OCTOBER– DECEMBER 2010
Malaysian Tin Products
NEWSLETTER
MANAGEMENT COMMITTEE
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PRESIDENT MR. MAKOTO HARA (ALTERNATE – MR. KONG KEAN BENG) NIHON SUPERIOR (M) SDN BHD
VICE-PRESIDENT MR. CHEN TIEN YUE (ALTERNATE – Ms. KEONG JOO DEE) ROYAL SELANGOR INTERNATIONAL SDN BHD
HON. SECRETARY MR. C.S. LIM METAL RECLAMATION (IND) SDN BHD
TREASURER MR. MAMORU KAWASAKI(ALTERNATE – MR. LOH YOON SOON) SELAYANG SOLDER SDN BHD
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Letters to the Editor are
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to further improve our editorial content. Please address your letters to: The Editor The Malaysian Tin Products Newsletter P O Box 12560 50782 KUALA LUMPUR. |
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COMMITTEE MEMBERS MR. JASON LEE HENKEL (MALAYSIA) SDN BHD
EN. AB. PATAH MOHD PERUSAHAAN SADUR TIMAH MALAYSIA (PERSTIMA) BHD MR. SENJU (M) SDN BHD |
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SECRETARIAT ADDRESS The Malaysian Tin Products Manufacturers’ Association (MTPMA) 8th Floor, West Block Wisma Selangor Dredging 142-C, Jalan Ampang 50450 KUALA LUMPUR. |
EDITORIAL SUB-COMMITTEEMR. MAKOTO HARA Mr. Kong Kean Beng MR. CHEN TIEN YUE MR. C.S. LIM MR. MAMORU KAWASAKI MR. LOH YOON SOON
MR.
JASON LEE TN. HAJI MUHAMAD NOR MUHAMAD EN. FAIZUL AZRI AZIZAN
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Tel: 03
– 21616171 Fax: 03
– 21616179 Email: mtpmasec@mtpma.org.my The Malaysian Tin Products Newsletter is published
quarterly by the Malaysian Tin Products Manufacturers’ Association (MTPMA).
The opinion and statements expressed in the Newsletter are not necessarily
those of the MTPMA or the Editorial Sub-Committee and neither endorsement nor
confirmation are intended or implied. |
Dear Members,
The year 2010 can be considered a good year for many businesses in Malaysia as
the country’s economy appeared to have stabilised. During its first two
quarters, Malaysia’s economy was robust registering a gross domestic product
(GDP) growth of 10.1 and 8.9 percent respectively, compared to a contraction of
6.2 and 3.9 percent in their corresponding period of 2009. That impressive
growth in the first half of 2010 was driven mainly by restocking activities in
the manufacturing sector.
However, as these global restocking activities moderated coupled with reduced
demand from developed economies, such as the EU and US, Malaysia as a result
posted a lower GDP growth of 5.3 percent in the third quarter. With this lower
demand particularly for electrical and electronic products (E & E), our
country’s E&E sub-sector, which traditionally is highly sensitive to the global
electronics cycle, expanded at a lower pace of 7.0 per cent during this quarter
compared with 28.1 per cent in the second quarter of 2010.
The fourth quarter result of Malaysia’s economy has yet to be released by Bank
Negara. How it will fare will be a good indicator on the outlook of the
country’s economy in 2011. The Government however has projected a GDP growth of
over 6.0 percent for Malaysia for 2011 as it believes the country’s 2010 fourth
quarter economic performance will meet earlier expectations.
For 2011, many analysts are anticipating Malaysia’s GDP growth to record a level
higher than its projected long term trend of 4.5 to 5 percent per annum. In the
near term, Malaysia’s growth trajectory will hinge on two major factors, namely
the global economic development and the strength of private sector consumption
in supporting domestic demand.
On a current matter that concerns us all is the rising trend in tin prices. The
metal’s price has been steadily rising in the recent past and is now hovering
just below the USD30,000 per tonne level. Analysts are anticipating that prices
of the metal will rise further, but our hope is the rise will be gradual.
Extreme fluctuations in the tin metal price will certainly be detrimental not
only to ourselves as product manufacturers but also to our end consumers who
will have to bear the full brunt of such cost increases.
To conclude this brief note, may I on behalf of the Management Committee wish
all Association members a Happy and Prosperous New Year.
Makoto Hara
PRESIDENT
Recycling Mulled for Electronic Products
A new regulation requiring electronic manufacturers and retailers to take back
discarded products they have sold to the public for recycling is being
considered. Natural Resources and Environment Minister Datuk Seri Douglas Uggah
Embas said the regulation was in the discussion stage and feedback from the
private sector was sought. “We have to have a collect-back, recycling regulation
that is acceptable and workable. The emphasis is on workable. The industry has
to be consulted on this,” Uggah told reporters here after launching an e-waste
programme yesterday. Asked when the regulation could be introduced, Uggah said
the ministry had not set a time frame. “All I can say is we want it ready as
soon as possible,” he said.
Asked about possible resistance from the private sector on the regulation due to
added cost, Uggah said he felt the private sector in Malaysia was relatively
“well educated”. He cited the no-plastic campaign initiative of some retailers.
“Some of them have already started collecting centres by themselves, under their
own corporate social responsibility efforts. The momentum is building.” On other
challenges, Uggah said the smuggling of waste containing precious metals into
Malaysia was still a concern. “I think that has lessened. But if you remember, a
few years ago, we found a lot of smuggling. The electronic waste is booming. In
India, the volume increased by 500% in recent years.”
Uggah said waste was becoming more valuable, with progress on recycling
techniques. One tonne of computer chips, he added, contained about 225 grams of
gold. “You can understand why electronic waste smuggling happens. On the other
hand, I hope local entrepreneurs will take up the challenge of making more money
from waste.”
(Source: The Star, 25 October 2010)
Mida Sees Rise in E&E Investments
Malaysian Investment Development Authority (Mida) expects total investment in
the electronics and electrical (E&E) sector this year to exceed RM5bil from
about RM4.7bil in 2009. Mida chairman Tan Sri Sulaiman Mahbob said total
investment for the first nine months of this year was RM4.3bil, of which about
RM3.8bil was from overseas. “The total investment for manufacturing for the
January-September period is RM21bil. We expect the figure to reach about RM32bil
by the end of 2010, which is about the same as in 2009,” he said after launching
a seminar cum business networking session for the electronics industry in
Malaysia yesterday. He added that the top investors were from the United States,
Germany, Japan, and Taiwan.
Mida was negotiating to bring in fresh investments for solar power, wireless
communication, cloud computing and light-emitting diodes industries next year,
Sulaiman said. “For the first nine months of this year, the E&E industry
exported an estimated RM187.4bil or 39.5% of the total export of manufactured
goods,” he said. Sulaiman said the E&E sector was expected to raise the gross
national income by RM53bil to RM90bil by 2020 and provide an additional 157,000
jobs, both medium and high skilled. On the proposed corporatisation of Mida,
Sulaiman said the plan was to enable Mida to approve and obtain faster
incentives for foreign companies wanting to invest in Malaysia. “Under the new
corporatised body, we also look at providing promotional activities for the
services sector, which do not include the financial and utilities services,” he
said.
On the shortage of skilled labour in the country, Sulaiman said: “We are always
ready to help bring in skilled labour from overseas. We can also tap skilled
labour from local universities, collaborate with them and help revise their
curriculum to enable them to produce more skilled labour,” he said.
(Source: The Star, 30 November 2010)
Electronics Companies Upbeat About Q1 2011
Semiconductor automated equipment and printed circuit board manufacturers now
have a clearer view of the first quarter of 2011, as enquiries and orders are
starting to come in, following a slow second half of 2010. Pentamaster Corp Bhd
executive chairman C.B. Chuah said the group had received orders and enquiries
from its semiconductor customers recently for the first quarter of 2011. “Based
on feedback, I believe we can expect the first quarter of 2011 to be better than
the first quarter of 2010. The orders are for our semiconductor automated test
equipment used for handling integrated circuits and dies, which are long
life-cycle products, used in consumer electronic and light emitting diodes (LEDs)
products. The orders and enquiries are from customers in Europe, the United
States and Japan. By the first week of January 2011, we will know how many per
cent of the enquiries would be translated into purchasing orders,” he added.
The group's automated equipment for the semiconductor and LED segment generates
about 55% of the group's revenue. Chuah said the fourth quarter of 2010 was
slow, as there was a tendency to consolidate inventory and exercise caution on
ordering, lest additional spending eroded margins. “We expect orders for our
semiconductor automated equipment in the fourth quarter of 2010 to go down by
double digits,” he said.
AT Systemisation managing director L.L. Beh said the group had received orders
and enquiries for January and February 2011 following a slow final quarter of
2010. “The orders are for our material test handling equipment used to handle
components used in telecommunication and mobile computing products. We are also
getting orders for the precision machining parts used in hard disk drive
equipment,” he said. The group sells its equipment to multinational corporations
in Malaysia, Thailand, and China. Beh said the group was now exploring to sell
more semiconductor automated equipment for China manufacturers of non-branded
consumer electronic devices, which were priced affordably for the ordinary wage
earner in China. “This is a huge market, as the ordinary worker in China cannot
afford to buy branded products. We have customers in this segment now and aim to
expand in this market,” Beh said. AT Systemisation semiconductor business
generates about 80% of the group's revenue.
Meanwhile, the World Semiconductor Trade Statistics (WSTS) recently forecasts
that the semiconductor market will grow by 4.5% to US$313.8bil, following an
estimated 32.7% increase to US$300bil in 2010. The industry is now expected to
top $331.5 billion in 2012, with a three-year compound annual growth rate of
13.6% from 2009 to 2012, according to the report. GUH Holdings Bhd managing
director Datuk Kenneth H'ng said that orders and enquiries for the group's
printed circuit board (PCB) products were starting to come in now for early next
year. “Based on customers' feedback, we believe the group's performance in the
first quarter of 2011 would be the same as in the corresponding period in 2010.
We are getting a lot of enquiries for our higher end double-sided PCB products,”
he said.
The first quarter of 2010 the group posted about RM70mil in revenue. There was a
slight slow-down in orders in the second half of 2010, as there was a correction
due to high inventory levels, H'ng said. “We will invest about RM20mil to
increase the production capacity of our double-sided printed circuit boards
(PCBs) to 50,000 sq m per month in 2011, up from 40,000 sq m per month in 2010.
We will also maintain the production capacity of single-sided PCBs at 360,000 sq
m per month in 2011. We will be producing between 80% and 90% of our capacity in
2011, which is the same as in 2010,” he said. H'ng said the investment was to
raise the output of higher margin yielding double-sided PCBs and to enable the
group to price these products competitively. GUH's PCBs are used in branded LED
television panels.
(Source: The Star, 13 December 2010)
Economic News
Slower Growth in Q3
Malaysia's economic growth slowed to 5.3% in the third quarter compared to 8.9%
in the second quarter largely on slowing external demand. “Because of external
conditions, we see growth in the second half of this year and that of the first
quarter of 2011 moderating before strengthening in the second half of next
year,” Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said. Nevertheless,
Malaysia was “very likely” to achieve a growth of 6% to 7% for the entire year
and this would be supported mainly by domestic demand, the governor said at a
press conference to announce the figures here yesterday. “It is important for us
to ensure that domestic demand remains resilient,” she said.
Earlier yesterday, Prime Minister Datuk Seri Najib Tun Razak said the country's
GDP growth for the entire year would be beyond 6%. For the third quarter,
domestic spending increased by 5% helped by a sustained expansion in both
private consumption and capital spending. The manufacturing sector grew by 7.5%
against 16% in the second quarter, reflecting the slower growth in external
demand while the services sector expanded by 5.4% compared with 7.3% in the
quarter before. Gross foreign direct investment, meanwhile, grew to RM8.9bil
compared with RM5.3bil in the quarter before while direct investment abroad by
local companies increased to RM4.9bil from RM3.1bil in the previous quarter.
Headline inflation rate increased to 1.9% on an annual basis on higher consumer
prices mainly due to the rise in sugar price. “We do not see inflation as a
threat,” Zeti said.
She said Bank Negara's current overnight policy rate (OPR) of 2.75% was very
supportive of economic activity. The policy makers will meet in January to
decide on the OPR. The OPR, the benchmark for banks' lending rates, was left
unchanged in the past two meetings after it was raised in March to reduce the
risk of financial imbalance if rates remained too low for too long. Central
banks across the region had slashed interest rates in the past couple of years
to spur economic growth in the wake of the global economic recession. Meanwhile,
Zeti said the strength of the ringgit had not affected the growth of the
country. “We always encourage the economic sectors to build buffers during good
times, so that they can ride it out during challenging times,” she said.
The ringgit has gained more than 10% this year against the greenback, trading at
3.1033 yesterday as at press time. “Any intervention operation will be to ensure
there are orderly conditions in the foreign-exchange market,” Zeti said. The
central bank would not “at any point in time” try to influence the underlying
trend of the currency, she added. Responding to a question on threats of
continuous inflow of hot money attracted to the region including Malaysia for
its brighter economic outlook, Zeti said Malaysia would maintain rigorous
surveillance to this end. “At this point in time, conditions are manageable and
we are not considering any sort of restrictive measures, but if the need arises,
we will act collaboratively with other central banks in the region to deal with
any risks to our region,” Zeti said.
She said the country's financial markets were “more matured and developed” now
compared to previously. “And, as such, we are in a much better position to
manage such flows,” she said. Asked on the risks of asset bubbles, Zeti said:
“Right now, we are not seeing the formation of any asset bubbles. We do not see
this as a problem and are well-positioned to take pre-emptive action,” she said.
The 5.3% growth – the slowest in three quarters – is less than the estimate of
5.9% by 15 economists polled by Bloomberg earlier. “It is slightly below
expectations. Nevertheless, it is still in line with the moderating growth trend
across the region,” RAM Holdings chief economist Dr Yeah Kim Leng said. Thailand
also reported the slowest growth in three quarters yesterday at 6.7% while
Indonesia grew by a slower rate of 5.8% in its third quarter against 6.2%
earlier.
(Source: The Star, 23 November 2010)
Member News
Comyn’s Silver Splendour
Comyns recently launched five sets of elegant and eye-catching earrings with
matching pendants. The stunning silver jewellery which are called Ava, Brigitte,
Lauren, Olivia and Rita are suitable for both office and evening wear. Ava
features minimalist iris-circular lines while Lauren has sharp, asymmetrical
spiral curls. Brigitte and Olivia have curvy designs. Rita, meanwhile, has an
elongated and distinct design.
Comyns (M) Sdn Bhd brand manager Jean Chan said the new range was suitable for
women in their late 20s to 50s. She said each piece was made of solid sterling
silver 925. Chan noted that many people had the notion that silver jewellery
tarnished quickly. "If silver jewellery is taken care of well, it gives off a
beautiful glow. My advice would be to wipe your silver jewellery with a silver
care cloth after donning them. A polish is only required if there is a stubborn
stain. Otherwise a wipe will do," added Chan. The earring and pendant sets,
which come with chains, are available at Comyns's retail stores. Prices start
from RM350.
Established in the United Kingdom in 1645, Comyns is one of the oldest and most
prestigious silversmiths in the world. It is famous for bedroom and desk silver,
dressing table pieces and renowned interpretative works, including those of Paul
de-Lamarie, the best-known English silversmith of his generation. The company
was responsible for producing many sterling silver collections for major
retailers around the world. Many of the items are now in the collections of the
great houses of Britain, and in the Victoria and Albert Museum, London. Comyns's
rich legacy includes an archive with more than 35,000 historical moulds, tools,
patterns and drawings. Royal Selangor acquired Comyns in 1993.
(Source: New Straits Times, 22 October 2010)
Perstima Profit Up on Higher Revenue
Perusahaan Sadur Timah Malaysia Bhd (Perstima) announced a 3.72% increase in net
profit to RM21.16mil on the back of a 6.04% growth in revenue to RM216.73mil for
its second quarter ended Sept 30. For the six-month period, net profit was up
49.87% to RM30.3mil while revenue rose 5.2% to RM418.97mil. An interim dividend
of 16 sen less 25% income tax was also declared, payable on Nov 30 to
shareholders registered at the close of business on Nov 19.
(Source: The Star, 3 November 2010)
Shining Heritage
Nothing beats a solitaire diamond. It’s simple yet exquisite. To Selberan,
solitaire diamonds can be more than just a single stone. The jeweller has just
launched its solitaire collection for 2011, called Kaliste and Amara. The two
lines were inspired by Selberan’s archive dating back to the 1970s. Launching a
new take on a solitaire collection is an annual tradition at Selberan.
The brand’s creative director Sun May Foon says: “Selberan is all about heritage
and it is right to bring back old designs. We looked for suitable designs in the
archives. These designs were infused with that current interpretations to make
them contemporary for the women of today. “Selberan’s designs are known to have
stronger lines. They are bolder and chunkier too.” Both Kaliste and Amara, which
are Greek words, have distinctive identities. Kaliste means “the most beautiful”
and Amara means “eternally beautiful”. Kaliste is framed by subtly curving gold
work that rises dramatically from the base of the ring while Amara has curves
that flow from opposing planes and dip towards the centre to accentuate the
diamond, at times making it appear bigger than its original size.
Rings from both lines come with matching pendants and earrings. Kaliste and
Amara look so modern that it’s no wonder the tagline for the collection is
“Modern Vintage”. Kaliste and Amara are also special because of the ideal cut of
the diamonds. An ideal cut reflects more light, making a diamond more brilliant.
They are suitable for special occasions and as engagement and wedding rings.
“The trend in wedding rings is bold designs,” says Sun.
Both lines are available in 18K white gold and prices start from RM4,900. They
are now available at Selberan’s outlets in Suria KLCC, 1 Utama, The Gardens
MidValley. Empire Shopping Gallery and at Royal Selangor Visitor Centre in
Setapak, Kuala Lumpur. Selberan is a member of the Royal Selangor group.
Selberan was developed by European jewellers from Switzerland and Austria in
1973. But today, the brand’s designers are locals. The collections are available
only in the Klang Valley area at the moment.
(Source: New Straits Times, 15 December 2010)
More Than Just Pewter
As you step into Royal Selangor’s biggest flagship store, in Pavilion Kuala
Lumpur, the first thing you’ll notice is its facade covering the two floors.
Called black rock wall, it is inspired by tin ore. The triangular shapes and
pointy edges give depth to the store, giving it a 3-D look. Take a few steps
forward and you will notice the black metal panels which resemble the
scaffolding used at tin mines. The name — Royal Selangor — is placed inside the
panels. Natural light pours in through the glass window panels, adding to the
relaxed atmosphere. At first glance, the design looks modern, straightforward
and very cosy. The combination of black, white, grey and natural wood tones
creates a familiar ambiance.
Royal Selangor Marketing Sdn Bhd general manager Chen Tien Yue says the aim is
to achieve a modern and stylish design while retaining the brand’s strong
heritage. The two-storey structure houses all three brands of the Royal Selangor
Group of Companies, including Selberan and Comyns. Its opening marks the 125th
anniversary of the brand. “We don’t want a store that is intimidating. We want
people to step in and browse around regardless of whether they buy our products
or not,” says Chen. “The black rock wall represents an oversized version of the
tin ore and the scaffolding is one of a kind.”
The motif on the wall is inspired by mengkuang (plaited mat). This decor can be
seen at almost all corners of the store. The external facade uses lots of fibre
optic lights, giving it a glittery look at night. Since it is a pewter company,
it seems right to use pewter as part of the designs. Pewter sheets were used to
create the mengkuang motif, but these are not just normal pewter sheets.
Specially polished, the sheets appear to have two different tones. In reality,
no colour is used at all. The polished pewter sheets is a great idea as it gives
the store a traditional yet modern touch. “We hope to attract the younger crowd
too,” adds Chen.
Other details include wooden display counters for a more vintage feel. Clever
lighting is used to complement these counters. “We decided not to put too many
items on the counters so that customers will not be distracted by too many
choices.” As I ascend the stairs, I am confronted by a spectacular view of
pewter products placed in the open rectangular spaces in the wall. The second
floor is dedicated to Selberan and Comyns products. Selberan is a jewellery
brand for women while Comyns targets silverware enthusiasts.
The Selberan brand, which sports a plum tone, is softer and more feminine.
Comyns products sport walnut veneer and black granite tops. “We chose to house
these two brands as we want people to know that we offer other products besides
pewter. We realised that many are not aware of our accessory line,” says Chen.
In a corner lies a lounge area with a big, cosy purple sofa. This place is
suitable for customers to hold discussions and for the VIPs as well. The new
store is part of Royal Selangor’s expansion plan. In the past four months, the
brand, which was formerly known as Selangor Pewter, has opened new stores in
Shanghai, Beijing, Singapore and Penang.
(Source: New Straits Times, 25 December 2010)