Overview of FMM in 2011/12

Transcription

1 Address by President, YBhg Tan Sri Datuk Yong Poh Kon at the Federation of Malaysian Manufacturers 44 th Annual General Meeting November 29, 2012 Wisma FMM, Kuala Lumpur Council members and members of the FMM let me begin by thanking you for your presence at this morning s 44 th Annual General Meeting to receive the Annual Report and to elect Council Members for the 2012/13 term. I would like to begin this morning s proceedings with a brief economic overview of the economy and highlight the key events and activities that took place in the last financial year. Economic Overview 2. Financial year 2011/2012 witnessed a moderation in global growth amidst heightened downside risks. Growth in real Gross Domestic Product decelerated to 3.9% from 5.2% in 2010, affected by continued structural weaknesses, higher fuel prices and concerns about the fiscal sustainability of some key economies. World trade also declined significantly to 5.9% in 2011 from 12.9% the year before. The softening of the global economic environment continued into the first half of 2012 given the weak demand of developed countries following the Euro crisis and slower US growth. 3. Given the challenging global economic environment in 2011, growth of the Malaysian economy decelerated to 5.1% from 7.2% in Growth has recovered somewhat in the third quarter of this year to 5.2% supported by strong private consumption and investment. 4. The performance of the manufacturing sector mirrored the performance of the world and domestic economy. Manufacturing output expanded at a lower rate of 4.7% in 2011 while growth in manufacturing exports declined to 3.4% in 2011 from 12.6% in Manufacturing output, capacity utilisation and sales have begun to pick up in the second quarter of

2 Overview of FMM in 2011/12 5. In the course of the year, the Federation assisted members to mitigate the challenges of the global and domestic market, to tap on new business opportunities and to expand on trade opportunities arising from FTAs and other bilateral/multilateral trading arrangements. 6. FMM also continued to advocate members interests, improve business facilitation and service members needs. To ensure effectiveness of its representation, FMM collaborated with like-minded interest groups and associations, when appropriate, and launched the FMM-MIER Business Conditions Survey in June 2012 in collaboration with MIER to monitor business conditions and challenges. Advocate Members Interests 7. In advocating the interests of 2,593 members, FMM focussed on improving the business environment and public sector service delivery. We provided views, proposals and recommendations on all major policies and legislation that impacted on the manufacturing sector and continued to call for greater clarity, transparency and predictability in the policy and the legislative environment. We also strongly resisted moves that contributed to increasing the regulatory and operational costs of businesses. 8. In terms of policies, FMM highlighted the serious concerns that industry had on several key human resource policies. FMM objected to the manner with which the minimum wage and the mandatory minimum retirement age for the private sector was to be implemented, unemployment insurance and proposals for the Malaysian Health System as these policies would impact significantly on the costs of doing business. 2

3 9. We also conveyed our concerns to Government about the review of energy prices and price determining mechanisms. In the course of the year, the supply of natural gas was an issue of grave concern as customers were requested to reduce NG consumption due to maintenance and repair works. FMM highlighted the impact of such cutbacks on contractual deliveries and exports and with PEMANDU s intervention, convinced the Government that it would be far less disruptive to maintain NG supply to manufacturers than to reduce gas supply for electricity generation. We have just heard of another issue, that Gas Malaysia has intention to introduce Take or Pay provisions in their coming supply next year, and which our energy committee will be working on a response. 10. Recognising the importance of trade to members, FMM also advocated strongly the need to contain logistics costs and regulate logistics service providers. We highlighted the need to remove non-tariff barriers to trade and support the conclusion of FTAs to expand market access on more favourable terms. We worked closely with Customs to promote the Authorised Economic Operators programme to members to facilitate trading and called for payment of compensation for delays in drawback claims. 11. Policy advocacy was effective as FMM is represented in key public policy making and implementation agencies, including MIDA, MATRADE, EPF, and SOCSO. FMM also co-chairs PEMUDAH at the federal level and in a number of State PEMUDAHs. We are also represented in more than 255 committees and Taskforces at the federal and state levels. 3

4 Service Member s Needs 12. FMM continued to service members needs effectively through its network of offices and regional committees. In addition to setting up the FMM Penang Island Office in February this year, the Federation continued to be active in the Industrial Park Management Committees to resolve infrastructure and utility problems at various locations. 13. FMM also extended company specific services to resolve issues pertaining among others to HR, Customs, licensing and the like. The services of the Royal Malaysian Customs Desk in FMM HQ were extended to FMM Branch Offices in Perak and Kedah this financial year. The FMM HR Advisor continued to provide advice at HR/IR Forums nationwide in addition to handling more than 1600 enquiries either through calls or online. In terms of training FMM Institute organised more than 1200 training programmes that benefitted more than 18,000 trainees. 14. To facilitate members access to information the FMM Net was redesigned and launched in May this year. We also continued to update members through the bi-monthly Business in FMM publication, weekly e-alerts and more than 600 circulars. The 43 rd edition of the FMM Directory was also published and circulated worldwide to promote members products and businesses. Corporate Social Responsibility & Ethical Business 15. Corporate social responsibility remained a commitment by FMM and its members. Various events have been organised to support the activities of charitable organisations as well as to cultivate awareness about safety and preserving the heritage. 4

5 16. In line with FMM s commitment to transparency and integrity, all members of the FMM Council, Branch Committees and Working Committees signed an Integrity Pledge on the Code of Conduct to uphold the highest standards of integrity and accountability and to act according to the core values and guiding principles of FMM. Staff members of the FMM Secretariat also signed a similar pledge this year. 17. During the year the FMM Council also set up a Task Force to review FMM s constitution and propose changes aimed at improving the governance and administration of the Federation going forward. Amongst the changes proposed were clearer rules on the qualifications of members standing for elections to Council, relationship between Council and the various committees including Branch Committees and procedures for voting and elections. We are glad to inform members that the changes were adopted at an EGM held on September 24 th 2012 which are pending Ministerial approval. 18. A detailed report of the activities carried out in the Financial Year 2011/2012 is contained in the FMM Annual Report, together with updates on activities under GS1 Malaysia and our subsidiaries the FMM Institute and FMM Services. Members are encouraged to go through the Report. Conclusion Ladies & Gentlemen 19. We face uncertain times moving forward given the looming developments in the global financial, economic and trading environment. In Europe there is already talk of a triple-dip recession. We need to be prepared to face the challenges of a more difficult trading environment as well as increasing pressures on the cost of doing business. I encourage all FMM members to step up efforts at both automation as well as energy efficiency as wages and energy costs are likely to go up in the coming year given current trends. 5

6 20. In concluding, I seek your continued support for the Federation and its activities. As always, FMM is focused on seeking better ways to add value to your business, advocate your interests and enhance your business and trade opportunities and competitiveness going forward 21. The effectiveness of the Federation in servicing its members was largely due to the dedication of people who commit time and resources to the work of FMM Council, Branch Committees, Working Committees and Industry Groups and the support of the FMM CEO and Secretariat. I would like to record my deep appreciation to each of them for making FMM a respected organisation. 22. I would also like to highlight that many of the outcomes achieved by the Federation would not have been possible without the support of the Government and its agencies. Allow me to conclude on that note and proceed to the main agenda of this morning s Annual General Meeting. 6