Executive Summary Report of the FMM Kedah/Perlis Branch Committee Meeting held on May 22, 2012
1. PEMUDAH KEDAH TASK FORCE Meeting – May 20, 2012
The PEMUDAH Kedah TF was chaired by YB Dato’ Setiausaha Kerajaan Negeri Kedah. Dr Haminuddin represented FMM.
a. FMM presented a paper on the IPMC. The TF endorsed FMM proposal for the IPMC to be co-chaired by Exco Industry or State UPEN Director and FMM. Also, to appoint a Special Committee to speed up on the outstanding hand-over of some industrial areas.
b. FMM also highlighted the companies concerns on the minimum wage. The PEMUDAH agreed to bring up the matters to the PEMUDAH Federal level after obtaining inputs from relevant departments.
2. PEMUDAH Perlis Task Force Meeting – May 8, 2012
The meeting held at Shorubber (M) Sdn Bhd, was co-chaired by YB Dato’ Azizan Hamid and En Saffie Bakar.
a. Labour Department Perlis gave a presentation on latest procedures on employment of foreign workers and minimum wage implementation. The private sector representatives were confused given the limited information on the mechanism on implementation of minimum wage. Industries in Perlis would be adversely affected by the minimum wage set by the Government.
b. Land issues pertaining to Malay Reserved land imposed on industrial areas could potentially be resolved. A developer for SMI industrial area in Kuala Perlis faced difficulties in obtaining land titles and buyers were unable to secure bank loans.
3. Minimum Wage Implementation
The Committee noted members' concerns on the minimum wage implementation. Taking cognizance on the SEVERE impact on the implementation, PARTICULARLY to Kedah/Perlis industries, a special meeting was initiated by companies in Kedah and Perlis. The group led by SMT Technology Sdn Bhd would submit a memorandum to the National Wage Consultative Council to highlight the following:
a. The setting-up of the minimum wage SHALL seriously consider differences in the cost of living due to geographical locations, especially in Kedah and Perlis states where our minimum basic salary is merely between RM400 and RM600.
b. Setting-up the minimum wage rate at RM900 per month across-the-board DOES NOT reflect the differences in economic activity and cost of living in different states in Peninsula Malaysia.
c. Majority of the companies either cited as HIGH or SEVERE impact due to the RM900 minimum wage. Salary adjustment (impact on payroll) has to be made on average of 38%.
d. To propose minimum wage for Kedah/Perlis should be set at RM550 per month.
4. Infrastructure & Utilities Updates
a. Gurun Industrial Area – After IPMC Site Inspection on 17 January 2012, PKNK has partially handed-over streetlights and landscape maintenance to MPSPK. Two more visits were conducted by MPSPK after the IPMC Site Inspection. PKNK was undertaking road repairs, monthly cleaning, etc. which would be handed-over item by item to MPSPK.
b. IPMC Sungai Petani Industrial Area – The IPMC meeting 1/2012 was held 3 May 3, 2012. Highlights included:
i. All infrastructure issues were presented at the meeting. Specific location map and pictures presented to MPSPK and PKNK for actions.
ii. MPSPK also asked companies to directly make complaints via the Majlis e-aduan (online system).
iii. PKNK welcomed tenants to renew their land lease which would be extended to 99 years at RM7.50 per sqft. Many companies were not able to decide now due to longer existing lease and uncertainty in business performance. PKNK offered premium payment in stages, upon negotiation.
iv. MPSPK was undertaking a study on the industrial areas developed by private developer. IPMC was of the view the areas should also be maintained as they also paid quit rent and corporate tax
c. Kulim Industrial Area – MIDA had approved RM2 million for infrastructure upgrading. A site visit together with MIDA, MPK and PKNK was conducted on 13 March 2012. The allocation would include widening of drains in front of Alpha Precision to resolve occurrences of flooding.
d. IPMC Kuala Ketil – The IPMC meeting 1/2012 was held April 19, 2012. Highlights included:
i. The industrial area has been rezoned to light industrial area, but existing heavy industry can continue to operate.
ii. Future EIA could be approved based on safety measures by applicants;
iii. Kolej Universiti Insaniah (KUIN) requires new residents to cater for 10,000 students and staff, thus the residential projects must go on;
iv. Maintenance of the industrial area has been passed to MDB for cleaning, grass cutting and drainage
v. PKNK would continue to upgrade road, drainage repairs, etc
vi. PKNK has given Stop Work Order to appointed contractor doing piping construction works for damaging the roads.
vii. TELEKOM informed that Unify in the area is not yet ready, unless enough demand.
viii. MDB and PKNK to meet up with food stall owners to move the illegal food stalls to designated food court. PKNK was willing to upgrade the food court.
ix. Tenants to write individually to IPD Baling to get Police to visit their factories.
5. FMM Safe Motorcycle Riding Campaign 2012 – April 26, 2012
The Branch conducted this Campaign under the SOCSO Financial Assistance for OSH related programme. The Campaign attended by 150 participants and guests. Throughout this campaign, the participants were guided regarding road safety, SOCSO Schemes, Technical maintenance and safe motor riding skills that achieved the following objectives:
To enhance the important of safe riding among employees in the manufacturing sector in Kedah/Perlis
To prevent / reduce road accidents
To instill culture of polite and courtesy while riding on the road
To educate motorcyclists on the correct ways in riding as well as basic maintenance of motorcycles
150 X-dot helmets, sponsored by MODENAS and NAZA Automotive Manufacturing Sdn Bhd, were distributed to participants. Other than briefing, the following were conducted at the event:
• Demo Safety Riding by MODENAS
• Blood Donation Campaign by Jabatan Kesihatan Negeri Kedah – 40 participants involved
• Free Blood pressure and urine test by Wellness Laboratories Sdn Bhd
• MODENAS latest motorcycle model display and test ride.
• Booth showcase by PERKESO, JKKP, JKJR, Double Site Marketing Sdn Bhd and Draeger Sdn Bhd
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