The importance and benefits of adopting standards

Report
THE IMPORTANCE AND BENEFITS
OF ADOPTING STANDARDS
BY: AMRAN SAMEON
DIRECTOR OF TRADE FACILITATION & TECHNOLOGY
MITI
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY
OVERVIEW
 Background
 Development of standards
 Importance of standards
 Benefits of adopting standards
 Institutional Framework
 Recommendation
 Next Step
 Conclusion
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BACKGROUND
 The progressive liberalisation of trade in goods and services
will open up more markets for export of goods and services
from Malaysia.
 The growing numbers of Free Trade Agreement (FTA) give
more favourable treatment such as:
 Lower or zero tariffs for goods;
 Removal of quantitative import restrictions;
 Trade facilitating customs procedures; and
 Predictable and conducive environment for investment.
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BACKGROUND
• Influx of products into the country which are not
subjected to standards will affect health, safety and
environment.
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DEVELOPMENT OF STANDARDS
• As of November 2011, a total of:
• 6,367 Malaysian Standards (MS) have been developed;
• 3,855 standards (60.6%) are aligned with international
standards; and
• 332 standards (5.21%) have been made mandatory to
both imported and locally manufactured products .
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DEVELOPMENT OF STANDARDS
 From 1 January – 31 October 2011, the sales of MS are as
follows:
 Sales of MS online – 1858;
 Sales of MS hardcopy – 9062; and
Total : 10,920
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THE IMPORTANCE OF STANDARDS
 Third Industrial Master Plan (IMP3)
 Standards conformance is important for industrial efficiency,
productivity and competitiveness.
 The linkage between the international market access and
compliance to standards could pose challenges to Malaysia
exporters in terms of their readiness and capacity.
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THE IMPORTANCE OF STANDARDS
 New Economic Model (NEM)
 need to adopt international standards and best practices to
strengthen private sector.
 Malaysian manufacturer and service provider must comply
with international standards to prosper in an integrated
global market.
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THE IMPORTANCE OF STANDARDS
 Rancangan Malaysia Ke-10 (RMK10)
 In RMK10, the private sectors are encouraged to meet
Malaysian Standards (MS) and International Standards in
supporting innovation led economy, for the ecosystem to
unleash the economic growth. Standards compliance will
also lead to build environment that enhances quality of
life.
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BENEFITS
The benefits of industries to comply with standards are:
 Safeguard product quality, safety, technical standards in order
to meet health, safety and environment requirements
 Customers look for the independent verification that technical
standards provide.
 Certification marks earned by businesses whose products and
practices consistently stand up to examination are instantly
recognizable and act as respected badges of quality, safety and
performance.
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 Provide a greater accessibility to the international market
 The World Trade Organisation (WTO) ensures that any standards
to be imposed on products will not restrict trade and act as a
discriminatory and not based on any scientific basis, by setting
certain ground rules.
 The WTO Agreement on Technical Barriers to Trade (TBT
Agreement) regulates the use of voluntary standards and
mandatory technical regulations not only to national
governments of WTO member countries, but also to national
standard-setting organisations and NGOs within a member’s
territory. All WTO members are responsible to ensure that their
respective national standard-setting organisations and NGOs
does not use standards as a protection instruments which
discriminate or discourage trade in product.
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 The ability to demonstrate compliance with widely recognised
and respected standards is an effective means of differentiation
in a competitive marketplace.
 Manufacturing products or supplying services to appropriate
standards maximises their compatibility with those manufactured
or offered by others, thereby increasing potential sales and
widespread acceptance.
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 Ensure Malaysian manufacturers are able to produce high
quality of products which are aligned to the international
standards
 For businesses, the widespread adoption of International
Standards means that suppliers can develop and offer products
and services meeting specifications that have wide
international acceptance in their sectors.
 Therefore,
businesses using International Standards can
compete on many more markets around the world.
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 Protect the interests of consumers
 As consumers become increasingly informed about their
choices, conformity to recognised standards becomes pivotal.
 For customers, the worldwide compatibility of technology
which is achieved when products and services are based on
International Standards gives them a broad choice of offers.
They also benefit from the effects of competition among
suppliers.
 Conformity
of products and services to International
Standards also provides assurance about their quality, safety
and reliability.
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INSTITUTIONAL FRAMEWORK
Several committee has been established over the years to
ensure the smooth development and implementation of
standards. Among others are:
 Committee on Mandatory Industrial Standards (CMIS) –
chaired by MITI.
 Jawatankuasa
Penyelarasan
Pelaksanaan
Mandatori (JPPSM) – chaired by MOSTI.
 Industrial
secretariat.
Standards
Committee
(ISC)
–
Standard
SIRIM
as
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1) Committee On Mandatory Industrial Standards (CMIS)
 CMIS was established in 2007 with the objectives to identify
and coordinate mandatory standards for manufactured
products with a view to promote quality and safety.
 CMIS comprises of five task forces namely:
 building material;
 machinery and equipment;
 automotive part and component;
 wire and cable; and
 medical devices.
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 Membership
 MOSTI, KPDNKK, MOT, AG Chambers, STANDARDS MALAYSIA,
Customs, SIRIM Berhad, SME Corp., Energy Commission (EC),
Department of Occupational Safety and Health (DOSH), CIDB,
FMM and other relevant agencies/industry representatives.
 CMIS is to meet at least once in three months (4 times a
year).
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2) Jawatankuasa Penyelarasan Pelaksanaan Standard
Mandatori (JPPSM)
 JPPSM
was established under Ministry of Science,
Technology and Innovation (MOSTI) chaired by KSU MOSTI
in 2011.
 The functions of JPPSM includes:
 co-ordinate effective implementation in enforcement of
mandatory standards and technical regulations; and
 ensure that all enforcement of mandatory standards and
matters related to technical regulations are in line with
national policies.
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3) Industrial Standards Committee (ISC)
 23 Industrial Standards Committee (ISC) including Food and
Agriculture – ISC(A), Chemical and Materials – ISC(B),
Environmental Management – ISC(Z), etc.
 The responsibility of the ISCs include overseeing effective
development
of
standards,
monitoring
international
standardisation as well as to approve technical content of a
draft standards.
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RECOMMENDATION
 Industries are encouraged to use these committee as a
platform to raise any issues on development of standards,
trade and industry matters, as well as any incentives
needed.
 Communication channel between the industry, government
agencies as well as regulatory body must also be utilised as
to ensure local industries stay alert to the international
trend of doing business as well as development of
standards.
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RECOMMENDATION
 There are needs for the industries to be more active in the
standards setting activities, for instance trade related
programmes. It is to ensure that our local industries stay
competitive in the global market.
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NEXT STEP
Government will assist the industries by:
 Alignment to international standards
 provide assistance to industry by ensuring its readiness and
capacity to meet international standards.
 Development of Standards
 expedite the development of standards especially for critical
products that need to be made mandatory to prevent
sudden surge of other products which has adverse effect on
domestic industry
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NEXT STEP
 Mutual Recognition Arrangement (MRA)
 facilitate
the industries in conducting testing and
accreditation process including reducing cost of doing
business
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CONCLUSION
• It
is obvious that the role of standards has extended
beyond a set of rules to be followed. It needs proper
strategy and strong support from industry to take Malaysian
Standards to a higher level and meet the current trend of
doing business.
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THANK YOU
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