1. Fi Asia Conference
2011
21st Sept 2011
Bangkok Thailand
Industry Perspectives
AEC 2015-Impact to the Food Industry
By
Mr Kamalbahrin Hj Khamsan
President
Malaysia Food Processing and Packaging Entrepreneurs
Association (MAFPA)

2. Introduction
The Association of Southeast Asian Nations
(Asean) have a great potential for food market
(supply and demand)
Malaysia is a relatively small nation with multi
ethnic population of 28.5 million people
Malaysia have a niched in halal food ingredient
producer and manufacturer
Malaysian government is encouraging world halal
food manufacturer especially Fi to takes advantage
of USD 2.1 trillion potential market through
Malaysia.
AEC 2015 will open more opportunities in Fi
market with a strategic planning and
comprehensive management
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

3. Background of ASEAN
area of 4.46 million km²,
3% of the total land area of Earth,
population of 600 million people( 8.8% of the
world population.)
combined nominal GDP about US$1.8 trillion.
as a single entity, it rank as 9th largest economy
in the world.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

4. Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

5. ASEAN Six Majors Economy(GDP)2010
Indonesia USD 695 billions (1,027 billions)
Indonesia USD 708 billions (1.029 trillion)
Thailand USD 312 billions (584 billions)
Malaysia USD 218 billions (412 billions)
Singapore USD 217 billions (291 billions)
Philippines USD 189 billions (350 billions)
Vietnam USD 101 billions (275 billions)
Note GDP Nominal
(GDP PPP)
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

6. MAFPA Background
Represent Malaysia Food Processing & Packaging
Industry
Members in Food Manufacturing, Supplies
/Services and Trade
Current programmes and activities focus on
export
Fully support by industry and government
Fi Asia good platform for promote development of
Malaysia food ingredient industry
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

7. Scope of Presentation
AEC 2015-Impact to the Food Industry
Regulation;
source of raw material;
labor & technology;
government’s policy and plan;
market opportunities & challenges
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

8. ASEAN ECONOMIC COMMUNITY 2015
emphasised regional cooperation in security,
sociocultural and economic integration.
From CEPT to AEC
A Common Effective Preferential Tariff (CEPT)
scheme to promote the free flow of goods within
ASEAN lead the ASEAN Free Trade Area (AFTA).
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

9. The Next Step Is ASEAN Economic
Community (AEC)
main objectives are:
single market and production base
highly competitive economic region
region of equitable economic development
region fully integrated into the global economy
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

10. AEC Areas of Cooperation
human resources development and capacity building;
recognition of professional qualifications;
closer consultation on macroeconomic and financial policies;
trade financing measures;
enhanced infrastructure and communications connectivity;
development of electronic transactions through e-ASEAN;
ntegrating industries across the region to promote regional
sourcing;
and enhancing private sector involvement for the building of
the AEC.
In short, the AEC will transform ASEAN into a region with free
movement of goods, services, investment, skilled labour, and
free flow of capital.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

11. ASEAN Economic Performance
both export and domestic demand fuelled growth
to expand by 7.5 % in 2010
Intra-ASEAN trade and investment flows have
shown an upward momentum and are likely to
support its 2011 domestic growth, which is
estimated between 5.7 and 6.4 %.
NOTE:
Reported by The Deputy Secretary-General of
ASEAN H.E. Mr. S. Pushpanathan for ASEAN
Economic Community (DSG)
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

12. ASEAN Foreign Direct Investment (FDI)
FDI into ASEAN reached US$ 75.8 billion last
year, doubling the 2009 level, and surpassing the
pre-global crisis peak in 2007 of US$ 75.7 billion.
FDI flows in ASEAN over the last ten years have
grown at an annual average rate of 19%.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

13. Malaysia’s Trade With Asean Countries
(USD)Billion
2005 2006 2007 2008
Total Export 46.5 51.0 51.6 57.1
Import 36.8 43.8 42.7 42.1
Net 9.7 7.2 8.9 15.0
Indonesia Export 4.1 5.0 5.9 6.9
Import 6.2 6.0 7.1 8.1
Net (2.1) (1.0) (2.2) (1.2)
Thailand Export 9.6 10.4 10.0 10.6
Import 7.6 9.4 9.0 9.8
Net 2.0 1.0 1.0 0.8
Source:
Department of
Statistic
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

14. Malaysia’s Trade With Asean Countries
(USD)Billion
2005 2006 2007 2008
Singapore Export 27.9 30.1 29.6 32.6
Import 16.9 18.6 19.3 19.1
Net 11.9 11.5 10.3 13.5
Philippines Export 2.5 2.7 2.9 3.3
Import 4.1 3.5 3.2 2.3
Net (1.6) (0.8) (1.3) 1.0
Others Export 2.4 2.8 2.0 3.7
Import 2.0 6.3 4.1 2.8
Net 2.4 (3.5) (1.0) 0.9
Source: Department
of Statistic
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

15. AEC 2015-Impact to the Food Industry
Regulation
import duties
Harmonisation of quality and standards
assurance of food safety,
standardisation of trade certification
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

16. AEC 2015-Impact to the Food Industry In
Sourcing of Raw Material
free movement of raw material.
reduce trade barrier.
reduce cost of doing business through tax
exemption
Inter complimentary
Increased profit
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

17. AEC 2015-Impact to the Food Industry In
Sourcing of Raw Material
free movement of raw material.
Malaysia import raw material for food industry from Indonesia
(vegetable), Thailand (aquaculture, rice and fruit) and Vietnam (rice)
Malaysia export raw material for food industry to Thailand (palm oil
and vegetable), Vietnam (palm oil)
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

18. AEC 2015-Impact to the Food Industry In
Labor
free movement of skilled labour and technology.
Malaysia rapid economic development cause
shortest of skilled and low skilled workers
3 million foreign low skilled workers mostly from
Indonesia, Philippines,Thailand,Cambodia and
Vietnam,
Malaysia hired skilled worker from Singapore
Also export Malaysia skilled worker to Singapore.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

19. AEC 2015-Impact to the Food Industry
Technology
Technology transfer through:
Procument finished good from ASEAN country
Equity participation in ASEAN viable project and business.
Hiring professional and skilled worker for ASEAN viable project and
business.
Training in food related industry in ASEAN country
Placement of Trade office and representative in ASEAN country to
promote bilateral trade
License for Contract Manufacturing and business among ASEAN
country services
Rules for Trade Pattern and Copyright accepted by ASEAN country.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

20. AEC 2015-Impact to the Food Industry In
Government’s Policy and Plan
Since 2011, AEC has agreed to strengthen the position
and increase the competitive edges of small and medium
enterprises (SME) in the ASEAN region.[
Comprehensive Investment Area
The ASEAN Comprehensive Investment Area (ACIA) will
encourage the free flow of investment within ASEAN. The
main principles of the ACIA are as follows[72]
All industries are to be opened up for investment, with
exclusions to be phased out according to schedules
National treatment is granted immediately to ASEAN
investors with few exclusions
Elimination of investment impediments
Streamlining of investment process and procedures
Enhancing transparency
Undertaking investment facilitation measures
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

21. AEC 2015-Impact to the Food Industry In
Government’s Policy and Plan
Export-Oriented Economy
Foreign Investment Policy
Vision 2020
Government Transformation Programme
National Food Policy
Malaysia as World Halal Hub
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

22. AEC 2015-Impact to the Food Industry In
Government’s Policy and Plan
Malaysia's exports grew by 11.1% to USD $19.6 billion
whereas imports grew by 9.4 % USD15.9 billion in April 2011
According to the world investment report 2011 released
recently by the United Nations Trade and Development Agency,
the foreign direct investment to Malaysia soared 536 per cent to
USD $9.3 billion in 2010, constituting the highest record in the
history.
driven by the free trade agreements and strong pressure from
relevant countries to open up our market
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

23. AEC 2015-Impact to the Food Industry In
Market Opportunities & Challenges
The global market for food ingredients was
estimated to be worth roughly USD25bn (€18.5bn)
in 2007, and is expected to reach $30bn by 2010,
demonstrating a growth rate for the market of 5-
6% year on year.
Globally, food ingredients is a multibillion dollar
industry and is fast expanding, growing in sync
with the processed food market. Innovation in the
food and beverage market, especially in processed
foods, has created innumerable opportunities for
new product development in the ingredients
market too.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

24. Fi Global Market
Consultant's Corner Aditi Basu/Frost & Sullivan
The global market for food ingredients was estimated to be
worth roughly $25bn (€18.5bn) in 2007, and is expected to
reach $30bn by 2010, demonstrating a growth rate for the
market of 5-6% year on year.
Globally, food ingredients is a multibillion dollar industry and
is fast expanding, growing in sync with the processed food
market.
Innovation in the food and beverage market, especially in
processed foods, has created innumerable opportunities for
new product development in the ingredients market too.
Growing urbanization, changing lifestyles and the need for
convenient healthy foods have ushered in a new category of
functional and health foods that claim to be fortified with
certain new-age health ingredients offering functional health
benefits over and above the basic nutritional value of the
foodstuff.
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

25. AEC 2015-Impact to the Food Industry In
Market Opportunities & Challenges
Malaysia offer attractive package for halal Fi
manufacturing development
Malaysia multicultural country offer best platform
for Halal Fi market R & D
Malaysian government is encouraging world halal
food manufacturer especially Fi to takes advantage
of USD 2.1 trillion potential market through Malaysia.
MAFPA offer helping hand to help Fi manufacturer to
develop halal niche Fi in Malaysia
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

26. AEC 2015-Impact to the Food Industry In
Working Together For Greater Opportunities
& Challenges
We in Malaysia share your values and your
aspirations, and we urge you to work with us. The
decision had made ASEAN "a friend, not an adversary;
a colleague, not a competitor; a partner, not a rival",
All ASEAN countries and their peoples would be able
to fulfil their true potential and secure their place at
the forefront of the new global economic society
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

27. Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

28. Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

29. Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

30. Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand

31. THANK YOU
Fi Asia Conference 2011
Malaysia Food Processing and Packaging
21st Sept 2011
Entrepreneurs Association (MAFPA)
Bangkok Thailand