2015AL.pdf - Malaysian Rubber Council (MRC)

ANNUAL REPORT 2015 1

CONTENTS

02 FOREWORD BY CHAIRMAN

03 STATEMENT BY CEO

04 BOARD OF TRUSTEES

05 Chapter 1MREPC TODAY

06 Chapter 2THE YEAR IN REVIEW

08 Chapter 3A YEAR OF CELEBRATION

10 Chapter 4ENHANCING MARKET ACCESS

17 Chapter 5PROVIDING MARKET INFORMATION

22 Chapter 6CAPACITY BUILDING AND NETWORKING ACTIVITIES

26 Chapter 7SUMMARY OF FINANCES

27 Chapter 8THE WAY FORWARD

2 ANNUAL REPORT 2015

I am indeed pleased to write a foreword for the MREPC 2015 Annual Report.

This report provides an overview of the various activities organised by the Malaysian Rubber Export promotion Council (MREPC) and also the achievements of the industry in exporting Malaysia’s rubber products. The year 2015 was an important milestone in the history of the Council and the rubber products industry, as MREPC celebrated its 15th Anniversary.

The year 2015 also witnessed another stellar performance in Malaysia’s export of rubber products. Total exports of rubber products registered double digit growth of 18.6% to reach RM17.99 billion in 2015 compared with RM15.17 billion a year ago. This increase in export earnings from rubber products can be attributed to increase in the exports of both the latex goods and dry rubber product sector. While it is true that the sharp increase in export value in 2015 was aided by the decline in the value of the Malaysian ringgit vis-à-vis other currencies, the impressive performance of the rubber product industry was also the result of increased investment as well as intensive marketing and promotional efforts by both the industry and relevant export promotion agencies such as MREPC.

To enable MREPC to better serve the industry, the Council’s office was relocated from Plaza Sentral to Q Sentral in December 2015. The new office has a spacious training room which can accommodate more than 120 participants and a well designed display gallery to showcase the various rubber products manufactured in Malaysia. With the relocation, the Council will be able to provide training and hold other events for industry members in a better equipped and more conducive location; the improved display gallery is designed to present visitors, domestic as well as foreign, with a favorable impression of the rubber product industry in Malaysia.

To better serve the interests of the industry, in 2015 MREPC undertook to set up two more overseas offices in Guangzhou, China and Mumbai, India. With these two offices, expected to be ready in early 2016, MREPC would have four overseas offices to complement its marketing and promotion efforts for Malaysian rubber products in key markets. The setting up of the Guangzhou and Mumbai Offices are part of the Council’s strategy of focusing on emerging markets, especially China and India, to promote rubber products, in particular medical devices.

In all its endeavors, MREPC has been guided by the needs and interests of the industry; constant feedback from industry members and other stakeholders is welcome and necessary to ensure that MREPC continues to serve the rubber product industry.

Y.B. Haji Ahmad Lai Bin BujangChairman

FOREWORD BY CHAIRMAN


In recent years, MREPC has transformed from being primarily a market promotion agency for Malaysian rubber products to one which provides comprehensive services to the industry. This report provides the latest information on the activities carried out by MREPC. I believe that industry members will find the information useful and I hope this will further encourage members of the industry to participate in all activities carried out by MREPC.

The various marketing and promotional activities undertaken by MREPC, including participation in trade shows on its own or together with industry members and the organising of seminars, missions and working visits are the core activities undertaken to promote Malaysia’s rubber products. In 2015, we have seen an increase in the number of industry members participating in activities organised or coordinated by MREPC. The encouraging response of industry members to MREPC-led activities underlines the important role of MREPC in marketing and promoting Malaysia’s rubber products.

Since its establishment in 2000, MREPC has consistently been exploring various initiatives to support industry efforts to make Malaysia a leading exporter of rubber products. In addition to facilitating industry participation in trade shows, marketing missions and working visits to promote rubber products, the Council has implemented an incentive program to encourage industry members to undertake marketing activities abroad. MREPC’s incentive packages have been well received over the last few years and the number of industry members taking advantage of the incentives has increased significantly. More importantly, the incentives have helped increase the number of industry members undertaking market promotion activities and improved the quality of such participation.

The market research activities undertaken by MREPC have also been instrumental in assisting industry members to assess market potential in selected countries or regions in order to plan their marketing strategies.

Assisting industry members in capacity building is another important function of MREPC. Over the years, the Council has been carrying out capacity enhancement programmes such as technical and market seminars, briefings on research findings and other training activities to benefit industry members. The MREPC Scholarship Awards have also helped industry members meet the ever-expanding requirements for skilled manpower. MREPC has also improved our e-library to make it easier for industry members to gain access to market information at our Resource Centre.

In this Annual Report, information related to the various types of capacity building programmes undertaken by MREPC have been updated.

I hope the information provided in this report will encourage members of the industry to better use the facilities that MREPC provides and to participate in activities organised by MREPC for the betterment of the rubber product industry of Malaysia.

Low Yoke KiewChief Executive Officer

STATEMENT BY CEO


Sitting, from left to right: Datuk Dr. Mahmood Abd Kadir, Madam Low Yoke Kiew, YB. Haji Ahmad Lai bin Bujang, Madam Zurinah Pawanteh, Datuk Dr. Mohd. Akbar Md Said

Standing, from left to right: Mr. Vincent Tan Kai Long, Mr. Teo Soon Huat, Mr. Low Chin Guan, Mr. Lim Kwee Shyan, Mr. Lee Kim Meow, Mr. Goh Miah Kiat, Mr. Lim Sum Teck

Dato’ Seri Stanley Thai Kim Sim Dato’ Lim Kuang Sia

BOARD OF TRUSTEES

MREPC Board of Trustees members not in the MREPC Board group photo


Chapter 1

MREPC TODAY

The Malaysian Rubber Export Promotion Council (MREPC) was incorporated on 14 April 2000 to promote and market Malaysian rubber and rubber products to world markets. It is governed by a Board of Trustees appointed by the Minister of Plantation Industries and Commodities. The members are primarily industry players along with representatives from the Ministry, the Malaysian Rubber Board and relevant associations related to rubber and rubber products.

MREPC has come a long way since its inception as has the rubber product industry in Malaysia. The services provided by MREPC have become an integral part of the development of the industry. From a fledging advisory council, organizing a limited number of promotional activities, we now see our role as trusted partner, giving strategic support to the industry. Since its establishment, MREPC, in consultation with the industry players and other stakeholders, has continuously undertaken a wide range of activities to promote rubber products, and assisted the rubber product industry in its efforts to gain greater global market share while strengthening its track record of performance and product acceptance.

MREPC now provides a wide array of services to the Malaysian rubber product industry, including providing research and training on markets and marketing, helping Malaysian exporters access new markets and expand existing markets through trade shows and market missions, and providing support to manufacturers through incentives for a wide range of market promotion, product development, and quality improvement activities.

Around the globe, MREPC has established representative offices as centre for information on Malaysian rubber products in Washington D.C, USA and Shanghai, China. MREPC will soon establish a representative office in Guangzhou to undertake more activities in the southern region of China, and another office in Mumbai to improve market access in India for the Malaysian rubber product manufacturers and exporters.


Stellar Export Performance by Malaysian Rubber Products Sector in 2015The Malaysian rubber product industry saw its exports increased by 18.6% to a record level of RM17.99 billion in 2015, compared to RM15.17 billion in 2014. The sharp increase in exports was mainly attributed to the solid performance of the rubber gloves sector which accounted for 73% of the Malaysia’s total exports of rubber products in 2015. Revenue from glove exports increased by 22.4% year-on-year to reach an all-time high of RM13.1 billion in 2015.

The export of other rubber products such as tyres, hoses, latex threads and condoms also contributed significantly to Malaysia’s total export of rubber products in 2015. All four products also recorded double-digit export growth of between 13.6% and 32.4% year-on-year in terms of value.

Chart 1 : Malaysia’s Exports of Rubber Products, 2011-2015 (RM billion)

n Latex Goods n GRG n IRG n Tyres n Footwear Total

The United States remains Malaysia’s largest export market for rubber products, accounting for almost 29% of Malaysian rubber product exports in 2015. The value of exports of rubber products to the United States reached RM5.2 billion in 2015, a 23.5% increase over the 2014 level. Exports to Germany and Japan, the next two major destinations for Malaysian rubber products also recorded year-on-year growth of 7.8% and 10.6% in 2015, respectively. Higher rubber product exports were also recorded to China with an increase of 30.2% to RM771.4 million in 2015 from RM592.4 million in 2014. China is currently Malaysia’s fourth largest export market for rubber products.

2011 2012 2013 2014 2015

12.0

0.9 0.5 0.8 0.4

11.4

1.0 0.5 0.8 0.6

14.2 14.5 14.715.17

17.99

12.1

0.9 0.5 0.8 0.3

12.2

1.1 0.6 1.00.3

14.6

1.1 0.7 1.10.4

Chapter 2

THE YEAR IN REVIEW


Overall, exports to most regions recorded double-digit growth in 2015 when compared to 2014. There were strong increases seen in the exports to South Asia (31.9%), Africa (24.4%), Central Asia (23.8%), West Asia (21.3%) and the Middle East (21.1%). The North American region was Malaysia’s largest export destination, taking 30% or RM5.6 billion worth of Malaysian exports of rubber products, followed by EU28 with 24% valued at RM4.4 billion, East Asia, 13% or RM2.4 billion, and ASEAN, 9% or RM1.6 billion.

Chart 2 : Malaysia’s Exports of Rubber Products in 2015, By Country of Destination

OutlookThe outlook for rubber product exports remains positive with most growth expected to take place in Asia, Africa and Middle East as income rises and expenditure on healthcare and hygiene increases. The Malaysian rubber product industry, particularly the rubber medical products sub-sector, is well-placed to take advantage of growing demand, thanks to competitive pricing, and increasing capacity, with manufacturers having the capability to meet stringent market requirements. For 2016, total export of rubber products is expected to grow by 3%.

EU28, 25%

JAPAN, 6%

CHINA, 4%

UK, 4%

AUSTRALIA, 4%

BRAZIL, 3%

SINGAPORE, 3%THAILAND, 2%ITALY, 2%

OTHERS, 18%

USA, 29%


The Malaysian Rubber Export Promotion Council (MREPC) is 15 years old. On 26 August 2015, MREPC celebrated its 15th anniversary which saw the attendance of representatives from both government agencies and members of the rubber products industry. In conjunction with the anniversary, an Industry Awards event was also organized to commemorate the outstanding export performance of top exporters of rubber products. The memorable events were graced by YB Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities, who also presented trophies and plaque to winners of the respective awards.

Since its inception fifteen years ago, MREPC has been diligently playing its role to facilitate and promote Malaysian made rubber products worldwide. The exponential growth from a total export of RM5.4billion in 2000 to RM17.99 billion in 2015 is attest to MREPC’s concerted efforts in promoting Malaysia’s rubber products in the past fifteen years. MREPC’s humble beginnings started with 8 staff and now it is a full-fledged council where market promotion functions are complemented and enhanced with market research activities as well as capacity building and talent development programmes to support and assist the industry in every way possible.

The celebration of the 15th Anniversary and Industry Awards were an exciting time not only for MREPC but also for the Malaysian rubber product industry as a whole to witness the achievement, progress and transformation of the industry. Malaysia was once known as the largest exporter of natural rubber and now we have grown from strength to strength in the downstream sector, as the world’s largest exporter of rubber examination and surgical gloves, condoms and rubber catheters, making Malaysia a household name in the rubber industry.

Winners of awards with YB Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities

Chapter 3

A YEAR OF CELEBRATION

MREPC’s 15th Year

Anniversary and Industry

Awards 2015


The presentation of the industry awards was the moment where companies were honoured, recognised and celebrated for their excellent performance for the period of 2012 to 2014. Seven categories of awards were presented. A total of 10 deserving companies that have significantly contributed towards etching Malaysia’s name in the global arena as a source of quality rubber products, were presented the awards. These companies were from different product sectors such as latex goods (gloves, condoms & latex threads) and the dry rubber sector (hoses, engineered rubber products etc).

Recipients of the

respective awards

Malaysia’s Largest Exporter of Rubber Products

............................................................................................................

Top Glove Corporation Bhd

Malaysia’s Largest Exporter of Rubber Gloves

............................................................................................................

Top Glove Corporation Bhd

Malaysia’s Top 5 Exporters of Rubber Gloves

Hartalega Sdn. Bhd. •Kossan Rubber Industries Bhd. •

Supermax Corporation Bhd. •Top Glove Corporation Bhd. •WRP Asia Pacific Sdn. Bhd. •

Malaysia’s Top 5 Exporters of Non-Glove Rubber Products• Bard Sdn. Bhd.• Karex Berhad• Kossan Bhd.• Linatex Rubber Products Sdn. Bhd.• Rubberflex Sdn. Bhd.

Malaysia’s Largest Exporter of Non-Glove Rubber Products

............................................................................................................

Rubberflex Sdn Bhd

Malaysia’s Largest Exporter of Dry Rubber Products

............................................................................................................

Wellcall Hose (M) Sdn Bhd

Malaysia’s Largest Exporter of Standard Malaysian Glove (SMG)

............................................................................................................

Supermax Corporation Bhd


MREPC organizes trade exhibitions locally and internationally, covering a wide range of rubber products for Malaysian manufacturers as well as exporters under a national umbrella. During these events, Malaysian rubber products are actively promoted and prospective buyers are provided with relevant information to highlight the benefits of sourcing from Malaysia. MREPC also initiates working visits, specialized missions and marketing missions to support the industry. Programmes for the visits and missions include seminars and meetings with regulatory bodies, relevant associations, government agencies and rubber-related companies.

Chapter 4

ENHANCING MARKET ACCESS

PROMOTING MALAYSIAN RUBBER PRODUCTS AT TRADE SHOWSIn 2015, MREPC participated in seventeen international and one domestic trade shows – with eleven of these shows targeted for latex products while seven others for dry rubber products. A total of 99 manufacturers participated under MREPC’s pavilions in 12 international trade shows with 106 business matching sessions arranged for Malaysian rubber product manufacturers with foreign buyers during these shows.

A total of 1,252 enquiries and expected sales of US$33.8 million were reported throughout the year. MREPC also presented seminar papers to convey latest information about the Malaysian rubber products industry as well as to provide greater understanding of market opportunities to more than 120 international audiences in five international shows, namely Medical Fair India, CMEF Spring China, Expomed Mexico, GACS Stuttgart and FIME USA.

Table 1: MREPC Participation in Trade Shows

Trade Show Venue Date

India Rubber Expo & Tyre Show New Delhi, India 15 - 17 Jan 2015

Arab Health Dubai, UAE 26 - 29 Jan 2015

KIMES Seoul, South Korea 05 - 08 Mar 2015

Medical Fair India Mumbai, India 21 - 23 Mar 2015

Taipei Ampa Taipei, Taiwan 08 - 11 Apr 2015

Mosbuild Moscow, Russia 14 - 17 Apr 2015

CMEF Spring Shanghai, China 15 - 18 May 2015

Medexpo Dar-es-Salaam, Tanzania 23 - 25 May 2015

Expomed Mexico City, Mexico 10 - 12 Jun 2015

GACS Stuttgart, Germany 16 - 18 Jun 2015

Medicall Chennai, India 01 Jul - 02 Aug 2015

FIME Miami, USA 05 - 07 Aug 2015

Hospital Expo Jakarta, Indonesia 21 - 24 Oct 2015

A+A Dussseldorf, Germany 27 - 30 Oct 2015

AAPEX Las Vegas, USA 03 - 05 Nov 2015

Medica Dusseldorf, Germany 16 - 19 Nov 2015

Automechanika Shanghai, China 02 - 05 Dec 2015

Automechanika Kuala Lumpur 19 - 21 Mar 2015


Arab Health, DubaiMREPC featured a double-deck pavilion concept which housed 14 Malaysian rubber medical device companies in the largest medical devices trade show in Middle East. There was growing interest among rubber product manufacturers with almost 340 enquiries received throughout the show. Arab Health 2015 alone boasted expected sales of US$11.6 with 9 business matching sessions organized for Malaysian companies during the show.

Medical Fair India, MumbaiMREPC led participation of 6 rubber medical device manufacturers in the largest medical devices trade show in India. MREPC also made a presentation titled “Know Your Medical Gloves for Better Protection and Patient Care” during the event to enhance awareness of the importance of using rubber medical gloves among healthcare personnel.

CMEF Spring, ShanghaiThis is the largest trade show on medical devices in the Asia-Pacific region. MREPC took the opportunity to reach out to Chinese buyers through a seminar on gloves as well as organised a briefing to Malaysian manufacturers on “China Food and Drug Administration (CFDA) Registration Process for Gloves” during the event.

Among the trade shows participated by MREPC were:


Medica, DusseldorfMedica, the world’s largest medical marketplace was held annually in Dusseldorf, Germany. MREPC participated in the show for the tenth time in 2015. Many other Malaysian manufacturers also participated on their own in this show.

Besides the above, other trade shows participated by MREPC in 2015 were Korea International Medical & Hospital Equipment Show (KIMES), Taipei International Auto Parts & Accessories Show (Taipei AMPA), Global Automotive Components and Suppliers Expo (GACS), Medical Equipment Exhibition India (Medicall), Florida International Medical Expo (FIME), Hospital Expo Jakarta, Automechanika Kuala Lumpur and Automechanika Shanghai.

AAPEX, Las VegasBeing the largest automotive components aftermarket show in USA, AAPEX attracted 159,700 visitors. MREPC participated with 8 manufacturers in the show.

A+A, DusseldorfMREPC led 10 manufacturers to participate in the world’s largest trade show on occupational health and safety. Ten business matching sessions were arranged with reported sales of US$10.4 million.


VENTURING INTO NEW MARKETSMREPC activities are also designed to assess potential in new markets for Malaysian rubber products. Additionally, these participations enable industry players to glean a better understanding of market opportunities and challenges in doing business in the targeted importing countries. In its effort to further expand markets for Malaysia’s rubber products, MREPC participated in trade shows in the following new markets:

Medexpo, Dar-es-SalaamMedexpo is the largest annual trade event in Tanzania and MREPC participated for the first time with a pavilion that housed 5 Malaysian rubber medical device companies. MREPC arranged 16 business matching sessions for Malaysian companies during the trade show.

Expomed, Mexico CityMREPC participated for the first time in Expomed to promote Malaysian rubber medical devices in Mexico. MREPC participated with a promotional booth and presented a paper titled “Today’s Medical Gloves: What You Need to Know” at the Hospital International Congress, which was organised concurrently with the exhibition.

Mosbuild, MoscowThis is the largest trade show on building and construction industry in Russia. MREPC participated for the first time as an umbrella booth, together with 2 Malaysian manufacturers, promoting Malaysian rubber products for building and construction such as seismic bearings, expansion joints, rubber tiles, speed humps and parking bumps.


WORKING VISITS AND SPECIALISED

MISSIONMREPC also organised working visits and specialised missions to facilitate and initiate economic and technical contacts with importing countries. These missions introduced a specific range of products to a target market. MREPC also conducted talks and seminars to convey relevant information about a specific range of rubber products during these visits.

MINISTERIAL MISSION

MREPC participated in a Ministerial mission to South Korea in 2015. A working visit was organised as part of the Malaysian multi-commodities delegation under the Ministry of Plantation Industries and Commodities (MPIC). MREPC held meetings with Hyundai Engineering and Construction as well as the Korea Medical Devices Industry Association (KMDIA) to explore joint venture opportunity with corporations in Korea and market access for rubber products.

EDUCATIONAL SEMINARSMREPC organised seminars for both domestic and international markets to reach out to industry players, distributors, contractors, building consultants and end users to share information pertaining to current development in rubber products such as medical gloves and seismic bearings. In 2015, three international seminars were organised in UAE and South Africa to educate target audiences on Malaysian engineered rubber products and rubber medical gloves.

Meeting with Myanmar Engineering Society

Meeting with Hyundai to explore joint venture opportunity

In 2015, MREPC organised nine working visits and one specialised mission to promote Malaysian rubber products. Out of these programmes, one was organized for latex products sector, seven were for dry rubber products sector and two others covered both sectors. The working visits were to UAE, Russia, Taiwan, South Korea, Mexico, Germany, Myanmar, Italy and USA while the specialised mission was to South Africa. Eleven Malaysian rubber product companies participated in the programmes and 29 organisations were visited by the delegates.


Business talks with CEO

Seminar on Managing Infection Control

MREPC organised a medical seminar titled “Managing Infection Control” in Johannesburg, South Africa on 30 September 2015. The seminar covered a wide range of topics, from the latest development on infection control issues to best practices in medical glove usage and import regulations of medical devices. The seminar received participation from 7 Malaysian medical glove manufacturers and attended by 87 participants including doctors, nurses and purchasing officials, importers and distributors. A total of 36 business matchings were successfully arranged in the afternoon after the seminar.

Two seminars were organised by MREPC in Dubai on 20 and 21 January 2015 to promote Malaysian engineering rubber products. The first seminar, titled “Rubber: Your Partner in the Construction Industry”, was jointly organised by MREPC and the Society of Engineers, UAE. About 40 participants, comprising engineers and engineering students attended the seminar. The CEO of of Tun Abdul Razak Research Centre (TARRC) and a representative from the industry presented papers on Malaysian seismic bearings and engineering rubber products during the event.

The second seminar was titled “Business Talks with CEOs” which was jointly organised by MREPC and the CEO Clubs Network. The seminar cum dinner meeting was attended by approximately 160 guests, comprising mainly businessmen, industrialists and public sector officials from UAE. During the event, MREPC made a presentation that highlighted Malaysia’s capability in producing high quality rubber products.


ADVERTISINGMREPC’s global advertising campaign continued to promote Made-in-Malaysia rubber products via print advertisements (magazines) and online banners in relevant websites. MREPC advertised in 18 trade magazines, trade show directories and trade websites in targeted countries such as the USA, Germany, Russia, UAE, India, China, Taiwan and Indonesia throughout 2015. One of the new initiatives by MREPC was a joint programme with the 21st Century Television in the USA to feature an infomercial in the form of a panel discussion to strengthen the promotion of Malaysian rubber products in the USA, particularly rubber medical gloves as an important device to safeguard medical personnel and patients from harmful infections in healthcare settings. The programme was aired on Bloomberg Television in the USA, Europe and Asia in March and April. The show was also featured in the Fox Business Network as well as widely covered on YouTube, Google, MSN and Yahoo search engines.

MREPC also continued to implement a Search Engine Optimization (SEO) revamp programme to strengthen its plan for a new global advertising campaign expected to be rolled out in 2016. A number of new marketing materials such as product brochures, information flyers and giveaways were also produced to augment promotional efforts.

OVERSEAS OFFICESMREPC’s market promotion efforts are complemented by its overseas offices. Currently, MREPC has two overseas offices in Washington and Shanghai complementing headquarter’s efforts to promote Malaysia’s rubber products. The setting up of two more new overseas offices in Guangzhou and Mumbai is expected to be completed in early 2016.

Washington OfficeIn US, one core function of MREPC’s office in Washington is to address negative publicity related to latex protein allergies which continued to arise. In 2015, two new anti-latex bills, one in the State of Connecticut and the other in the State of Hawaii have been filed. MREPC’s US Office continued to monitor the situation and efforts have been made to address development of the bills.

The US Office has also been participating in the ASTM and ISO/TC task group meetings to monitor the development of test methods and standards for rubber products, particularly gloves and condoms. Continuous educational activities and dissemination of information to target audiences through participation in trade shows, conducting seminars and advertising are part of activities to provide product updates and correct misinformation about latex protein allergies.

Seminar by MREPC Shanghai

Shanghai OfficeMREPC Shanghai Office participated in CMEF Autumn 2015 held in Wuhan, Hubei Province with a promotional booth. A talk on medical gloves was also conducted at the trade show by the MREPC representative in Shanghai.

MREPC Shanghai also visited several regional trade shows to gauge market trends and to research on market opportunities for various rubber products. MREPC Shanghai visited 4 regional trade shows in 2015, among others DENTECH China 2015, RUBBERTECH China 2015, PTC Asia 2015 and Shanghai Private Label Fair 2015.

In its effort to strengthen its promotional programmes in China, MREPC appointed a new representative to the Shanghai Office.


Chapter 5

PROVIDING MARKET INFORMATION

The Market for Rubber Medical Devices in East Africa: Tanzania & Kenya

Tanzania and Kenya are major growing economies in the African Continent and the two most import-dependent markets for rubber medical devices in the region. These two countries were also deemed to be the gateway for other markets in the African Continent. This research was commissioned to provide market information for industry members who wish to make further inroad into African markets.

The Market for Rubber Automotive Components in Latin America: Argentina, Brazil, Chile & Colombia

This research focused on the market potential for rubber automotive components (RAC) in the four Latin American countries. Argentina, Brazil, Chile and Colombia have been identified to be potential markets for imported rubber automotive components. The report also analyzed the replacement market for RAC vis-à-vis that for OEM.

The Market for Rubber Medical Devices in Middle East: Saudi Arabia & Iran

Saudi Arabia and Iran were considered as relatively new and untapped markets for medical products. Government healthcare reforms and completion of new health facilities in these countries were expected to generate increased demand for medical devices.

The Market for Rubber Parts for Two-Wheelers in Southeast Asia

With 150 million two wheelers, Southeast Asia is a large market for a wide range of components and parts. This research focuses on the market size of key rubber parts, consumption patterns in the original equipment manufacturers (OEM) and replacement equipment manufacturers (REM) segments, the supply chain and key suppliers of rubber parts.

MARKET RESEARCH

MREPC continued to play its role as a provider of researched market information to the rubber products industry in Malaysia and in assisting Malaysian rubber products companies to assess key markets for their range of products.

In 2015, MREPC completed seven market research projects and the reports for these researches have also been published. Of the total, four reports are on exploring opportunities in new markets, two on assessing the Malaysian rubber products industry’s competitiveness and capabilities, and one report on rubber product industry in neighbouring countries.

A brief summary of the seven research reports are given below:



Growth of the Rubber Products Industry in Indonesia and Thailand

This report studied the driving factors that led to the rapid growth in manufacturing and exports of rubber products in these two major rubber-producing countries.

Cost Competitiveness Benchmarking for the Manufacturing of Rubber-Based Products

The report provides updated information on the cost competitiveness of manufacturing rubber products in Malaysia compared to other major producing countries of rubber products.

Survey of Rubber Products Manufacturers in Malaysia

The report profiled more than 200 rubber product companies in Malaysia. It detailed the strengths and limitations of the industry in supplying and exporting rubber products to global markets. Products covered include tyres, footwear, latex goods, industrial and general rubber goods.

The e-Library

In 2015, MREPC enhanced its e-Library’s outlook and facilities to create an attractive and interactive online site for the Resource Centre and facilitate users experience in accessing information and the range of service provided. Interesting new features such as display of latest materials, world map to showcase latest materials by country or region, video user tutorial and the newly revised price list were added to elevate the overall experience of the e-Library. As of Dec 2015, the e-Library had a total of 180 members from 164 companies with 32 companies registered in 2015. To access the e-Library, MREPC’s industry members can log on to www.mrepc-elibrary.com.

The Resource Centre

Following its relocation at the end of 2015, MREPC has a brand new Resource Centre which is not only spacious but equipped with better facilities. The Resource Centre is a learning facility containing an array of comprehensive information and resources relating to the rubber and rubber product industry. There are nearly 2000 materials and literature in the Resource Centre comprising research papers, market reports, articles, trade directories, journals, magazines, newsletters, seminar papers, statistics, and reference books. There is also a collection of information and materials in digital versions such as CDs and DVDs. All these materials and resources can be read onsite or on loan as well as viewed online via the e-Library.

Resource Centre



Publications

The MREPC newsletter STRETCH is published on a quarterly basis, featuring events and activities under MREPC’s services and programmes, various rubber products and manufacturers as well as announcements for upcoming events for the rubber product industry. STRETCH also features market research briefs and rubber product trade statistics and distributed to all rubber product companies, ministries, embassies, government agencies, associations and other related offices domestically as well as internationally.

MREPC also published four issues of the Rubber Product Statistical Bulletin in 2015. The products covered by the bulletin were (i) gaskets, washers and other seals; (ii) non-surgical gloves; (iii) precured treads; and (iv) mattresses of cellular rubber or plastics.

Latex 101

Rubber 101

The Latex 101 Series 2015

The Latex 101 Series is an annual training programme comprising 9 classes and aims to provide participants with extensive knowledge of what latex is, what we need to do to convert latex into useful products and how to test the products for the desired quality and standard. A total of 48 participants from 19 companies attended the Latex 101 Series 2015.

The Rubber 101 Series 2015

The Rubber 101 Series is structured to provide knowledge on rubber technology covering aspects of the type and properties of rubber, compounding, processing and testing. 41 participants from 15 manufacturing companies attended the classes conducted by MREPC’s Corporate and Technical Adviser.


SEMINARS

TECHNICAL SEMINARS

In 2015, MREPC continued to conduct various seminars as part of its capacity enhancement programmes for the industry. Both technical and non-technical seminars were conducted during the year. More than 600 participants, mainly from the industry, participated in these seminars.


Waste Management for the Dry Rubber Sector

The seminar which was attended by 24 participants provided updates on latest policies, processes and procedures in waste management and handling in Malaysia with focus on dry rubber sector. Industry members were also presented with an overview of ISO 14001:2015 and updates on environmental regulations.

Seminar on patent

Seminar on Shaping & Building Customer’s loyalty

Seminar on KPI

Seminar on Waste Management

NON-TECHNICAL SEMINARS

Latest Patent on Gloves and Patent Trends

On 15 April 2015, a full day seminar on ‘Latest Patent on Gloves and Patent Trends’ was organized for a total of 25 participants. Participants learned about patent landscaping to enable businesses to observe technology trends, industry stakeholders, competition, geographic investment trends and develop blue ocean strategy.

Shaping and Building Customer’s Loyalty – How to Turn Complaints into Opportunities

A total of 36 participants attended this one day seminar. The seminar was held to provide knowledge on effective ways and methods to turn customer’s complaints into business opportunities, regain and retain the trusts of unhappy customers. The certified trainer conducted the seminar to raise awareness of critical components of the business that drives the business, build awareness of important elements to achieve results, improve communication between service provider and client and inculcate service mindset within work culture.

Key Performance Index (KPI) for Employee Performance Appraisal and Management

MREPC organized a seminar on the topic of Key Performance Index for Employee Performance Appraisal and Management which was attended by 20 participants. The seminar focused on measurable and sustainable strategies to form a cohesive work fit between individuals in a team and also changing paradigms for organizations.



Latest Updates on Market Opportunities in USA, China and India

In conjunction with its annual industry consultation session, a special briefing session by three MREPC overseas representatives was conducted for industry members. An overwhelming response from the rubber product industry was received with 30 companies sending more than 50 participants. Five papers were presented during the briefing i.e. “Market Outlook of Rubber Products”, “Updates on the Market for Rubber Products in the US”, “Updates on the Market for Rubber Products in China”, “Updates on the Market for Rubber Products in India” and “Updates on MREPC Programmes and Services”.

Malaysia-Turkey Free Trade Agreement (MTFTA)

A Specialised Market Briefing was organized on 13 August 2015 to provide rubber product manufacturers and exporters with information on the progress and updates of MTFTA. The briefing covered market access opportunities for rubber products under MTFTA and also rules of origin and application of preferential certificate of origin under the FTA. The briefing was conducted by officers from the Ministry of Plantation Industries and Commodities and Ministry of International Trade and Industry. Forty-three people from 33 companies attended the briefing.

Global Medical Device Registration and Regulation – Processes and Procedures

MREPC organised a briefing titled ‘Global Medical Device Registration and Regulation Process’ which was attended by 45 participants from 26 rubber product companies. The briefing gave an introduction to the latest regulatory requirements in the medical device market which require companies to have a Quality Management System (QMS) and certified with ISO 13485 by an approved certification body. For the EU market, products need to comply with EN ISO 13485:2012 and CE marking while for the US market, products need to conform to FDA Chapter 21 CFR 820, a quality system regulation.

BRIEFINGTO INDUSTRY

Besides seminars, MREPC also organized in 2015 several briefing sessions related to market access to members of the industry.

Update on Malaysia – Turkey FTA

Global Medical Device Seminar

MARKET INFORMATION

SEMINARS

In 2015, MREPC conducted three Market Information Seminars to disseminate findings of market research to members of the industry. The findings of the research as follow were presented at the seminars.

i Rubber Automotive Components in Latin American Marketsi Markets for Rubber Products for Two-Wheelers in Southeast Asiai Cost Competitiveness Benchmarking of Dry Rubber Products & Markets for

Rubber Products in Automotive and Construction Sectors

Updates on market in USA



Chapter 6

CAPACITY BUILDING AND NETWORKING ACTIVITIES

MREPC INCENTIVESSince the inception of MREPC incentives in 2007, several reviews have been made to provide relevant financial assistance to the rubber product companies to achieve greater share of the international market. To date, MREPC incentive packages have grown from an initial 5 types of assistance to the current 18 packages.

In 2015, MREPC introduced a new incentive SBIM18 for product registration to increase market access in countries that require mandatory registration for certain rubber products. Another incentive SBIM13 was expanded from subsidising courses offered by the Plastics and Rubber Institute of Malaysia (PRIM) to technical short courses offered by Akademi Hevea Malaysia and online rubber technology courses offered by the Rubber Division of American Chemical Society (ACS).

The total disbursement of incentives in 2015 amounted to RM4.5 million.

Disbursement 2008-2015 (RM Mil)

2008

0.51

1.24

1.84 1.642.08

2.73

4.05

4.5

2009 2010 2011 2012 2013 2014 2015

80 companies benefittedfrom MREPC incentivesthus far

300 applications receivedin 2015


SME Outreach Advisory Services (OAS)For 2015, MREPC has identified two companies for its OAS programme. One company which has been focusing on production only has requested assistance to help it venture into global market whereas another has requested MREPC’s assistance to review the processing of its product to further improve the product’s technical properties. MREPC also assessed a few other companies which had indicated interest in seeking MREPC’s assistance in marketing.

Northern Region SeminarThe Northern Region Seminar was held at Sunway Hotel, Penang on 24 June 2015 as part of MREPC’s effort to create greater awareness of the programmes and services offered by MREPC and other government agencies. A total of 30 participants from the state of Perlis, Kedah, Penang and Perak benefitted from this programme. Apart from officials of MREPC, speakers from other agencies such as MIDA, SME Corp, Customs Department and NanoMalaysia Berhad were also invited to give their presentations on respective issues of interest to industry members.Northern Region Seminar

Glove Awareness ProgrammeIn 2015, MREPC continued to organize awareness programmes among healthcare services providers in Malaysia. On 12 October 2015, in conjunction with the first Malaysia Glove Day, MREPC organized a National Glove Seminar which was attended by 100 nurses from both the public and private hospitals. The seminar was also organized in support of efforts by the National Cancer Council to raise awareness on breast cancer.

MREPC also participated in the International Environmental Health Conference 2015 held in Kuching, Sarawak on 27-28 October 2015. The programme served as a good platform to create awareness on the different types of gloves and its applications among visitors including medical officers, health inspectors, environmental professionals, occupational health & safety officers etc.

National Glove Awareness Seminar


Networking with EmbassiesIn 2015, MREPC continued its networking efforts with embassies and foreign trade offices to improve trade ties. Among the embassies and trade offices visited by MREPC include the Embassy of Republic of Korea, Taipei Economic and Cultural Office and the Embassy of Vietnam.

MREPC together with industry representatives also made a courtesy call to the Ambassador of Brazil to raise Malaysia’s concerns on ANVISA’s decision to incinerate medical gloves that failed to meet ANVISA standards. In addition to visiting embassies and foreign trade offices, MREPC also received a courtesy call from the newly appointed Ambassador of South Africa to Malaysia. Trade issues of interest to Malaysia and South Africa were discussed at the courtesy call.

MREPC and industry members meeting with H.E. Ambassador of Brazil

Industry ConsultationThe annual industry consultation with industry members was conducted in July 2015. A total of 21 participants from both latex and dry rubber companies together with representatives from associations gave their inputs on MREPC’s proposed programmes for 2016.

2015 Industry Consultation

Visit to Wellcall

Factory VisitsConducting factory visits has been part of MREPC programmes to build rapport and to better understand the problems and challenges faced by manufacturers. The visits also aimed to promote MREPC services and programmes that can assist the rubber product industry to enhance its export performance. In 2015, MREPC conducted more than 15 visits to both the latex and dry rubber product companies.


Corporate Social ResponsibilitiesIn terms of Corporate Social Responsibilities (CSR), MREPC made contribution to victims of the Sabah earthquake and Society of the Blind. The Council also continued to provide sponsorship to a financially disadvantaged student in Sarawak.

Public Relations through Social MediaApart from Facebook, MREPC has also started its Twitter account in 2015. Both the platforms have been used to promote MREPC activities to wider audience group which includes industry members, international buyers, local and foreign trade agencies, university students etc.

MREPC Scholarship ProgrammeProviding scholarship to undergraduate students is among the strategies of MREPC to attract talents to the rubber product industry. In 2015, MREPC awarded scholarship to 26 students from both the public and private universities. Special consideration was given to students who were studying polymer science and those who were financially disadvantaged in the selection process. Among the 26 students selected for the awards, 20 of them accepted the offer.Briefing to MREPC scholars

MREPC at Karnival Lan Berambeh

Visits to Universities and Career FairsTo promote the rubber product industry and its scholarship programme, MREPC officials also visited universities and conducted talks to undergraduate students. The universities visited by MREPC include Universiti Malaya, Universiti Pahang Malaysia, University of Technology MARA and Universiti Kuala Lumpur. In addition, MREPC also participated in career fairs/university open days such as Karnival Kerjaya dan Keusahawan Graduan 2015 and Karnival Lan Berambeh Anak Sarawak to attract talents to the rubber product industry.


Chapter 7

SUMMARY OF FINANCES

MRPEC continued to manage its finances prudently, to serve the Malaysian rubber products industry effectively. In 2015, total revenue amounted to RM36,098,305, of which a major portion of 87.5% was from cess collected during the year. The rest was mainly from interests from fixed deposits.

Total expenses for the year amounted to RM21,457,703 which was mainly for administration purposes, incentives given to industry members and trade shows for promotion and marketing activities. Of the total, scholarship expenses amounted to RM1,365,701.


Chapter 8

THE WAY FORWARD

MREPC will continue to constantly redefine its role and functions to meet future challenges by working hand-in-hand with industry players and other stakeholders. With challenging times and varying demands imposed by a rapidly growing rubber product industry in Malaysia, MREPC will continue to evolve and plan its strategies and activities to continue providing optimum benefit to the rubber product industry in Malaysia.

Today, as MREPC approaches its second decade, an important milestone was achieved with the relocation of its operations from Plaza Sentral to a new premises at Q Sentral. The new premises houses state-of-the-art facilities, among others a brand new showroom, an enhanced resource centre, and spacious training halls. These new facilities will help MREPC to play an effective role in developing a modern, high value-added rubber product industry by providing the direction and support required to face the challenges of an increasingly dynamic and competitive global environment.

Seminar Room

Reception

Work Station

Show Room

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2015AL.pdf - Malaysian Rubber Council (MRC)

Documents

Transcript of 2015AL.pdf - Malaysian Rubber Council (MRC)