April – June 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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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 |
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Tel: 03
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Dear Members
The improvement in the global economic front coupled with a resilient domestic demand has kept the Malaysian economy on a positive note so far this year. The domestic property and manufacturing sectors, especially electronics, are moving ahead and the services sector is playing an increasing role in terms of driving the economy forward.
The last few months have seen tin prices sustained at high levels. The Malaysian Chamber of Mines, which has continued to champion the cause of the local tin mining industry despite the metal market’s collapse and the cessation of operation of the London-based International Tin Council in 1985, is optimistic that these encouraging developments would give renewed hope to the industry. The Chamber’s Executive Director said that the Chamber has charted a five-year road map under the grand mineral resources master plan, which forms part of its vision 2008, to aggressively promote tin as well as other major metals and minerals in Malaysia. The tin mining sector could still be considered one of the major contributors to the Country’s economy.
People are becoming increasingly aware of environmental conservation, and there is a worldwide increase in demand for products that reduce environmental impact. Therefore solder manufacturers are now aggressively promoting their lead free solder products. And indirectly this will lead to higher consumption of tin and other metals. With the increased usage of tin and the escalating tin price I hope to see more tin mines being opened up in Malaysia and its former glory restored.
Once again I would like to bring to your attention that the Association welcomes your contributions and suggestions.
Thank you.
Jason Lee
President
ELECTRONIC SECTOR NEWS
Samsung has brought in three new products into the Malaysian market, namely its range of colour laser printers, liquid crystal display (LCD) monitor and plasma monitor. The products incorporate the best features and performance, while offering customers a value-for-money deal, Park said, adding that the winning combination will ensure Samsung's success in Malaysia. He expressed confidence that with the new products, Samsung Malaysia Electronics IT business division could easily rake in sales of about US$40 million this year, compared with US$30 million last year. Samsung's strategy in Malaysia is to provide customers with options. The company said it will also strive to maintain certain standards when reviewing technology needs, both in form and function.
"We will strive towards producing technological advancements that meet the needs of niche segments and also cater to the masses," Park said, adding that the company feels that its new products will help it establish itself as a leader in the digital convergence revolution. Samsung expects to increase its market share for monitors from 25 per cent last year to at least 30 per cent this year. The company also expects to have a minimum 40 per cent share of Malaysia's LCD monitor market and 20 per cent of the country's laser printer market by end-2004.
(Source: The Malay Mail, 8 April 2004)
Prices of DRAM chips, used mainly for computer memory, have soared in the first quarter on tight supply as chipmakers switched to making flash memory and hit problems introducing new production technology. The price of industry standard 256-megabit chips rose 43 per cent in the first three months of the year to US$5.29, according to chip broker DRAMexchange.com. Samsung said it expected the global personal computer market to grow 12 per cent this year. Flat screen prices were higher than expected in the first quarter because of severe shortage of key components, but analysts said the cycle may be peaking. Samsung sold a record 20.1 million cellphones in the first quarter, up from 15.5 million in the fourth quarter. It said sales would rise in the second quarter, at an unchanged average price. Samsung expects its global market share to rise to around 14 per cent in the first quarter, up from last year's 10.5 per cent.
(Source: Business Times, 17 April 2004)
Samsung Electronics Malaysia Sdn Bhd sees South-East Asia continuing to account for 10 per cent of the group's global sales, with Malaysia expected to increase its contribution. Managing director Won Jong Duk said Malaysia contributed around US$300 million last year, with the mobile phone segment accounting for 60 per cent. "We are hoping for the revenue to increase though," he told reporters after the Samsung Famemas Ambassador programme in Kuala Lumpur recently. Samsung mobile phone is placed at number two in Malaysia and remains among the top three in all countries the group has penetrated. "Considering that our mobile phones are high-end products, our return value is still high," Won said. Samsung will sponsor five Malaysian sports heroes and five Samsung Famemas members as torch bearers and supporters at the Athens 2004 Olympic games, for which it is the worldwide sponsor and official wireless communications equipment partner.
(Source: The Star, 2 June 2004)
South Korean electronics giant LG Electronics Inc expects 60 per cent sales growth in Malaysia this year from the RM500 million it achieved last year. About half of the sales will come from its home appliance range and the rest will be equally contributed by its recently launched mobile phones items and electronics goods. General manager LG Kim said LG Electronics wants to lead Malaysia's consumer appliances market by 2005 and aims to secure RM800 million in sales for its product range.
Kim told Business Times in an interview that the company will focus on key ranges and premium products as well as embark on an aggressive marketing efforts. LG Electronics has allocated RM50 million for advertising and marketing activities to enhance consumer awareness of its products and technology this year. "LG Electronics' strategy is focused on offering premier products with unique and exciting features, trendy yet aesthetically-pleasing designs, advanced technology and innovative functions," Kim said. LG Electronics, which is the LG group's flagship enterprise, expects sales to be driven by four premier products – side-by-side refrigerators, air-conditioners, Plasma Digital Panel (PDP) units and direct-drive system washing machines.
LG Electronics is the first in the world to introduce side-by-side refrigerators equipped with an innovative linear compressor that results in greater electricity conservation and minimal noise. Introduced in Malaysia last year, LG Electronics' side-by-side refrigerators have already captured 60 per cent of the country's refrigerator market share. In the air-conditioning industry, Kim said LG Electronics has enjoyed sustainable key position despite its late entry in the market. Coming in just four years ago, LG Electronics' unique air-conditioning product range and dedication to research and development and consumer satisfaction has enabled it to capture between 8 and 10 per cent market share, ranking third in the country. "In line with our continuous product development and marketing strategy, we aim to be the number one supplier across the full range of air-conditioners in Malaysia," said Kim.
Meanwhile, LG Electronics' premier air-conditioners called Art Cool Nano Plasma is expected to contribute some 40 per cent to the turnover of the company's air-conditioning division this year. Kim said it also expects mobile phone sales to grow 10 per cent and has planned to introduce a new range of premium-priced mobile phones by the end of June this year. "Last year, LG Electronics supplied more than six million mobile phones in the US, making it the number one brand in that market. In the next three years, we are confident of achieving a 30 per cent market penetration in order to rank among the top three in the mobile phone sector in Malaysia," said Kim. Nonetheless, Kim said the company's priority is customer satisfaction. "LG Electronics is not only dedicated to heeding the needs of today's market, but we also seek to balance sales with quality service," said Kim. It opened its first customer service centre for information technology products as Low Yat Plaza in Kuala Lumpur and hopes to set up centres in Penang and Johor Bahru in the near future. Optimistic on the prospect of the electrical and electronics market in Malaysia and signs of improving economy, Kim said Malaysia will be the top three contributors to the LG group in Asia, excluding Japan and China, this year.
(Source: Business Times, 7 June 2004)
South Korea's Samsung Electronics Co Ltd could move microwave oven production from China, where it is facing stiff competition from low-cost Chinese rivals, to Malaysia or Thailand, it said recently. Samsung, Asia's most valuable technology company, has a 5 per cent share of the Chinese electronic oven market and plans to halve its annual output in the local plant this year from 1.5 million units in 2003. "We are considering stopping production (of microwave ovens) in China, and moving it to Malaysia or Thailand," said Sonia Kim, a Samsung spokeswoman.
The plant, which is located in East China's Suzhou sells 30 per cent of its products in the domestic market, while more than 90 per cent of output in Samsung factories in Malaysia and Thailand are shipped overseas, the Chosun Ilbo said in its early Tuesday edition. The move came after the technology giant said in January it was closing plants in Spain and Britain, with the expected loss of more than 800 jobs, in a European restructuring aimed at keeping it competitve.
(Source: The Malay Mail, 30 June 2004)
SEMICONDUCTOR SECTOR NEWS
Continued broad-based recovery in the technology sector should help fuel double-digit revenue growth for local semiconductor-related companies in 2004, analysts and industry players say. "We are projecting a sales growth of 20-25 per cent for this year based on customers' robust demand and the improving business environment. Our customers have said that they plan to do more contract manufacturing outsourcing in the future," a spokesman at a local semiconductor manufacturer said.
The executive told Business Times that the recovery in the technology sector continues to be broad based, fuelled by robust global demand for electrical and electronics products. "All indications show that at least in the first half of this year things would be very good for semiconductor companies. However, the sustainability and intensity of the recovery are still difficult to predict in the medium to longer term," he added. According to the Semiconductor International Association (SIA), worldwide sales of semiconductors in February 2004 rose 30.8 per cent compared to February 2003. While the total sales of US$15.58 billion reflect a modest 0.2 per cent increase from January 2004, the SIA noted that February, historically, has been a relatively weak month for chip sales. In a statement, SIA president George Scalise said the strong year-on-year growth of more than 30 per cent reflects the steady improvement in business conditions, a trend which he expects will continue throughout 2004. "The modest sequential growth in worldwide semiconductor sales reported for February is consistent with the normal cyclical pattern," he said. While growth is largely driven by a rebound in corporate information technology spending, the current growth cycle extends to all end markets and major product areas, Scalise added. The SIA's Global Sales Report (GSR) is a three-month moving average of sales activities. The GSR is tabulated by the World Semiconductor Trade Statistics organisation, which represents about 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' monthly financial calendars.
(Source: Business Times, 14 April 2004)
Semiconductor companies may not sustain their financial performances in the second quarter this year, amid easing global demand for high-technology products, said analysts. "The cycle for the technology sector has started to taper off… and the semiconductor sector is dependent on the future growth in global demand for technology products. Signs of the US economy cooling down and concerns of a hard landing for China's overheating economy could worry technology companies going forward," TA Unit Trust Management Bhd's general manager (investment) Mohd Hasnul Ismar Mohd Ismail said.
He said the robust growth in earnings for semiconductor companies in the first quarter of this year was mainly due to seasonal demand that is unlikely to be sustained. "Semiconductor alone is not the cheapest sector, and has always been trading at a premium over the overall market. In the event of a rebound in the stock market, investors would be more keen to buy banking and property related stocks rather than semiconductor stocks," Hasnul added. Analysts contacted said prospects for the semiconductor industry look mixed on concerns that the uncertain geopolitical situation in West Asia, resulting in higher fuel prices would stifle the global economy. The US, a major market for technology products, is experiencing a cooling in its economy where interest rates are trending upwards, they added. On the bright side, however, the semiconductor business is expected to improve in the second half of the year due to demand for technology products during the Christmas season.
During the recent financial reporting season for the January-March period, Malaysian Pacific Industries Bhd (MPI) posted a strong jump in net profits to RM38.23 million from RM611,000 previously. Malaysia's largest chipmaker also reported higher revenue of RM314.65 million from RM213.22 million before. MPI attributed the improvement to higher sales volume, improved factory utilisation rates and the success of the group's new product range. The group also experienced recovery in demand for its more mature products. Competitor, Unisem (M) Bhd posted its third straight quarter profits in the three months ended March 31 2004 as rising demand for semiconductor boosted sales. For the period, Unisem saw net profit of RM5.64 million compared to a net loss of RM7.22 million a year earlier.
Other semiconductor companies like Globetronics Technology Bhd, AKN Technology Bhd, and AIC Corp Bhd also posted better earnings in the first quarter of this year. According to Reuters Estimates, a poll of 16 brokers has forecast MPI's net profit jumping to RM126.95 million for the year ended June 30 2004 from RM11.31 million recorded in 2003. Unisem, meanwhile, is seen returning to the black with a net profit of RM46.10 million for the year ending December 31 2004 from a net loss of RM3.31 million posted in 2003.
(Source: Business Times, 5 June 2004)
Global semiconductor sales are poised to rise 24 per cent this year, more than forecast, driven by higher-than-expected demand for mobile phones and other products, market researcher iSuppli said. Sales will rise to US$226.5 billion this year, compared with US$182 billion in 2003, El Segundo, California-based iSuppli said. This year will be the first all major applications for chips will experience growth for the first time since 1999, iSuppli said. In April, the researcher forecast 20 per cent growth. Sales will rise 12 per cent in 2005 and stall in 2006 with 0.1 per cent growth, it said. Intel Corp, the world's largest chipmaker, said this month that it will meet the higher end of its sales forecast range for the second quarter. South Korea's Samsung Electronics Co, the second-largest, has said since March that it expects a global shortage of computer memory in the second half of this year.
Orders for Japanese semiconductor equipment jumped 89.8 per cent in May from a year earlier, an industry group said recently in Tokyo, reflecting robust demand for chips. Worldwide orders for Japanese equipment totalled 154.28 billion yen (100 yen=RM3.50) in May, according to preliminary data released by the Semiconductor Equipment Association of Japan. May's order total, calculated using a three-month moving average, was 10.6 per cent higher than the previous month's confirmed total of 139.53 billion yen.
(Source: Business Times, 19 June 2004)
(Source: The Star, 2 June 2004)
INDUSTRY NEWS
The local mining industry's image needs to be re-positioned to reflect its importance and significant contribution to the country's economy as how it was previously. Malaysian Chamber of Mines president Dato' Dr. Mohd. Ajib Anuar said the public's perception of the industry needs to be changed from the existing view that equates the mining to the allegedly obsolete tin mining sector. "The industry needs to be re-branded and re-positioned. This is in favour of a holistic approach to the natural minerals industry to consolidate all mining activities under one unified Malaysian minerals industry," he said.
Mohd. Ajib was speaking to reporters at the Chamber's annual general meeting in Kuala Lumpur recently. He said the Chamber has come up with a five-year plan to address several key issues affecting the industry, adding that a master plan is currently being drafted and is due to be completed by year-end before it is submitted to the Natural Resources and Environment Ministry. The road map includes areas such as mineral database and policy, environment rehabilitation, tax incentives and land matters.
Last year, minerals and metals generate an annual revenue of about RM2 billion, while value added mineral-based products contributed about RM20 billion, or 5 per cent, to the country's gross domestic product. Malaysia produces about 30 different minerals, which include tin, iron ore, gold, limestone, kaolin and coal. On land use, Mohd. Ajib said mining activities should be given priority instead of diverting to other developments, which lock in the mineral wealth reserves. On owners and operators of mining lands, he said the ownership of land should be retained by them so that the miners can further develop the land when mining ceases.
(Source: Business Times, 26 May 2004)
MEMBER NEWS
Not many businesses can claim to have lasted four generations in this country. Those that do must surely have a story to tell. Firstly, they would have started over a century ago when Kuala Lumpur, as its name suggests, was pretty much a swamp. They would also have survived the Japanese and British Occupations and seen the city through various stages of development. One such legacy began with a young lad named Yong Koon. A fledgling pewter smith, he left Shantou (in Guangdong province, South-East China) after his apprenticeship at the age of 14. At that time many Chinese were seeking their fortunes abroad. The Gold Rush drew some to California, but it was the tin in Malaysia that brought the pewter smith hither.
In Yap Ah Loy's KL, he carved a niche making pails and ceremonial items for tin-miners and later for British colonial officers and their wives. What began as a hand-to-mouth livelihood would eventually grow into a cottage industry and, in the span of a century, a multinational company – with offices in eight countries. It became what we know as Royal Selangor. At one end of the company's history, we see this pewter manufacturer in all its glory at its headquarters (in Setapak Jaya, KL) with its newly unveiled interactive visitors centre. The other end though, four generations away is shrouded in time. In her book Born and Bred in Pewter Dust: The Royal Selangor Story, Chen May Yee – great-granddaughter of that illustrious pewter smith – retrieves the history of this company and takes us back to the days when the backdrop for her great grandfather's little pewter shop was "little more than a ramshackle collection of mines, wooden huts, opium shops, gambling dens and brothels".
She climbs down the family tree and charts the evolution of the company. But more than that, she gives us the social and historical setting in which the little enterprise began – 19th century KL. Here, in a little wooden Chinese hut on Cross Street, known today as Jalan Silang, the great-grandfather of the company set up shop and lived. "It's a little broader than just the story of one company and family," she says about her book. "I've tried to place it against the larger backdrop of the Chinese immigrants who came from China during the 19th century and the development of KL. And there aren't many corporate histories of this kind (that gives a broader historical account) as most existing ones tend to be PR-ish, which no one but the family and the company would want to read," says Chen, who now lives in Phoenix Arizona, with her husband. Being part of the family, Chen is proud of this heritage but grateful too of being able to pursue her own career as a journalist outside the family-owned company. She worked at The Star for a while before moving on to join the news wire service, AFP, and then the Asian Wall Street Journal for a while. For the 33-year-old author, this project was a long-postponed personal journey that she'd always intended to make. A journey that went beyond the "objective journalism" that she is used to. "There were two reasons why I'd wanted to do this. First of all, I wanted to preserve this bit of history before all the older people who could remember the company's history were no longer around. There were always memories that no one had tapped into and talked about, such as the memories of people in the current factory who had joined the company a long time back when they were 14 or 15 years old. These were the people who had worked with my grandfather in his old shop house, at Jalan Pudu (KL). And they remember those times when it was very small and life was very hard. Interviewing relatives, veterans and current employees of the company affected me in a way that was very different from my usual 'objective' journalism. I found myself emotionally involved. I could not have been less involved even if I'd wanted to since many of the interviewees would say things like 'Your grandfather told me…' and 'Your grandmother was…'. It made me appreciate much more what I had always taken for granted," says Chen.
The book is commendable in that, while making this personal journey (researching and interviewing), Chen seems never to let any detail that might add to the pleasure of that journey escape her grasp. She sees, for instance, how an account of the Hakka people (Yong Koon was a Hakka) contributes towards understanding the nature of trade and business in early KL. And she makes sure that the reader is acquainted, beyond the context of the company, with the history of pewter (the reader is also shown how pewter is made the old Chinese way). On top of that, the book is full of interesting old pictures that do well in taking the reader back in time. Chen admits, though, that it was not easy retrieving some of the details that have given this saga the feel of the different periods. According to her, there were hardly any written accounts or diaries left behind by her great-grandparents. Thus, oral histories had to be tapped to construct this entertaining narrative. "As the company was once a very paternalistic organisation, one where the employees were treated like extended family members, most of the employees remember the domestic scenes – of working and living in the shop – vividly. Piecing together the whole skeleton of the evolution of the company was one thing, but I wanted the flesh as well. I wanted this corporate history to be alive with the people and events that shaped it. And so I had to search for these pieces of domestic details, for example, of what they did during the war years. During those years, my grandparents had to do all sorts of odd jobs as nobody was buying pewter then. Moreover, the Japanese were controlling the trade and tin supply that the company needed. This limited the Yong brothers to making 'sake sets' as gifts for Japanese military officials. I would have liked to have more colour from that era, to know how they survived, what they ate, what happened to the factory and the workers. My grandfather, for instance, resorted to being a taxi driver to make ends meet," explains Chen.
The war was not the only setback. As the author tells us, the company was also beset by internal feuds. We learn from the book that Yong Koon's eldest son (Yong Peng Pow) moved away, after a disagreement, and continued manufacturing pewter under the family business name of Malaysian Pewter. The shuffling of allegiance between the brothers resulted in the formation of three other pewter companies – Tiger Pewter, Selangor Pewter and Lion Pewter. "Only one, Selangor Pewter, later renamed Royal Selangor, survives. And it was during the time of my grandfather (Yong Peng Kai), that the production process was modernised. During my parent's era, though, the company went a step further and the brand was marketed and taken overseas." The story then shows how the third generation members of the family worked at taking the business abroad. It was a time of rapid expansion, and also one when managerial positions within the company were opened to outsiders. "From the 1940s onwards, they (company representatives) would send brochures to department stores in other countries. From being mainly a retailer, they started expanding their range of designs and began working with corporations in coming out with special designs. In the book, I've mentioned some of these designs and how they came about. Later on, in the 70s and 80s they started going to trade fairs all around the world to meet buyers. These trade shows were where manufacturer introduced their new designs. Most of the foreigners at that time didn't know that Malaysia had all these crafts as all they'd heard about this part of the world was Vietnam and the war there. To market our products, we would send representatives to sit in their baju kebayas at department stores overseas to attract people to our pewter items," explains Chen.
The last stage of the author's journey, freed from the historical burden, shows the recent achievements of this grand company and the involvement of the fourth generation family members. And the narrative cleverly unfolds, even as the black and white photographs give way to coloured ones. In the book's 150-odd pages, we see how a business and family tree took root on new soil, how it struggled to survive and how, after a century, those "born and bred in pewter dust" are reaping its fruits.
(Source: The Sunday Star, 4 January 2004)
Measure out a pat of patriarch, a sizeable spoonful of skill and another of slog. Mix with two world wars, sibling rivalry and the considerable challenges of modernisation. The result? A riveting account of adversity turned to advantage, culminating in the creation of the world's largest pewtersmith. "Over a century ago, Yong Koon Seong left his village in China with little more than his craftsman's tools and sailed to Malaya, beginning what would become the largest pewter company in the world." Thus does Chen May Yee begin The Royal Selangor Story. And she doesn't let up, holding the reader's attention to the last page.
Taking ship to Nanyang, as the Chinese called Southeast Asia, Yong Koon (as he was known) disembarked in Kuala Lumpur. In 1885, this was "a humble name for a humble place". The British had recently taken over its administration, previously controlled by Yap Ah Loy – "a baby-faced but shrewd Hakka tin miner". By 1898, Malaya was the world's largest producer of tin. Tinsmith Yong Koon's own productions took the form of gutters of galvanised steel. He then turned to pewter incense burners and josstick holders. The Depression of the 1930s saw the Malayan Chinese demand for these ceremonial items drop, so Yong Koon (who had also produced four sons) turned to the Western expatriate community. As the clientele changed, so did the product; Malayan Pewter Works, as their company was called, made cigarette boxes, ashtrays and teapots. The brothers "squabbled about how best to run the business" and, in 1940, the eldest faced a mutiny: his three siblings started the rival Tiger Pewter. This was shortlived. Their second attempt, Selangor Pewter, has been vastly more successful. By 1950, however, Yong Peng Kai was the only brother remaining in the trade.
Telling her tale with masterful simplicity, May Yee describes her characters with the throwaway authority of one who knows them intimately: Peng Kai had taught (his wife Guay) Soh Eng to drive, placing a cup of water which she wasn't allowed to spill on the dashboard, presumably to discourage the twin sins of jerkiness and high speed. In those days, a woman behind the wheel was revolutionary. When Soh Eng drove a green Austin van around town delivering pewter, she attracted stares and shouts from children, who would point at the vivacious, samfu-clad driver. Peng Kai, Soh Eng and their four children lived above the Pudu Road pewter factory, the rumble of polishing machines below coming through the floorboards. There were few frills. Each child bathed standing in the kitchen, scooping cold water out of a tin pail, and slept on a rattan mat on the bedroom floor. According to employee No. 29 Hoo Wee Meng, writes May Yee, Peng Kai "treated us like family". Family, indeed, strikes a strong chord in this charming story. In due course, the next generation took over Selangor Pewter and remains involved in Royal Selangor today.
Author May Yee is Soh Eng's granddaughter and this book's design consultant is Song Eng's niece Boon Lay Quistgaard. The company itself has branched out into silver and jewellery. This is a tale of adaptation and acquisition; of invention and reinvention. The Royal Selangor Story with its evocative pictures is, as the subtitle says, a tale of being "born and bred in pewter dust".
(Source: New Straits Times, 19 February 2004)
Royal Selangor, Malaysia's oldest pewter maker, is set to come up with more new products to capture its new target market – the younger urbanities. Royal Selangor Marketing Sdn Bhd general manager Francis Lee said the 118-year-old company is launching the new Winnie-the-Pooh collection in the UK this month and hopes to bring the line into the country shortly after.
Following its success of the Lord of the Rings collection, Royal Selangor is working on other products for the more contemporary tastes and young urbanites' segment. "Further to our key strength in the corporate gift market, it is natural for us to also develop a younger target market," Lee told Business Times. He believes the new segment can grow substantially in the new future and is looking at a contribution of 30 per cent or more from this segment. From merely producing incense burners and candleholders during the 19th century, the company has now over 1000 different collectibles and gift designs, ranging from desk accessories to wall decorations and drink-wares.
Royal Selangor's long and illustrious history begun in 1885 when a young Chinese immigrant named Yong Koon came to Malaya to join his brothers and founded a company that now became Royal Selangor. From a humble shop in Kuala Lumpur, which was then called Selangor Pewter, the company flourished into one of Malaysia's proudest success stories, renowned internationally as a premium giftware maker. The name Selangor Pewter was changed to Royal Selangor in 1992 after the company received the royal endorsement from the eighth Sultan of Selangor, Sultan Salahuddin Abdul Aziz Shah. "The Royal Selangor pedigree goes back three generations and the fourth one is in place to move the business even further ahead. It has been a business close to their hearts and from a commercial viewpoint we have not done too badly," Lee said. The company started to export to Singapore and Hong Kong in the 1970s and toward the 80s, it entered European and Japanese markets.
Now, three generations of Yong later, Royal Selangor has one of the largest pewter factories in the world and exports half of its products to more than 20 countries. Although there are over 3000 stores worldwide selling Royal Selangor products, its biggest market remains in Malaysia. "We are a major player in Europe, Australia and we are also strong in Hong Kong. In places where we don't have an office, we have a partner distributor who will run the marketing and sales of our products within that region or country," he said. On the medium-and long-term prospects, Lee said the company foresees its business to grow by 10 per cent each year.
Since 1970s, the company had been diversifying its business into the design and manufacturing of precious jewellery and the 925 hallmarked sterling silver under the names of Selberan and Comyns. It acquired Comyns, one of the oldest manufacturing silversmiths in the world in 1993 together with its archive of over 35,000 drawings, patterns, and moulds.
(Source: Business Times, 24 February 2004)
Metal Reclamation Bhd plans to buy 47.5 per cent stake in Nutek Pvt Ltd for a total of RM25 million. The company said it will use internal funds for the acquisition. Singapore-based Nutek is involved in the design and fabrication of industrial machinery and equipment.
(Source: The Malay Mail, 29 April 2004)
Petroliam Nasional Bhd (Petronas), Royal Selangor, Brahims, Nanyang Siang Pau and Berita Publishing are among Malaysian recipients of the 2003/2004 Superbrand International Award. Among the other 116 Superbrands award winners were to McDonald's, AIA, MasterCard, Aviva Insurance, Electrolux and Energizer.
The Overall Achievement Award for an International Brand was won by fast-food chain McDonald's, while Petronas collected the award in the local homegrown category. The award ceremony to pay tribute to Malaysia's strongest brands, held last night in Kuala Lumpur, also witnessed 10 winners in their respective categories, who each received a special Royal Selangor-crafted-and-designed trophy of excellence. Each brand underwent a qualitative assessment and grading exercise carried out by the Superbrand Malaysian Council. The council members included AmBank Bhd group chairman Tan Sri Azman Hashim, Maxis Communications Bhd chief executive officer Datuk Jamaludin Ibrahim, Ogilvy & Mather regional managing director Steve Fraser, and Edaran Otomobil Nasional Bhd managing director Datuk Adzmi bin Abdul Wahab. The brands were graded on strict selection criteria of market dominance, customer loyalty, goodwill, longevity and overall market acceptance.
In a statement, Superbrands Asia chief executive officer Victor Jeffery said local brands now have a great opportunity to let every foreign investor, customer and country be informed of the credibility, prowess and potential of their brand. "Icons like Royal Selangor and Petronas are real examples of how a Malaysian brand can achieve international acclaim and we aim to assist every single local brand secure such recognition," he added. The Superbrands Malaysia 2003/2004 Book contains a profile and feature article of each of the Superbrand Award winners. "We publicise the simple and in-depth insight about each deserving brand in Malaysia," Jeffery said, adding that the extensive nationwide and worldwide distribution network augurs well for all the brands featured. All Superbrands selected by the each country-centric council are brands that had undergone a thorough detailed consumer research exercise, conducted in every country in Asia by its research partner Synovate.
(Source: Business Times, 6 May 2004)
Perusahan Sadur Timah Bhd (Perstima) said its net profit for the fourth quarter to March 2004 rose 26 per cent year-on-year to RM4.98 million from RM3.96 million. This was due to better sales and despite higher production costs, the company said in a statement to Bursa Malaysia Securities Bhd recently. Sales grew 65 per cent year-on-year to RM125.90 million from RM76.48 million.
Overall, Perstima's net profit for the fiscal year to March rose 12 per cent to RM17.29 million from RM15.39 million in the year earlier. This was achieved on sales growth of 38 per cent to RM377.24 million from RM274.45 million previously. The company said it expects satisfactory results for the financial year to March 2005, while the operating environment is seen as challenging and competitive.
(Source: Business Times, 11 May 2004)
After nearly six decades, Royal Selangor, a landmark in Kuala Lumpur is moving out of Jalan Tuanku Abdul Rahman where it has been trading since 1945. Hence, it will be selling off its stock of vintage Chinese furniture this weekend. Royal Selangor director Datin Paduka M.K. Chen, 62, said the family-owned company, establish in 1885 as Selangor Pewter would be vacating the premises by May 31.
"We will be selling the 100-odd pieces of Chinese blackwood and rosewood furniture that we bought from the original Peiping Lace antique shop when we moved here. We will sell them at a discount," said Chen. She and her siblings, including Royal Selangor managing director Datuk Yong Poh Kon, grew up in Jalan Tuanku Abdul Rahman where her mother operated the original half-shop lot, which she shared with China Arts at No 219. "We had it for a long time, since 1945. My brothers and sister would help out in the shop after school. My mother Guay Soh Eng ran the shops as a one-woman operation while my father Yong Peng Kai laboured in the workshop. She was the driver, sales girl and packer. She was one of the first women drivers in Kuala Lumpur and would send parcels to the post office in her Austin van, dressed in her samfoo. We children would do our homework at the back of the shop and she would cane us when we made mistakes, especially in Mathematics, " she said.
Then in 1968, Chen said, the family moved to a bigger shop lot a few doors away at No. 231, where the present Kee Huat showroom is. "We had to move again in 1998 when the building caught fire. We moved to No. 223 where we are now located. It was formerly the Peiping Lace antique shop that sold furniture, lace and curios. The lady proprietor agreed to let us take over her shop lot on the condition that we bought over her stock of Chinese furniture. Since then we have kept the furniture as part of the display for our pewterware. We have decided to move out of Jalan Tuanku Abdul Rahman as our customers prefer to shop at our retail outlets in Suria KLCC and Lot 10," she said.
Jalan Tuanku Abdul Rahman, which is also known as "Jalan TAR", was formerly know as Batu Road and was the first shopping street in Kuala Lumpur where textile centres, jewellery stores and even curio shops were set up after World War II (1939-45). "I feel sentimental about Jalan Tuanku Abdul Rahman, but then again, we have also been operating in Setapak for the past 30 years. We have just opened our 40,000sq ft Royal Selangor Visitors Centre in Setapak Jaya and we have to move on," she said.
(Source: The Star, 13 May 2004)
The Malaysia Smelting Corp Bhd (MSC) group announced a 132 per cent increase in net profit to RM10.9 million for its first quarter ended March 31, 2004. This translates into earnings per share of 14 sen for the quarter compared with 6 sen for the previous corresponding quarter. MSC chief executive Datuk Mohd Ajib Anuar said the improved results came on the back of lower sales of tin concentrates. MSC operates one of the world's largest tin mines that is located in Indonesia, as well as a smelting plant in Malaysia.
He told StarBiz that the output in Indonesia in the first quarter was limited by the size of the smelter owned by its subsidiary there, PT Koba. The Indonesian government does not allow the export of tin ore. For this reason, PT Koba can only export the tin after it has been smelted into tin concentrates. That limitation had been addressed, he said, as PT Koba recently increased its smelter capacity to 2,000 tonnes a month from 1,500 tonnes before. That enlarged capacity was operational from March. Hence, PT Koba will be able to increase its exports in the second quarter. Ajib declined to provide the average price obtained for the tin in the first quarter. An analyst said the tin price averaged about US$7,500 a tonne in the first quarter this year on the Kuala Lumpur Tin Market, a rise of over 40 per cent from the average of US$5,200 in the first quarter last year. "The excitement will be in the second quarter when sales volume and tin prices are both higher," he said. "Currently, the tin price is around US$9,300, an increase of 24 per cent from the first quarter. I believe tin prices will be maintained at above US$9,000," Ajib said. This confidence lies in the very low level of global stocks of tin.
Recently, Ajib said in Penang after the company's AGM that the group was investing RM8 million in the exploration of tin deposits in Indonesia this year. "PT MSC, a wholly-owned subsidiary, has been established to spearhead the exploration," he added. Ajib said the group was also considering venturing to Myanmar, Vietnam, China, and Latin America to search for tin deposits. "The global consumption of tin is expected to increase because Europe-based manufacturers of electrical and electronic products are expected to use high tin content solders which are lead-free. They have until 2006 to replace the current tin-lead solders used for manufacturing electrical and electronic products," he said.
Ajib said China's attempt to prevent its economy from being overheated would not slow down the consumption of tin for the electrical and electronic sector. "The Chinese Government's effort to control its economy will affect only the infrastructure and construction sectors and not the electrical and electronics sector, which is expanding," he said. Ajib said the Perak government should also consider renewing licences for tin miners and take advantage of the current surge in world tin prices. "We are one of the miners waiting for our permit to be renewed by the Perak government," he added.
(Source: The Star, 25 May 2004)