Jogathon 2007 T - TEEAM · Jogathon 2007 Busy moment – A ... The Sandakan Electrical Engineering...

TEEAM 50th ISSUE

The annual TEEAM Jogathon was held on 25th November 2007at Taman Tasik Perdana (Lake Garden), Kuala Lumpur with243 joggers taking part. Mr Toh Wai Kuen of Wong Electrical

& Teak Wood Sdn Bhd won the 6-km race men’s category in 26minutes 21 seconds. Cik Rohana of Clipsal Manufacturing (M) SdnBhd clocked 37 minutes and 31 seconds to become the Champion ofLadies’ event.

A big thank you to our generous sponsors who made the event a success,namely EITA Holdings Sdn Bhd, JJ-Lapp Cable (M) Sdn Bhd, PDLElectric (M) Sdn Bhd and Syarikat See Wide Letrik Sdn Bhd.

Our appreciation also goes to St John’s Ambulance and the first aidersfor helping out in case of emergency.

All winners are listed on page 29.

Jogathon 2007

Busy moment – A shot taken during registration in the early morning.

Lady joggers – A pose taken before flag-off.

We did it! – (wearing vest) Mr Liang Kok Boon (Sports Chairman) givingmoral support to some joggers.

Waiting patiently – Joggers waiting under the morning sun for the resultsto be announced.

Bravo! – A group photo taken after the prize presentation. Congratulations to allthe winners!

Repeated Champion – (right) Mr TohWai Kuen of Wong Electrical & TeakWood Sdn Bhd receiving Jaya JuscoVoucher worth RM 300 and a trophyfrom Mr David Chong Ah Nyap (TEEAMVice President).

Emerging Ladies’ Champion – CikRohana of Clipsal Manufacturing (M)Sdn Bhd receiving Jaya Jusco Voucherworth RM 300 and a trophy from MrLiang Kok Boon (Sports Chairman).

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TEEAM 50th ISSUE

Men’s Event

ChampionToh Wai KuenWong Electrical & Teak Wood Sdn BhdTrophy + Jaya Jusco Voucher(worth RM300.00)

1st Runner-UpWu Jong KwongTenaga Teknik Kian Lee Sdn BhdTrophy + Panasonic Vacuum Cleaner

2nd Runner-UpSundaresen a/l PerumalIndividual MemberTrophy + Jaya Jusco Voucher(worth RM100.00)

FourthThanaseelanClipsal Manufacturing (M) Sdn BhdElba Rice Cooker

FifthMak Wei MunNanyang Electric Co. (M) Sdn BhdPensonic Oven Toaster

SixthYap Yin KenLetrik P. J. Union Sdn BhdHanabishi Slow Cooker

SeventhPrithiviClipsal Manufacturing (M) Sdn BhdSanyo Electric Kettle

EighthKue Chin WeiClipsal Manufacturing (M) Sdn BhdPorcelain Dining Set

NinthChong Khee ChonProgram Electronic Sdn BhdKhind Hair Dryer

Jogathon Results

TenthRoman HaidmannSiteco Lighting (M) Sdn BhdTakada Sandwich Maker

Ladies’ Event

ChampionRohanaClipsal Manufacturing (M) Sdn BhdTrophy + Jaya Jusco Voucher(worth RM300.00)

1st Runner-UpIreneEITA Holdings Sdn BhdTrophy + Panasonic Vacuum Cleaner

2nd Runner-UpCrystalEITA Holdings Sdn BhdTrophy + Jaya Jusco Voucher(worth RM100.00)

FourthNur SyuhadaClipsal Manufacturing (M) Sdn BhdElba Rice Cooker

FifthEe Keok HwaJJ-Lapp Cable (M) Sdn BhdPensonic Oven Toaster

SixthAmararathiClipsal Manufacturing (M) Sdn BhdHanabishi Slow Cooker

SeventhYap Siew FoonNanyang Electric Co. (M) Sdn BhdSanyo Electric Kettle

EighthFazimahClipsal Manufacturing (M) Sdn BhdPorcelain Dining Set

NinthAnuzah ArumaugamClipsal Manufacturing (M) Sdn BhdKhind Table Fan

TenthOnn Yee SenSuccess Electronics & Transformer Manufacturer Sdn BhdTakada Sandwich Maker

EleventhNguyen Thi Thuy LiieuClipsal Manufacturing (M) Sdn BhdFaber Iron

TwelvethTan Chung LingSuccess Electronics & Transformer Manufacturer Sdn BhdTesco Bread Toaster

ThirteenthNorliahClipsal Manufacturing (M) Sdn BhdGlobal Jug Kettle

Sponsors

A word of appreciation and thanks to oursponsors:

EITA Holdings Sdn Bhd15 cartons Drinking Water

Hang San Electrical Supplies Sdn Bhd5 units 3G Plus 16" Wall Fan

JJ-Lapp Cable (M) Sdn Bhd300 pcs T-Shirt

PDL Electric (M) Sdn Bhd1 unit Panasonic Vacuum Cleaner

Syarikat See Wide Letrik Sdn BhdRM250.00

The Electrical and Electronics Association of Malaysia (TEEAM) is offering partnership opportunity with any institution/body/company tojointly organise training courses in all categories. Please be informed that the proposal on training courses is not restricted to merelyelectrical and electronics (E&E) courses, it can be any areas of training and yet maybe of interest to our members who are involving in theE&E fraternity. TEEAM was established since 1952 and has membership of over 1,600 nationwide. We have facilities for wiring training aswell as a conference room. We have an efficient Secretariat to handle the broadcast of events to all our members as well as relatedGovernment Agencies, Associations and Institutions. All proposals are welcomed to be submitted to the TEEAM Secretariat via email([email protected] or [email protected]). Deadline for the submission is before 28th March 2008. Our training committee will takedue consideration on every proposal that is submitted.

29

TEEAM 50th ISSUE

State Associations NewsFollowing are the reports of activities submitted by the various State Association Members of TEEAM.

31

Penang Electrical Merchants’ AssociationNo. 171A, Malacca Street, 10400 Penang.Tel: 604 - 229 0195 Fax: 604 - 228 4233

E-mail: [email protected]: www.pema.org.my

Walkathon 2007On 25th November 2007, the PEMA Recreation Committee headedby the Chairman, Mr Lim Kim San organised a walkathon to AirItam Dam, Penang. Its objective was to foster closer relationshipamong PEMA trustees, advisors, members, their employees andfamilies. About 200 walkers participated in the event. They receivedT-shirts, goodies and some attractive prizes for the lucky draw.Refreshments were served at the top of the hill. It was a joyousoccasion where all mingled to get to know each other in the spirit ofPEMA sportsmanship.

Sweaty walkers – A group photo for the album.

1-day SeminarA 1-day seminar on Electro-Mechanical Motor Starter Solution, TypeCo-ordination & Protection was jointly organised by PEMA andSchneider Electric on 13th November 2007 at Evergreen Hotel,Penang. Speaker, Mr Ken Leow was invited from Schneider Electric.He is a graduate in Technology (Management) from University ofBallarat, Australia. The seminar was organised by Mr Chee SoonChin (Manufacturer Committee Chairman) and Ir Chong Yew Lam(Technical Committee Chairman). The seminar successfully drew 60participants. Five CPD hours were approved by BEM. The proceedsfrom the registration fees went to the PEMA Education Fund.

At the seminar – Speaker sharing his knowledge with the participants.

Courtesy Visit to STA 7-member delegation led by PEMA President, Mr Hong Yeam Wahpaid a courtesy visit to Ir Md Zakuan Hj Ibrahim (Director of EnergyCommission, Northern Region) on 5th July 2007. Some PEMAactivities and problems faced by the members were highlighted duringthe visit.

Souvenir presentation – A souvenir was presented to Ir Md Zakuan Hj Ibrahimby Mr Hong Yeam Wah (PEMA President) at the end of the fruitful discussion.

All smiles – A group photo of guests at the VVIP table.

TEEAM Council MeetingPES hosted a Council Meeting forTEEAM on 26th January 2008 at PESpremises in Beverly Plaza, KotaKinabalu. PES President, Ir ShimSiong Lit together with PES Secretary,Mr Lee Vui Ken and PES Treasurer,Mr Foong June Choy were present atthe meeting. PES also organised twofriendly golf games at Sutera ResortGolf Club and Karambunai Golf Club.

PES President – Ir Shim SiongLit was present at the meeting.

11th Anniversary DinnerThe Sabah Electrical Association (PES) celebrated its 11th anniversaryon 26th January 2008. A grand dinner was organised at Putera TheatreBallroom, Bukit Padang, Kota Kinabalu. Highlights of the dinnerwere lion dance, lucky draw, energetic dances and singing session.Some 1,010 guests and members attended the dinner.

TNB Friendly Golf with Prime CustomersTNB Pulau Pinang invited PEMA to join their friendly golf whichwas held on 26th August 2007 at Penang Golf Resort, Bertam, Penang.Council Members, Mr Teoh Yew Yean and Mr Lee Kuan Meng togetherwith two members participated in the event.

Sabah Electrical AssociationLot No. 3-3-R, Beverly Hills Plaza, Jalan Bundusan,

88300 Kota Kinabalu, Sabah.Tel: 6088 - 712 358 Fax: 6088 - 717 358

E-mail: [email protected]

TEEAM 50th ISSUE..... Continue State Associations News

33

Electrical Association of 3rd, 6th &7th Divisions, Sibu

No. 6, Lane 4, Kandis Road, Off Maling Road,96000 Sibu, Sarawak.

Tel: 6084 - 331 460 Fax: 6084 - 346 114E-mail: [email protected]

30th Anniversary DinnerThe Electrical Association of 3rd, 6th & 7th Divisions, Sibuwill be celebrating its 30th anniversary with a grand dinnertowards end of 2008. A souvenir programme book will bepublished in conjunction with the dinner. Members of TEEAMare welcomed to advertise in the souvenir book for publicityand support purpose. For details, please contact the TEEAMSecretariat at Tel: 603-9221 4417 E-mail: [email protected]

2008 Annual DinnerThe Sandakan Electrical Engineering Association (SEEA) organisedits annual dinner on 19th January 2008 at Ocean King Restaurant.During the dinner, SEEA presented the Datuk Edmund ChongScholarship to members’ children who achieved excellent academicperformance.

Datuk Edmund Chong Scholarship Presentation – An award presentationwas held in conjunction with the dinner celebration.

Yam seng! – SEEA Committee Members and Chairman, Mr Chin Ket Hiung(4th left) standing on the stage to toast to the guests.

TEEAM CouncilMeetingSEEA Chairman, Mr Chin KetHiung attended the TEEAMCouncil Meeting in Kota Kinabaluwhich was held on 26th January2008.

Mr Chin Ket Hiung – SEEAChairman at the meeting.

Sandakan Electrical Engineering Association, SabahBlock A, Lot No. 1, 2nd Floor, Bandar Tong Huat,

Batu 3, Jalan Utara, 90000 Sandakan, Sabah.Tel: 6089 - 213 978 Fax: 6089 - 213 978


The Perak Electrical AssociationNo. 12-A, Jalan Datuk Mahmud,

31650 Ipoh, Perak Darul Ridzuan.Tel: 605 - 254 1502 Fax: 605 - 250 9145


Johor Bahru Electrical &Electronics Association

No.7-01, Jalan Bentara Luar, Taman Iskandar,80050 Johor Bahru, Johor Darul Takzim.Tel: 607 - 333 8174 Fax: 607 - 224 1923


Other State Association Members’ contacts:

Malacca Electrical Contractors andTraders Association

No. 389-G1, Taman Pringgit Jaya,Jalan Mata Kuching, 75400 Melaka.

Tel: 606 - 283 8688 Fax: 606 - 781 1466

Negeri Sembilan ElectricalEngineering Association

c/o No. 194, Jalan Pantai, 71000 Port Dickson.Tel: 606-647 1105 Fax: 606-647 4728

Sarawak Electrical AssociationLot 412, (2nd Floor), Lorong 11D,

Off Jalan Ang Cheng Ho, 93700 Kuching, Sarawak.P. O. Box 1494, 93730 Kuching, Sarawak.Tel: 6082 - 423 145 Fax: 6082 - 429 011


Safety Campaign ProgrammeOn 13th December 2007, the Perak Electrical Association (PEA) at-tended an electrical and gas safety campaign programme which wasorganised by the Energy Commission (ST) at Hotel Impiana Casua-rina, Ipoh , Perak. YB Dato’ Yip Phooi Hong, Timbalan Yang DipertuaDewan Negeri Perak was the guest of honour. Some 120 participantsattended the programme.

Dialogue with Suruhanjaya TenagaST held a dialogue with stakeholders on 9th January 2007 to discussstreet lighting in housing project. Some 18 persons were presented atthe dialogue which was chaired by ST Manager, En Nor Ali. Thosepresent from TNB, REDHA Taiping Municipal, PEA and representa-tives from chargemen & wiremen association.

AGM 2008PEA will be holding its Annual General Meeting (AGM) for theyear 2008 on 16th March 2008 at PEA premises.

TEEAM CouncilMeetingPEA Deputy President, Ir AngusAng Mei Yu attended the TEEAMCouncil Meeting in Kota Kinabalu,Sabah on 26th January 2008.

PEA Deputy President –Ir Angus Ang Mei Yu.

TEEAM 50th ISSUE

Ir Chew Shee Fuee B.Sc. (Hons) (Strathclyde), PEng, CEng, FIEM, MIEE Member, IEEE Member,1st Grade Electrical Engineer (Competent up to above 500 kV).

Ir Chew is the President of The Electrical and Electronics Association of Malaysia (TEEAM) for2001 - 2003 and 2003 - 2005. He is the Past President of the Asean Federation of ElectricalEngineering Contractors (AFEEC).

Ir Chew is the Managing Director of G. H. Liew Engineering (1990) Sdn Bhd and QATMEngineering Services Sdn Bhd. He graduated from the University of Strathclyde, Glasgow with aB. Sc (Hons) in Electrical & Electronics Engineering. He is a Professional Engineer and is alsolicensed by Energy Commission as a competent engineer (without voltage limits) and a serviceengineer to carry out electrical testing up to a voltage of 500 kV.

Ir Chew has 26 years experience in electrical control and relay protection. He is also specialisedin electrical site tests on power equipment, electrical fault investigation, service and maintenanceof electrical switchgear and relays. His work also includes electrical supervision of substationsand electrical audit. He presents lectures on electrical apparatus and the protection system. Hecan be reached at E-mail: [email protected]

Challenges and Opportunitiesin Electrical Industry - Part 7

This paper was prepared by Ir Chew Shee Fuee, TEEAM Immediate Past President.

RCBO - Residual CurrentBreakers with OverloadProtection

Recently I was informed that we havelocal manufacturer of RCBOs.When I asked why they are not

selling it in the local market I was told that itis too expensive. Just to let you know that wehave advanced from fuses to MCBs(Miniature Circuit Breakers). Currently wehave a single RCD (Residual Current Breaker)in each DB (Distribution Board) whether it issingle phase or three phase. The problem withthis is that if the RCD operates all the circuitsin the DB are affected. I have previouslywritten in detail to propose more zones ofprotection.

If RCBO is used every outgoing circuit isprotected individually for both overload andearth leakage protection. The RCBO is theintegration of a MCB with a RCD.

Therefore if you intend to protect each circuitwith earth leakage protection you can lookforward to apply RCBOs in your DB.

The RCBOs are currently being used in UKand Europe.

N o n E l e c t r o m e c h a n i c a lOvercurrent and Earth FaultRelays

Over the years we have replaced numerousnumbers of non electromechanical overcurrentand earth fault relays. We have also carried outrepairs of non electromechanical relays in agreater number. It is almost certain that nonelectromechnical relays fail after a period oftime in service. The period can be a few yearsto ten years. Fortunately most of these relaysfail without causing unnecessary outages.However some relays fail by causing outages.

There is a great percentage of the relays whichhave failed power supply units. If the powersupply units can be replaced the relays willbe functioning again.

What should we do with these nonelectromechanical overcurrent and earth fault

relays if we know that they are likely to failone way or the other? In the case where failurecan cause outages it is necessary to replacethem before suffering great losses.

Since electronic relays are normally associatedfor usage in more controlled temperature andhumidity environment it is now necessary tokeep them in such required conditions. Thiswill be a capital investment in substation andswitchroom design. There will be anoperational cost in maintaining the air-conditional rooms. However it is also able tokeep switchgear in better operating conditionsthan the normal ones. It is hoped that the betterenvironment will improve the lifespan of theelectronic relays.

Frustrations on ServiceProviders for ResidentialElectrical Equipment

After building my house eight years ago, Ihave experienced frustrations in getting therelevant service providers for my electric gateand water pumps.

The electric gate motor is the most robust butthe control and wireless part are likely to failonce in a while. The first failure is the powersupply to the control unit. There is atransformer in use to provide the low voltageused in the control circuit. The failure can bein the fuses on the 230V side and thetransformer itself can fail as well. The

frustration is to get the right person to sortout the problem. The company that sells thesesystems usually do not have sufficienttechnicians and you are unlikely to be attendedin the same day. In my case the gate oncefailed during the Chinese New Year period.In the end I was forced to carry out my ownfault finding and changed a transformer. Lateron the control card was damaged and had tobe replaced. I am not sure whether I choosethe wrong vendor but the number of failuresof my electric gate was too many for me toendure.

In order to have good water pressure I usedwater pumps. The pumps are made byreputable manufacturers. However it seemsthat the water pumps require maintenancemuch like our cars. The frustration is thatinspite of maintenance the pumps can stillfail. The failures are in two modes. The pumpruns without stopping. The other is that itwill not pump when the water pressure is low.Again the control of the motor circuit is atfault.

The vendor of the pump cannot provideservice within the same day because they justdo not have enough technicians to do so.Therefore I am forced to learn to solve theseproblems by myself.

The above two items can be very essentialand obviously requires better level of servicefrom service providers.

35

• SIRENA acoustic (electric and electronic sirens. bells and industrial horns) and luminous devices (continuous. blinking, rotating and flashing beacons) conform inevery aspect to the technical and functional requirements of Norms EN 457 and EN 842.

• The installation of Sirena’s range of audible and visual products onto machines conforms in every way to the safety standards set out in current norms.

Sole Distributor:

THUNG GUAN ELECTRICAL MACHINERY SDN. BHD. (71574-X)

Kuala Lumpur Main officeNo. 8 & 10, Jalan Gandek, Off Jalan San Peng, 55200 Kuala Lumpur, Malaysia.Tel: 603-9221 1811 (4 Lines), 9211 1819, 9221 1910, 9222 2090 Fax: 603-9222 9014E-mail: [email protected] office:No. 54, Lebuh Merpati, Off Jalan Meru, 41050 Klang, Selangor. Tel: 603-3341 4101 (H/Line) Fax: 603-3341 4077

Made in Italy

TEEAM 50th ISSUE

New MembersThe following new members have been approved and accepted by the TEEAM Council (as at 26th January 2008). A warm welcome to all

the new members and special appreciation is extended to those who introduced these new members. For those who are not yet members…..whywait? Join us and find out how our Association can offer our services to you.

Acoustics Power Engineering Sdn BhdNo. 17, Off Jalan 27A, Kawasan 16, Sungai Rasa,41300 Klang, Selangor Darul Ehsan.Tel: 603-3342 4043 Fax: 603-3343 4264E-mail: [email protected] Person: Mr Wong Sock YeeBusiness: Manufacturer switchboard.

Chang Yew CheongNo. 5, Jalan Amanat U2/45, Taman TTDI Jaya,40150 Shah Alam, Selangor Darul Ehsan.Mobile: 012-234 7919E-mail: [email protected]: Engineering services.

Better Power (M) Sdn BhdNo. 47, Lorong SJ 8/8A, Taman Seremban Jaya,70450 Seremban, Negeri Sembilan Darul Khusus.Tel: 606-679 5650, 679 5660 Fax: 606-679 5640E-mail: [email protected] Person: Mr Allakhappayee a/l SolamuthuBusiness: Electrical contractor.

Group Engineers Malaysia Sdn BhdLot 280, Tabuan Road, 93200 Kuching, Sarawak.Tel: 6082-410 477 Fax: 6082-426 853E-mail: [email protected] Person: Mr Kuek Eng MongBusiness: Engineering contractor.

Erakan Bina Letrik Sdn BhdNo. 19, Jalan 13/142, Taman Orkid Desa, Cheras, 56000 Kuala Lumpur.Tel: 603-9101 3363 Fax: 603-9102 4363E-mail: [email protected] Person: Mr David Lee Yuen HengBusiness: Electrical contractor.

Teetronics Industrial (M) Sdn BhdNo. 29, Jalan Selat Selatan 17, Portland Industrial Park,Pandamaran, 42000 Port Klang, Selangor Darul Ehsan.Tel: 603-3168 3986 Fax: 603-3166 2599E-mail: [email protected]: www.teetronics.comContact Person: Mr Tee Beng HokBusiness: Manufacturing of automotive, electrical and electronics components.

Wong Gar Sim Electrical WorksNo. 22, Lot 526, Jalan Sabu, 95000 Sri Aman, Sarawak.Tel: 6083-322 159 Fax: 6083-322 159Contact Person: Mr Wong Gar SimBusiness: Electrical works and supplier.

Sparx Services Sdn BhdNo. 7, Jalan SS 26/8, Taman Mayang Jaya,47301 Petaling Jaya, Selangor Darul Ehsan.Tel: 603-7957 6773 Fax: 603-7957 9773E-mail: [email protected] Person: Ms Agnes Tee Lay YeongBusiness: Electrical services.

Syarikat Victoria LetrikP. O. Box 12692, 88830 Kota Kinabalu, Sabah.Tel: 6088-435 998, 435 989 Fax: 6088-439 131E-mail: [email protected] Person: Mr Lee Vui KenBusiness: Mechanical and electrical contractor.

Thiam Electrical Construction Sdn BhdLot 185, 1st Floor, Jalan Datuk Abang Abdul Rahim 4,93450 Kuching, Sarawak.Tel: 6082-482 036 Fax: 6082-482 037E-mail: [email protected] Person: Mr Chu Gwo JiunBusiness: Contractor for M&E services and works.

Wong Gar SimNo. 82, Jalan Foochew/Kejatau, 95000 Sri Aman, Sarawak.P. O. Box 17, 95000 Sri Aman, Sarawak.Tel: 6083-322 159 Fax: 6083-322 159Mobile: 019-817 8468Business: Electrical contractor and supplier.

Khoon Lee Electrical WorksNo. 88, Kenyalang Park, Jalan Chanwan, 93300 Kuching, Sarawak.P. O. Box A339, 93806 Kuching, Sarawak.Tel: 6082-332 635 Fax: 6082-335 636Contact Person: Mr Koh Bok HengBusiness: Electrical contract and installation.

Pierlite Malaysia Sdn BhdNo. 18, Jalan SS 4C/5, 47301 Petaling Jaya,Selangor Darul Ehsan.Tel: 603-7803 9888 Fax: 603-7803 9777E-mail: [email protected]: www.pierlite.comContact Person: Mr Jeffrey Ng Hoon TingBusiness: Trading of ballast, lighting poles, lighting, lamps and bulbs.

We deal with:- 1. Mechanical & Electrical Maintenance Works & etc. 2. General Electrical Wiring Works (Domectic & Industrial) 3. Control System Wiring 4. High & Low Voltage Overhead Installation and

Under Ground Cable 5. Public Road Lighting & Highmast Light 6. Special Lighting like Stadium and Area Flood Lighting,

Stage Lighting etc. 7. Uninterruptible Power Supply System 8. Genset Maintenance & Installation Works 9. Energy Management System10. Power Quality Audit

WE ARE REGISTERED WITH SURUHANJAYA TENAGA,CIDB & P. K. K.

SPECO BUMI ELEKTRIK SDN BHD(Incorporated in Malaysia - 46174 - W)

MAIN OFFICE : PT 2581, BANDAR BARU, 35800 SLIM RIVERPERAK DARUL RIDZUAN, MALAYSIA

TELEPHONE : 605-452 8915, 605-452 7980FAX : 605-452 9129EMAIL : [email protected]

[email protected]

BRANCH OFFICE : 28, PERSIARAN KILANG,KAWASAN PERINDUSTRIAN JELAPANG30100 IPOH,PERAK DARUL RIDZUAN, MALAYSIA.

TELEPHONE : 605-526 1028, 605-526 8028, 605-527 2028FAX : 605-526 2028EMAIL : [email protected] : www.specobumi.com

TEEAM offers Wiremen TrainingContact the Secretariat for details:

Tel: 603-9221 4417 E-mail: [email protected]: www.teeam.com

37

IET Malaysia presentsThe Presidential Lecture 2008

The Magic Roundabout - Cycles of Energy28th March 2008

Dewan Tunku ChancellorUniversity of Malaya

Jointly organised with:

The Electrical and ElectronicsAssociation of Malaysia

The Magic Roundabout - Cycles of EnergyBy John Loughhead BSc (Eng) MSc DIC ACGIExecutive Director, UK Energy Research Centre

The story of energy is one of cycles, from the largest to the smallest scales. From the nano-power stations embedded in plants,animals and even humans, to scheme on a geological scale, the range is striking. In this talk we shall explore these cycles, how theyare a history of engineering and science, and how they might develop as we look for a new means of energy supply.

The original development of reliable energy supply is one of the greatest achievements of science and engineering. It is the foundationof advanced economies today. It was also a key driver of the emergence of engineering, firstly through need for energy and transport,and then in opening up the development of novel devices which exploited the exciting new possibilities of electricity.

Recently however growing evidence from environmental scientists have shown that the burning of fossil fuels that provide most ofthis energy is leading towards potentially damaging changes in weather patterns threatening to alter the very basics of our lives.

Among the responses to this has been a large increase in research efforts to find new means of sourcing and delivering energy withmuch reduced impact on the environment. If this is successful could we be returning to the energy sources of 200 years ago, thosewhich when replaced by fossil fuels were found to have been the limiting factors on industry and society?

If we are, what can new scientific insights and modern engineering technology do to stop a cycle back to the lower living standardsof the early 19th century?

Programme8.30 am Registration9.35 am Arrival of Minister of Energy, Water and Communications, Malaysia9.40 am Welcome address by Chairman, IET Malaysia9.45 am Opening address by Minister of Energy, Water and Communications, Malaysia10.00 am Introduction of Speaker by Director of Trade & Investment, British High Commission, Kuala Lumpur10.05 am Lecture starts12.00 noon Adjournment

The programme is subject to change.

Registration by 21st March 2008-Free Admission

• Call IET Malaysia Network at +603-5635 3368• Email your full particulars to [email protected]• Fill out the registration form and fax to +603-5636 0368. Form can be downloaded from www.teeam.com or www.theiet.org.my• Fill out the registration form and post it to: IET Malaysia Network, 92B, Jalan SS15/4, 47500 Subang Jaya

British High CommissionKuala Lumpur

39

par tne rs i n sc ience

TEEAM 50th ISSUE

Malaysian companies and households can collectively savemillions of ringgit a year by using electricity moreefficiently. As the economy of the country expands and

the standard of living rises, there will be an increasing demand forenergy-consuming products, not only for the industrial and buildingsector but also for the domestic sector. This will add to the alreadyincreasing demand for energy. The obvious solution would be toincrease energy supply and capacity but there is a better alternative,that is a combination of supplying more energy and improving theefficiency of energy consumption.

One of the easiest ways to achieve energy efficiency is through theuse of energy efficient appliances. Although they may cost slightlymore, the use of energy efficient appliances will more than pay backthe extra costs involved from the savings in energy costs when usedover a period of time. Using electricity more efficiently is the key tosatisfying rising needs for energy in industries and businesses to sustaineconomic growth in Malaysia. Energy efficiency is the most practicaland least expensive solution to meet the country’s growing energyneeds, especially in the industrial, transport and commercial sectors.

Malaysia has more than 10,000 small and medium-sized enterprises(SMEs). It is estimated that these companies use a combined 19 millionfluorescent tubes. There are more than 3,000 buildings in the country,and the buildings use about 7.5 million fluorescent tubes. Theimplementation of energy-efficient lighting would help SMEs saveup to RM147 million a year in their electricity bills.

For residential consumers, the potential saving is even higher. If 5.5million households in the country replace three 60W incandescentlamps with three 11W CFLs (Compact Fluorescent Lamps), this wouldlead to energy savings of up to 80 per cent, or close to 1.5 billionkWh. Residential consumers could save up to a total of RM 400million every year if they switch to energy-efficient lighting.

Malaysia needs to encourage businesses and homes to use energy-efficient products, so that electricity supply companies can more easilymeet the demand of other sectors, avoiding costly investment in newfacilities. At the same time, they reduce the environmental impact ofnew power plants and improve public image.

Another potential area for energy-saving is through more efficientcooling systems which could save up to 40 per cent of energy inbuildings. The demand for computing horsepower at most businessesis skyrocketing. But as energy costs rise, the sheer volume of hardwarenecessary to keep up with that demand is driving data centre powerconsumption budgets through the roof. Power utilisation, coolingoptimisation and preventative maintenance strategies can help deliversaving. By focusing on key areas and taking proactive steps,companies can cut costs and increase data centre efficiency. It is timefor companies to go green and adopt more environmental methods toreduce operational cost and ensure that the business backbone isprotected and always running.

Know Your Lamps

Incandescent LampsGenerate a high amount of heat and are typically used with arating of 60W. They are inefficient artificial light source and

their light intensity efficiency is about 18 lumens/watt.

Fluorescent LampsGenerate bright light and are most often used with a rating of

32W/36W. These lamps come together with ballasts, normallyrated at 8W loss, although low ballasts (up to 6W) or high

frequency electronic ballasts (nominally less than 2W) are alsoavailable.

Compact Fluorescent LampsCompact fluorescent lamps with power consumption of 9W have

equivalent bright light compared to incandescent lamps withpower consumption of 60W. Light intensity efficiency of

compact fluorescent lamps is about 60 lumens/watt. Theselamps are fairly expensive, but they last up to 8 times the typicalincandescent lamp and use only about 20% of the energy to emit

the same amount of light.

Energy-Saving Tips

Products Saving per Saving permonth (RM) year (RM)

LightingIf one 60W bulb used 4 hours per day, 1.11 13.37is replaced by one energy-saving bulb.

Air ConditionerUsing a 1 hp air conditioner with a loadrating of 850W instead of one with a rating 4.00 48.00of 950W for 6 hours a day.

Washing MachineIf daily partial load wash is reduced 3.08 37.00to three full load wash per week.

FreezerIf temperature is set at -18°C instead of -21oC. 1.09 13.08

Choosing a chest freezer as instead 4.00 48.00of an upright freezer.

TelevisionThe electricity consumption for standby caneasily run up to 100 kWh per year equivalent 1.82 21.80to RM 22.00.

Lighten Your Energy Bill

One full load wash per week will cost RM 0.18. If daily wash isdone on partial load, the cost per week is RM 0.18x7 = RM 1.26per week. Washing three times a week on full load will saveabout RM37.00 per year.

If the temperature of the freezer is correctly adjusted to -18°Cinstead of -21°C, a saving of 60kWh per year can be obtained,equivalent to RM13.00 per year.

Source: NST Biznews published on 23rd January 2007.

41

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TEEAM 50th ISSUE

Informative reference materials are available in our Library. The Library is opened to members from 9:00 am to 5:45 pm, Monday to Friday.

New Books in Our Library

Title : AKLI DirectoryPublisher : The Association of Indonesia

Electrical and MechanicalContractors

Title : Berita FMMNovember-December 2007 &January-February 2008

Publisher : Federation of MalaysianManufacturers

Title : Berita KLSCCCI,October & December 2007

Publisher : The Chinese Chamber ofCommerce & Industry ofKuala Lumpur and Selangor

Title : Energy Efficiency andConservation Guidelines forMalaysian Industries

Publisher : Malaysia Energy Centre (PTM)

Title : Electronics Electrical &Supporting Industries,Asia Edition 2008

Publisher : Asian Trade Press Pte Ltd

Title : EUMCCI Review January 2008Publisher : EU-Malaysia Chamber of

Commerce & Industry

Title : HKECA NewsletterPublisher : Hong Kong Electrical

Contractors’ Association

Title : IEEMA Journal,December 2007 &February 2008

Publisher : India Electrical and ElectronicsManufacturer Association

Title : IEEMA Members’ Directory2008

Publisher : Indian Electrical and ElectronicsManufacturer Association

Title : MASSA News,September 2007

Publisher : Malaysia South-SouthAssociation

Title : Master Builders Journal,3rd Quarter 2007

Publisher : Master Builders AssociationMalaysia

Title : MGCC Quarterly,January & February 2008

Publisher : Malaysian-German Chamber ofCommerce and Industry

Title : SIRIM Link, 3/2007 & 1/2008Publisher : SIRIM Berhad

Title : SMI/SME Business DirectoryPublisher : SMI Association of Malaysia

Title : SUARA Perunding,Third & Fourth Quarter 2007

Publisher : Association of ConsultingEngineers Malaysia

Title : SPECS Currents,Issue 2/2007

Publisher : The Society of PhilippinesElectrical Contractors &Supplies, Inc.

Title : The Ingenieur,December 2007– February 2008

Publisher : Board of Engineers MalaysiaTitle : The Strategist,

January 2008Publisher : Asian Strategy & Leadership

Institute

Title : TradeMart,October – November 2007

Publisher : Malaysia External TradeDevelopment Corporation

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Introduction

The World Trade Organisation (WTO)was established on 1st January 1995.The WTO replaced the General

Agreement on Tariffs and Trade (GATT)following the conclusion of the UruguayRound of trade negotiations in 1994. Whilethe GATT established rules for trade in goods,the WTO also encompasses other trade-relatedareas such as services and intellectual propertyrights.

Malaysia is a founding member of the WTOby virtue of its membership in the GATT since1957.

WTO provides benefits to its Members throughthe establishment of an international tradingenvironment which is transparent andpredictable. These benefits are secured throughthe implementation of Members’ obligationsin the form of trade rules and market accessnegotiated on a multilateral basis. As a majortrading nation, transparency and predictabilityin trade rules are important to Malaysia.

Malaysia is able to comply with its WTOobligations as it has:

• already adhered to multilateral trading rulesas a Member in the GATT;

• continuously been undertaking voluntaryreduction and elimination of tariffs toenhance Malaysia’s competitiveness; and

• adopted open and transparent trade policiesand measures over the years.

The Ministerial Conference which is held atleast once every two years is the supreme bodyof the WTO. It comprises representatives ofall Members and functions to oversee theimplementation of Members’ obligations aswell as the negotiations of new agreements.The day-to-day business of the WTO isconducted by the General Council whichcomprises representatives of all Members tothe WTO who are usually at Ambassadoriallevel or the equivalent. It has authority to acton behalf of the Ministerial Conference andoversees the operations of agreements andministerial decisions. This includes functioningas a body to settle trade disputes betweenMembers and as a forum for Members toexamine each others’ trade policies. TheGeneral Council also oversees matters relatingto trade in goods and services as well as trade-related aspects of intellectual property rights.

WTO PrinciplesMost-Favoured-Nation (MFN) Treatment

MFN treatment is the principle of non-discrimination among Members, requiring all

Malaysia and the WTOThis article is aimed to provide an understanding on the WTO system and its implications to Malaysia.

It is hoped that TEEAM members will take a keen interest in WTO issues and reap the benefits from its rulesand disciplines as well as the market access opportunities created under the WTO.

Members to be treated equally. There arehowever, some exceptions to this principle.For instance, preferential duties are allowedfor Members of regional trading arrangementsor preferential schemes such as theGeneralised System of Preferences (GSP).Members are also allowed to raise barriersagainst those involved in unfair tradepractices. These exceptions are allowed onlyunder strict conditions.

National Treatment

National treatment stipulates that domesticgoods and foreign products should be treatedequally. It prohibits discrimination betweenimported products and equivalentdomestically-produced products, both in thelevy of internal taxes and in the applicationof internal regulations. Imposition of importduties on foreign products is not a violationof the national treatment principle.

Transparency

Notifications requirements as provided for inspecific WTO agreements are means toachieve the objective of guaranteeing thefullest transparency possible in the tradepolicies of its Members in the area of goods,services and the protection of intellectualproperty rights. In addition, the Trade PolicyReview Mechanism of the WTO provides anopportunity for the examination andclarification of the trade policies and practicesof Members.

Special and Differential Treatment

The WTO recognises that Members are atdifferent levels of development. The WTOagreements provide flexibility as part of thespecial and differential treatment todeveloping countries. This could be in theform of longer transition periods or lowerlevels of market access commitments.

Trade in GoodsTariffs

In principle, the WTO allows Members touse tariffs as a means of protecting domesticindustries. The WTO allows members todetermine their own tariff rates for all typesof products within the jurisdiction of theirnational policies. Members can imposetariffs and make amendments to them inaccordance with their respective nationalpolicies. However, the WTO requires everyMember to have the tariff rates published sothat other Members and interested parties arefully aware of them. The WTO alsoprescribes that once a tariff has beendetermined for a product, it has to be applied

uniformly to that particular product importedfrom any other Member country accordingto the MFN principle.

WTO Members have agreed, throughnegotiations, to bind tariffs at particular levels.The bound levels are recorded in a table thatis called the “schedule” of a Member.Members can raise tariffs at any time only upto the bound levels or on products that are notbound. However, Members can raise thattariff over the bound rate for products coveredunder the binding commitments, if they canoffer compensatory concession on some otheritems.

Examples of Members’ Average BoundTariffs Negotiated Under the UruguayRound

Member Average Bound Tariff (%)Australia 9.9Brazil 30.8Canada 5.3China 9.1Egypt 28.3EU 3.9Hong Kong 0India 34.3Indonesia 35.6Japan 2.31Malaysia 4.93Mexico 4.9Norway 3.12Philippines 3.43Pakistan 5.3Switzerland 0Thailand 24.2US 3.2

Additional tariffs can be imposed on importedproducts if there is a significant increase inthese imports and it is proven that there ismaterial injury to domestic industriesproducing like products. These additionalduties are referred to as anti-dumping duties.

Quantitative Restrictions

The WTO generally prohibits quantitativerestrictions on the importation or exportationof any product. An example of a quantitativerestriction is the import quota.

The rationale behind the WTO’s prohibitionof quantitative restrictions is that they arehighly restrictive and likely to distort trade.The use of quantitative restrictions by animporting country restricts exports of theexporting country in excess of the importquota no matter how price competitive theirproducts may be.

The WTO however, provides exceptions tothis principle. Members can use quantitativemeasures under limited conditions such as

47


No. 22 & 22A, Jalan Anggerik Vanila 31/93, Kota Kemuning, 40460 Shah Alam, Selangor, Malaysia.Tel: +603-5122 0029 Fax: +603-5122 0079Email: [email protected]/[email protected]: www.tms.com.my

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critical shortages and balance of paymentproblems.

AgricultureThe Agreement on Agriculture establishes along-term reform programme in worldagriculture trade, with the objective ofreducing the use of export subsidies as wellas trade distorting domestic subsidies. TheAgreement contains several specificcommitments in terms of market access,domestic support, export subsidies as wellas disciplines on sanitary and phytosanitarymeasures that have to be implemented withinsix years by developed countries and 10 yearsby developing countries from 1st January1995.

General Agreement on Trade inServices (GATS)The General Agreement on Trade in Services(GATS) is a set of multilateral rules coveringinternational trade in services. These includeservice sectors such as financial services,professional services, transport,communications, construction anddistribution.

Unlike trade in goods where border measuressuch as tariffs are the main instrument used,trade in services is primarily governed bydomestic regulation on the delivery and supplyof services. Domestic regulation allowssafeguards for domestic industries, with policyspace to protect local culture and tradition andconsumer interests.

There are four modes of supply for servicesspecified by the GATS:

• Cross border (Mode 1)- services supplied from one country to

another (e.g. telecommunications, mail,services offered through the internet).

• Consumption abroad (Mode 2)- consumers or firms making use of a service

in another country (e.g. tourism, studentsstudying overseas).

• Commercial presence (Mode 3)- A foreign company setting up subsidiaries

or branches to provide services in anothercountry (e.g. establishment ofcorporations, joint ventures, representativeoffices).

• Presence of natural persons (Mode 4)- Individuals travelling from their own

country to supply services in anothercountry (e.g. consultants, doctors, lawyers,interpreters).

GATS provides General Obligations andSpecific Commitments within whichliberalisation are to be undertaken andimplemented.• General obligations include MFN treatment,

irrespective of whether or not commitmentshave been made in that sector.

• trade balancing requirements that limit theuse of imported products in proportion tolocal products exported;

• domestic sales requirements that limitimported products in relation to totaldomestic sales;

• technology transfer requirements thatstipulate an investor to share technology;and

• export performance requirements thatspecify percentage of production volume forexports.

The Agreement on TRIMS which took effecton 1st January 1995 prescribes that measureswill be eliminated within:

• two years by a developed country Member;• five years by a developing country Member;

and• seven years by a least developed country

Member.

If a developing country member or a leastdeveloped country member faces particulardifficulties in eliminating these measuresaccording to this schedule, it may request foran extension of transition period. The Councilfor Trade in Goods will consider this request,taking into account the individualdevelopment, financial and trade needs of themember, and may extend the period.

Technical Barriers to Trade(TBT)The Agreement on Technical Barriers to Trade(TBT) provides that mandatory productstandards should not be applied by countriesso as to cause unnecessary obstacles tointernational trade. It states that countrieshave the right to adopt the standards theyconsider appropriate to protect human, animal,plant life, health and environment. Productstandards should be based on scientificinformation and evidence.

Mandatory product standards should be basedon internationally agreed standards. Whereit is not possible for member countries to basetheir mandatory regulations on internationalregulations, they are obliged to publish theseregulations in draft form to give producers inother countries an opportunity to comment onthem. The Agreement also obliges membercountries to take such comments intoconsideration when the standards are finalised,thus ensuring that the characteristics ofproducts produced in, and exported by, othercountries are taken into account.

Voluntary standards where compliance is notmandatory, may also pose problems ininternational trade if they differ widely fromcountry to country. The TBT Agreementtherefore urges countries to do their best inrequiring national standardising bodies to usethe same principles and rules in preparing andapplying voluntary standards as are laid downfor mandatory standards.

• Specific Commitments are sectoralcommitments that are made to specificsectors.

Each Member’s commitments are included inthe respective schedules of commitments ofthe Members. Members may withdraw ormodify their schedule of specificcommitments only if they are prepared to offerequivalent concessions.

The GATS also provides for improvementsto the initial commitments throughnegotiations in successive rounds five yearsafter the GATS became applicable. Theobjective is to achieve progressively higherlevel of liberalisation in services sectors.

Trade-Related Aspects ofIntellectual Property Rights(TRIPS)Prior to the WTO, protection of intellectualproperty rights (IPR) was on a voluntary basisby virtue of membership in IPR conventionssuch as Berne, Paris, Rome or WorldIntellectual Property Organisation. TheAgreement on Trade-Related Aspects ofIntellectual Property Rights (TRIPS) builtupon these Conventions to provide forminimum standards of protection andenforcement based on basic principles of non-discrimination. TRIPS Agreement ensuresthat WTO Members give protection tointellectual property rights in their ownterritories and enforce them through nationallaws pertaining to copyright, trademark,geographical indications, industrial designs,patents and integrated circuits layout designs.

When the WTO agreements took effect on 1stJanuary 1995, developed countries were givenone year to ensure that their laws and practicesconform to the TRIPS Agreement.Developing countries and transitioneconomies were given five years while leastdeveloped countries have 11 years.

Trade-Related InvestmentMeasures (TRIMS)Trade-related investment measures arerestrictions imposed by governments oninvestors. These restrictions are normallydesigned to protect and foster domesticindustries and to prevent the outflow offoreign exchange reserves.

In the WTO, the Agreement on TRIMSprohibits the imposition of domestic rules,procedures and measures that restrict tradeand investment. Examples of theserestrictions include:

• local content requirements that require locally-produced goods to be purchased or used;

• manufacturing requirements that certaincomponents must be domesticallymanufactured;

..... Continue Malaysia and the WTO

7549


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There are two categories of prohibitedsubsidies. They are subsidies contingentupon:• export performance; or• the use of domestic over imported goods.

(ii) Actionable Subsidies (Amber Box)Actionable subsidies are not prohibited butmay be subject to the remedies if they causeadverse effects, such as “serious prejudice”to other countries.

(iii) Non-Actionable Subsidies (Green Box)Non-actionable subsidies are subsidiespresumably protected either because theyare considered extremely unlikely to causeadverse effects or because they areconsidered to be of particular value and notto be discouraged. They are:• Research subsidies;• Assistance to disadvantaged regions; and• Environmental subsidies.

SafeguardsThe Agreement on Safeguards authorisesimporting countries to restrict imports ontemporary basis, if it is established thatimports are occurring in increased quantitiesand cause serious injury to the domesticindustry that produces like or directlycompetitive products. Such measures, whichcould take the form of an increase in tariffsover bound rates or the imposition ofquantitative restrictions, should normally beapplied on an MFN basis to imports from allsources. Members affected may seekcompensation from the member imposing thesafeguard measure.

The primary purpose of providing suchtemporary increased protection is to allow theaffected industry time to adjust to theincreased competition that it will have to faceafter the restrictions are removed.

The Agreement seeks to ensure that suchmeasures are applied only for temporaryperiods by setting a maximum period of eightyears for the application of a measure on aparticular product. Developing countries can,however, impose them for a maximum periodof ten years.

Customs ValuationThe Agreement for Customs Valuationsprovides a more objective and uniform set ofrules and procedures to determine the customsvalue of imported goods. The determinationof the customs value is essential in calculatingthe duty to be paid on imported goods.

Rules of OriginThe Agreement on Rules of Origin allows WTOMembers to continue using their national rulesof origin until new harmonised rules areestablished. These rules however, must betransparent, do not have restrictive, distortive

or disruptive effects on international trade.They must also be administered in a consistent,uniform, impartial and reasonable manner.

“Rules of origin” are the criteria used to definewhere a product was made. They are anessential part of trade rules because a numberof policies discriminate between exportingcountries in terms of quotas, preferentialtariffs, anti-dumping actions andcountervailing duty.

Import Licensing ProceduresThe Agreement on Import Licensingprocedures specifies that import licensingshould be made simple, transparent andpredictable. It also stipulates thatgovernments imposing import licensingmechanism to publish rules and informationconcerning procedures for the submission ofapplications, including the eligibility criteriafor applicants, the administrative bodies to beapproached and lists of products subject toimport licensing 21 days prior to the effectivedate of the requirement.

Other obligations contained in the Agreementinclude notification to the WTO of changesin existing import licensing procedures andintroduction of new ones.

Dispute SettlementUnderstanding (DSU)The rights and obligations of WTO Membersare enforced through the dispute settlementprocess under the Understanding on Rules andProcedures Governing the Settlement ofDisputes (DSU).

The DSU provisions emphasise theimportance of consultations in securingdispute resolution, requiring a member to enterinto consultations and settlement of disputewithin a specified time frame. The partiesmay voluntarily agree to follow alternativemeans of dispute settlement, including goodoffices, conciliation, mediation andarbitration.

The DSU procedure underscores the rule oflaw, and it makes the trading system moresecure and predictable. It is clearly structured,with timetables set for completing a case.Rulings are made by the Panel comprisingbetween three to five experts functioning intheir individual expertise. Decisions of thePanels may be appealed to the Appellate Bodyon points of law. All final rulings or decisionsare adopted by the WTO’s full membership.

Implementation of Malaysia’sObligations and CommitmentsGeneral ObligationsThe general obligations under the WTOagreements include:

Sanitary and PhytosanitaryMeasures (SPS)The Agreement on the Application of Sanitaryand Phytosanitary (SPS) Measures aims toprotect human, animal or plant life or healthfrom pests and diseases that may be broughtin by imported agricultural products. TheAgreement provides rules that are similar tothose applicable to mandatory productstandards under the Agreement on TBT.Unlike TBT, the Agreement on SPS permitscountries to apply measures on adiscriminatory basis, taking into account suchfactors as the differences in the level ofprevalence of specific diseases or pests. TheSPS Agreement further permits countries totake measures to restrict imports on aprovisional basis, as a precautionary step, incases where there is imminent risks of thespread of diseases, but the “scientific evidenceis insufficient”.

Anti-Dumping (AD)Dumping is a situation of international pricediscrimination i.e. when the export price of aproduct is lower than its selling price in themarket of the exporting country (normalvalue). Dumping is identified by comparingprices in two markets.

The AD Agreement comprises substantiverules governing the determination of dumping,injury and causal link and detailed proceduralrules for the initiation and conduct ofinvestigations, the imposition of measures andthe duration and review of such measures.Measures that can be imposed include anti-dumping duties and price undertakings.

Anti-Dumping Agreement provides for actionto be taken by members that requires thedetermination of three elements:

• existence of dumping;• existence of injury; and• causal link between the two.

Subsidies and CountervailingMeasures (SCM)The Subsidies and Countervailing MeasuresAgreement (SCM) recognises thatgovernments utilise subsidies to attain variouspolicy objectives. However, it restrains therights of governments to grant subsidies thatcan lead to unfair trade.

Only subsidies provided specifically to anenterprise or industry or group of enterprisesor industries are subject to the disciplines inthe SCM Agreement. This is because non-specific or widely available subsidies withinan economy are presumed to be less tradedistortive.

Categories of Subsidies

(i) Prohibited Subsidies (Red Box)


7551

TEEAM 50th ISSUE

• Binding of tariffs on 6,741 tariff lines(products) comprising 5,531 non-agriculturaland 1,210 agricultural products accountingfor 64% of Malaysia’s tariff lines. Theaverage bound tariff rate for Malaysia is14.9%. This compares favourably with theaverage bound rate other developingcountries such as Thailand (24.2%),Philippines (23.4%), Egypt (28.3%), India(34.3%), and Mexico (34.9%).

• Reduction of import duties on 528 itemswhich include electronic, chemical andtextile products. The reductions were inexchange for tariff reductions offered byother members for products of exportinterest to Malaysia such as consumerelectronics, textiles, rubber products andwood based products. The commitmentswere fully implemented by 2000.

• Reduction of tariffs on agricultural productsby an average of 24% over a period of 10years starting from 1995. Malaysia, as adeveloping country, was allowed to makelower commitments than developedcountries, which had to reduce tariffs by36% and over a shorter period of six years.Malaysia’s tariffs on most agriculturalproducts were already low or duty free.

• Elimination of duties in stages forinformation technology products under theInformation Technology Agreement (ITA).Being a party to the ITA, supportsMalaysia’s wider objective of encouraginggreater use of information andcommunication technology. Globalliberalisation under the ITA provides betterexport potential for IT products.

ii) Services

Malaysia’s commitments in the servicessectors were a result of bilateralnegotiations in the Uruguay Round. Thesecommitments include allowing foreignparticipation in the services industry. Thelevel of market access offered however issubject to several conditions, whichinclude:

• limitations on foreign equity participation;• foreign suppliers are allowed to establish

commercial presence only through jointventures with local firms; and

• limitations on the number of foreignpersonnel allowed to provide services.

Malaysia’s offer encompassed:• Business and Professional Services• Communication Services• Construction and Related Engineering

Services• Financial Services• Health-related Social Services• Tourism and Travel-related Services• Recreational, Cultural and Sporting Services• Transportation Services• Skills Training Services

The Ministries and agencies responsible forthe implementation of WTO Agreements isas in Annex 1.

Doha Development AgendaThe WTO Ministerial Conference takes placeat least once in two years to review andestablish the work programme of the WTO.The Fourth WTO Ministerial Conference heldin Doha on 9th-14th November 2001 agreedon the Doha work programme of the WTO.The programme, also known as the DohaDevelopment Agenda, includes:

• negotiations on agriculture, services,industrial tariffs, intellectual property,environment, and dispute settlement; and

• clarification of elements for a possiblemultilateral framework or rules oninvestment, competition policy,transparency in government procurementand trade facilitation.

Ministers also agreed that addressingproblems and concerns of developingcountries would be a major part of the workprogramme to provide an opportunity for theWTO to review and strengthen rules that havenot been operationalised or provided benefitsto developing countries. Some of themeasures to address the concerns ofdeveloping countries include granting of bettermarket access opportunities and technicalassistance in capacity building.

AgricultureNegotiations are aimed at further reform inagriculture to make it more market-oriented.The reform process will be undertaken in thethree main areas, namely, market access,domestic support and export subsidies. Onmarket access, further tariff reduction andexpansion of minimum access opportunitieswill be negotiated. On domestic support, therewill be disciplines on the use of governmentassistance to farmers. Such governmentassistance should not lead to trade distortion.Negotiations on export subsidies aim to furtherlimit or eliminate the use of subsidies forexports of agricultural products.

The agreed modalities will be the basis forMembers to offer commitments to improvemarket access and reform their agriculturesector so that the use of trade distortingmeasures are reduced or eliminated.

Malaysia seeks greater commitments from themajor users to eliminate export subsidies.Stronger disciplines are also needed to ensuredomestic subsidies do not lead to tradedistortion. Malaysia is also seeking flexibilityto use policy measures including governmentsupport to pursue development goals such aspoverty reduction and rural employment.

Non Agriculture Market Access (NAMA)Tariff negotiations in the WTO are animportant avenue to seek better market accessopportunities for Malaysian products in boththe developed and developing countries.Although the average tariffs of mostdeveloped countries are low, ranging from3.5% - 8%, tariff peaks in selected productsand tariff escalation exist in these markets.

i) Enactment or amendment of domesticlegislationCountervailing and Anti-Dumping ActMalaysia enacted the Countervailing andAnti-Dumping Act in 1993. The Act wasamended in 1998 to meet WTOrequirements and allows the Governmentto take remedial measures against unfairtrade practices such as dumping andsubsidised products.

Intellectual Property RightsMalaysia already had in place a systemof protection for intellectual propertyrights even before becoming a memberof the WTO. Recognising the importanceof protecting trademarks, designs andpatents as an incentive for innovation,technology and research, IPR protectionin Malaysia was progressively legislatedfrom 1976.Various Acts on intellectual property rightswere amended or introduced to complywith the requirements of the WTO, forexample:• amendments to Industrial Design Act

1996, Trade Marks Act 1976, Patents Act1983, Copyright Act 1987; and

• introduction of Layout Design forIntegrated Circuits Act 2000 andGeographical Indications Act 2000.

ii) Establishment of enquiry pointsEnquiry points were established to enableother members to seek clarification orconsult on issues relating to standards andsanitary and phytosanitary (SPS) measures:• SIRIM is the enquiry point for technical

regulations; and• Ministry of Agriculture and Agro-based

Industry and Ministry of Health areenquiry points for SPS measures.

iii)Periodical notification of new legislationon trade and measures that affect theinterest of trading partners• Malaysia has notified the WTO of its

standards and SPS transparency andcompliance by Malaysia’s tradingpartners.

• Other countries have also notified theirmeasures, which allow Malaysianexporters to make the necessaryadjustments to meet the requirements.

Specific Commitments

i) Market access for goodsAs a developing country, Malaysia was notrequired to make major commitmentsduring the Uruguay Round (UR)negotiations. Malaysia already had a liberaland open import regime even before the URnegotiations. On its own accord, Malaysialiberalised its import regime by reducingduties on many products beyond its WTOcommitments.

Malaysia’s specific commitments include:


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TEEAM 50th ISSUE

rules. Trade restrictions are not always thebest solutions to resolve environmentalproblems and international cooperation topromote development, transfer of technologyand technical assistance may be a better meansof dealing with global environmentalproblems.

Trade-Related Aspects of IntellectualProperty Rights (TRIPS)

The TRIPS Agreement provides forIntellectual Property Rights (IPR) protectionand also allows exceptions to these rightsthrough the issuance of compulsory licenseto produce goods without authorisation fromIPR owners. This provision is meant toprovide adequate level of flexibilities tocountries in terms of ensuring access tomedicines at affordable prices. TheDeclaration on the TRIPs Agreement andPublic Health adopted at the Fourth WTOMinisterial Conference further clarified theflexibilities available in the TRIPs Agreementfor Member countries to import or exportpatented drugs towards fulfilling public healthobjectives.

While Malaysia is not averse to theestablishment of a multilateral system ofnotification and registration of geographicalindications for wines and spirits, such a systemshould not become burdensome or costly.

Trade Facilitation

Negotiations on multilateral rules for tradefacilitation are aimed at clarifying, improvingand further expediting the movement, releaseand clearance of goods, transparency andpublication of trade regulations andenhancing technical assistance and capacitybuilding.

Traders from both developing and developedcountries have raised concerns that customsprocedures and requirements often lacktransparency and are vastly duplicative inmany areas. Discussion on trade facilitationis also aimed at establishing cooperationbetween traders and government agenciesincluding through a harmonised system forclearance of goods and simplification of tradeprocedures.

Malaysia is fully supportive of efforts in theWTO to develop multilateral rules on tradefacilitation as these measures would aim tospeed up delivery of goods, simplify customsprocedures and reduce transaction costs.

National Consultations

The Government has regular consultationswith the relevant Ministries, agencies,academicians, private sector and otherstakeholders to discuss and formulateMalaysia’s position on issues under the DohaDevelopment Agenda. To facilitate thedomestic consultative process theGovernment has established the NationalCommittee on Multilateral Trade Negotiations(MTN), headed by the Ministry of

International Trade and Industry. Workinggroups that have been established to assist theMTN Committee include:

• Working Group on Agriculture;• Working Group on Services;• Working Group on Non-Agriculture Market

Access (NAMA);• Working Group on Trade and Environment;• Working Group on Trade Related Aspects

of Intellectual Property Rights (TRIPs);• Working Group on WTO Rules; and• Working Group on Trade Facilitation.

ConclusionThe WTO agreements provide the legalground rules for the conduct of internationaltrade. However, the WTO does not requireMembers to remove all barriers to trade andeach Member is free to determine its own traderegime. Members have the right to takemeasures on legitimate grounds to pursuedevelopment goals, and pursue remedialactions when faced with unfair trade practices.

The WTO promotes global trade throughmarket opening measures and throughstrengthening of existing or establishment ofnew rules. These rules:

• provide transparency, security andpredictability;

• prevent adoption of unilateral measures; and• provide remedies for unfair trade practices

through the dispute settlement mechanism.

Membership in the WTO, and the GATTpreviously, has contributed to Malaysia’seconomic growth. The lowering of tradebarriers in the export markets and increasedmarket opportunities has allowed Malaysia’sexports to grow. The opening of Malaysia’smarket has encouraged inflows of foreigndirect investment and injected competitiveelements into domestic industries.

One of the major benefits enjoyed by Malaysiais the non-discriminatory treatment ofMalaysian products in the markets of WTOMembers. Any concessions granted by aMember to any other Member will also beaccorded to Malaysia.

The WTO rules also provide for a morecompetitive business environment bydiscouraging “unfair” trade practises such asdumping products below cost to gain marketshare. Malaysia has used anti-dumpingactions as a trade remedy against suchpractices that caused injury to domesticindustries.

Through active participation in WTOnegotiations, Malaysia will continue to ensurethat trade regulations and trade measures thatare negotiated are fair and provide theflexibility for Malaysia to implementdevelopment objectives and policies.

Source: Ministry of International Trade andIndustry, Malaysia.

Tariff peaks refer to relatively high tariffs thatare usually imposed on sensitive products.Tariff escalation refers to the imposition ofhigher duties on products that have beenprocessed or semi-processed compared to rawmaterials. This practice protects domesticprocessing industries in the importingcountries and discourages the development ofprocessing activity in the countries where rawmaterials originate.

Issues pertaining to market access must beseriously addressed since the Malaysianeconomy is highly dependent on trade, withvalue of exports equivalent to 98% of GDP in2006. Trade expansions, facilitated bymultilateral rules and a liberal environmenthave contributed to the overall economicgrowth of the country. Malaysia will be fullyengaged with all its trading partners to seekfurther liberalisation for products of interestto Malaysian exporters. Sufficient flexibilitieswill be sought to assist domestic industry thatrequire tariff protection.

Services

The negotiations aim to further liberalise tradein services. The main approach to achievethis is through the bilateral request and offerapproach by trading partners. The offersexchanged bilaterally will be open to all otherMembers of the WTO.

Malaysia’s participation in the servicesnegotiations provides an opportunity forMalaysian services providers to seek marketaccess in both established and newly emergingmarkets.

Malaysia will continue to examine carefullyall requests from trading partners and thatcommitments to liberalise the services marketwill be guided by the principle of progressiveliberalisation. Market access for foreign serviceproviders will be allowed only in sectors wheredomestic suppliers are ready to compete andcontribute to development of the sector.

Environment

Malaysia attaches importance toenvironmental protection. This is reflectedthrough our membership in many of themultilateral environmental agreements(MEAs) such as the Convention onInternational Trade in Endangered Species ofWild Fauna and Flora (CITES), the MontrealProtocol and the Kyoto Protocol.

The WTO rules allow for measures to be takento safeguard the environment. These measureshowever should not be discriminatory or usedas a disguised form of protection. The currentnegotiations in the WTO are aimed at ensuringthe mutually supportive relationship betweentrade and environment.

Malaysia and many other countries havemaintained that existing rules in the WTO aresufficient to deal with environmentalproblems. Malaysia is now examining thisissue further and seeking clarification on these


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