October – December 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 PN. FARIDA FARID |
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Tel: 03
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The opinion and statements expressed in the Newsletter are not necessarily
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Dear Members
In Bank Negara’s press release dated 28th February, 2005 on Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2004 it was reported that the Malaysian economy registered a growth of 5.6%. Growth was led by private sector activity while the Federal Government continued with its fiscal consolidation program. The global economic expansion is expected to be sustained at a steady pace in 2005.
In ITRI’s Tin Technology Newsletter dated 20th October, 2004, it was reported that world tin consumption is likely to rise by over 7% for the second year running in 2004. However the stimulus to world production provided by sharply higher prices has reduced the estimated supply shortfall this year to some 8,000 tonnes. In 2005, world tin usage is forecast to increase by 4 – 4.5% and a further supply deficit of around 6,000 tonnes is expected to reduce reported stocks of tin to their lowest level in 25 years.
Back home in Malaysia, Bernama reported on 21st February, 2005 that Perak and Pahang have sought permission from the Federal Government to revive the tin and iron mining activities in their respective states. Perak had vast untapped tin mining areas and many mining companies had approached the State Government following the increase in the price which is above US$9,000 per tonne in the world market.
We hope the relevant authorities will support and revive the mining activities as soon as possible.
Lastly, I would like to wish all members a Very Happy and Prosperous New Year.
Thank you.
Jason Lee
President
ELECTRONIC SECTOR NEWS
Philips Electronics, Europe's largest consumer electronics firm, said recently demand for high-end gadgets such as flat-screen televisions was robust in Asia but softening in Europe and the US. "The softening of demand for high-end CEs (consumer electronics) has not been seen in Asia – not yet," Philips Asia Pacific chief executive Andreas Wente said in an interview. "That is more related to Europe and North America." Wente said new applications such as plasma and liquid-crystal-display televisions, DVD players and recorders had done particularly well in China, India and South-East Asia.
"You can say that the largest addressable market for our products is based in Asia – with 6, 7 and 8 per cent gross domestic growth in Asia excluding Japan, these markets are growing further because their economies are still expanding," he added. But even the Asia-Pacific was not immune to pricing pressure, Wente said. This was underlined recently at South Korea's LG. Philips LCD Co Ltd, the world's number two maker of liquid crystal displays (LCDs), which recently said LCD prices had dropped about 20 per cent in the third quarter and would fall by about another third by the end of the first half of 2005.
(Source: The Malay Mail, 19 October 2004)
Samsung Malaysia Electronics Sdn Bhd (SME) will adopt a new distribution scheme for selected products next year to respond more rapidly to demand in the local market. SME, a unit of South Korea's Samsung Electronics Co Ltd, manufactures consumer and electronic products such as audio visual equipment, printers and facsimile machines, and handphones.
"Come January 1 2005, our consumer and electronic products will be distributed directly to our corporate customers, bypassing the existing route which involves a distributor. The existing system however remains for our independent smaller customers," SME manager for consumer electronics marketing Stephen Wong said. The new system is said to enhance efficiency by cutting red tape besides providing better market support to Samsung's operations here. With the introduction of the new scheme, the company is expected to take its promotional activities a step higher, Wong said.
It was reported in October that SME is targeting 40 per cent growth in sales to US$400 millions next year. It also said that it aims to put its handphones at the top spot in terms of value in the local mobile phone market in 2005. Cellular phones, which account for about 60 per cent of Samsung product sales here, are the company's best-selling items in the country. In terms of sales, SME's market share for handphones here as at last October was 27 per cent but in terms of value, it was 36 per cent.
Wong was speaking to reporters at a media briefing in Kuala Lumpur recently on the improvements made to Samsung Digital Media Plaza using a liquid protective glass coating by KristalBond Technologies Sdn Bhd. The outlet is one of the three brand plazas in Kuala Lumpur launched by the company in April. The other two, Samsung Mobile Plaza and Samsung IT Plaza, are in Berjaya Times Square and Low Yat Plaza respectively. "We have gone further to protect the dome-like plaza from harmful sunlight while maintaining its aesthetic values," Wong said.
(Source: Business Times, 25 December 2004)
Samsung Malaysia Electronics (SME) Sdn Bhd aims to enhance its market position by selling its consumer electronics products directly to corporate retailers such as Giant and Carrefour, thus bypassing dealers, starting from Jan 1, says its consumer electronics marketing manager Stephen Wong. "We are going to use the extra income from the new approach for aggressive promotions in 2005," he said after announcing its smart-partnership with KristalBond Sdn Bhd, the Naza group and Nasim Peugeot Sdn Bhd at the Samsung Family Carnival in Kuala Lumpur recently.
SME markets three product lines – consumer electronics, mobile phones and information technology products. Wong said Samsung would hold aggressive campaigns and launch new products next year to better position itself in the consumer electronics market. "The consumer electronics market is the main target of our campaigns next year as competition in the market is fierce," he said. He also said the company planned to launch a mobile phone model each month in 2005. "Our value position in the mobile phone industry is second only to Nokia. However, we expect to overtake them in the next few months," he said.
(Source: The Edge Financial Daily, 27 December 2004)
South Korea's Samsung Electronics Co, the world's largest memory chipmaker, said recently it will invest US$24 billion (RM91.2 billion) in new chip production lines over the next six years. The plan was unveiled by Samsung Group chairman Lee Kun-Hee at a meeting with Samsung Electronics executives to mark the firm's 30th anniversary in the semiconductor business. "Pre-emptive investment is critical to success in the chip industry," Lee said in a statement announcing the US$24 billion investment in semiconductor chip production lines.
Lee said the semiconductor industry should continue to serve as a key "growth engine" for the South Korean economy, noting that adventurous investment has made microchips the nation's leading export item. Chips accounted for 10 per cent of South Korea's entire export in the nine months to September, worth nearly US$20 billion (RM76 billion). Samsung Electronics was the world's second-largest maker of semiconductors – both memory and non-memory chips – in 2003, up from fourth in 1999, according to industry watcher Dataquest. It has been the world's leading DRAM (dynamic random access memory) chipmaker for almost a decade. The firm expects record sales for 2004, about 60 per cent higher than in 2003 when revenue totalled 43.58 trillion won. It has a sales target of 200 trillion won by 2010.
The company said it expects its latest investment to create 10,000 new jobs. "Sales are expected to be a record-high this year after jumping some 60 per cent from 2003," said Hwang Chang-Gyu, chief executive officer of Samsung Electronics' semiconductor business. Samsung Electronics entered the chipmaking business in 1974 when it bought a bankrupt local semiconductor firm.
(Source: The Malay Mail, 7 December 2004)
D&O Ventures Bhd expects to double its production of semiconductor components to more than two billion pieces in 2006 from one billion currently in view of rising global demand for light emitting diodes (LEDs) lamps. Managing director Tay Kheng Chiong said the company hoped to raise production by 45 per cent next year. "We are expanding the capacity for LEDs as there is huge potential for their application," he said during the launch of D&O Ventures' prospectus in Kuala Lumpur recently. The group, en route to a listing on Bursa Malaysia second board on Dec 28, is a contract manufacturer of semiconductor devices, specialising in resin encapsulated LEDs, hermetically sealed metal cans, and thermoset epoxy encapsulated discrete packages.
Tay said LEDs were expected to contribute 80 per cent of the company's targeted revenue of RM100mil for the financial year ending Dec 31. For the seven months ended July 31, the group registered net profit of RM9.5mil on the back of RM56.9mil revenue, while earnings per share was 2 sen. For the financial year ended Dec 31, 2003, the group recorded net profit of RM9.2mil on revenue of RM69.2mil and earnings per share of 2.3 sen. Chairman Datuk Mohd Azlan Hashim said the company registered significant growth in revenue as it manufactured products of the current time and the future, particularly LEDs, which had growing applications. "The growth is reflective of the trend of everyone looking for alternative energy saving resources. Over time, there will be more and more demand for LEDs as it is more energy efficient and more durable. Clearly, LEDs is increasing in their application, whether in traffic lights, advertising, interior lightings, motor vehicle panel lightings or in emotional lightings in airports, lounges and clubs," said Azlan, who is former executive chairman of the Kuala Lumpur Stock Exchange as it was then known. The group, which operates from Malacca's Free Trade Zone at Batu Berendam, exports 100 per cent of its products, including indirectly via its multinational clients, to Europe and the United States.
D&O Ventures, which is offering 102.59 million new shares at an issue price of 38 sen per share, expects to raise RM39mil from the flotation exercise. Of the amount, at least RM21.8mil will be used for acquisition of additional production equipment and tooling, RM7.8mil for factory expansion and RM3mil for research and development. A total of 36.5 million shares are for public allocation, of which 30 per cent is reserved for bumiputra investors; 5 million shares for eligible directors and employees, and 61.1 million for placement to other investors. After the public issue, Azlan's direct and indirect interests in the company will be reduced to 30 per cent while the interest of Lim Yam Chiew, who is not a director, will be 14.5 per cent.
(Source: The Star, 8 December 2004)
Minister of International Trade and Industry Datuk Seri Rafidah Aziz said the Malaysian semiconductor industry will have to face the challenges of having adequate supply of experienced designers, and knowledge workers, such as in the area of analogue electronics engineering and analogue integrated circuit design. "It is important to address the issue of design capabilities, in order to make available to the multinational corporations, design houses and designers, that can meet their requirements under sub-contract arrangements," she said in her speech at the official launch of the International Conference on Semiconductor Electronics (ICSE2004) in Kuala Lumpur recently.
ICSE 2004 is the sixth conference organised by the Electron Devices Chapter of the Institute of Electrical and Electronics Engineers, Malaysia section with the cooperation of the Institute of Microengineering and Nanoelectronics, Universiti Kebangsaan Malaysia. It is technically co-sponsored by Electron Devices Society, USA and Silterra Malaysia Sdn Bhd, MBE Tech Sdn Bhd and Telekom R&D Sdn Bhd. On the conference, Rafidah hoped that it will add value to the development of the semiconductor industry, and in particular enable local scientists and researchers to be exposed to the latest developments and advancements in the technology and processes related to the semiconductor industry.
The minister said that statistics released by the World Semiconductor Trade Statistics had forecast the world market for semiconductor in 2006 to reach US$221.8 billion from US$212.8 billion in 2004. "The Government supports the development of the semiconductor industry and provides special incentives for project involving new technology such as nanotechnology," she said. Between January 1999 and September 2004, a total of 1,172 projects were approved in the electrical and electronics industry with total capital investment of RM42.6 billion and of which 81.6 per cent were foreign investments.
(Source: Business Times, 8 December 2004)
Infineon Technologies AG, Europe's second largest maker of semiconductors, plans to invest about US$1bil in a new factory in Kedah's Kulim High Tech Park as chief executive officer Wolfgang Ziebart expands the company's motor vehicle chip business. The plant will begin production in 2006 and employ 1,700 people at full capacity, Munich-based Infineon said in an e-mailed statement recently. The factory will add to similar plants Infineon runs in Germany and France, the company said.
The factory is "an important step in continuing our successful business with chips for motor vehicle and industrial power applications," Ziebart, who took over in September, said in the statement. "With this move, we are systematically expanding our presence in the future market of Asia." Under Ziebart, a former executive in the motor vehicle industry, Infineon is pulling out of businesses he considers too risky or expensive, and focusing instead on such areas as chips for cars, where demand is rising as manufacturers add more electronics to their vehicles. The planned plant is the second US$1bil factory investment Infineon has announced this year. Expanding production in Asia will also make Infineon less susceptible to currency swings, Ziebart said. About two-thirds of the company's cost base is in euros, and chief operating officer Andreas von Zitzewits had in November said the value of the euro, which advanced to a record on Tuesday, is a "very big headache."
Infineon said it was the world's second-largest producer behind Freescale Semiconductor Inc in the US$13.3bil market for chips used in cars, and in Europe, where it has a market share of 15 per cent, ranks behind STMicroelectronics NV. Siemens VDO, the motor vehicle division of Siemens AG and an Infineon customer, had in June forecast electronics components to represent about 40 per cent of a car's value by 2010, compared with 23 per cent now. Only 10 per cent of all cars in Europe are equipped with a satellite-based navigation system. Infineon forecast the market for electronics components in cars to grow by about 10 per cent in the next 10 years. The company also makes chips that go in personal computers, mobile phones and security systems.
(Source: The Star, 9 December 2004)
Sony Corp, the world's second biggest consumer electronics maker, plans to almost double the use of its own chips to 40 per cent by 2007 to differentiate its products from those of rivals. "We want to use more of our chips because it will enable us to make better products," a spokesman said. "It will also help us make use of our existing facilities, which will lead to lower production costs." Sony, which procures about one trillion yen (US$9.7bil) worth of chips annually, now gets about 80 per cent of the semiconductors for its products from outside suppliers. In June last year, the company announced it would invest-500 billion yen in the three years ending March 2006 to expand chip operations. Sony, which gets about 70 per cent of its overall sales from electronics, said in late October that fiscal second-quarter operating profit at the division fell 83 per cent to 7.2 billion yen.
(Source: The Star, 9 December 2004)
The decision by Germany's giant chip manufacturer, the Munich-based Infineon Technologies AG, to build a new front-end production plant in the Kulim High-Tech Park, could bring innovative products and technologies into the country in addition to a fresh infusion of equity capital. When Infineon announced recently that it would invest some US$1 billion, technology experts in Germany said Malaysia should not overlook the fact that it stands to benefit immensely from the latest technology to be used in the plant, which will mainly produce power and chips used in automotive and industrial power applications.
The groundbreaking ceremony for the new plant is planned for early 2005, according to Infineon sources in Munich. The ramp-up is expected to be in 2006. The plant, when operating at full capacity, will employ some 1,700 people. "This new plant is an important step in continuing our successful business with chips for automotive and industrial power applications. With this move, we are systematically expanding our presence in the future market of Asia," said Wolfgang Ziebart, Infineon's president and chief executive officer. "Our continuous investment in Asia also reduces our market risk concerning fluctuations of the US dollar's exchange rate against the euro," he said. Infineon's decision to set up a plant in Malaysia has not surprised German experts who have been closely monitoring the moves by a number of Germany's leading corporations to avail themselves of Malaysia's well-established infrastructure and market, particularly in the automotive sector.
Infineon's move is seen as a "logical step" in view of the recent flirtation between Germany's leading carmaker Volkswagen AG with Malaysia's own Proton Holdings Bhd. Both have decided to form a "strategic partnership" in car production. "Malaysia has a well-established base of manufacturers of car parts and accessories, along with good distribution outlets in the rest of the lucrative markets of South-East Asia," said Rudolf Schmidt, a management consultant near here, who is familiar with Asian markets. According to market research company Strategy Analytics, the automotive semiconductor market was worth some US$13.3 billion last year, having posted a 14.1 per cent growth from the US$11.5 billion in 2002.
(Source: Business Times, 29 December 2004)
M'sia 15th Most Attractive FDI Destination
Malaysia is the 15th most attractive destination for foreign direct investment (FDI) globally – up from the 23rd position last year, according to a latest annual survey of executives from the world's largest companies. Management consulting firm AT Kearney, which is responsible for the FDI Confidence Index survey, said the jump in Malaysia's ranking was driven by enthusiasm shown by Australian and Singaporean investors.
It said the favourable ranking was also partly contributed by North American and European investors seeking to diversify their operations across Asia and anticipating growth in Asian countries. "Malaysia scores particularly well among manufacturing and IT investors. Heavy and light manufacturing investors upgraded the country from 18th last year to 16th and 21st to ninth, respectively. Electronics investors ranked Malaysia their seventh most attractive market up from the 13th place. Malaysia is also a hot spot for communication service investors, who ranked Malaysia fourth most attractive," it said in a statement. It said fabricated metal, industrial machinery and computer equipment investors ranked Malaysia their fifth most attractive FDI location.
It said Malaysia's buoyed stock market as well as merger and acquisition activity had helped improve banking investor's outlook on the country – they ranked Malaysia 14th most attractive compared to below the top 25 last year. However, AT Kearney said Malaysia would have to pay attention to the lack of skilled labour in order to further improve its ranking. "Foreign investors report having some difficulties staffing in advanced manufacturing and IT operations and Malaysian graduates are migrating to higher-paid positions in Singapore or Western countries." It also said militant Islamic groups involved in violence in Southern Thailand could lead to increased perception of possible political instability in Malaysia.
(Source: The Edge, Financial Daily, 9 November 2004)
Fitch Ratings has upgraded Malaysia's local and foreign ratings following the improved political climate, the government's governance reforms and also its commitment to reduce the fiscal deficit. The international rating agency upgraded the long-term foreign currency ratings to A- from BBB+ and the long-term local currency ratings to A+ from A. It also affirmed Malaysia's short-term rating at F2. The outlook on the ratings is stable. "Fitch's rating action reflects Malaysia's improved political climate following the smooth transition of power and unveiling of governance reforms, robust international liquidity position, declining external debt profile and enhanced prospects for stabilising public debt thanks to a demonstrated commitment to fiscal consolidation," it said recently. It also said Malaysia's new administration had set the stage for a positive reform agenda.
Backed by a strong public mandate, the government had embarked on anti-corruption measures and long awaited bureaucratic and government linked corporation reform. Fitch forecasts Malaysia's economy to grow 6.7 per cent this year and 5.7 per cent in 2005, against growth of 5.3 per cent in 2003. The government forecast a 7 per cent growth this year and 6 per cent next year. Fitch's associate director, Asian sovereigns, Ngiam Ai Ling said the marked shift in the government's fiscal priorities and significant cutback in development expenditure by 21 per cent in 2004 and another 9 per cent in 2005 had signalled the government's determination to trim its fiscal deficit.
Malaysia's external finances were a fundamental rating strength, having improved at an astounding pace in the last two years. It forecast Malaysia's current account position to reach a historical high of 13.2 per cent of gross domestic product (GDP) for 2004 as a whole, thanks to double digit export growth, strong tourism receipts and a net oil trade surplus. Fitch also said the fiscal deficit is on track to register 4.5 per cent of GDP this year, in line with the original targets stated in Budget 2004. It also noted that now would be an opportune time for Malaysia to consider graduating to a less rigid exchange rate regime to enhance future policy flexibility.
(Source: The Edge, Financial Daily, 9 November 2004)
Malaysia's exports probably rose at their slowest pace in seven months in October as manufacturers including Unisem (M) Sdn Bhd sold fewer semiconductors and other electronics goods overseas. Exports may have risen 23 per cent from a year earlier after climbing 29 per cent in September, according to the median forecast of nine economists surveyed by Bloomberg News. The government is due report October trade figures on Dec 6 in Kuala Lumpur. "A slowing in exports of electrical and electronics products probably caused export growth to ease," said Wong Chee Seng, an economist at DBS Group Holdings Ltd, South-East Asia's biggest bank by assets. Malaysia's economic growth slowed to 6.8 per cent in the third quarter after growing a revised 8.2 per cent in the previous three months.
(Source: The Malay Mail, 4 December 2004)
Malaysia's trade surplus in October grew by 9 per cent to RM7.9bil from RM7.32bil in September, the Ministry of International Trade and Industry (MITI) said in a statement recently. Year-on-year, the October trade surplus was up 18.1 per cent, marking the 84th consecutive month of trade surpluses since November 1997. Total exports in October fell 4.7 per cent month-on-month to RM44.17bil, but were up 18.7 per cent year-on-year, MITI said, adding that despite the decline, the October exports were the second highest monthly figures recorded this year. The year-on-year increase in exports was led by an expansion in exports of electrical and electronics products, crude petroleum, chemicals and chemical products, liquefied natural gas and steel products. MITI said significant increases were recorded in exports to Asean with growth of 13.1 per cent, to the United States, 15.5 per cent, Australia 125.8 per cent, the European Union 21.1 per cent, South Korea 59.9 per cent, China 16.5 per cent, West Asia 28 per cent and Japan 6.2 per cent. Imports in October contracted by 2.3 per cent month-on-month to RM36.19bil, but were up 18.9 per cent year-on-year.
MITI attributed the year-on-year rise in October imports to an increase in intermediate and capital goods. It added that imports of intermediate goods amounted to RM25.44bil, or 70.3 per cent of October's total, while capital and consumption goods made up 15.6 per cent and 6.3 per cent of the total, respectively. In the first 10 months of 2004, the trade surplus stood at RM68.04bil, compared with RM67.98bil in the corresponding period last year. Exports for the January-October period were valued at RM398.21bil, up from RM326.93bil a year earlier, while imports rose to RM330.17bil from RM258.95bil previously.
(Source: The Star, 7 December 2004)
Despite expected global challenges, the Malaysian economy can grow more than the targeted 6 per cent in 2005, Prime Minister Datuk Seri Abdullah Ahmad Badawi said. "I think we can achieve the 6 per cent, and we hope we can do better," he told reporters at the Mier National Economic Outlook 2005 Conference in Kuala Lumpur recently. Abdullah, who is also Finance Minister, said the Government has targeted 6 per cent growth for 2005, which is still a strong and robust rate, given much lower growth expected for the global economy amid the looming uncertainties.
Malaysia posted a strong economic growth this year, achieving 7.8 per cent in the first quarter, 8.2 per cent in the second quarter and 6.8 per cent in the third quarter. This puts growth for the first three quarters of the year at 7.6 per cent, beyond the 7 per cent annual growth target for the year. Earlier in his speech, Abdullah described 2005 as also a key inflection point, saying it marks the midway point towards Vision 2020. It is also a key year as the Ninth Malaysia Plan 2006-2010 is drawn up. He said the Government was open to constructive criticism and new ideas as it will be facing a number of challenges that may cloud its prospects in 2005. "In particular it appears that the turmoils of the global currency markets (as last seen in 1997-1998) could potentially make a comeback if the growing global trade imbalances are not checked. Add to that the uncertainties surrounding the volatility of oil prices and the future performance of the US, Chinese and Japanese economies, then we have veritable list of issues and concerns," he said.
Abdullah, however, said Malaysia will not craft policies and strategies to respond to external events or short-term trends, nor will it simply follow what others are doing. Instead, he said, the Government has deliberately stuck to building a national performance culture. It had set out three levels of strategic development priorities – public sector performance (fiscal discipline and better public service delivery system), corporate sector performance (productivity and global competitiveness) and human resources performance (software or human capital development). In public sector performance, Malaysia is on target towards achieving a 3.8 per cent budget deficit for 2005 while the public service delivery system to reduce costs to the economy has begun to see results.
Abdullah also said the private sector-led growth can be seen from the first quarter of this year as it led the public sector by 10.2 per cent. He said while manufacturing continues to be the mainstay of the economy, the nation must also capitalise on other sectors in services and agriculture namely Islamic financial services, tourism, healthcare, agriculture and biotechnology. He also stressed on poverty reduction efforts towards long-term sustainability of the economic growth, saying his goal was to reduce poverty to 0.5 per cent and to eliminate hard core poverty by 2009.
(Source: Business Times, 8 December 2004)
ENVIRONMENT NEWS
It will be harder to get toxic wastes into the country now that a comprehensive check system has been put into place. A new standard quarantine operating procedure, in place for the last two months, would promptly detect such wastes, said Natural Resources and Environment Ministry secretary-general Datuk Dr Isahak Yeop Mohamad Shar.
Before the implementation of the procedure, which involved various enforcement agencies, including Interpol, checks on the entry of scheduled toxic waste into the country was not "tight enough," he said. "The role of certain government departments in relaying information to the Department of Environment (DOE) was not specific once suspected waste materials were detected at the port of call," Dr Isahak said. "Such materials could be brought into our country illegally but now, whenever there is doubt, we have a mechanism to co-ordinate proper actions with the Customs," he added. He said the mechanism, which pooled manpower and expertise from DOE, the Royal Malaysian Customs and Excise, the police and other government agencies, enabled proper checking for suspected hazardous materials at the country's various entry points. Offices had been set up within Customs complexes at the entry points and DOE personnel were stationed there, Dr Isahak said after opening a two-day seminar on managing coastal areas and tourism resources held by Universiti Utara Malaysia at the Bukit Merah Lake Town Resort recently.
He said the aim was to prevent a recurrence of a case where 12,000 metric tonnes of industrial wastes, believed to be toxic, were allegedly shipped illegally from Taiwan to a brick-making factory in Segamat in June. A Taiwanese company was reported to have falsified documents to export the material containing a high percentage of copper, which if haphazardly stored or disposed of, could have a grave long-term impact on the environment.
(Source: The Star, 21 December 2004)
Starting next year, factories will be accorded environmental ratings based on the manner in which they dispose of their chemical and toxic wastes. Natural Resources and Environment Ministry parliamentary secretary Sazmi Miah said recently the move is to encourage factories to give priority to effective waste disposal measures. "We will introduce a set of guidelines. They will be given two, three or four-star ratings. We will categorise them based on their size and the nature of their wastes," he said. Sazmi was speaking to reporters after opening a workshop on environment on behalf of minister Datuk Adenan Satem.
Fifty participants – including journalists, experts from the Department of Environment (DOE) and representatives from institutes of higher learning and non-governmental organisations – are attending the three-day workshop organised by the Environment Institute of Malaysia. Sazmi said rating the factories will be more effective than penalising guilty operators each time they breach regulations. He said the guidelines are being compiled by the DOE and are expected to be ready for implementation by middle of next year. "We have received positive feedback from factories," he said, adding that with the rating system, it is hoped that factories will not dump their wastes indiscriminately.
(Source: The Sun, 23 December 2004)
MEMBER NEWS
Perusahaan Sadur Timah Malaysia Bhd (Perstima) made a RM14.42 million net profit for the first half of its financial year ended September 2004 on a RM291.21 million revenue. The tin plate producer told Bursa Malaysia Bhd that the net profit was 45 per cent more, while the revenue was 71 per cent higher than what it made in the same corresponding period a year ago. It posted a RM9.94 million net profit during the same period last year on a turnover of RM170.2 million.
For the six-month period under review, Perstima's basic earnings per share rose to 15.25 sen from 10.75 sen previously, while its net tangible assets per share grew to RM1.42 from RM1.34 previously. For the individual second quarter ended September this year, the group's net profit rose to RM8.47 million from 4.89 million in the same quarter last year following an improved turnover. Revenue during the quarter surged to RM153.73 million from RM90.85 million previously despite higher production cost during the period, the firm said recently. Perstima said it expects its result for the year ending March 31 2005 to be "satisfactory" despite the challenging and competitive operating environment.
(Source: Business Times, 4 November 2004)
Tin Plate producer Perusahaan Sadur Timah Malaysia Bhd's (Perstima) plant in Vietnam has turned in a significant earnings contribution after a relatively short gestation period. The group recently reported a 74 per cent increase in net profit to RM8.5mil for its second quarter ended Sept 30, with most of the earnings rise provided by its plant in Vietnam. This is the first large contribution from the plant. The Vietnam plant's performance first appeared in the group's quarterly accounts in the January to March period, showing a loss of RM1.7mil. In the April to June quarter, it turned around to a small maiden profit of RM500,000. In the latest reported quarter, the Vietnam plant produced an operating profit of RM3.5mil.
This helped Perstima to post a 45 per cent increase in net profit to RM14.4mil, and earnings per share of 15 sen for the six months ended Sept 30. Equally important, Perstima's earnings in the second half is expected to exceed that of the first half as the Vietnam plant continues to expand production. The plant is in the process of raising production from the 3,000 tonnes a month when it was commissioned in October last year to 6,000 tonnes before the end of the year. The key to earnings growth for Perstima is therefore its plant in Vietnam. The group's market in Malaysia is growing at a relatively slow pace, as the country is not a significant exporter of canned food.
This is in contrast to Thailand, which has a much larger tin plate industry, as that country is a major exporter of canned food. In this respect, there is potential for growth in Perstima's plant in Vietnam, which also has a large agro-based sector. Further, the per capita consumption of tin plate in Vietnam is still very low, but growing. Tin plate is mainly steel plate that is chemically treated with a thin layer of tin. Its name is therefore a little misleading. Perstima's plant in Vietnam fills a gap in that market, which had previously imported most of its tin plate requirements from South Korea and Japan. The plant uses machinery that was transferred from Perstima's factory in Johor. The Vietnam plant puts to better use an under-utilised production line in the Johor factory.
The early and convincing success of Perstima's Vietnam plant came as a surprise. Perstima had started as a national project and was seen as a protected project. Now it has shown it can thrive in the open market. After severe financial difficulties caused by speculation in its shares, brought about after a change of management, Perstima's viability was gradually revived by its Japanese partners, who took over the management a few year ago. Since then, earnings have been growing, Perstima has proposed an increase in gross interim dividend to 7 per cent from 5 per cent and if it maintains last year's final dividend of 7 per cent, will be paying a total dividend of 14 per cent. There is, in fact, a likelihood of it even raising the final dividend.
(Source: The Star, 17 November 2004)
As Christmas and New Year approach, most people are burdened with the task of selecting appropriate gifts for their friends and loved ones. To make it easier for them, Royal Selangor has come up with six gift packs of its most popular designs. Each festive pack comes with a free gift. For starters, the Festive Classic Expressions set features a matching vase and jug. The free gift is a trinket box in the same design.
All three pieces are stylishly adorned with a beautiful pattern inspired by the intricate woodcarvings of an old timber palace in Terengganu. The jug features a handle with a decorative design echoing the motif on its base. It also has a convenient ice-strainer inside in a woodcarving design. For something different, the Festive V&A set makes a lovely gift. It comprises a vase and trinket box, with a 3R Bead photo frame as the free gift. Royal Selangor International Sdn Bhd communications executive Wong Wei Kim said the collection was a collaboration between the company and the famous Victoria and Albert Museum of London. "The British museum is home to a rich collection of art from which Royal Selangor gets inspiration for the designs in this festive gift range," said Wong. The subdued but rich finish on each piece resembles that of antique pewter, complete with tiny blemishes on the surface which lend the pieces a certain charm.
Other gift packs include Winnie The Pooh, Bamboo and Cha (a tea set). They all come with free gifts. Prices for the packs start from RM400. The promotion is on until Dec 31. For details, call 03-4145 6234.
(Source: New Straits Times, 20 November 2004)
Ivernia Inc, which plans to start up the Magellan mine in Western Australia, said it agreed to supply up to 100,000 metric tons of lead concentrate to Metal Reclamation Bhd, a Malaysian lead producer and recycler. The concentrate will be supplied from Magellan in 2005 and 2006, Toronto-based Ivernia said in a Business Wire statement dated Nov 24. Ivernia owns 51 per cent of the project. The mine is expected to start in the first quarter of 2005 and produce 410,000 tons of lead in the first five years of its 2-year life, Ivernia said. The company expects Magellan, located 700km from Geraldton, to become one of the world's three largest lead mines by 2006.
(Source: The Malay Mail, 26 November 2004)
Pewter is essentially an alloy comprising mainly tin, with small amounts of antimony and copper added for strength. Good pewter is made up of more than 92 per cent of tin. Modern pewter no longer contains lead – making it perfectly safe to eat and drink from – and matures by developing a pleasing and subdued glow with time and usage.
The majority of Royal Selangor pewter products are hand-cast, where molten pewter at temperatures of 250)C is quickly ladled into steel moulds at a precise angle to ensure each cast is well formed. The moulds are prepared from a designer's sculpture or technical drawing. After cooling, the item is removed from the mould. Rough edges are carefully filed and polished by hand using fine-grade sandpaper or against a buffing wheel. Once polishing is complete, appendages such as handles, spout and hinges are soldered on. Skilfully made joints are virtually invisible and remarkably strong. After soldering, the finished product is polished once again with soft flannel or, in some cases, with "stone leaf" (Tetracera scandens) – a wild, tropical leaf with a fine, abrasive nature. Many of these manufacturing techniques have been handed down through generations.
Pewter does not flake, and it barely tarnishes, making it simple to clean. A relatively soft metal, pewter requires gentle cleaning. After use, wash with mild detergent and dry immediately with a soft cloth (cotton or flannel are both fine). Wine of fruit juices will stain pewter if left unwashed overnight. To maintain its sheen, use Royal Selangor's Pewter Wash for satin finishes and a good brand of silver polish for bright finishes. If you live by the sea, wipe your pewter with a damp cloth from time to time, as atmospheric salt will dull its nature. Wood components can also be wiped with a damp cloth and dried immediately. Apply linseed oil or olive oil to the wood components occasionally to improve its lustre. Do not scrub pewter with a brush or use a dishwasher. Do not microwave or expose to direct flame or hot plates.
(Source: The Sun Weekend, 11-12 December 2004)
It's not called the School of Hard Knocks for nothing. Once students at the school have been given their steel hammer, wooden mallet, a pewter disc and some instructions, the hammering begins with a crescendo. The din is incredible as the force of the mallet shapes the pewter disc that has been laid out on a wooden shaping mould. Creativity is encouraged, and should you changed your mind about what shape the bowl should take, that's all right because pewter is highly malleable – a misshapen square bowl can easily be knocked back into shape. With the help of an experienced pewtersmith, "apprentices" at the school learn how to form, scrap, polish and pack their own pewter dishes.
The School of Hard Knocks is located within Royal Selangor's visitor centre in Setapak Jaya, Selangor. It provides an hour-long, hands-on, fun and creative way to learn about pewter at the world's largest pewter company. By the time I finished making and polishing my bowl, I even had a certificate, pronouncing my handcrafted dish a masterpiece using time-honoured tools and methods. The School of Hard Knocks is one of the offerings for experiential learning about pewter at the Royal Selangor Visitor Centre. Opened to the public in November last year, the world-class centre is a global first. The centre has much to offer to both adults and children. However, to date, foreigners seem keener on visiting the centre than locals. "The centre receives 150,000 visitors a year, most of them foreigners," says Royal Selangor communications executive Wong Wei Kim in an interview. With a built-up area of 40,000 sq ft, the centre comprises three main sections, namely, The Gallery, Factory Tour and Retail Store.
"The Gallery has interactive exhibits that include using our sense of sight, hearing and touch. It is meant to provide experiential learning to visitors," Wong says. The Chamber of Chimes, for example, allows visitors to strike bronze, plastic, wood, bamboo and pewter to hear the distinct and melodious variety of sounds created by different materials. The meandering corridor known as The Hall of Finishes, meanwhile, enables visitors to touch and feel different pewter textures to showcase its versatility and beauty. It is difficult to resist touching and feeling the tiles of pewter that showcase 14 different finishes – from smooth and grooved to lightly dimpled and scrunched. The tiles are so beautiful that a question is asked about buying them. "We can make pewter tiles to order," Wong says. A scientific corner also attempts to enlighten visitors about the concepts of weight and gravity, the density of different metals and the scientific elements of pewter.
Visitors interested in the history of pewter and the 119-year-old Royal Selangor can glean that information from the centre's Pewter Museum, which has a collection of old pewter smithing tools – including those of Royal Selangor founder Yong Koon – and antique pewter dating from the late 1800s to the 1960s. The contemporary zone of the Gallery also has a hanging plastic container that holds 1,578kg of pewter swarf – the fine chips of filings from pewter that the factory collects daily from its smithing works. "The pewter swarf is saved and recycled. Nothing is wasted," Wong explains. One day's worth of recycled swarf can be melted down and made into 1,422 tall teapots or 3,849 small teapots. "This exhibition demonstrates how recycling can save resources," Wong adds.
Exiting the Gallery, visitors get taken on a Factory Tour, which showcases the different pewter-production processes, including casting, filing, polishing, soldering, hammering and engraving. At the factory, visitors get to watch pewtersmiths make Royal Selangor's pewter creations – real time. "Fifty per cent of what we make here is sold locally, and the other 50 per cent exported to more than 20 countries in five continents," Wong says. She adds that the factory has over 500 skilled craftspeople who are trained in-house, and another 40 people in the design department who take charge of product design and development, packaging and graphics. And despite the adoption of technology, every piece of Royal Selangor pewter is still handcrafted. "Each piece goes through at least one set of hands," Wong explains. "Some of the craftspeople have been with the company for between 20 and 30 years," she notes. As a tribute to their craft, the Visitor Centre has a Wall of Hands, which showcases the handprints of Royal Selangor's artisans, designers and craftspeople. The Factory Tour also gives visitors a chance to try their hand at hammering dimples on a pewter surface. A traditional form of pewter design enhancement, hammering looks deceptively simple. "Hammering dimples alone takes up to six months worth of training," Wong explains. With no training, my attempts resulted in uneven dimples scattered all over the pewter rather than in straight rows.
The tour usually ends with a visit to the Retail Store, where over 1,000 different collectibles and gift designs – from traditional tankards and elegant tea sets to contemporary photo frames and desk accessories – are on sale. Royal Selangor also has retail outlets in London, Toronto, Melbourne, Tokyo, Hong Kong and Singapore, which sell pewter products made at the factory in Setapak. "Malaysia no longer produces enough of our own tin, so we buy tin from the open market, which we know mostly comes from South America and China," Wong says.
The Royal Selangor Visitor Centre is open 365 days a year from 9am to 5pm. Admission and guided tours in Malay, English, Mandarin and Japanese are free. The School of Hard Knocks is conducted in groups of five to 50 people per session, and costs RM50 per person. Prior booking is required. For more information, visit www.visitorcentre.royalselangor.com.
(Source: The Sun Weekend, 11-12 December)