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Trade Barriers on RIM May Harm Sector
Shirley Christie | September 08, 2011

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Malayneum
1:39pm Sep 9, 2011

@DrDez Welcome to Malaysia. Sir, because of your experience I would like to from you perspective, what are the pros and cons, the strength and weakness, that Malaysia has?


MikeOfAston
12:58pm Sep 9, 2011

@DrDez: All the best, Penang is a lovely UNESCO world heritage city. An English traveller who has seen it all http://www.thelongestwayhome.com/blog/great-food-from-around-the-world/best-tandoori-chicken-in-the-world/ thinks Kassim's at Chulia Street, Penang has the best chicken tandoori in the entire planet, though I personally prefer the one nearby at Kapitan's.

You'd continue to lurk hereabout won't you?


DrDez
11:56am Sep 9, 2011

Mike

Indeed. In 2009 we opened a small plant in Malaysia - its not huge just 100 people or so but the experience has been remarkably different to our experience here - The corruption blah blah are there but the level of systematic abuses are not. In addition we employ quite a number of non Malays (phils mainly) who have an excellent work ethic are loyal and not confrontational. The infrastructure is good and we dont get pressed every ten minutes for donations - It has been such a great experience we are actually retiring (tomorrow) to Penang -


MikeOfAston
10:47am Sep 9, 2011

It's not just huge market or tax incentive alone (and definitely not threats of tarriff barrier) that attracts a company to set up manufacturing plant in a particular country. My company is one of many that has chosen Malaysia for its production hub. Malaysia has excellent infrastructure (road network, telecommunication including internet broadband, port and airport facilities), trained human resources (English-conversant technicians and engineers, though ironically almost all the shop-floor production are by migrant workers from Indonesia) and most important of all pre-existing network of suppliers and vendors. Malaysia, after all, is home to more than 200 IPCs (International Procurement Centers) and an established base for electronics and semiconductors. Intel, AMD, Western Digital, HP, Dell, Samsung, Sony and the like have large production plants there for years. The Intel or AMD CPU in your computer, among many examples, is more likely made in Malaysia.


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The government has sparked concerns with its plan to impose tariff barriers on companies like BlackBerry manufacturer Research In Motion that import products rather than producing them in Indonesia.

Information technology experts worry the move could make Indonesia less competitive in the market or encourage a flood of illegal products.

“People will either buy smartphones overseas, which will generate tax income for other countries... or fewer people will be able to afford them,” said Oon Arfiandi, chief executive at 7 Langit, a Jakarta-based developer that produces applications for BlackBerry devices.

Oon said counterfeit products could flourish if consumers bear the brunt of price increases.

The tariff plan emerged fter RIM’s decided to set up its Asian production base in Malaysia.

Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM), proposed the tariff with support from Industry Minister M.S. Hidayat.

Hidayat said the government should penalize major companies that import their products, but he added that the plan was in the early stages and implementation was some time away.

Andy Zain, founder of MobileMonday Indonesia, the local branch of a global networking forum for mobile industry professionals, said cellphone manufacturers should be offered incentives instead of disincentives.

“I don’t think [tariffs] will change a company’s decision to build a factory here,” he said.

Although RIM did not respond to the government’s threat, it affirmed its commitment to growth in Indonesia.

“RIM remains fully committed to Indonesia, where we enjoy strong partnerships and tremendous positive enthusiasm for our BlackBerry products,” RIM spokesman Oliver Pilgerstorfer wrote in an e-mail to the Jakarta Globe on Thursday.

“We look forward to working with the government and our carrier partners to [ensure] that Indonesia is one of the best places in the world for companies like RIM to grow.”