federation of mal a y s ian manufac turers oct … bia octdec 201… · innovation pocket talks by...

OCT – DEC 2017 | VOL: 4 /2017 | www.fmm.org.my | KDN NO.PP 16730/08/2012 (030376)

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

04 COVER STORY FMM – MIER Business Conditions Survey

09 NEWS HIGHLIGHTS FMM Signs MoU with Pembangunan Sumber Manusia Berhad

17 SME NEWS Pocket Talk by Agensi Inovasi Malaysia and Business Opportunities Networking

COVER STORY

04 FMM-MIER Business Conditions Survey Results for 1H2017

NEWS HIGHLIGHTS

08 Green Marketing: Strategies for Sustainability Brands

Innovation Pocket Talks by SME Corporation Malaysia and Malaysian Global Innovation & Creativity Centre

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

Editorial TeamMadeline LohGeneral Manager (Trade)

Esther BoeySenior ManagerInternational Business Division

Florance S. GabrielAssistant ManagerCommunications and Publications Unit

AdvertisementsFlorance S. GabrielAssistant ManagerCommunication & Publications UnitTel: 03-62867200Email: [email protected]

Published ByFederation of Malaysian Manufacturers(7907–X)

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

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

09 FMM Signs Memorandum of Understanding with Pembangunan Sumber Manusia Berhad

12 Duty Exemption and Drawback for Manufacturers

FMM Visits SKF Bearing Industries (M) Sdn Bhd

2 | BIA@FMM | OCT – DEC 2017

Negeri Sembilan

Malacca

Sarawak

Johor

Sabah

Eastern

TRADE NEWS

14 Fight Against Counterfeiting

SME NEWS

17 Pocket Talk by Agensi Inovasi Malaysia and Business Opportunities Networking

HR/IR CORNER

16 Domestic Inquiry

Constructive Dismissal

BRANCH NEWS

18 Kedah/Perlis

Penang

Perak

Selangor

30 NEW MEMBERS

OCT – DEC 2017 | BIA@FMM | 3

NEWS HIGHLIGHTSCOVER STORY



COVER STORY

NEWS HIGHLIGHTS


Datuk Noraini Soltan, FMM Vice-President and Chairman of FMM Women inBusiness Committee (3rd from right) moderating the Q&A Session

The 9th edition of FMM Marketing &Branding Conference with the themeGreen Marketing: Strategies forSustainability Brands” was held onAugust 10, 2017. The conference aimed

at sharing practical experiences ongreen marketing as well as to enhancemarketing strategies in developingsustainability brands. More than 80participants attended the conference.

The invited speakers were fromGovernment agencies, researchand media agencies as well asnon-Governmental organisations,eco-friendly manufacturers and serviceproviders including GreenTech CatalystSdn Bhd (GreenTech Malaysia Group),Ipsos Malaysia Sdn Bhd, Digi-X, DigiTelecommunications Sdn Bhd, MalaysianGlobal Innovation & Creativity Centre(MaGIC), Justlife Group Sdn Bhd,Havas Media Group Malaysia, The TrulyLoving Company Sdn Bhd and TeachFor Malaysia.

Conference participants gainedinsights on consumers’ perceptionson sustainability and trust, acquiredinformation on green businessopportunities and effectivemarketing strategies to driveconsumers’ engagement.

Green Marketing: Strategies for Sustainability Brands

On August 17, 2017, FMM EntrepreneurshipCommittee organised Innovation PocketTalks with SME Corporation Malaysia(SME Corp Malaysia) and Malaysian GlobalInnovation & Creativity Centre (MaGIC)which were attended by 24 participants.

SME Corp Malaysia’s Senior Manager,Aminuddin Mohamed presented the1-Innocert Certification Programmeaimed to encourage entrepreneursto venture into high technology andinnovation-driven industries. Certifiedcompanies under the programmewill be given a fast-track access whenapplying for Government incentivesto fund and market their productsand services. Benefits and opportunitiesfor certified companies includesInnovation Voucher (worth RM500,000),eligibility for Green Lane Policy Incentiveand access to Business Coaching.

Chin Xiao Yao, Senior Manager ofVentures, MaGIC shared on theCorporate Entrepreneurship

Innovation Pocket Talks by SME Corporation Malaysiaand Malaysian Global Innovation & Creativity Centre

Responsibility, a national initiative tofacilitate greater corporate and privatesector involvement in entrepreneurshipdevelopment across Malaysia. Bycollaborating with entrepreneurs,

corporates can introduce more agilityto their operations, disrupt existingbusiness models, provide access toadjacent markets and adopt a moreentrepreneurial mindset.

Aminuddin Mohamed of SME Corp Malaysia presenting his paper on1-Innocert Certification Programme

OCT – DEC 2017 | BIA@FMM | 9JUL – SEP 2017 | BIA@FMM | 9

On July 11, 2017, FMM representedby its President Tan Sri Dr LimWee Chai signed a Memorandumof Understanding (MoU) withPembangunan Sumber Manusia(PSMB). The signing ceremonywas witnessed by YB Dato’ SriRichard Riot Anak Jaem, Minister ofHuman Resources.

Apart from FMM, five other employerassociations also signed similarmemoranda with PSMB. The otherfive associations were:

• The Malaysian Employers Federation

• SME Association of Malaysia

• The Associated Chinese Chambersof Commerce and Industry Malaysia

• Malay Chamber of CommerceMalaysia

• Malaysian Associated IndianChamber of Commerce and Industry

The MoU was initiated pursuant tothe amendment of the PSMB(Amendment of First Schedule)

FMM Signs Memorandum of Understanding withPembangunan Sumber Manusia Berhad

Representatives of the six associations with YB Dato’ Sri Richard Riot Anak Jaem (5th from right)

Order 2017 which expandedcoverage and mandatory contributionsto companies with a minimumof ten local employees across allsub-sectors in manufacturing,services and mining & quarrying.

Besides collaboration on promotingawareness, re-skilling and retrainingactivities, the MoU would allowmembers of the associations registeredwith PSMB to receive a one-timegrant of RM5,000 for training feeson a first-come-first-served basis.

YB Dato’ Sri Richard Riot Anak Jaem, Minister of Human Resources (standing, centre)witnessing the MoU signing ceremony between FMM and PSMB

NEWS HIGHLIGHTS


The Government has provided specialconcessions to manufacturers to promotethe expansion of manufacturing activities.These facilities include import dutyexemption and duty drawback formachinery, equipment and raw materialsthat are used directly in the manufactureof finished products. Other such facilitiesare payment of duties under protestwhen there is a dispute and applicationfor duty refunds for over-payment orerroneous payment. Followingconsultations with members, it wasnoted these concessions have not beenfully enjoyed by qualifying businesses.

In order to assist members to obtain abetter understanding and to providea platform to raise issues and concerns,FMM organised the Seminar on DutyExemption, Drawback and Refund onAugust 17, 2017 which was attendedby over 130 participants from membercompanies. Senior officers from MIDAand the Royal Malaysian CustomsDepartment shared their knowledge inthe application and approval processes.

FMM in collaboration with MIDAhas launched a MIDA Advisory Unit.The Advisory Unit is aimed to assist

FMM members in the applicationof sales tax and duty exemptionand to resolve operational issuesrelated to the application. In addition,members will be able to obtainguidance on MIDA related incentives,procedures and requirements.For further details, please contactMaygelah Siva of the FMM attel: 03-62867200 or e-mail:[email protected].

Duty Exemption and Drawback for Manufacturers

On July 27, 2017, FMM organised a factory visit toSKF Bearing Industries (M) Sdn Bhd at Nilai,Negeri Sembilan, participated by 43 representativesfrom 26 member companies. The FMM delegation wasled by Dato’ Nathan K Suppiah, FMM Council Member.

SKF’s factory in Nilai, established in 1991 with abuilt-up area of 145,700 square meters, is one ofSKF Group’s most modern and technologicallyadvanced manufacturing facilities.

The highlight of the visit was learning about SKF’s qualitycontrol processes which were fully automated and equippedwith state-of-the-art machinery. In order to meet itscustomers’ requirements, SKF designed and improvisedthe measuring equipment and ensures that every bearingis checked for vibration levels and radial clearance.

FMM Visits SKF Bearing Industries (M) Sdn Bhd

From left: Michelle Hah, FMM Council Member, Kee Kam Dick, ManagingDirector of SKF Bearing Industries (M) Sdn Bhd, Dato’ Nathan K Suppiah, FMM

Council Member and Gerard Pinto, Senior Manager, Sales Support &Communications of SKF Bearing Industries (M) Sdn Bhd

FMM delegates after the tour of SKF


TRADE NEWS

Cease and Desist LetterMore often than not, brand ownersprefer issuing a cease and desist letterstating their rights and demanding thealleged infringer to immediately ceasethe infringing acts.

The preference for pursuing thismethod is for its cost effectivenessand as a starting point to test thewater. Chances are that the allegedinfringers may comply with thedemand made in the letter to avoidfacing any court actions.

Civil Litigation Civil litigation is generally more timeconsuming and involves greater costs.However a brand owner may pursuethis method where the alleged infringerdoes not respond to the cease anddesist letter; or there is a likelihood thatthe relevant evidence of infringementwill be destroyed or the alleged infringermay dissipate its assets if put onnotice; or the brand owner may sufferirreparable damage; or the infringingmark is not identical to the brandowner’s registered trade mark. A brandowner should consider interimmeasures to prevent alleged infringerfrom destroying relevant evidence,dissipating its assets or causingirreparable damage by respectivelyseeking Anton Piller Order, MarevaInjunction or interlocutory injunction.

This method may also be preferredover the others as the court may awardsubstantial damages on top of costs.Further the court’s decision is likely tohave stronger deterrent effect not onlyagainst the infringer but also againstany potential infringers.

Enforcement RaidsThis is essentially an administrativeaction taken by the EnforcementDivision of the Ministry of Domestic

Trade, Co-operatives and Consumerism(MDTCC) upon receiving complaintfrom the brand owner. The complaintshould preferably be lodged withsome evidence to show that thereis use of an infringing mark oncounterfeit goods.

Enforcement raids are preferredwhere the goods are counterfeitswith infringing marks; or the primaryconcern is to immediately stopthe infringing acts; or other measuresare not available (e.g. where thealleged infringers do not operatein a permanent premise); or thecompensation for damages is nota priority.

The Enforcement Division will usuallyconduct a raid for clear-cut cases wherean identical or nearly identical mark isapplied on counterfeit goods. In otherinstances, the brand owner may haveto obtain a trade description orderfrom the court pursuant to TradeDescriptions Act 2011 declaring thatthere is a false trade description in theapplication of the infringing mark tothe counterfeit goods.

The investigation results of theEnforcement Division will be submittedto the Deputy Public Prosecutor whowill then determine as to whether thealleged infringer should be prosecutedin the court or the offence shouldbe compounded.

Border Measures The Trade Marks Act 1976 providesfor a brand owner to restrict theimportation of counterfeit goodsinto Malaysia. This could be done byway of an application to the Registrarof Trade Marks which needs to besupported by documents andinformation relating to the goodsincluding the arrival time and locationas well as the particulars of thetransporting vessel.

This measure requires the brandowner to bring a trademarkinfringement action in the courtagainst the importer within a timeperiod stipulated in a notice issued byan authorised officer after seizing thecounterfeit goods from the importer.Failure to bring an infringement actionwithin the stipulated time wouldcause the seized counterfeit goodsto be released to the importer andsubsequently the importer may applyto the court for compensation fromthe brand owner.

Although there is no expressedprovision under the Customs Act1967 conferring power on theCustoms to prohibit the importationof counterfeit goods, Section 70Oof the Trade Marks Act 1976provides for ex-officio action wherean authorised officer may takeenforcement action againstcounterfeit goods. The Customsmay therefore take action againstthe importation of counterfeit goodson their own, though, per se this isnot an obligation on them.

Conclusion While there is no shortage on themeasures that a brand owner maytake to enforce its rights, there is noone winning formula. The strategyand solution to be adopted would bepeculiar to the factual matrix, resourceallocation and the brand owner’sappetite for litigation and risks. It isimportant for brand owners to bevigilant in policing the market toidentify counterfeits and to seek legaladvice when made aware of instancesof counterfeit to ensure that theirrights are not compromised.

Article contributed by SKRINE(www.skrine.com). Contact:Ms Charmayne Ong /Ms Sri Komathy,Intellectual Property Division

Fight Against CounterfeitingIt is not uncommon to find counterfeit goods in Malaysia despite stringent actions taken by the authorities againstthe infringers from time to time. The brand owners do also untiringly adopt various measures to curb infringers fromillegally profiteering from counterfeit goods.


Q&A

HR/IR CORNER

FMM has been offering Human Resource/Industrial Relations (HR/IR) advisory services since January 2005.FMM regularly conducts free HR/IR Forums at its Head Office as well as at Branch Offices to provide anavenue for HR Practitioners to network and exchange views on HR matters. Members can also obtain freeadvice on HR issues over the telephone, email or personal consultation with FMM HR/IR Advisors at the HeadOffice. FMM HR/IR Advisors, Heng Poh Suan and K. Kesavan have many years of working experience with theGovernment and private sector. More than 2,000 enquiries are received each year from members seekingadvice from the HR/IR Advisors. Should members need to contact them by email for advice, kindly email [email protected]. Members can also call them at 03-62867200.

Domestic Inquiry

Q1My company is in the glovemanufacturing industry. In 2016we recruited a special assistant to theManaging Director (MD). The practicein the company is to require anundertaking from all new recruits,especially in sensitive positions thatthey shall not be employed, engagedor be concerned in any kind of tradeor business nor shall he serve onthe Board of Directors of any othercompany whilst in his employmentwith our company. Any exceptionto this ruling shall have the expressedapproval in writing of the MD. It isalso stated in the declaration that anyemployee who contravenes thisdeclaration shall be liable to sterndisciplinary action including terminationof employment. It has come to thecompany’s knowledge that this specialassistant is serving as a MD of anothercompany. The company has lost the trustand confidence that was placed on him.Kindly advise what action we can takeagainst him.

AKindly carry out a thorough investigation.If the investigation reveals that he isstill holding the post of MD of thatcompany and has not obtained theexpressed approval of the MD of yourCompany, kindly issue him a showcause letter to explain why disciplinaryshould not be taken against him fornot getting the expressed consentfrom your MD to serve as a MD ofanother company.

If his explanation is not satisfactory,charge him for the misconduct andallow him to explain at a DomesticInquiry. If he is found guilty of themisconduct, the Company candismiss him.

The case law that illustrates this, is theNorizan Bakar vs Panzana EnterpriseSdn. Bhd., (2013) 9 CLJ 409

The Industrial Court, in that casedecided that the said misconductwas not serious enough to a warrantdismissal and awarded back wagesand compensation in lieu ofreinstatement. On appeal, the HighCourt dismissed the application on the grounds that the dismissal wasunduly harsh and was without justcause or excuse, the company wasnot adversely affected, the companywas not a competitor and wasdormant and the Code of Conductthat the claimant signed was merelya guideline.

On appeal to the Court of Appeal,the Court set aside the High Court’sdecision and allowed an order ofcertiorari to quash the award of theIndustrial Court. The Court of Appealheld that no court should substituteits own views in place of theemployer’s views on what shouldbe the appropriate penalty for anemployee’s misconduct.

On appeal to the Federal Court,the court held that the IndustrialCourt had jurisdiction to considerand evaluate the employer’s decisionto dismiss an employee by applyingthe doctrine of proportionalityof punishment.

The Federal Court held that “It is tritelaw that the decision of the IndustrialCourt is susceptible to judicialreview on the grounds of “illegality”,“irrationality”, “procedural impropriety”and possibly “proportionality” underwhich the courts are clothed withpowers to scrutinise the decision notonly for process but also for substance”.

The Federal Court held that themisconduct in this case is not a minormisconduct and held that thedismissal was reasonable.

Constructive Dismissal

Q2One of our junior executive wasdemoted to a lower grade after adomestic inquiry for refusing tocomply with lawful instructions. Notsatisfied with the decision, he notifiedthe company that he is walking outof the company deeming himselfconstructively dismissed and willpursue the matter with the relevantauthority. Kindly advise what isConstructive Dismissal (CD) andwill he succeed in his claim.

ACD means that where an employeehimself terminates the employmentcontract with or without notice byreasons of the employer’s conduct.CD takes place when an employeeterminates the contract by walkingout because of the repudiatoryconduct of the employer.

(continued on page 17)


On July 5, 2017, FMM SMI Committee organiseda Pocket Talk by Agensi Inovasi Malaysia (AIM)and Business Opportunities Networking (BON)session for members. Ir A K Woo, FMM CouncilMember and Vice-Chairman of FMM SMICommittee facilitated the session and wasattended by 38 participants.

Naser Jaafar, AIM Chief Operating Officerdelivered the Pocket Talk entitled “Partnership inInnovation” which focussed on commercialisinginnovative products by companies. During hispresentation, he updated members thatinnovation can either be in new or improvedproducts or processes. This is to ensure SMEs inthe manufacturing sector are ready to moveup the value chain in manufacturing at anaccelerated pace. AIM also provided successstories of SMEs which have successfullycommercialised their products.

The BON session provided participants theopportunity to introduce their companies andpromote their products and services.

Pocket Talk by Agensi Inovasi Malaysia andBusiness Opportunities Networking

SME NEWS

Naser Jaafar, Chief Operating Officer of AIM presenting his paper “Partnership in Innovation”to the participants

Some of the circumstances that canattribute to CD are:

• Reduction of wages, allowancesand commission.

• Withdrawal of some of thecontractual benefits stated in thecontract of service such as free meals,water, electricity, housing, and car.

• Demotion to a lower grade.

• Transfer to a different location notprovided for in the contract.

• Changes in job function.

The basic principles involved in CD issummarised in Bryn Perrins, “IndustrialRelations and Employment Law” whereit states:

In order for an employee to beable to claim constructive dismissal, fourconditions must be fulfilled:

• There must be breach of contract bythe employer. This may be eitheractual or an anticipatory breach;

• The breach must be sufficientlyimportant to justify the employeeresigning or else it must be last ina series of incidents which justifyhis leaving. Possibly a genuine,albeit erroneous interpretation ofthe contract by the employer willnot be capable of constituting arepudiation in law;

• He must leave in response to thebreach and not for some otherunconnected reason; and

• He must not delay too long interminating the contract in responseto the employer’s breach, otherwisehe may be deemed to have waivedthe breach and agreed to varythe contract.

If these conditions are not met,the employee will be held to haveresigned and there will be nodismissal. The onus of proving thatthere was CD lies with the claimant.

This is what CD is about. Now revertingto your case, the junior executive leftdeeming CD is solely for the reasonthat he was demoted. The demotionwas meted out after he was foundguilty of refusing to comply with lawfulinstructions, which is a seriousmisconduct. Based on the aforesaidcircumstances, he will not be ableto prove CD as the Company wasjustified in demoting him after provinghis guilt at the domestic inquiry.

(continued from page 16)


BRANCH NEWS

Participants of Workshop & Dialogue with DOSH & DOE Directors 2017

Kedah/PerlisThe Branch activities includedthe following:

• FMM 2017 Raya BusinessNetworking Session and Dialoguewith TNB on July 20, 2017.The event was a membershippromotion activity whichalso provided networkingopportunities for 60 FMMmembers, potential members andrepresentatives from Governmentagencies. The event was chairedby Dato’ Dr Haminnuddin AbdHamid, Branch Chairman.

• Workshop on Occupational Safety& Health for Polytechnic SultanAbdul Halim Muazam Shah(POLIMAS) from August 14 – 16,2017. The workshop wasconducted for 40 POLIMASlecturers by Yussaiydi Yussof,FMM Institute Trainer.

• Workshop & Dialogue withDOSH & DOE Directors 2017on August 29, 2017. The eventwas attended by 34 participants.Speakers included Basharudin

Dato’ Dr Haminnuddin Abd Hamid delivering the welcome remarks

Abd Rahman, Principal AssistantDirector (Operations), DOSHKedah and Intan Arnieza AbdRazak, Assistant Director, DOEKedah. Hazlina binti Yon, Director,

DOSH Kedah participated inthe dialogue session whichwas moderated by BaharuddinAbd Majeed, Chairman of BranchHRM/ESC Sub-Committee.


BRANCH NEWS

PenangThe Branch activities includedthe following:

• FMM Penang SeminarImplementation of New CustomsHarmonised Systems (HS)Codes 2017 on July 12, 2017with 36 participants. The speakerswere Lee Wing Onn, Head ofClassification, Royal MalaysianCustoms Department (CustomsDepartment), Suhaimi BinSulaiman, Regional ManagerDagang Net Technologies SdnBhd and Suhaili Ismail, SeniorPrincipal Assistant Director, MITI.

• Seminar on “Recent Changesin GST Legislation & AuditFocus & Compliance” on July 13,2017 with 32 participants. Thespeaker was Wan Leng Whatt,former Senior Deputy Directorof Customs Department.

• Training on “Fire Fighting &Fire Prevention” conducted incollaboration with the PenangFire and Rescue Department.The training was conductedby personnel from Penang Fire andRescue Department from July 18 – 20,2017. A total of 21 participants fromnine member companies attendedthe training session.

• 5th Futsal Carnival 2017 on July 30,2017. A total of 64 men’s teams andsix women’s teams participated inthe carnival which was officiatedby YB Puan Chong Eng, PenangState EXCO for Youth & Sports, Women,Family & Community Development.Emico Metalizing Sdn Bhd andFlextronics Technology (Penang) SdnBhd emerged as champions for men’sand women’s teams respectively.

YB Puan Chong Eng (8th from right) with Dato’ Dr Ooi Eng Hock, Branch Chairman (7th from right) at the 5th Futsal Carnival 2017, July 30, 2017

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PerakThe Branch activities includedthe following:

• Courtesy visit to SME Corp Perakon July 18, 2017 led by EdmundWong, Chairman, SMI Sub-Committee. A total of ninemembers participated in the visit.

• The Branch initiated a site visitto Teleflex Medical Sdn Bhd forthe directors of MITI, MIDA, InvestPerak and Jabatan Tenaga Kerjaon July 18, 2017. The purpose ofthe visit was to obtain updateson its expansion programme andmanpower requirements.

• Seminar on UnderstandingEmployee Taxation on July 21,2017. The seminar was facilitatedby Yong Mei Sim, former Senior

FMM delegates with the DOE Director, Haji Abdul Razak Bin Haji Abdul Manap (8th from right)

Assistant Director of InlandRevenue Board and attendedby 67 participants.

• Hands-on Training/Workshop onLatest Changes to Custom’s DutyOrder 2017 & e-PCO OnlineApplication on July 25 – 26, 2017.Mohd Firdaus Agus, CertifiedTrainer from Dagang Netconducted the workshop attendedby 49 participants.

• Courtesy visit to the Directorof DOE Perak Haji Abdul Razakbin Haji Abdul Manap on July 26,2017. The visit was participatedby Safety, Health & EnvironmentSub-Committee members and ledby the Branch’s Sub-CommitteeChairman, Zubair Abdullah.

• Seminar on Free Trade Agreements:What to Look Out For and How toMaximise the Benefits on July 27,2017. The seminar was attended by47 participants and facilitated bySuresh Kaliyana, Senior PrincipalAssistant Director and SharifahAinidotulmusmina binti WanMustapa, Principle Assistant Director,MITI and Suhaimi bin Sulaiman,Regional Manager (Northern),Dagang Net Technologies Sdn Bhd.

• Networking Session withMalaysia-China Hakka EntrepreneursAssociation (MCHEA) memberson August 9, 2017. A total of20 MCHEA members andseven Branch Committee membersattended the session. The sessionwas chaired by Gan Tack Kong,Branch Chairman.

• Seminar on Recent Changes inGST Legislation & Audit Focus& Compliance on August 22,2017. A total of 112 participantsattended the seminar conductedby Wan Leng Whatt, former SeniorDeputy Director of the RoyalMalaysian Customs Department.He spoke at length on the RecentChanges to the Finance Act:The GST Regulations & Orders.

BRANCH NEWS

Lam Kim Hooi, MCHEA President (6th from left) presenting a token of appreciationGan Tack Kong, Branch Chairman (7th from left)

JUL – SEP 2017 | BIA@FMM | 23


BRANCH NEWS

SelangorThe Branch activities included the following:

• FMM HR/IR Forum on July 6,2017 conducted by HengPoh Suan, FMM HR/IR Advisorwith 50 participants.

• A networking session withPengurusan Air Selangor Sdn Bhdon August 8, 2017. FMM’sdelegation of 13 participants wasled by Tan Sri Dato’ Prof. Dr JamesAlfred, Chairman of FMM SelangorUtilities and Infrastructure Sub-Committee while Pengurusan AirSelangor Sdn Bhd was led by itsDirector and Head of Operations,Ir Abas Abdullah.

• Seminar on Goods and Services Tax(GST) Update, Application of the37 GST Tax Code and Impact ofGST in Accounting Treatment onAugust 9, 2017 with 86 participants.During his welcome remarks, Dato’Palaniappan Joseph, Chairman ofBranch Customs Sub-Committeeurged participants to understandbetter and to familiarise on theGST Tax Codes when making aninput tax claim.

• Seminar on Understanding theIntricacies of Withholding TaxObligations in Malaysia on August15, 2017 with 26 participants. Itwas conducted by Yong Mei Sim,former Principal Assistant Directorand Field Audit Manager, InlandRevenue Board.

• Seminar on Free Trade Agreements& Section 99, Customs Act 1967 –Another Way to OvercomeDifficulties in Obtaining MIDA TaxExemption Under Section 14.2on August 16, 2017. The seminarwas attended by 21 participantsand conducted by Gor Kin Siang,FMM trainer.

• Meeting between PengurusanAir Selangor Sdn Bhd, membercompanies i.e RenesasSemiconductor KL Sdn Bhdand Amkor Technology MalaysiaSdn Bhd on August 16, 2017.Jaafar bin Omar, Technical

Manager represented PengurusanAir Selangor Sdn Bhd while MohdAffis Bin Mohamad from theBranch represented FMM members.

• Briefing on The Implementation ofStrategy Initiatives by PembangunanSumber Manusia Berhad – Utilisingthe 30% Consolidated HRDF PoolFund on August 17, 2017. It wasconducted by Murali Muniandy,Assistant Manager of SpecialProject Division, HRDF and a total of44 participants attended the briefing.

• FMM-MITI Half-Day Briefing onPreferential Certificate of Origin (PCO)on August 23, 2017 with 46 participants

from 22 member companies. WanNur Addleen Wan Aminudin, AssistantDirector, Trade and Industry SupportDivision, Ministry of InternationalTrade & Industry explained the rules of origin which is a requirementunder the Free Trade Agreementsfor products to benefit from tariffconcessions or preferential treatment.

• New Members NetworkingSession on August 24, 2017 led byDato’ Andrew Goh and Dato’ NathanSuppiah, Branch Vice-Chairmen.A total of 31 representatives from24 potential member companiesattended the networking session.

FMM Council Members and representatives from Pengurusan Air Selangor Sdn Bhdafter the networking session

FMM members met with representatives from Pengurusan Air Selangor Sdn Bhd onAugust 16, 2017 to discuss on low water pressure issues in their factories


Negeri SembilanThe Branch activities includedthe following:

• Seminar on Electrical SafetyAwareness on July 6, 2017.The seminar was conductedby Tuan Haji Rozali bin Ayed,FMM associate trainer. A totalof 12 participants attendedthe seminar.

• Seminar on the Essentials ofImport and Export Procedureson July 13, 2017. The seminarwas conducted by Goh Kin Siang,former Deputy Director of RoyalMalaysian Customs Department(Customs Department), and wasattended by 13 participants.

• Seminar on Human Resource (HR)for Non-HR: The Essential Knowledgeon Malaysian Employment Lawsheld on July 25, 2017. The seminar,conducted by Chua Ah Ley,former Deputy Director of LabourDepartment, Negeri Sembilan,was attended by nine participants.

• Seminar on Warehouse Safetyon August 7, 2017. The seminarwas attended by nine participantsand conducted by Rahim Jasmin,

Participants of the Seminar on Warehouse Safety on August 7, 2017

Participants of the seminar on Customs Tax Incentives (Exemption) under Section 14.2, Customs Act 1967 & The Latest GST Rules, August 10, 2017

FMM trainer. Among topicsdiscussed were Warehouse Hazard,Manual Handling/Lifting Materialsand Fire Hazards.

• Seminar on Customs Tax Incentives(Exemption) under Section 14.2,Customs Act 1967 & The LatestGST Rules on August 10, 2017.The seminar, which was attendedby seven participants, was

conducted by Goh Kin Siang,former Deputy Director ofCustoms Department.

• Seminar on the Employer’s andEmployee’s Income Tax Reporting onAugust 14, 2017. The seminar wasconducted by Yong Mei Sim, formerPrincipal Assistant Director and FieldAudit Manager, Inland Revenue Boardand was attended by 20 participants.

BRANCH NEWS


MalaccaThe Branch activities includedthe following:

• Seminar on Recent Changes inGST and Legislation and AuditFocus and Compliance on July 18,2017. Wan Leng Whatt, formerSenior Deputy Director of theRoyal Malaysian CustomsDepartment explained that underthe new Section 34A, a prescribeddevice will be installed inregistered companies to enablethe Minister to obtain informationon all supply and paymentreceived. A total of 60 participantsattended the seminar.

• Meeting with Japanese TradeDelegation on July 14, 2017. DatukJeffery Ong, Branch Chairmanco-chaired the meeting with

SarawakThe Branch activities includedthe following:

• Training programme on QualityImprovement Techniques for QualityControl from July 19 – 20, 2017. Itwas facilitated by Muhsin Ahamed,FMM Institute panel trainer andattended by eight participants.

• In-house training on InternationalAutomative Task Force 16949:2016Awareness from July 19 – 21 andAugust 14 – 16, 2017. Hood Atan,FMM Institute panel trainer facilitatedthe training.

• In-house training programmeon Effective Office Administration& Clerical Skills from August 28 –29, 2017. It was attended by27 participants and facilitatedby Dr Jasjit Kaur, FMM trainer.

Yong Mei Sim explaining the impact ofthe latest amendments on Section 15A

of the Income Tax Act 1967

Delegates from Japan with Datuk Jeffery Ong, Datuk Sulaiman Ali and Haffizam Abu Seman, Director, MIDA Malacca

Datuk Sulaiman Md Ali, Vice-Chairman,State Committee on Investment andIndustry. The delegation led by NikkoDoh, Managing Director, Wanoyu Co.Ltd, was aimed at exploringinvestment opportunities in Malacca.

• Seminar on “Understanding theIntricacies of Withholding TaxObligations in Malaysia” on August 22,2017. The seminar was facilitated byYong Mei Sim, former PrincipalAssistant Director and Field AuditManager, Inland Revenue Board.Companies were reminded that withthe latest amendments on Section15A of the Income Tax Act 1967,payments made to non-residents foroffshore services as well as onshoreservices, would be subject towithholding tax.

JUL – SEP 2017 | BIA@FMM | 27

FMM members at Happy Grass Products Sdn Bhd

JohorThe Branch activities includedthe following:

• Factory visits to Happy GrassProducts Sdn Bhd and GreenfarmFood Industries Sdn Bhd on July 14,2017. The visits were organised bythe Branch Entrepreneurship andSMI Sub-Committees led by SawSeong Ho, Branch Vice-Chairman.A total of eight member companiesparticipated in the visit.

• Business networking-cum-visitto Johor Halal Park on July 20,2017. The event was led bySaw Seong Ho, Branch Vice-Chairman and was participatedby 24 participants. Participants

were able to view the currentdevelopment, progress andoverall potential of Johor Halal Park.

• The Branch was awardedby Singapore ManufacturingFederation (SMF) with a Certificateof Appreciation for its supporttowards SMF. The award ceremonywas held in conjunction withSMF’s “Smart ManufacturingSeminar – Digitalisation ofManufacturing in South East Asia”on July 25, 2017.

• The Branch received a businessmission comprising 40 delegatesfrom the Singapore Malay Chamber

of Commerce & Industry on July 26,2017. Gerard R. Sankar, BranchVice-Chairman briefed on FMMand its services. The businessmission networking session wasco-ordinated by MATRADE Johor.

• Business Opportunity Networking(BON) Session among FMMentrepreneurs and key membersfrom Persatuan Usahawan MajuMalaysia on August 18, 2017.The BON session was headed byBryan Lau, the EntrepreneurshipSub-Committee Chairman andattracted 57 participants.

SabahThe Representative Office activitiesincluded the following:

• Promoted job vacancies in membercompanies to fresh graduates atthe two-day SL1M Open Interviewsession at Universiti Malaysia Sabah,Kota Kinabalu from July 22 – 23, 2017.

• Workshop on Misconduct andDomestic Inquiry Procedureson July 19, 2017. The workshopwas conducted by Dr. Jasjit Kaur,FMM Trainer and was attendedby four participants.

Expand Your Productsto Global Markets

Through FMM Directoryof Malaysian Industries

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

BRANCH NEWS


EasternThe Branch activities includedthe following:

• 1st FMM-Customs RoundtableTalk 2017 and DialogueSession with Royal MalaysianCustoms Department (CustomsDepartment), Terengganu onAugust 21, 2017. A total of24 participants participatedin the session. It was co-chairedby Dato’ Haji Masút bin A. Samah,Branch Chairman and Tuan Aididbin Tajuddin, Director of CustomsDepartment, Terengganu.

• Seminar on Recent Changes inGST Legislation & Audit Focusand Compliance on August 29,2017. A total of 34 participantsattended the programme.Wan Leng Whatt, former Senior Deputy Director ofCustoms Department wasthe speaker for the seminar.

1st FMM-Customs Roundtable Talk 2017 and Dialogue Session with representativesfrom member companies

Participants at the GST Seminar on Recent Changes in GST Legislation andAudit Focus and Compliance

Shows Date Location Profile

FMM Trade Fairs 2017/2018

• World Food Kazakhstan Nov 1 – 3, 2017 Almaty, Kazakhstan Food & Beverage • World Food India Nov 3 – 5, 2017 New Delhi, India Food & Beverage• World of Packaging, Shanghai Nov 7 – 10, 2017 Shanghai, China Packaging• Vietnam Foodexpo Nov 15 – 18, 2017 HCMC, Vietnam Food & Beverage• F & B Franchise Expo inconjunction Nov 22 – 25, 2017 Jakarta, Indonesia Food & Beverage with SIAL Interfood• Organic & Natural Products Expo Dec 11 – 13, 2017 Dubai, UAE Organic Product• Cosme Tokyo Jan 24 – 26, 2018 Tokyo Japan Cosmetics• Supermarket Trade Show Feb 14 – 16, 2018 Tokyo Japan Retail Store• Sino Pack & Packin 2017 Mar 10 – 12, 2018 Guangzhou, China Marine & Offshore• Asia Pacific Martime Singapore Mar 14 – 16, 2018 Singapore Packaging

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

NEW MEMBERS

FMM welcomes 53 new members, comprising 39 Ordinary Members and 14 Affiliate Membersthat joined FMM from July to August 2017


Ordinary Members

• AEX System Sdn Bhd

• Amlion Toothpaste Mfg Sdn Bhd

• Appletec Fabricators Sdn Bhd

• AVK Valves Manufacturing MalaysiaSdn Bhd

• Biocare Manufacturing Sdn Bhd

• Daepac Industries Sdn Bhd

• Ecolex Sdn Bhd

• Excellent Chemicals IndustrialSdn Bhd

• Far East Paper Products Sdn Bhd

• Guocera Sdn Bhd

• Hexa Food Sdn Bhd

• Hup Fatt Brothers Engineering (M)Sdn Bhd

• KJM Aluminium Can Sdn Bhd

• Kobe Welding (Malaysia) Sdn Bhd

• Kok Chang Traders Sdn Bhd

• Ledanim Sdn Bhd

• Lutz-Jesco East Asia Sdn Bhd

• Makino Asia Sdn Bhd

• MeHow Medical (M) Sdn Bhd

• Metalfinishing Industries Sdn Bhd

• MMKGLO (M) Sdn Bhd

• NamHwa Paper Industries (K)Sdn Bhd

• Niitsu Turbo Industries (M) Sdn Bhd

• Oriental Oleochem Sdn Bhd

• Oriken Polyurethanes Sdn Bhd

• Rehon Industries Sdn Bhd

• SandFil International (M) Sdn Bhd

• Sangkaya (M) Sdn Bhd

• Secuglass Sdn Bhd

• S-Form System Formwork (M)Sdn Bhd

• Sheng Wang Industries Sdn Bhd

• Shieldtex Sdn Bhd

• Solarvest Energy Sdn Bhd

• Suenyun Sdn Bhd

• Tiggest Fastening TechnologySdn Bhd

• Unity Forging Technology Sdn Bhd

• Vit Makanan (Kuala Lumpur) Sdn Bhd

• Winko Industrial Sdn Bhd

• Wtech Holdings Sdn Bhd

Affiliate Members

• Aladdin Street Sdn Bhd

• Berjaya Higher Education Sdn Bhd

• Bumi Prima Century Sdn Bhd

• Chipseng Heng Enterprise Sdn Bhd

• Chulia Facilities ManagementSdn Bhd

• Fraser & Neave (Malaya) Sdn Bhd

• Infor (Malaysia) Sdn Bhd

• Integrated Cold Chain LogisticsSdn Bhd

• Jasa Integritas Malaysia Sdn Bhd

• Kontron Asia Pacific Design Sdn Bhd

• Maxis Broadband Sdn Bhd

• Merchantrade Asia Sdn Bhd

• Treasure Advisory & Management

• UMLand J-Biotech Park Sdn Bhd

federation of mal a y s ian manufac turers oct … bia octdec 201… · innovation pocket talks by...

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