August / September 2023 NEWSLETTER IN THIS EDITION Page 2 Water contingency plan for Penang Frepenca & Customs handholding session Page 3 Factory bus update Official launch of NIMP2023 Page 4 Convenors update Electricity supply issues
2 WATER CONTIGENCY PLAN PENANG On 25th August FREPENCA discussed the water supply issues & the way forward with YAB Tuan Chow Kon Yeow, Chief Minister of Penang. During the discussion, Frepenca highlighted the industrial concerns on the continuous supply and the damage to the industry in case of a water interruption as well as the need to have a faster communication during emergency events. The CM presented to us the PBAPP water contingency plan 2030, which consists of 8 projects from 2023 to 2028, adding another 602 MLD (mio. Liter per day) capacity into the todays 1560 MLD capacity. FREPENCA-CUSTOMS HANDHOLDING FREPENCA hosted the hand-holding & dialog session with the royal customs department of Malaysia on 17th August @ PSCD . This event strengthened the bond between the industry and the customs department as well as giving the possibility to all members to ask questions and address actual needs or issues. FREPENCA expressed a big thank you to the customs department for the good collaboration by Tuan Idrus & team. The discussion was very open & constructive, with the customs officials seeking to understand the barriers to doing business efficiently whilst meeting the requirements of the law. Matters discussed included temporary warehousing, flow of goods through bonded warehouses, temporary imports for equipment repair and other matters which FREPENCA members have recently encountered. A number of follow-up topics were identified and the customs team assured FREPENCA members of their pro-active approach to maximize the ease-of-doing-business.
3 FACTORY BUS PARKING UPDATE In a Meeting held on 28 August 2023 between FREPENCA, FMM, factory bus operators & MBPP, the Councilor stated that MBPP will carry out enforcement operations jointly with PDRM and APAD against the factory buses which park haphazardly in residential neighborhoods on the Penang Island, especially at Paya Terubong, Sungai Ara and Relau areas. In this regard, we advise that factories should check with their respective engaged factory bus operators to ensure that none of their factory buses are parked haphazardly in the residential neighborhoods on the Penang Island in order to avoid unnecessary disruptions to your production lines. OFFICIAL LAUNCH OF NIMP2030 On Friday, 1st September, YAB DATO’ SERI ANWAR IBRAHIM, Prime Minister of Malaysia officially launched the NIMP203 (New Industry Masterplan 2030). Extract of the whole speech, which can be found in the link below The New Industrial Master Plan 2030 (or NIMP 2030) is a key component of Ekonomi MADANI as it will support the realization of economic reforms. It will revitalize the manufacturing sector to ensure Malaysia remains resilient amidst growing challenges and megatrends. The NIMP is designed to drive Malaysia’s trajectory as a global leader in industrial development, extend the domestic linkages to create wealth across the nation as well as strengthen its position in the global value chain. This Plan is timely to expedite the transformation of industries in Malaysia, aligning them with the country’s vision. SPEECH BY PM ANWAR FOR THE LAUNCH OF THE NEW INDUSTRIAL MASTER PLAN 2030 (NIMP 2030) (pmo.gov.my)
4 Customs Convenor Aug 24th: ESG “KNOWESG” OUTREACH PROGRAMME BY THE MINISTRY MITI. Presentation slides circular to members Successful FREPENCA- CUSTOMS HAND HOLDING CONFERENCE AUG 17th. Several issues resolved with Customs treatment approved. New members add into WhatsApp Group Customs Community Aug 8th: Update on StoDS (SST update & Digital Tax update) & Voluntary Disclosure Program circular to members STA 2010 Strategic Trade (Strategic Items) List 2023 effective 1st Aug 2023 circular to members Aug 1st Customs-Private Sector Dialogue official minutes circular to members Electricity Supply Issues Members in FIZ Phase 1 & 3 have reported regular power events that have damaged equipment and caused downtime of production resulting in missed customer deliveries. An initial meeting with TNB acknowledged there had been recent issues, and we questioned TNB’s level of investment in maintenance/renewal of their infrastructure. A follow-up meeting is planned very soon. Power quality issues affect many of us and managing the situation requires attention from all parties. TNB provides an overview of the situation here: https://www.tnb.com.my/commercial-industrial/power-quality FREPENCA members are recommended to ensure new facilities and equipment are specified to SEMI standard F47 which is designed to ensure a standard level of resilience to semiconductor equipment. This standard is a useful basis for all electronically-controlled systems and equipment. CONVENORS UPDATE