Malaysian Knitting Manufactures Association (MKMA) had signed strategic cooperation agreement with Taiwan Knitting Industry Association (TKIA) on 18-Sep-2020, thanks to the effort of Taiwan Textile Research Institute (TTRI).

Signing the memorandum of understanding (MOU) on 18-Sep-20 via a Virtual Ceremony, Mr. Tang Chong Chin represent MKMA remarked that he is excited and optimism that the MOU will improve cooperation for continued enhance knowledge, skill education upgrade, information exchange and market expansion to meet 21st century challenges and maximizing new opportunities for the benefit of the industries.

Mr. Tsai, Yuan-qing, Chairman of Taiwan Knitting Industry Association remarked that pandemic Covid-19 give raise to new concept, restructure of international supply chain, problem of relying on Chinese manufacturing and demand on product quality instead of product price. It had created good opportunities for Taiwan.

Please view the below link for more information.
1.MKMA and TKIA MOU
2.2020 Malaysia and Taiwan Industrial Collaboration Summit

He urge government to cancel requirement for Employer to purchase Foreign Worker Compensation Scheme (FWCS) and Foreign Worker Hospitalisation & Surgical Insurance Scheme (SKIPPA) for foreign worker when renew permit.

Else it will create protection benefit discrimination between local and foreign worker.

Dato’ Tang Chong Chin plead Ministry of Human Resource (MOHR) review the foreigner socso scheme so that to secure employer/manufacturer’s sustainability, production capacity and competitiveness in Malaysia in order to avoid employer/manufacturer to incur unnecessary cost and further affect the benefit and will-being of local employee.

The full articles can be view here:
1.Nanyang
2.SinChew
3.theStar
4.Nanyang – Latest

Malaysian Knitting Manufactures Association held its 43rd Anniversary and Building Fund Raising Grand Dinner at 8th Sept 2018 (Sat) @ 7.00pm at Grand Sea View Restaurant (Batu Pahat, Johor)

Mr. Tang Chong Chin said that MKMA was incorporated on 29 Aug 1975 with the objective to strengthen unity among Textile & Apparel Industry players & to protect the interest of the industry.

MKMA has about 130 Membership throughout the whole nation.

In conjunction with 43rd years of anniversary celebration, Mr. Tang present deep dive into past, present and future stage of the association.

Textile and Apparel industry constantly face with the current & contemporary local and global challenges.
1] Transition of Goods & Service Tax (GST) to Sales & Service Tax (SST-V2)
2] Minimum wage and manpower
3] Tremendous increment of Cost of Doing Business in Malaysia
4] Rapid and unprecedented business environment
5] Global trade protectionism versus liberalism
6] Environmental Protection and strict discipline is required

Future Prospect ahead of MKMA:
1] Intensive application of Industry 4.0 to sustain the Textile & Apparel Industries.
2] The combination of Artificial Intelligence (AI) and Human Intelligence (HI) to amplify into Super Intelligence to bring the industries to the next milestone.
3] The revolution of technologies, internet & web has change the landscape of supplier to buyer, Business to Business, Business to consumer & logistic dimension.

Business Outlook of Textile and Apparel (T & A) for the last ten years

Export has been steadily growth by 27% from RM10.50 Billion to RM13.33 Billion for the period of 2008 till 2017. Year 2017 was the peak of the record.

Import has been experienced rapid growth by three fold from RM5.40 Billion to RM16.22 Billion for period of 2008 till 2017. The peak is at 2016 @ RM16.4B.

Let us work together as a TEAM – Together Everybody Achieve More, and look forward for the greater success for the industries.

In year 2000, MKMA spent RM320,000 to purchase the present building situated at 12-1, Jalan Megat, 83000 Batu Pahat, Johor and setup the national office. Unfortunately, the building is encountering land sinking and subsequent wall cracking problems due to nearby river bed drainage. In this regard, during AGM 2017 had resolved to dispose existing building and purchase a new building for office usage and a Building Management Committee was formed accordingly.

After serious consideration, the Executive Committee Meeting held on 14 April 2018 resolved to purchase a three storey building located at 13, Jalan Penjaja, 83000 Batu Pahat, Johor at RM650,000. The building is conveniently situated at town area, well maintain and deem prospectus as similar buildings at a project opposite the building is selling at RM1.2 million.

As MKMA are unable to dispose the existing building yet, it was resolved to raise for building fund of RM650,000. With estimated lawyer’s fee, stamping duty and renovation cost to be at around RM200,000. Ultimately total cost at about RM850,000. Thus, MKMA urge members and business partners to generously contribute and donate to our building fund.

Mr. Tang expressed “A big thank you to our long established members, business partners & friends in supporting and sponsoring towards the grand dinner and building fund collection. Your contributions would definitely inspire and motivate the commitment of the EXCO towards serving the association and member”.

United Sweethearts Garment Sdn Bhd had contributed RM20,000.00 to MKMA building Fund.
MKMA collected RM180,000.

More detail on newspaper articles can be view here:
1.Nanyang – MTMA 43 Anniversary
2.Nanyang – Textile & Apparel Export Increase 27% in 10 years
3. Guangming – Export hit 13.3 Million
4.Sinchew – 13.3 Million Export

Mr. Tang Chong Chin, The President of Malaysia Knitting Manufacturers Association (MKMA) said it is a challenge of understanding how to get the automation process started and apply for incentives or grants thru Malaysian Investment Development Authority (Mida) and SIRIM. Thus the association co-organized seminars with Mida for MKMA members.

Says Tang, in the textile industry, the upstream players (such as yarn-spinning factories) can automate more than the downstream players (such as garment factories).

He added “The adoption of automation can result in savings in terms of hiring manpower and energy consumption. It can also decrease defect rates.”

He started the automation journey by identifying processes that could be automated. He had implemented Elastic Splice Machine, Pattern and digitizing software, Productivity and quality inspection software.” He had claimed an estimated RM3.5 million in the past three years.

He urged that “Companies should talk to the Malaysian Investment Development Authority before buying any equipment and ask questions if they are not sure.” The ultimate aim is to improve the automation level in your factory so you can be more competitive.

The full articles can be view here:The Journey Towards Automation

Based on the past few year data, the Textile and Apparel (T&A) has been contributing about 1.2% of GDP.   The immediate past few year export data indicating to a very positive and bright future ahead.

Mr. Tang said the industries has gone through the infancy and growth phases and it is now under matured phase.

The industries shall focus on contemporary and modernization of management, technology advancement on automation to sustain and remain competitive in the global market.

He totally disagreed and rejected the mindset of textile industries as sunset industry. He opined that the textile and apparel industry shall survive forever with above mentioned strategies.

Please refer to both articles for more highlight and details.
26th Apr 2017
07th May 2017

Introduction of MKMA
The Malaysian Knitting Manufacturers Association (MKMA) is a national textile trade association established in the year 1975. The primary objective is to encourage, promote and protect the interests of the knitters and related textile manufacturers.

MKMA membership is drawn from all sectors of textile and apparel industry covering the spinning, knitting, printing, dyeing & finishing , garment manufacturing and related suppliers including accessories, dyestuffs and machinery operating in 8 states of the country.   Membership also extends to associate members internationally.

Mission:
* To increase the global competitiveness of the industry
* To upgrade the quality of textile products
* To explore and create market opportunities for members
* To deal with problems on an industry-wide basis.

The major topics covered are as below:-

Part A – Rules of Origin
1. Yarn forward
2. Sewing Thread Requirement
3. Short Supply List
4. Single Transformation
5. De Minimis

Part B – Market Access
1. Tariff/Duty Elimination Time Table
2. Tariff/Duty Elimination Schedule(HS Code)

The talk aim to help its member to understanding and tape into the advantage of TPPA, especially on Textile & Apparel market access into TPPA Countries. Apart from direct exporters, the players in the whole supply chain and intermediate suppliers also need to be familiar with the rules, in order to benefit from TPPA.

Detail slide information can be view here: TPPA Briefing 19Mar2016

According to studies, the textile and apparel industry will be the winner of the TPPA which creates opportunities for the whole supply chain of the industry.

The Malaysian Knitting Manufacturers Association (MKMA) has leaded and lashed out against a hike in foreign worker levy in the manufacturing sector, saying the move came as a “shock, unexpected and without consultation and discussion with private sector”.

In a statement on Feb 1, 2016, its president Tang Chong Chin said the association is “disappointed” and “strongly objects” to the government’s decision to double the levy of foreign workers in the manufacturing sector effective Feb, 2016.

“MKMA believe such a decision would create the huge negative impact on the private sector and invite for domino effect to the already ill and sickening economy environment. Such move would negate the intended stimulation as per newly announced in the budget adjustment made by the prime minister,” he said.

More detail on the articles can be view here:

1. TheEdgeMarket -Textile manufacturers oppose unexpected levy changes to foreign workers
2. OrientalDaily – Levy
3. Nanyang -Lead Levy Hike
4. Nanyang – Levy Hike
5. Zaobao.sg – Malaysia Levy Hike

Fifty-five industry organizations united in an unprecedented move to call on the government to withdraw the sudden increase in foreign workers’ levy that took effect on Monday, decrying the move as detrimental to costs of doing business, which will lead to price increases for consumers.

More Newspaper articles on 55 Industry Oppose Hike of Levy can be view below:
1. Nanyang – Protest on Levy Increase
2. Chinese Chambers of Commerce and Industry of Malaysia – Oppose Levy Increase
3. Sinchew – Oppose Increase of Levy

The speech is presented on event ‘Dialogue on Potential Economic Impact of Trans-Pacific Partnership Agreement (TTPA) on the Textile & Apparel Industry in Malaysia’ organize by MIDA at Kuala Lumpur, 20/01/2016.

The association deem TPPA as timely and crucial to the rejuvenation of Textile and Apparel Industry in Malaysia.

“We are confident that the textile and apparel industry would grow at least 30% upon the implementation of TPPA and TPPA is expected to double the business in a five-year period,” Tang Chong Chin said.

“As a player in the market, with that kind of elimination of duty, given the Yarn Forward Rule (YFR) and Short Supply List (SSL), we are quite positive to achieve this given the sufficient labour force to support our industry,” Tang told reporters, after attending the dialogue on potential economic impact of TPPA on the textile and apparel industry in Malaysia.

Detail slide information can be view here: MKMA-Mida-20Jan16

Appreciation Letter from MIDA can be view here: Appreciation Letter From MIDA

Detail articles can be view here:

1. MIDA – Dialoge TPPA
2. TheMalaysianReserve – Textile and apparel industry to benefit from TPPA
3. NST – Textile sector can grow by 30pc
4. Nanyang – Industry Grow 30pc

Malaysia Knitting Manufacturers Association (MKMA) president Tang Chong Chin told MALAYSIA SME that, ‘there are a few big players in the Malaysia knitting manufacturing sector, but for the most part, the overwhelming majority of operators in Malaysia are SME companies.

These include both textile manufacturers and apparel manufacturers. In the Malaysia context, the breakdown is roughly 70% for apparel manufacturers and 30% for textile manufacturers.

Malaysia Budget 2016 announced the increase of minimum wage to RM1,000 for Peninsular Malaysia and RM920 for Sabah and Sarawak recently did not provide grace period of it implementation. It would add a further strain on member’s businesses. ‘Businesses are now having to deal with the GSt, the decline in value of the ringgit, as well as the wage increase.’

Tang said that one suggestion put forward to the government to fix the issue of foreign labour is to make it easier for genuine and law-abiding manufacturers to hire legal foreign workers.

Many SME are forced to hire illegal foreign workers as they are simply unable to hire any through legal channels and they cannot afford to pay levies and fees.

Additionally, the government has imposed many regulation that make it almost impossible for SMEs to hire legal foreign workers which includes regulation on foreign worker ratio, minimum turnover and also various specifications on foreign workers once they are hired.

Article can be view using this link : Engage Issue 170 Malaysia SME