MICCI - The Premier Advocate for the Malaysian Business Community
BERITA
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Edition 3/2015
12 June 2015
Step Up And Make A Change
Berita MICCI
highlights the latest
initiatives and
advocacy undertaken
by the Chamber and
its Councils on behalf
of MICCI Members.
MICCI organised a leaders luncheon talk by Dato’ Sri Dr James
Dawos Mamit, Deputy Minister of Natural Resources and
Environment titled Climate Change: The Malaysia Agenda in March
2015. The talk was moderated by Dato’ Kok Wee Kiat, Chairman of
the Chamber’s Natural Resources and Environment Council who
invoked the minister’s views on what Malaysia needs to focus on to
ensure a balance between development and the environment.
Dato’ Sri Dr James
Dawos flanked by
Stewart Forbes,
MICCI Executive
Director (to his
right) and Dato’
Kok Wee Kiat.
“The phenomenal economic development
that the world is witnessing would exert
enormous stress on nature and the
environment.”
Dato’ Kok Wee Kiat
The deputy minister stated that over the years, the rise in
temperature due to trapped carbon dioxide and green house gases
have affected global climate and more distressingly, the society. He
believes that business and industry are key players to ensure
sustainability in adopting new environmental policies while affirming
that Malaysia is already actively engaged in international efforts to
formulate policies based on well-grounded scientific research.
“The pledge to achieve a 40% reduction in
carbon emissions intensity (GDP basis)
made in Copenhagen and the subsequent
UN Framework Convention on Climate
Change are but a first step towards
reducing the emission of harmful gases
and curbing global warming.”
Dato’ Sri Dr James Dawos Mamit
Dato’ Sri urged businesses to make positive environmental changes
and consider the various repercussions that climate change has on
the environment.
CONTENTS
PAGE
•
Step Up And Make A Change
1
•
Tackling Corruption And Bribery
2
•
MICCI Engages PEMANDU
2
•
MICCI Meets The Deputy Secretary General
Of MoHR
3
•
NCDs Damaging The Malaysian Economy
3
•
MICCI In Session With PEMUDAH
4
•
Contacts & Links
5
For further information please contact Ilyani Yusof at
[email protected].
1
BERITA MICCI
Tackling Corruption And Bribery
MICCI Engages PEMANDU
MICCI President, Simon Whitelaw and Chris Thiagarajah,
Chairman of the Chamber’s Logistics & Infrastructure Council
led a MICCI delegation to the Performance Management and
Delivery Unit (PEMANDU) in April 2015 with the objective to
raise several matters concerning the business community.
The delegation was greeted by Dr. Fadhlullah Suhaimi Abdul
Malek, Director for NKRA - Improving Rural Development and
NKEA - Agriculture & Communications, Content &
Infrastructure of PEMANDU and his team.
A few key issues highlighted during the meeting included:
Panel of speakers during one of the sessions
MICCI in collaboration with Ethical Alliance organised the 1st
Malaysian Anti-Bribery and Corruption Executive Forum in
April 2015 at the Kuala Lumpur Convention Centre. The forum
drew close to 50 participants and focused on three core
sessions in particular, the Foreign Corrupt Practices Act
(FCPA) & UK Bribery Act; Who Is Most Exposed to Bribery
and Corruption Within an Organisation; and Interpretation of
Anti-Corruption Due Diligence.
Featured speakers included Stewart Forbes (Executive
Director of MICCI), Jagdeep Kairon (Managing Director of
Ethical Alliance), Leas Bachatene (CEO of EthiXbase Pte
Ltd), Chang Hong Yun (Partner at Tay & Partners), Koh Kek
Hoe (Partner at Lee Hishammuddin Allen & Gledhil), Rajan
Mittal (CEO of Metrod Malaysia Berhad), Chuah Yean Ping
(Head of Corporate Compliance & Governance of Sime Darby
Berhad) and Chin Cheen Foong (Head of Internal Audit of AIA
Berhad).
The first session strived to uncover the actual effectiveness of
cross border regulations such as FCPA and UK Bribery Act
and the practicalities behind implementing and enforcing such
legislations while the second session recognised that
comprehensive training and education is critical as people in
general are the largest risk in contributing towards bribery &
corruption. The final session largely drilled into the perception
and understanding of due diligence and what it meant to
different people across the board.
Cost of Doing Business
The lack of efficiency and transparency in awarding contracts
has led to the increased cost of doing business. The
government should firmly look into bureaucratic procedures
and address leakages in the overall system.
Hiring Quality Workforce
The Chamber consented to assist PEMANDU to study the
gap on the demand and supply of both foreign and local
workforce that will assist the industry in reducing the over
reliance on foreign workers.
Improving Malaysian Ports
Infrastructures at Malaysian ports still need to improve in
meeting international standards with access facilities and
integrated transport systems in poor conditions and lacking in
proper coordination. PEMANDU suggested that port operators
form a consortium to jointly review the infrastructures and
road congestions and submit a proposal to the government to
consider privatising the roads leading to the ports.
Concluding the meeting, MICCI agreed to PEMANDU’s
request to provide key performance indicators (KPIs) for some
of the issues raised that would allow the government and
business community to strive towards achieving international
standards and expectations.
For further information please contact Chitra Devi at
[email protected].
In conclusion it was widely agreed that in order to elevate
and enhance the standards of anti-bribery and corruption
compliance, a comprehensive approach to measurable
training and education needs to be deployed. This would
provide the necessary building blocks to work towards third
party awareness and prevention measures.
For further information please contact Kavitha Muthiah at
[email protected]
PEMANDU and MICCI representatives in a group photo
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BERITA MICCI
MICCI Meets the
Deputy Secretary
General of MoHR
A MICCI delegation led by the
Chamber’s Human Capital Council
Chairman, Dato’ Kamil Noor Ariff met
the Deputy Secretary General, Mohd
Sahar bin Darusman of the Ministry of
Human Resources (MOHR) and his
team, in March 2015. The meeting
proved a valuable agenda as the
Chamber had an opportunity to raise a
number of industry concerns:
National Minimum Wages (NMW)
MICCI expressed that NMW should be
maintained at the current level and
linked to productivity, which the NMW
Council is still deliberating on the
appropriate measures. MoHR
informed that though the definition of
wages varies between HRDF, SOSCO
and the Employment Act, all
companies must follow the NMW Act
definition: Minimum Wages = Basic
Wage.
Labour Legislation
MICCI suggested that the government
should strongly consider a
comprehensive and holistic review of
all labour legislation including the
entire arbitration process involving
Industrial Relational Department and
the Industrial Court, particularly on
employer’s ability to exercise fair play
by effectively rewarding productive
employees and dismissing highly
disruptive and non-performing
employees.
Employment Insurance (EI)
The Chamber and business
community are united in its objection
to the proposed EI scheme. The
government has decided that in the
best interest of the country,
businesses and employers, it would
still practice the existing “Termination
and Benefits” rules and if employers
are contributing to HRDF, then EI will
not be required.
Foreign Workers (FW) Policy
Increase of levy should be ploughed
back to help the industry finance their
initiatives to automate, mechanise,
upgrade skills and training.
Businesses should be allowed to
renew the FW permits directly at the
Immigration counters. MoHR stated
that they are in agreement, however
the government is still reviewing a
mechanism to improve the FW policy
in accordance to international
standards.
GST on HRDF Training
It is clear that GST is applicable to
HRDF trainings, however MoHR is still
reviewing the request for exemption.
Impact of NCDs on Workers
Productivity
Non-Communicable Diseases (NCDs)
or lifestyle diseases such as diabetes,
obesity, cancer etc have a negative
impact on the Malaysian economy. A
joint effort by the private sector and
the Government should be embarked
to curb this concern.
For further information please contact
Chitra Devi at [email protected].
MOHR and MICCI representatives after concluding the meeting
NCDs Damaging the Malaysian
Economy
This figure is increasing annually and it is predicted that by
2030 the negative impact on the Malaysian economy will be
in the order of 6% of GDP (some RM40 billion).
The recent tripartite meeting in KL involving members of the
Malaysian National Chamber (NCCIM), US Chamber of
Commerce and AMCHAM highlighting the APEC study on the
impact of non communicable diseases (NCDs) on the GDPs
of several countries made for a fascinating discussion.
While much work has been done by the Malaysian MoH and
NGOs to draw attention to the issues of lifestyle diseases
and general public wellness, there has not been much
attention given to the huge impact this problem has on our
economy.
The APEC study indicates that in 2010 Malaysia lost over 4%
of GDP (>RM11 billion) as a result of NCDs or lifestyle
diseases such as diabetes, obesity, cancer etc.
continued…
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BERITA MICCI
A number of large companies (foreign and domestic) in
Malaysia do invest in the wellness of their staff (paying for
gym memberships and the like) but smaller companies as a
rule have not recognised the value of investing in staff
wellness or the negative impact NCDs have on their
businesses.
dialogues with the Government and will work with other
interested groups to find ways of mitigating the problem, not
merely for the general well being of the rakyat but for the
sake of the economy as well.
For further information please contact Chitra Devi at
[email protected].
This needs to change and a joint effort by the private sector
and the Government should be undertaken to address this
matter. MICCI will be highlighting this issue in ongoing
MICCI In Session With PEMUDAH
MICCI’s recent meeting with the Special Task Force to
Facilitate Business (PEMUDAH) in May 2015 provided the
Chamber an opportunity to raise two key concerns in relation
to the transport sector. The meeting was chaired by Tan Sri
Dr. Ali Hamsa and Datuk Seri Saw Choon Boon, Chairman
and Co-Chairman of PEMUDAH respectively.
The first issue concerned the need to improve transportation
efficiency. In terms of integrated land transport in Malaysia,
there is a huge inefficiency related to the number of road trips
made per transaction (shipment), which adds to cost,
congestions and environmental pollution.
The second issue involved the cost of doing business in East
Malaysia. The business communities in East Malaysia have
for a long time expressed vigorously about the higher cost of
doing business in Sabah and the higher cost of goods
generally. Much of this differential in cost is attributed to the
additional freight and logistics costs associated with goods
produced or landed in Peninsula Malaysia and transshipped
to East Malaysia.
While Sabah’s ultimate aim is to secure equality in pricing for
goods between East and West Malaysia they have actively
argued for the abolition of the Cabotage Policy as a step
towards price uniformity.
MICCI feels it would be worthwhile testing the proposition by
suspending the Cabotage Policy for a period of 2 to 3 years.
This will provide enough time for Sabah to seek additional
shipping opportunities and to assess the impact on logistics
costs and cost of goods/business in general.
As a result of the meeting, MICCI was invited to sit on the
Focus Group on Trading Across Borders (FGTAB) chaired by
MITI to work closely with the Ministry of Transport (MOT) on
improving transportation efficiency. Furthermore, MOT stated
that it would consider lifting the Cabotage Policy for Sabah
and Sarawak.
For further information please contact Chitra Devi at
[email protected].
for your further information
we recommend…(click title to download)
1. Eleventh Malaysia Plan [8MB]
2. ADB: Global Shock, Risks and Asian Financial
Reform [6.3MB]
3. E&Y: Reporting [1.7MB]
4. IMF: Regional Economic Outlook [12.1MB]
5. MPC: Productivity Report 2014/2015 [11MB]
Demonstrate your commitment to
anti-corruption…register today!
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6. WB: World Development Indicators [21.3MB]
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Keep abreast with MICCI’s latest initiatives and activities,
including various other happenings around the country…
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BERITA MICCI
MICCI Councils & Focus Groups
Economic Policy & Taxation Council
Chair: Kang Beng Hoe (Taxand Malaysia Sdn Bhd)
PIC: Wong Hin Wei ([email protected])
Trade & Investment Council
Chair: Tay Beng Chai (Tay & Partners)
PIC: Wong Hin Wei ([email protected])
Logistics & Infrastructure Council
Chair: Chris Thiagarajah (SkyBus Ventures Sdn Bhd)
PIC: Chitra Devi ([email protected])
Human Capital Council
Chairs: Dato’ Kamil Noor Arif (KASK Holdings Sdn Bhd) &
Lokman Baharuddin (ExxonMobil Subsidiaries in Malaysia)
PIC: Chitra Devi ([email protected])
Services (CSIM) Council
Chair: Ken Pushpanathan (MICPA)
PIC: Wong Hin Wei ([email protected])
Natural Resources & Environment Council
Chair: Dato’ Kok Wee Kiat (Bata (Malaysia) Sdn Bhd)
PIC: Ilyani Yusof ([email protected])
Joint Action Security Council (JASCO)
Chair: Rajan Mittal (Metrod Malaysia Sdn Bhd)
PIC: Ilyani Yusof ([email protected])
Domestic Affairs Council
Chair: Amnah Shaari (Beyond Corporate House Sdn Bhd)
PIC: Chitra Devi ([email protected])
--------------------------------------------Trade Facilitation Focus Group
Chair: Raja Kumaran (PricewaterhouseCoopers)
PIC: Wong Hin Wei ([email protected])
Education Focus Group
Chair: Tina Yeung (Windsor Learning Centre)
PIC: Chitra Devi ([email protected])
Legal & IP Council
Chair: Linda Wang (Zaid Ibrahim & Co)
PIC: Ilyani Yusof ([email protected])
Ethics Council
Chair: Rajan Mittal (Metrod Malaysia Sdn Bhd)
PIC: Ilyani Yusof ([email protected])
Tourism Focus Group
Chair: Jenny Shabudin (Travcheq Travel Sdn Bhd)
PIC: Ilyani Yusof ([email protected])
MICCI Contacts
Headquarters (KL, Selangor & N. Sembilan)
Stewart Forbes
Executive Director
tel: 03-6201 7708
email: [email protected]
East Coast (Administrated by MICCI HQ)
Marriot Low
Assistant Manager
tel: 03-6201 7708
email: [email protected]
Penang & The North
Priscilla Dawson
Branch Executive
tel: 04-227 0589
email: [email protected]
Malacca (Administrated by MICCI HQ)
Marriot Low
Assistant Manager
tel: 03-6201 7708
email: [email protected]
Perak
Subasini Uthra
Branch Executive
tel: 05-253 2233
email: [email protected]
Sabah
Stella Liew
Branch Executive
tel: 088-248 332
email: [email protected]
Johor
Nicole Struys
Branch Executive
tel: 07-221 2358
email: [email protected]
Associate Chamber
Datuk Abang Hj Abdul Karim, President
Sarawak Chamber of Commerce & Industry (SCCI)
tel: 082-237 148
email: [email protected]
4