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SOUTH EAST ASIA
TRMAM and MRPMA in Co-operation Agreement
of the casings currently in the market are of Chinese origin,” said Chin.
TRMAM would support the imposition of tariffs on tyre imports, but the Association realises that this would be difficult, given that Malaysia is currently a net exporter of rubber and any such action would result in tit-for-tat actions that would negatively impact Malaysia’s rubber industr y. According to Chin, TRMAM is currently tr ying to introduce strategies that will help retreaders in Malaysia to improve their competitiveness. For example, the Association is actively working with compounders to help reduce the number of patterns in the market. In addition, the Association is also tr ying to work together with the Ministr y of Transport on the enforcement of standards. Says Chin; “Only 60 per cent of retreaders in Malaysia are MS224 certified, despite the fact that certification has been mandatory since 2007. The problem is that there is little or no enforcement.” TRMAM says it is trying to highlight the companies that are not producing to the standard, but Chin
accepts that enforcement is not within the remit of TRMAM. In addition, TRMAM is looking into establishing a programme that will enable TRMAM retreaders to produce to European ECE 108 and 109 standards, hopefully by 2017. A further issue impacting on the retreading sector is the implementation of a minimum wage in 2014 (900 RM pcm in Peninsular Malaysia and RM 800 in Sabah and Sarawak. This is being increased to RM 1,000 this year). Also burdensome will be the increase in the levy on foreign workers from RM 1,250 to RM 2,500. This will be a major burden due to the number of foreigners working in the retreading sector.
There are still around eighty retreaders in Malaysia, which TRMAM accepts is too many for a country of Malaysia’s size. “There is a need for some consolidation in the sector,” explained Chin. “Many of Malaysia’s retreaders are family businesses with no succession plan. We would call for some of the smaller ones to concentrate on trading and to pass production onto some of the larger players.”
TRMAM President Chin Hon Meng
The Tyre Retreading Association of Malaysia (TRMAM) and the Malaysian Rubber Products Manufacturers’ Association (MRPMA) have signed a Memorandum of Understanding (MOU) to enhance co-operation of common interest. This was revealed in a recent interview held in Kuala Lumpur with TRMAM President Chin Hon Meng, Executive Director at Sun Tyre Industries Sdn Bhd, in advance of TRMAM’s 10th anniversary dinner, where the details of the Memorandum were set to be formally announced. Under the terms of the three-year agreement, TRMAM and MRPMA have agreed to co-operate on joint actions that aim to enhance the competitiveness of Malaysian rubber products manufacturers both at home and abroad, with SMEs being targeted in particular.
A key area of co-operation under the MOU will be the lobbying of government, responding to issues from policies put into force by the Federal, State and related agencies affecting the Malaysian rubber products industry in general. The co-operation will also cover issues related to licenses, incentives, GST, duty, incentives, foreign labour etc.
Further areas on co- operation will include co- operation with government and related agencies on compounding and retreading, training and workshops, information sharing (publications, membership lists, sharing of industry-wide data etc.) and joint activities including an annual event, exhibitions and trade missions.
During our interview, Mr Chin took some time to
outline some of the difficulties currently being faced by the retreading industry in Malaysia, and what the Association is trying to do about them. As with most parts of the world, the Malaysian retread market is currently suffering due to the impact of low-priced Chinese tyres in addition to the effects of a local economic slowdown and the effects of last year’s introduction of GST tax.
According to Chin Chinese tyre prices are currently slightly over 10- 15 per cent of those of stock retreads. This has resulted in many retreaders following an “if-you-can’t- beat-them-join-them” strategy and becoming involved in trading. TRMAM is currently concerned that the amount of retreadable casings available in the market will be significantly reduced. “70 per cent
Goodway Participates in Tyre Management Workshop in Indonesia
GIIB Rubber recently joined together with one of its Indonesian customers, PT. Putra Arezda Purnama, and took part in a tyre management workshop for their fleets to educate them about the maintenance of tyres, current tyre technologies and the importance of good retreading. GIIB Rubber was invited to speak at the event and share information on retreading along with speakers from Michelin, who were explaining the benefits and differences of radial tyre
technology as compared to bias ply.
A GIIB Rubber spokesman commented; “A big part of our role as a responsible rubber compounder lies in education of our end users about our industr y, the benefits that lie in retreading and the specifics of tyre management for new and retreaded tyres. Therefore, we hope to see more of these kind of workshops around the world in the future and we are ready to support this initiative by all means possible.”
Signing of the memorandum between TRMAM and MRPMA
60 Retreading Business