04 COVER STORY 06 SPECIAL FEATURE 12 SPECIAL FEATURE

04 COVER STORY FMM Annual Dinner 2016

06 SPECIAL FEATURE FMM 48th Annual General Meeting

12 SPECIAL FEATURE Line-up of FMM Council for 2016/2017

JAN – MAR 2017 | VOL: 1 /2017 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376)

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

COVER STORY

04 FMM Annual Dinner 2016

SPECIAL FEATURE

06 FMM 48th Annual General Meeting

07 Tan Sri Dr Lim Wee Chai Elected as FMM President

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

Editorial TeamMadeline LohGeneral Manager (Trade)

Esther BoeySenior ManagerInternational Business Division

Florance S. GabrielAssistant ManagerCommunications and Publications Unit

AdvertisementsKenny LeeSales ManagerMarketing UnitTel: 012-383 3857

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

08 Line-up of FMM Council for 2016/2017

2 | BIA@FMM | JAN – MAR 2017

JAN MAR 2017 | BIA@FMM | 3

12 Corporate Governance & Integrity Ensure Business Sustainability

SME NEWS

16 FMM SME Conference 2016 – Beyond Economic Growth: SMEs Meeting Global Challenges

14 Women in Business Committee – FMM CSR Project

UPDATES

21 Enhancing Supply Chain Strategies

FMM Factory Management Conference 2016 – Human Resource, Productivity and Energy Efficiency

20 Enhancing Trade Ties with Singapore

UPDATES

18 GST Tax Audit Compliance for Manufacturers

FMM Discussion with the International Malaysian Society of Maritime Law

FEATURE

10 FMM Spearheads a LEAN Study Mission to Japan

BRANCH NEWS

22 Kedah/Perlis

Penang

Malacca

Perak

Selangor

Negeri Sembilan

Eastern

Johor

Sarawak

The FMM 48th Annual Dinner held onDecember 1, 2016 was attended bysome 1,000 members, their associates,business leaders and distinguishedguests including YB Senator Datuk PaulLow, Minister in the Prime Minister’sDepartment and Tan Sri Mohd SidekHj Hassan, Chairman of Petronas.

YB Dato’ Seri Ong Ka Chuan, SecondMinister of International Trade andIndustry was the Guest-of-Honour.In his address, YB Dato’ Seri Ong KaChuan reiterated the Government’ssupport to facilitate manufacturers toreinforce their resilience to sustain

System Development Programme.Year 2016 recipients were the secondbatch of recipients of the programmewhich was launched in November2014. The four companies were JemcoManufacturing Sdn Bhd (manufacturerof racking system and gondola), KurzProduction (M) Sdn Bhd (manufacturerof stamping foils), Penfabric Sdn Berhad(manufacturer of woven fabric for 100%cotton and poly cotton) and Top GloveSdn Bhd (manufacturer of rubber gloves).

FMM Membership GrowthAward for Financial Year2015/2016The Award aimed at recognisingand motivating FMM Branches in theirefforts to recruit and retain members.The award for FY 2015/2016 was wonby FMM Johor Branch.

FMM Icon Award 2016The inaugural FMM Icon Award wasorganised with the support of MPCand is aimed at recognising individualswho provide leadership and noteworthycontributions to the development ofthe manufacturing industry andperceived as role-models to others.Nominees were judged based onseven criteria, namely, inspire others,company has global presence,transform his/her company toexcel, lead with integrity, contribute

NEWS HIGHLIGHTSCOVER STORY

FMM Annual Dinner 2016demand in the current uncertainand challenging global economicenvironment. YB Dato’ Seri, however,expressed the Government’s confidencethat Malaysia would maintain its GDPgrowth target of 4% to 4.5% for 2016and 4% to 5% in 2017, given thenation’s strong economic fundamentals.The Minister also highlighted the manyopportunities for companies to leverageon the preferential tariffs and benefitsprovided in the various Free TradeAgreements to gain access into newand emerging markets within ASEANand Asia Pacific countries.

The highlight of the dinner was thehanding over of FMM Presidency.As Guest-of-Honour, YB Dato’ SeriOng Ka Chuan, witnessed the handingover of the FMM Presidency from Tan SriSaw Choo Boon to Tan Sri Dr Lim WeeChai, who was elected President at theCouncil Meeting following FMM AnnualGeneral Meeting held on the same day.

YB Dato’ Seri Ong Ka Chuan alsopresented certificates and awardsto recipients and award winnersas follows:

Certificates of Recognition ofPractice in LEAN ManagementFour companies received the certificateson completion of the FMM-MalaysiaProductivity Corporation (MPC) LEAN

The five FMM Icon Award 2016 winners after receiving their certificates from YB Dato’ Seri Ong Ka Chuan (4th from left)


Guest of Honour YB Dato’ Seri Ong Ka Chuan,Second Minister of International Trade and Industry,

presenting the keynote address


to the development and improvementof the manufacturing industry, promoteenvironmental sustainability andchampions corporate social responsibility.

The winners of FMM Icon Award2016 were:

Olivier CaublotGeneral ManagerCarrier International Sdn Bhd

Yap Suan SeeVice President cum Managing DirectorFinisar Malaysia Sdn Bhd

Teh Hock SoonManaging Director, Penfabric Sdn Bhd

Tam Wah FiongChairman, Thumbprints Utd Sdn Bhd

Tan Sri Dr Lim Wee ChaiExecutive Chairman, Top Glove Sdn Bhd

FMM members and guests at the dinner

Group photograph of the FMM Lean Management certificate recipients

FMM Membership Growth Award for the financial year 2015/2016 was awardedto Johor Branch Chairman, Capt (R) Haji Abdullah Shariff (2nd from right) FMM members networking during the dinner


NEWS HIGHLIGHTSSPECIAL FEATURE

FMM held its 48th Annual GeneralMeeting (AGM) on December 1, 2016,at Wisma FMM, Bandar Sri Damansara,Kuala Lumpur.

In his address, Tan Sri Saw Choo Boon,FMM President, highlighted that thecurrent business and economicconditions were as challenging asthey were the year before amidst anuncertain global environment. TheMalaysian economy registered lowergrowth of 5.0% in 2015 (2014:6.0%)

given the moderation in private sectordemand following the implementationof Goods and Services Tax (GST), highercost of living and a weaker Ringgit.

Tan Sri Saw also highlighted thatFMM continued to engage theauthorities on a host of issues withregards to complying with newlegislation and regulations, such asthe implementation of GST andproposed new mechanisms to curbGST-related profiteering, introduction

of new export permits and theimplementation of mandatoryrequirement to weigh containers.FMM was also occupied in discussionswith policy makers to resolve a myriadof human resource management issuesranging from the freeze on foreignworkers, renewal of foreign workers’permits and review of labour legislationto the proposal to introduce anEmployment Insurance Scheme.

FMM had successfully appealed to theauthorities to defer and/or moderateprice increases and regulatoryrequirements with cost implications.Prices of natural gas scheduled forJanuary was moderated from 25%to 17%. The authorities also agreedto the deferment of the proposedenvironment cess, security codificationfor local beer and a number of MAQISexport permits and inspections. Inregard to GST, Royal Malaysian CustomsDepartment agreed to FMM’s proposalto zero rate drop shipments madewithin a specific time frame. FMM’sstrong representation to MATRADE insupport of SME export promotionprogrammes resulted in the increasein Market Development Grant fromRM800 to RM2,000 per trade mission.

FMM 48th Annual General Meeting

Annual General Meeting in progress

FMM members who attended the Annual General Meeting on December 1, 2016

(continued on page 7)


Tan Sri Dr Lim Wee Chai Elected as FMM President

Tan Sri Dr Lim Wee Chai was electedas FMM President at the FMM Councilmeeting on December 1, 2016,succeeding Tan Sri Saw Choo Boon.A handover ceremony of FMMPresidency was held at FMM’s AnnualDinner, witnessed by Dato’ Seri OngKa Chuan, Second Minister ofInternational Trade and Industry.

Tan Sri Dr Lim holds a Bachelor ofScience Degree with Honours inPhysics from the University Malaya anda Masters of Business Administrationfrom Sul Ross State University, Texas.In 2015, he obtained his PhD inManagement from University of

Selangor and was conferred an HonoraryDoctorate in Business Administration bythe Oklahoma City University in 2016.

He is the Executive Chairman andFounder of the Top Glove Group ofCompanies and the driving forcebehind its success. The glovemanufacturing company whichstarted in 1991 with three productionlines, has under his visionarystewardship emerged as the world’slargest rubber glove manufacturer,with 25% of the global market share.The company owns 28 factories acrossMalaysia, Thailand and China with a totalof 500 production lines and a productioncapacity of 46.6 billion pieces of glovesper annum. It has a growing network ofover 2,000 customers in 195 countries,and a market capitalisation of RM6.2billion as at December 14, 2016.Top Glove is listed on Bursa Malaysiaand the Singapore Exchange.

Tan Sri Dr Lim is currently the HonoraryPresident of the Malaysia-ChinaChamber of Commerce and HonoraryAdvisor of the Klang Chinese Chamberof Commerce. He has also beenappointed as to the EPF Board (2015 –2017), as well as University of MalayaDirector (2015 – 2018). He previously

served as President of the MalaysianRubber Glove Manufacturers’ Association(1997 – 1999), Vice-President, HonorarySecretary and Treasurer of MARGMA,Director of the Association of MalaysiaMedical Industries and Board Member ofthe Malaysia Rubber Board (1998 – 1999).

Tan Sri Dr Lim has garnered severalawards including the prestigiousaccolade Master and CountryEntrepreneur of Malaysia for the Year,by Ernst and Young in 2004;Entrepreneur of the Year at the AsiaPacific Entrepreneurship Awards 2008;The BrandLaureate Brand IconsLeadership Award in 2011; ManufacturerMan of the Year 2013 by the Asia PacificBrands Foundation; the Asian Icon Award(World Class Entrepreneur) in 2014; the2016 Malaysian Leadership ExcellenceAward, by the Malaysian Institute ofManagement and most recently theFMM Icon Award in December 2016.

His personal motto for success is:“Work is my Hobby, Exercise is myDuty, Health is my Wealth”.

Tan Sri Saw Choo Boon who wasFMM President from 2013 – 2016took office as the Immediate PastPresident of FMM.

In extending members’ marketsglobally, FMM advocated stronglyfor the conclusion of significantmultilateral FTAs.

FMM organised a number of CSRactivities to promote skillsdevelopment and capacity building.These activities included organisingthe FMM-Monash Entrepreneurialand Internship Programme to improvethe employability of graduates,study visits to expose students to amanufacturing environment andorganising a forum to strengthenwomen entrepreneurship.

In conclusion, Tan Sri Saw urgedmembers to improve productivity,up-skill the workforce through trainingand invest in upgrading and automatingthe manufacturing processes to stepup competitiveness.

The report of the Council and Statementof Accounts for financial year endedJune 30, 2016, were unanimouslyapproved and adopted by themembers present. Tan Sri Saw ChooBoon, Tan Sri Dato’ Soong Siew Hoong,Dato’ Haji Mizanur Rahman Ghani andDavies Danavaindran were elected tothe Council under Section 129(6)

of the Companies Act 1965.11 Council members were elected/re-elected into the FMM Council.

At a Council meeting followingthe AGM, Tan Sri Dr Lim Wee Chaiwas elected as FMM President for 2016/2017. Tan Sri Saw ChooBoon took office as the ImmediatePast President under Article 38 ofFMM’s Articles of Association.Davies Danavaindran, Dato’ DrIr Andy Seo Kian Haw, Datuk Norainibt Soltan and Jacob Lee Chor Kokwere elected as Vice-Presidents for2016/2017.

(continued from page 6)


SPECIAL FEATURE

President

Tan Sri Dr Lim Wee ChaiTop Glove Sdn Bhd

Immediate Past President

Tan Sri Saw Choo Boon Heineken Malaysia Berhad

Vice-Presidents

Dato’ Dr Ir Andy Seo Kian HawAlphaprima Engineering Sdn Bhd

Jacob Lee Chor KokAsli Mechanical Sdn Bhd

Davies DanavaindranRadosh Engineering & Industrial Sdn Bhd

Datuk Noraini bt SoltanSipro (Malaysia) Sdn Bhd

Council Members

Dr Helena Eian Yeut LanAccel Graphic System Sdn Bhd

Tan Sri Cheng Yong KimAntara Steel Mills Sdn Bhd

Dato’ Tan Boon PunAssociated Kaolin Industries Sdn Bhd

Michelle Hah Mei KianFire Fighter Industry Sdn Bhd

Dato’ Haji Mizanur Rahman GhaniHuntsman P&A Asia Sdn Bhd

Dato’ Nathan K Suppiah Isus JVC Industries Sdn Bhd

Tan Sri Dato’ Soong Siew HoongKejuruteraan Wang Yuen Sdn Bhd

Ir Ter Leong LengKemuncak Engineering SuppliesSdn Bhd

Abdul Samad IbrahimKulitkraf Sdn Bhd

Ir A K WooMaster Jaya Engineering Sdn Bhd

Mag NgMega Fortris (Malaysia) Sdn Bhd

Alois HofbauerNestle Manufacturing (Malaysia) Sdn Bhd

Datuk Wong Choon SengSabaconcrete Sdn Bhd

Dato’ Palaniappan JosephSatake Technologies Sdn Bhd

Amir Hamzah Abu BakarShell Refining Co (FOM) Bhd

Dato‘ Goh Boon KimTaik Sin Timber Industry Sdn Bhd

Peter Lim Yoke CheongTitan Metal Works Sdn Bhd

Gor Siew YengToray Industries (Malaysia) Sdn Bhd

John Lee Boon HawUmmi Medical & Life SciencesSdn Bhd

Chan Cheu LeongWah Seong Corporation Berhad

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 Groundnut FactorySdn Bhd

Dato’ Soh Thian Lai Selangor Branch CommitteeStar Shine Industries Sdn Bhd

Datuk Mohamed Arsad Bin SehanNegeri Sembilan Branch CommitteePureCircle Sdn Bhd

Datuk Jeffery Ong Malacca Branch CommitteeOriental Food Industries Sdn Bhd.

Capt (R) Haji Abdullah Shariff Johor Branch Committee DSN Advanced Technology (M)Sdn Bhd

Dato’ Haji Mas’ut Samah Eastern Branch CommitteePascorp Paper Industries Berhad

Tuan Haji Othman Abdul RaniSarawak Branch CommitteeCMS Cement Sdn Bhd

Line-Up of FMM Council for 2016/2017

Group photograph of the FMM Council Members for 2016/2017


FEATURE


FMM, with the support of the MPCorganised a study mission on LEANManagement to Nagoya and Tokyofrom September 18 – 23, 2016.The main objectives of the studymission were to provide opportunitiesfor the participants to visit Japanesecompanies that excel in LEANmanufacturing and to gain insightsinto how they remained competitivedespite cost challenges similar tothat faced by Malaysia.

During the study mission, a hands-onworkshop on LEAN tools wasconducted by two instructors withover 40 years of experience fromToyota Motor Corporation.

The participants had the exclusiveopportunity to visit factories, some ofwhich are generally closed to groupvisits, to learn the best practices ofLEAN Manufacturing:

• Toyota Motor Corporation – Japan’snumber one car maker.

• Nissan Motor Co Ltd – manufacturerof cars, automotive products andmarine equipment.

• Avex - manufacturer of hydrauliccontrol valves for automatictransmission system. The companyis one of the selected Monozukiri(Manufacturing) SMEs in Japan.

• Tokai Shinei Electronics IndustrialCo. Ltd – known for its cleanfactory environment consistentwith the President’s strong beliefthat a clean factory will improveproductivity. This value has beensuccessfully passed down toworkers in the factory.

• OSG Corporation – a comprehensivetool cutting manufacturer withexcellent factory visual management.

• Karimoku Group – well known forits clean woodworking factoriesand pollution control measures.

• Kura Corporation – sushi restaurantthat uses computer managementsystems to improve delivery offood to customers.

Positive feedback was obtained fromparticipants of the study mission,particularly on ideas that they havepicked up that could be implementedin their factories. These includeintroducing Andon/display board forfactory staff to view the number ofproducts achieved by all productionlines, improvement in spacemanagement, the need to incentivisestaff to provde continuous feedback/ideas to improve processes or reducewastage, need for management tobe humble and value employees’contribution to the organisation, etc.

The study mission was 100% claimableunder the Human ResourceDevelopment Fund. For moreinformation on the next FMM LEANStudy Mission, please contact JessChong of the FMM Secretariat [email protected].

FMM Spearheads a LEAN Study Mission to Japan

The participants had the exclusive opportunity to visit factories

Participants were briefed on processes practised at factories in Japan

Hands-on workshop on LEAN tools waspart of the study mission


A compliance system is sustainablewith adaptation to the changingenvironment and compliance lieswith each and every employee ofthe organisation. These principleshave helped Siemens to emergestronger from its bribery scandalin 2007.

“Siemens took immediate action tochange the top leadership team,conduct independent investigationand implement compliance programmeand integrity initiatives,” said PrakashChandran, President and Chief ExecutiveOfficer of Siemens Malaysia Sdn Bhdin his keynote address at the seminaron Responsible Business – BusinessIntegrity Key to Sustainability held onOctober 4, 2016.

The seminar, organised by theFederation of Malaysian Manufacturers,International Chamber of CommerceMalaysia and ASEAN CSR Network,was attended by 120 participantsfrom the public sector, manufacturers,bankers and NGOs.

The seminar shared the private sector’sperspectives and best practices ongood corporate governance andresponsibility as well as the role ofbusiness integrity in ensuring businesssustainability. Companies are increasinglyextending responsible business practicesparticularly on the environment andhuman rights to their supply chain forsustainability and rewards. Participantswere also briefed on global findingson economic crime, global corporateresponsibility and anti-corruptioninitiatives, and how integrity addsvalue to business.

Six panellists comprising topmanagement in SMEs and MNCsshared the following key messagesduring the High Level Dialogue:Integrity Key to Sustainable BusinessSuccess on the importance ofresponsible business and theircompanies’ approach in compliance:

• The CEO is responsible to ensurethat business is performed with thehighest level of integrity. Core valuesare Integrity, Honesty and Respect toPeople. All employees subscribe to aGeneral Business Practice documentcovering aspects such as businessintegrity, political activities, theenvironment and engagement withlocal communities. The documentis an ethical business practiceguideline for everyone in theorganisation. Continued businesssurvival depends on shareholders’trust in the company – Datuk AzmanIsmail, outgoing Managing Director,Shell Malaysia Trading Sdn Bhd.

• As part of business sustainability,the company is fully accountableto stakeholders, shareholders,customers, business partners,community, employees and theirfamilies. Integrity means honesty andsincerity. Customers are clear aboutthe product and alerted on relevantdetails before a sale is made orbusiness transacted. Reportingto shareholders is transparent anddirect. Looking after employees also

means looking after their family andcommunity – Alex Yeow, ExecutiveDirector, Malaysian Mosaics Sdn Bhd.

• Instilling value and purpose intobusiness practice boils down torespect for employees, customersand the environment. The top setsthe tone. Leadership must take actionon compliance issues, otherwise,people will not buy into any slogan orcompliance initiatives. Transparencyis key to consumers and the valuechain, where goods are sourced,processed, etc. Compliancedifferentiates the business, it isnot a burden. Transparency providesan opportunity to charge a premiumover those that are less transparent.All suppliers must be part of thecompany’s integrity programmeand subscribe to the Supplier Code –Alois Hofbauer, Managing Director,Nestle (Malaysia) Berhad.

• It is important to ensure responsibilityacross the entire value chain. It isDigi’s culture to talk openly onissues at hand during managementmeetings and quarterly reviews sothat the same mistakes are notrepeated. Even at the risk of losingbusiness, Digi has zero tolerancefor non-compliance, extending tosuppliers, who would be terminatedif they do not follow guidelines. –Albern Murty, CEO, Digi.com Berhad.

• “No Lies, No Cheat, No Bribes” is thetagline of Thumbprint UTD Sdn Bhd.As long as we do right, there willbe companies willing to worktogether. Integrity includes engagingemployees. Monthly zero-corruptiondramas among departments castemployees in ethical scenarios toguide employees on compliance.There are challenges and resistanceespecially from the youngergeneration who wants to do thingsquickly when chasing results. Thecompany has walked away frommany deals and reported others –Lim Chee Yong, Executive Director,Thumbprints UTD Sdn Bhd.

FEATURE

Corporate Governance & Integrity EnsureBusiness Sustainability

President and CEO of Siemens MalaysiaSdn Bhd, Prakash Chandran delivering

the Keynote Address onResponsible Business Leadership


A High Level Dialogue on Integrity Being Key to Sustainable Business Success was presented by the top leaders of the industry

• The 2007 bribery scandal wascaused by people in the organisationwho had failed in compliance.The company has since identifiedand addressed the gap betweentop management and employees.Involvement and responsibility ofthe middle management wasmissing. Today, the manager ofeach division is responsible to“walk the talk” and present a5-minute “Integrity Dialogue” atweekly meetings – Pravind Menon,Lead Country Singapore ComplianceOfficer, Siemens Malaysia.

SGS and Facebook shared theirorganisation’s integrity culture ofbeing open and transparent. DavinderSingh, SC, CEO, Drew & Napier LLCspoke on the business case for integritycovering reputation risks, competitiveadvantage in terms of customer loyalty,employee commitment and retention,productivity and innovativeness,investment, access to capital andmost importantly, avoiding penaltiesand sanctions. PricewaterhouseCoopersshared the global economic crimesurvey 2016 which found asset

misappropriation (57%), bribery andcorruption (30%) and cybercrime(30%) as the top three economiccrimes in Malaysia.

A Panel on Maximising Supply ChainValue based on Environment andHuman Rights comprising panelists:Karan Chopra, Head of Import ExportOperations A/P & APTC, BASF (Malaysia)Sdn Bhd; Rashyid Anwarudin, VicePresident, Group Sustainability &Quality Management, Sime DarbyHoldings Berhad; HE Mr Edmund Bon,Malaysia’s Representative to ASEANIntergovernmental Commission onHuman Rights (AICHR); and K M Lee,Managing Director, Top GloveCorporation Berhad shared the following:

• BASF shared their approaches insupply chain management to ensurecompliance and sustainability andapply an end-to-end approach inlooking at people and processes.

• AICHR has developed many standardscovering migrant workers, safety andenvironment, working spaces,environmental footprint, etc. AICHR islooking at applying core business and

human rights principles andintroducing tax breaks for companiesdoing the right thing. However,the challenge is encouragingcorporations to meet minimumstandards which would ultimatelybenefit them.

• Sime Darby shared that revenue andcost impact is at the core of business.They risk losing major accounts ifthey don’t pay attention to theenvironment and human rights.At the same time, they look todevelop a long-term relationshipwith like-minded corporations.

• Top Glove has been certified toenvironmental standards andhas proper control of waste anddischarges. The company is alsocertified by the Business SocialCompliance Initiative, a leadingsupply chain management systemthat supports companies in drivingsocial compliance and improvementsin their factories and global supplychains. Top Glove benchmarks againstother companies on worker welfareand the environment.


FEATURE

As part of its CSR initiatives, theWomen in Business Committeeorganised three study visits forstudents from Tunku Abdul RahmanCollege to Bodibasixs ManufacturingSdn Bhd, Royal Selangor InternationalSdn Bhd and Tenmoku Pottery (M)Sdn Bhd on October 26, 2016 andNovember 17, 2016.

A total of 39 students from the Facultyof Applied Sciences and Computingvisited Bodibasixs ManufacturingSdn Bhd. They were received byLee Pang, Executive Director ofBodibasixs Manufacturing Sdn Bhdwho briefed the students on thebackground and profile of thecompany. The students were thengiven a tour of the production andresearch and development facilities.

A group of 20 students from theFaculty of Social Science, Arts andHumanities visited Royal SelangorInternational Sdn Bhd and TenmokuPottery (M) Sdn Bhd. At Royal SelangorInternational Sdn Bhd, the studentsexperienced first-hand the pewtermaking process which included ahalf-hour hands-on session at theSchool of Hard Knocks centre. AtTenmoku Pottery (M) Sdn Bhd, thestudents were also given a hands-onexperience in moulding key chainsand in designing their own tea bowls.

Women in Business Committee – FMM CSR Project

Students and programme leaders at Tenmoku Pottery (M) Sdn Bhd on November 17, 2016

Tan Sri Yong Poh Kon, then FMM Immediate Past President (2nd from right) with the studentsat the School of Hard Knocks, Royal Selangor International Sdn Bhd on November 17, 2016

Visit to Bodibasixs Manufacturing Sdn Bhd on October 26, 2016


SME NEWS

FMM in collaboration with SMECorporation Malaysia (SME Corp)organised the FMM SME Conference2016 with the theme Beyond EconomicGrowth: SMEs Meeting Global Challenges.YB Dato’ Seri Ong Ka Chuan, SecondMinister of International Trade andIndustry officiated the conferencewhich was held on November 16,2016 at Menara MITI, Kuala Lumpur.Some 128 participants attendedthe conference.

The conference served as an avenuefor SMEs, representatives from relevantorganisations and industry players tobetter understand Malaysia’s currenteconomic situation, opportunitiesfor SMEs arising from the variousinitiatives announced in the Budget2017, impact and opportunitiesof trade agreements as well asopportunities for the exchange ofbest practices and knowledge. SMECorporation Malaysia’s Chief ExecutiveOfficer, Datuk (Dr) Hafsah Hashimalso shared the findings of SME Corp’s2016 3rd Quarter Survey whichshowed that 42% of the SMEsanticipated their business to remainstable in the next six months, while29% expected improvement.

YB Dato’ Seri Ong Ka Chuan in hiskeynote address urged SMEs toparticipate and leverage on thenumerous programmes, initiativesand incentives offered by Governmentagencies. These incentives weredesigned to enhance SMEs productivity,innovation and competitivenessand to help them leap forwardinto new and emerging markets.YB Dato’ Seri also encouraged SMEsto exploit digital technology toexpand internationally.

The conference speakers included Dato’Palaniappan Joseph from SatakeTechnologies Sdn Bhd, FMM CouncilMember, Tiong Khe Hock from OmronTechnologies Sdn Bhd, Dato’ MohdRazali Hussein from Malaysia ProductivityCorporation, Bryan Tan from Locus-TOnline Sdn Bhd, Peter Lam from PelicanConcepts, Norazman Mat Ali from MIMOSBerhad and Fadzlan Abu Bakar from MIDF.The conference also featured a PowerLuncheon Talk by Michal Golebiewskifrom Microsoft Malaysia Sdn Bhd.

FMM SME Conference 2016 – Beyond EconomicGrowth: SMEs Meeting Global Challenges

Michal Golebiewski, Chief Marketing &Operations Officer of Microsoft Malaysia

Sdn Bhd engaging participants during thePower Luncheon Talk

YB Dato’ Seri Ong Ka Chuan, Second Minister of International Trade and Industrydelivering his keynote address

From left: Dato’ Dr Ir Andy Seo, FMM Vice-President, Datuk (Dr) Hafsah Hashim, CEO SME Corp,Tan Sri Saw Choo Boon, FMM President, Datuk Dr AT Kumararaja, CEO SEED, Shoba Rani

Panneer Selvam, Head of Development, SAME during the Town Hall Session


UPDATES

As businesses approach the two-yearmark in the implementation of theGoods and Services Tax (GST), theRoyal Malaysian Customs Department(Customs Department) will be auditingGST registered companies as part ofits Blue Ocean Strategy. The DirectorGeneral (DG) of Customs Department,Dato’ Sri Khazali Ahmad revealed that50,000 companies were identified forthe first phase of the audit to ensurethat they were on the right track.In the first two weeks of the audits,the Customs Department found

that over 33% of companies auditedhad encountered problems with theGST regime.

Taking cognisance of the above,FMM organised the FMM GSTSeminar: Latest Updates and TaxAudit Compliance for Manufacturerson October 11, 2016 to guide taxpayers to prepare for GST audits.The event was attended by over100 business owners. Teh Kheng Eanfrom the Customs Department, TanEng Yew from Deloitte Malaysia andAslina Joned from the GST Appeal

Tribunal updated participants on thelatest GST rules and decisions andprovided information on how taxpayerscould appeal against a DG’s decisionthrough the GST Appeal Tribunal.

FMM will be organising variousGST workshops focusing on specificareas such as drop shipment,approved traders scheme anddisbursement and reimbursementin 2017. For further details, pleasecontact Maygelah Siva of theFMM Secretariat at tel: 03-62867200or e-mail: [email protected].

GST Tax Audit Compliance for Manufacturers

A meeting was held on November 17,2016 to discuss required changes tothe antiquated maritime legislationsin Malaysia i.e Carriage of Goods by SeaAct (COGSA), Bill of Lading AnalogousAct and Admiralty Jurisdiction Act.FMM was represented by Tan Sri SawChoo Boon and Tan Sri Yong Poh Kon,while International Malaysian Societyof Maritime Law (IMSML) wasrepresented by its Patron of Honour,Tun Dato’ Seri Zaki Tun Azmi andSecretary, Jeremy M. Joseph.

Highlights of meeting were as follows:

• COGSA is a revision of the COGSA 1950,to bring Malaysia up to the speedwith 1968 Hague-Visby Rules. This is asignificant legislation that determinesthe respective responsibility andlimits to liability of ship owners andexporters/importers. Amending COGSAwill promote certainty to the shipowners and reduce evidential burdenon Malaysian exporters and importers,at the same time will help to avoidexpensive litigation and the timeconsuming preparation over litigation.

• It is necessary for Malaysia to moveaway from reliance on the currentEnglish Bills of Lading Act 1855 thathas been superseded in England by

the English 1992 COGSA becausethe current law affects the rights ofimporters to sue ship owners for lossor damage to cargo as the right istied to the passing of legal title andproperty in the cargo. Singaporeamended their laws ten years ago.

• Currently the Court of Judicature Act1964 provides that the High Court ofMalaya shall have the same admiraltyjurisdiction as the Court in Englandand Wales under the Supreme CourtAct 1981 of the United Kingdom.

The meeting proposed Malaysia tohave its own Admiralty JurisdictionAct. The draft bill will be forwardedsoon by IMSML.

The meeting was of the view thatstrengthening the regulatory frameworkwould enhance the import and exportof goods and play a critical role incultivating and maintaining a positiveinvestment climate. It was agreed thatthe meeting outcomes would besubmitted to the Special Task Force toFacilitate Business or PEMUDAH.

FMM Discussion with the International MalaysianSociety of Maritime Law

From left: Tan Sri Yong Poh Kon, Tan Sri Saw Choo Boon, Tun Dato’ Seri Zaki Tun Azmi with JeremyM Joseph (right) at the discussion on Maritime Legislative Change proposed by the IMSML

For further enquiries, please contact Ms Sandy/Ms Kwai Kaun, email: [email protected]/[email protected]


UPDATES

The 15th joint meeting of theMalaysia-Singapore Business Council(MSBC) was held on November 16,2016 in Singapore and co-chaired byDato’ Lim Say Chong from Malaysiaand Dr Robert Yap from Singapore.FMM is the Secretariat to MSBC.

Issues discussed at the meetingincluded plans to organise jointtrade missions on specific sectorsthat could benefit both countries,establishment of new sub-committeesi.e. e-commerce and start-ups andthe promotion of medical tourism.

The Council was also briefed byDr Francis Hutchinson from theInstitute of Southeast Asian Studieson the proposed High Speed Railproject. The travelling time betweenSingapore and Kuala Lumpur wouldbe reduced to 90 minutes. The twoend stations would be Jurong Eastand Bandar Malaysia. Once constructed,

the High Speed Rail would contributeSGD35 billion to Malaysia andpromote mobility of people fromsecond tier cities to Kuala Lumpur,Johor and Singapore. The projectis estimated to cost betweenSGD20 billion to SGD25 billion.

At the meeting, Dato’ Lim Say Chongannounced his resignation asChairman of MSBC for the MalaysianChapter. MSBC recorded itsappreciation to Dato’ Lim for hisleadership and valuable contributionto the Business Council.

Enhancing Trade Ties with Singapore

Attendees of the 15th joint meeting of the Malaysia-Singapore Business Councilon November 16, 2016


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In recognising the importance of efficient supply chainmanagement in supporting the growth of the economy,FMM organised the 7th Supply Chain Conference onOctober 20, 2016 to update participants on tradeand customs developments that affect supply chainmanagement, best practices in managing supplier-buyer’s relationship and contracts, practical strategies indeveloping talent and instilling ethical values inemployees and supply chain technologies thatenhance company’s competitiveness.

Some 100 supply chain, logistics, procurement,warehouse and production personnel from variedindustries attended the conference. The invitedspeakers were from Ministry of International Tradeand Industry, Royal Malaysian Customs Department,Ernst & Young Tax Consultants Sdn Bhd, TenagaNasional Bhd, THC Consulting Sdn Bhd, SKRINE,Oracle Corporation, IBM and TecForte Sdn Bhd.

Enhancing Supply Chain Strategies

Manufacturing has become morecompetitive than ever. In today’scompetitive environment, manufacturersare seeking ways to maintain profitabilityby increasing productivity and reducingcosts. The mandate for greater efficiencyis leading manufacturers to embrace bestpractices in managing human resourcesat the shop floor, streamlining processesto increase productivity and eliminatingenergy wastage.

In recognising the significant role ofefficient and cost-effective factorymanagement systems to manufacturers,FMM organised the Factory ManagementConference 2016 with the themeHuman Resource, Productivity andEnergy Efficiency on November 22, 2016.

Tan Sri Dr Lim Wee Chai, then FMMVice-President and Executive Chairmanof Top Glove Corporation Bhd deliveredthe Keynote Address on Top Glove –The Journey to ManufacturingExcellence. Tan Sri Dr Lim shared thebest practices of his company as wellas his work-life balance practices withover 70 participants.

FMM Factory Management Conference 2016 –Human Resource, Productivity and Energy Efficiency

Other invited speakers of the conferencewere from Malaysia ProductivityCorporation, Energy Commission,AmLion Toothpaste Mfg. Sdn Bhd,

Linde Malaysia Sdn Bhd, DaikinMalaysia Sdn Bhd, ABB MalaysiaSdn Bhd, Tenaga Nasional Bhd andARBURG Sdn Bhd.

Tan Sri Dr Lim Wee Chai then FMM Vice-President (left) and Tan Sri Saw Choo Boon, thenFMM President moderating the first session at the conference

Panellists at the 7th Supply Chain Conference on October 20, 2016 taking questionsfrom participants


BRANCH NEWS

Kedah/PerlisThe Branch organised the following:

• Dialogue session on Industry –Academia Linkage Dialogue:Review of UiTM Kedah Syllabus onSeptember 19, 2016. The dialoguesession chaired by BaharuddinMajeed, Chairman of HumanResources Sub-Committee wasattended by 20 members and15 representatives from UiTM.The dialogue provided feedback onthe industry requirements in regardto UiTM Business Studies modules.

• TNB Briefing on the New BillingSystem on September 28, 2016.The briefing was attended by 20 FMMmembers. Hassan Mohamad, AssistantManager Client Service, TNB Kedahbriefed members on the latestTNB billing system.

• CSR Project: Clean-Up Campaign inPadang Meha Industrial Area, Kulimon October 22, 2016. The campaignwas jointly organised with KedahInvest, MIDA, Kulim Local Councilas well as industry tenants. Thecampaign, launched by Dato’ Dr KuAbd Rahman, Kedah Industry &Investment Exco member attractedsome 400 participants.

• GST Seminar on Tax Audit Frameworkon October 26, 2016. The seminar wasattended by 37 participants. Speakersincluded Abd Halim Ramli, Head ofGST Unit, Kedah Customs Departmentand Kao Pei Ting, Tax Consultant,PricewaterhouseCoopers. DesmondChong, Branch Vice-Chairman sharedhis company’s experience andconcerns in implementing GST.

• Special Workshop & Dialogue onIndustrial Development on October 27,2016. The event was jointly organisedby the Infrastructure & Utility Sub-Committee and Sime Darby PropertyBerhad. A total of 130 participantsattended the workshop whichwas officiated by Dato’ Dr Ku AbdRahman, Kedah Industry InvestmentExco member. The dialogue sessionwas chaired by the Branch Vice-Chairman, Tahiruddin Hamdan.

Dato’ Dr Ku Abd Rahman, Kedah Industry & Investment Exco member officiatingthe clean-up campaign

Abd Halim Ramli, Head of GST Unit, Kedah Customs Department, presenting a paper onthe Latest updates on GST

Tahiruddin Hamdan, Branch Vice-Chairman chairing the dialogue session


BRANCH NEWS

PenangThe Branch organised the following:

• FMM Penang SME Forum: Navigatingthrough a Turbulent Economy onOctober 12, 2016. Dato’ Dr. Ir Andy K H Seo,FMM Vice-President presented a paperand facilitated the seminar. Speakers at theseminar included Mohd Zhafry bin Zainol,Senior Economist of Bank Negara Malaysia,Muhamad Zumar Zainudin Director ofSME Corp Malaysia Penang State Office,Badrul Hisham, Director of MATRADENorthern Region and Daniel Haggmark,Managing Director South East Asia ofMonitor ERP System. The seminar wasattended by 70 participants.

Dato’ Dr. Ir Andy K H Seo, FMM Vice-President presenting his paper at the seminar

MalaccaThe Branch organised the following:

• Seminar on Understanding andManaging Employment Misconducton October 11, 2016. The seminarconducted by Heng Poh Suan, FMMHR/IR Advisor was aimed at equipingparticipants with the knowledge ofidentifying employment misconduct.

• Training on Fire Prevention & FireFighting at the Fire and RescueDepartment, Tangga Batu Melaka fromOctober 11 – 13, 2016. Participants werebriefed by BOMBA on knowledge, skillsand techniques in preventing fire andfire-fighting.

• Visit to MAB Kargo Sdn Bhd onNovember 3, 2016. The visit wasled by Steven Yan, member ofCustoms Logistics Sub-Committeeto understand and witness first-handhandling of cargoes and the facilitiesoffered by MAS Kargo Sdn Bhd.Members were also given a tour ofMAS Kargo Sdn Bhd’s warehouseoperations for import and exportof goods.

Participants undergoing a fire simulation exercise during the training from October 11 – 13, 2016

Participants seeking clarification on issues discussed during the seminar on October 11, 2016


PerakThe Branch organised the following:

• Seminar on Understand Your TaxCommitments on September 20,2016. It was facilitated by LamWeng Keat, Tax Director, MichelleLai, Associate Tax Director,Sumathi Ayudarai, Senior TaxManager and Terrence Mooi,Senior Manager from Deloitte Tax& Services Sdn Bhd. 41 participantsattended the seminar.

• A Memorandum of Understandingwas signed between UTAR andthe Branch on September 22,2016 at UTAR Kampar Campus,laying the cornerstone for anindustry-academia collaboration.

• Tea Talk on Distinguishingbetween Retrenchment &Termination on September 23,2016 which was facilitated byErnest Balasingam, Senior Partnerof Gibb & Co.

• The Branch 48th Annual Dinnerwas held on October 5, 2016.Dato’ Mohammad Zahir binAbdul Khalid, State Exco memberrepresented YAB Menteri BesarPerak. The dinner was alsoattended by then FMM Vice-President Tan Sri Dr Lim Wee Chai.

Ir. Prof. Academician Dato’ Dr. Chuah Hean Teik, UTAR President (seated 2nd from left) and Dato’ GanTack Kong, Branch Chairman (seated 2nd from right) signing the MoU on September 22, 2016

Guests and members at the Branch Annual Dinner on October 5, 2016Henry Chong demonstrating the first aidmethods to a group of participants

during the Occupational First Aid Skillsand CPR Training

• 23 participants attended theFMM Institute Perak training onOccupational First Aid Skills andCPR held on October 17 & 18, 2016.

• Seminar on Employment of ForeignWorkers Updates and Current Issueson October 12, 2016 which wasfacilitated by senior officers fromMinistry of Human Resource,

Bestinet, FOMEMA, MyEG andMinistry of Health. The seminarwas attended by 117 participants.

• 48th Annual General Meeting ofthe Branch on October 20, 2016chaired by Dato’ Gan Tack Kong.A total of 27 ordinary membersand one affiliate member attendedthe meeting.


SelangorThe Branch organised the following:

• New Members Networking Sessionon September 8, 2016 facilitatedby Vincent Kuan, Chairman ofMembership Services Sub-Committee.16 representatives from 14 membercompanies attended the session.

• Talk on Double Tax Deduction fromSolar System Investment by Plus SolarSystems Sdn Bhd on September 8, 2016with 50 participants. Poh Tyng Huei,Business Director, Plus Solar SystemsSdn Bhd shared information on taxincentives available to business ownersfor investing in solar installation andmethods to lower operational costs offactories by reduction in electricity bills.

• 3rd FMM Selangor Security ManagementSub-Committee meeting on September20, 2016 at the Ibu Pejabat Polis KontijenKlang Utara co-chaired by Dato’ Ir HjAhmad bin Hasan and ACP Mohd YusoffMamat Klang Utara OCPD.

• FMM Selangor Bowling Challenge2016 on September 24, 2016 with theparticipation of 60 teams from membercompanies and Government agencies.The winners were:ChampionMajlis Bandaraya Petaling Jaya1st runner upDenso Malaysia Sdn Bhd2nd runner upTelekom Malaysia Selangor3rd runner upPerbadanan Kemajuan Negeri Selangor4th runner upKYB-UMW Malaysia Sdn Bhd

• Workshop on How to PreventCommuting Accidents at Lam SoonEdible Oil Products Sdn Bhd, TelokPanglima Garang on September 27,2016 with the cooperation ofPERKESO and Monash University.The workshop was conducted byNurul Syuhada Abdullah, OHSEExecutive of Monash University.

• Dialogue session between YB Dato’Sri Mustapa Mohamed, Ministerof International Trade and Industryand member companies on October 6,2016 at Westports Malaysia Sdn Bhd.The dialogue session was chairedby Tan Sri Dato’ Seri Kong Cho Ha,Chairman of Port Klang Authority.Present were representatives from19 member companies, Governmentagencies and utility companies.

• Briefing on Everything AboutWages on October 6, 2016 byHeng Poh Suan, FMM HR/IR Advisor.

The programme providedparticipants with a betterunderstanding on issuesrelated to wages.

• Branch Chairman Dato’ SohThian Lai represented theBranch at the SelangorInternational Expo 2016 fromOctober 20 – 22, 2016 at theMINES International Exhibition& Convention Centre. The expofocused on three main sectorsnamely Halal, Start-ups andLife-Sciences.

• Courtesy visit cum meetingwith YB Haji Zaidy BinAbdul Talib, Selangor StateExecutive Councillor forInfrastructure, Public Amenitiesand Agro-Based Industries onOctober 28, 2016.

YAB Dato’ Seri Mohamed Azmin Bin Ali, Selangor Menteri Besar (3rd from right) presenting acertificate of appreciation to Dato’ Soh Thian Lai, Branch Chairman (3rd from left)

Dato’ Ir Hj Ahmad Hasan (right) presentinga token of appreciation toACP Mohd Yusoff Mamat Participants at the New Members Networking Session

BRANCH NEWS


BRANCH NEWS

Negeri SembilanThe Branch organised the following:

• OSH Conference 2016 fromOctober 18 – 19, 2016. Theconference was officiated byTuan Hj Izani bin Mohd Zain,Director of DOSH Negeri Sembilanand was attended by 40 participants.

• Branch Annual Dinner onOctober 25, 2016 which wasattended by 360 members.The Guest of Honour was YAB Dato’Seri Utama Hj Mohamad bin Hasan,Menteri Besar of Negeri Sembilan.Highlights of the dinner were thepresentation of the FMM NS SHEBest Practice Award and recognitionof FMM Institute top contributors.

Branch Chairman, Datuk Mohamed Arsad bin Sehan (2nd from left) presenting a token ofappreciation to Tuan Hj Izani bin Mohd Zain, Director DOSH Negeri Sembilan

Eastern

The Branch organised the following:

• Seminar on Overview and PracticalApproach of Malaysian Private EntitiesReporting Standards on October 14,2016. The speaker was Kenneth TamFook Cheong and the session wasattended by 10 participants.

• Training Programme on FirePrevention and Fire Fightingfrom October 25 – 28, 2016in collaboration with PahangState Fire and Rescue Department.

A total of 20 participants attendedthe training conducted byTuan Abd Aziz bin Daud, SeniorAssistant Superintendent, Fireand Rescue Department.

Participants at the Training Programme on Fire Prevention and Fire Fighting from October 25 – 28, 2016


JohorThe Branch organised the following:

• Visit to Manufacturing SolutionExpo 2016 on October 12, 2016at Suntec City, Singapore.The visit was led by theBranch Chairman, Capt (R) HjAbdullah Shariff.

• The 48th Annual General Meetingof the Branch on October 18,2016. There was no election ofOffice Bearers for the term of2016/2017 in view of the approvalof the biennial elections of theBranch Committee members atthe FMM Council meeting onJanuary 27, 2015.

• Seminar on Latest LabourLegislation Review & CurrentIssues on October 20, 2016.The seminar was facilitatedby senior officers from Ministryof Human Resources, SOCSO,Tay & Partners and was attendedby 61 participants.

• Meeting with Tuan Hamiddanbin Maryan, Deputy Director,Johor State Customs Department

on October 24, 2016 to discusson physical inspection of containersof the import/export in Pasir Gudang.The Branch was represented byEiap Eng Khoon, Branch Vice-Chairman and Safiah Ahmad,Chairman of Logistic & CustomsLiaison Sub-Committee.

• Business Networking Opportunities(BON) session on November 28,2016. Rozano Yahaya, Johor StateMIDA Director was invited to speakon Domestic Direct InvestmentInitiatives. The BON Session wasattended by 22 members.

Members at the Manufacturing Solution Expo 2016 led by the Branch Chairman, Capt (R) Hj Abdullah Shariff (5th from left)

Group photograph of the Branch Committee members for 2016/2017 and Secretariat

BRANCH NEWS


SarawakThe Branch organised the following:

• 1st Annual General Meeting ofthe Branch on October 7, 2016.The following Office Bearers for2016/2017 were elected:

ChairmanTuan Haji Othman Abdul RaniCMS Cement Sdn Bhd

Vice-ChairmenIr Michael Hii Ee SingYunco Enterprise Sdn Bhd

Victor Hii Lu ThianAsteel Sdn Bhd

Desmond Cheng Hwa TangSummer Pacific Sdn Bhd

Chiam Tau Tau MienKim Hin Industry Berhad

• Seminar on EPF & SOCSO LatestUpdates, Employer Responsibilities,Various Schemes, Benefits &Procedures on October 17, 2016.A total of 20 participants attendedthe programme which was faciliated

by the Director of SOCSOSarawak, Philip Sangkan andsenior officers from EPF Sarawak,Hoiden Anak Osin, RonneyKhairuddin, Suerticno Taib andRose Marion Anak Ritom.

• The Workforce Development Unit,Chief Minister’s Department incollaboration with FMM InstituteSarawak organised a seminaron Upskilling and Reskillingthe State – What You Need toKnow on November 1, 2016.The seminar was attended bynearly 100 participants and wasofficiated by Datu Haji Len TalifSalleh, Assistant Minister forWorkforce Development andTraining and Assistant Ministerfor Environment Sarawak.

• The Director-General ofMalaysian Pepper Board (MPB),Dr Harry Entebang officiatedthe in-house programme onWorkplace Accident Preventionon November 4, 2016. FMMInstitute Sarawak organised theevent for 35 officers of MPB.

Branch Chairman, Tuan Haji Othman Abdul Rani (seated, 3rd from left) withBranch Committee Members

Participants of the Workplace Accident Prevention Programme on November 4, 2016

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