Electronics/Semiconductor Sector News
 

Global Chip Sales Up 5.5pc

Global semiconductor sales gained 5.5 per cent in August because of higher demand for personal computers and wireless phones, an industry group said. Total sales increased to US$22.7 billion from US$21.5 billion a year earlier, the Semiconductor Industry Association said in an e-mailed statement yesterday. Sales climbed 2.4 per cent from July’s US$22.2 billion. “Sales of personal computers and cellular handsets continued to be the principal drivers of demand,” George Scalise, president of the San Jose, US-based association, said in the release.

In the first eight months of the year, sales gained 4.5 per cent to US$170.2 billion. In June, the association cut its forecast for global semiconductor sales growth this year to 4.3 per cent from 7.7 per cent, citing the falling price of dynamic random access memory chips. In August, DRAM and NAND flash memory chip revenue suffered from “continuing price pressure” and “dampened overall industry growth”, the association said. Excluding memory products, global sales rose 11.4 per cent from a year earlier, Scalise said. Unit sales of personal computers advanced 9.1 per cent in August, while those of wireless handsets “remained strong”, especially in emerging markets, the group added.

The association said it was “cautious” about the outlook for the industry. “With consumer purchases now driving more than half of semiconductor sales, consumer confidence is essential to the entire supply chain of the global technology sector,” Scalise said. “It is essential for Congress to move swiftly to restore stability to the US financial system.”

(Source: New Straits Times, 3 October 2008)


‘Semiconductor Revenue to Fall’

Worldwide semiconductor revenue is forecast to drop next year, the first ever back-to-back years of declining sales, market research firm Gartner said yesterday. It said worldwide semiconductor revenue is forecast to total US$219.2 billion in 2009, a 16.3 per cent decline from 2008 revenue. Gartner has forecast revenue for the industry of US$261.9 billion in 2008, according to preliminary figures, a 4.4 per cent decline from 2007.

(Source: New Straits Times, 17 December 2008)


Electronics, Electrical Goods Makers Cut Production

The financial tsunami is hitting Malaysia and the export-based manufacturing sector, particularly electronics and electrical goods manufacturers, are the first to feel its impact. According to a report in Nanyang Siang Pau yesterday, manufacturers of electronics and electrical goods started cutting down production last month, some by as much as 40%. With orders from both local and foreign companies slashed, many electronics factories have reduced the number of shifts, with some even temporarily stopping production.

However, manufacturers interviewed by the daily emphasised that initial cost-cutting measures would be the reduction of overtime, as well as transport and other allowances. Lay-offs would be a last resort. It is estimated that more than 200,000 people are engaged in the electronics industry, of which about 30% or between 55,000 and 65,000 are employed by the 17 American multi-nationals. Exports of the 17 companies totalled RM73.8 billion last year, or 28% of the country’s total electronics exports for the year.

Preliminary figures of an economic survey by the Federation of Malaysian Manufacturers (FMM) show that orders received by the country’s export-based manufacturing sector fell 30-40% last month, forcing a reduction of output by up to 40%. The figures show that the global economic slowdown has clearly affected the manufacturing sector and FMM believes the situation will worsen next year. Malaysia is the world’s sixth largest exporter of semi-conductors, and a US-led drop in consumption will have a direct and deep impact on the electronics sector.

Datuk Lee Ow Kim, FMM council member and its northern branch chairman, said the steepest output cuts are seen in the electronics and car sectors and their downstream industries. He told the daily that production lines in these plants have generally reduced the number of working days. Employees have also been asked to take annual leave to cut production costs. Lee said he was told by foreign investors that they had slashed output by 30-40%. “Some of those who deal only with the Americans have not received a single order for the next three months.”

Malaysian American Electronics Industry Association, a member of the American Malaysian Chamber of Commerce, said most of the country’s electronics factories have either temporarily suspended production or reduced it by one to two weeks a month. Association president Datuk Wong Siew Hai said to his knowledge no factory had totally stopped production for now, but that it is any one’s guess what would happen next year when the full effects of the meltdown are felt.

FMM’s Lee said if financial results do not improve in five months, manufacturers will have to force workers to take unpaid leave. He said production workers, who enjoy 20-30 days’ annual leave, are being asked to clear one day’s leave a week. “Nevertheless, they still get their salaries.”

Malaysia Motorcycle and Scooter Dealers Association president Wee Hong said sales had dropped 33-44% since July.

(Source: The Sun, 17 December 2008)


4,700 to Lose Jobs as Electronics Sector Takes a Hit

More than 4,700 workers will be retrenched between January and March, amid a forecast of protracted sluggish economic conditions next year. Human Resources Minister Datuk Dr S. Subramaniam said the electronics industry would be the hardest-hit sector. He said the 4,749 workers who would lose their jobs included 1,500 to be laid off by hard-drive manufacturer Western Digital at its Sarawak plant.

The Human Resources Ministry has set up operation centres at the district, state and national levels to compile information on employers affected by the global economic crisis. "This will enable officers on the ground to make sure obligations that are due to the workers are provided for," Subramaniam said at the Malaysian Training Providers Berhad teh tarik session yesterday. "We will help them (workers) by making sure they get what is due to them. How we can get them alternative employment or provide training prior to employment. When a company is facing losses, you cannot force the company to keep its workers. In that situation, we have to make sure everything is done according to the laws of the country and is fair to the workers."

Under the Employment Act, employers must report at least 30 days in advance any lay-offs, pay cuts, voluntary separations and retrenchment exercises to the Human Resources Department, failing which they could be fined not more than RM10,000. The act also compels employers to pay retrenchment benefits equal to 10 days' pay per year for workers who have been employed for less than two years, 15 days' pay per year for workers who have been employed for between two and five years and 20 days' pay per year for workers who have been employed for more than five years.

(Source: New Straits Times, 23 December 2008)


Economic News

 

Commodities Take a Beating from Crisis

Global commodities are expected to continue trading on shaky grounds for at least another five months, given the ongoing mass liquidation by hedge funds in the commodity markets. Over the past three months, fears of commodity investment redemption remains as the driving force behind the broad sell-off in major commodities. The current credit crisis could also lead to a global economic meltdown that affects both hedge funds and commodity indices. This adds to the concern of further de-leveraging leading to more speculative short-selling as well as a potential reduction in global demand for crude oil, base metals and most agriculture-based commodities.

Price Slide
The prices of crude oil, platinum, steel, copper and zinc have slid by 35% to 45% while agro-based commodities like corn, crude palm oil (CPO) and soybean eroded by 50% to 60% due to the broad sell-off by commodity and hedge fund players. Interestingly, investors are still hanging on to gold as a traditional safe haven amid the current turmoil in the markets. Unlike other major commodities, the precious metal is down by only 2% over the past three months.

Economists contacted by StarBiz concurred there was evidence that hedge funds continued to reduce their commodity holdings amid widespread risk aversion and a souring outlook for global consumption of raw materials. Some high-profile commodity hedge funds have also run into trouble this year. A month ago, Ospraie Management LP decided to close its biggest fund after taking short positions on commodities futures and long ones on resource equities.

An analyst with a local bank-backed brokerage said: “Many fund managers were struggling to cover their losses elsewhere and have dipped into their commodity profits to raise money. Their flight has aggravated the steep drop in oil, agriculture and other commodity prices in recent months.”

Grim Outlook
David Cohen, action economics director of Singapore-based Asian Forecasting Group told StarBiz that the financial market freeze-up, depressing plunge in major stock markets, poor economic data from super powers like the US and Britain points towards a grim outlook for the global economy. “Even commodities have lost their appeal as an inflation hedge as the reduction in global demand will continue to weigh down on commodity prices. The big question now is whether China and India can still keep the ball rolling?” Cohen said investors would want to see to the extent of China’s growth, particularly in its consumption of raw materials like crude oil, vegetable oils, steel, coal and other metals.

AmInvestment Bank senior economist Manokaran Mottain said: “Crude oil may climb back to US$100 per barrel by year-end but then it will hit the low side of US$80 per barrel in the short to mid-term, depending on the direction of the US economy.” He warned that the previous boom in global commodities was not merely driven by global demand from Asian emerging economies, but also hedge fund activity. “Hedge funds have widely speculated in commodity trading. If the US bailout plan fails, they (hedge funds) will continue to withdraw from the commodities market.” Manokaran said a one percentage point drop in the US gross domestic product (GDP) in the fourth quarter last year had trimmed export growth by 4%. “This will reduce China’s GDP by 0.5 percentage point,” he added.

The US Federal Reserve last week lowered its benchmark federal funds rate from 2% to 1.5%. The Bank of England and the European Central Bank also lowered their key rates, along with central banks in China, Canada, Sweden and Switzerland as part of an emergency effort to unclog world credit markets and prevent a global economic collapse. Lower interest rates can boost the economy by making credit cheaper, but they also tend to depress the US dollar.

Selective Commodities
Last Friday, despite major drops in most commodities, gold emerged as the winner. Gold rose to a 10-week high on the London Metal Exchange (LME) with gold for immediate delivery advancing 1.3% to US$924.95 an ounce. On Comex, gold futures for December delivery gained 4.8% to US$929.30 an ounce.

Crude oil, meanwhile, eased by over US$4 a barrel to a year’s low on Friday as weakness was spurred by the International Energy Agency’s intention to cut world oil demand growth to 0.5% for 2008 to its lowest percentage rate since 1993. The US light crude for November delivery dropped to $82.86 a barrel as at 5.30 pm last Friday after touching a low of US$82, its lowest since October 2007. London Brent crude was also down at US$78.55, below $80 for the first time in a year.

Selective base metals — copper and aluminium — also suffered a similar fate. Copper last week shed 19%, the steepest drop since April 1986 while aluminium fell to its lowest in about three years.

On the local front, the price of CPO eroded by 60% to close at RM1,766 per tonne last Friday from its record of RM4,486 per tonne in March. Analysts said rising palm oil inventory remained a major concern among players and exporters. The latest Malaysian Palm Oil Board release saw palm oil inventory for September at 1.95 million tonnes compared with 1.85 million tonnes in August. One consolation is that CPO production for end-September has eased slightly for the first time in seven months. Output fell to 1.58 million tonnes by end-September from 1.60 million tonnes in August.

Tin on the Kuala Lumpur Tin Market reached its all-time high of US$24,040 per tonne in May. It has since settled lower to close at US$14,380 per tonne last Friday on a lack of demand. Tin on the overnight London Metal Exchange, which dictates the movement of tin on the KLTM, finished at US$14,800 per tonne.

Rubber was also hard hit on concerns that the weak car and light truck sales in the US could dampened demand for tyres. Market researcher JD Power & Associates estimates that car and light-truck sales in the US would fall to 13.6 million units this year and 13.2 million in 2009 from 16.1 million last year. Last Friday, Malaysian tyre-grade SMR 20 rubber was down at RM6.89 per kg while latex-in-bulk declined to RM4.72 per kg.

(Source: The Star, 13 October 2008)


Manufacturing Sector Still Attracting FDIs

The Malaysian manufacturing sector is still attracting robust foreign direct investments (FDIs) despite the current global financial crisis, says the Malaysian Industrial Development Authority (MIDA). Director general Datuk Jalilah Baba said the manufacturing sector continued to be an important engine of growth despite tough times. “The FDI inflow into Malaysia is still good. For the manufacturing sector, FDI totalling RM32.5bil has already been approved from January to July this year,” she said after the opening of the MIDA-ITAP Capacity Building Programme for Investment Promotion Officials of OIC Member Countries yesterday.

Of the approvals thus far, she said nine projects were from Organisation of Islamic Conference (OIC) member countries with investments totalling RM83.8mil. “Major projects approved were from the United Arab Emirates, Syria, Iran, Saudi Arabia and Indonesia,” Jalilah said. She added that the total investments secured for the manufacturing sector so far was almost on par with the total RM33.4bil in FDIs last year. She said the local political situation was not deterring foreign investors from Malaysia. “We do not see any real impact. We were concerned initially but many investors and potential investors at our roadshows commented that it (the current situation) was a sign of political maturity,” she said.

According to ITAP (Investment Promotion Technical Assistance Programme) head Torek Farhadi, investors looked to countries like Malaysia as an investment haven because of its ability to remain competitive despite a global economic slowdown. “When there is a global downturn, investors will look to competitiveness. The fact that Malaysia’s manufacturing sector has attracted so much FDI is proof that its economy is competitive. I believe that the global economic downturn would create even more business for Malaysia,” he added.

On another note, Jalilah said the capacity building programme was intended to foster ties between Malaysia and OIC member countries. The programme attracted 35 participants representing 26 OIC countries, she said, adding that the participants would be updated on Malaysia’s experience in the development of high-technology parks, industrial estate development and customs-related areas. “We also see it as an avenue for Malaysian companies to make inroads into those countries,” she said.

(Source: The Star, 14 October 2008)


Malaysia not Losing Its Investment Appeal

Malaysia is not losing out on its investment competitiveness in the manufacturing sector as most of the approved projects have been implemented said Malaysian Industrial Development Authority (MIDA) director general Datuk Jalilah Baba. "About 75 per cent of the projects approved by MIDA between 2002 and last year, totalling 4,432 projects have been implemented while the rest are in various stages of implementation," she said at a media networking event in Kuala Lumpur yesterday. With MIDA's special handholding exercise to help investors, the number of manufacturing projects not implemented was kept to a minimum 5.4 per cent. She was responding to recent claims by some quarters that Malaysia was losing its attractiveness to foreign investments.

Malaysia attracted RM32.5 billion of foreign direct investments through 496 projects during the first seven months of the year compared with RM33.4 billion for 2007, an indication that this year's numbers will surpass that of last year. "Between 2003 and July 2008, foreign investments made up 55.7 per cent of the total capital investments in Malaysia." According to the latest World Investment Report by UNCTAD, Malaysia ranked third in terms of FDI inflows, attracting US$8.4 billion (RM29.4 billion) in 2007, behind Thailand's US$9.6 billion (RM33.6 billion) and Singapore's US$60.5 billion (RM212 billion).

On the prospects of FDI, she said the numbers are expected to deteriorate in the short- and medium-term due to financial turbulence, weaker global economic growth, tightening of credit standards, rise in risk premiums and sharp exchange of rate fluctuations. "FDI inflows have slowed markedly in the fourth quarter of 2007 and during the first half of this year, cross border mergers and acquisitions were lower than their peak in the second half of 2007." The current focus of the manufacturing sector is high technology, capital intensive and knowledge driven industries, industries manufacturing intermediate goods and resource-based industries.

Jalilah also said that MIDA plans to open up seven more offices worldwide as part of its overseas network expansion plans. They will be located in Houston (US), Munich (Germany), Ho Chi Minh City (Vietnam), Jakarta (Indonesia), Johannesburg (South Africa), Bangkok (Thailand) and Beijing (China). It opened offices in Guangzhou, Mumbai and Dubai during the first half the year. It will also be opening an office in Kangar, Perlis. MIDA promotes foreign and domestic investments as well as cross border investments and policies and strategies on industrial promotion and development.

(Source: New Straits Times, 14 October 2008)


Zeti: Govt to Focus on Avoiding Sharp Downturn

Malaysia’s economy may expand as little as four per cent in 2009, the slowest pace in eight years, and Bank Negara Malaysia is ready to shift its focus to boosting growth as inflation worries ease, governor Tan Sri Dr Zeti Akhtar Aziz said. “What is very vital is the economy should not be allowed to slip into a sharp economic downturn,” Zeti said in an interview here on Tuesday. “We have the capacity and the capability to implement fiscal, monetary and other measures to prevent such an economic downturn.”

Demand for made-in-Asia exports is weakening as the economies of its biggest customers of the US, Europe and Japan slow. The International Monetary Fund last week forecast the world’s advanced economies will expand next year at the weakest pace since 1982, stifling growth in emerging nations. The Malaysian economy will probably expand between five per cent and 5.5 per cent this year, Zeti said. That’s below the official forecast of 5.7 per cent in 2008. Finance Minister Datuk Seri Najib Razak on Tuesday said the government’s economic growth prediction for 2009 of 5.4 per cent may be revised.

The government’s forecast “was before all these developments that led to the severity of the financial crisis,” Zeti said. “The next 12 months will be highly challenging, but the recovery could happen by 2010.” Still, growth next year may be quicker than Bank Negara’s “rough estimation” of four per cent amid the introduction of policies to encourage consumption and expenditure, Zeti said. The government plans to announce an economic “stabilisation plan” on October 20. Bank Negara has “flexibility” to move on interest rates if the growth slowdown warrants a cut in borrowing costs, Zeti said. The central bank has maintained its overnight policy rate at 3.5 per cent for 19 straight meetings, avoiding following its counterparts around the region in raising borrowing costs even after inflation accelerated to a 26-year high. Policymakers next meet on October 24.

Inflationary pressures are receding as commodity and fuel prices decline, and consumer price gains may ease faster than initially expected, the governor said. The central bank forecasts inflation to average 5.5 per cent to six per cent in 2008. The inflation rate may fall below four per cent before the second half of 2009, and the balance of risks are now tilted towards growth, she said. “If there are signs that the moderation is more than what we had earlier assessed, we have the flexibility to respond,” Zeti said.

(Source: New Straits Times, 16 October 2008)


MIER Revises GDP Growth Upwards to 5.3%

The Malaysian Institute of Economic Research (Mier) has revised upwards Malaysia’s gross domestic product (GDP) growth in 2008 to 5.3% from 4.6% previously due to higher-than-expected growth in the first half of the year. But the independent research house forecast a lower GDP of 3.4% for 2009 due to the poor global economic outlook, and predicted that a recession might hit the country by the second or third quarter next year. “The situation that we are facing now is more serious than it appears,” Mier executive director Professor Datuk Mohamed Ariff Abdul Kareem said, referring to the situation in the US. “A prolonged US recession is a great possibility,” he said.

Indeed, some countries in Europe, together with Ireland, Iceland, New Zealand and Singapore, were now in recession, he noted. “For Malaysia, we predict a 40% chance the country will fall into a technical recession (i.e. two consecutive quarters of contraction) in the second and third quarter next year and a 30% possibility of real recession,” he said. The US recovery would be slow and might take a few years, Ariff reckoned. “Bailouts may provide some relief but it won’t prevent recession because the current crisis is a structural problem where the US has a huge budget and current account deficit of about half a trillion dollars and borrowings of about US$2.5bil a day,” he said. “The International Monetary Fund (IMF) cannot help much as its resources are limited and there are too many countries that are in difficulty at the same time.”

Ariff said Malaysia’s fundamentals were still intact and the banking system sound, but he had concerns about the budget deficit, noting that the budget had been in deficit for 10 years. Mier estimated a budget deficit of 4.8% of GDP in 2008 and 3.7% in 2009. On the weakening of the ringgit, Ariff said: “We think the dollar is overvalued and it will depreciate soon. We project the exchange rate will settle at the range of RM3.3 to RM3.4 to the dollar next year. The worst-case scenarios will be between RM3.5 and RM3.6.”

(Source: The Star, 17 October 2008)


Weakening Ringgit a Saving Grace for Exporters

The United States is expected to reduce its imports from Malaysia as the economy slows in the next few months. Exports to other markets, such as Singapore and China, could also be affected, said the Federation of the Malaysian Manufacturers. Some of the Malaysian exports to Singapore are re-exported to the United States, FMM's president Tan Sri Yong Poh Kon said. The saving grace for exporters is the weakening of the ringgit against the US dollar which would make them more competitive. "The decline in the price of crude oil and commodities is also encouraging, particularly if there is a concurrent review of energy prices that is reflective of market conditions," he said.

Yong said there was no sign to indicate that manufacturing companies in Malaysia would start to retrench workers. He noted there was an increase of 23 per cent in new vacancies reported to the Manpower Department in the first six months of this year compared with the same period last year. "As a precautionary measure, some of these vacancies would likely be reviewed and withheld until business conditions are clearer and more certain," he added. The 2008/2009 Economic Report estimated there are 3,369,000 employees in the manufacturing sector. Yong said based on official figures, the percentage of foreign workers in the sector could range from 20 per cent to 35 per cent. However, the numbers quoted by various quarters often seem to be much higher than the approvals given by the International Trade and Industry Ministry.

"FMM believes there is a huge increase in casual foreign workers because outsourcing companies have been bringing in workers without having jobs in hand," said Yong. The outsourcing companies would then offer workers to any company which requires them. "FMM has recommended to the government that the Human Resources Ministry be the only body to approve and monitor the employment of foreign workers." Yong also indicated that the Employment Act 1955 stipulates that where an employer is required to reduce his workforce due to redundancy, the employer must not terminate the services of local employees unless the services of all foreign employees employed in a similar capacity are terminated first. "As the foreign workers are normally under contract, it would be logical for companies not to renew their contracts if there is a slowdown which results in reduction of the labour force," he said.

The other cost-cutting measures expected from the manufacturing sector include increasing productivity of employees through either training or retraining, and intensifying mechanisation and automation. FMM also wants the authorities to reduce the cost of utilities especially energy prices. "The pump prices of petrol and diesel have come down but the manufacturing sector has yet to see similar adjustments to our energy costs," said Yong. Yong said the FMM expected the manufacturing sector to weather the difficulties ahead by exporting, as was the trend seen during the 1998 Asian financial crisis.
The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) said employers should not use this economic uncertainty as an excuse to retrench workers. "I don't agree with the move to retrench workers just because there is a global uncertainty. I don't think it will be fair to the affected workers. If the civil services and public sectors want to cut costs by cutting back on overtime, it would not be as bad as retrenching workers," said Cuepacs president Omar Osman.

He said it was not certain how the global economic crisis would affect Malaysia, so employers should think carefully before they take drastic steps. Omar said Cuepacs did not want to see employers react the way retailers responded to the rising price of oil price by automatically raising the price of goods. "Now that the oil price has dropped, I don't see the price of goods falling when actually they should," he said.

(Source: New Straits Times, 20 October 2008)


Trade Grows by Almost 13% Amidst Global Crisis

Despite the global financial crisis, Malaysia’s total trade grew to RM915.4bil in the first nine months of the year, 12.8% more than the RM811.38bil in the corresponding period last year. And Malaysia’s trade was expected to breach RM1tril by the end of this year, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said. Exports from January to September this year, at RM512.21bil, were 16% higher than in the corresponding period last year, attributed to the widening of markets and further diversification of products. Singapore, the United States, China, Japan and India were the top five export destinations.

“During the first nine months of this year, electrical and electronic products remained our country’s main exports to Asean, making up 31.4% of total exports to the region,” Muhyiddin said in unveiling Malaysia’s trade performance here yesterday. “These figures emphasise the importance of Asean to the nation.” Manufactured products, the largest contributor to exports, grew by 6.4%, mining goods by 53.2%, and agricultural produce by 50.9%.

On the RM1.5bil allocation to attract investors under the RM7bil stimulus package, Muhyiddin said the sum would be an added incentive to draw in big players that could introduce advanced technological products to the local market. “We hope the local private sector would also be involved as they should take advantage of the investment fund,” he added.

(Source: The Star, 6 November 2008)


KL Removes Import Duty on Raw Materials

Malaysia yesterday moved to cut red tape in the trade and investment sectors as it prepares itself for a possible lengthy period of weakness in the global economy. Several pre-emptive measures were announced by the Minister of International Trade and Industry, Tan Sri Muhyiddin Yassin, to ensure trade and investments continue to flow into Malaysia and industries continue to operate. Broadly, the measures included manufacturing sector liberalisation, lowering costs of doing business and facilitation of business operations and start-ups. They included automatic issuance of manufacturing licence; removal of import duty for 48 product lines of raw materials and intermediate goods; extension of approval for representative/ regional offices; ensuring the private sector fully benefits from the Asean Free Trade Area (AFTA) and free trade agreements (FTAs); and enforcement of mandatory standards on imported products to protect the environment and public health and safety.

Other measures touched on the intensification of targeted trade and investment promotion activities; greater participation of the private sector in overseas promotion activities; expansion of matching grants for business start-ups; revision of business licence and fees for businesses; and a review on further liberalisation of the manufacturing-related services sector. Muhyiddin said the government will issue automatic manufacturing licence, starting from December 1 this year, to stimulate foreign and domestic investments in manufacturing and manufacturing-related services. "The licence will be issued once for the lifespan of the business, and the fee has been eliminated effective June 1 2008," he told a news conference after chairing a meeting with trade associations on the measures in Kuala Lumpur yesterday.

This is the first package of measures prepared by the ministry in response to feedback received from trade and industry sectors. Muhyiddin said the ministry would announce more measures after studying the impact of the crisis on industry sub-sectors and getting more input from the private sector. He said that so far this year, the trade and investment figures are still encouraging, with total trade expected to reach RM1 trillion and total investment to be more than last year's. "But the impact on the country's trade and industry sector next year is expected to be bigger. These are immediate steps taken to ensure that businesses, especially small- and medium-scale enterprises (SMEs), and the inflow of investment are not badly affected."

Muhyiddin also said that the ministry had decided to lift the ban on exports of scrap metal, effective within a week, as requested by industry representatives during the meeting. "We will also discuss their request with the Finance Ministry and Bank Negara Malaysia to ease the burden on borrowers, especially the SMEs, such as a loan repayment moratorium during this difficult time," he said. On how much it would cost the government to remove the import duties, Muhyiddin said the ministry had not worked out the amount, but it would be substantial. Currently, the import duty on raw materials and intermediate goods range between five and 30 per cent.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Yong Poh Kon, meanwhile, said that manufacturing companies in sectors like footwear, aluminium and steel, were experiencing lower export orders but not to the extent of having to close down businesses. There has not been any retrenchment from the global slowdown, but companies are taking steps such as reducing overtime, he said when met by reporters later.

Malaysian International Chamber of Commerce and Industry (MICCI) executive director Stewart Forbes said the government measures would help industry to remain competitive in the face of declining orders and demand.

(Source: New Straits Times, 15 November 2008)


Member News

Pewter Jelly Mould to the Rescue

First launched in Malaysia in 2006, Royal Selangor’s designer jelly mould once again comes to the forefront during the Pink October month to help raise awareness and funds for the Breast Cancer Welfare Association in Malaysia. Designed by British designer Nick Munro, the mountain-inspired conical-shaped jelly mould is a novel idea that revisits an old tradition with a modern twist and draws attention to the versatility, lustrous sheen and the functionality of Royal Selangor’s designs.

General manager for Royal Selangor International, Yong Yoon Li said they found out about Nick Munro’s involvement in raising funds for breast cancer in Britain while working with the designer on new designs for Royal Selangor. “We felt that breast cancer was a cause that needed a helping hand in Malaysia and we saw the opportunity to do something about it in the best way we know how.” A graduate of engineering and design from The Royal College of Art and Imperial College of Science and Technology London, Munro became a household name in design when he was awarded the title of UK Young Entrepreneur of the Year 1987 for ingeniously turning bedsprings into eggcups. Since then, Munro has worked with a variety of materials to create astounding collections of furniture, glassware, ceramics and pewterware for the home and office.

Presented in a hot pink box, the pewter jelly mould comes with recipes contributed by chefs from different parts of the world. In addition to recipes from chefs Ken Hoh, Chris Bauer, Yvan Cadiou and Jean-Pierre Wybauw, new recipes from Emmanuel Stroobant and Singapore pastry chef Audrey Tan of Freshly Baked by Le Bijoux are now included with the jelly mould.

To further support the breast cancer cause, Royal Selangor in collaboration with Delicious café and GLAM magazine organised four jelly-making workshops on Oct 28, 29,30 and 31 led by well-known personalities including the patron of Breast Cancer Welfare Association Puan Sri Akmal Abdul Salam, Datin Natasha Liana Hudson and Chief Editor of GLAM magazine Wirda Adnan. Proceeds from the workshop will be contributed to the Breast Cancer Welfare Association’s Reach to Recovery programme, a global breast cancer support network founded by the International Union Against Cancer. The programme is built on the underlying principle that a breast cancer survivor, through her time and experience, can help and guide another woman facing the same challenges.

(Source: The Star, 10 November 2008)


Royal Selangor Strikes Gold at Popai Awards

Royal Selangor recently received a gold award at the European Point of Purchase Advertising International (Popai) Awards 2008 for its Veuve Clicquot Prestige Champagne Cooler. World-renowned luxury brand Veuve Clicquot Ponsardin engaged Royal Selangor, along with Argentinean designer and sculptor Pablo Reinoso, to design the champagne cooler, alongside other merchandise. The European Popai Awards offer producers, manufacturers, publishers or designers of merchandising displays, the opportunity to showcase their work. The awards are bestowed on the year’s best achievements in point of purchase (POP) materials, POP information, commercial architecture, store layout, merchandising and interactive communication.

More than 150 judges, major advertisers and distributors are involved in the scoring process, which takes into account the aesthetic attractiveness and design; manufacturing quality; originality and innovation; communication and image; adaptation to the product; adaptation to the sales channel; technical design and general impact and effectiveness.

The Popai win in the "Beverage – Service Units" category is the latest addition to the string of international awards that Royal Selangor has won. In 2002, the Royal Selangor wine celebration funnel created history when it won not one but three international design awards – a Red Dot Award from Germany’s Design Zentrum, an IDEA2002 Bronze from the Industrial Designers Society of America, and a Good Design Award 2002 from the Japan Industrial Design Promotion Organisation. "The collaboration with Veuve Clicquot Ponsardin and Pablo Reinoso is one of the many examples of Royal Selangor pushing back the boundaries of design and reaching even higher standards. We are honoured to receive such an award," said Royal Selangor International general manager Yong Yoon Li.

To come up with the design for the Veuve Clicquot Prestige Champagne Cooler, Royal Selangor and Pablo Reinoso examined the ritual of serving champagne at the table, in particular, that of the Veuve Clicquot vintages. What they noted is that it always ended with a wet napkin, dripping bottles and soaked labels. The trick was to come up with a champagne ice bucket that would be able to cool a bottle and keep it cool at the table, but without the bottle being in contact with water. This resulted in a visually pleasing and functional design, with simple dimensions (17cm width, 16.8cm depth and 13.8cm height). The Veuve Clicquot Prestige Champagne Cooler allows the label on the bottle to remain visible while serving and the champagne to be served at tasting temperature, all without wetting the bottle.

Royal Selangor has also developed other pewter-based products for Veuve Clicquot Ponsardin such as a Prestige Flutes Cooler and Prestige Vasque. The Prestige Flutes Cooler is an elegant stand that holds three glasses while the Prestige Vasque is a sleek ice bucket with enough space to hold several bottles of champagne or wine.

(Source: The Sun, 16 December 2008)