Berita MICCI highlights the latest initiatives and advocacy undertaken by the Chamber and its Councils on behalf of MICCI Members. MICCI organised a leaders luncheon talk by Dato’ Sri Dr James Dawos Mamit, Deputy Minister of Natural Resources and Environment titled Climate Change: The Malaysia Agenda in March 2015. The talk was moderated by Dato’ Kok Wee Kiat, Chairman of the Chamber’s Natural Resources and Environment Council who invoked the minister’s views on what Malaysia needs to focus on to ensure a balance between development and the environment. The deputy minister stated that over the years, the rise in temperature due to trapped carbon dioxide and green house gases have affected global climate and more distressingly, the society. He believes that business and industry are key players to ensure sustainability in adopting new environmental policies while affirming that Malaysia is already actively engaged in international efforts to formulate policies based on well-grounded scientific research. Dato’ Sri urged businesses to make positive environmental changes and consider the various repercussions that climate change has on the environment. For further information please contact Ilyani Yusof at [email protected]. BERITA Edition 3/2015 12 June 2015 MICCI C-8-8, Plaza Mont‘ Kiara, No.2 Jalan Kiara, 50480 Kuala Lumpur tel: 03-6201 7708 fax: 03-6201 7705 http://www.micci.com MICCI - The Premier Advocate for the Malaysian Business Community CONTENTS PAGE • Step Up And Make A Change 1 • Tackling Corruption And Bribery 2 • MICCI Engages PEMANDU 2 • MICCI Meets The Deputy Secretary General Of MoHR 3 • NCDs Damaging The Malaysian Economy 3 • MICCI In Session With PEMUDAH 4 • Contacts & Links 5 1 Step Up And Make A Change “The phenomenal economic development that the world is witnessing would exert enormous stress on nature and the environment.” Dato’ Kok Wee Kiat “The pledge to achieve a 40% reduction in carbon emissions intensity (GDP basis) made in Copenhagen and the subsequent UN Framework Convention on Climate Change are but a first step towards reducing the emission of harmful gases and curbing global warming.” Dato’ Sri Dr James Dawos Mamit Dato’ Sri Dr James Dawos flanked by Stewart Forbes, MICCI Executive Director (to his right) and Dato’ Kok Wee Kiat.
Transcript
Berita MICCI highlights the latest initiatives and advocacy undertaken by the Chamber and its Councils on behalf of MICCI Members.
MICCI organised a leaders luncheon talk by Dato’ Sri Dr James Dawos Mamit, Deputy Minister of Natural Resources and Environment titled Climate Change: The Malaysia Agenda in March 2015. The talk was moderated by Dato’ Kok Wee Kiat, Chairman of the Chamber’s Natural Resources and Environment Council who invoked the minister’s views on what Malaysia needs to focus on to ensure a balance between development and the environment.
The deputy minister stated that over the years, the rise in temperature due to trapped carbon dioxide and green house gases have affected global climate and more distressingly, the society. He believes that business and industry are key players to ensure sustainability in adopting new environmental policies while affirming that Malaysia is already actively engaged in international efforts to formulate policies based on well-grounded scientific research.
Dato’ Sri urged businesses to make positive environmental changes and consider the various repercussions that climate change has on the environment.
For further information please contact Ilyani Yusof at [email protected].
BERITAEdition 3/2015 12 June 2015
MICCI C-8-8, Plaza Mont‘ Kiara,
No.2 Jalan Kiara, 50480 Kuala Lumpur
tel: 03-6201 7708 fax: 03-6201 7705
http://www.micci.com
MICCI - The Premier Advocate for the Malaysian Business Community
CONTENTS PAGE
• Step Up And Make A Change 1
• Tackling Corruption And Bribery 2
• MICCI Engages PEMANDU 2
• MICCI Meets The Deputy Secretary General Of MoHR
3
• NCDs Damaging The Malaysian Economy 3
• MICCI In Session With PEMUDAH 4
• Contacts & Links 5
1
Step Up And Make A Change
“The phenomenal economic development that the world is witnessing would exert enormous stress on nature and the environment.” Dato’ Kok Wee Kiat
“The pledge to achieve a 40% reduction in carbon emissions intensity (GDP basis) made in Copenhagen and the subsequent UN Framework Convention on Climate Change are but a first step towards reducing the emission of harmful gases and curbing global warming.”
Dato’ Sri Dr James Dawos Mamit
Dato’ Sri Dr James Dawos flanked by Stewart Forbes, MICCI Executive Director (to his right) and Dato’ Kok Wee Kiat.
MICCI in collaboration with Ethical Alliance organised the 1st Malaysian Anti-Bribery and Corruption Executive Forum in April 2015 at the Kuala Lumpur Convention Centre. The forum drew close to 50 participants and focused on three core sessions in particular, the Foreign Corrupt Practices Act (FCPA) & UK Bribery Act; Who Is Most Exposed to Bribery and Corruption Within an Organisation; and Interpretation of Anti-Corruption Due Diligence.
Featured speakers included Stewart Forbes (Executive Director of MICCI), Jagdeep Kairon (Managing Director of Ethical Alliance), Leas Bachatene (CEO of EthiXbase Pte Ltd), Chang Hong Yun (Partner at Tay & Partners), Koh Kek Hoe (Partner at Lee Hishammuddin Allen & Gledhil), Rajan Mittal (CEO of Metrod Malaysia Berhad), Chuah Yean Ping (Head of Corporate Compliance & Governance of Sime Darby Berhad) and Chin Cheen Foong (Head of Internal Audit of AIA Berhad).
The first session strived to uncover the actual effectiveness of cross border regulations such as FCPA and UK Bribery Act and the practicalities behind implementing and enforcing such legislations while the second session recognised that comprehensive training and education is critical as people in general are the largest risk in contributing towards bribery & corruption. The final session largely drilled into the perception and understanding of due diligence and what it meant to different people across the board.
In conclusion it was widely agreed that in order to elevate and enhance the standards of anti-bribery and corruption compliance, a comprehensive approach to measurable training and education needs to be deployed. This would provide the necessary building blocks to work towards third party awareness and prevention measures.
For further information please contact Kavitha Muthiah at [email protected]
MICCI Engages PEMANDU
MICCI President, Simon Whitelaw and Chris Thiagarajah, Chairman of the Chamber’s Logistics & Infrastructure Council led a MICCI delegation to the Performance Management and Delivery Unit (PEMANDU) in April 2015 with the objective to raise several matters concerning the business community. The delegation was greeted by Dr. Fadhlullah Suhaimi Abdul Malek, Director for NKRA - Improving Rural Development and NKEA - Agriculture & Communications, Content & Infrastructure of PEMANDU and his team.
A few key issues highlighted during the meeting included:
Cost of Doing Business The lack of efficiency and transparency in awarding contracts has led to the increased cost of doing business. The government should firmly look into bureaucratic procedures and address leakages in the overall system.
Hiring Quality Workforce The Chamber consented to assist PEMANDU to study the gap on the demand and supply of both foreign and local workforce that will assist the industry in reducing the over reliance on foreign workers.
Improving Malaysian Ports Infrastructures at Malaysian ports still need to improve in meeting international standards with access facilities and integrated transport systems in poor conditions and lacking in proper coordination. PEMANDU suggested that port operators form a consortium to jointly review the infrastructures and road congestions and submit a proposal to the government to consider privatising the roads leading to the ports.
Concluding the meeting, MICCI agreed to PEMANDU’s request to provide key performance indicators (KPIs) for some of the issues raised that would allow the government and business community to strive towards achieving international standards and expectations.
For further information please contact Chitra Devi at [email protected].
Panel of speakers during one of the sessions
PEMANDU and MICCI representatives in a group photo
A MICCI delegation led by the Chamber’s Human Capital Council Chairman, Dato’ Kamil Noor Ariff met the Deputy Secretary General, Mohd Sahar bin Darusman of the Ministry of Human Resources (MOHR) and his team, in March 2015. The meeting proved a valuable agenda as the Chamber had an opportunity to raise a number of industry concerns:
National Minimum Wages (NMW) MICCI expressed that NMW should be maintained at the current level and linked to productivity, which the NMW Council is still deliberating on the appropriate measures. MoHR informed that though the definition of wages varies between HRDF, SOSCO and the Employment Act, all
companies must follow the NMW Act definition: Minimum Wages = Basic Wage.
Labour Legislation MICCI suggested that the government should strongly consider a comprehensive and holistic review of all labour legislation including the entire arbitration process involving Industrial Relational Department and the Industrial Court, particularly on employer’s ability to exercise fair play by effectively rewarding productive employees and dismissing highly disruptive and non-performing employees. Employment Insurance (EI) The Chamber and business community are united in its objection to the proposed EI scheme. The government has decided that in the best interest of the country, businesses and employers, it would
still practice the existing “Termination and Benefits” rules and if employers are contributing to HRDF, then EI will not be required.
Foreign Workers (FW) Policy Increase of levy should be ploughed back to help the industry finance their initiatives to automate, mechanise, upgrade skills and training. Businesses should be allowed to renew the FW permits directly at the Immigration counters. MoHR stated that they are in agreement, however the government is still reviewing a mechanism to improve the FW policy in accordance to international standards.
GST on HRDF Training It is clear that GST is applicable to HRDF trainings, however MoHR is still reviewing the request for exemption.
Impact of NCDs on Workers Productivity Non-Communicable Diseases (NCDs) or lifestyle diseases such as diabetes, obesity, cancer etc have a negative impact on the Malaysian economy. A joint effort by the private sector and the Government should be embarked to curb this concern.
For further information please contact Chitra Devi at [email protected].
MOHR and MICCI representatives after concluding the meeting
NCDs Damaging the Malaysian Economy
The recent tripartite meeting in KL involving members of the Malaysian National Chamber (NCCIM), US Chamber of Commerce and AMCHAM highlighting the APEC study on the impact of non communicable diseases (NCDs) on the GDPs of several countries made for a fascinating discussion.
The APEC study indicates that in 2010 Malaysia lost over 4% of GDP (>RM11 billion) as a result of NCDs or lifestyle diseases such as diabetes, obesity, cancer etc.
This figure is increasing annually and it is predicted that by 2030 the negative impact on the Malaysian economy will be in the order of 6% of GDP (some RM40 billion).
While much work has been done by the Malaysian MoH and NGOs to draw attention to the issues of lifestyle diseases and general public wellness, there has not been much attention given to the huge impact this problem has on our economy. continued…
MICCI’s recent meeting with the Special Task Force to Facilitate Business (PEMUDAH) in May 2015 provided the Chamber an opportunity to raise two key concerns in relation to the transport sector. The meeting was chaired by Tan Sri Dr. Ali Hamsa and Datuk Seri Saw Choon Boon, Chairman and Co-Chairman of PEMUDAH respectively.
The first issue concerned the need to improve transportation efficiency. In terms of integrated land transport in Malaysia, there is a huge inefficiency related to the number of road trips made per transaction (shipment), which adds to cost, congestions and environmental pollution.
The second issue involved the cost of doing business in East Malaysia. The business communities in East Malaysia have for a long time expressed vigorously about the higher cost of doing business in Sabah and the higher cost of goods generally. Much of this differential in cost is attributed to the additional freight and logistics costs associated with goods produced or landed in Peninsula Malaysia and transshipped to East Malaysia.
While Sabah’s ultimate aim is to secure equality in pricing for goods between East and West Malaysia they have actively argued for the abolition of the Cabotage Policy as a step towards price uniformity.
MICCI feels it would be worthwhile testing the proposition by suspending the Cabotage Policy for a period of 2 to 3 years. This will provide enough time for Sabah to seek additional shipping opportunities and to assess the impact on logistics costs and cost of goods/business in general.
As a result of the meeting, MICCI was invited to sit on the Focus Group on Trading Across Borders (FGTAB) chaired by MITI to work closely with the Ministry of Transport (MOT) on improving transportation efficiency. Furthermore, MOT stated that it would consider lifting the Cabotage Policy for Sabah and Sarawak.
For further information please contact Chitra Devi at [email protected].
BERITA MICCI
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for your further information we recommend…(click title to download)
1. Eleventh Malaysia Plan [8MB]
2. ADB: Global Shock, Risks and Asian Financial Reform [6.3MB]
3. E&Y: Reporting [1.7MB]
4. IMF: Regional Economic Outlook [12.1MB]
5. MPC: Productivity Report 2014/2015 [11MB]
6. WB: World Development Indicators [21.3MB]
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Keep abreast with MICCI’s latest initiatives and activities, including various other happenings around the country…
A number of large companies (foreign and domestic) in Malaysia do invest in the wellness of their staff (paying for gym memberships and the like) but smaller companies as a rule have not recognised the value of investing in staff wellness or the negative impact NCDs have on their businesses.
This needs to change and a joint effort by the private sector and the Government should be undertaken to address this matter. MICCI will be highlighting this issue in ongoing
dialogues with the Government and will work with other interested groups to find ways of mitigating the problem, not merely for the general well being of the rakyat but for the sake of the economy as well.
For further information please contact Chitra Devi at [email protected].
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MICCI Councils & Focus GroupsEconomic Policy & Taxation Council Chair: Kang Beng Hoe (Taxand Malaysia Sdn Bhd) PIC: Wong Hin Wei ([email protected])
Trade & Investment Council Chair: Tay Beng Chai (Tay & Partners) PIC: Wong Hin Wei ([email protected])
Services (CSIM) Council Chair: Ken Pushpanathan (MICPA) PIC: Wong Hin Wei ([email protected])
Natural Resources & Environment Council Chair: Dato’ Kok Wee Kiat (Bata (Malaysia) Sdn Bhd) PIC: Ilyani Yusof ([email protected])
Joint Action Security Council (JASCO) Chair: Rajan Mittal (Metrod Malaysia Sdn Bhd) PIC: Ilyani Yusof ([email protected])
Legal & IP Council Chair: Linda Wang (Zaid Ibrahim & Co) PIC: Ilyani Yusof ([email protected])
Ethics Council Chair: Rajan Mittal (Metrod Malaysia Sdn Bhd) PIC: Ilyani Yusof ([email protected])
Logistics & Infrastructure Council Chair: Chris Thiagarajah (SkyBus Ventures Sdn Bhd) PIC: Chitra Devi ([email protected])
Human Capital Council Chairs: Dato’ Kamil Noor Arif (KASK Holdings Sdn Bhd) & Lokman Baharuddin (ExxonMobil Subsidiaries in Malaysia) PIC: Chitra Devi ([email protected])
