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President’s Speech / Report – 21st Annual General Meeting
Published March 28, 2018

 PRESIDENT’S SPEECH / REPORT

ASSOCIATION OF MARINE INDUSTRIES OF MALAYSIA (AMIM)

 21st Annual General Meeting

26th March 2018

Istana Hotel, Kuala Lumpur

 

 

Bismillahirrahmanairrahim

Members of the Management Committee, ladies and gentlemen,

Assalamualaikum Warahmatullahi Wabarakatuh, salam sejahtera, Salam 1Malaysia and a very good afternoon to all of you..

On behalf of the Management Committee, I would like to extend a very warm welcome to all present at this 21st Annual General Meeting of the Association of Marine Industries of Malaysia (AMIM), especially to those from Sabah and Sarawak for making the effort to attend today’s meeting.

Your attendance here today stands testimony to your strong support towards the association and your commitment to help develop Malaysia’s marine industries towards greater heights. We hope with your drive and enthusiasm, AMIM can remain at the forefront to spearhead our nation’s drive to become a globally competitive maritime nation.

I am also very happy to welcome new members to the AMIM family who are attending our AGM for the first time. This is a result of members promoting the association to others in the industry and also the enthusiasm of many companies to join this association which is the premiere grouping for the industry in Malaysia. As at today, we have 120 Ordinary members and 5 Associate members, giving a total of 125 members. That’s an encouraging figure but we certainly hope to add more members to our association.

 

Ladies and gentlemen,

As you are aware, this 21st AGM is held in lieu of the one which we did not hold an AGM in 2017.  We will have another AGM for 2018 before October, as stated in our Rules and Regulations, during which we will elect new office bearers for our association.

Allow me now to share with you the activities of the Association during the tenure of the Management Committee in 2016/2017. I am pleased to note that despite the challenging times we face in the industry, and despite the limited resources available at the association’s disposal, we have managed to remain active and relevant to industry players.  We hope to continue to remain active amid these testing moments for our industry and organize events and activities which are of benefit to our members and other stakeholders.

Highlights of our activities in 2016 include :

  • Participating in the MIDA/MIGHT Dialogue on Current Development, Issues and Challenges in Malaysia’s SBSR Industry at MIDA HQ in Kuala Lumpur.
  • Co-organizing with Japan External Trade Organization (JETRO), a business matching forum featuring members of AMIM and Japan Ship Machinery and Equipment Association (JSMEA) and Nippon Foundation at Renaissance Hotel, KL on 23 February 2016. This was followed by technical visits by the delegation at some of our member shipyards in Miri and Sibu.
  • Participating in Asia Pacific Maritime 2016 in Singapore on 16-18 March 2018. Our member Gimhwak Shipyard Sdn Bhd took up a booth and our Honorary Secretary, Nazery Khalid was given the honor of chairing a session on innovation in shipping at Asia Pacific’s largest maritime event.
  • Participating in the Offshore Technology Conference Asia 2016 (OTC Asia 2016) held at the Kuala Lumpur Convention center on 22-25 March 2016. Members MMHE, Bureau Veritas and Muhibbah had booths at this event touted as the largest offshore exhibition in the region.
  • Organizing AMIM‘s Experts’ Talks Series. These include on Dynamic Positioning or DP on 22 August 2016 at Hotel Istana, Kuala Lumpur. The talk was delivered by Capt Hillary Ang, Managing Director of Dynamic Positioning Tech Sdn Bhd, an AMIM member which provides DP consultancy and DP audits/surveys. Another talk on Marine Methanol Fuel was held on 25 August 2016 at Menara Boustead, Kuala Lumpur. The talk, titled ‘Driving Malaysia’s and Global Growth in Methanol Marine Fuel Applications’, was delivered by Dom LaVigne, Director of Government Affairs (Asia Pacific / Middle East), Methanol Institute.\
  • Developing National Occupational Skills Standards or NOSS for Fibre Glass Boat Repair. This was the fourth such standards for the SBSR industry developed by AMIM following NOSS for hull, piping and electrical.
  • Participating in the 27th edition of SMM, the world’s leading trade fair for the maritime industry, held on 4-7 September in Hamburg, Germany. Gimhwak Shipyard Sdn Bhd represented AMIM at this event.
  • Participating at the 3rd Malaysia Oil & Gas Services Exhibition and Conference 2016 held at Kuala Lumpur Convention Center on 28-30 September 2016. AMIM members Boustead Penang Shipyard and Muhibbah Engineering took up booths at the exhibition.
  • Co-organizing with UniKL’s Malaysian Institute of Marine Engineering & Technology (MIMET), an AMIM member, a course on hull inspection on 14-17 November 2016 at MIMET’s campus in Lumut, Perak.
  • Participating in the national level celebration of World Maritime Day or WMD 2016 at KLCC on 24 September 2016. An exhibition held based on the theme of ‘Shipping : Indispensable to the World’, chosen for WMD 20176 by the International Maritime Organization (IMO) drew the participation of our members NK, DNV-GL and Ship Classification Malaysia.
  • Co-organizing the 4th National Marine Industries Forum (4NMIF) held at RH Hotel in Sibu, Sarawak on 28 September 2016 with Malaysian Industry-Government Group for High Technology (MIGHT) and Maritime Institute of Malaysia (MIMA).
  • Attending the annual gathering of Active Shipbuilding Experts’ Federation or ASEF, of which AMIM is a founding member, at The Landmark Square in Tokyo, Japan on 7-9 November 2016 where a series of meetings including its 10th Forum, 3rd Council Meeting and 2nd Assembly Meeting
  • Holding the 20th Annual General Meeting (AGM) at Hotel Istana, Kuala Lumpur on 20 December 2016. During the meeting, members elected new office bearers for the 2016-2018 term.

Highlights of our activities in 2017 are as follows :

  • Particpating in Sabah Ports Forum organized by Sabah Ports Sdn Bhd in Kota Kinabalu on 16-17 February 2017.
  • Organizing a half-day seminar on Marine Lubricant and Maintenance on 15 March 2017 as part of AMIM’s Experts’ Talk Series. The seminar was conducted by Steffen Nyman, a Corporate Trainer & Consultant from C.C. Jensen, a company providing marine solutions from Denmark.
  • Participating in a forum organized by MIGHT during the iLangkawi International Maritime & Aerospace Exhbition 2017 (LIMA 2017) on 24 April 2017.
  • Participating in a workshop on National Transport Policy formulation organized by Economic Planning Unit (EPU) at its HQ in Putrajaya on 28 April 2017.
  • Participating in the Muafakat Maritim 1Malaysia Conference, PICC Putrajaya on 18 May 2017.
  • Participating in 16th Asian Oil, Gas & Petrochemical Engineering Exhibition 2017 (OGA 2017) at KLCC on 11-13 July 2017.
  • Hosting a meeting among members to discuss tariff on repair and maintenance of Government vessels at Menara Boustead, KL on 28 July 2017.
  • Sharing insights on the Malaysian marine industries during the International Training Course on Port Regulation, Management & Operations under Malaysia Technical Course Program organized by Maritime Insstitute of Malaysia (MIMA) at its premise on 11 and 13 July 2017.
  • Participating in an exhbition and conference during Malaysia World Maritime Week 2017 at KLCC in September 2017.
  • Addressing the audience during a vendor engagement roadshow co-organized with MTU Services Sdn Bhd in Kota Kinabalu and Johor Baru in September 2017.
  • Attending Active Shipbuilding Experts’ Federation (ASEF) Forum, Council, Assembly and Experts’ Groups meetings in Busan, Korea on 24-26 October 2017.
  • Conducting the development of NOSS in Marine Hull Fabrication, Installation and Maintenance (Steel) Level 4 & 5 and in Piping Fabrication, Installation and Testing Level 4 & 5.

In undertaking these activities, AMIM continues to play an active role as the Industry Lead Body (ILB) for the shipbuilding / ship repairing (SBSR) industry. Given that the industry is accorded the status as a strategic industry by the Malaysian government, as lined out in several Industrial Master Plans and the Malaysia SBSR Strategic Plan 2020 or SBSR 2020, the designation as an ILB underscores AMIM’s commanding position as an association that acts as the national focal point for the marine industry.

 

Ladies and gentlemen

I am pleased to highlight AMIM’s role in the formation of Active Shipbuilding Experts’ Federation or ASEF, formerly known as Asian Shipbuilding Experts’ Forum. Thanks to AMIM’s tireless lobbying, together with fellow founding members of ASEF, this federation of marine industries associations in the Asian region has been accorded observer status at International Maritime Organization (IMO), the specialized body of the United Nations responsible for regulating shipping activities. This status, received in 20117, is a very satisfying reward for AMIM and fellow founding members of ASEF which have proven our commitment to safeguard Asian shipbuilders’ interests and to amplify our voice on the global stage to match Asia’s dominance in global shipbuilding.

I am also pleased to note that we have been continuously given grants by Department of Skills Development to undertake skills-development activities for the SBSR industry which provide a key source of income for AMIM. The accounts will be presented later by our Honorary Treasurer, Mr Ng Chee Siong.

 

Ladies and gentlemen

Reflecting on the activities which we have undertaken since our last AGM, we can be pleased that AMIM has stayed active despite the downturn in the marine industries. Against the odds of having limited resources, we have remained in the public domain through the activities listed in the sheet distributed to you in the meeting booklet.

However, as members of AMIM, you have the right to ask what benefit there is for you to be member of this association and how your membership can benefit your business. There is always a lot more that AMIM can do to foster the interests of its members. For example, in the area of seeking exemption from the Government from GST for shipbuilding, we have yet to make any headways, unlike our counterparts in the shipping sector who have managed to get the Government to grant exemption from import duty for vessels built at foreign yards.   We have also yet to see the Government giving preference to local shipyards and marine industry players in major Government contracts, in the manner that is done in neighboring countries such as China and in Indonesia through the imposition of Cabotage Policy.

We may also need to consider finding ways to make out back office more efficient to be able to undertake more activities. In this regard, I am open to the suggestion of hiring a full time Manager to run the Secretariat.   We may also deliberate if there is a need to waive backdated subscription fees or increase our membership fees. We can explore the idea of engaging in smart partnership with parties such as Maritime Institute of Malaysia to carry our studies relevant to our interests.

In this regard, I am pleased to inform you that AMIM has formed seven sub-committees within AMIM to look into various areas in the marine industries. The sub-committees cover Fisheries Boat Modernization Government Shiprepair Tariff, Government Procurement Policy, GST, Marine Training, Yachting Industry and Industrial Revolution 4.0. They provide a platform for AMIM members and players in the respective sectors to deliberate issues and discuss developments and bring up suggestions to AMIM’s Management Committee to take up with the appropriate parties. In this manner, AMIM can be more active in pursuing issues and matters of interest and benefit for its members as the membership of the sub committees consist of AMIM members who volunteer their time to be in them.

AMIM certainly aspires to be an association that safeguards the interests of its members and looks to pave the way forward to help members negotiate the challenges and fast paced developments in in the industry. This is the key reason why the association was formed in the first place.

This highlights the need for us as AMIM members to work harder at lobbying the Government to safeguard our interests.  We are in a crucial period in our industry which continues to face strong headwinds amid low demand for vessels and cutback in offshore exploration and production activities. We must step up efforts to convince the Government to support our industry through providing us with more incentives and consistent, steadfast support through policies.

There is no reason why we cannot get the same kind of favorable treatment from the Government the way shipowners got through the Budget 2018 announcement of exemption from tax for imported vessels, and for the Government to grant us zero rated for shipbuilding.   Perhaps we can suggest a workable GST exemption for vessels built at local yards, for example based on value and length of vessels.

 

Ladies and gentlemen

In closing, on behalf of the Management Committee I would like to take this opportunity to thank all members for the support and commitment towards the association which have made it possible for the Management Committee to plan and implement its activities successfully.

I would also like to thank the Management Committee and various sub-committees for their dedication and support towards AMIM, despite their hectic schedule to look after their own business, what more in these challenging times for the marine industries.

I hope to be able to count on your continuous support to ensure AMIM stays active and relevant and to enable it to attain greater heights as the industry lead body of Malaysia’s SBSR industry and fly the Malaysian marine industries flag on the international stage.

Last but not least, on behalf of the Management Committee, I would like to take this opportunity to express our heartfelt gratitude and appreciation to the AMIM Secretariat team for having assisted in the association’s activities with dedication, despite limited resources.

Thank you and wish all of you a productive, fruitful meeting.

 

21st AGM floor (26March)

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