Berita MICCI highlights the latest initiatives and advocacy undertaken by the Chamber and its Councils on behalf of MICCI Members.

2014 will be a watershed year for Malaysia, with the GE13 out of the way, the UMNO elections going with the same top leadership team and the 2014 Budget only days away. So much of the uncertainty that has hobbled decision making over the last 12 and more months has been removed and there is little excuse now for further procrastination by the Government.

What will CEOs of Malaysian companies make of all this? Will they see Malaysia moving ahead towards its high-income goal despite ongoing sluggishness in the world economy, or will a mood of pessimism prevail with the Malaysian Government failing to take the difficult decisions to generate fundamental reform.

MICCI’s CEO Outlook Luncheon on 28th November at the Sime Darby Convention Centre will provide an opportunity to hear the views of key CEOs in Malaysia covering a range of business sectors.

Under the watchful eye of our chief guest, Dato’ Sri Mustapa Mohamed, the MITI Minister and guided by the well known presenter and moderator, Bettina Khan, we will explore the expectations and fears for the year ahead.

This is an event not to be missed. Come and bring your business colleagues for what we are sure will be a stimulating and informative event.

For further information please contact Kavitha Muthiah at kavitha@micci.com.

BERITAEdition 11/2013 21 Oct 2013

MICCIC-8-8, Plaza Mont‘ Kiara,

No.2 Jalan Kiara, 50480 Kuala Lumpur

tel: 03-6201 7708fax: 03-6201 7705

http://www.micci.com

MICCI - The Premier Advocate for the Business Community

CONTENTS PAGE

Pushing Forward or Dropping Back? 1

MICCI Meets the Chief Secretary to the Government

2

Liberalisation of Skilled Labour Movement

2

MICCI Presses Forward in the East Coast Region

2

Upgrading Immigration Policies 3

In Conversation with the Pharmaceutical Industry

3

Caring for the Environment 3

Contacts & Links 4

1

Pushing Forward or Dropping Back?

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MICCI Meets the Chief Secretary to the Government

MICCI President, Simon Whitelaw led a MICCI delegation to the office of the Chief Secretary to the Government (KSN), Tan Sri Dr. Ali bin Hamsa on 26 September 2013. The aim of the visit was to highlight several concerns raised by Members, particularly the deteriorating levels of engagement between the private sector and civil service.

MICCI expressed its view that there seemed to be a lack of interest on the part of certain government agencies in responding to issues raised by the private sector. A case in point was the status of MICCI’s request for a resolution on the different valuation methodologies for goods subjected to excise duty that has been pending for almost a year.

In addition, the Chamber emphasized the importance of consistency in policy implementation, predictability and quality of output when organising meetings. The Chief Secretary agreed to this and stated that he would be able to call all the Secretary Generals for a meeting, possibly twice a year, provided that there is a solid agenda with issues and recommendations. Tan Sri also suggested that MICCI summarise and submit its issues directly to the Economic Council, which is chaired by the Prime Minister.

The delegation further stated that MICCI would be pleased to contribute to the regulatory review initiatives undertaken by the government.

For further information please contact Wong Hin Wei at wong@micci.com.

Liberalisation of Skilled Labour Movement

MICCI's Human Capital Council organised a briefing on the “Liberalisation of Skilled Labour Movement” on 27 August 2013. In 2012, ASEAN member countries approved the agreement on the Movement of Natural Persons (MNP) at the ASEAN Economic Ministers' Meeting in Cambodia. The

member nations aimed to increase the mobility of labour within the ASEAN region by facilitating entry for the movement of natural persons engaged in trade in goods, services and investments, according to the prevailing regulations of the receiving country.

Under the General Agreement on Trade in Services (GATS), MNP refers to the supply of a service by a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member. However, the GATS does not cover the natural persons seeking access to the employment market as well as measures regarding citizenship, residence or employment on a permanent basis.

The MNP creates inflow of professionals while minimizes the domestic shortage and the domestic supplies. It also creates a room for greater economic competitiveness and increase productivity by the member countries, as well as facilitating the structural transformation and the industrial upgrading.

The briefing provided an overview of the agreement framework, its opportunities, challenges, the way forward and the desired outcomes that member countries shall look forward to when the agreement is implemented in ASEAN by 2015.

For further information please contact Chang Hou Yea at chang@micci.com.

MICCI Presses Forward in East Cost Region

MICCI’s General Committee along with the East Coast Committee held a luncheon dialogue with the Trade and Industry EXCO of Terengganu, Y.B.M. Dato’ Hj Tengku Putera Tengku Awang on 17 September 2013. The purpose of the afternoon was to highlight matters concerning MICCI Members and to obtain the latest information and developments in the State.

MICCI President, Simon Whitelaw in his opening address, welcomed all Members and expressed MICCI’s gratitude to Dato’ Tengku Putera for his time before MICCI East Coast branch chairman, Dato’ Lahuree Sudiran enlightened all present on the branch initiatives. Dato’ Tengku Putera then provided a brief on the direction and developments in the State after which the Deputy Chief Executive Officer of Invest Terengganu, Zulkifly Isa touched on the incentives available for investors and prospects for growth in the State.

Among the issues raised during the dialogue included the increase in port charges, environmental pollution, the progress of the east coast expressway, land matters and the need for certain incentives to be extended to organisations already operating in the region. Both Dato’ Tengku Putera and Zulkifly agreed to look into the matters raised and welcomed the suggestion that more meetings are undertaken in the future.

For further information please contact Shafik Affandy at shafik@micci.com.

MICCI delegation with the Chief Secretary

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Upgrading Immigration Policies

The Immigration Department is upgrading its process and immigration policies that will include work permits and expatriate visas for workers hired by companies all across the country, according to Ministry of Home Affairs Deputy Under-Secretary, Mohd Fardhi Ahmad.

In a briefing organised by MICCI on 11 September 2013, Mohd Fardhi said that there would not be any difficulties in processing expatriate post applications in the Immigration Department by the end of November this year as an automated process will take place.

The Immigration Department is also preparing an online registration for work permits and expatriate visas. Once this commences, permit and visa renewal notices will be sent before the due date to the applicants via mailing system. Apart from that, further employment pass liberalisation will be implemented. However, this is only limited to the 12 critical sectors under the national key economic areas, where the 10-year limit for key expatriate positions will be lifted.

Moving forward, the Expatriate Services Division will serve as a one stop approach to enhance immigration services delivery by providing integrated and seamless services to expatriate including Residence Pass-Talent, Employment Pass, Visit Pass (Professional), Visit Pass (Social) for dependents and Visit Pass (Temporary Employment) for maids and PR-Talents.

For further information please contact Wong Hin Wei at wong@micci.com.

In Conversation With the Pharmaceutical IndustryThe MICCI President, Simon Whitelaw hosted an industry-focused President’s Luncheon for representatives from the pharmaceutical industry on 26 September 2013 at Le Meridien Hotel. The Chamber’s intention was to gather feedback from industry experts in order to accurately represent the industry’s concerns to the government. The organisations present included Bayer Co (Malaysia) Sdn Bhd, GERMAX Sdn Bhd, Johnson & Johnson Sdn Bhd and Zuellig Pharma Sdn Bhd.

Among issues discussed were the Pharmacy Act, 1Care Scheme, IP and trade agreements, research and development (R&D) and smuggling and counterfeiting.

The impending Pharmacy Act, expected to be enforced in 2014 has been proposed to replace the Registration of Pharmacists Act 1951, Poisons Act 1952, Sale of Drugs Act 1952 and Medicines (Advertisement and Sale) Act 1956. The industry believes that the Act is a positive initiative by the government.

With regards to the “1Care Scheme” involving restructuring of the country’s healthcare system, opinion was expressed that while the scheme was intended to reduce the dependence on

the government, it had not yet been fully thought out. In regard to R&D, the Chamber was aware of the lack of research funds available, and while many projects have been completed there remains little commercialisation.

The industry was keen for the Chamber to be actively involved in any public consultation on new laws and to provide the government with adequate recommendations.

For further information please contact Kavitha Muthiah at kavitha@micci.com.

Caring for the Environment

Through the initiative of the Chamber's Environment and Natural Resources Council, Eric Barbier of Ricardo Asia Limited shared a presentation on "Environment Protection Challenges and Solutions" October 2013. Eric related the importance of the environment from business perspective highlighting on three risk factors namely the risk to food and water supply, risk to living conditions and risk to business. These factors have long been debated among environmentalist and the common solutions include air quality monitoring and improvement, waste management and resources efficiency, climate change mitigation and adaptation, as well as urban and transportation planning.

Ricardo Asia believes that one solution does not suffice and that all preventive measures need to be tailored by considering factors such as the inventory or sustainability of natural resources, national institutions and political systems, economic and demographic development status, including carbon market and climate finance.

On the Council's agenda front, some of the initiatives presently being pursued include the implementation to the Air Regulation Amendments Act, iron ore pollution and the government's intention to build three new incinerators. The Council urges Members to get involved in their activities and to provide any feedback on environmental issues affecting their businesses that the Chamber should pursue.

For further information please contact Ilyani Yusof at ilyani@micci.com.

From left: Maikel Kuijpers, Tee Loong Hua, Simon Whitelaw, Thomas Steffen, Radzmi Rahmat, Dato’ Hari Das Nair and Stewart Forbes

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MICCI Councils & Focus GroupsEconomic Policy & Taxation CouncilChair: Kang Beng Hoe (Taxand Malaysia Sdn Bhd)PIC: Wong Hin Wei (wong@micci.com)

Trade & Investment CouncilChair: Tay Beng Chai (Tay & Partners)PIC: Wong Hin Wei (wong@micci.com)

Services (CSIM) CouncilChair: Ken Pushpanathan (MICPA)PIC: Wong Hin Wei (wong@micci.com)

Legal & IP CouncilChair: Linda Wang (Tay & Partners)PIC: Ilyani Yusof (ilyani@micci.com)

Environment & Natural Resources CouncilChair: Dato’ Kok Wee Kiat (Bata (Malaysia) Sdn Bhd)PIC: Ilyani Yusof (ilyani@micci.com)

Security & Crime Council (JASCO)Chair: Rajan Mittal (Metrod Malaysia Sdn Bhd)PIC: Ilyani Yusof (ilyani@micci.com)

Human Capital CouncilChair: Fatimah Merican (ExxonMobil Exploration & Production Malaysia Inc)PIC: Chang Hou Yea (chang@micci.com)

Logistics & Infrastructure CouncilChair: Chris Thiagarajah (SkyBus Ventures Sdn. Bhd.PIC: Chang Hou Yea (chang@micci.com)

Domestic Affairs CouncilChair: Amnah Shaari (Beyond Corporate House Sdn Bhd)PIC: Chang Hou Yea (chang@micci.com)- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Trade Facilitation Focus GroupChair: Raja Kumaran (PricewaterhouseCoopers)PIC: Wong Hin Wei (wong@micci.com)

Education Focus GroupChair: Tina Yeung (The University of Sheffield)PIC: Chang Hou Yea (chang@micci.com)

Tourism Focus GroupChair: Jenny Shabudin (Travcheq Travel Sdn Bhd)PIC: Chang Hou Yea (chang@micci.com)

Headquarters (KL & Selangor)Stewart ForbesExecutive Directortel: 03-6201 7708email: micci@micci.com

Penang & The North Priscilla DawsonBranch Executivetel: 04-227 0589email: penang@micci.com

PerakSubasini UthraBranch Executivetel: 05-253 2233email: perak@micci.com

Malacca & Negeri SembilanMarlina ArisBranch Executivetel: 06-281 6998email: marlina_aris@yahoo.com

JohorNicole StruysBranch Executivetel: 07-221 2358email: miccijb@streamyx.com

East Coast (Administrated by MICCI HQ)Shafik AffandyAssistant Managertel: 03-6201 7708email: eastcoast@micci.com

SabahStella LiewBranch Executivetel: 088-248 332email: sabah@micci.com

Associate ChamberDatuk Abang Hj Abdul Karim, PresidentSarawak Chamber of Commerce & Industry (SCCI)tel: 082-237 148email: scci@streamyx.com

MICCI Contacts