January – March 2004
MALAYSIAN
TIN PRODUCTS
MANAGEMENT COMMITTEE
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PRESIDENT MR. JASON LEE HENKEL (MALAYSIA) SDN BHD VICE-PRESIDENT MR. MAMORU KAWASAKI(ALTERNATE – MR. LOH YOON SOON) SELAYANG SOLDER SDN BHD HON. SECRETARY MR. C.S. LIM METAL RECLAMATION (IND) SDN BHD TREASURER MR. TEOH LAY HOCK NIHON SUPERIOR (M) SDN BHD |
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Letters to the Editor are
welcomed. We appreciate your feedback
to further improve our editorial content. Please address your letters to: The Editor The Malaysian Tin Products Newsletter P O Box 12560 50782 KUALA LUMPUR. |
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COMMITTEE MEMBERS MS. GAY LEONG ROYAL SELANGOR INTERNATIONAL SDN BHD EN. AB. PATAH MOHD PERUSAHAAN SADUR TIMAH MALAYSIA (PERSTIMA) BHD MR. KOJI TSUBONO SENJU (M) SDN BHD |
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SECRETARIAT ADDRESS The Malaysian Tin Products Manufacturers’ Association (MTPMA) 8th Floor, West Block Wisma Selangor Dredging 142-C, Jalan Ampang 50450 KUALA LUMPUR. |
EDITORIAL SUB-COMMITTEE
MR.
JASON LEE MR.
C.S. LIM MS.
GAY LEONG MR.
LOH YOON SOON TN.
HAJI MUHAMAD NOR MUHAMAD CIK
FARIDA FARID
MR. EDWARD WONG MS. GAY LEONG EN. AB. PATAH MOHD |
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Tel: 03
– 21616171 Fax: 03
– 21616179 Email: mcom@mcom.com.my The Malaysian Tin Products Newsletter is published
quarterly by the Malaysian Tin Products Manufacturers’ Association (MTPMA).
The opinion and statements expressed in the Newsletter are not necessarily
those of the MTPMA or the Editorial Sub-Committee and neither endorsement nor
confirmation are intended or implied. |
Dear Members
First of all GONG XI FA CAI to all of you. Another new year had started and there will be a lot of new
challenges.
Based on the latest Business Outlook
Survey for the period January – June 2004, the prevailing mood of businesses is
generally one of optimism. As revealed
in the survey findings majority of the respondents felt that business prospects
will be better over the next six months with just a small minority predicting
that things could be somewhat worse off.
Tin price continued to soar during the first 2 months of 2004 and tin
being a versatile metal offers itself for a wide variety of applications
because of its ability to be alloyed with other metals. This enabled alloyed tin to be used in
numerous applications especially in the electronics industry. There is more to the growth of the tin
market and at the current rate of increase in consumption tin inventories are
being drawn down and are falling all over the world. This should be a worry for both the producers and tin consumers
though expectations are that the tin price will stabilise over the first
quarter of 2004. Both sides of the
industry needs a sustained period of stability.
Of particular note, I wish to draw the attention of Association members
to the result of a recent survey that
was conducted to obtain feedbacks from members on the services, activities and
usefulness of the Association and to seek response whether the Association
should be here to stay. An analysis of
the survey result appears on pages 17 to 19 herein, which shows that the
Association is still relevant and that it should continue to serve our industry
interests.
Another worthy article in this Newsletter which I would seek Association
members to take notice of is a letter of testimony penned by the Immediate Past
President, Ms. Gay Leong that appears on page 20. She has conveyed many useful messages which members should positively consider to pro-actively
participate and to benefit from the Association’s activities.
On that note, I look forward with enthusiasm to service and work
together with members on leading this Association to greater heights in these
challenging times.
Thank you.
Jason Lee
President
ELECTRONIC / SEMICONDUCTOR INDUSTRY NEWS
Intel
Electronics Malaysia expects robust sales this year as corporations and
individuals continue adopting the wireless technology. Country manager Peter Choong said the
company achieved satisfying sales in 2003, and foresees an even better year
ahead for the company. "We had a
good year in 2003, achieving all round sales growth including for desktop,
servers and personal digital assistants," he said. He said the major contributor to its revenue
last year was the sale of mobile notebooks and other wireless products. Choong also said the increased use of
notebooks, corporations upgrading its information technology (IT) infrastructure,
a growing small- and medium-sized enterprise market and the increased adoption
of IT for education purposes will drive Intel's sales this year.
(Source:
Business Times, 9 January 2004)
Japan's third largest chipmaker, NEC Electronics Corp, will boost the production capacity of its discrete, or commoditised, chips in Malaysia by 60 per cent as well as triple its system chip capacity by 2006/2007. NEC Electronics assistant manager (corporate communications) Seiko Yabuuchi, when contacted in Tokyo recently, said the group considered its Malaysian operations as very important in terms of producing "technologically mature packages". "In order to boost the production capacity of our operations in Malaysia, we will be looking at improving the efficiency of the production processes as well as increasing our investments in the plant, for instance, additional and more modern equipment," she said, but declined to reveal the amount of investment planned.
According to Yabuuchi, NEC Electronics' semiconductor plant in Malaysia, NEC Semiconductors (M) Sdn Bhd, which is located in Kuala Langat, Selangor, currently has a production capacity of 2.3 million pieces of discrete devices and 11.9 million pieces of system large-scale integration (LSI) chips a month. "Most of our customers have moved their production operations to South-East Asia including Malaysia, and China and our strategy is to also move the group's semiconductor production to where we can serve our customers better," she said, adding that NEC Electronics planned to increase its production capacity outside Japan. NEC Electronics would also be closing down its chip factory in the Shiga perfecture in western Japan. Yabuuchi said the closure of the chip factory enable the group to focus on wafer production like LCD drivers as demand for such products was increasing worldwide. "The workers at the chip factory in Shiga would be relocated to different factories in Japan," she added.
NEC Electronics said in a press release that it would be selling its IC (integrated circuit) packaging and testing operations in Takahata, Yamagata in northern Japan to Taiwan's Advanced Semiconductor Engineering Inc (ASE) as part of its strategic overhaul; combined with a four-year service agreement for ASE to provide IC backend manufacturing services to NEC Electronics. Although the terms of the sale were not disclosed, revenue of the new company is expected to be over US$165 million annually in the first year of the arrangement. NEC Electronics and ASE had agreed to start discussions on future strategic cooperation in a number of areas, including but not limited to production technologies and intellectual property. The transaction is scheduled to complete on May 31. NEC Electronics is the chip making unit of electronics group NEC Corp and specialises in system chips – customised, high-end microchips that combine multiple functions on one piece of silicon to power everything from mobile phones to game machines.
(Source:
The Star, 4 February 2004)
The broad-based recovery of the global semiconductor is gaining strength. This, industry players say, would soon be reflected in the earnings of local chipmakers, which have ramped up production to meet increased orders. Unisem Bhd managing director John Chia said that demand for chips had picked up across the board. "The growth is not just restricted to one area … the recovery is more robust than anticipated. We're a lot more bullish now than six months ago," he said. Chia said the company had ramped up production and employed 500 people in the fourth quarter last year to raise production and fulfil new orders.
Unisem is currently operating at 55 per cent to 60 per cent of its production capacity compared with 30 per cent previously. And the company is taking over a British semiconductor maker, Atlantic Technology Holdings Ltd, to leverage on the recovery. In fact, some optimistic analysts expect a substantial jump in Unisem's fourth-quarter profit, which will wipe out the net loss of RM12.2 million incurred in the first nine months of its financial year to Dec 31, 2003, and take the company back to the black. TA Securities has forecast a net profit of RM5.4 million for Unisem for financial year 2003. Penang-based Globetronics Technology Bhd group financial controller Ng Kok Choon, meanwhile, said customer volume loading had been good in the previous and current quarters. "Things are encouraging. The recovery trend has been sustained for six months. This has already translated into our third-quarter earnings," Ng told StarBiz. He noted that the current recovery was unlike the previous ones which had failed to gain momentum. Globetronics remained profitable even at the peak of the industry downturn two years ago. It is considered more resilient than its peers on the MSEB. Against the backdrop of such strong recovery, the Semiconductor Industry Association (SIA), which groups more than 85 per cent of the US semiconductor firms, said the industry's sales growth could exceed its forecast of 19 per cent this year. "The industry's broad, upward momentum across all product sectors and geographic markets is driving us toward another year of strong, double-digit growth," SIA president George Scalise said in a press statement.
According to SIA, last year's global sales climbed 18.3 per cent to US$166.4 billion from US$140.8 billion in 2002. And December's sales rose 28 per cent to US$16 billion from US$12.5 billion in the previous corresponding month, but the number was 0.6 per cent lower month-on-month. SIA said the wireless sector continued to spearhead growth and that personal computer shipments also recovered last year with an 11 per cent increase in unit volume. The World Semiconductor Trade Statistics (WSTS) also expects this year to show stronger growth of 19.4 per cent compared with 14.2 per cent last year, followed by slightly decelerating growth of 12.6 per cent next year. WSTS said the Asia-Pacific region, the largest consumer of computer chips since 2001, would continue to lead growth at 22.7 per cent this year versus 18.2 per cent in 2003. Many analysts are "overweight" on the local semiconductor sector given the positive news flow since the second half of last year. Malaysian Pacific Industries Bhd (MPI), Unisem and Globetronics are the top picks for exposure to the sector. Nonetheless, some analysts noted that the price of these semiconductor stocks had already factored in the bullish prospects.
Unisem surged to a high of RM12.30 last month from the RM8 level last October. It closed at RM11.20 yesterday. MPI climbed from RM15.60 on Oct 1 last year to RM17.30 yesterday, after hitting a peak of RM19 last November. Globetronics soared to a high of RM7.40 last month from RM5.50 last October, before slipping back to RM6.45 yesterday. "It is now time to see if they (semiconductor firms) can beat the forecasts in the coming results season. If the earnings numbers exceed expectation, this will provide the catalyst for the share prices to go higher," a fund manager said. Analysts also advised clients to look at semiconductor equipment providers such as LKT Industrial Bhd and Pentamaster Corp Bhd, whose share prices still lag the chipmakers.
(Source:
The Star, 5 February 2004)
Motorola
Inc, Intel Corp and other US electronics companies in Malaysia predict sales
this year will grow 12.1 per cent, beating an earlier forecast, as global
semiconductor demand recovers. Export
sales by 19 US electronics companies in the American Malaysian Chamber of
Commerce (Amcham) will probably rise to RM65.5 billion in 2004 from an
estimated RM58.4 billion last year, according to a fourth-quarter survey by the
chamber. A third-quarter poll forecast
sales to grow to RM64.2 billion from RM58.8 billion.
"Semiconductor prices are firming," The Chin Bin, chairman of the chamber's electronics group, said in a statement. "Some member companies are already increasing their book orders significantly to ensure adequate supply for their customers." An accelerating US economy, which accounts for about a fifth of Malaysia's export sales, is boosting shipments of semiconductors and other electronics from Malaysia, South-East Asia's biggest economy after Indonesia and Thailand. Motorola, Intel, Western Digital Corp and other US companies in the chamber accounted for about 15 per cent of Malaysia's total export sales and 25 per cent of country's total electrical and electronics exports in 2002, making the country one of the world's top five exporters of semiconductor devices such as memory chips, microprocessors, micro controllers and logic devices. Sales expanded 13.8 per cent last year after growing 15.5 per cent in 2002, the chamber said. Sales are expected to rise 10 per cent to 15 per cent a year until 2005. Factory use among the US electronics companies surveyed rose to 86.1 per cent in the fourth quarter from 84.1 per cent in the third quarter and 65.2 per cent in 2002.
Fresh investment by US electronics makers in Malaysia would probably grow 25 per cent this year to RM1.64 billion from RM1.31 billion in 2003, when it fell 18 per cent from the previous year, the chamber said. In October, the chamber had forecast investment would decline 6.3 per cent to RM1.5 billion last year and remain little changed in 2004 because factories still had excess capacity. In 2002, investment fell 30 per cent from the year before. Computer chips and other electrical and electronics goods accounted for half of Malaysia's total exports of about RM382.3 billion in 2003. Amcham represents more than 350 members, including International Business Machines Corp and Western Digital. Together, they employ more than 105,000 people in Malaysia, about 1 per cent of the workforce.
(Source:
The Star, 17 February 2004)
China's semiconductor demand will jump 41 per cent this year, driven by chips used in mobile phones, personal computers, DVD players and other electronics, an industry group forecast. Demand will rise to US$27 billion this year, from US$19.2 billion in 2002, and more than double again to reach US$61.9 billion by 2008, Semiconductor Equipment and Materials International said in a release distributed at a press conference here. "There's a widening gap between indigenous demand and domestic production, which means huge opportunity for companies all over the world," said Stanley Myers, chief executive of the San Jose, California-based association.
China's top 10 suppliers of semiconductors in 2002 were all overseas companies, led by Intel Corp, according to researcher Gartner Inc. Semiconductor Equipment forecasts China will account for 24 per cent of world chip demand by 2008. Rising capacity will cause the global chip industry to slump by the end of next year, Stamford, Connecticut-based Gartner forecasts. The researcher estimates China's chip market at US$38 billion this year, a 30 per cent rise from 2003.
(Source:
Business Times, 17 March 2004)
China's nascent semiconductor industry may be decades away from overtaking rivals Europe, Japan or the US but its small size belies government ambitions to build the country's chipmakers into world-class companies. Like oil and car, the chips sector has been anointed with special status as one of China's key strategic industries seen as crucial to adding technological muscle to the country's increasing global economic clout.
"It's important for China to gain the advantage in this core industry which is related to the country's strategy," said Li Ke, a director with the China Semiconductor Industry Association. "With such a big domestic market and so much (government) support, there's no reason that China cannot surpass Taiwan and South Korea and have the world's third largest sales volume after the US and Japan." Already China is one of the largest consumers of semiconductors, the micro-chips that are the brains behind everything from refrigerators and compact discs players to mobile phones and computer servers.
Sales this year are expected to rise 31 per cent to about US$32 billion, according to CCID Consulting, a group attached to China's Ministry of Information Industry. By the time the 2008 Beijing Olympic Games comes, sales are expected to more than double to 630 billion yuan, making China one of the world's major chips markets, according to the CCID. Whether China will eventually surpass neighbours Taiwan and South Korea as major producer of chips is unclear but the Government has laid out aims to turn the Chinese semiconductor industry into a major player by 2020, with an investment of US$10 billion in the sector by 2005 alone. "The decision by the Chinese Government to support and develop the semiconductor industry will not be pushed back no matter what kind of fluctuations (occur in the market)," said Yang Xueming, senior adviser at the CCID. "Without it, there would be no achievements in other fields such as genetics, space and bio-technology. It is the tool and the foundation of other industries," Yang said.
Like Taiwan, China has carved out a niche market in the contract manufacturing of chips, known as "foundry", even though mainland chipmakers are far from being able to match overseas rivals, said Byron Wu, an analysts at iSuppli, a technology research firm. Foundries, such as world leader Taiwan Semiconductor Manufacturing Co, aim to serve customers such as semiconductor design and marketing groups which lack the funds to operate their own billion-dollar fabrication facilities and which do not want to take the production route themselves. Also like Taiwan, China has coddled the industry by providing billions of US dollars in funding and value added tax (VAT) rebates on semiconductor products manufactured and sold within the country.
Foreign competition, meanwhile, has been charged the full 17 per cent VAT on imported semiconductors, which last week led to the US lodging the first filing with the World Trade Organisation against China since it joined in late 2001. While the US filing is caught up in the electoral politics of this year's US presidential race, with China being the target for charges of unfair trade practices and restrictions, chips giants, such as Intel, are eager to capture a bigger slice of the burgeoning China market. Foreign firms currently supply 80 per cent of China's chips market, in part explaining the obvious desire of the authorities to boost the home-grown industry, and clearly want in on the country's economic boom.
(Source:
Business Times, 29 March 2004)
ECONOMIC NEWS
Brighter prospects for the external economy and a strong upturn in global electronics demand will propel Malaysia's exports and complement the expansion in private sector demand, TA Unite Trust Management Bhd said. Its chief executive officer Richard Chua Lai Huat said the positive domestic driven-growth and higher output in the manufacturing and services sector will drive the economy to grow between 6 and 6.5 per cent in 2004 compared with between 4 and 4.5 per cent in 2003.
"There appears to be a broad-based recovery with the rebound in the US and Japanese economies as well as the upturn in the European Union, which reinforces our view that we are seeing a synchronised recovery in major industrialised countries," he told Business Times. However, he cautioned that the prolonged weakening of the US dollar on the back of twin deficits in fiscal and current accounts could derail economic growth. Chua said that although a weaker dollar can boost Malaysian exports by making local goods cheaper, a sustained weakening will have widespread repercussions on the economy – from falling foreign direct investment to less appealing local assets. On a positive note, Chua said the US dollar is unlikely to correct sharply as long as there is a sustainable inflow of capital to finance the current account deficit. "With stronger economic growth (in the US) and corporate earnings in 2004, we expect a sustainable inflow of capital to finance the current account deficit, hence supporting the dollar strength," he said.
On the unit trust industry, Chua said there is greater awareness among the investment fraternity on investing in unit trust as fund managers consistently outperform the benchmark and provide acceptable returns compared to the paltry returns from time deposits or retirement funds. "As investors become aware of the need to diversify from traditional forms of investing, such as direct investment in stocks, unit trust offers investors an avenue to partake in the ups and downs of the stock market while providing risk management," he said.
(Source:
Business Times, 1 January 2004)
Malaysia will grow by between 5.5 per cent and 6 per cent this year on the back of expected higher exports, stronger domestic demand, a return of investor confidence, and improving consumer confidence, said Deputy Prime Minister Datuk Seri Najib Tun Razak. The country would also likely register a gross domestic growth (GDP) rate exceeding 4.6 per cent for 2003, he said, higher than the government's latest forecast last year of 4.5 per cent.
In his keynote luncheon address to the Malaysia Strategic Outlook 2004 conference recently, Najib said that with the country having successfully overcome the economic downturn, the government's role from now on was one of "facilitator and enabler" to the private sector, which would drive the economy. "It is important to note that this new administration believes that it is not the business of the government to be in business. We will act as a catalyst for companies to aggressively improve productivity and enhance international competitiveness," he said. Najib said the country would also need to focus on sources of growth where it had a comparative advantage, such as agriculture, and build on the infrastructure of the Multimedia Super Corridor to spur new growth areas, such as biotechnology. The quality, resilience and competitiveness of the country's human capital "would make or break our dreams to achieve Vision 2020", he said, emphasising the need to "reinvent" the education system.
At a press conference after the event, Najib said Malaysia's economy could look forward to better things. "I think the outlook is positive. Generally, the fundamentals and indicators are quite positive, so we can look forward to improved performance this year," he said. National Economic Action Council working committee member Datuk Dr Zainal Aznam Yusuf, in a regional outlook session, said the economies of the Asia-Pacific region, except China, should grow by at least 4 per cent to 6 per cent this year. China would grow by 8 per cent.
(Source:
The Star, 16 January 2004)
The Malaysian Institute of
Economic Research (MIER) forecasts a gross domestic product (GDP) growth of 5.7
per cent this year, driven by the electronics sector, foreign direct
investments (FDIs), corporate earnings, bullish equity market and election
spending. "The upswing in the
electronics sector will buoy exports further.
A healthier global economy will also lead to steadier inflows of
FDIs," the private economic think-tank said in its quarterly economic
outlook report recently.
MIER said the electronics sector registered hefty sales due to the stronger local and external demand in the final quarter of 2003. It estimated GDP growth of 4.9 per cent last year. "Higher demand for the country's electronics exports, which is the key driver for manufacturing growth, will also generate more business spin-offs to many local industries," it added. The MIER maintained its forecast of 6.2 per cent growth in 2005, if global economic growth and domestic conditions remain stable without any major disruptions. It also said GDP growth next year was in line with the projections in the Mid-Term Review of the Eighth Malaysia Plan. The plan has targeted an average growth of 6.0 per cent for 2004-2005 instead of the earlier forecast of 7.5 per cent. Speaking to reporters releasing the report, MIER executive director Dr Mohamed Ariff Abdul Kareem said the economy would grow 5.7 per cent this year and could expand 6.2 per cent next year. "The economic growth is very entrenched and it is getting better. Clearly, the US economy is growing with demand growing in the electronics sector," he said. "Japan is performing better than expected while Europe is also showing good numbers," he said, adding that China's strong performance would create a spillover effect to the rest of the Asian countries. Ariff also said business confidence was sustained in the fourth quarter last year by increases in sales, export orders, capacity utilisation and investment in plants and equipment.
Sectors likely to contribute to the growth in the manufacturing sector in the near term included the construction and electronics sectors, he added. MIER said the continued pick-up in the residential property market would mean higher orders for construction materials such as cement, lime products, tiles, bricks and glass. Elaborating on the report, Ariff cautioned that the automotive sector was still gloomy due to lower vehicle sales, confusion on the calculation of excise duties and the depreciation of the ringgit against the yen and euro. Hence, he expected automotive production costs to increase naturally due to the high import content or lower profit margins among the auto players. In MIER's fourth-quarter 2003 survey on the automotive industry, it found sales and production expectations were rising, which suggested industry conditions might stabilise in the first quarter of this year, coinciding with most industry players' expectations of improved sales and production.
On consumer sentiment, MIER said consumers were feeling better about the economy and their future, bolstered by expected finances and employment prospects. "This is the first time we are seeing people have spending plans. Although it may not translate into actual spending, it is a positive sign," Ariff said. MIER expected the labour market to be firmer in early 2004 with promises of better balance between efficiency gains and job growth.
(Source:
The Edge (Financial Daily), 21 January 2004)
Malaysia's exports shot up
36 per cent to a record high in December, propelled by strong demand in the
United States and the accelerating electronics industry. The strong December numbers also helped
Malaysia breach, for the first time, the US$100 billion (RM380 billion)
threshold in annual exports.
"Both the export and import values were the highest monthly levels ever achieved," said the Ministry of International Trade and Industry in its monthly trade statistics release. Local manufacturers shipped RM38.8 billion worth of goods in December, putting Malaysia squarely back on the global recovery curve. Exports growth during the month was the fastest year-on-year expansion since July 1998. The December figures rounded up Malaysia's annual 2003 exports to RM382.3 billion – 8.0 per cent higher than the year before. Annual imports, meanwhile, grew 1.6 per cent to RM302.6 billion. The trade surplus in 2003 stood at RM75 billion, the highest level ever. "These are extremely good figures," said Mayban Securities economist Saifuddin Morat. Private economists had forecast double-digit growth, but none expected the December numbers to be this strong.
Economists saw this as a signal that the revival in the electronics sector had finally trickled down to the consumer electronics sector, which along with chips, parts and components, covers more than half of Malaysia's total exports. Despite the holiday period at the end of the year, "the factories continued operating at normal levels during Christmas, and even during Chinese New Year, to keep up with the buoyant demand", said GK Goh regional economist Song Seng Wun.
(Source: New Straits Times, 5
February 2004)
Zeti
said Malaysia's economy had made a strong start to 2004 and its outlook for the
full year had improved significantly, buoyed from both external and domestic
demand perspective. With better global
economic forecasts of late, there had been improving consumer confidence and
business had also begun expanding their activities, leading to a private
investment upcycle, she added. Zeti
said private investment in machinery and equipment had strengthened as business
sentiment improved and capacity utilisation pushed 80 per cent in
export-oriented manufacturing industries.
Consumption growth, up 5.7 per cent last year, was also likely to
continue this year, she said, with rising disposable incomes, low inflation and
interest rates, and the positive wealth effects of the rising stock market as
contributory factors.
Higher
foreign direct investment (FDI) was also seen with net FDI inflows of RM2.1
billion in the fourth quarter 2003, up from RM1.2 billion in the third, making
a total of RM2.3 billion for the year.
The net FDI inflows in the fourth quarter comprised inflows of RM5.1
billion against RM3 billion outflows.
Zeti said the "steady inflow" of FDI had been a factor in the
rising level of international reserves, which hit US$48.4 billion on February
14, up from US$44.9 billion at the end of last year. The repatriation of export earnings was the main contributor to
the rise but more recently, large portfolio inflows had become a more prominent
feature in the statistics. She said the
country's reserves were enough to finance 7.6 months of imports.
On
the government's budget deficit, she said preliminary data showed a deficit of
5.4 per cent of the GDP for 2003.
"The government's objectives is a gradual consolidation . . . but
it does not have the intention of withdrawing from the economy," she said,
adding that the financing for the deficit would likely be from domestic sources
as had been the case previously for more than 80 per cent of the country's
sovereign debt. When asked if the
liberalisation of the local banking sector would be speeded up, Zeti said it
would "take place on a gradual basis", after the strengthening of the
local financial institutions.
"There will be no significant liberalisation because we already
have a large foreign presence in our financial system and we also have significant
foreign interests within our domestic banking system," she said. At present, foreign equity in financial
institutions cannot exceed 30 per cent, while the maximum shareholding of any
single institution is 20 per cent, subject to Bank Negara approval. There had been recent speculation that both
Singapore's Temasek Holdings and Commerce Asset-Holding Bhd were interested in
a strategic stake in Alliance Bank Bhd's holding company, Malaysian Plantations
Bhd. When asked if Bank Negara had
been approached for its approval by any party, Zeti declined to elaborate. "We are not going to comment on any
individual interest in our banking system.
From time to time, there are interests expressed and we will evaluate
them," she said.
On
the level of the ringgit, Zeti reiterated that the local currency's peg at
RM3.80 to the US dollar would be maintained.
She said that with the Asian region being a significant and growing
component of Malaysia's international trade, it was crucial to maintain
exchange rate stability with regional currencies like Chinese yuan. "We are having greater regional
integration now and it becomes important for currency stability among the
currencies of this region," she said.
(Source:
The Star, 26 February 2004)
Bank
Negara's forecast of 6 per cent to 6.5 per cent gross domestic product (GDP)
growth this year against 5.2 per cent last year is a realistic one, economists
said. They said against the backdrop of
an improving global economy, the private sector - particularly consumer
spending – would spearhead domestic economic growth as consumers would be
spending more amid the favourable economic conditions and stable
employment. "The low interest rate
regime, which the government intends to maintain, will help stimulate private
consumption," said a chief economist with a local stockbroking house, who
added that ample liquidity in the banking system would drive asset prices
higher.
According
to Bank Negara, private consumption rose 5.1 per cent last year, while private
investments inched up 1.1 per cent after two consecutive years of decline. The central bank forecasts private sector
expenditure to increase by 8.7 per cent this year against 4.3 per cent in
2003. It anticipates consumer spending
to go up by 8.1 per cent compared with 5.1 per cent last year, and private
investment to expand 11.5 per cent this year compared with 1.1 per cent
previously. Some economists noted that
private investment could be another economic growth driver and a potentially
powerful engine. They said the improved
business confidence measured by Malaysian Institute of Economic Research's
business confidence index was a nascent sign of the recovery of private investment.
Furthermore,
higher capacity utilisation as a result of rising external demand would
underpin capital spending activities, particularly in the manufacturing sector,
they said. But some economists said it
was still too early to conclude that private investment, which had been
lacklustre since the onset of the Asian crisis, had returned to the recovery
path. "I would definitely like to
see a recovery in private investment.
This will help fuel economic growth.
But, I think there is still lack of concrete evidence that this is
picking up," said TA Securities head of research C.K Ngu. Bank Negara also anticipates a 1.3 per cent
drop in public expenditure. Economists
said lower government spending would not slow down economic growth given the
sustainable spending in the private sector.
They see the government's belt tightening measures as a prudent move to
retain fiscal discipline.
(Source:
The Star, 27 March 2004)
Malaysia said recently its six-year-old ringgit peg to the dollar remains "sustainable" despite volatility in the global markets and rejected pressure for Asian countries to adopt a more flexible exchange rate regime. The ringgit, which has been fixed at 3.80 to the dollar since 1998, is "close to its fair value" despite the weaker dollar and there is no sign that it is misaligned, Bank Negara Malaysia said in its 2003 annual report.
"While there may be tradeoffs, the benefits of the present system have far outweighed any costs," Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz, said in the report. "Consideration of any alternative system should only be made in the event of anticipated fundamental misalignment or structural change or if new regional arrangements can be evolved." Zeti rejected the notion that a more flexible regime would correct structural imbalances in the global economy. "It needs to be recognised that the comparative advantage that Asia possesses is not due to exchange rates but reflects other factors that have resulted in lower costs. Adjustments in exchange rates are therefore unlikely to correct such structural imbalances," she said.
The question of whether exchange rate appreciation could address overheating must also take into account the nature of price pressures, she noted. "In situations where the pressures are sectoral or localised, other measures including prudential measures may be more effective… the exchange rate should not be used for the purpose for which it may not be able to yield desired results." Last year, the ringgit lost 16.7 per cent against the euro, 10 per cent against the pound, 9.9 per cent against the yen and between two and eight per cent against most regional currencies.
(Source:
The Malay Mail, 27 March 2004)
MEMBER NEWS
It is time to begin the Chinese New Year with a little monkey business. Royal Selangor is celebrating the Year of the Monkey this Chinese New Year, with a collectible keepsake designed as a special tribute to the primate. Its latest Chinese Zodiac Series First Day Covers, created in collaboration with the Singapore Philatelic Museum, carries a complete set of Monkey Year postage stamps and a beautifully-carved pewter or niobium cachet which is a replica of the stamps. The covers are cancelled with the Singapore Post's postmark dated Jan 9, the stamp's issue date. There are only 2,500 pewter pieces and 700 niobium pieces worldwide. Every issue comes with a certificate of authenticity. The pewter First Day Cover costs RM59 while the niobium costs RM189.
(Source:
The Malay Mail, 19 January 2004)
Royal Selangor's whimsical Winnie The Pooh collection, its newest collection of 13th licensed pewter christening gifts and collectibles, attracted a lot of attention and enquiries from international buyers when it was launched at the recently concluded Spring Fair Birmingham (SFB).
Part of the Disney Showcase Collection, the Winnie The Pooh collection incorporates whole scenes from the book as opposed to just individual characters. Held from Feb 1-5 at the National Exhibition Centre in Birmingham, the fair was one of many international gift fairs Royal Selangor frequented, the company said in a statement. Royal Selangor said it had "great success" in its 14th outing at SFB. Royal Selangor International executive director Tham Tuck Hoong said the company's new products were planned and developed to be launched at international fairs, hence having a significant impact in expanding both its market size and distribution network. "Coupled with our aggressive branding and marketing activities, this approach has been a success as Royal Selangor was recently named the Best Selling Giftware Brand over a selection of international brands in the latest issue of Retail Jeweller, a British trade magazine," he added.
Also featured at SFB were new additions to the popular Teddy Bear's Picnic collection, and its newer Vinifera wine collection. SFB, the biggest and busiest fair in Britain, was established in 1976. The fair attracted over 4,500 exhibitors and more than 100,000 visitors from all over the world.
(Source:
The Star, 25 February 2004)
The other royal family – that is how the Yong family, royal pewterers, who introduced the Royal Selangor brand to Malaysia and the world, has been referred to. The story is that the late Sultan Selangor, Sultan Salahuddin Abdul Aziz Shah, was abroad one day, when he was complimented on the beautiful pewter that came from his State. So proud was the Sultan of the reputation which Selangor Pewter had brought to the state that he deemed it worthy of renaming it Royal Selangor in 1992, although Selangor Pewter had already been the royal pewterer since 1979.
"It was an honour for the family and today, we strive to uphold that honour," says Datuk Yong Poh Kon, managing director of Royal Selangor International Sdn Bhd. One of the four grandchildren of founder Yong Koon Seong, Poh Kon is very much involved in the family business. The others are Datin Paduka Chen Mun Kuen, Yong Poh Shin and Sun Mun Ha. "Oh no, we were not really forced into the business. It is a combination of family duty and personal pride. For me and my siblings, we pretty much grew up with the business, helping our parents run it from a shophouse. We lived upstairs and the shop was downstairs," says Poh Kon, a trained engineer.
In the book, Born and Bred In Pewter Dust: The Royal Selangor Story, which tells of the history of Royal Selangor, author Chen May Yee, Mun Kuen's daughter, wrote that family duty was more important than personal ambition. When her mother, uncles and aunt were children, their after-school routine was to take dawn telephone orders, packed pewter and painted labels on the boxes. On reaching 18, Poh Shin wanted to be a cigarette salesman for Rothmans as an entertainment allowance and the use of a Ford Cortina station wagon were part of the fringe benefits. But his father, Peng Kai, insisted that he needed his son by his side to build the family business which had recently moved from a 180 sq metre shophouse in Pudu, to a 360 sq metre facility in the Kuala Lumpur suburb of Setapak. From making ceremonial vessels for the ancestral altars of the Chinese tin miners during Yong Koon's early days, the company has progressed to making toast racks, napkin rings and tankards, for visiting British and Australian armed forces personnel in the '50s.
Even Hollywood actor William Holden dropped in to the Pudu shop with French actress Capucine when they were in town filming The Seventh Dawn. Though the film was a flop, Holden ended up placing a large order of cigarette cases as gifts for friends. Poh Shin and Mun Ha were paid RM100 a month, of which RM40 went back to their parents for food and lodging. Poh Kon, the youngest, was the first in the family sent abroad to study at a university. He was responsible for new production processes at the Setapak factory, alloying metals for the first time, introducing hydraulic presses and other newfangled machinery. More than a century after tinsmith Yong Koon Seong arrived in then Malaya from China to make a new start in a newly independent country, his legacy has lived on. What started off as a side business for the tinsmith, making pewter incense burners, joss stick holders and candle stands, the pewter business has grown into a world-class enterprise. Royalties, heads of states, the rich and the famous, as well as the ordinary Joes have all at one time or another gave away or received a majestic trophy, a gleaming tea set or a simple tankard bearing that famous brand.
Today, the Royal Selangor brand is found in Harrods of London, Wako in Tokyo's Ginza shopping district and design-oriented store Illums Bolighus in Copenhagen. In the US, it is sold in Nordstrom, Boston Pewter Company and Fortunoff. Over the years, Royal Selangor has also acquired Canada's biggest pewter maker, Seagull Pewter, to further tap the North American market. It has diversified into fine jewellery with Selberan, and silver with the acquisition of a London silversmiths company, Comyns. Mun Kuen, who is with the corporate recognition division of Royal Selangor Marketing Sdn Bhd, says while things have expanded beyond the family's expectations, some things remain true to the company's legacy. "The products must not only be beautiful but also useful," adds Mun Kuen. Today the founder's grandchildren share responsibilities with a team of non-family professionals. The seven-member board includes two other non-family executives. Are the great-grandchildren asked to join the family-owned business? "Not really. But we, the elders in the family now, do mention to our children that it would be nice if they do so," says Poh Kon.
The next generation of Yongs who have joined the company did so after stints elsewhere. Christopher Yong, who worked for a decade with British design consultancies Addison and Citigate Lloyd Northover, is the corporate graphics manager. Sun May Foon is a merchandiser and designer for Selberan, bringing experience from Melbourne's Schlager Antique Jewellery. Sun Chee Yan, who is the information technology manager, was working form several years with DHL Worldwide express and Hewlett-Packard. Yong Yoon Kit is a senior systems analyst who helped create the company's e-commerce website which won a regional CIO Award from CIO Asia magazine in 2001. The family tradition lives on with the involvement of family members and through the Royal Selangor Visitor Centre, which highlights the company's 118-year history. Located in Setapak, together with the factory and headquarters, the centre is one of the top 10 most-visited tourist attractions in the Klang Valley.
(Source:
The Sunday Mail, 7 March 2004)
A
labour of love would be an apt description of the Royal Selangor Visitor Centre
in Setapak, Kuala Lumpur, which is the culmination of three years of
collaborative effort, determination and a vision to create an indelible pewter
landmark. The establishment offers a
holistic experience, where one can touch, hear, feel and see all that is pewter.
Visitors will not be disappointed as there is something for everyone. The three main sections of the Visitor Centre are The Gallery, Factory Tour and Retail Store. The 40,000 sq ft Visitor Centre is the pride and joy of Royal Selangor. It was recently launched by the Sultan of Selangor Sultan Sharafuddin Idris Shah, in the presence of business luminaries, dignitaries and associates. The Visitor Centre, the latest milestone in Royal Selangor's 119-year illustrious history, captures both the essence of the brand's evolution over the years and its vision for the future.
Royal Selangor managing director Datuk Yong Poh Kon said the new Visitor Centre would provide comprehensive information on pewter for all. It will be a visual, auditory and tactile experience. "Through interactive exhibits, visitors can have a glimpse of the various forms of tin mining, and learn to appreciate the beauty and versatility of pewter and Malaysian craftsmanship," Yong said. Formerly known as Selangor Pewter, the company changed its name to Royal Selangor upon receiving a royal warrant from the former Sultan of Selangor in 1979. Royal Selangor is today the only Malaysian company represented in more than 3,000 locations worldwide, with pewter products that can be found in well-known stores such as Harrods and John Lewis of the United Kingdom, and Wako in Japan. The company is expecting the Visitor Centre to become a focal point for all things pewter in the country and beyond.
A tour of the Royal Selangor Visitor Centre begins with The Gallery section which includes educational exhibits such as the Origins and Science of Pewter. It showcases the brand's rich history since 1885, while offering an insight into developments in pewter manufacturing. The Gallery also contains interactive displays such as the Chamber of Chimes, Hall of Finishes and Pewter Museum, aimed at providing a fun-filled multi-sensory experience. The Chamber of Chimes allows visitors to strike different types of materials to hear the distinct and melodious variety of sounds, while the Hall of Finishes enables visitors to touch and feel different pewter textures, thus highlighting its versatility and beauty. In the Pewter Museum, visitors have an opportunity to see a selection of traditional pewter-smithing tools and a collection of antique pewter dating back to the late 1800s. special points of interest which deserve a closer look include the pewter replica of the world's tallest twin towers made up of 7,062 Royal Selangor tankards, standing two storeys high at a majestic height of 9.1 metres. One will also find a unique wall display of pewter palm prints of all Royal Selangor craftspeople who have been with the company for more than five years. During the factory tour, visitors will get a first-hand view of, and even participate in Royal Selangor's pewter crafting process within a comfortable environment. This also includes rare insights into the intricate crafting of exquisite fine jewellery by Selberan, a brand under the Royal Selangor Group.
Capping the Visitor Centre tour is the massive 18,000 sq ft Retail Store. Featuring a wide selection of the latest pewter designs along with the finest collections of sterling silver by Comyns, and fine jewellery by Selberan, the vast Retail Store holds the collective "treasures" of the Group and offers great retail choices. Housed in a modern building complete with necessary facilities and services, Yong said the Visitor Centre would provide an environment that balanced the modern and traditional. The centre is open from 9am to 5pm, seven days a week, including public holidays. It is an ideal stop for tourists, travellers, incentive and special interest groups, schoolchildren and families alike. There is no admission charge and guided tours are complimentary.
(Source:
New Straits Times, 8 March 2004)
This
Award is a joint effort by four of Malaysia's leading private sector non-profit
organisations concerned with corporate environmental issues, namely Business
Council for Sustainable Development in Malaysia (BCSDM), Federation of
Malaysian Manufacturers (FMM), Environmental Management and Research
Association of Malaysia (ENSEARCH) and Malaysian International Chamber of
Commerce and Industry (MICCI) and is endorsed by the Ministry of Science,
Technology and the Environment, Malaysia (MOSTE), and supported by the
Department of Environment (DOE) and the private sector.
The specific objectives of the Award are to:
· Provide businesses and industries with the opportunity of an independent evaluation of their environmental commitment and sustainable development;
· Stimulate business and industry initiatives in assuming a proactive role in environmental protection and sustainable development; and
· Recognise the achievements of exemplary participating organisations for other organisations to emulate.
Awardees will be recognised and awarded based on their environmental performance and commitment, adjudged at the end of a 2-staged assessment.
Henkel (Malaysia) Sdn Bhd, Ipoh Manufacturing Plant are proud to advise that on 16 December 2003 we had been awarded the following;
1) Notable Achievement in Environmental Performance
2) The Small and Medium Enterprises Award, and
3) Perak Award (The State Award)
We hope more companies will play their part in putting more emphasis on environmental commitment and sustainable development in order to create a better world for our future generations.
(Source: An Article from Henkel (Malaysia) Sdn Bhd)
The Survey on the future of the Malaysian Tin Products Manufacturers’ Association (MTPMA) was sent out to all 19 members of the MTPMA. Only 6 or 31.5% of members completed and returned the Survey to the Secretariat. Reason for the low response amongst others, could be that members do not wish to make any commitments in their responses to the questions posed in the Survey.
The objective of conducting the Survey is to assess the effectiveness, and efficacy of the MTPMA in the provision of services and the organising of activities to members, and resulting from the response to consider whether the Association should be disbanded or continued.
FINDINGS / RESULTS
The following results and findings were compiled based on the responses received from the afore-mentioned six member respondents.
1. Rating on the services provided by the Secretariat of the Malaysian Chamber of Mines/Tin Industry (Research and Development) Board to the MTPMA.
(a) Satisfactory = 67%
(b) Good = 33%
2. Whether members benefited from the activities and services provided by the MTPMA.
(a) Yes = 83%
(b) No = 17%
Comments
received:
Respondent
1: Benefited from ministry forums, tin
indices and statistics
3. Whether members aware of the annual invite to the MTPMA to the Annual Dialogue Session with MITI to discuss issues affecting the industry.
(a) Yes = 50%
(b) No = 50%
4. If yes to the above, did they raise any issues for the Dialogue.
(a) No = 100%
5. If no to above, why not?
Comments received:
Respondent 1: Its CEO is on the FMM.
Respondent 2: All appropriate issues have been
addressed.
Respondent 3: Was not informed.
6. Whether the Solder Sub-Committee adequately resolved the issues and problems faced by the solder industry.
(a) Yes = 33%
(b) No = 67%
7. If no to above, why?
Comments
received:
Respondent
1: Every individual company has its own
reason and point of view to their competitors.
8. Whether they raised any issue for consideration of the Solder Sub-Committee.
(a) Yes = 67%
(b) No = 33%
9. In-house circulation of the quarterly Malaysian Tin Products newsletter.
Respondent 1: 3 persons
Respondent 2: 2 persons
Respondent 3: 4 persons
Respondent 4: 3 persons
Respondent 5: 5 persons
10. Reference to the contents of the newsletter at any stage.
(a) Yes = 100%
11. If yes, sections/topics of interest:
(a)
Articles = 60%
(b)
Statistics = 100%
(c)
Members details = 60%
(d)
Advertisements = 20%
12. Rating of Newsletter's overall effectiveness.
(a) Satisfactory = 80%
(b) Excellent = 20%
|
(a)
Too
time-consuming to travel to the meetings from outstation |
=
17% |
|
(b)
The Association's
activities are not relevant or add little value to my business |
=
33% |
|
(c)
The meeting is
open to my competitors whom I would rather not meet or have to share
information with |
=
17% |
|
(d)
Others (As below) |
=
33% |
Respondent 1: Sometime, due to other more important meeting
schedule.
Respondent 2: Lack of issues and direction. As a smelter
member, we would like to interact more with the MTPMA members.
14. Should the MTPMA be continued.
(a) Yes – continue =
83%
(b) No – dissolve it =
17%
15. Suggestions or proposals to strengthen the services and activities of the Association, if yes to no. 14.
Comments received:
Respondent 1: Meetings held only on important issues.
Respondent 2: Provide website to update members on the
activities of the Association.
Respondent 3: • As a smelter member, we would like
to see a forum
where issues can be
addressed.
• Need to have
more specific issues
and agendas for discussion.
• Participation
will came if issues are
relevant and interesting.
• Meetings should be spaced out to
avoid taking members’ time.
From the above-said responses, it appears that the majority of members
or 83% of them want the MTPMA to continue and not to be dissolved, and that
some of its services and activities could be enhanced in order to gain more
participation and relevance.
Testimonial From A Past President
Dear MTPMA members,
It was barely the 4th meeting
that I had attended of the MTPMA’s quarterly meetings when the President at the
time, the late Mr. S F Wong, urged me to take up a position on the Management
Committee. Being so very new and
totally lacking in experience in being on a Committee for an entire industry of
tin products manufacturers, I felt completely out of my depth. You can imagine my horror when Mr. Wong and
Secretariat Executive Director, Tn Haji Muhamad Nor, and Mr. C S Lim (who had
also been one of the early, pioneer Presidents) broke the news they had the
post of President in mind.
Looking back after serving 3 years for the
MTPMA, I can only say, I have no regrets whatsoever. The initial fear was short-lived and the experience became
invaluable. Where else would I have
ever had the opportunity of being mentored by the most experienced people in
the industry. Each of the Management
Committee members was there to lend their support the entire way. I also found that by participating and being
more involved in the MTPMA exposed me to issues, and therefore discussions of
and on very much higher and broader level.
Even in the context of my own organization, I was soon able to relate on
matters at a completely new level. It
was a win-win-win situation, and this is precisely why I am compelled to share
this experience with our members at large.
To fully realize the benefits, when we take more active participation
and involvement in the MTPMA we actually derive a great deal more than if we
take a passive stance.
The MTPMA, which was incorporated and
registered with the Registrar of Societies in 1990, has been constitutionally
set up for 14 years now, and it was formed by, and for, those in the tin
products manufacturing industry. Such
associations are not easily set up, and here we have a long-established
structure plus the `machinery’ already in place for the benefit of all
Association members. I would encourage
all members to take advantage of this enviable position we have, i.e. to have a
collective voice representing tin products manufacturers. The Association is already included in the
annual forums organized by the Government and its agencies, as well as offers a
rich networking facility, plus an avenue to share experiences and keep abreast
of market and industry forces at large.
Last year, some of the issues discussed included policies on foreign
labour, HR funding and handling of unions, DOE issues and legislation, to name
a few.
The Association welcomes new faces at its
meetings, and any kind of active participation. If members themselves cannot attend, they can send alternate
representatives who can learn a great deal by just coming along and
observing. One day, these are the
people who will take over the reigns - not just in the Association but also in
members’ own organizations.
Our Committee meetings are held once every
three months. Come and meet our new
President, Mr Jason Lee, and the Management Committee, and exercise your
membership privilege in the MTPMA.
Please call the Association's Secretariat telephone no. 03-21616171 to
enquire about the specific dates of these Committee meetings and to register
your interest in attending one or all of them.
Regards.
Yours sincerely
Gay Leong,
Past MTPMA President (2000-2003)
Association Website
Following
suggestion made to the Survey on the Future of the Malaysian Tin Product
Manufacturers’ Association (MTPMA) to keep members updated on the activities of
the Association, the Secretariat has designed a Website accordingly. The Website is dedicated to provide members
and the public with information, news and activities of the Association. The Website is hoped to be ready for
launching at the next AGM of the Association to be held on Tuesday, 15 June
2004 at 12.00 noon at the Secretariat Conference Room, 8th Floor, West Block,
Wisma Selangor Dredging, 50450 Jalan Ampang, Kuala Lumpur and to be followed by
the Association’s Annual Luncheon. The
Website can be surfed at http://www.mcom.com.my/mtpma.htm