JANUARY – MARCH 2011
Malaysian Tin Products
NEWSLETTER
MANAGEMENT COMMITTEE
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PRESIDENT MR. MAKOTO HARA (ALTERNATE – MR. KONG KEAN BENG) NIHON SUPERIOR (M) SDN BHD
VICE-PRESIDENT MR. CHEN TIEN YUE (ALTERNATE – Ms. KEONG JOO DEE) ROYAL SELANGOR INTERNATIONAL SDN BHD
HON. SECRETARY MR. C.S. LIM METAL RECLAMATION (IND) SDN BHD
TREASURER MR. MAMORU KAWASAKI(ALTERNATE – MR. LOH YOON SOON) SELAYANG SOLDER SDN BHD
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COMMITTEE MEMBERS MR. JASON LEE HENKEL (MALAYSIA) SDN BHD
EN. AB. PATAH MOHD PERUSAHAAN SADUR TIMAH MALAYSIA (PERSTIMA) BHD MR. 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. MAKOTO HARA Mr. Kong Kean Beng MR. CHEN TIEN YUE MR. C.S. LIM MR. MAMORU KAWASAKI MR. LOH YOON SOON
MR.
JASON LEE TN. HAJI MUHAMAD NOR MUHAMAD EN. FAIZUL AZRI AZIZAN
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Tel: 03
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– 21616179 Email: mtpmasec@mtpma.org.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,
I do hope that you like the new cover of our 2011 Newsletter.
At this opportunity, may I record our sincere thanks to those members who have
provided advertisement support to this 2011 Newsletter edition. The Newsletter,
which serves as an important publicity, public relations and promotion media is
certainly an excellent platform for Association members to advertise their
company, products and services at minimal cost. Please, therefore, continue with
your support of future issues.
On the global front, the world economy rebounded strongly in the year 2010. But
recent developments, however, are causing me to harbour some mixed feelings.
Whilst on the one hand I am pleased that the global economy now seems to be on a
fairly stable footing, but on the other, the current steep rise in tin and other
metal prices have brought about much concern and consternation to us in the
tin-based products manufacturing business. Indeed, it has become a pretty
difficult and arduous task for all of us nowadays to contain our product costs
without having to pass down the raw materials price increases to customers,
which rather unfortunately is unavoidable.
In March this year, as I am sure you are very much aware, Japan was hit by a
8.9-magnitude earthquake and 30-foot tsunami. Malaysia and other Asian countries
export a lot of low value-added intermediate input components to Japan. Given
that many areas hit by the said earthquake and tsunami are homes to the auto,
semiconductor and other electrical and electronics (E&E) industries, which
import these components, economists have predicted that Japan’s exports of these
E&E products will experience a temporary slowdown. Hence, its imports of such
input components from us and our Asian counterparts will be similarly affected.
On the home front, as you may already know, our Association will be holding its
21st Annual General Meeting on 29 June 2011. I hope to be able to see you all at
this forthcoming AGM. One of its agenda items will be the election of Management
Committee members to serve for the ensuing term. So please do turn up, and to
catch up with the other members and peers to share news and views over the
Annual Luncheon held afterwards.
In concluding this brief note, may I on behalf of the Management Committee wish
all Association members a belated Happy and Prosperous New Year. And on behalf
of all Japanese expatriates stationed here, I wish to express our sincere thanks
and gratitude to the Government and people of Malaysia for all the help,
assistance, moral and material support extended to Japan in the aftermath of
this recent devastating earthquake and tsunami.
Cheers.
Makoto Hara
PRESIDENT
MAEI: Investments Still Flowing Into E&E Sector
Investments in the electrical and electronics (E&E) industry are still
forthcoming as "positive" factors continue to woo big and small global players
to Malaysia, says the Malaysian American Electronics Industry Association (MAEI).
Chairman Datuk Wong Siew Hai said those that have set up base over the past two
to three decades are expanding and extending their businesses. "I'm surprised at
comments that Malaysia is far behind other countries in terms of investments.
Many are surveying Malaysia ... if Malaysia is not it, why would they bother
looking?" Wong asked. He spoke at a media briefing after attending the first
industry dialogue with the International Trade and Industry Ministry in Kuala
Lumpur yesterday. "New companies which have come here said they have exceeded
their goals in terms of costs, kind of delivery, product start-up and quality."
Wong said although many of the potential investors seem to be industry's
"smaller boys", it augurs well as this means that investments will continue to
grow in their companies.
One of the five umbrella bodies for the industry, the MAEI lauded the government
for getting things moving like enabling immigration process for visa work permit
and professional business pass decentralised to places like Penang. The move was
effective from this year. The dialogue, hosted for the first time in January,
was chaired by Minister Datuk Seri Mustapa Mohamad. Wong, however, said that
greater efforts must be exerted to resolve the unemployed graduate problems and
to ensure that they are industry-ready. The Economic Transformation Programme is
aiming to raise the number of design houses in Malaysia to 50. "They can be
trained if the government sets aside some money to train them over a six month
to a year period before they join the market. This could be along the same lines
the banking industry's two-year programme to train young graduates," he said.
The E&E industry is the largest contributor to the national gross domestic
product and employs the largest workforce. It accounted for 33.8 per cent of
total employment in the manufacturing sector in 2010. Wong urged the government
to grant work permits up to 10 years plus an additional five years with no time
limit as long as the companies are in need of their services. The other
associations attending the dialogue were the Association of Computer and
Multimedia Industry Malaysia, Malaysian Cable Manufacturers Association, The
Electrical and Electronics Association of Malaysia and the Federation of
Malaysian Manufacturers Malaysian Electrical and Electronics Industry Group.
(Source: New Straits Times, 18 January 2011)
Chip Prices Rise on Shortage of Tech Supplies
Prices for key technology components extended gains on Tuesday, as damage at
Japanese plants and infrastructure caused by Friday's earthquake and tsunami
threatens to disrupt the global manufacturing chain longer than many had
expected. Dozens of Japanese firms from component makers to electronics firms
and automakers are keeping their plants shuttered, while damage to
infrastructure including power, roads, rails and ports will take months to
repair.
Research firm IHS iSuppli said on Tuesday the quake and its aftermath could
result in significant shortages of some electronic parts and lead to big price
hikes. “While there are few reports of actual damage at electronic production
facilities, impacts on the transportation and power infrastructure will result
in disruptions of supply, resulting in the short supply and rising prices,”
iSuppli said. “Components impacted will include NAND flash memory, dynamic
random access memory (DRAM), microcontrollers, standard logic, liquid-crystal
display (LCD) panels, and LCD parts and materials.” Spot prices of NAND flash
chips extended their gains yesterday, rising nearly 1% after a 20% jump on
Monday, while DRAM memory chip prices gained 0.2% on top of a 7% on Monday,
according to price tracker DRAMeXchange.
Japan accounts for one-fifth of the world's semiconductor production, including
about 40% of flash memory chips used in everything from smartphones, tablets to
computers. Even if shipments of semiconductor parts affected by the quake were
disrupted for only two weeks, shortages and their price impact were likely to
linger until the third quarter, iSuppli said. Demand for NAND flash memory chips
has been surging, led by mobile devices and tablets such as Apple Inc’s iPad 2,
which is estimated to have sold almost one million units during its weekend
debut.
Toshiba Corp , which supplies about one-third of the world's NAND flash memory
chips, said it was still inspecting its System LSI factory in Iwate, the only
one halted by the quake and tsunami and could not say when it might reopen. The
factory produces microprocessors and image sensors. Fellow chipmaker Texas
Instruments on Monday warned its two suspended plants would take until July to
return to full production, though it had managed to redirect 60% of their output
to other sites. Canon Inc said it may not be able to resume production at three
factories making office equipment and lenses used in audio-visual players this
week. Sony Corp also said its eight factories making equipment ranging from
optical devices, IC cards, Blu-ray discs, chip equipment and lithium batteries
remained closed, with no guarantees on resuming date.
(Source: The Star, 16 March 2011)
Economic News
Malaysia’s Growth in 2010 Seen at Around 7pc
The Malaysian economy is expected to register growth in the region of 7 per cent
for 2010, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz. Zeti
said while the external sector may be affected by the slower global growth, the
growth momentum of domestic demand was projected to be sustained this year,
supported by the continued firm expansion in private sector activity. "Most
encouraging is that the private investment is expected to strengthen and become
an important contributor to the growth," Zeti said in her keynote address at the
welcome dinner for participants of the Financial Stability Institute-Executives'
Meeting of East Asia-Pacific Central Banks high-level meeting in Kuala Lumpur
yesterday.
Against the backdrop of continuing uncertainties, she said, Asia was expected to
continue to lead global growth, supported by strong macroeconomic fundamentals
and sound financial systems. Zeti said the revival of private sector economic
activity has been an important factor in sustaining the strong growth prospects
in Asia. "We are now entering the second year of global recovery. The rebound in
2010 has been largely led by the exceptional performance of the emerging
economies, in particular in Asia," she said. She said growth was expected to
remain strong this year, although at a more moderate pace compared with last
year's. "Amid favourable growth prospects, Asia will, however, have to manage
the impact of international developments given its high degree of economic and
financial openness," she said.
Zeti said the global attention was currently focused on the fiscal conditions of
several of the advanced economies, the progress in the financial reforms and on
the monetary and financial measures being implemented in the crisis-affected
economies. "A major challenge for most emerging economies in 2011 will be the
management of the highly-volatile capital flows. "The strong growth in Asia has
and will continue to attract this massive increase in global liquidity in the
form of capital inflows into the region," she said. She said this calls for
greater vigilance on the part of the policymakers in the region. "Several
regional economies have already implemented measures including macro-prudential
measures to preserve macroeconomic and financial stability," she said.
(Source: New Straits Times, 18 January 2011)
Employers Agreeable to More Pay
The Malaysian Employers Federation (MEF) has indicated that it is “agreeable” to
increasing wages for workers. Human Resources Minister Datuk Dr S. Subramaniam
said this was conveyed during its discussions with various stakeholders on the
issue of minimum wage for workers. “However, they are concerned about how
minimum wage is to be implemented in the country. We are still discussing the
matter with MEF,” he told reporters after presenting citizenship to four
applicants at the Ipoh City Council here yesterday.
However, Dr Subramaniam said his ministry would not consider any proposal to cut
EPF contributions from bosses in the wake of implementing minimum wage. MEF
executive director Shamsuddin Bardan had been reported as warning that a minimum
wage might cause unemployment due to local businesses’ failure to absorb extra
costs. There had since been proposals from various quarters that in wake of
minimum wage, EPF contributions from bosses should be reduced. Dr Subramaniam
said his ministry would embark on another round of discussion on minimum wage
with various stakeholders under the Performance Management and Delivery Unit (Pemandu).
“We are confident of having the Bill to set up the National Wages Consultative
Council tabled during the Parliament meeting in June. The council will then have
the legal standing to decide on the minimum wage, which should be in place by
year-end,” he said.
On the MyDaftar campaign, Dr Subramaniam said that as of yesterday, some 8,500
people, mostly from the Indian community, had submitted their applications for
MyKad, citizenship or birth certificates.
(Source: The Star, 25 February 2011)
Domestic Demand to Ease Volatility
The Malaysian economy is projected to grow by 5% and 6% this year as domestic
demand is expected to smoothen the volatility of the external sector. Domestic
demand, which is estimated to grow by 6.7%, is expected to maintain a strong
growth momentum, driven mainly by a robust expansion in private sector activity.
Private consumption, which is expected to be the main driver of domestic demand
growth with an expansion of 6.9%, will be supported by favourable labour market,
higher disposable incomes and sustained consumer confidence. The employment
situation is anticipated to improve, particularly with higher job creation in
the domestic oriented manufacturing and services sectors.
The expectation for further increases in private sector salaries and continued
high commodity prices will raise incomes of households. In addition, access to
credit will also provide support to household spending in 2011. Private
investment is expected to remain strong to post growth of 9.7% and contribute
favourably to growth. This will be supported by capital spending by the
domestic-oriented industries given the high levels of capacity utilisation and
positive business confidence, as well as the implementation of key initiatives
under the Economic Transformation Programme. The public sector will remain
supportive of growth, with higher capital spending projected in the second half
of 2011. Public consumption is estimated to grow by 7.2% and public investment
by 2.7%. This is attributable mainly to the implementation of new projects and
the acceleration of those ongoing to promote private sector activity.
On the supply side, all economic sectors are projected to expand firmly in 2011,
supported mainly by the continued growth of domestic demand. The services and
manufacturing sectors are expected to expand, albeit at a more moderate pace
given the high base of 2010. The services sector will remain the largest
contributor to growth, and grow by 5.9%, driven by the domestic demand-oriented
sub-sectors, such as wholesale and retail trade, finance and insurance, and
communication.
Trade- and manufacturing-related sub-sectors, however, are expected to grow at a
more moderate pace, in line with the expected moderation in external demand. A
similar moderation in growth is also anticipated for the export oriented
industries in the manufacturing sector. In particular, the E&E cluster will
experience a slower growth following the strong rebound in 2010. Nevertheless,
growth in the domestic oriented industries will continue to provide support to
the manufacturing sector. In addition, growth in the primary sector is projected
to strengthen. Agriculture is projected to grow by 3.4%, benefiting from the
expected turnaround in industrial crop production as palm oil production is
expected to increase in the second half of the year. Mining should see a rise by
2% from higher natural gas output after the opening of two new gas fields.
Further progress in on-going infrastructure projects and new projects due for
implementation under the Economic Transformation Programme will provide the
impetus for the construction sector as that sector is projected to grow by 5.4%
this year. Inflation is expected to average 2.5% to 3.5% in 2011, and will
continue to be driven by supply factors. Global commodity prices is expected to
rise on account of disruptions in supply due to adverse weather conditions,
geopolitical developments, speculative activities and the strong demand from
emerging economies. Domestically, while further adjustments to administered
prices are expected in 2011, these adjustments are expected to be gradual. This
will help to contain its overall impact on inflation. Meanwhile, the pressure on
domestic prices from demand factors is expected to be modest. Externally, the
larger trade surplus, together with the sustained services account surplus, is
slated to contribute to a wider current account surplus (12.5% of GNI) in 2011.
Gross exports are expected to expand at a more moderate pace at 5.4%, mainly on
account of a high base in 2010 and the slower growth in manufactured exports, in
tandem with the projected moderation of global growth. Commodity exports,
however, are expected to register robust growth, supported by higher prices and
firm demand, particularly from the region. Meanwhile, growth in gross imports is
projected to moderate significantly to grow by 5.7% following a slowdown in the
imports of intermediate goods, consistent with the more modest growth in
manufactured exports. Consequently, a larger trade surplus will be recorded in
2011. The services account will continue to register a small surplus, driven by
higher receipts from the travel account, while the income account deficit will
be slightly smaller, due mainly to higher earnings by Malaysian companies
investing abroad and lower repatriation of profits and dividends by foreign
companies in Malaysia.
For the financial account, gross inflows of foreign direct investment may
increase further amid the favourable economic outlook, better corporate earnings
and positive business confidence. Continued improvement in global FDI flows,
together with the Government's wide-ranging economic transformation projects,
will support higher inflows of FDIs into Malaysia. Direct investment abroad by
local firms is expected to remain large as they continue to seek new markets and
business opportunities abroad. While growth will be driven mainly by domestic
demand in 2011, external demand will remain important given that the total trade
in goods and services accounted for 176% of GDP in 2010. The growth projection
of 5% to 6% is based on the expectation of moderate growth in the advanced
economies and a return to more normal growth rates by the Asian economies.
(Source: The Star, 24 March 2011)
Members’ News
Right Royal Space
When a Chinese immigrant made his way to what was then known as Malaya, little
did he know that the small pewter business he started here would become a
national icon with an international presence. Yong Koon founded the business in
1885, mainly producing joss stick holders and incense burners before moving on
to tankards, ashtrays and tea services catering to the British colonials at the
time. Fast forward 126 years and Royal Selangor (formerly known as Selangor
Pewter) has built on its heritage and is now a world-renowned icon synonymous
with excellence in not only pewter merchandise but also precious jewellery and
hallmarked sterling silver under its two sister companies, Selberan and Comyns.
In commemoration of its 125th year anniversary, Royal Selangor launched its
largest flagship store in Pavilion Kuala Lumpur on Dec 16. Located strategically
beside the main entrance of the mall, the Royal Selangor store fits in
seamlessly with the international luxury brands of Prada, Chopard and Hermčs.
The distinctive sign at the front displaying the brand name dividing the two
floors owned by Royal Selangor is an eye-catcher for the heavy traffic along
Jalan Bukit Bintang.
The building – which takes up more than 600sq m in total – is based on the
concept of the traditional tin mining industry and other forms of Malaysian
culture. Yong Yoon Li, general manager of Royal Selangor International Sdn Bhd,
explains how the store’s distinctive design came about: “Our retail identity
started in 2005 when we realised that the retailing landscape is very different
nowadays. People who come into our stores not only look at things on the shelf
but they also notice other aspects such as displays and presentation. We came up
with the concept 12 months ago when we started to look at a new way of
merchandising and retailing in the store.”
It was an interesting challenge for the brand as it had the luxury of a double
volume space for the store in Pavilion. Their focus was to create a space that
would reflect the craftsmanship and heritage of not only Royal Selangor but
Malaysia as a whole. “If you look at how they mined tin back at the turn of the
last century, Malaya at that time was the largest tin producer in the world. It
held the title for over 50 years until the early 1970s when all the tin
depositories dried up. Pewter, which is heavily linked to our brand name, is
made up of 90% tin. So we decided that it was an interesting concept that we
could really build on,” explains Yong.
The outstanding feature of the store is the large mengkuang weave that scales
the side of the mall entrance as well as various sections of the store.
Intersecting at various heights, these vertical and horizontal blocks give a
balance of modernity and heritage to the store. The striking display depicts the
traditional art of weaving leaves of the fragrant screwpine plant into household
items such as bags and floor mats. “You can see the mengkuang weave from Jalan
Bukit Bintang. It’s not only a nice feature but it’s quite functional as well.
It has little windows which allow a passer-by to peek into the store and we also
use it to display merchandise in the slits,” explains Yong.
Inside the flagship store, a huge metallic structure behind the cash counter
scales the two floors and demands the attention of any customer walking in. The
criss-crossing structure of black and silver metal resembles the bamboo fixtures
and scaffolding commonly found in tin mines back in the heyday of Malaya’s tin
exploits. The flagship store's interior design is based on the concept of the
traditional tin mining industry and other forms of Malaysian culture. For the
almost 400sq m space on the lower floor, Yong wanted to have an expansive
display style that would allow customers to feel comfortable walking around the
space and browsing the extensive range of pewter merchandise. Also, he felt that
the neutral colours of grey and black around the store would embody the true
concept of Royal Selangor and its roots perfectly.
“We felt that some of our customers found our previous stores a little too
imposing and they did not feel welcome to look around in ease. We wanted to
change this with the Pavilion store and to do that, we made a number of distinct
changes, such as having no shelf displays. This would allow a more open feel for
the retail experience and it also disciplines our sales team to be more focused
on what they are trying to sell,” says Yong.
The items around the store are displayed on wooden rises of varying heights and
angles. These wooden blocks have a plywood finish with a special surface
treatment instead of plain shellac to emphasise the rawness of the wood. Some
items are raised on semi-transparent acrylic blocks which makes for a more
interactive experience as the customers feel they can touch the merchandise.
“These displays give us flexibility in displaying our merchandise. Instead of
seeing shelf after shelf, we can move things around and be creative with our
presentation. For instance, we can either display a whole range of pewter
tankards in a row or repeat the tankards at various sections of the store,” says
Yong. “We also emphasised a lot on lighting. We didn’t want to flood the whole
store with lights so instead we used multiple spot lights focused onto specific
sections around the store and our merchandise. One of our new features is the
bottom lit display that highlights the products and adds an extra sparkle. This
way, the customers are able to see the pewter in the best light possible, both
literally and figuratively,” he adds.
Even the cash counter sports the distinct mengkuang weave design with brushed
pewter strips along the side intersecting at varying angles to create a display
of Malaysian culture. The top of the counter is visibly shorter than in most
stores as Yong feels this will prove to be less distancing for the customers.
Along the inside of the store is an uneven black wall with protrusions similar
to the durian. The wall is coated with a special mixture adding the rough
texture which draws on the concept of untouched tin ore. The lights from the
ceiling reflect off certain sections of the faceted wall, adding to its raw
finish.
Built imposingly along the side of the store, a wooden staircase gives the
illusion of space as it connects up to the upper level, which houses Selberan
and Comyns. Walking up the stairs, one feature that immediately catches the eye
is the special diamond-shaped cantilevered sofa. Decked in Selberan’s renowned
plum shade, it is the centerpiece of the upper level and provides an attraction
to the people standing outside the store staring up at this magnificent fixture.
The upper level is as interesting as the ground floor. Note the rough-looking
wooden bases of the display counters - they hark back to the raw look of tin
mines.
The concept of building two stores into one may seem strange to some but Yong
saw it as an opportunity to further enhance the new style and direction Royal
Selangor has embraced. “If we look at our store at Kuala Lumpur City Centre (KLCC),
it has 5,000 square feet (about 450sq m) of space for us to work with. “We had
to fit the three brands into this, which restricted the creative use of space.
With the luxury of a double volume space, we were able to place our two sister
brands on the upper floor and gave them a more exclusive and private feel,” says
Yong. As an alternative to having two separate stores, the two brands of
Selberan and Comyns were instead divided only by separate designs and themes in
the same space. For Comyns, the sterling silver brand, the design has a quaint
English feel with its darker colours and walnut oak finish. The ceiling was
dropped to build a personalised connection with the customers as they browse
through the glittering silver merchandise. Selberan, with its range of sparkling
jewellery items, has plush wall-to-wall carpeting all covered in its signature
shade of plum. The features around this section of the store are light with a
smooth marble finish.
At the back of the store is a private meeting room to entertain visiting guests
and corporate clients. Finishing off the modern touches to the store is the
light fixture scaling the mengkuang weave at the side of store. These fibre
optic lights pulsate and sparkle randomly to give a sense of starry wonder. At
the corner of the wall is the lit-up logo of Royal Selangor fitted on raw
sandstone, illuminating the expansive facade as night falls.
(Source: The Star, 6 February 2011)
Royal Selangor Expands Overseas
Royal Selangor International Sdn Bhd plans to open an outlet each in Australia
and Hong Kong this year. Its general manager Yong Yoon Li told StarBiz that the
rationale was to tap young married couples who were keen to buy pewter products
for their homes. “This trend among newly-wed couple is particularly noticeable
in Hong Kong. Then there is the tourist market in Hong Kong that we can tap
into. For example, there has also been a sudden surge in the volume of visitors
from China to Hong Kong in the past 12 months. In Australia, we plan to set up a
retail outlet in Sydney to tap the local market,” he said. Yong was speaking at
the opening Royal Selangor's second visitor centre at Straits Quay by Penang
Chief Minister Lim Guan Eng recently.
Royal Selangor currently has 10 retail outlets abroad in Japan, Hong Kong,
China, Australia, the United Kingdom and Singapore. It also has sales offices in
Japan, Hong Kong, China, Australia, the United Kingdom, Singapore and Canada,
supplying to the wholesale market. On the local front, Yong said Royal
Selangor's manufacturing facility in Setapak would produce about 12% more pewter
products this year versus 500,000 pieces in 2010. “About 50% of the pewter
products will be exported for sale in the retail and wholesale markets,” he
said. Yong said Royal Selangor's visitor centre in Penang also housed the
company's northern region headquarters. “The economy in Penang has been very
vibrant over the past two years,” he said.
(Source: The Star, 18 March 2011)