Roadshow 2016 - PowerPoint PPT Presentation

Loading...

PPT – Roadshow 2016 PowerPoint presentation | free to download - id: 81c6b8-OTFmN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Roadshow 2016

Description:

Title: Slide 1 Author: Sujata Last modified by: KB Lim Created Date: 6/20/2012 8:23:02 AM Document presentation format: On-screen Show (4:3) Other titles – PowerPoint PPT presentation

Number of Views:48
Avg rating:3.0/5.0
Slides: 95
Provided by: Suj81
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Roadshow 2016


1
ADDRESSING ISSUES FACED BY THE INDUSTRY
  • Roadshow 2016

2
Contents
  • Labour and Foreign Workers Issues
  • Reinvestment Allowance
  • Energy Issues
  • Export Strategies
  • Caring for the Environment

3
Labour and Foreign Workers
  • MPMA actively participated and contributed to the
    Trade Associations Joint Meetings on Foreign
    Workers and Human Resources Issues, led by the
    Associated Chinese Chamber of Commerce and
    Industries Malaysia (ACCCIM), Federation of
    Malaysian Manufacturers (FMM) and the Malaysian
    Employers Federation (MEF).

4
Labour and Foreign Workers
  • Amongst the issues discussed were
  • 1. Mandatory Online Renewal of Foreign Workers
    Permit through MyEG
  • The Immigration Department issued a notice in May
    2015 that all manual counters would be closed
    permanently on 1 July 2015 with the full
    implementation of Biomedical and eVDR (Visa
    Dengan Rujukan) under Foreign Workers Centralised
    Management System (FWCMS).

5
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • after 1 July 2015, manual counters would only be
    opened for the following services
  • Application to replace foreign workers
  • VDR application for security guards
  • Extension of VDR approval letter.

6
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • In view of the urgency of the matter, ACCCIM
    proposed to submit a joint letter to the
    Director-General of the Immigration Department to
    request for an urgent dialogue on counter
    closure.

7
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • The joint letter, sent out in mid June 2015
    proposed the following
  • Trade associations had expressed that the online
    submissions should be made as a choice besides
    the Manual Counter Service, as the online
    submissions are too rigid and cannot cater for
    all instances and circumstances.

8
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • Trade Associations were against the proposed
    closing of the Manual Counter Service. Should the
    online service be proven efficient and is able to
    fully cater to the needs of all situations and
    circumstances, users will automatically migrate
    and use the online service. Until then, Trade
    Associations are strongly of the view that the
    Manual Counter Service must remain open.

9
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  1. When the migration to online applications have
    been successfully proven, then perhaps the
    closing of the manual counter service can then be
    contemplated but with a caveat that a Manual HELP
    DESK be made available to assist applications
    with special needs/ circumstances which are
    beyond the capability of the online system to
    process.

10
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  1. All outsourcing including MyEG, ISC, OSC, VLN,
    etc, are sub-contracted by the Immigration
    Department and no additional fees should be
    imposed on the public. Furthermore, outsourcing
    should only be done to make avail such processes
    online and to improve the efficiency and
    convenience of the public. The processes
    outsourced for ISC, OSC and VLN should only be
    undertaken if they are to enable and provide
    online service.

11
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  1. The current ISC, OSC and VLN outsourcing be
    disbanded immediately unless such outsourcing is
    to enable online submissions and improve the
    efficiency and are cost effective to both the
    Immigration Department as well as to the
    applicants. 

12
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  1. The current outsourcing requiring physical
    presence, travelling to only limited centres do
    not improve the procedures and cause the
    applicant much expense and time to travel long
    distance just to submit their applications and
    passports, etc. Outsourcing should only be done
    if the outsourced processes are online and no
    additional costs are imposed and no additional
    expenses need to be expended by the applicants.

13
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • 1 July 2015 - With the full implementation of
    BioMedical and VDR modules under the FWCMS, the
    Immigration Department closed all manual counters
    permanently. The counter service will only be
    available for "serious cases".

14
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • 9 September 2015 - It was reported in The Star
    Newspaper that since the closure of the counter
    service, employers who faced delays in the MyEG
    online permit renewal were left in the lurch.
    Employers facing the delays had written to both
    MyEG and Ministry of Home Affairs but had not
    received any response from them.

15
Meeting at ACCCIM
16
Labour and Foreign Workers
  • 100 Increase in Levy on Foreign Worker
  • 30 January 2016 - the Government announced a 100
    increase on foreign worker levy for the
    manufacturing sector effective February 2016.

17
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • This was indeed a very detrimental announcement
    by the government and left all sectors of the
    countrys businesses in a state of shock.
  • 2 February 2016 - In view of the severe
    repercussions of the drastic levy increase, a
    total of 55 trade associations, including MPMA,
    held a Press Conference at the ACCCIM.

18
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • 2 February 2016 - Immediately after the press
    conference, the 55 associations submitted a joint
    memorandum to five relevant Government Ministries
    requesting for the levy hike to be shelved and
    replaced by a comprehensive move to legalise the
    existing illegal FW in Malaysia. (Revenue from
    rehiring program more than sufficient to meet the
    recalibrated budget shortfall of RM2.5 billion)

19
Labour and Foreign Workers 1. Mandatory Online
Renewal of Foreign Worker Permit through MyEG
  • 2 February 2016 - MyEG without due notice nor
    reason shut down all its services until further
    notice. A joint press statement urging MyEG to
    immediately reopen its services to renew visa of
    legal FW, was drafted.

20
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • 5 February 2016 - the Government announced that
    it will implement a programme effective 15
    February to legalise the illegal foreign workers
    in Malaysia.
  • 6 February 2016 - the Government announced that
    the proposed levy hike is put on hold
  • 16 February 2016 - meeting with YB Dato Sri
    Richard Riot Anak Jaem, Minister of Human
    Resources. The levy hike issue, rehiring of
    undocumented FW and 1.5 million FW from
    Bangladesh were the key issues raised during the
    meetings

21
News coverage
22
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • 16 February 2016 - the Director-General of the
    Ministry of Home Affairs met with the trade
    associations to discuss the proposed levy hike.
    All associations present took the stand that the
    increase must be deferred. The Ministry, however,
    informed that it is unlikely that the levy hike
    would be deferred further.
  • Trade associations were requested to propose an
    acceptable increase/fee to the Government for
    consideration on or before 1 March 2106.
  • 22 Feb 2016 - A joint meeting was organised by
    MEF.

23
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • Trade associations unanimously agreed that
  • There shouldnt be any increase in levy
  • Levy shouldnt be treated as part of the revenue
    for the Government. It should be ploughed back to
    the industry for automation and training
    purposes.
  • A proper procedure should be implemented to
    register and legalise the estimated three over
    million illegal foreign workers in the country.
    The legalisation and re-hiring process should be
    able to generate more than RM2.5 billion for the
    Government.

24
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • Only foreign workers without work permit or have
    their work permit expired are allowed to be
    registered. Foreign workers who run-away from
    their existing employers are not allowed to be
    registered. This will prevent the foreign workers
    from jumping ship from one industry to another.
    Foreign workers with criminal records will be not
    be employed and must be deported.

25
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • The re-hiring exercises be conducted in a
    transparent, fair, equitable, practical and cost
    effective manner. In this regard, the
    charges/fees in respect of the rehiring exercise
    must be lowered to a level that will attract the
    employees/employers to register and make the
    exercise a success.
  • 29 February 2016 - The memorandum was submitted
    to the Ministry of Home Affairs.

26
Labour and Foreign Workers 2. 100 Increase in
Levy on Foreign Worker
  • 18 March 2016 The ministry of Home Affairs
    announced that the levy for the manufacturing
    sector would be increased by RM600 from RM1,250
    to RM1,850 (about 50 increase) for Peninsular
    Malaysia, with immediate effect.

27
Press Conference at ACCCIM on 2 February 2016
28
Labour and Foreign Workers 3. Suspension on
intake of Foreign Workers
  • Suspension on intake of Foreign Workers
  • 12 March 2016 - The Deputy Prime Minister
    announced that the Cabinet has decided to freeze
    the intake of all new FWs, let alone the intake
    to 1.5 million Bangladeshi workers. Employers in
    industries who required foreign workers would
    have to legalise existing foreigners in the
    country who are without work permits or whose
    permits that have expired already.

29
Labour and Foreign Workers 3. Suspension on
intake of Foreign Workers
  • Suspension on intake of Foreign Workers
  • The DPM also announced that the Rehiring and
    Relocation Programme, which started on 15
    February will end 30 June instead of 31 December
    2016.
  • 12 April 2016 - A joint meeting was held at
    ACCCIM and decided that a joint memorandum be
    submitted to the relevant ministries appealing
    for lifting of the suspension.

30
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • High Fee for Registration of Illegal Foreign
    Workers through MyEG
  • 4 September 2015 - It was reported that MyEG had
    been appointed as one of the companies to
    register illegal foreign workers in the country,
    targeted to start in mid October 2015. A proposed
    fee of RM5,800 per FW will be charged. The fee
    will include handling charges by MyEG and other
    cost such as insurance, FOMEMA, FWCS, Data Card,
    Levy, Visa and processing fees.

31
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • 12 October 2015 - A joint meeting was held in
    ACCCIM to discuss the above.
  • November 2015 - A joint memorandum was sent to
    the Ministry of Home Affairs (KDN), proposing the
    following
  • Registration fee to revert to RM700 as in the 6P
    instead of RM5,800 as it is too costly for
    employers to bear.

32
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • Close the loop-holes in the previous 6P.
    Illegal FWs should exclude the category of FW who
    are legal but switched employers thus deemed them
    illegal. They should not be allowed to
    re-register but should be deported immediately to
    discourage them from switching employers.
  •  
  •  
  •  

33
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • The registration of illegal FW to legal should be
    opened to more companies. The award to only three
    companies to undertake the registration of
    illegal FWs to legal created a semi-monopoly
    environment which is unhealthy. More companies
    throughout the country should be allowed to
    tender for the registration which will also make
    it more convenient for employers through the
    country to do the registration.
  •  
  •  

34
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • Enforcement - When all illegal FWs are
    subsequently registered as legal, the issue of
    illegal FWs should not arise. Stringent
    enforcement is necessary to ensure that all FWs
    are legal at source. Hence, the procedures for
    applying for FWs should be transparent, easy to
    follow with known criteria and guidelines without
    ambiguities and affordable (RM700 and not
    RM5,800). The system itself should encourage
    employers to embrace it and not deter them.
  •  
  •  

35
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • 15 February 2016 - the Immigration Department
    announced that employers need to pay RM1,200 per
    FW to register illegal foreign workers through
    online services. The RM1,200 were set by the
    vendors which include RM800 for registration and
    RM400 for administrative. The total cost to
    register an illegal FW will range from RM1,395 to
    RM3,485 including fines for immigration offences,
    levy, visa processing fees and work permit.

36
Labour and Foreign Workers 4. High Fee for
Registration of Illegal Foreign Workers through
MyEG
  • A joint statement was drafted requesting that
    MOHR and KDN ensure that these exercises are
    conducted in a transparent, fair, equitable,
    practical and cost effective manner.
  • 22 February 2016 - The joint meeting organised by
    MEF agreed that, amongst others, the rehiring
    program must not be cost prohibitive, and the
    lessons learnt in the 6P exercise not be
    repeated.

37
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • Employment Insurance Scheme
  • 15 June 2015 - MPMA participated at the joint
    meeting in FMM to review the proposed Employment
    Insurance Scheme (Skim Insurans Pekerja/SIP).

38
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • Trade associations unanimously agreed that the
    SIP should not be implemented for the following
    reasons
  • The scheme will encourage "bad employers" not to
    pay compensation to retrenched workers. It is
    not fair for other employers to subsidise the
    "bad employers".
  • Other than the employers and employees,
    Government should also contribute to the scheme.
  •  

39
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • There is already a provision for layoff/
    termination benefits under the Employment Act.
    As such, there is no necessity for the two scheme
    to co-exist. If the SIP is introduced, the
    layoff/termination benefit scheme should then be
    abolished.

40
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • The cost benefits are very little. Both employers
    and employees will be paying huge amount of funds
    but benefiting only to a small group of
    employees. The fact is the unemployment rate is
    only 3 or 400,000 workers which is technically
    under a full employment. The 3 unemployment
    represents mostly the fresh graduates waiting for
    jobs and the workers that are shifting from one
    job to another. As such, it is not cost viable
    to manage a fund which will only benefit a small
    group of employees, the cost of managing the fund
    eventually may exceed the total pay-outs to
    unemployed/retrenched workers.

41
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • The scheme does not cover all categories of
    workers, those with monthly salary above RM4,000
    per month are excluded.
  • The existing funding schemes like SOCSO and HRDF
    should be extended to cover similar benefits of
    the proposed SIP.
  • MPMA fully supported the views (i - vi) tabled
    above by FMM and agreed for FMM to handle the SIP
    with the Government.

42
Labour and Foreign Workers 5. Employment
Insurance Scheme
  • Trade Associations agreed that
  • Employers should object the SIP.
  • Should the Government insists on the SIP, MEF
    would propose an alternative savings scheme. The
    scheme would involve contributions from the
    employers, employees and Government. If the
    participating company does not retrench any
    employees, the portion of the employer's
    contribution would be refunded to the company.

43
Labour and Foreign Workers 6. Review of Minimum
Wage
  • 6. Review of Minimum Wage
  • 9 December 2015 - MPMA participated in a high
    level meeting in MEF, which was held to collate
    comments and suggestions to be tabled for
    discussion at the NWCC.

44
Labour and Foreign Workers 6. Review of Minimum
Wage
  • MPMA suggested that
  • The implementation of the increase in minimum
    wage be deferred by 12 months effective 1 July
    2017 because
  • SMEs have just implemented MW policy (RM900) for
    foreign workers on January 2014, they are still
    struggling to adjust to the substantial labour
    cost increase.
  • The domestic oriented manufacturers are facing
    the impact of GST implementation, higher raw
    material costs due to weakening ringgit, toll
    increase, etc.

45
Labour and Foreign Workers 6. Review of Minimum
Wage
  • There are several additional costs for employing
    foreign workers which are cost additional burden
    to the manufacturers, including the Visa Luar
    Negeri (VLN) fee, foreign workers passport
    handling fee imposed by the handling company,
    Immigration Security Clearance fee and FORMEMA
    health screening fee.

46
Labour and Foreign Workers 6. Review of Minimum
Wage
  • Allowances which are linked to wage including
    shift, attendance and Sunday allowances be
    included into the definition of minimum wages.
  • Foreign workers levy payment to be deducted from
    the workers monthly wages.
  • Transport and accommodation allowances should
    also be included in foreign workers minimum wage
    as per current practice.

47
Reinvestment Allowance
  • MPMA has been actively pursuing this issue with
    the Government since 2008 by requesting the
    Government to extend the RA claimable period from
    15 years to 30 years or longer.
  • Over the last two years, MPMA frequently
    requested other trade associations including FMM
    and ACCCIM to also pursue the same.
  • However, the Government was not in favour of our
    proposal because they viewed it as a revenue
    forgone in terms of company income tax.

48
Chronology of Events on Reinvestment Allowance
Dates Description
15 June 2015 During the 2016 National Budget Consultation Session, MPMA submitted several issues including the extension of the RA.
23 Sep 2015 Met with Finance Minister II, the Minister supported the idea and requested MPMA to work with MITI on the detailed proposal.
30 Sep 2015 MPMA was invited to present the RA proposal to MITI. MPMA used two hypothetical examples to show that there is potentially a positive impact on Governments tax revenue as a result of extending the RA.
2 Oct 2015 MPMA presented the RA proposal at the Pre-Council Meeting for Petrochemicals Focus Group, under the National Export Council.
15 Oct 2015 MPMA made another presentation at the Council Meeting for Petrochemicals Focus Group, chaired by YB Dato Sri Abdul Wahid Omar, Minister in the Prime Ministers Department.
49
Effects of the RA on Governments Tax
Revenue Scenario 1 Assuming 10 company profits
and 1.4 times multiplier effect (cont next
slide)
Rate RM million Tax Foregone by the Government (RM million) Income Tax p.a Generated by the Government (RM million)
Tax Effect at the Government Level
Capital investment on plant and machinery (Note 1) 50
RA rate 60 30
Tax foregone from RA claim 24 7.20 7.20
 
Tax Effect at the Company Level
Sales generated per annum (Note 2) 125
Profit before tax (Note 3) 10 12.50
Income tax rate YA 2016 24 3.00 3.00
Employees income (Note 4) 10
Income tax on employees income 5 0.50 0.50
 
50
Effects of the RA on Governments Tax
Revenue Scenario 1 Assuming 10 company profits
and 1.4 times multiplier effect
Tax Effect Based on Multiplier Effect
Supply chain - multiplier effect of 1.4 times for manufacturing (Note 5) 1.4
Sales generated (125 x 1.4) 175
Profit before tax 10 17
Income tax rate YA 2016 24 4.10 4.10
Employees income (10 x 1.4) 14
Income tax on employees income 5 0.7 0.70
 

Total effect on Year 1 7.20 8.30
Investment should last 10 years 7.20 83.00
Total effects for 10 years as additional tax
advantage to the Government RM83.00 million -
RM7.2 million RM75.8 million
51
Notes
  1. Assuming new capital investment is RM50 million.
  2. Anticipated sales to be generated from the RM50
    million new investment based on a factor of 2.5
    times ( ie RM50 million X 2.5) , which is
    reasonable given that sales to capital investment
    can be as high as a factor of 4 times.
  3. The estimated profit before tax margin of 10 is
    achievable based on the actual results announced
    by several member companies which are listed on
    Bursa Malaysia. These announcements are attached
    herewith as Appendix 1. The results from these
    listed companies are used as examples as these
    results are readily available from Bursa
    Malaysia.
  4. Anticipated total employees' income from the
    additional employees engaged in the RM 50 million
    business expansion. These new staff would draw
    income which would require them to pay personal
    income tax.
  5. The manufacturing sector has a multiplier effect
    of 1.4 times on other sectors which support the
    manufacturing sector.

52
Appendix 1 Actual results announced by several
plastics companies which are listed on Bursa
Malaysia.
Item Company Six Months Current Year To Date Results (2015) Revenue RM000 Profit Before Tax RM000 Profit
1.1 BP Plastics 30.6.15 134,046 9,857 7.3
1.2 Daibochi Plastic 30.6.15 175,830 13,376 7.6
1.3 SCGM Bhd 31.7.15 29,637 5,936 20.0
1.4 SKP Resources 30.6.15 243,062 23,544 9.7
1.5 SLP resources 30.6.15 83,944 14,687 17.5
1.6 Thong Guan Inds. 30.6.15 334,017 12,297 3.7
1.7 Tomypak 30.6.15 101,889 15,499 15.2
1.8 V.S. Industry 30.7.15 1,936,885 159,686 8.2
Source Bursa Malaysia
53
Effects of the RA on Governments Tax
Revenue Scenario 2 Assuming 7 company profits
and 1.2 times multiplier effect (cont next
slide)
Rate RM million Tax Foregone by the Government (RM million) Income Tax p.a Generated by the Government (RM million)
Tax Effect at the Government Level
Capital investment on plant and machinery (Note 1) 50
RA rate 60 30
Tax foregone from RA claim 24 7.20 7.20
 
Tax Effect at the Company Level
Sales generated per annum (Note 2) 125
Profit before tax (Note 3) 7 8.75
Income tax rate YA 2016 24 2.10 2.10
 
Employees income (Note 4) 10
Income tax on employees income 5 0.50 0.50
54
Effects of the RA on Governments Tax
Revenue Scenario 2 Assuming 7 company profits
and 1.2 times multiplier effect
 
Tax Effect Based on Multiplier Effect
Supply chain - multiplier effect of 1.2 times (Note 5) 1.2
Sales generated (125 x 1.2) 150
Profit before tax 7 10.50
Income tax rate YA 2016 24 2.52 2.52
Employees income (10 x 1.2) (Note 6) 12
Income tax on employees income 5 0.60 0.60

Total effect on Year 1 7.20 5.72
Investment should last 10 years 7.20 57.20
Total effects for 10 years as additional tax
advantage to the Government RM57.2 million -
RM7.2 million RM50 million
55
Notes
  • Assuming new capital investment is RM50 million.
  • Anticipated annual sales of RM125 million to be
    generated from the RM50 million new investment
    based on a factor of 2.5 times ( ie RM50 million
    X 2.5), which is reasonable given that sales to
    capital investment can be as high as a factor of
    4 times.
  • Assuming a more conservative before tax margin of
    7 is achievable based on the actual results
    announced by several member companies which are
    listed on Bursa Malaysia. These announcements are
    attached herewith as Appendix 1. The results from
    these listed companies are used as examples as
    these results are readily available from Bursa
    Malaysia.
  • Anticipated total employees' income from the
    additional employees engaged in the RM50 million
    business expansion. These new staff would draw
    income which would require them to pay personal
    income tax.
  • A more conservative multiplier effect of 1.2 for
    manufacturing.
  • 6. Number of employees and income are reduced
    proportionately based on a lower multiplier
    effect.

56
Chronology of Events on Reinvestment Allowance
Dates Description
15 Oct 2015 The Minister was supportive of MPMA's RA proposal and he had requested MPMA to provide some empirical evidence to show that the two scenarios presented by MPMA are practical/achievable. He wanted to see some real examples of the RA effects on companys sales and profits, and the subsequent income tax paid to the Government is actually higher than the RA tax exempt/forgone by the Government. MPMA has compiled the data from eight public listed companies, and submitted the relevant data to the Minister.
57
Chronology of Events on Reinvestment Allowance
Dates Description
23 Oct 2015 During the National Budget presentation, the Prime Minister cum Minister of Finance announced that for companies in the manufacturing and agriculture sectors, whose RA incentive has expired, a new incentive, that is, Special Reinvestment Allowance, will be provided for year of assessment 2016 to 2018. The rate of claim is similar to the existing RA criteria. MPMA would continue to follow up with the relevant authorities to push for a longer period in due course.
58
Meeting with Minister of Finance II on 23
September 2015
59
  • Energy Issue

60
Energy Issues
Issue MPMAs Proposal
17 March 2015 EPU informed that The Enhanced Time of Use (ETOU) Tariff Scheme be extended to Tariff D and Tariff E users including Saturdays, Sundays and Public Holidays effective from 1 January 2017. The gradual phasing out of the Special Industrial Tariff (SIT) by 2017, has been extended to 2020.
5 Aug 2015 MPMA submitted a letter to EPU requesting the Energy Commission and TNB to consider the following   i. Tariff D - TNB to expedite the process of installing new meters so that the ETOU Scheme could be implemented at an earlier date by June 2016 or earlier.
61
Energy Issues
Issue MPMAs Proposal
5 Aug 2015 Tariff E - Given that Tariff E users have already installed electricity meter to measure the energy usage during the off-peak period, the same meter can be modified to be used for the ETOU Scheme. The process would be much faster and arising therefrom, MPMA is of the view that implementing the ETOU at an earlier date for Tariff E users would not be an issue for TNB. MPMA therefore appealed for the earlier implementation of the ETOU Scheme by 1 January 2016.
62
Energy Issues
Issue MPMAs Proposal
27 Aug 2015 EPU informed that TNB will be able to bring forward the implementation date of the ETOU to 1 January 2016 for Tariff E. But for Tariff D, the implementation date will remain as 1 January 2017. EPU also informed that the Government has agreed to extend the monthly 2.25 sen per kilowatt electricity bill rebate for another six months from July to December 2015 for Peninsular Malaysia and Sabah. The rebate was given in-line with the Government's Imbalance Cost Pass-Through policy.
63
Energy Issues
Issue MPMAs Proposal
4 Nov 2015 The Energy Commission (EC) organised a briefing on the implementation of Enhance Time-of-Used (EToU) Scheme and the gradual phasing out of the Special Industrial Tariff (SIT) Scheme. The Chief Executive Officer of EC explained that the EToU Scheme would not be implemented for Tariff D users in January 2016 because special meters would need to be installed to capture the actual energy usage during the peak, off-peak and mid-peak periods, and TNB would require sufficient time to adjust its billing systems since majority of its customers are in the D category.
64
Energy Issues
Issue MPMAs Proposal
17 Dec 2015 A half day seminar was organised Petaling Jaya, to brief members on the ETOU and SIT Schemes
14 Jan 2016 The seminar was repeated in Penang for the Northern Branch members
21 Jan 2016 The seminar was repeated in JB for the Johor Branch members
65
Energy Issue
  • The ETOU is an optional scheme. Members who are
    in Tariff E should study in detail whether this
    optional scheme will help you to reduce your
    electricity bill.
  • Members who are in Tariff D category will
    definitely benefit from the ETOU, which will be
    implemented effective 1 January 2017. This is
    because the Tariff D users are currently not
    entitled for any off-peak rate.

66
Export Strategies
  • The Petrochemicals Focus Group was formed under
    the National Export Council, chaired by YB Dato
    Sri Abdul Wahid Omar, Minister in the Prime
    Ministers Department.
  • The main purpose is to identify strategies to
    promote the exports of petrochemical products,
    including plastics. MPMA is a member of the Focus
    Group.

67
Export Strategies
  • The 1st meeting was held on 15 October 2015.
    Arising from the meeting, the Minister had
    requested for a tutorial session for him and
    his team to have a better understanding of the
    plastics industry.
  • The two-hour session was successfully held on 16
    November 2015. MPMA presented the three plastics
    manufacturing processes, i.e. Injection Moulding,
    Blow Moulding and Film Extrusion

68
Export Strategies
  • The presentations coverage included technology,
    products, market and how the sector supports the
    other industries. Some videos, product samples
    and pictures were also shown. The presentations
    emphasised on the complexity of processes aim to
    drive home the point on the necessity for the
    plastics industry to continually engage in
    investment on machineries and training of
    manpower to stay on the cutting edge.

69
Export Strategies
  • The Minister was very impressed with all the
    presentations and at the end of the session he
    had garnered a wide spectrum of insights to the
    plastics industry. He was amazed at the endless
    streams of industries supported by the plastics
    industry - an eye-opener that plastics has a lot
    of value-add to the whole chain of the economy
    and plastics is a very integrated part to the
    petrochemicals industry.

70
Export Strategies
  • The outcome of the information-sharing session
    was very positive with initiatives coming from
    the Minister in the following areas
  • Reinvestment Allowance (RA)
  • The Minister agreed to look into the possibility
    of further extending the RA period in the near
    future. His support did helped as the Government
    had later announced the RA extension for another
    three years from 2016-2018.

71
Export Strategies
  • Talent Development Programme (TDP)
  • The Minister recognised the need for continuous
    training and technology knowledge upgrading in
    execution of the various manufacturing processes.
    MPMA briefed the Minister on the disbursement of
    RM3 million grant over the three years programme
    (2013-15) of which the Minister was very
    impressed with MPMAs accountability, integrity
    and training achievements. There is an indication
    of a potential additional funding for the next
    phase of the TDP.

72
Export Strategies
  • MPMA will revisit the TDP and will draft Phase II
    of the programme for submission to the Minister
    for consideration for additional funding.
  • The Focus Group has requested MPMA to prepare the
    Key Performance Index (KPI) for the Plastics
    Industry for 2016-2020 and the Proposed Action
    Plans to Achieve the Set KPI

73
Environment
  • Advocacy
  • With increasing State Governments wanting to ban
    polystyrene (PS) and plastic bags usage, the need
    to educate and re-set the mind-set of the public
    is pertinent that PS and plastic bags are not the
    culprit to environment deterioration but
    littering and waste management is the cause.
  • MPMA will also seek the good office of the
    Minister for a tutorial session on Advocacy with
    the relevant Government Authority.

74
Environment
  • The first advocacy session was successfully held
    on 1 December 2015 with YB Datuk Seri Wan
    Junaidi, Tuanku Jaafar, Minister of Natural
    Resources and Environment (MNRE).
  • The next meeting is with the Ministry of Domestic
    Trade, Co-operatives and Consumerism (MDTCC)
    scheduled to take place on 26 April 2016.

75
Environment
  • MPMA had compiled the following list of Ministers
    for YB Dato' Sri Abdul Wahid Omars office to
    arrange the advocacy sessions
  • Minister of Local Government and Housing (deal
    with Solid Waste)
  • Minister of Domestic Trade and Consumerism (deals
    with supermarkets)
  • Green Technology
  • Minister of Science, Technology and Information
  • Minister of Education
  • Minister of Higher Education
  • Minister of Health

76
Petrochemicals Focus Group Meeting on 15 October
2015
77
Tutorial Session on 16 November 2015
78
Meeting with YB. Datuk Wira Hj. Md. Yunos bin
Husin on 8 March 2016
The meeting with YB Datuk Wira Hj Md Yunos bin
Husin, member of the Malacca State EXCO was held
to address the recent ban on plastic bags and
polystyrene food containers which was in effect
in Malacca since 1 January 2016. The State
encouraged the usage of biodegradable bags and
packaging materials instead. Besides sharing
facts on plastics including Life Cycle Assessment
(LCA) of the different types of carriers bags,
MPMAs President, Datuk Lim Kok Boon also
stressed that the real issue to be tackled are
littering and waste management.
79
Environment

80
(No Transcript)
81
(No Transcript)
82
MPMAs responses through media
83
Litter Free Ramadan 2015 View our video on
YouTube https//youtu.be/CHPQ1VvHeUg
84
(No Transcript)
85
(No Transcript)
86
News Coverage
China Press Daily
87
Litter Free Thaipusam 2016 View our video on
YouTube https//www.youtube.com/watch?vXddE-pZSC
Uk
88
(No Transcript)
89
News Coverage Pre-campaign
The Malaysian Times
The Star
Bernama
90
News Coverage Pre-campaign
Tamil Nesan
China Press
91
News Coverage Post-campaign
The Malaysian Times
92
Litter Free Chingay 2016 View our video on
YouTube https//www.youtube.com/watch?v5-DYtgLLc
gg
93
(No Transcript)
94
Thank You
About PowerShow.com