubber research at the Rubber Research Institute of the Malaysian Rubber Board, is currently the Director of the MREPC, USA.

The Seminar not only updated healthcare professionals on the biohazards confronting the American public, but also provided better understanding of today’s medical gloves, so as to enable them to make educated glove choices for effective protection. This is very important as oftentimes in the absence of correct information, the wrong gloves are selected for the wrong reason. For example, for cost reason, vinyl gloves with inferior barrier protection are used in some hospitals for medical procedures involving contact with blood and body fluids. This could put both the healthcare workers and their patients at undesirable health risks.

The Standard Malaysian Glove (SMG) program was also highlighted. SMG-certified gloves are quality low-protein latex gloves, which are high in barrier performance and low in latex allergy risks, and are recommended for those who are not latex allergic.

Participants queuing to enter the seminar hall

Speakers Dr. M. Bell, Dr. D. Korniewicz, and Dr. E. Yip

Participants at the luncheon seminar session

The SMG is the first and only quality certification program for examination gloves formulated by a glove manufacturing country.

The seminar was highly successful, and the response from the attendees was overwhelming, with the number of attendance more than tripled of what was initially expected.

For further information about the presentations, please visit www.latexglove.info.

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travelogue

First of all, on behalf of Top Glove Sdn. Bhd., I wish to extend my heartiest thanks to the Ministry of Plantation Industries and Commodities for inviting us to join this successful and highly informative trade mission to Hungary and Czech Republic.

Since this is a `light and easy’ write-up, please do not take offence if some of the names of the delegates (including the dignitaries) are mentioned and may be described in a humorous manner! My sincere apologies if I have unintentionally offended anyone in the midst of coming up with this article.

On the day of the trip, I felt like a wannabe Indiana Jones without my whip, of course. Well, in my mission I had to take a different route to our first destination – Budapest. The other delegates had left KL earlier, leaving me to travel alone. But upon reaching Amsterdam airport for transit, my spirits were lifted when I saw familiar friendly faces such as those of Dato’ Dr. Kamarul, Tan Sri Datuk Dr. Arshad, Dato’ Teo, Dato’ Dr. Ong, Mr. Krishna and Mr. Chin. As usual, Tan Sri Datuk Dr. Arshad was stylishly-dressed like a British gentleman with a very classy scarf around his neck and I really could not recognize Dato Teo and Dato Dr. Ong as they looked different when they are were dressed up in their winter jackets and not their business suits……. Looked real cool like Japanese tourists.

From Amsterdam, we flew to Budapest, Hungary (1st stop) and upon arrival, there were a big bus and a 7-seater van. I hopped onto the van and sat on the front seat. Joining me in this van was a couple. It was apparent that the man had vast knowledge about Hungary and Czech Republic, and all the ex-Soviet Union countries, which he was sharing with the driver. Being friendly and as part of courtesy, I started by saying hello to the gentleman and after much thought, I enquired his name and which company he was with. His wife, a Datin, then asked me in a polite manner if I know who her husband was, and I answered innocently that I didn’t. The gentleman then introduced himself as Datuk Dr. Mahmood A. Kadir , Group Chief Executive of MARDEC!

Next morning, I got up early and proceeded to Hilton WestEnd to attend the seminars and to prepare for my presentation. The turnout was pretty good and the seminar started on time. The seminars were highly informative and were presented by Datuk Dr. Ong, Mr. Krishna and Dr. Andrew Tinker, and I must say that I gained much from all these eloquent speakers.

Promotional and Technical Mission on Rubber, Palm Oil & Pepper to Hungary, Czech Republic and Germany, 17 to 27 October 2007 – a Personal Diary

Soon it was my turn to present…..and since I wanted to present in style, I decided to use the cordless mini collar microphone…..and started my presentation. I nearly lost the mini microphone because it was so small…and my body is so huge! Each of us, from two companies, viz. Top Glove and Kinta Rubber Works, was given 10 minutes to do the presentation. The latter company was represented by mild-mannered and Mr. `Nice Guy’, Yeo Lam Ewe. I must admit I was a bit nervous at the beginning, but after imagining myself giving a concert and singing my repertoires, all my nervousness left me immediately! I was so carried away with my presentation that Datuk Mahmood, the chairman for the session, had to ring the bell twice to remind me that time was up, so the last part of presentation was very similar to the `fast train from KL Sentral to KLIA!’ Datuk Dr. Mahmood, gave me 2 cynical smiles indicating…..`Please stop, Danny Boy…..or else ….’ The attendees were very nice and after lunch, Cape Techno, GETHA, Kinta Rubber Works and I quickly prepared ourselves for the business matching sessions. Since we were early, all of us role-played business matching among ourselves. We had 2 or 3 business matchings which were well arranged by MATRADE, Hungary.

The next morning, 20 Oct. 2007, was a Saturday……..Happy Times and the beginning of a Beautiful Weekend…..! The weather at about 10oC was perfect for me as I have a `special layer’ that keeps me warm all the time….City tour time……I could hear a lot of `Wah……Wah…… so nice one…ah…so pretty…….’ From everyone in the bus…..Yes, Budapest is indeed a pretty city. First stop was the Heroes’ Square and after that a walk in a park.

21October(Sunday) - We had an early breakfast and got ready to fly to Czech Republic. This was the greatest embarrassing moment for me ……..Upon arrival at the Czech airport, I confidently walked up to a bus parked near the plane……only to find out that I had boarded the wrong bus! The bus I boarded was for the Honourable Minister and VVIPs…………when I looked up after boarding the bus, Datuk Peter Chin was smiling at me……Oh my goodness!……and I saw my fellow delegates waving at me from the other bus! I wanted to get down from the bus but it was too late…As usual, the Minister was very kind to say it was fine for me to be on his bus.

22 October (Monday) - This was an easy day as the `rubber’ people were visiting a car manufacturing plant in the outskirts of Praha……..i.e. the SKODA car

manufacturing plant. The trip and plant tour took us almost the whole day…but it was very interesting to know how long the car industry has been in Praha. It was indeed very informative and very nice………still remember how the tour guide looked like (typical good-looking Eastern Bloc ladies)..…….strange…I haven’t even visited our own Proton plant….when it is located right here in Malaysia….got to visit the plant one day. 23October(Tuesday) - This happened to be the last day of my stay with the group as I was scheduled to visit another customer in a neighbouring country after Praha. It was a great day with the normal seminars. Lunch was good as usual. However, the response for the business meetings was not as good as it was in Hungary, so most of us decided to leave the convention hall early……..when I suddenly heard someone speaking in a foreign language asking for Top Glove at about 3pm! I was excited as I thought this person would not turn up. We had a great conversation and finally managed to have a fruitful discussion.

Since it was my final night with the delegates, we (Cape Tech, GETHA and Kinta Works) decided to do some sight seeing and shopping ………Praha is another very beautiful city. We started with the boat ride and got to know some of the history of the country. According to the tour guide, certain scenes of Mission Impossible 3 were filmed there as compared to Venice due to lower cost….(I thought only glove makers go for lower costs!)………

It was raining but the rain did not dampen our curiosity. We walked to the St. Charles Bridge in the rain and some of us even climbed up the staircase of the bridge.

From there we proceeded to a cathedral to watch a little symphony playing music from Tzaichosky to Bach to Strauss………it was a tiny cathedral but the acoustic was incredible! The music was so soothing and nice that I nearly fell asleep on the bench but good thing Lam Swee gave me a nudge. It would have been the most embarrassing moment if I really fell asleep and fell in the middle of a very quiet cathedral where there were people concentrating on the music……. Imagine the sound of my fall…..it would have been disastrous.

Like they say, all good things must come to an end………all of them said good bye to me at the hotel lobby that night and I must admit that despite the short span of time that I got to know them, there is a strong bond between us that we developed. We even called ourselves brothers like (in Cantonese) `Tailo’ (Big Brother), ‘Yi Lo’ (2nd Brother), ‘Samlo’ (3rd Brother), ‘Seilo’ (4th Brother)……. and promised to meet up in Malaysia again….and we did….. Overall, the trip is truly an eye opener for me. It has given me the invaluable chance to get to know high but very humble and friendly officials; all the dignitaries in the trade mission have displayed a high level of professionalism, humility, great support to Malaysian businesses, and lots of fun to be with.

(Article credit: Danny Ong, Top Glove Sdn. Bhd.)

The writer letting his ‘hair’ down after the day’s businessThe writer (left) with buddies at Prague on 23/10/2007 at Intercontinental Praha.

‘ALL MEN ARE BROTHERS’

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