The following were FMM proposals to the Ministry of Finance for the 2012 Budget and Ministry of International Trade and Industry for the MITI Annual Dialogue 2011:

1. Increase budget allocation for the maintenance and upgrading of industrial estates. Provide incentives such as grant or soft loans to install solar panels at industrial estates so that factories could jointly generate their own electricity supply to reduce overheads as well as to step up environment and energy conservation measures by promoting the use of renewable energy and reducing the consumption of fossil fuels.

2. Efficient logistics network to service the domestic as well as export markets, including measures to improve the railway infrastructure and expedite the dual tracking project so as to increase the use of rail in the transport of goods and greater efficiency in ports in turnaround time and more reasonable and justifiable charges. There should be prior consultation with shippers on charges imposed by foreign shipping lines. Establish a Maritime Commission to regulate the shipping industry. The Competition Act guidelines should explicitly cover freight logistics to ensure that shipping lines do not set/fix prices through Shipping Conferences or Cartels.

3. There should be quality and reliable access to high speed broadband right up to the last mile throughout the country and especially in industrial areas. Access fees should not only be price competitive but also must be high capacity to truly provide high speed access rate, not only best effort.

4. Security of property and personal well – being is also very important and performance should be continually stepped up by strengthening police force and facilities to reduce crime and ensure speedy investigations and effective prosecution of offenders.

Submitted on April 29, 2011