KDN NO. PP 5124/06/2011 (029920) / VOL.04

Q2/2011

INTENSIFYING HUMAN CAPITAL

• CEO Profile Johan Mahmood Merican• 2nd Malaysian International Services Summit• National Minimum Wage• The Whistleblower Protection Act 2010

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MICCI.Presidents Message

Charles IrelandPRESIDENT

MICCI

ADDRESSING MALAYSIA’S BRAIN DRAIN

With the formation of TalentCorp Bhd, the government is in effect accepting that a significant problem exists and that things need to change if Malaysia is to continue to grow and to remain economically competitive and relevant. There is a real need to retain our best people if we are to attract better quality international expertise.

A key debate surrounding the initiative - Should greater emphasis be put on encouraging Malaysian talent to return and at the same time attracting foreign talent to the country or should more focus be put on implementing solutions to reduce the ongoing brain drain. Each approach, needless to say, has its fair share of challenges.

For international talent or high calibre Malaysians to want to be based in Malaysia, it is

“ The increasing dynamism of Malaysia’s Economy has necessitated the creation of Talent Corporation to retain and procure talent required for our continued growth. While this is a step in the right direction it negates the fundamentals that shape the root of the brain drain issue that is now the cornerstone of Malaysia’s aspirations.”

imperative that there be affordable internationally recognised English medium education. Currently, International schools are positioned and built on the premise of exclusivity with a prohibitive fee structure that can only be afforded by the nation’s social elite. Hence, for those who may have the intention to relocate or return to Malaysia, the lack of affordable internationally recognised English medium education for their children, acts as a huge deterrent.

Another area that needs to be looked at is the foreign visa application process. While much

has been done to speed up visa processing and approvals,

more could to be done. Malaysia should consider incorporating more visa services online, creating greater convenience and time efficiency. Besides that, more transparency should also be given to the

visa process as there still seems to be much confusion

surrounding applications and renewals. Australia’s

visa system could be a good reference model.

On the issue of retaining local talent, local pay scales need to be reviewed and

revised to reflect inflation. The problem is becoming increasingly accentuated with the removal of subsidies and rising prices of everyday necessities. There is a growing sentiment amongst Malaysians that one can only attain a decent quality of life abroad.

Essentially, Malaysia has a great deal to offer but it has some way to go before it can lay claim to being the destination of choice to work and live in the region.

In this issue of The Business Advocate Johan Mahmood Merican, CEO of TalentCorp Bhd shares his vision, objectives and discusses the challenges he faces; while MICCI’s Human Capital Council sets out key initiatives being taken to facilitate industry concerns in a special feature on MICCI advocacy. Our related features include insights into the national minimum wage and a review of labour laws. It is my sincere hope the ongoing effort to further enhance the value of our publication benefits members and I encourage and welcome you to contribute.

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MICCI News

Content

Members News

Employee Well-Being Goes a Long Way in Keeping Companies Afloat

President’s Message CEO Profile

Features2nd Malaysian InternationalServices Summit

Human Capital CouncilReview of Labour Laws to Suit Current TrendsNational Minimum WageThe WhistleblowerProtection Act 2010The Special Taskforce to Facilitate Business (PEMUDAH)

To Win the ‘War for Talent’

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Intensifying Human Capital

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.CONTACT Malaysian International Chamber of Commerce and Industry (MICCI), C-8-8, Block C, Plaza Mon’t Kiara, 2 Jalan Kiara, Mon’t Kiara, 50480 Kuala Lumpur T: +603 6201 7708 F: +603 6201 7705

W: www.sandeepjuneja.com .CREATIVE Sandeep Juneja Agency .EDITORIAL stewart j forbes, sandeep juneja, zuraidah kamal, jude liew, kg krishnan .PRINTER Akitiara Corporation Sdn Bhd, 1 & 3, Jalan TPP 1/3, Taman Industri Puchong, Batu 12, 47160 Puchong, Selangor. T: +603 8061 9988 F: +603 8061 9933 W: www.akitiara.com

and advance free enterprise and in particular the interests of the international investment community. Being the oldest private sector business organisation in Malaysia, it maintains a constant evaluation of the business climate and enjoys an excellent dialogue status with the government .DISCLAIMER All opinions and views expressed in this publication do not necessarily reflect the views of MICCI. The publisher shall not be held liable for any error or inaccuracy. No parts of this publication may be reproduced in any form without the publisher’s permission.

.MICCI is an organisation representing the majority of international corporations currently in Malaysia. It aims to promote, protect

Stewart J. Forbes

Charles Ireland Johan Mahmood Merican

competitiveness is a necessary step in the right direction as is a move towards liberalisation. However, the enthusiasm to embrace greater competitiveness and invest the time and resources in achieving this is tempered in some cases by companies who prefer to maintain their dominance in one sector through protection and restrictive practices that limit access and new entrants to the market.

MICCI is fundamentally a supporter of transparent, open, free market practices and pricing. As a relatively small, developing nation Malaysia has over the years consistently punched above its weight in terms of economic performance, in part due to proactive liberalisation in the manufacturing sector leading to strong inward investment flows and high exports.

Today, as regional and global competitors ramp up their performance and emerging

giant economies such as China and India exercise greater and

greater influence, it becomes more difficult for smaller

economies such as Malaysia’s, with its limited consumer

base, to enjoy the same level of growth that was

a feature of the past.

In doing this we are grateful for the assistance and support from many of our Chamber members. Their input and ideas for further improvement of the business environment along with active participation, whether in government debates or Pemandu Labs means that MICCI’s voice is loud and clear throughout the process.

Currently quite a lot of attention is focused on greater liberalisation of many business sectors, particularly in services. This further opening up of various areas for wider participation is revealing some interesting attitudes towards liberalisation as opposed to protectionism.

It is generally agreed that improving Malaysia’s

“Malaysia continues to wrestle with the challenge of restructuring its economy to move up the value chain and achieve high-income status by 2020. MICCI is intimately involved in these discussions, dialogues and labs covering a wide spectrum of sectors and activities.”

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In this context, business sectors that seek to protect their current position by minimising competition do so at the risk of limiting overall national growth. It might seem attractive to retain a large slice of the economic pie but when the pie is not growing fast enough and competitor nations are offering larger and more flavourful pies, then in the longer term the local pie will lose its attractiveness, and who wants a big slice of a small tasteless pie?

MICCI, in its engagement with government has been an advocate for greater competitiveness accompanied by a positive approach to liberalisation and market access. Protection of local businesses should come about through competitiveness and capacity building and not through restrictive practices. The Chamber wants to see a bigger Malaysian pie so that even if it is cut into more slices, everyone will have a larger share.

Stewart J. ForbesEXECUTIVE DIRECTOR

MICCI

BIGGER PIE, MORE SLICES

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INTENSIFYING HUMAN CAPITALAs Malaysia finds itself in the midst of gradual recovery from economic downturns and the consequent implications, it has come to the concern of the The National Economic Advisory Council (NEAC) as per the findings in a recent report that the quality and size of the nation’s high skilled human capital is stunted and possibly backtracking.

The opening statement in this report is apt, intense and all baring in noting “The quality of the Malaysian workforce is regressing. New entrants into the labour force do not meet the skill needs of industry. Deficiencies in language proficiency and social networking aptitude hinder progress in the adoption of cutting edge technology and modern teamwork processes needed for high-value added activities. Without a skilled workforce of adequate scale we risk spiraling towards mediocrity as a nation.”

In this second and concluding report on the New Economic Model (NEM), the NEAC said investors complained that potential workers lacked analytical and problem-solving capabilities. The pivotal need is a radical revamp of the current education system, ranging from the primary to the tertiary levels, and requiring improvements at each level. This constant refrain is well recognised, yet the attempted fixes have failed to yield the desired results.

These instances of mismanagement of previous governmental efforts and strategies have painted the government as being incompetent and ill-equipped in their efforts. These inconsistencies, or what the report refers to as “patchwork of disjointed actions” are

advised best replaced with a single comprehensive reform programme—so as to keep in line with the targeted objectives that in the long run are beneficial to both the flourishing of skilled workforces as well as a high-income economy.

The education system is criticized as in dire need to progress past the ‘nation building stage’ and into efforts of providing tools and skills to compete in the global marketplace and forging close partnerships among stakeholders (such as the Government, industry and academia). It also states in the report that looking back on past and international experiences are key tactics in achieving the desirable outcome in this area.

The NEAC generally agrees that many of the Government’s ongoing education reform initiatives are a step in the right direction and should be implemented consistently for a fuller impact and result, but mentions that the broad policy thrust should also address poor performing schools, especially those in rural areas.

The NEAC also recommended policy measures for intensifying human capital development under the categories of workplace and workforce transformation.

In workplace transformation, it recommended, among other things, enhancing the workers safety net through the introduction of unemployment insurance; establishing a national wage consultative council; facilitating a productivity-linked wage system; and considering a minimum wage policy.

And in workforce transformation, it was suggested undertaking a labour market forecast and survey programme, up-skilling and upgrading the workforce and leveraging women’s talents to raise productivity.

The report said while there was a need for the public sector to be more proactive, the private sector also needed stronger directional initiatives in promoting participation of women through several measures which uphold their welfare.

Through implementation of similar workplace policies to allow for greater flexibility in working hours and the provision of childcare support, while also introducing policies requiring all ministries and agencies to ensure that gender issues were part and parcel of their policy design (with all programmes having

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to incorporate the gender element), the participation of women is viewed as increasingly promising.

Other recommendations in this arena include encouraging the introduction of the Gender Impact Assessment (GIA) in both the public and private sectors while focusing efforts on encouraging private sector firms to place more women executives in decision-making positions.

It was found that just as in the public sector, the situation in the private sector was also not as encouraging, where with the exception of some high profile positions, women still occupy a small proportion of corporate decision-making roles and growth in their numbers has been slow. In 2008, only 6.1% of Malaysian corporate directors and seven of the CEOs of Bursa’s 100 biggest companies were women.

While it remains a fact that there is plenty to be done in gaining intensity in developing Malaysia’s human capital and improving the means of providing more substantial (tangible and intangible) career platform for workers, the consistency of implementation—as centered on in the report—is an element essential in triumphing the national human capital crisis we stand knee-deep in.

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2nd MALAYSIAN INTERNATIONAL SERVICES SUMMIT: DEVELOPING SERVICES TO ENHANCE GLOBAL COMPETITIVENESS In January 2010,

CSIM and MICCI organised the First Malaysian International Services Summit with the support of the Ministry of International Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA).

The services sector in Malaysia provides the opportunity for significant growth under the country’s New Economic Model (NEM). The majority of the 12 National Key Economic Areas (NKEAs) which are designed to act as engines of future growth and competitiveness are service sector related and their contribution to GNI in 2020 will help Malaysia achieve high-income status.

The challenge being faced is to raise the service sector’s GDP contribution to at least 65% by 2020 as targeted in the Third Industrial Master Plan (IMP3). CSIM and MICCI will continue to play their part in the development and competitiveness of the services sector and to assist Malaysian companies take full advantage of the opportunities available both domestically and globally.

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The First Malaysian International Services Summit held in January 2010 attracted some 300 key participants from government and the private sector who heard from many local and international experts from various service sectors. The Second Malaysian International Services Summit will build on the first summit’s success and will put greater emphasis on development and competition in the services sector. Participants will discover the dynamics of the services sector and better understand current and new opportunities and the role of services in stimulating competitiveness in a global market.

The key focus areas of the 2nd Malaysian International Services Summit are:• road map for services sector growth• economic gains from liberalisation in services• critical issues confronting the business sector in liberalising trade in services• trade in services and global competitiveness• market access in services trade• skills and human capital in service• research and innovation in service• potential impacts of Trans-Pacific Partnership (TPP) on global trade

Target participants are:• Policy Makers• Key Decision Makers• Government & Regulation Policy Makers• Business Leaders• Trade & Professional Consultants• Industry Players & Experts• SME Entrepreneurs• Service Providers• Academia

Time Programme8.30am - 9.00am Registration and Morning Coffee8.55am Arrival of Guests of Honor9.00am - 10.00am Welcome and Keynote Address9.00am - 9.10am • Welcome Remarks by Mr Charles Ireland, President, Malaysian International Chamber of Commerce & Industry (MICCI)9.10am - 9.20am • Speech by YB Dato’ Sri Mustapa Mohamed, Minister of International Trade & Industry (MITI)9.20am - 10.00am • Keynote Address by YAB Tan Sri Dato’ Haji Muhyiddin Bin Mohd Yassin, Deputy Prime Minister of Malaysia10.00am - 10.30am Press Conference / Tour of Exhibition Booths / Tea Break10.30am - 12.30pm Plenary Session I: Breaking through the Middle Income Trap Session Chair: YBhg Tan Sri Dr Sulaiman Mahbob, Chairman, MIDA10.30am - 11.00am Topic 1: Boosting the Economy through Services by Mr Andrew McCredie, Executive Director, Australian Services Roundtable, Australia11.00am - 11.30am Topic 2: Services Sector: A Route to High Growth by Professor Amir Mahmood, Deputy Head of Faculty, Assistant Dean International, Faculty of Business & Law, University of Newcastle, Australia.11.30am - 12.00pm Topic 3: Critical Issues Confronting the Business Sector in Liberalising Trade in Services by YBhg Datuk Supperamaniam Manickam, Permanent Advisor to Asia-Pacific Research Network (Artnet) coordinated by UNESCAP, Bangkok, Thailand12.00pm - 12.30pm Q&A Session12.30pm - 2.15pm Luncheon Keynote Address Topic: New Economic Model (NEM) and Transformation of Malaysia into a High Income Nation by YB Senator Dato’ Sri Idris Jala, Chief Executive Officer, PEMANDU (Invited)2.15pm - 2.55pm Plenary Session II: Corporate Presentations2.55pm - 4.15pm Plenary Session III: Trade in Services and Global Competitiveness Session Chair: YBhg Dato’ Dr Kamaljit Singh Harbans Singh, CEO, Special Innovation Unit, Prime Minister Office (Invited)2.55pm - 3.15pm Topic 1: What are the Imperatives for Opening up the Services Sector? by YBhg Dato’ Dr Mahani Zainal Abidin, Chief Executive, Institute of Strategic and International Studies (ISIS) Malaysia3.15pm - 3.35pm Topic 2: Innovation, Competitiveness and Growth: Lessons from Korean Experiences by Dr Sungchul Chung, Senior Research Fellow Emeritus, Science & Technology Policy Institute, South Korea3.35pm - 3.55pm Topic 3: Global Competitiveness, the Case of Air Asia by Mr Azran Osman-Rani, Chief Executive Officer, AirAsia X Sdn Bhd3.55pm - 4.15pm Q & A Session4.15pm - 4.30pm Tea Break4.30pm - 5.30pm Session Chair: Mr Kamal Malhotra, United Nations Development Program (UNDP) Resident, Representative for Malaysia, Singapore and Brunei4.30pm - 4.50pm Topic 4: Potential Impacts of Trans-Pacific Partnership (TPP) on Global Trade by Dr Deborah Elms, Head, Temasek Foundation Centre for Trade & Negotiations, Nanyang Technological University, Singapore4.50pm - 5.10pm Topic 5: Maximising the Benefits of Malaysia’s Involvements in FTAs by YBhg Datuk Dr Rebecca Fatima Sta Maria, Secretary General, MITI5.10pm - 5.30pm Q&A Session5.30pm - 5.40pm Wrap-up5.40pm - 6.00pm Closing by MIDA / CSIM

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YES! Please register the following delegate(s) for the 2nd Malaysian International Services Summit, Developing Services To Enhance Global Competitiveness, 26th April 2011.

1st Delegate 2nd Delegate 3rd Delegate

Name I

Title I

Tel I

Fax I

E-Mail I

Company Name I

Address I

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Early Bird* / CSIM / MICCI Member Regular Fees Group Discount**I RM350 / pax I RM450 / pax I RM350 / pax

* Early Bird - Registration on or before 5th April 2011. ** A group of 3 or more from the same organization.

Member of MICCI ( please tick √ ) I Yes I NoMember of Professional / Business Bodies ( please tick √ ) I Yes I No If yes, please state the organization

PaymentI The full payment must be paid in advance of the event. I Cheques should be made payable to Malaysian International Chamber of Commerce & Industry

Cancellation:I 50% charge on total fee for cancellation made 14 days prior to the event.I 100% charge on total fee for cancellation made less than 14 days prior to the event.I Substitution is allowed for a registered / paid delegate.

For Enquiry & Registration:Malaysian International Chamber of Commerce & Industry (MICCI)Address I C-8-8, 8th Floor, Block C, Plaza Mont Kiara, 2 Jalan Kiara, Mont Kiara, 50480, Kuala Lumpur.Tel I 03-6201 7708Fax I 03-6201 7705Website I www.micci.comContact I Ms Wong Hin Wei, Email: wong@micci.com Ms Chang Hou Yea, Email: chang@micci.com

The Organizers reserves the right to make any amendments and or changes to the event date, programme, topics, speakers and or venue in the best interest of the Summit.

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HUMAN CAPITAL COUNCILThe Human Capital Council (HCC) was established in light of exponentially fulfilling the MICCI’s vision and purpose in influencing the government and its agencies in matters pertaining to the human capital growth at all levels in Malaysia.

Emerging as an advocate of industry to the government in the pursuit of human capital for high-income economy development, the HCC holds an advisory role within the partnership responsible in aiding efforts of establishing sustainable human capital development and growth programmes for the country.

The HCC’s involvement is positioned in two focus groups, being education and human resource. The efforts are strategically segmented according to identified key engagement areas, whereby the respective objectives are achieved by means of tactical exercises in line with the key action plans of the program.

The umbrella strategy in the focus group of education is to create and implement a programme whereby the industry may strengthen ties with academic institutions, while increasing accessibility between the two arenas.

By increasing the rate of public university participation

in internship programs within the industry, and through the implementation of collaborative research with universities, the programme is aimed at matching all academic syllabi and skills to the requirements of the industry in the future.

The addressing of specific educational issues affecting particular industries (as identified from time to time through ad-hoc-task forces) and facilitation of dialogues within the Ministry of Higher Education (MOHE) on how industry needs may be aligned to the education system in relation to the Economic Transformation Programme are among several tactical efforts targeted at maintaining a direct link for the industry into the academic sector to ensure effective human capital growth.

Another key engagement area of the HCC in education is in establishing (and sustaining) lifelong employability for the current and future human capital developments by implementation of systematic quality control measures by means of strategic communication between institutes, ministries and industries.

The strategy adopted in approaching the agenda positions the HCC as a lobbyist for institutes where policies relating to any technical, vocational and training are concerned. The focus here is driving gradual yet substantial improvement of both, the quality and quantity of learning outcomes of students and also workers. The HCC will serve

as an incubator for policies and recommendations to the Ministry of Education (MOE) and MOHE on short-term, medium-term and long-term strategies for the improvement of the country’s educational needs as identified in the 10th Malaysia Plan, The Third Industrial Master Plan, the National Education Blueprint - as well as the New Economic Model (NEM).

Developing a policy position to link the education system to the human resource requirements of the country, as well as ensuring the implementation of the Knowledge Transfer Partnership are seen by the council as vital steps in the solidification of the entire grand scheme.

The human resource focus group on the other hand concentrates on different angles of approaching matters of human capital growth, exercising its involvement in developing high-income economy on a tertiary level. Two key engagement areas comprising efforts in championing labour law reforms in Malaysia and human resource management are specified to align industry advancement and human capital growth to be at par with ongoing economic development.

This can be achieved by providing continuous and consistent recommendations to the Ministry of Human Resources on issues relating to current labour legislation (specifically in the Industrial Relations Act and

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the Employment Act) and the council’s participation in the Law Review Committee, so as to look into and recommend changes to archaic legislations, while simultaneously providing key points to MICCI members on recommendations made to the Ministry on changes to legislations.

The process of identifying outdated legislation or legislation targeted for change and consequently providing feedback on priority areas to reform and abolish legislations by the government is an activity pivotal to maturing economically.

Just as much is the weight placed upon human resource management, to attract, retain and develop Human Capital in a high-income economy by standardizing the promotion of a mutually beneficial work environment for highly productive and competitive workforces.

It is thus important to understand the various aspects of Human Capital Development in the context of NEM (New Economic Model) and develop workgroups to represent MICCI, and also to develop key points on MICCI’s position on Human Resource Management – and in turn to lobby various ministries on policies relating to family, education, employment, hiring and firing, health care and retirement.

To better represent industry views, HCC encourages all members to submit these concerns and issues related to human resources for inclusion in position papers and memorandums presented to the Ministry of Human Resources and its related agencies, such as SOCSO, HRDF, EPF, the Industrial Court and DOSH.

REVIEW OF LABOUR LAWS TO SUIT CURRENT TRENDSMalaysia has slid in the ranking of investor-friendly countries. One of the key reasons identified for this slip is said to be the labour laws in Malaysia which are perceived to be pro-employee when compared to other jurisdictions. Consequently, MICCI has positioned itself as a champion for the reform of labour laws in the country.

The starting point on any discussion about termination of services of employees in Malaysia is s. 20(1) of the Industrial Relations Act 1967 (IRA). It is this provision that allows an employee who considers that he has been dismissed “without just cause or excuse” to make representations seeking reinstatement. In other words, s. 20(1) of the IRA provides security of tenure to employees in Malaysia.

Section 20(1) of the IRA thus makes it incumbent on an employer to have just cause and

excuse to terminate the services of an employee. This in itself, places a fetter on an employer’s right to terminate the services of an employee. And when you add the practical problems that employers have to grapple with in the event a representation under s. 20(1) of the IRA has been filed, it is not easy for an employer in Malaysia to terminate the services of an employee.

MICCI is pushing hard to limit an employee’s recourse to s. 20 (1) of the IRA. One of two areas of reform that MICCI is specifically pushing for is that employees who have not clocked a minimum of at least one year’s service, should not be entitled to make representations under s. 20(1) of the IRA. This is similar to the position in some matured jurisdictions. It is a position that is sensible. Surely an employee who does not have at least one year’s service should be less entitled to security of tenure compared to other employees who have served a company loyally for a significant period of time. MICCI’s view is that in the first year of service, an employer should have more flexibility in determining whether the employee is the right person for them. If the employer

finds the employee unsuitable, he should not be subjected to the stringent and exhaustive need to justify a dismissal. MICCI does not intend this proposal to be an erosion of employee rights. Rather, it is a middle ground proposed to allow for a balance to be struck between employee rights and management prerogative.

The second area that MICCI is pushing for is to have a salary cap for employees who can have recourse to s. 20(1) of the IRA. The IRA was drafted with the intention of providing security to employees in the lower strata of employment. This is the reason why the term used in the Act is “workman”. Surely, a Managing Director or a Financial Controller does not fit the definition of the term “workmen”. It goes against reason to suggest that the level of protection for, say a production worker, and for a Managing Director should be the same.

Whether these suggested reforms to the labour laws in Malaysia crystallizes or not is far from certain. What is certain though, is that Malaysia should not be lulled into a state of complacency to think that our status of a preferred investor-friendly country is beyond threat.

Dharmen Sivalingam is the Executive Director of MECA Employers Consulting Agency Sdn Bhd. MECA is a boutique consulting firm that provides advisory services to employers on all things related to Industrial Relations. Mr. Dharmen Sivalingam’s ultimate ambition is to be the change agent for introducing worldclass IR practices to Malaysian employers. MECA’s website address is www.meca.com.my

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NATIONAL MINIMUM WAGEIn October 2010, the Cabinet had issued a green light for the Human Resource Ministry to implement the minimum wage policy through a specially created council.

Early talks on the matter had put forth the agenda that the National Wage Consultative Council Bill would replace the Salary Determination Council Act 1947. The national implementation of the scheme started to materialize in February 2011 as a minimum wage laboratory was set up to fine-tune the details of the bill to be tabled in Parliament come June, 2012.

The National Wages Consultancy Council Act remains visionary in its objectives, and is expected to benefit around five million workers. In line with the aforementioned targets, Human Resources Minister Datuk Dr S. Subramaniam said the laboratory was strategically and intellectually essential to gather all the necessary information from the various quarters.

The lab is a collaborative effort between the World Bank and the Human Resource Ministry, geared towards designing an optimal minimum wage policy in Malaysia.

“A wide scope has been covered. The figures and how the wage would be implemented were discussed at this laboratory. We are looking at all aspects and whatever

decision taken will be in the long-term interest of the workers,” said Dr Subramaniam, adding that it was direly necessary to engage a system that is agreeable to all stakeholders— one which does not jeopardize the economy or implicate distress upon job opportunities.

Dr Subramaniam stated there had been dialogues between the ministry and stakeholders, seminars and interactive communication on the ministry’s website since last year and the feedback had been encouraging.

It was also mentioned that wage-suitability and its relevance towards the economic situation of the nation are key factors that are being taken into account in the framework stage of formulating the minimum wage setup, and are important considerations to be maintained throughout the plan.

“We have gathered feedback and data from various government agencies. We now have a complete picture of the various sectors involved and details that can be used by the government to decide.”

Besides the eight experts from the World Bank, members of the Senate, Dewan Rakyat, state executive councilors, representatives of workers’ unions, employers’ representatives, non-governmental organizations, and academicians were also invited to give their views.

“The salient points from the discussions during the lab will go towards the drafting of the regulations governing the National Wage Consultative Council, which will be tabled in Parliament,” he said.

Malaysia in recent years has absorbed large numbers of foreign workers to work in low-paying, low skilled fields. Over 230,000 foreign workers entered the country in 2000, mostly from Indonesia and

the Philippines. These workers are employed in jobs which critics label the “3 D’s”-dirty, dangerous, and demeaning. In general, low-skilled foreign workers are employed in positions that most Malaysians simply refuse to do.

During recent economic slowdowns the government has issued warnings to both multinational and local companies to fire foreign workers before Malaysians.

Multinational firms employ few foreigners, so the government warning had little effect in the industrial and technological sectors. Many foreign workers were fired from the agricultural sector, and in many cases were replaced by illegal immigrants.

However, it was said in early 2011 that foreign workers may enjoy a minimum wage salary scale just like local workers if the private sectors minimum wage model is implemented.

Human Resource Minister Subramaniam had responded to Indonesian media reports requesting a minimum wage scale for Indonesian maids, saying that the ministry would first need to prioritize the implementation of a minimum wage structure for local workers before it looks into the minimum wage request for foreign workers.

He added that the only sector that offers a similar wage scale for local workers and foreign workers was the plantation sector.

Dr Subramaniam said the current wage scale for foreign workers was determined by market forces and expected to continue until the government decides on a minimum wage implementation.

Industry is of the view that a national minimum wage policy should take into consideration the need for productivity gains and appropriate governance measures.

Legal protection of whistleblowers is not an entirely new concept in Malaysia. Legislation mandating disclosures of the existence of serious offences involving fraud or dishonesty, as well as attendant protections of the whistleblower, already exist in respect of certain sectors. Because the WPA introduces, for the first time, employment-specific criminal liability for retaliatory action in the workplace, employers must not stigmatise nor allow their employees to suffer reprisal where he or she makes protected disclosures. Protection is extended to include any detrimental action committed against any person related to or associated with the whistleblower. A penalty amounting to RM100,000 or a term of imprisonment of not more than 15 years or both can be imposed on employers for taking prohibited detrimental action.

The WPA defines “detrimental action” broadly, and this includes any action causing injury, loss or damage, harassment or intimidation and interference with the lawful employment or livelihood of any person (including discrimination, discharge, demotion, suspension, disadvantage, termination or adverse treatment in relation to a person’s employment). A threat to do any of the above will also be considered as “detrimental action”. The WPA further provides that for

THE WHISTLEBLOWER PROTECTION ACT 2010

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The Whistleblower Protection Act 2010 (“WPA”) came into force in Malaysia on 15 December 2010. The WPA is intended to provide an all-encompassing protection applicable to the private and public sectors, and is seen as a key instrument in combating corruption by facilitating protected disclosures of improper conduct through immunity from civil and criminal actions, confidentiality of information disclosed and protection from detrimental action of a retaliatory nature.by Woo Wei Kwang and Serene Kan

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employees, no contract shall be terminated or failed to be renewed or payment (due and payable under contract) be withheld, solely on the basis that the employee has made a protected disclosure. However, only disclosures of improper conduct to a designated enforcement agency will be protected by the WPA. This would mean that disclosing improper conduct within the workplace to the employer alone will not trigger the WPA protections. This also applies to disclosures to the media.

It is our understanding that at present 7 key enforcement agencies have been designated with the responsibility to conduct investigations into improper conduct and complaints of detrimental action against the whistleblower. The agencies include the Malaysian Anti-Corruption Commission, the Malaysian Police Force, the Malaysian Securities Commission and the Companies Commission of Malaysia. A centralised agency in the future should not, however, be ruled out.

In fulfilling their responsibilities, the enforcement agencies will be guided by standard operating procedures and template forms to be issued by the Prime Minister’s Department (“Department”). The Department advocates the adoption of a “no wrong door policy”. This obliges an enforcement agency to receive disclosures of improper conduct by whistleblowers even if the subject matter falls beyond their expertise and jurisdiction. The recipient enforcement agency must forward the complaint to the appropriate agency.

Future pronouncements and guidelines will help to clarify and therefore assist stakeholders with compliance of the WPA.

Since the passing into law of the WPA, over 100 informers have volunteered information relating to improper conduct*. 95% of the cases were related to corruption, and were forwarded to the Malaysian Anti-Corruption Commission.

The WPA will have broad and potentially significant implications on all employers in Malaysia regardless of the organisation’s nature of business and the position of the employee. Employers are therefore advised to adopt a proactive self-regulatory approach as well as to introduce comprehensive whistleblower protection policies and procedures to facilitate reporting, with a view of both encouraging disclosures and also mitigating potential legal risks. In light of the impending Personal Data Protection Act 2010 (which is not yet in force), there will also be the need for the employer to be able to strike the right balance where the whistleblower and the alleged wrongdoer are both employees.

*Source: The Star Newspaper

Woo Wei Kwang is a Partner and head of the Employment practice group.

Serene Kan is an Associate in the Corporate Commercial practice group at Wong & Partners, the Malaysian member firm of Baker & McKenzie International, a Swiss Verein.

For comments or queries, they can be contacted at wei.kwang.woo@wongpartners.com and serene.kan@wongpartners.com respectively.

This article is for information purposes only. The contents do not contribute legal advice and should not be regarded as a substitute for detailed advice in individual cases. No decision to act or not to act in a particular way should be taken merely on the basis of this article, and detailed legal advice should always be sought at the earliest possible moment.

Malaysia is rapidly changing the way we do business. We have no choice but to collectively put our shoulders to the wheel and work as one if we are to achieve our ambitious economic goals. The Special Taskforce to Facilitate Business (PEMUDAH) truly embodies this spirit of a united force working for the betterment of Malaysia, as poignantly captured in the slogan “1Malaysia, People First, Performance Now”. The race is on, says Malaysian Prime Minister Dato’ Najib, adding that 2011 is the year of consolidation and execution.

“I am confident PEMUDAH will assume a key role in the implementation of the initiatives under the Economic Transformation Programme, the Government Transformation Programme as well as the Strategic Reform Initiatives outlined in the New Economic Model,” he said.

The year 2010 saw PEMUDAH members working on a range of issues involving both policy and efficiency matters with the cooperation of the various public sector agencies that proved bold changes are possible.

In 2010, PEMUDAH expanded its scope to focus on new areas that needed to be addressed, resulting in the formation of 3 new Focus Groups, being Business Process Re-engineering (BPR), Private Sector Efficiency and Services Liberalisation. These focus groups were borne out of the need to step up efforts in reducing marketplace obstacles for businesses, re-energising the private sector, as well as to make progress in liberalizing the services sector.

PEMUDAH leveraged on the synergy of public-private partnership and collaboration to identify bottle necks, propose resolutions and to seek more timely, transparent and inclusive ways of public sector decision-making and service delivery.

Efforts of the Special Taskforce registered gains on a number of fronts in 2010 and contributed to improved rankings in several key global indices on competitiveness. With the improved quality and timeliness of the delivery of public services to the business community in the past three years, it was recognized that it set in motion an increasing motivation to build on the gains that PEMUDAH had initiated.

Snapshot of 2010 Initiatives: Efficiency ImprovementsStarting a Business• Reduced time taken to start a business from 11 days and 9 procedures to now 3 days and 3 procedures due to: (i) 1 Day incorporation of companies through a single interaction counter; and (ii) MyCoID

The MyCoID concept effectively phases out and eliminates the various serial numbers assigned by each agency for registration, reference and transaction purposes of starting a business.

• To date, the Business Licensing Electronic Support System (BLESS) offers a total of 102 licences/ approvals/permits online.

THE SPECIAL TASKFORCE TO FACILITATE BUSINESS (PEMUDAH)

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Y. Bhg. Tan Sri Mohd Sidek bin Haji Hassan Co-Chair PEMUDAH, Representing the Public Sector

Y. Bhg. Tan Sri Datuk Yong Poh Kon Co-Chair PEMUDAH, Representing the Private Sector

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Employing Workers• Published handbook for employers and employees that provide details on human resource and safety guidelines for micro, small and medium enterprises (also applicable to large business establishments).

e-Payment Facilities• Increased to 281 services from 116 Agencies from previously 278 services.

Closing a Business• The Malaysia Department of Insolvency (MDI) has initiated a project aimed at clearing outstanding winding up cases dated before the year 2000. As at December 2010, a total of 5,816 of backlog cases were cleared.

Dealing with Construction Permits• Institutionalising One Stop Centre (OSC) process at all local authorities.• Approvals for development projects can now be obtained in 6 months from a number of years previously.

Registering Property• Reduced time taken to register standard property from 41 days to 1 day.• Introduced on-line stamping system.• Published PEMUDAH’s 3rd edition of the Guidebook on Registering Property.

Trading Across Borders• The timeline for Port Tariff Approval reduced from 10-12 months to 3 months.• Reduced time taken to provide: (i) Customs Classification Ruling and Advice from 90 days to 30 days; and (ii) Classification Rulings for simple products will be issued within 7 days.

Halal Matters• Reduced time taken to renew Halal Certificate for simple products to 7 days from 30 days previously.• Eliminating the requirement for supporting documents for raw materials and ingredients already certified by Jabatan Kemajuan Islam Malaysia (JAKIM).• Submission of financial documents is only required for products and logistics application.

Kuala Lumpur City Hall (DBKL)• Tightened traffic enforcement in designated areas and organised crackdown on illegal businesses in Petaling Street.• Implemented traffic monitoring system via Sydney Coordinated Area Traffic System (SCATS) and Intelligent Traffic Adaptive Control Area (ITACA) to enhance the traffic flow.• Improved facilities around Pudu Raya bus terminal; upgrading works such as painting, repairing toilets and improvement of other facilities.• Launched KUL - Submission and SMS System on dirty eateries.

Policy ImprovementsAbandoned Housing Projects• As at December 2010, 51 abandoned private housing projects were revived benefitting 6,196 buyers involving 10,881 housing units.

Immigration Matters• Removal of age limit for expatriates’ posts.

• Removal of cooling off period for both expatriates and skilled foreign workers.• Automatic approvals for genuinely employed expatriates with salaries of more than RM8,000 per month.• Expatriates are able to apply for Permanent Resident Status (PR) after living in Malaysia for 5 years.• Long Term Social Visit Pass (LTSP) for 5 years is automatically given to a foreigner married to a Malaysian.• Spouses of Malaysian citizens can work or be involved in any form of business under LTSP without the need to apply for Employment Pass.• Instituted Point System for Permanent Resident application from 30 May 2010.

Government Procurement• Introduced virtual certificate via e-perolehan on 1 January 2010 for registration; replacing physical certificate.

Halal Matters• Obtained all States’ consent to harmonise the management of halal certificate.• Renewal date of halal certificate is allowed to be continued from the last expiry date even if it was renewed earlier.• Hoteliers are allowed to display halal logo on the outside of their restaurant and must clearly indicate that the halal certificate is for its kitchen and not the restaurant.

Distributive Trade Guidelines• Amendments to the Guidelines on Foreign Participation in the Distributive Trade Services Malaysia 2004 were approved by Cabinet on 6 January 2010. The new guidelines were enforced on 12 May 2010.

Competition Policy• The Competition Act 2010 and Competition Commission Act 2010 was passed by Parliament in May and gazetted on 10 June 2010.

Talent tops the CEO agenda for 2011, across all regions- PwC 14th Annual Global CEO SurveyAs companies gear up to start hiring again, the talent crunch is becoming more apparent: two-thirds of CEOs agreed they are facing a limited supply of skilled candidates, particularly in key emerging markets where they are focused on establishing a long-term presence. “As PwC shift eastward, we have to make sure that our corporate culture and operating model reflect the markets there. Trying to get that right is where I spend most of my time”, said Paul Polman, CEO of Unilever.

TO WIN THE ‘WAR FOR TALENT’: FINDING, RETAINING AND MOTIVATING EMPLOYEES WHOSE SKILLS REALLY FIT THE STRATEGY

Becoming the ‘employer of choice’ is a vital advantage in dynamic marketsIn high-growth markets such as China, India and parts of Latin America, talent shortages are as critical as—and, in some cases, more acute than—in the rest of the world. Despite the relatively large numbers of recent graduates in emerging markets, around 40% of CEOs report difficulty forecasting talent availability in these regions. “Finding the appropriate talent to take advantage of the growth prospects of emerging markets is one of the biggest challenges

we face”, said Louis Camilleri, chairman and CEO of Philip Morris International.

Stepping up overseas deploymentsOver half of CEOs were planning to send more staff on international assignments in 2011. The number of international assignments among multinationals increased 25% over the past decade; we forecast a further 50% growth over the next one. In the talent market, skilled employees with experience in more than one country are increasingly

14th Annual Global CEO Survey: Growth reimagined

“The current business environment has exposed weakness in our workforce strategy and limitations in our ability to compete on an international scale. Building an experienced and knowledgeable workforce is the most critical challenge we now face.”Dr. Zhang Xiaogang / President, Anshan Iron and Steel Group Corporation

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*Source: www.pemudah.gov.my

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considered as valuable as their specialties. Close to half of CEOs said they foresee problems deploying experienced employees in other countries.

Casting wider nets in the talent poolThe scale of shortages CEOs describe is leading to some new thinking around existing workforces. Eleven percent of CEOs globally are planning ‘significant change’ to policies to attract and retain more of their female employees. Older workers are another underutilised pool of talent. Meanwhile, over half of CEOs foresee challenges in recruiting and retaining younger employees—the mercurial Generation Y workers who have their own distinct expectations about their relationships with employers.

Aon Hewitt and JobStreet Survey Reports Substantial Gaps Between Asian Companies and Western Companies in Attracting Talents in Malaysia 

A recent survey by Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation (NYSE: AON) and Jobstreet.com reports that job seekers in the region and Malaysia favour working for Western companies than Asian companies. 

In fact, 71% of the respondents rank American companies as their preferred choice, followed by the British and Australian companies. Overall in the Asia region, 78% of the job seekers also voted American

companies as their preferred choice. Amongst the Asian companies, Japan topped the list at 60%. 

The Aon Hewitt and Jobstreet.com Jobseekers’ Preference Survey was launched and conducted in October 2010, and collected about 14,000 responses from job seekers in Asia on their perception about companies in the region. The survey was conducted in eight countries including Bangladesh, India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. A total of 3,440 respondents reside in Malaysia.

The survey points to a substantial gap between Asian and Western companies in terms of their attractiveness to job seekers in Asia. The preference ratings for American and British companies are as high as 84% and 78%, compared to the 66% preference rating received by Japanese companies; best rank Asian nationality in this survey.

“What strikes us is how far behind the Asian companies are in terms of being the preferred employer. With a tight job market and a strong employment outlook for 2011 in the region, Asian companies would need to enhance their value proposition as an employer to attract the talent they want, both at home and around the region,” said Yusuke Higaki, Country Manager, Jobstreet.com Japan. 

The study shows that most job seekers in the region considered ‘excellent work environment’ as the most important attribute when they select an employer (see figure 2A). In Malaysia, 95% of the respondents here rate ‘excellent

working environment’ as the most important attribute. The other key attraction factors are overseas training and development opportunities (75%) and the perception of the product or service quality of the company (68%).

The least attractive factor is the nationality of local top management. Only 37% of the respondents considered having local nationals as local top management to be either “extremely important” or “very important”. (See figure 2B).

The perception of work environment is where Asian companies are trailing behind Western companies in Malaysia and the region.

“Our analysis shows that the desire to work for a company with an excellent working environment is positively correlated with the desire to work for American or British companies but negatively correlated with the desire to work for an Asian company with the exception of Japanese companies,” said Rick Payne, Regional Practice Leader, Human Capital, Aon Hewitt.

For Asian companies, one of the key challenges is to turn the negative perception to a positive perception on the working environment, and effectively communicate and create awareness to the target audiences.

Payne added that, “All else being equal, most job seekers would prefer to join a Western company than an Asian company because of the negative perception about the working environment. Such perception could become a huge stumbling block for Asian

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FIGURE 2A: KEY ATTRIBUTES FOR SELECTING AN EMPLOYER (All respondents, N = 13,964)

FIGURE 2B: KEY ATTRIBUTES FOR SELECTING AN EMPLOYER (Respondents residing in Malaysia only, n = 3,440) 

companies to attract top talent in Malaysia. If Asian companies want to compete for top talent in Malaysia and the region, they need to invest into building an attractive and sustainable employer brand.”

An effective employer brand communicates the employment experience and the expectations of both employer and employee.

*Sources: 1. Aon Hewitt and Jobstreet.com Jobseekers’ Preference Survey, 20102. PWC 14th Annual Global CEO Survey Report, 2011

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CEO JOHAN MAHMOOD MERICAN ON RETAINING TOP TALENT FOR MALAYSIATalent Corporation Malaysia Berhad (TalentCorp) commenced operations in January 2011. As a new Government initiative, it has attracted its fair share of attention and with it, no shortage of commentary of what TalentCorp should do. But one thing that most coverage seems to have in common is to argue on how we should be attracting talent back without necessarily details on why this is needed.

Johan Mahmood Merican is the Chief Executive Office of Talent Corporation Malaysia Berhad. He was formerly the principal private secretary to the minister in the Prime Minister’s Department. For more information on TalentCorp, visit www.talentcorp.com.my

CEO Profile CEO Profile

1 WhatisTalentCorp reallyabout?

TalentCorp was established under the Prime Minister’s Department, primarily with the task to support the talent needs of the Economic Transformation Programme (ETP). The ETP Roadmap intends to push Malaysia’s Gross National Income per capita (GNI) up from RM23,700 to RM48,000 – propelling Malaysia from their current status as a mid-income nation into becoming a high-income one. Such a transformation requires both financial capital and human capital. Further, it is not just an issue of quantity but also of quality, whether in terms of the type of investments or talent.

The industries that drive a high-income economy needs a different kind of worker. In line with the economic transformation, the Electrical & Electronics industry for example, needs to move up the value chain into higher value added activities, particularly a greater emphasis on R&D as opposed to pure manufacturing. The key enabler to this transformation is being able to nurture and attract more engineers with the competencies

for R&D, instead of just having a larger quantity of engineers adept to work at the factory floor. TalentCorp will therefore facilitate and drive initiatives to attract, nurture and retain the talent needed for the economic transformation.

2 So,inessence,is TalentCorpahead hunter?

Contrary to some expectations, we are not a head-hunting firm. However, there is a parallel to headhunters. They engage with individual companies to understand their needs and proceed to secure individual talents to meet those needs. Similarly, TalentCorp will undertake a demand driven approach, but not strictly at the individual company level but more at a sectoral level, engaging with industry, understanding their talent needs and identify required interventions to address those needs, whether in terms of Government policies or through collaborations between public and private sector.

3 Whylookfortalent whenwecandevelop itinstead?

Addressing the talent needs of the nation’s transformation, necessitates casting the net wide in search of talent. The Malaysian diaspora around the world is clearly one important source but not the only source. We need to ensure that the existing talent pool in Malaysia is optimised and at the same time, open to top foreign talent who can contribute to Malaysia’s journey forward.

Diversity is important in a globalised economy. As a high income economy and developed

nation, Malaysia in 2020 will need to be synonymous as a destination for global talent. We would need a vibrant labour market with a wide mix of experiences and perspectives drawn from home and abroad, from Malaysians and non-Malaysians alike.

4 Won’titbeachallenge tobringthesepeople back?

It is not even necessarily the case that one needs to be living in Malaysia in order to contribute. A good example is Professor Danny Quah who lives and works in London. Harnessing on his position and experience, he has been able to play a part in developing the Malaysian economy by being a member of the NEAC and was influential in coming up with the New Economic Model. However, he does all that while holding his position as Head of Economics at LSE. In fact, it is his position that allows him leverage on his networks and resources to contribute to Malaysia’s development.

5 Whatisthebiggest challengeahead foryou?

TalentCorp recognises the need for a human capital Renaissance. There needs to be changes that kickstart a virtuous cycle between talent and industry. Allowing more high-quality talent to work in industry will then enable these industries to move up the value chain. As talents drive the project to succeed, these successes trigger an expansion of economic activity which in turn creates greater demand for talent. Thus, creating a virtuous cycle that drives the growth and development of the

Malaysian economy. Expanding on this cycle of growth is the evolution of industries as they move up the value chain, thus creating not only more jobs, but adding to the diversity of the human capital demand in Malaysia.

6 Sowhatisonthe agendaforthisfirst year?

For this year, we are focusing on initiatives that enhance existing attempts to attract and retain talent. For example, as announced the Immigration Department will shortly be launching a new immigration product, the Resident Pass, which will facilitate top foreign talent to work in Malaysia for a longer tenure. At the same time, TalentCorp is reviewing the Returning Expert Program to enhance the proposition for Malaysian professionals working abroad to return and work in Malaysia. The Government has also invested significantly in sending scholars to leading universities around the world and we therefore need to optimise our return on this investment by ensuring scholars return and contribute.

7 Doyouhaveany messagefor ourreaders?

TalentCorp has its ambit and whilst we accept we cannot solve everything, we are committed to make a difference. We hope to work closely with all stakeholders, in helping Malaysia achieve its developmental aspirations. We are confident many share our passion, in taking on the battle out there in the global arena, to attract and retain top talent for Malaysia.

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JASCO Courtesy Call on the Chief Police Officer of Kuala Lumpur 17 February 2011

With the recent appointment as the new Chief Police Officer of Kuala Lumpur, the Chamber’s Joint Action Security Sub-Committee (JASCO) took the opportunity to pay a courtesy call on YDH DCP Dato’ Pahlawan Zulkifli Bin Abdullah on 17 February 2011.

Led by En Shaik Abbas Ibrahim, the Convenor of JASCO, the purpose of the courtesy call was to congratulate YDH Dato’ on his appointment and to continue the great working relationship and cooperation that MICCI JASCO enjoy with the Kuala Lumpur police which has been the result of a number of valuable initiatives to jointly address issues of commercial crime such as warehouse break-ins and lorry hijackings. It is the Chambers’ hope that this working

relationship will continue to grow from strength to strength under the new CPO.

YDH Dato’ updated members on the measures taken by Kuala Lumpur Police to eradicate crime in Kuala Lumpur.

Among the measures were going forward to achieve World Class Police status in Kuala Lumpur, in terms of services. Other measures include a response time of 8 minutes to any criminal activity and complaints on these activities can be emailed directly to CPO or liaison officers. In addition, motorcycle patrol in the city is set to increase due to growing traffic congestion.

The CPO informed MICCI members that two officers from

D9 division would be nominated as the liaison officers between MICCI & KL Police for support during robberies/hijacks and other related police matters. The Chamber provided some suggestions to the Kuala Lumpur Police to maintain its good record of these contingents. Among the suggestions were to consider conducting regular visits to member companies as it has been proven to be useful in instilling fear among ‘insiders’ in the workplace. It was also suggested that the Kuala Lumpur Police Contingent to conduct a mock drill to test the effectiveness of the Ops-Kargo Standard Operating Procedure and to identify shortcomings for further improvements. The Chamber volunteered to assist in this matter.

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Meeting of MICCI Education Focus Group and Ministry of Human Resources (MoHR)

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Ms. Tina Yeung, Chairman of the MICCI Education Focus Group welcomed Dr. Pang Chau Leong and his team from the Department of Skills Development, Ministry of Human Resources (MoHR) to the 53rd Education Focus Group meeting on 26 January 2011. Dr. Pang provided a detailed presentation and updated information on the role of Department of Skills Development (DSD) and Industry Lead Body (ILB).

MICCI invited Dr. Pang to brainstorm on how a collaborative effort could be formulated to uplift the spirits, soft skills and knowledge of our workforce in the globalize world. The Chamber has been working with a number of Vocational and Technical Colleges (VT’s) on promoting Skills Training in accordance to industry needs and requirements as well as with the Knowledge Transfer Partners which has been adopted in the Economic Transformation Program (ETP). Moreover, MICCI has been involved with the Economic Planning Unit (EPU) on numerous Workshops for Strategy Package for Higher Growth and Structural Change: Providing Adequate Skilled Workforce. The Focus Group agenda is to work together to improve the education system to upgrade the skills of labour force, enhance VT’s employability and other related matters in accordance to the industry requirements.

Dr Pang briefed on the role and functions of the Industry Lead Body (ILB) as follows:

ILB’s function is to ensure relevance of training courses by linking the industry with public and private skills training sectors by conducting occupational analysis on present and future demand and supply of critical skill through the National Dual Training System (NDTS).

ILB also conducts promotion on skills training by developing the National Occupational Skills Standard (NOSS) and other curriculum development through continuous research and development, and accreditation

of Recognition of Prior Achievement (RPA) by giving them an opportunity to obtain the Malaysian Skills Certification.

Currently there are 12 ILB committees set up to ensure relevance of training courses by linking industry with public/private training sectors. These committees comprised specific companies that serve as subject matter experts; supports the ILB in the delivery of key reports and analyses and advises on selected content areas according to sector needs.

ILB interacts with other stakeholders i.e. members Institutions, industry players,

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private and public skills training providers and the existing workforce.

National Occupational Skills Standard (NOSS)NOSS is a standard that stipulates the required competency level expected of a skilled employee who is employed in Malaysia in a specific trade/ occupational area and level. It also defines the level of employment and the path required to achieve the stated competency level. NOSS main characteristics are:i) Based on actual industry occupational requirementsii) Directly related to career structure of an occupationiii) Developed by Industry practitioners and Skilled Workers in the occupation

Currently the there are a total of 1,291 NOSS certified skilled areas/trade.

Level Numbers 1 238 2 395 3 408 4 120 5 112 6 3 7 1 NCS 14

Total 1,219

Malaysian Skills Certification (MSC)This certification offers 5 levels of certification:• Malaysian Skills Certificate (SKM) Level 1• Malaysian Skills Certificate (SKM) Level 2• Malaysian Skills Certificate (SKM) Level 3• Malaysian Skills Diploma (DKM) Level 4• Malaysian Skills Advanced Diploma (DLKM) Level 5

Malaysian Skills Certification is available through 3 ways:1) Accreditation through Recognized Training Institutions Training programmes at accredited centers in the approved content and the specific skills.

2) National Dual Training System (NDTS) Apprenticeship training methods in the National Dual Training System (NDTS) carried out in industry and training institutes.

3) Using Recognition of Prior Achievement (RPA) Method for the Malaysian Skills Certification through past experience (work or training) without taking the test. Candidates are required to submit evidence of skills acquired for review by the Review Officer and confirmed by the External Verification Officer appointed by DSD.

Some of the concerns highlighted were as follows:a) The risk of duplication i.e. overlapping courses by private institutes schools & NOSS at Level 1,2 & 3.

b) Many skilled employees have experience but are not certified. DSD has only one set of curriculum / standards / template (NOSS) for all skills. NOSS has only one template / core skill.

c) Training must be industry based e.g. 2 year apprenticeship. It was suggested to shift the whole training scheme to Industry training with assigned coaches and log books to monitor the training progress.

d) The 10th Malaysian Plan proposes to have 50% workforce to be at Level 3 by 2020 (currently at 27%). This is difficuilt to achieve since there are 500,000 Form 5 leavers and also approximately 40,000 drop outs i.e. those not completing the 11 years compulsory schools.

e) 1000 accreditation training centers – approximately 300 operated by government and 600 by private institutes in rural and urban areas respectively is insufficient to accommodate yearly school leavers and other dropouts.

f) The current MSC holders are recognized by many private sectors e.g. Level 9 employees are receiving salaries of RM 900.00 per month. There is no minimum wages for skilled workers.

g) Many SME companies are unable to release their staff for training (lack of workforce) as they do not have the time and are unaware of the assistance provided by MoHR i.e. HRDF for training.

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MICCI Education Focus Group meeting with The World Bank 26 January 2011

Ms. Tina Yeung, Chairman of the MICCI Education Focus Group welcomed The World Bank to the 53rd Education Focus Group meeting on 26 January 2011. The team consisted of four members:

1) Mr. Philip Schellekens, Senior Country Economist for Malaysia, World Bank2) Mr. Vatcharin Sirimaneetham, Economist, Bangkok Office, World Bank3) Mr. Greg Foo, Kennedy School of Government Harvard University4) Mr. Johann Harnoss, Kennedy School of Government Harvard University

The World Bank and the Kennedy School of Government (KSG), Harvard University has commenced a small study on the macroeconomic implications of brain drain in Malaysia. Two graduate students are currently devoting their final year master dissertation to the topic.

each other d) Recognition of skills in Malaysia is only concentrated at the high-end workforce (paper based recognition) e) No provision for late development in students, as trainings / skills / credits transfers are not available for students to continue their studies in public universities in Malaysiaf) Research & Development infrastructure is inadequate to support potential researchersg) Wages is a long term factor – no effect / attraction to stay and work in Malaysia for both graduates and high-end skilled workers.

The World Bank produces a report every 6 months and the next issue will be on Malaysia - Labor market to compete. Members interested in other reports can visit the World Bank website www.worldbank@org/my

The study consists of two elements: a) a diagnostic component, where the team seeks to characterize the magnitude and composition of the brain drain, and b) an analytical component, which estimates the impact of the brain drain on Malaysia’s potential growth rate.

It is primarily a diagnostic exercise to understand more about the causes of brain drain and possible policy options.

Some of the issues highlighted were:a) Immigration Policies are unfriendly especially on foreign spouses for employment policies. They are unable to work and the yearly permit renewals are too troublesome. b) Education system in disarray – as quality of public schools and the education system is low.c) There is a big gap between the high and middle end workers, which does not complement

Prime Minister Hibiscus Award 2010/2011 18 January 2011

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The Prime Minister’s Hibiscus Award (Anugerah Hibiscus Perdana Menteri), first launched in 1996, is the premier private sector environmental award for business and Industry in Malaysia. The Award, previously known as “Hibiscus Award” was upgraded to the Prime Minister’s Hibiscus Award, following the approval of then Hon. Prime Minister of Malaysia, YAB Dato’ Seri Dr Mahathir Mohamad, in June 1998.

The co-organisers of the Award are four leading private sector non-profit organisations concerned with corporate environmental issues, namely:

• Business Council for Sustainable Development in Malaysia (BCSDM)• Environmental Management & Research Association of Malaysia (ENSEARCH)• Federation of Malaysian Manufacturers (FMM)• Malaysian International Chamber of Commerce & Industry (MICCI)

The Award is endorsed by the Ministry of Natural Resources and the Environment, Malaysia (MNRE), and supported by the Department of Environment (DOE) and the private sector.

To date the 2010/2011 Award launched by the Minister of Natural Resources and Environment on 29 June 2010, has attracted a total number of 41 participants. Of the 41, 30

are large enterprises and 11 are SMEs. According to State, 12 are from Selangor, 5 each from Kuala Lumpur, Negeri Sembilan and Terengganu, 4 from Pulau Pinang, 3 from Sarawak, 2 each from Johor, Pahang and Sabah and 1 from Melaka. On industry category, most are from the petroleum and petrochemicals and food & beverage sectors.

State briefings were held from 24 August to 2 December 2010 to create awareness and inform participants on the overview of the Award and assessment criteria. A total of 9 briefings were organised in Kuala Lumpur, Eastern region (Pahang, Terengganu & Kelantan), Johor, Perak,

Northern region (Penang, Kedah & Perlis), Melaka & Negeri Sembilan, Selangor, Sabah, and Sarawak with speakers from the Technical Committee.

On 18 January 2011, the Technical Committee organised a presentation to brief registered participants on the assessment criteria of the first stage and provided general guidance in answering the questions.

All questionaires had to be submitted to the secretariat by 28 February 2011. Based on their scores, participants will be shortlisted to enter the second stage assessment, a site assessment to be conducted in May 2011.

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2nd Africa-South East Asia Business ForumFollowing the success of the first-ever Africa-South East Business Forum held in Singapore, attended by more than over 250 top decision-makers from Africa and South East Asia, the Africa South East Asia Business Forum 2011 comes to Kuala Lumpur, Malaysia on 19-20 April 2011.

The 2nd Africa South East Asia Business Forum is organized by Africsea and supported by The New Business Practice and will be held over 2 days at the Mandarin

19-20 April 2011Oriental Hotel, Kuala Lumpur. This annual Forum unites international investors, MNCs, business leaders and policy-makers from Africa and South East Asia to identify, assess and better understand the opportunities which exist between these two vibrant regions of emerging growth.

To stay informed and be inspired, do not to miss out on attending this annual Forum, which will enable you to deepen your understanding of African trade and investment

Y Bhg Dato’ Jalilah Baba, Director General of Malaysian Industrial Development Authority (MIDA) was invited to a closed door luncheon meeting with the MICCI General Committee 10 February 2011. Dato’ Jalilah informed that MIDA is now entrusted with extra responsibilities and is the single point of coordination in Malaysia for matters other than manufacturing. According to Dato’ Jalilah, manufacturing sector will remain as the core of industrialization of the economy, in which it contributed 28-30% of the GDP with the services sector accounting for about 60%. The composition of industries however, will change towards those with high value added and high productivity. Dato’ Jalilah emphasized that MIDA has to strengthen its outreach to foreign investors and is happy to engage with MICCI to reach out to investors worldwide.

Meeting with the Director General, MIDA 10 February 2010

opportunities, establish new contacts across Africa and maintain cross-continental business relationships.

To register visit http://africasoutheastasiabusinessforum.eventbrite.com or call +6583777172, For programme information, visit www.africsea.com

make Malaysia into a high-income economy; and lastly, closer to home, some strategic changes we all need to do to achieve sustainable growth.

Dato’ Seri Nazir also noted that Penang was visibly cleaner albeit yet to be greener. It was reported that the State and Local governments were looking into creating more parks and green corridors throughout the State. More impressive is the steely determination of the State Government to reduce solid waste and the “No Plastic Bag” campaign, which will be extended to 7 days a week in 2011.

As an economy that is export-oriented, Malaysia is naturally exposed to the Western recession and slower growth rates in Asia. The continuing uncertainty surrounding the economic recovery in the United States and Europe, plus the new economic landscape represented by a rising China and India, has created the need to reconfigure fundamental economic policies in Malaysia. While there have been a slew of acronyms

Penang and The North Annual Dinner & Dance 2010 19 November 2010

that will lead us to the ultimate goal of 2020, little substance in the form of solid implementation strategies have yet to take shape.

There is a fundamental reason to be anxious: Is the government machinery capable of making a paradigm shift? To be a high income economy means increasing productivity through technology and expertise. It is not that the civil service is resistant to change but that it is too inflexible, salaries are too low to attract the best and the brightest, and as a result, there is little room for dynamism.

For those who have to conduct business and hope to expand operations, there is every reason to be concerned about Penang’s infrastructure, the talent pool and whether it has a liveable environment to attract and retain a highly mobile workforce. If Penang is not to lose its manufacturing sector and de-industrialize, these are factors for serious consideration. Focusing on attracting FDI alone is not enough, for all high income

The evening was “A Hawaiian Luau” with the ballroom transformed to a beach with sea shells, fine sand and palm trees. This was a dramatic change from the formal dinners previously hosted by the Penang Branch. Guests dressed in floral shirt and dresses were greeted with “Aloha” and garlanded with pretty silk leis upon arrival. Although the setting was informal, it was serious business that was brought up when the Chairman of the Branch Dato Seri Nazir Ariff gave his speech.

Having collected views from members of the chamber about the economic and socio-political landscape, he discovered that most of us are concerned about the future, as Malaysia is in the midst of taking pivotal steps to transform its economy. He addressed three key issues surrounding negative sentiments felt by many members. The first has to do with the prognosis for Malaysia in the global economy; the second concerns national economic initiatives particularly efforts to

Penang

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Penang

Luncheon with High Commissioner of Pakistan

HE Mr Masood Khalid, High Commissioner of Pakistan to Malaysia paid his first visit to Penang since his appointment to Malaysia in August 2010. HE made a 2 day visit to Penang and paid courtesy calls to the Chief Minister and Governor of Penang, InvestPenang and other State agencies. On his first day here MICCI Penang Branch Committee played host to Mr Masood, Mr Nadeem, Pakistan’s High Commission’s Labour & Welfare Attache and Honorary Consul General to Pakistan, Dato’ Hj Abdul Rafique Karim. Guests were invited from the various ethnic chambers and FMM.

In his address, Mr Masood informed that Malaysia and Pakistan had signed an FTA in 2008 – a first between 2 muslim countries. He envisioned that it would lead to better economic and diplomatic relationships between the two countries. Pakistan was mainly an agricultural country concentrating

mainly on fish products,yarn, rice and other agricultural produce as its exports. They were now in the process of exporting frozen beef to Malaysia while Malaysia’s largest export to Pakistan was palm oil.

Pakistan is currently in collaboration with the halal industry in Malaysia and has formed a Joint Business Council. The inaugural meeting of the Malaysia-Pakistan Joint Business Council will be held in Kuala Lumpur and it hopes to promote more business interest in both countries. There is also a plan to host an Investment Seminar in the near future. Apart from agricultural products and trade, there is also business for gems and jewelry, cement, food industry, surgical instruments and automobiles.

The successful promotion or progress of trade between

24 January 2011

the 2 countries depends largely on the business community interacting actively in B2B meetings. The business communities are encouraged to look into emerging markets in Pakistan for better connectivity with the outside world.

The expected growth rate for Pakistan is 4.5% as the Pakistan Government is now spending its money on rehabilitation, after the floods that destroyed many areas in Pakistan causing 7 million to be homeless.

During the Q&A session, HE Mr Masood answered the many queries on what, where, who and how to make business contacts in Pakistan. He also informed that there were Pakistani companies interested in investing in Malaysia.

The High Commissioner of Pakistan was full of praise for Penang island and had promised to return.

Penang

economies are dependent on both capital and highly mobile talent.

If Penang is serious about becoming a habitat of choice for business, it must first look and feel as such. Suffice it to say that the clock is ticking and if we are to secure future growth, we have to make our cities more connected and liveable.

Publication of the Penang Blueprint is anxiously anticipated to see the State’s vision, and what the initiatives in realising this vision are. Both the state and federal governments should realize that our cities need regenerating and we need to work as a nation and not as different races and religions. Without that fundamental understanding, our cities will continue to hollow out, opportunities will be lost and we will not be able to escape the middle income trap but instead become a low income country. For the same qualities that brought us this far, can also bring us down.

These issues, including the uncertain global economic recovery and Malaysia’s lack of political will to implement game-changing policies to enable us to move up into the high income bracket are the real reasons for the current mood of anxiety. This is reflected in the growing outflow of capital to other growth centres. It might be convenient to blame everything on politics but we have to get our heads around the reality that issues of governance aside, capital flight is also motivated by greater opportunities elsewhere.

Reading the concept of the high income economy as set out in the New Economic Model (NEM) and the Economic Transformation Programme (ETP), there is enough evidence to show that the Federal Government is serious about moving up the income bracket

at least conceptually, because the 10th Malaysia Plan does not exactly complement these lofty objectives.

It was noted the Budget fails to take the opportunity to introduce further measures to improve the underlying business environment. The Chamber believes that more could have been done to reduce the cost of doing business and there could have been some commitment to overhaul labour legislation, which is seen as having a negative impact on investor perceptions. In addition, the ongoing deferment of an implementation date for GST gives rise to continuing uncertainty within the business community. From a business perspective, MICCI feels that additional stimulus for the private sector could have been provided and that overall, the Budget represents a missed opportunity.

How therefore can Penang move up the value chain? How can we become a truly “developed” state by virtue of our living standards? We certainly do not need to look to the OECD to “endorse” our developed status. The reality is that we are only a developed state if we have a liveable environment; achieve sustainable growth and get our act right for the talent agenda. We also have to look at eradicating hardcore poverty and provide more catalytic interventions not to make communities dependent on subsidies but to genuinely develop their capacity to take advantage of whatever opportunities that will come their way.

The economic turmoil in the West has shown us that a purely market-driven economy is no guarantee for sustainable high living standards but neither is a top-down government knows best policy the answer. The days

of “closing one eye” is well and truly over.

We are living in times of economic change but also of climate change. The rains are going to get heavier, drought will lead to greater competition for resources and sources of energy will be hard fought over. The economic crisis will pass and oil prices will shoot up again. Humanity’s greater dependence on conventional energy will deepen the environmental crisis, increasing global warming and feeding into the chain of further environmental degradation.

Food for thought: what greater opportunity is there then when we already have the knowledge about some of our future challenges? Climate change and the search for renewable energies is a great leveller. Developing countries like Malaysia finally have a chance to catch-up and even surpass developed countries. City regions like Greater George Town comprising our UNESCO World Heritage Site and the new transport hub of Butterworth can be the test bed for innovative new ideas and new technology that can generate the sustainable growth we want.

We not only save ourselves but our children and their children in the process of making Penang more livable. We may feel a lack of confidence now but the future of politics and of doing things in this country will really be motivated by the instinct to survive. Let this chamber lead the way like we have throughout our long history in Penang and Malaysia. We all want “change we can believe” –we just don’t believe politicians alone can deliver positive change. The ball is in our court, so let us see what we do with it in the years ahead.

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Perak

Chief Police Visit to Henkel

Human Capital Development -Perak at a Glance

Perak Branch Chairman

Perak Chief Police Officer, YDH Dato’ Zulkifli B. Abdullah and some of his senior officers visited our member company, Henkel (Malaysia) Sdn Bhd. The meeting was beneficial as Henkel reported that police presence at their factory premises had in fact increased following the CPO’s visit . This had also indirectly raised the level of security in their industrial estate.

Participation in high quality jobs (qualification and skill) seem low in view of Perak’s Human Capital development. There is higher out-migration from Perak leading to negative net migrants. The total number of graduates produced in Perak is on the rise. In 2010 a total of 20,580 graduated from the various institutes of higher learning. For 2011, the forecasted demand

Perakean by birth and raised in Taiping, Mr Leong Hua Kooi was appointed the Branch Chairman for MICCI, Perak on 19 October 2010. He is currently a Senior Vice-President for Commercial Banking at HSBC Bank Malaysia Berhad, Ipoh. His career with HSBC spans over a period of 25 years. His interests include golf, jungle-trekking, gardening and travelling. The Branch welcomes the new Chairman and hopes the good work by our past Chairmen will be continued under his stewardship. Last but not least the Branch records its appreciation and thanks to the past Chairman, Mr Lim Si Boon.

figures in the different sectors of the economy are as follows:

Trade & Tourism - 2,000 jobs Retail - 1,200 jobsAutomotive - 4,000 jobsMarine & Shipbuilding - 10,00 jobs

Multiple reports point to lack of employability competencies as a key issue with local graduates,

During their discussions the CPO raised the subject of Rakan Cop which would be useful to deter future crimes in their industrial estate. Following this, Henkel launched the Rakan Cop programme at its premises with good participation from its neighbouring factories.

stating that they lack confidence, communication skills and language proficiency. Meanwhile, universities are not well-prepared to equip graduates with skills competencies that reflect industry needs. In job placement process, mismatch in expectations of graduates and employers impedes employment opportunities.

19 October 2010

14 December 2010

Perak

Twin Creeks Ground Breaking Ceremony

Ground breaking ceremony of the proposed RM1bil solar cell plant in Perak was officiated by the Deputy Prime Minister YAB Tan Sri Muhyiddin Yassin. In attendance were the CEO and founder of Twin Creeks Technologies Inc (USA), Dr Siva Sivaram and the Perak Menteri Besar Dato’ Seri Dr Zambry Abd Kadir.

Investment updates in Perak:1) Twin Creeks Malaysia is a joint venture between US-based Twin Creeks Technologies Inc, Perak State Development Corp and a state government subsidiary, The Red Solar (M) Sdn Bhd.2) Vale International SA will invest USD 900 million in iron- ore transhipment project in Lumut.3) Bio Dcity@Meru Raya project with a total investment of RM1.0 billion for Bio D initiatives.4) Perak Innovation & Creative Resource Centre costing some RM20mil will collaborate with Spacetoon International.

Twin CreeksDeputy Prime Minister Tan Sri Muhyiddin Yassin said the Government was working on building strong research and development (R&D) to

support innovation in the solar production value chain. He also pointed out that solar had been identified in Malaysia’s Economic Transformation Programme (ETP) roadmap as a major growth area for the country. Twin Creeks will manufacture solar cells using its patented technology.  Red Solar would be the exclusive distributor for the solar cells and panels for the country and South-East Asia. Phase 1 of the plant would begin with a production capacity of 100MW in 2012 which would be raised to 500MW in 2014. Twin Creeks Malaysia planned to continue with the second phase construction of the plant in 2015 on 15 ha stretching to Perak Hi-Tech Park.

Vale InternationalThe project will likely start in July or August this year. The multiplier effect of the downstream activities is expected to triple Vale’s initial investment. Local companies involved in iron ore, steel, fabrication, shipbuilding, canning and tin will be subcontracted to participate in the downstream activities. In line with the project Vale will develop an iron-ore complex including its own jetty in Teluk Rubiah, lumut. This will be Vale’s largest factory outside Brazil.

BioDcityThe initial development of BioDcity@MeruRaya will cover an area of more than 8,000 acres and the components will consist of the MSC Cybercentre@MeruRaya, PHPT Industrial park, forest arboretum park, innovation centres and centres of excellence, residential, commercial and government precincts and so forth. It will be the main growth centre for Ipoh City under the Ipoh Local Plan 2010-2020.

Perak Innovation and Creative Resources Centre (PINCER)PINCER is a component of the development of BioD initiatives. It is an ICT and technology-based resource centre to nurture and grow innovation and creative businesses to steer the State towards developed status by 2015. PINCER will act as a springboard for the MIND industry. Under K-Perak 2010, the ICT industry will be developed based on 4 ICT components known as the MIND (Multimedia Content, ICT Outsourcing, New Media and Research, Design & Development).

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Johor

President’s visit to Johor

Dialogue Session with Johor Industrialists on Supply Chain

MICCI President, Mr Charles Ireland, visited Johor and had a dinner with a number of the chamber’s Johor Members as well as several potential members. The dinner was held at Thistle Johor Bahru on 22 March 2011. A brief presentation was made to brief those present on the latest MICCI developments and updates on current economic issues e.g. MITI and Pemandu Labs etc.

The Branch Vice Chairman, Mr YK Ng initiated a dialogue between JSIC (Johor State Investment Centre) and Mr. VK Lai from University Science & Technology Malaysia (MUST) to work on “Innovation Accelerators in Global Supply Chain” focused on Johor State.

22 March 2011

17 February 2011

Companies in food and agriculture, E&E, textiles, chemical based, telecommunications, energy and automotive inudstries were the main categories of study. Many members of the Johor Branch participated actively in contributing their views and opinions for MUST to submit a working paper to the PM’s Department.

Johor

Tea Reception for MIDA Director, Johor

Courtesy of Mr Philip Skitch of Thistle Johor Bahru, the Johor Executive Committee organised a tea reception on 27 January 2011 for the new MIDA Director, Johor – Encik Zainal Abdul Rahman.

The event was arranged immediately after the Branch Monthly Committee Meeting. It was a casual and friendly exchanging of greetings and information. Encik Zainal accepted the opportunity to have a better understanding of operations of MICCI’s operations, and in return he had updated the Committee with information on recent visits of potential investors to the State.

27 January 2011

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East Coast

The Eastern Region Branch had a dialogue with the Pahang Water Supply Department on 24 January 2011 hosted by FPG Oleochemicals Sdn Bhd, Kuantan. The Department was led by Ir Roslan Abd Rahman, Deputy Director of Distribution.

Ir Roslan gave an overview of the water supply system in Kuantan for industrial areas in Gebeng, Bentong, Temerloh, Mentakab and Semambu. According to a water demand analysis study conducted, it is projected that supply in Kuantan would be insufficient by 2012. To address this shortage, the Panching water treatment plant (capacity of 160 mld) being constructed, is expected to go onstream by then. Under Kuantan water supply Phase 3, RM276 million had been allocated for proposed projects by ECERDC and JBA Pahang. He also updated on the main reservoirs in Gebeng industrial area and water distribution system as well as the schematic scheme for new

supply distribution in Panching and Semambu. Measures have been taken to reduce the high level of non revenue water (NRW).

The water supply in Pahang conformed with World Health Organisation (WHO) standards for clean water supply in terms of turbidity, pH, chlorine, total coliform, eColi, aluminium and iron content. Causes for water supply interruptions are breakdown of water intake and plant, power outage to pump house and plant, siltation at intake points, broken pipes and intake points above river level when the level is low.

The Department and members had a dialogue on their issues and concerns which included unplanned water interruptions in industrial areas and measures to mitigate and address such interruptions, water pressure and availability in Kuala Lipis and Penjom as well as the progress of the water transfer project from Pahang to Selangor.

Dialogue with Pahang Water Supply Department 24 January 2011

Sabah

He said the signing of the MOU was important for Sabah. It heralds big business participation of Sabah businessmen in their oil and gas industry and offers at least a thousand high-paying jobs to local skilled technicians and engineers.

Musa also announced at a recent convocation of the Institut Teknologi Petroleum Petronas (Instep) in Kota Kinabalu that Petronas will build a training school in Kimanis in two years. Hanista Eyong, 24, Marvina Wilfred, 21, and Dayangku Dayana Pengiran Arshad, 23, were among 211 Instep graduates from Sabah who received their diplomas after a two-year course in petroleum production and other technical disciplines.

They are the only women among 1,041 students in the 2007 intake who have graduated as skilled petroleum technicians from the Instep campus in Terengganu state. And they join the few women in a man’s job in the oil and gas industry working at the Sabah Gas Terminal in Gayang, Sepanggar Bay, about 40km from Kota Kinabalu.

About 7,000 have graduated from Instep as skilled petroleum technicians and engineers since its inception in 1988. About one-tenth of them are Sabahans.

*Source: Insight Sabah

Big business and plenty of high-paying jobs for Sabahans

It’s an exciting time for the oil and gas industry in Malaysia. Accounting for about a fifth of national GDP, it is expected to more than double its contribution to national income to 241 billion ringgit ($740m) by 2020. It will create 50,000 jobs largely for skilled petroleum technicians, engineers and geologists. Sabah gets a head start in Kimanis, a sleepy fishing town on its west coast, with the building of the 2.4-billion-ringgit 104-hectare (250-acre) Sabah Oil and Gas Terminal (SGOT).

There will be a one-billion-ringgit 300-megawatt gas-fired power plant and a 5.5-billion-ringgit 500km (313-mile) gas pipeline that links Kimanis to Bintulu in neighbouring Sarawak state. And more multi-billion ringgit projects are in the offing: An oil refinery and an oil and gas training school.

On an 830-hectare site in Sipitang, 50km south of Kimanis, there are plans for a urea-making plant, a pilot training school, a deepwater port and an airport with hangers for helicopters that fly workers to oil rigs. Another 300-mw gas power plant in place of a coal-fired one is most likely to be built in the east coast town of Sandakan.

Suria Capital’s SCHB Engineering Services Sendirian Berhad will lead a consortium to build the Kimanis power plant.

Petronas, the national oil company, has awarded the SGOT contract to NCSB Engineering Sendirian Berhad which has partnered Samsung engineering Co Ltd. Last month NCSB signed a memorandum of understanding with the Sabah chapter of the Malay Chamber of Commerce of Malaysia and the Sabah Oil and Gas Contractors Association (SOGCA) to carry out 800m ringgit (30%) of the contract. Much of it is centred on civil, electrical, mechanical engineering works, supplies and services for Sabahans.

Awang Buhtaman, representing Sabah oil and gas contractors, signed an MOU with Hamed Sepawi, chairman of NCSB Engineering Sendirian Berhad. And there is euphoria over recent discovery of oil and gas fields off the shores of Sarawak that will boost national oil and natural gas reserves by 2% and 3%. As of last year, Malaysia has oil reserves of 5.8 billion barrels and 85 trillion cubic feet of gas reserves.

Sabah has 11 trillion cubic feet of gas and 1.5 billion barrels of oil in reserves. Last year the Borneo state produced slightly more than a quarter of the nation’s daily 637,000 barrels of oil, according to chief minister Musa Aman.

Great Expectation of Sabah’s Oil and Gas 15 October 2010

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ASEAN Australian New Zealand FTA Seminar

Sabah

11 January 2011

MICCI Sabah Branch had coordinated a seminar on ASEAN-Australia-New Zealand Free Trade Agreement recently in Kota Kinabalu by the speaker, Mr Paul Martins, Senior Trade and Investment Commissioner. More than 90 members and guests who attended the seminar gained exposure to trade and investment opportunities under the new Free Trade Agreement signed in February 2009 and come to effect on 1 January 2010.

Within the boundary of the agreement, Australia is opening up its market with eliminated tariffs on 90% of Australia’s exports to the potential population of 600million people with RM6 trillion of GDP within the parameter of ASEAN, New Zealand and Australia.

Paul’s presentation touched on other interesting aspects such as the Australia’s trading partners in the world, where 17% of which were with Malaysia at a total worth of RM42billion (AUD$ 14billion) from the year 2008 to year 2009.

For the full presentation members are encouraged to contact the MICCI Sabah Branch office for a copy.

forests, about the size of Singapore. He opened the Maliau Basin Studies Centre and launched a 10-year study of the stability of altered forest ecosystems (SAFE), the world’s biggest ecological experiment to find out whether forest ecosystems changed by logging and oil palm cultivation are stable enough to support biodiversity.

Musa said Najib understands that Sabah’s greatest asset is its pristine natural environment which attracts more than two million tourists to exotic wild animals such as the Sumatran rhinoceros, orang utans, proboscis monkeys, wild plants and marine life.

The coal power station on the doorstep of Darvel Bay would have threatened the Coral Triangle there which has about a third of the world’s coral reefs and fish, according to environmentalists.

“While Sabah has to increase power supply for its development, it cannot do it at the risk of endangering our natural environment,” Musa said. “As a responsible government, our priority is to protect the environment for the well-being of the people.”

Musa said the Barisan Nasional government under Najib listens to the people. “I know there have been objections to the proposed coal power plant,” he said. “Today is proof that such objections have not fallen on deaf ears. The BN government under Najib has the political will to take the higher road and not bring coal to Sabah.”

*Source: Insight Sabah

Malaysia has scrapped plans for a controversial 1.3-billion-ringgit ($422m) 300-megawatt coal-fired power station in the east coast of Sabah fearing it could destroy its exotic jungles, wildlife, corals and other marine life, Sabah chief minister Musa Aman announced today.

The federal and state governments would now look at “alternative energy such as gas to meet Sabah’s electricity needs,” he told reporters after a cabinet meeting in Kota Kinabalu.

“Prime minister Najib Razak understands that we can’t have power supply at the expense of the people’s welfare and environment,” Musa said, adding that Najib has ordered Tenaga Nasional Berhad, the national electricity company, and Petronas, the national oil company, to consider liquefied natural gas (LNG) to generate electricity particularly for people and industries in the east coast which is short of power.

Industry sources said a gas-fired power plant would most likely be

sited in energy hungry Sandakan, north of Lahad Datu.

State officials said the decision to dump the coal plant was expected. The Sabah government rejected it in 2008 when Tenaga proposed to site it in Silam on the doorstep of the protected forests of Lahad Datu’s Danum Valley, home of the endangered Sumatran rhinoceros.

Last August the department of environment rejected the company’s environmental impact assessment of its new 69-hectare site in an oil palm estate of the Federal Land Development Authority (FELDA) at Lahad Datu’s Sinakut.

But it was Najib’s visit to Maliau Basin on January 29 that finally killed the coal plant. Accompanied by Musa, Najib was deeply touched by the “lost world” that he saw. He pledged to conserve Maliau Basin, which has buried coal and gold, as a world heritage site.

He is the first Malaysian prime minister to visit the untouched 58,400-hectare basin of virgin

Sabah

Malaysia Dumps 1.3 Billion Ringgit Sabah Coal-fired Plant 16 February 2011

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Members News

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GAB’s wellness program provides our employees with information on:• How to adopt a physically active lifestyle• Achieve and maintain healthy weight• Establish and maintain good nutrition• How to become and stay smoke-free

GAB conducts regular ‘Lunch & Learn’ sessions on how to adopt a healthy lifestyle monthly. Every ‘Lunch & Learn’ menu consists of a healthy meal alternative – ‘Food of the Month’ that employees can adopt in their lives. There are also ‘Wellness Newsletters’ on how employees can make small changes to their everyday lives in order to live a healthier lifestyle.

We care for our employees and want an engaged workforce. We encourage Work-Life Balance with our Flexi-Time policies and our Home Early program where all employees are expected to leave the office by 6pm once a week.

At GAB we believe that the program’s a company has in place greatly affects the way a person functions in his/her job. With that believe we have in place safety, fitness, nutrition, health monitoring and comprehensive health coverage for employees

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Employee Well-Being Goes a Long Way in Keeping Companies Afloat 26 October 2010

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