JUNE 2023 NEWSLETTER IN THIS EDITION Page 2 IT Security first Water Issues in Penang Page 3 Frepenca & Sustainability Page 4 Update of convenors
2 IT SECURITY FIRST FREPENCA was informed by several companies in Penang & wants to share this information proactively to all our members, that recently industrial production companies in Penang were hacked, partly IT systems were blocked/ shut down, some factories had to switch back to manual operation and some had no more e-mail / internal communication access. The hackers in return asked for certain amount of cash to be paid in order to release all systems again. After looking into details, the main common way to hack was "Social engineering", meaning the hackers went into the systems using stolen login/passwords of company employees/ individuals - mostly those with higher IT /system access. So we advise all companies to look into their line of defense especially on individual login information's, perform additional inhouse security trainings / password trainings & fostering the danger of individual passwords being stolen by external individuals. Additional security measures like multi factor authorization (MFA) is advised. WATER ISSUE PENANG Frepenca approached the MITI minister YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz in December last year to highlight the economic impact of frequent water interruptions in Penang . We have held a number of engagements with the state water company, PBAPP, to highlight our concerns over ‘single point of failure’ risks in the water supply system and the persistently low water pressure experienced by FREPENCA members in Batu Kawan. Despite reassurances on the level of redundancy and contingency planning, we continue to experience interruptions. Some of the root-causes of the instability of water supply go beyond the scope of this state water company: this is actually a challenge which requires a more regional view of water sources and demand growth. With this in mind, the committee had a face to face meeting with the NCER, as the Federal Government body with regional responsibility, to raise our concerns and request a regional/national strategy to maintain Malaysia’s competitiveness in South East Asia. The NCER CEO assured usthat the water issue will be highlighted in their regular meetings with central government and promised to come back to FREPENCA with an improved water supply strategy by end June. We hope to be able to share this plan with members within the next few months.
3 FREPENCA & SUSTAINABILITY FREPENCA participated in a recent ‘Roundtable on ESG and Sustainability in the Supply Chain’ organized by Penang Green Council together with the UN Global Compact Network Malaysia & Brunei. At the meeting we highlighted that compliance with customer ESG expectations is becoming a very important factor in winning new business. Many customers now expect their ESG standards to be proliferated through the supply chain and suppliers are struggling to understand what to do and what ROI is expected. We stated that companies in Penang are part of the global green supply chain as they produce components for green and low -carbon technologies, and therefore should be recognized as a green manufacturing base for the world – Penang is driving the global green agenda with products & technology to improve global energy efficiency. We discussed that helping local companies develop their ESG strategy and to measure the results of ESG initiatives is urgently required. Penang Green Council & this UN team could play an important role by defining standards and using existing channels (like the Responsible Business Alliance) to audit and measure in a way that international customers can appreciate.
4 CONVENORS‘ UPDATE FIZ II • Infrastructure Convenor PBA letter referred (ref#:PBAPP/#PD/PJ/MAIN/1/09/19(1) – 900mm water pipe installation along Jalan Mayang Pasir from Jun 2022 to May 2023). A report was made to PBA (PBAreport:230503000330) regarding the unsafe road condition resulted from the pipe installation works. PBA acknowledge received of the complaint and forwarded the case to respective department for further action. CUSTOMS · Jan 3rd, Announcing to members on Customs Announcement on NEW ADMINISTRATION 2023 & NEW DISPOSAL FORM 2023 in application to Customs · Jan 3rd, Penang Customs - Private Sector Dialogue 2022. Issues & resolutions. · Jan 27th, Low Value Goods (LVG) - Presentation Slides & summary of entire Low Value Goods circulated to members. LVG FIZ & LMW NO EXEMPTION ALLOWED. · Feb 13th, Gazette announcements Amendments of Customs Act, Free Zone Act, SST Act, enter into operation on Feb 13th. · Feb 22nd, SST Implementation Technical Issues Committee Meeting No. 1_2023. Issues & resolutions. · Feb 23rd, CUSTOMS HQ PUTRAJAYA NOTIFICATION, BUDGET 2023 circulated to members. · Mar 3rd, Low Value Goods DEFERMENT TO LATER DATE, NOT GOING EFFECTIVE APRIL 1ST, 2023. · Mar 10th, Customs Standing Order no. 58 (amendment) on repair treatment, solved. Customs HQ Putrajaya approved using FIZ/LMW Bank Guarantee. · Mar 10th, FREPENCA Customs Compliance WhatsApp Group established. · Mar 21st, Many kinds of HS, Customs Classification with Community of Customs Compliance · May 8th, SMARTGPB SYSTEM for LMW factories in Penang State - Awareness & engagement. · May 9th, CUSTOMS AEO Programme - Implementation of the National Agenda. AEO talk and presentation. · May 16th, CUSTOMS-PRIVATE NEGOTIATION PANEL MEETING NO. 1_2023. Issues & resolutions.
5 SECURITY January – meeting at FIZ Police Service Center (key presentation – “Sexual Harassment at The Workplace”) 2.2) February – meeting at B Braun Medicals (key presentation – “C-TPAT Awareness for Employees”) 2.3) March – meeting at FIZ Police Service Center (key presentation – “FREPENCA AGM Updates) 2.4) April – no meeting because of Muslim fasting month 2.5) May – meeting at FIZ Police Service Center (key presentation – “CCTV – The Hidden Truth” 2.6) June – plan to have an audience with the new Chief Police Officer of Penang to introduce the Security Convenor group and how it’s charter / activities LIST OF CONVENORS’ E-MAIL ADDRESSES 1) Bayan Lepas FIZ 1: Mr. C. W. Phoon of ams OSRAM at [email protected]; 2) Bayan Lepas FIZ 2: Mr. Song Chee Ming and assisted by En. Yazid Mohd Yusoff, both of B. Braun at [email protected] and [email protected] respectively; 3) Bayan Lepas FIZ 3: To be appointed; 4) Bayan Lepas FIZ 4: Mr. Tan Kah Siang of Globetronics at [email protected]; 5) Bayan Lepas Technoplex: En. Neil Ramdzie bin Zakaria of Motorola Solutions at [email protected]; 6) Batu Kawan: Mr. Ooi Shing Tat of Flextronics Technology (Penang) at [email protected]; 7) Mainland Companies: To be appointed; 8) Environment, Health & Safety: En. Basri Umar of Globetronics at [email protected]; 9) Customs: Mr. Yip Hon Keat of Brady Technology at [email protected]; 10) Security: Mr. James Mohan of TF-AMD at [email protected]; 11) Human Resources: En. Mohamed Anwar of Motorola Solutions at [email protected]; 12) IT: Mr. Teoh Chee Hoe of Motorola Solutions at [email protected].