JANUARY – MARCH 2007

MANAGEMENT COMMITTEE
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PRESIDENT MR. MAMORU KAWASAKI(ALTERNATE – MR. LOH YOON SOON) SELAYANG SOLDER SDN BHD
VICE-PRESIDENT MR. TEOH LAY HOCK NIHON SUPERIOR (M) SDN BHD
HON. SECRETARY MR. C.S. LIM METAL RECLAMATION (IND) SDN BHD
TREASURER MR. JASON LEE HENKEL (MALAYSIA) SDN BHD |
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Letters to the Editor are
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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 MR. CHEN TIEN YUE 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-COMMITTEEMR. LOH YOON SOON
MR.
TEOH MR. C.S. LIM
MR.
JASON LEE MR. CHEN TIEN YUE
TN.
HAJI MUHAMAD NOR MUHAMAD
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Tel: 03
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– 21616179 Email: mtpmasec@mtpma.org.my The Malaysian Tin Products Newsletter is published
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The opinion and statements expressed in the Newsletter are not necessarily
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Dear Members,
According to Bank Negara, Malaysia’s economy expanded by 5.9% in 2006, following a GDP growth of 5.2% in 2005. The country’s steady economic growth during the year was underpinned by robust domestic demand and continued strong exports, particularly for electronics and primary commodities. Resulting from this favourable economic growth, employment also strengthened as seen in the decline in retrenchments and acceleration in jobs creation. The rate of unemployment during the year remained unchanged at 3.5%. Inflation, however, increased slightly to 3.6% in 2006 from 3.0% in 2005, primarily due to higher prices for retail petroleum products and utilities.
Going forward, Bank Negara expects Malaysia’s economy to grow by 6.0% in 2007, on the back of an expanding global economy and sustained domestic demand, with inflation moderating to 2.5%.
The local electronics and electrical products sector benefited from the upturn in the global electronics cycle during 2006. For 2007, this sector is expected to moderate somewhat following anticipated moderation in the US economy, the sector’s primary export destination. The sector, however, will continue to remain the largest contributor to Malaysia’s export earnings.
With this fairly positive economic outlook for the New Year, I do hope that members of the Association will continue to stay up-beat, and to remain resilient in the face of challenges that may lie ahead.
One such challenge, of course, is the current prevailing high metal prices, in particular tin. This is a global phenomenon due to supply constraints. Let us hope that suitable efforts will be forthcoming to relieve pressure on the high escalating prices. On our part, we should continue to be vigilant and to institute countervailing measures to lessen the impact of such price hikes on our overall production costs.
With best regards,
Mamoru Kawasaki
President
ELECTRICAL & ELECTRONICS NEWS
Worldwide sales of semiconductors rose 11.3 per cent to US$22.7 billion (US$1=RM3.51) in November from a year earlier, as economic confidence led to increased sales of customer products such as digital cameras. Global chip sales rose 3.1 per cent in November from October, the fifth straight month of record sales, the US Semiconductor Industry Association (SIA) said in a statement. “Consumer purchases of electronic products remained strong and drove semiconductor sales to record levels,” SIA president George Scalise said in the statement.
(Source: New Straits Times, 4 January 2007)
US electronic companies in Malaysia may see sales grow by about 8% to more than RM77 billion this year from RM72 billion projected for 2006 as global demand for semiconductors remains healthy despite fear of a slowdown in the US economy. Malaysia could benefit from strong demand for semiconductors in line with US-based Semiconductor Industry Association’s (SIA) latest projection of a 10% global growth for the industry this year, Malaysian American Electronics Industry (MAEI) chairman Datuk Wong Siew Hai told FinancialDaily.
He said demand for handheld devices and other high-end consumer electronics in the US had been resilient despite the volatile global economy last year and would continue to drive growth this year. Wong, however, discounted 2% from the projected global growth of 10% for the Malaysian industry because MAEI members did not participate in all sectors of the industry. “We will have a more accurate projection in March after we complete a survey in February,” he said, adding that MAEI members would finalise their annual production targets this month.
MAEI represents all major US electronics companies operating in Malaysia. Its membership of 17 companies account for about a quarter of Malaysia’s total electrical and electronic (E&E) output in 2005. While some economists have projected that Malaysia’s export growth would slow down this year as the US economy is slowing down, the latest statistics show that Malaysia’s exports to the US are still robust.
According to the American Importers Association (AIA), Malaysia’s exports to the US grew by some 10% to US$36.76 billion (RM129 billion) last year and are expected to reach US$40 billion in 2007. “People are jittery mainly due to a housing sector slowdown in the US but it has not affected consumption. The outlook for Malaysia may not be as gloomy as some people expect,” Wong said.
On whether multinationals were pulling out of Malaysia, he said there were actually expansions of electronics companies operating in Penang. “I don’t understand why people have such an impression (of companies pulling out from Penang),” he added. MAEI had projected that its members would increase their capital investments in Malaysia to RM3.1 billion in 2006 from RM2.76 billion in the previous year. Wong said even if a retrenchment exercise were to take place, those who lost their jobs would be absorbed by other companies because the industry was facing a shortage of skilled workers such as engineers.
(Source: The Sun, 15 January 2007)
Metals Post Huge Gains on Supply Squeeze
Industrial metals finished the year with huge gains, some more than doubling, as tight supply continued to attract investors to the market. Metals outperformed the FTSEurofirst 300 share index, which was up around 16 per cent on the year, and the MSCI All-Country World Index, up around 19 per cent. Three-months copper futures on the London Metal Exchange, the contract that has proved most popular among speculators in the financial markets, ended 2006 at US$6,330 per tonne, up 44 per cent from its closing price on the last trading day of 2005. The strongest performer was nickel, which ended the year up 140 per cent. Poorest performing of the base metals was aluminium, rising a comparatively slim 23 per cent.
All the base metals traded on the LME hit new highs this year as fund managers, encouraged by a fundamental picture of tight supply struggling to meet strong demand from China, bought futures contracts. Copper peaked in May while most other contracts came into their own in the second half of the year. Since the start of the commodities bull run earlier in the decade, the market has focused on demand, especially from the rapidly-growing economy of China, as the major force behind the price rise.
Fund managers, who between them have allocated billions of dollars to metals and other commodities, argue that demand is only one side of the equation, and supply is limited by the slow pace of building new mines and smelters. On top of this, strikes and accidents at mines all over the globe gave metals extra support.
More attention turned to the supply side in 2006, Societe Generale Corporate and Investment Banking said earlier last month. “2006 may mark the shift from demand-driven markets to supply-driven markets,” the French investment bank said. “As 2006 has already showed a significant slowdown in most underlying demand growth rates, some investors … have already revised downward their expectations of demand.”
Stocks in LME-registered warehouses are often used as a gauge of demand for metal. By this measure, demand for copper has indeed fallen over the year. Stocks were 182,800 tonnes on the last trading day of 2006, more than double their level at the end of December the previous year. Cash copper peaked at US$8,800 per tonne in May, way ahead of the highest forecast by any analyst at the start of last year.
Tin charged to a 17-year high of US$11,850 in late December, spurred by expectations of lower shipments from Indonesia this year as the Government plans to crack down on unregulated mining. “Tin which has been in a market deficit according to our calculations of almost 6,000 tonnes is likely to remain in deficit this year, and indeed the deficit could grow further if these measures are put in place,” Standard Bank said. Three-month tin ended the year up 77 per cent at US$11,510 while stocks were down 22.5 per cent.
Zinc, which many market observers picked as a good bet for 2006, ended the year at US$4,230, up 122 per cent. Its cash price peaked at US$4,603 per tonne in November, more than double analysts’ expectations at the start of last year. Nickel stocks plunged from more than 35,000 tonnes at the end of the previous year to 6,648 at the end of 2006, and its three-months futures contract ended at $33,325 per tonne, up 140 per cent.
Three-months lead ended the year up 59 per cent at US$1,670 per tonne, after hitting a contract high of US$1,785 last December, supported by falling stocks and strong demand from battery makers. Aluminium ended the year at US$2,805 per tonne, up 23 per cent. Supply of the light metal is not as tightly constrained as are other industrial metals, analysts said.
(Source: New Straits Times, 1 January 2007)
The ringgit will strengthen further against the US dollar going into 2007, in tandem with other major regional currencies, mainly on a better outlook for Asian economies, said economists. RAM Consultancy & Services chief economist Dr Yeah Kim Leng told StarBiz he was “comfortable” with a 2% to 3% annual appreciation of the ringgit. He expected the local unit to touch 3.40 to 3.45 by end-2007.
“We expect the foreign exchange market to be fairly volatile this year, partly due to political pressure on the Chinese government to allow the renminbi to strengthen faster. With the Asian economies growing at a quick but differing pace, we think there will be some currency speculation this year as well,” he said. Yeah added that improving economic fundamentals in many Asian countries, such as their rising current account surpluses, would mean investors would continue to expect strong performance in Asia and thus, a sustaining of capital inflows to the region. “Comparing the ringgit with the other regional currencies as well as the sterling and euro, we expect momentum from 2006 being carried forward into the year, depending on the fiscal fundamentals and the inflation risk premium of each country.”
CIMB head of economics Lee Heng Guie said sentiments towards Asia remained positive, concurring with Yeah that the strengthening of economic fundamentals, the minimising of financial and external vulnerabilities as well as fairer asset valuations were among Asia’s attractions. “Net Asia external debt levels have declined and there has been strong accumulation of foreign reserves; public sector fiscal positions have improved and banking systems have strengthened,” Lee said, adding that these positive indicators attracted private capital flows of up to US$97.9bil to emerging Asia in 2006, up 53% from US$64bil in 2005. However, he said he expected capital flows to moderate to US$69bil in 2007 on global monetary tightening and the slowing global economy.
OSK Securities economist Sia Ket Ee, meanwhile, had a slightly more conservative forecast of 3.50 for the ringgit for end-2007, saying Malaysia’s economic fundamentals supported a gradual appreciation in the ringgit. “The currency will support our trade surplus. However, we do see some pullback in the appreciation due to more positive financial results coming out of the US,” he said.
Sia said the weakening of the dollar had been marginally “overdone”, adding that monetary data showed that the US was performing economically and financially better than expected. “The Chinese monetary authorities recently said they would not be pressured into sharply appreciating the renminbi in 2007. So that is another reason we are expecting a mild slowdown in the appreciation of regional currencies,” he added.
On Friday, the ringgit closed at 3.5280 against the greenback, its strongest level since the July 2005 de-pegging.
(Source: The Star, 2 January 2007)
Malaysia’s exports are expected to rebound sharply in November on stronger orders for electrical and electronic (E&E) products and commodities which surged following the month of festivities. The longer working month to meet year-end orders will most likely improve the exports outlook and trade activity for November. Economists polled by the Business Times expect exports to post a 16.49 per cent average growth year-on-year compared with imports at 16.5 per cent growth and trade balance to average RM10 billion.
The Ministry of International Trade and Industry (MITI) is due to release the data tomorrow. Exports in October saw the first drop in almost five years when it fell 3.4 per cent from a year ago while imports also saw a small growth of 1.4 per cent year-on-year. MITI attributed the drop to lower exports in refined petroleum products, machinery, appliances and parts, E&E as well as chemical products. Liquefied natural gas, crude petroleum and palm oil, however, recorded increases.
CIMB Securities chief economist Lee Heng Guie said another reason for the better showing in November is due to the CPO prices in November which surged to RM1,689 per tonne compared to RM1,550 in October. Tracking regional exports in November, Lee said most trading economies have also posted strong growths including Thailand (22 per cent in November from 21 per cent in October), Indonesia (29.6 per cent in November from 9.6 per cent in October) and Singapore (8 per cent in November from 2.7 per cent in October).
K&N Kenanga economist Wan Suhaimi Saidi however warned that the underlying demand for E&E products is weakening because of slower demand from the US, which is Malaysia’s largest market. “Any spike (in E&E exports) would be due to inventory adjustment,” he said.
Economists were also concerned about the appreciation of the ringgit this year, which may affect export competitiveness. The ringgit, which rose by 7 per cent last year, has been trailing other currencies as they strengthened against the US dollar.
(Source: New Straits Times, 4 January 2007)
Tin took a breather on the Kuala Lumpur Tin Market yesterday to finish US$160 lower at US$12,100 per tonne after closing at a new all-time high of US$12,260 last Friday. Last week, the metal hit historic highs of above US$ 12,000 per tonne in line with its strong showing on the London Metal Exchange (LME), the benchmark for the global tin market. A dealer told StarBiz that market fundamentals remained intact as fear over supply constraints from Indonesia as well as strong demand from China and India continued to support the metal’s price outlook. He expected tin to trade at US$12,100 to US$12,300 per tonne within two weeks.
After clamping down on illegal tin mining operations late last year, Indonesia last Tuesday banned unregistered companies from exporting refined tin. The Indonesian government said refined tin for export must be produced from ore obtained from legal mining contractors. It also said that the shipment of refined tin would only be allowed after exporters had paid royalties. Dealers said world tin supply could likely be disrupted by Indonesia’s decision to close down its illegal tin mines. The illegal mines, mostly in the Bangka-Belitung islands, account for almost half of the republic’s refined tin exports.
This could result in a shortfall of about 5,000 tonnes in production, dealers said. Indonesia-based PT Timah, one of the world’s largest tin companies, is also reducing production by about 4,000 tonnes this year. The move was to support the trading of the metal on the international market.
An industry source said the LME tin stocks were currently running low, at 12,520 tonnes, down from 16,725 tonnes at the start of last year. He said there was a growing switch to tin solders from lead among manufacturers globally. This year’s global tin consumption is pegged at 364,500 tonnes, up 12% from last year.
On Bursa Malaysia, tin-related counter Malaysia Smelting Corp Bhd added 5 sen to RM7.20 and Perusahaan Sadur Timah Malaysia Bhd rose 22 sen to RM3.22.
(Source: The Star, 30 January 2007)
6 per cent Growth this Year
The Malaysian economy is poised to grow by six per cent this year from 5.9 last year. Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said yesterday domestic demand, which would remain resilient, would continue to drive economic growth this year. “While the private sector, particularly private investment, continues to provide the impetus, the public sector is expected to play more significant role in 2007,” she told a Press conference after releasing Bank Negara’s Annual Report 2006.
The mining and construction sectors are expected to turn around with positive growth this year. The construction sector, in particular, would benefit from higher public expenditure on Ninth Malaysia Plan projects as well as strong demand in the non-residential properties segment. The electrical and electronics sector is expected to moderate in the first half of the year before picking up in the later part of the year.
Zeti said that although demand from overseas was expected to moderate this year, growth in the Asian region was expected to remain favourable, supported by domestic demand particularly in China and India.
The manufacturing sector is envisaged to record a sustainable expansion of 6.6 per cent, from seven per cent last year, supported by resource-oriented industries and industries related to the construction sector. In the services sector, growth will be underpinned by the finance, insurance, real estate and business services sub-sectors, with higher contributions from the Islamic financial services sector and the newly-formed investment banks.
The sector’s growth at 6.3 per cent would be further spurred by the expected higher tourist arrivals during the Visit Malaysia 2007, Zeti said. Meanwhile, the agriculture sector is expected to grow at a moderate pace of 3.2 per cent this year while commodities are expected to benefit from the continued high prices. Zeti also said that inflation was expected to moderate to average between two and 2.5 per cent this year.
(Source: New Straits Times, 22 March 2007)
Packed tour buses arrive daily at the Royal Selangor headquarters in Setapak Jaya, Kuala Lumpur with eager tourists from the United States, Europe, Asia and Australia. They are piqued by Malaysia’s famous pewter brand, Royal Selangor. A common remark is that Royal Selangor’s story is closely linked with Malaysia’s social and economic transformation that began in the tin mines. Inside a dramatic glass and steel-clad building that also houses a museum, visitors are reminded of the Royal Selangor story that grew from a modest shophouse operation to an international brand.
In the museum, multi-lingual guides begin the tour at the large panel where a black-and-white photograph of an old Hakka man with wire-rimmed spectacles hangs. The steady gaze of Yong Koon Seong tells an amazing story of a city’s beginnings, the tin industry and of a pewtersmith and his family. If the visitors are fortunate, Datin Chen Mun Kuen nee Yong, the 64-year-old granddaughter of Yong Koon Seong, would pop in and enquire if they need any assistance (her grandfather subsequently shortened his name to Yong Koon).
The Yong family story began at the time when Kuala Lumpur was already a state capital. It was in late 1885 that the founding father of Royal Selangor, Yong Koon, sailed from the south-eastern Chinese port of Shantou in Guangdong province to Malaya. He was 15 years old then. Three years before sailing to Nanyang (as Southeast Asia was known in the Chinese world), Yong Koon was already an apprentice pewtersmith in Shantou.
“I don’t remember much of my grandfather,” says Mun Kuen in meticulous English picked up from the Pudu English Girls School in Kuala Lumpur. “But what I do remember is my grandfather being fiercely proud of his Hakka origins. He would scold his grandchildren if we spoke another dialect, saying Hakka people must speak Hakka, otherwise you are a foreign devil! We spoke English, Malay and Cantonese instead.”
Mun Kuen recalls how her grandfather’s story was handed down to the grandchildren by her father, Yong Peng Kai. After landing in Malaya, Yong Koon joined his two brothers, Chin Seong and Wai Seong, in the newly established tin mining town. “He left neither diaries nor letters,” says Mun Kuen. Besides early photographs, there are also Yong Koon’s tools and a pewter melon teapot he designed in the museum. “There is an interesting story behind the melon teapot,” says Mun Kuen, while holding it to be photographed. “We call it the lucky melon-shaped teapot.”
“When bombs were being dropped during the Second World War, hungry villagers in Kajang were scrambling for rice in a godown. One of the villagers, Ah Ham, ran in during the bombing. Instead of picking up the rice bags, he saw a melon-shaped teapot on the ground. As he bent to pick it up, shrapnel whizzed over his head. Ah Ham was convinced the teapot saved his life. In the 70s, Ah Ham sent his teapot to a pewter factory for cleaning. Someone immediately recognised the Ngeok Foh touchmark (Yong Koon’s handiwork) at the base. “Today, the teapot is part of the museum collection and has since inspired a new range of melon teapots.”
In 2003, Mun Kuen’s daughter, Chen May Yee, who studied journalism in Columbia University and is now based in the United States, put together the family story in a coffee table book – The Royal Selangor Story. Harvard Business School’s John A. Davis promptly referred to the story as “a model family business story”.
May Yee’s story traces the pewter business to a shophouse in 23, Cross Street (the present Jalan Silang). Yong Koon and his tinsmith brothers made a variety of simple household items at Cross Street, from pails to gutters and weighing scales, and selling pewter incense burners, joss stick holders and candlestands for the altars of Chinese prospectors. As his pewter business flourished, Yong Koon returned to China to bring back a bride, Loh Pat.
They had sons Peng Pow, Peng Sin, Peng Kai and Peng Seong who were, according to Peng Kai, “born and bred in Pewter dust” since the family worked and stayed in the shophouse in Pudu. “Yong Koon would not have gone far without his formidable wife, Loh Pat, by his side,” writes May Yee. Loh Pat was described as a “no-nonsense Hakka woman” who saved enough money to buy their own shophouse at 219, Pudu Road, where Malayan Pewter was established.
Yong Koon and his sons later went separate ways because of differences over how the business should be run. From the split, three other pewter companies – Tiger, Lion and Selangor – emerged. The eldest son remained with Malayan Pewter until it was taken over by Peng Seong. The struggling company folded in 1950. Before this, Peng Sin, Peng Kai and Peng Seong had set up Tiger Pewter at the original premises after parting with their eldest brother. Within a year, Tiger folded but was revived as Selangor Pewter. While the other two brothers branched into other businesses, Peng Kai, the third son, focused on pewter and established its name.
In 1952, the patriarch Yong Koon passed away, aged 81. Peng Kai had by then married Guay Soh Eng, a Hokkien and this is the branch of the family that has kept Yong Koon’s pewter business alive. Peng Kai once remarked to his friend, retired Singapore police officer Sun Sai Lum, that Soh Eng was his right arm. “She was the stabilising factor, very calm and very level headed. He was the highly stressed worrier,” recalls Sai Lum. Their eldest son, Poh Sin, was born in 1939, daughter Mun Ha in 1941, Mun Kuen in 1942 and youngest son Poh Kon in 1945.
Subsequently, they moved operations from Pudu to the present factory in Setapak. Peng Kai “worked alongside his employees, sweating in his Pagoda-brand white cotton vest, always paying his staff promptly and never raising his voice”. One employee, Hoo Wee Meng, remembers: “It was not unusual for a Chinese businessman to scold and use foul language. But Peng Kai treated us like family. I worshipped him.”
Once pewter became an item of fascination for tourists, it spawned a variety of decorative items. The company’s royal link is a story which Mun Kuen relates with fondness. “The late Sultan Salahuddin Abdul Aziz Shah was in Australia when he entered a store and was asked respectfully where he came from. He replied ‘Selangor’ and the store assistant gave a look of recognition by saying ‘Selangor Pewter’. The Sultan was impressed that pewter was making his state famous. On his return, he decided that the company should have royal status, which he conferred in 1979.”
Today, the younger generation such as Chris Yong, Andrew Yong, Sun May Foon, Chen Tien Yue, Yong Yoon Li, Yong Yoon Kit are involved in the family business in various capacities. “They are taking it to another level,” says Mun Kuen. It was the third generation of the Yongs led by Datuk Yong Poh Kon and Yong Poh Shin who took Yong Koon and Peng Kai’s vision further by going global. As May Yee says: “The enterprise has sprouted wings.”
Along the way, Royal Selangor acquired Canadian Seagull Pewter, Englefields, a 350-year-old London company, and set up Selberan, a jewellery company. Royal Selangor also went into silver with acquisition of Comyns, the London company of silversmiths whose designs date back to the 17th century. Today, the company exports to more than 20 countries and has retail stores in London, Toronto, Melbourne, Tokyo, Bangkok, Shanghai, Hong Kong and Singapore. If Yong Koon was alive today, he would be proud that his humble business has grown into a giant.
(Source: New Sunday Times, 7 January 2007)
Royal Selangor to Stay Fresh with New Talent
Royal Selangor will focus on developing its staff to ensure that the brand and company stays up-to-date and relevant. Two years ago, the company undertook a rebranding to project a new attitude through its product offering, an advertising campaign and a new store concept. This year, Royal Selangor Marketing Sdn Bhd will hire young talent who can reflect the new attitude and inject freshness into the company.
Recently-appointed general manager Chen Tien Yue said the retail industry in Malaysia was not appreciated enough as a career option. “People do not think of retail as an attractive career. If they have options, they will choose the usual path. “We hope to change their perception through our retail management executive (RME) programme, “ he told StarBiz.
The programme will see Royal Selangor recruiting new staff and rotate them among the company’s different operations. This would give the candidates a wider exposure in retailing, corporate sales and marketing. “Besides getting an overall feel of the various departments, the candidates will also be mentored by senior managers,” Chen added. In Malaysia, Royal Selangor has 25 stores and more than a hundred staff.
Chen said the company wanted to be more innovative in its marketing strategy. “We can get younger and less experienced people and evolve them either in the retail structure or other parts of the organisation. Retailing is a good way to expose them to the company’s business and we will let them decide if they want to remain in retailing or other department,” he said. The RME is targeted at fresh graduates, including those with a few years’ working experience who are hoping to change career path. “We want to use this programme to identify high performers and promote them very quickly,” Chen said.
(Source: The Star, 3 February 2007)
Royal Selangor ushers in the Year of the Boar with four new designs. The Limited Edition plaque, Bountiful Blessings, depicts eight piglets gamboling amongst abundant peach blossoms and peaches, illustrating an abundant and joyful spring, and adding to its auspicious significance. The last and twelfth of the Zodiacal Animals, the boar is popular symbol of wealth, believed to bring bountiful riches and good luck, while peaches are associated with wealth, longevity and well-being. The peach blossoms accentuating the wooden frame are embellished in 24K gold for the added touch of luxury. A beautiful poem is engraved onto the plaque. Only 1,000 units are available for sale worldwide.
Another of Royal Selangor ’s offering is the Prosperity Pig pewter figurine. Affectionate and endearing, the figurine is meticulously rendered to reflect the abounding joy and felicitous blessings associated with the Lunar New Year. Embellished with the character fu, which means blessings and prosperity, the Prosperity Pig is surrounded by exuberant foliate motifs in high relief.
Royal Selangor ’s Year of the Boar zodiac range is made complete with a smaller figurine of an adorable piglet as well as a charming decorated plate. Prices for the zodiac range start at RM120. In addition, Royal Selangor also offers five Chinese New Year gift packages. An ideal gift, Fortune is an auspicious trinket while Bountiful, Oriental, Peace and Longevity present the perfect setting for a warm family reunion. The Chinese New Year gift packages are available at all Royal Selangor stores and authorised dealers. Prices range between RM50 and RM450.
(Source: Star Special, 5 February 2007)
They’re the young and dynamic great-grandchildren of Royal Selangor founder Yong Koon, and they’re poised to take the more-than-a-century old family business into new and interesting directions. For cousins Yong Yoon Li and Chen Tien Yue, it’s an exciting industry to be in, but according to them, they were never groomed to take over the business. Rather, they were given a freehand to determine the direction of their own lives. Yet, somehow, they’ve found their way back home to the Royal Selangor brand.
“There was no overt pressure or expectation (to join the company),” said Chen, 29. “But there was a lot of covert pressure!” said Yong jokingly. “Under the surface, now that you mention it!” Chen chipped in. “But really, none of us were told that we have to work with the company. So, we all went and did our own thing, and those who ended up wanting to join the family business did so. So it’s not the sort of stuff where they hammer it into you right from the start.”
Doing their own thing
Yong, 36, added: “In fact, we were encouraged to get a university degree. But once we got our degree, we were encouraged to work elsewhere for four to five years, get external experience rather than go immediately into the company. We were not offered jobs after we graduated.”
Chen graduated from Oxford University’s Balliol College in 2000 and worked as a risk management trainee and business analyst before joining Royal Selangor in 2004. Now, as general manager of Royal Selangor Marketing, he heads the corporate sales team.
Yong has a Masters in engineering from the University of Birmingham and a Masters in business administration from IMD Lausanne, Switzerland. He started his career in the auto industry, and was, at one time, a design engineer for Team Lotus International in Britain. He continued to work in motorsports before returning home in 1994 to be involved in the start-up of TVR Malaysia. He joined Royal Selangor in 2005, and is now general manager of Royal Selangor International.
So what made them join the company, since there was no pressure from the family? Said Chen: “In my case, I think it’s a very interesting industry. It’s a business where you design and make nice things that hopefully people will be proud of. So forget the fact that it’s a family business. It’s still not a bad industry. At the time, it wasn’t a conscious decision where I thought I would do this for the rest of my life. It was something I wanted to try to see what it was like working here. And I’m still here!”
Said Yong: “I was in a different industry for seven to eight years before I decided. It’s not just that the industry is interesting, but the company is also good. As you can see, not many companies in Malaysia have a heritage as long as we have. Also, there are a lot of potential and opportunities to develop the brand.” But both agreed that working for one’s own family does not make the job any easier. They still have to work as hard as anyone else, and because there’s a family legacy involved, they have to live up to that in some ways.
Working under pressure
Yong explained: “People expect a lot … This company is four generations old now. A majority of our employees have been here for a long time, 20 to 30 years. They would have seen how my grandfather worked, how our parents work. Obviously now, they are going to see how we work. So there’s that legacy as well. We’re continuously being scrutinised by everybody. No, it’s not any easier. I haven’t got my sports car yet,” he laughed.
Chen thinks there are pros and cons to working in a family business. “The pros are that you get exposure to every part of the business even if you take on a specific role,” he said. “The cons … (laughs) I think there is some pressure.” Yong recalled that when they were children, they spent a lot of time at the factory in Setapak Jaya, KL, where there is now a Visitor Centre. Chen remembered how they would always be at the office after school. As such, most of the staff still working there would have seen them as children.
“We used to wear these T-shirts that said, ‘Beautifully handcrafted,’ ” Chen laughed. “Walking advertisements!” And whenever there was a VIP visiting the offices and factory, everyone would be there. Yong recalled visits by such famous folk as actor Lee majors, boxer Joe Frazier, pop stars Donny and Marie Osmond, Prince Edward, and astronaut Richard Clifford. Majors even carried some ingots that were tied together, since he was famous for playing the Six Million Dollar Man.
“But they weren’t real ingots,” said Yong. “We still have the photos! I was in diapers when Lee Majors came here,” Chen laughed. When Mel Gibson visited sometime in the late 1990s, both of them were not there to witness it. “But (Tien Yue’s) mother was and she didn’t recognise him,” Yong quipped. “It was very funny,” said Chen. “They took photos and sent them over, and my mum asked me, ‘Who’s this guy? Everyone went gaga over him!’ ”
Enjoying themselves
These days, both men are kept busy by their jobs. They joked that even on weekends when they go shopping at the mall, they would visit the Royal Selangor stores or check out what their competitors are doing. “But in a way, we’re lucky because it’s enjoyable stuff,” said Chen. “You want to know about the retail market, what the other brands are doing. It’s not such a chore.”
Yong tries to get home on time every day so that he can spend time with his two children. As for Chen, apart from time with his girlfriend, he involves himself in some active sports once in a while. In fact, he broke his ankle wakeboarding last August, and spent two weeks in a wheelchair. Yong said motorcars still fascinate him. “So, once in a while, I still do something related to that,” he said. “I have a couple of old cars that I look after. But with two young kids now, I hardly do any of that anyway.”
(Source: The Star, 20 February 2007)
Perstima Raising Output
Tinplate maker Perusahaan Sadur Timah Malaysia (Perstima) Bhd plans this year to increase production at its Pasir Gudang plant by 20% and install an additional shearing line for its Vietnam plant. Chairman Tan Sri Ab. Rahman Omar said: “We need to increase our capacity given the strong demand for steel and steel related products.”
He told StarBiz that the upgrading process in Johor was expected to be completed by year-end. “This will enable Perstima to capture new markets and ensure its price competitiveness,” he added. Rahman said Perstima had been performing well with the improved demand in the domestic market. “However, due to the limited nature of the local market, the group will need to focus on exporting more value-added tinplates especially with the current strong overseas demand.”
Of its total production of between 200,000 and 240,000 tonnes annually, about 20% is exported to countries such as Iran, Bangladesh and Sri Lanka. Rahman also said tinplates had shown good growth potential in Vietnam. Perstima set up its wholly owned subsidiary Perstima (Vietnam) Co Ltd, the first tinplate manufacturer in Vietnam, in 2002. The company produces prime grade tinplate equipped with a Halogen type Continuous Electrolytic Line with a capacity of 90,000 tonnes per annum. “We have a significant 70% market share in Vietnam and hope to maintain it,” said Rahman.
On the tinplate outlook, he said there were threats such as alternative packaging materials, potential increase in raw material prices like metallic tin and cheap imports of tinplate from South Korea, Taiwan, China and India. “The tinplate business is expected to remain stable depending on the movement of the US dollar,” he added.
Looking forward, both prices and demand will strongly depend on South Korea POSCO’s new ETL (electrolytic tinning line) venture in China, which is expected to begin operations by year-end. Analysts said the new China-based Baosteel ETL plant and India-based Tata Group-Corus merger may somewhat disrupt the overall regional steel business this year.
(Source: The Star, 21 February 2007)
Endangered Animals Immortalised in Pewter
Royal Selangor introduces Spring 2007 Collection
Royal Selangor has introduced its Spring 2007 collection, which features a wide range of pewter ware encompassing a variety of designs and styles, from classical collections to children’s gifts and homeware, recently. “In bringing this season’s designs to life, we have recruited the help of a few distinguished international names – Danish legend Erik Magnussen, British designer Nick Munro and Australian design studio zuii,” said Royal Selangor marketing general manager Chen Tien Yue during the media preview.
Five ranges – Mandarin, Erik Magnussen wine accessories, Palladio Home, zuii, and home and bath range Island – will be launched on April 13 at the Royal Selangor Visitor Centre in Kuala Lumpur. According to Chen, Mandarin is a brand new range that features 12 items, including photo frames, vases, candle stands and platters, while Palladio Home was introduced last spring; this time around, another 15 items in different designs for the table top are being added to complement the existing photo frames in the collection.
The Erik Magnussen collection comprises 11 sleek wine accessories in simple yet stylish designs. Among the items are a bottle stopper, wine funnel, decanter, corkscrew, pitcher and wine cooler. The range reflects Magnussen’s minimalist approach in overcoming complex issues in usage. The zuii range highlights the lustre of pewter through the movement of subtle undulating curves. The collection comprises 12 designs of various items from salt and pepper shakers to photo frames, candle stands and vases. The range was also exhibited at the recent Freestyle: New Australian Design For Living exhibition in Melbourne Museum.
Bath and home accessories in the Island collection exude tranquillity and beauty with textured surfaces. The vases, in different shapes, are named after popular islands such as Pangkor, Redang, Andaman and Lombok. Other items in this collection include beakers, candle stands, soap dishes and soap dispensers. For the kids, Royal Selangor has added six new designs to its Teddy Bears’ Picnic range, which will be perfect as gifts for christenings and birthdays. Meanwhile, Nick Munro’s Ark Collection features some of the most endangered and threatened species in the world and proceeds from the sale of this collection will be contributed to the Malaysian Nature Society Habitat Conservation Programme to save the Malayan Tiger. The Ark and the Teddy Bears’ Picnic collections will only be available at all Royal Selangor stores in July.
(Source: The Star, 19 March 2007)