FOR nearly five decades, the manufacturing sector has been Penang’s economic backbone, making up 44.7% of its commercial activity in 2015 after the colonial-era free-port status was removed in 1969 by the federal government.
Backed by the state’s second chief minister Tun Dr Lim Chong Eu’s vision in the 1970s to turn a mostly agriculture-based Bayan Lepas into a sprawling industrial hub, Penang island soon became known as the country’s Silicon Valley. It also became an electronic and electrical (E&E) powerhouse supported by multinational corporations (MNCs) such as Intel Corp, Osram Licht AG, B Braun Melsungen AG, Robert Bosch GmbH, Agilent Technologies Inc, Jabil Inc and Dell Inc.
Read More
KUALA LUMPUR: The human resources ministry is raising minimum wage levels next year, according to minister Datuk Seri Dr Richard Riot Jaem.
Bernama reported yesterday the National Wages Consultative Council had started making plans to review the Minimum Wages Order 2016 to determine new rates for Peninsular Malaysia, Sabah, Sarawak and Labuan, before tabling it to the Cabinet.
This would be the second time in three years that minimum wage levels in the country have been revised. In July 2016, The minimum salary was raised to RM1,000 from RM900 in Peninsular Malaysia, and to RM920 from RM800 in Sabah, Sarawak and Labuan.
Read More
The Annual Penang Dialogue just got bigger! This year instead of just a lunch, AMCHAM added a half day program to have some vital conversations on topical issues with our members. Dr. Shardul Phadnis, Research Director at Malaysia Institute for Supply Chain Innovation (MISI) and Mr MK Koh, Director, Global Electronics Industry at IBM kicked off the morning by sharing new research and applications for IoT & AI looking to help us with this new buzz around Industry 4.0. A great discussion was around IoT, AI & Supply Chains. Their years of experience and expertise helped members to understand what Industry 4.0 is all about especially for the E&E industry, identifying opportunities for an organization and how to apply or deploy them.
The second session brought together some of the pillars of the Northern Corridor: Dr. Hari Narayanan, Managing Director at Motorola Solutions Malaysia, KH Ooi, Vice President, Technology & Manufacturing Group and General Manager, Penang (Malaysia) Assembly & Test Operations at Intel Corporation and KC Chan, Vice President of Global Procurement & Materials at Keysight moderated by Fabian Boegershausen, Manager at Solidiance. Their task at this session was to uncover how they were all “Remaining Competitive from Penang”.
It was an interesting discussion on how the companies in Penang are impacting global operations and whether it will still be relevant over the next 10 and 20 years. What’s their story on innovation and how do they deliver on advanced capabilities. Each panelist shared their respective journey in Malaysia and on the opportunities and challenges that lie ahead but also about those that must be tackled today.
Following the morning forum, the day’s program continued with AMCHAM hosting both the Y.A.B. Tuan Lim Guan Eng, Penang Chief Minister and Her Excellency Kamala Shirin Lakhdhir, U.S. Ambassador to Malaysia.
In delivering her remarks, Ambassador Lakhdhir, started by thanking AMCHAM for the work done to smooth and ease business operations for our members. Although Ambassador Lakhdhir has only been in the country for about 10 months, she has already visited many U.S. based companies in Penang, including Western Digital, Mattel, Motorola, Keysight, and many more.
In her speech, Ambassador Lakhdhir emphasized the role of AMCHAM and its’ existence supporting American business interest, saying,“It’s important for U.S. companies to understand AMCHAM’s role and to leverage on it. The more information AMCHAM has from its members, provides the Chamber a better understanding of what’s going on within each industry.” this, in turn, empowers the Chamber’s effectiveness.
She also recognized the work of the Malaysian American Electronics Industry (MAEI) Committee, especially Dato’ S.H. Wong for his contribution and continuing support of the E&E industry. One of the most highly regarded people in the Malaysian E&E industry, he brings to AMCHAM the full weight of 29 years in the industry. He was appointed to PEMUDAH, a special task force to address public-private delivery services and is also leading a key initiative by the government in developing a roadmap for E&E industry through the E&E Productivity Nexus EEPN, through the Malaysian Productivity Council (MPC).
Y.A.B. Tuan Lim Guan Eng begin his speech by thanking all the U.S. investors in Penang. Between 2008-2016, total investment from U.S. investors equaled 24% making the U.S. the largest FDI contributor to the Penang economy. More recently, in September 2017, California based Broadcom launched their RM59 million Global Distribution Centre in Batu Kawan Industrial Park, and announced investments of RM10 billion over the next 10 years in Penang.
According to projections, more U.S. investments are expected in 2018. Tuan Lim Guan Eng emphasized that “it’s not the number of investors that matters but it’s the quality of investors that would actually drive the economy.”
AMCHAM would like to thank all our sponsors – Gold Sponsor: First Solar Malaysia for their continued support; Silver Sponsors: Abbott Laboratories, Hewlett Packard, International SOS, Integrated Device Technology, Keysight and Motorola, and Corporate Table: Nationgate.
AMCHAM would also like to thank the U.S. Embassy and the Chief Minister’s office for their support and, all the participants, for making this event a success.
Somehow the approaching new year – yes it is that time- has put everything on hyperdrive. AMCHAM has a flurry of events to get you out of the office at the same time thrusting you well into the festive mode. Make a note of our Thanksgiving Lunch on Thursday, 16 November and come and be apart of a special day where we will also acknowledge the great CSR work you are all doing.
Mobility in the workforce is fast becoming a feature of today’s business model. Come and understand what Malaysia is doing to participate in this to ensure it stays a strong partner in globalization by attending the lunch with our new Director General in Immigration Department of Malaysia, Dato’ Seri Hj Mustafar bin Hj Ali on 25 October. Last, but by no means least, hang-in-there for the Withholding Tax updates. We believe they will release the official news/ guidelines imminently.
Projects by the Malaysian government and its partners, such as AECOM, ensure the capital and its surrounding suburbs become even better places to live and work.
AECOM is one of the world’s largest engineering firms with a reputation and global reach that is unrivalled in the industry. With a pool of 87,000 employees, this Fortune 500 firm designs, builds, finances and operates (known as the DBFO model) infrastructure assets for governments, businesses and organisations in more than 150 countries. With a client base of 25,000, AECOM made revenue of about US$17.4 billion last year.
P&G Malaysia Opens Library for Indigenous children
Over 200 Children from Tanjung Sepat’s Orang Asli community now have access to a new education space as part of P&G Malaysia’s lineup of activities during its 30th Anniversary
P&G Malaysia, in partnership with NGO The Budimas Charitable Foundation (Budimas), recently opened a Children’s library which will act as both a community center and an education space for the 200 children of Tanjung Sepat’s Orang Asli (indigenous) community. This announcement is a key milestone in a series of community-based initiatives which P&G has organized so far throughout the year in celebration of their 30th Anniversary in Malaysia.
With the new center, P&G and Budimas aims to provide a comfortable and collaborative space for the children to come to after school and cultivate a habit of reading and revise their studies and prepare for school examinations in the comfort of their own village. As part of their efforts, P&G employees raised funds and organized a book donation drive which resulted in over RM80,000 (almost $20,000 USD) raised and 2,000 books being donated to Budimas to build the center. The company also matched this amount to build the library.
Ong Yuh Hwang, Managing Director of P&G Malaysia, Singapore, Brunei and Global Development Markets Asia said “As we celebrate our 30th anniversary in Malaysia, it was only fitting that we marked this milestone by uplifting and empowering the communities around us. Our partnership with Budimas has been inspiring as we share the belief that it is important to nurture the love of reading, curiosity and collaboration in our future leaders. We have worked together throughout the year to ensure we have provided the children with a conducive space that will fulfill the community’s educational needs. The library marks the first phase of our long-term partnership as P&G will be continuously coming back to help the students with their studies.”
Prior to the opening of the ‘P&G & Budimas Children’s Library’, 40 employees travelled to the village to set up the library as well as put their creativity to the test with hand-crafted decorations. They then stayed on to get to know the children, who all participated in a series of fun and educational activities such as traditional weaving, tree handprint art, storytelling sessions, arts and crafts and a fun photo booth bookmark exchange program. All the children also received P&G schoolbags and stationaries as a parting gift.
“We are most grateful for this partnership with P&G. Their efforts in raising donations, collecting books and setting up the library have helped us realize Budimas’ seventh Children’s Library. The Budimas Children’s Library project was initiated three years ago as part of our aim to provide education opportunities to underprivileged children in Malaysia by establishing educational facilities like this library, in rural and poor villages in our country,” said Y.M Tunku Yahaya @ Yahya Bin Tunku Tan Sri Abdullah, Treasurer of The Budimas Charitable Foundation. “The foundation hopes that via this effort, we are able to help the children of Tanjung Sepat continue putting an importance towards education and contribute to the creation of a literate future generation,” he added.
The launch was also attended by Düden Freeman, Economic Officer of the United States Embassy of Malaysia, Norliza Mohammad Basiron, Director of Department of Orang Asli Development, Selangor & Federal Territory, as well as several Board of Trustees members of The Budimas Charitable Foundation.
P&G Malaysia has been prioritizing citizenship efforts and have been ensuring the communities where they operate remain strong and thriving. In 2017, we launched ‘Daripada Ibu Kepada Ibu’ in partnership with Food Aid Foundation during the festive Hari Raya period to encourage Malaysians to help ease the burden of single mothers all over the country by making donations of non-perishable goods. In addition to Orang Asli children and single mothers, P&G Malaysia also helped flood victims and Malaysians with no access to clean drinking water via the Children’s Safe Drinking Water initiative through their long-term partnership with the National Disaster Management Agency (NADMA) and iM4U.
