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Growing Your Business

FRANCHISE

 

What is franchise?
Franchising refers a business model where the "franchisors" authorize the proven methods, strategies and trademarks of their businesses to "franchisees" for a fee and a percentage of gross monthly or annual sales revenue.

The franchisors provide various tangibles and intangibles such as national or international advertising, training, and other support services for the franchisees in return as per the franchising agreement.

Franchising can be seen as a faster, cheaper form of expansion than adding company-owned stores, because it costs the parent company much less when new stores are owned and operated by a third party. However the parent company will only earn a percentage of the earnings from each new store. The franchisee also pays the costs of actually starting and operating the store, including legal fees, occupancy or construction costs, inventory costs, and labour.

Agreements may last 5 to 20 years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees.

Franchise is also a method of marketing and distributing of product or services based on a two-party relationship; that is the franchisor (the owner and granter of right) and the franchisee (recipient of right) relationship. The right granted is for the purpose of running the business by using the trademark or trade name based on a specific system, at specified location or area within a specified period of time.
Benefits and Disadvantages
Benefits of using a franchise model

  • Franchisee incurs lower initial capital than independently starting a company
  • Able to utilise franchisor’s proven successful strategies and trademarks
  • Franchisor can expand rapidly without increasing its labour force and operating costs, using much less capital
  • Parent company earns a higher margin for the franchised stores than company-owned stores because of minimal operating expenses in maintaining franchised stores.
  • Leveraging on a recognised brand name and business image
  • Assured of consistent quality
  • Attaining higher productivity/better motivated staff
  • Reducing risks of failure leveraging on a proven product with good track record
  • Franchise soffer important pre-opening support:
    • site selection
    • design and construction
    • financing (in some cases
    • training
    • grand-opening program
  • Franchises offer on-going support:
    • training
    • national and regional advertising
    • operating procedures and operational assistance
    • supervision and management support
    • increased spending power, access to bulk purchasing and economies of scale

  • Franchising enables technology transfer and expertise between international and local companies. It can be realized when an international franchisor appointed local company as their master franchisee for specific territory and assist and develop local companies on aspects of business management, business systems, research and development activities, marketing know-how, branding and so forth.

Disadvantages of a franchise model
  • Franchisee has lower amount of control over its products and service, which may lead store quality to vary greatly from store to store.
  • Franchisee usually pays a percentage of the revenues to the franchisor,
  • Franchisee may have to incur substantial upfront franchise fees which reduces the available working capital.
Types of Franchise
Generally there are 3 types of popular franchise system:
  • Product distribution franchise;
  • Business format franchise; and
  • Management franchise.
Product Distribution Franchise

A product distribution franchise model is similar to supplier-dealer relationship, however, the franchisee is required to observe a few guidelines e.g. agreeing to sell only the franchisor’s brand exclusively.

For example, an outlet may agree to sell only certain products in its store at the exclusion of some other products. Typically, the franchisee merely sells the franchisor’s products. However, this type of franchise will also include some form of integration of the business activities. The franchisee is allowed to be much more independent than if he or she was running a business format franchise.

Some well known product distribution franchises are Coca-Cola, the Ford Motor Company, Exxon and Osim.

Product distribution franchises deal mainly with large products such as automobiles and auto repair parts, vending machines, computers and some inventory for convenience stores.


Business Format Franchise

In a business format franchise, the business integration is more complete. The franchisee distributes the franchisor’s products and services under the franchisor’s trade mark, as well as implements the franchisor’s format and procedure of conducting the business.

The arrangement is formalized through a legally binding contract. This comprises the franchisor’s name, goodwill, product and services, procedures, manuals and standards, marketing operating systems and support facilities.

Business format franchising is the most popular type of franchise system and the one generally referred to when talking franchising. Famous examples of Business Format Franchise are McDonalds, KFC, Famous Amos, Starbucks Coffee and Dunkin’ Donuts.


Management Franchise

It is a form of service agreement whereby the franchisee provides the management expertise, format and/or procedure for conducting the business. Some examples of Management Franchise are Hilton, American Idol and UPS Store.


Common Considerations of Franchisors
  • Developing franchise concept
  • Market research
  • Familiarity with local laws and regulations
  • Providing training and support to franchisees
  • Criteria for choosing franchisees
  • Control over franchisees
  • Supply of products/materials to franchisees
  • Intellectual property rights issues, e.g. trade mark registration

Common Considerations of Franchisees
  • Demand
  • Profitability of franchise, and length of time required to recoup investment
  • Track record of franchisor
  • Support rendered to other franchisees
  • Experience and profitability of other franchisees
  • Existence of competition
  • Capital required

Demands of franchisor, e.g. income projections, deadline to open more franchise outlets

Franchisor - Franchisee Relationship
Regulated by contract which usually covers:

  • Initial fee
  • Royalty fee/Management fee
  • Capital required from franchisee
  • Territory/Area of operation
  • Duration of license and renewal
  • IPRs
  • Termination

Be Careful!

  • The franchisee is not completely independent. It must comply with the terms and conditions of the franchise agreement.
  • In addition to the initial franchise fee, franchisee must pay on-going royalties and advertising fees. This could result in a substantial up-front outlay in terms of advance payments.
  • Franchisee must be able to balance restrictions and support provided by the franchisor with their own ability to manage the business.
  • A damaged image or franchise system can result if other franchisees perform poorly or the franchisor has financial problems. This could cause disruption to on-going operational support in terms of supply of goods and services.
  • The duration of a franchise is usually limited and the franchisee may have little or no say concerning termination.

Common Mistakes of Prospective Franchisees

  • Not reading, understanding and/or asking questions about the franchisee agreement and other legal documents.
  • Not understanding the responsibilities of a franchisee and the rights and obligations of a franchisor.
  • Not seeking sound legal and financial advice.
  • Not verifying oral representations of franchisor.
  • Not analyzing the local market in advance.
  • Not analyzing the competition.
  • Not making thorough due diligence of the franchisor.
  • Not choosing the right location.
Relevant Ministry and Agencies

 


 

EXPORT

 

What &Why
What is export?

Exportation is defined as to take or cause goods or commodity to be taken out of Malaysia by land, sea, or air, to place any goods in a vessel, conveyance or aircraft for the purpose of trade. Exporting is a great way to expand your business and if done properly, can significantly increase your profitability.


Why grow your business through exporting?

Getting the right balance between international and domestic trade can protect your business if there is a downturn in one of your markets. Exporting will also expose you to new ideas, marketing techniques and ways of competing that you wouldn't generally experience at a local or national level. The challenges and victories you experience through exporting to overseas markets will also help develop your skills and ability to compete more robustly in your domestic market.


How do I start exporting?

Success in exporting doesn't happen over night or by accident – it needs careful preparation, planning and commitment.
Tips for Exporting Succes
11 tips for exporting success

Below are our 11 tips for exporting success:
  • Getting ready for exporting
    • Before you think about exporting it's wise to conquer your domestic market. The most successful exporters are well established and have a strong customer base at home.Once you've established a strong domestic presence it's time to learn the basics of exporting. There are many new terms and concepts you'll need to understand, but there are plenty of people who can help you on the way.

  • Export strategy
    • It is essential to develop an export strategy before launching into an overseas market. Your strategy should identify your export aims and the resources you need to achieve them. You'll need to analyse your business, the export environment, your product and service offerings and potential markets. You should also develop plans to implement your strategies and ways to evaluate their success.

  • Networking opportunities
    • Your business contacts can make or break your exporting endeavours. By making the right contacts you can learn more about your industry and meet potential customers.

  • Market research
    • Market research is about finding out what drives a market and how to access it. In researching your export markets you'll need to find out about import duties, distribution channels, regulations, market size and growth. You also need to develop a “feel” for the market which includes knowledge of how buyers operate, potential barriers to market entry, what your competitors are doing and the dynamics of business meetings.

  • Export marketing
    • Export marketing is about building relationships and making a good impression. Use your networks to make contact with buyers in your export market and ensure your support material provides relevant, accurate and substantial information. This could include letters, brochures, emails, faxes and websites. It's also important to take the time to learn the business etiquette of the culture you are dealing with.

  • Visiting the market
    • Once you've identified your new markets it's time to visit them and start building networks on the ground. Visit your markets before committing to major agreements with prospective agents, distributors, or other business partners. You might also want to consider visiting major trade fairs in the target country.

  • Risk management
    • Venturing into international markets will expose your business to a new range of risks so it's a good idea to review your risk management strategy. New risks could include foreign exchange exposure, legal issues, political stability, shipping, customs clearance days, quarantine and standards regulations.

  • Getting financial assistance
    • Market development and getting ready to export can take a lot of time and money so you'll need to manage your cash flow carefully

  • Freight and logistics
    • Establishing an efficient and effective freight process is crucial to good exporting. Most exporters use a freight forwarder but you will still need to learn the basics of shipping terms, pricing and documentation.

  • Sales leads
    • Receiving your first genuine enquiry is an exciting moment. Make sure you've developed procedures to handle leads professionally. This could include a commitment to respond within 48 hours and developing an email format to promote your business. You will also need to check their bona fides to ensure they are a genuine client and that the transaction is secure.

  • Legal issues
    • There are plenty of legal issues to consider once you start exploring overseas markets including import and export regulations, patent and other intellectual property registrations, product liability, bilateral sanctions and the differences between legal systems.
MATRADE
MATRADE’s mission to promote Malaysia’s export has enabled many local companies to carve new frontiers in global markets. Today as we continue to put the spotlight on capable Malaysian companies on the international stage, we are helping make the phrase ‘Made-In-Malaysia’ synonymous with excellence, reliability and trustworthiness.

Please visit www.matrade.gov.my for more information

  • If you wish to visit MATRADE's head office in Kuala Lumpur, they are located at :
Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta,
50480 Kuala Lumpur,
MALAYSIA

 


 

IMPORT

 

Plan
Before you launch into importing the first thing you need to do is analyse its feasibility and start planning. This includes:
  • identifying the market for the imported product;
  • locating suppliers;
  • adhering to Australian import regulations;
  • finding a customs broker;
  • collecting import quotations;
  • establishing payment terms;
  • learning trade terminology;
  • managing foreign exchange fluctuations;
  • determining methods of transport; and
  • securing distribution arrangements and agreements.
Import License in Malaysia
Import licence is a permit that allows an importer to bring in a specified quantity of certain goods during a specified period. Import licences are employed as means of restricting outflow of foreign currency to improve a country's balance of payments position and to protect the domestic industry from foreign competition.


At present as per the Malaysian import trade policy, most imports can be admitted under an open general licensing regime. However, specific import licences are required for certain controlled items which are intended for import into the country. These items are explosives and firearms, motor vehicles, plants, certain pharmaceuticals, tin ore, soil samples and various foodstuffs. A restrictive import licensing regime is also charged on heavy construction equipment, electrical household appliances, and iron and steel products. Applications for import licences should indicate the identities of the purchaser and supplier and a general description of the items and market value.


Malaysia has based its customs tariff regime on the Harmonized Commodity Description and Coding System of goods clarification. Tariff duties are from 2% to 60%, with an average tariff level of 15%.Higher duties are imposed on so called "luxury" items like liquor and cigarettes and items that are deemed to be in direct competition with locally produced goods.


Any imported beef and poultry products must be certified "halal". Items prohibited from being imported include corrosive chemicals and any "indecent or obscene" materials. Items from the former Yugoslavia and Israel are prohibited.


Direct selling companies wanting to operate in Malaysia must comply with certain regulations set by the Domestic Trade and Consumer Affairs Ministry before a license can be granted. The company must have at least 70% local ownership and must be locally incorporated, 80% of the products must consist of local content and any proposed price increases must be approved by the ministry.


Operating licenses are granted for one-, two- and three-year terms, and existing regulations stipulate that paid-up capital, quality assurance standards and marketing plans must be submitted before any such licenses are granted.
Price
It's crucial that you determine the viability of importing before you get started. Will the price you ask for your goods cover all of the costs involved with importing?


There are many additional costs involved in importing. These include, but are not limited to, the exporter's selling price, clearing charges, transport costs, customs duty, port charges, insurance, fumigation charges and bank charges.
Learn Exporter's Language
Learn Exporter's Language

You should understand the fees, charges and service you are receiving because these terms and conditions may increase the exporter's selling price. Most reputable traders will use Incoterms which are set by the International Chamber of Commerce. Some of the most common trading terms include:

Ex-works: the price quoted for supply of the goods at the seller's warehouse. It doesn't include transport and insurance costs.

  • FOB (Free on Board) – ship or aircraft.
  • FIS (Free into Store) – total invoice price
  • CIF (Cost Insurance Freight) - additional costs to ex works or FOB
Guidelines for Application of Import License (AP)
1. Objective
  • The purpose of this guideline is to explain the procedures and conditions for the issuance of Import Licence (AP) on plastic wastes under tariff code 39.15.

2. Background
  • The Prohibition Order on plastic wastes importation under tariff code 39.15 has been transferred from First Schedule to the Second Schedule, Part 1, (Prohibition of Imports) (Amendment) Order 2008, Customs Act 1967 with effect from 1 February 2008.
  • The importation of plastic wastes is subject to Import Licence to be issued by Ministry of International Trade and Industry (MITI).

3. Eligible Manufacturers
  • Manufacturers who undertake recycling activities of plastic wastes for their own use; or
  • Manufacturers who undertake recycling activities of plastic wastes for local market and export; or
  • Manufacturers who import plastic wastes that have been cleaned and can be used as raw material directly in the production process of products.

4. Conditions for Import Licence (AP)
  1. Manufacturers must submit a letter of approval issued by Department of Environment (DOE) to carry out recycling activities;
  2. Imported plastic wastes which are not listed as Scheduled Waste or Hazardous under the Environmental Quality Act 1974, Pesticides Act 1974, and Poison Act 1952;
  3. Importation of product under tariff code 39.15 is not permitted for purposes of re-export under the same tariff code;
  4. Import Licence is required for every consignment or each time plastic wastes are imported under tariff code 39.15.

4.1 Other Conditions
  1. Manufacturers must abide by all existing laws of the Country;
  2. Manufacturers are advised to register with the Department Of Solid Wastes Management, Ministry of Housing and Local Government;
  3. Manufacturers are advised to obtain an ISO 14001 certificate issued by bodies accredited by Department of Standards, Malaysia.

5. Validity Period of Import Licence
  1. Import Licence (AP) issued carries a validity period of 3 months from the date of issue.

6. Documents for Application of Import Licence

FOR FIRST TIME APPLICATION ONLY
  1. Approval letter from Department of Environment to carry our recycling activities;
  2. Manufacturer Licence from MITI or other government agencies (if available);
  3. For private limited companies:-
    • Memorandum & Articles of Association
    • Form 49, Form 24
  4. For private enterprise or partnership:-
    • Form A
    • Form B
    • Form D
  5. Form 13, Companies Commission of Malaysia (for changes to the name or details of companies)
  6. Check List Form -available on web site www.miti.gov.my
  7. Customs Form JK69 (available at Percetakan Nasional Berhad );
  8. Invoice /packing list/ proforma invoice/purchase order/ sales agreement;
  9. Bill of lading (if unavailable, manufacturers are required to submit to MITI within 3 days of importation. Failure to do so may affect subsequent application.

FOR SUBSEQUENT APPLICATION
  1. Check List Form -available on web site www.miti.gov.my
  2. Customs Form JK 69 (available at Percetakan Nasional Berhad );
  3. Invoice /packing list/ proforma invoice/purchase order/sales agreement;
  4. Bill of lading (if unavailable, manufacturers are required to submit to MITI within 3 days of importation. Failure to do so may affect subsequent application.

7. Submission of Application
  • Application for Import Licence is to be submitted to:

Director
Import and Export Control Division

Ministry of International Trade and Industry (MITI).
2nd Floor, Block 10
Government Offices Complex
Jalan Duta
50622 Kuala Lumpur

Tel: 03-6203 4817 (Pn Azrilah Abd. Aziz)
03-6203 4814 (En Azlan Shahid)
03-6203 5534 (En Ariffatri )

 


 

BRANDING

 

What is Branding?
A brand is the identity of a specific product, service or business. A brand can take several forms, including a name, term, sign, symbol, colour combination or slogan.A brand is a persistent, unique business identity intertwined with associations of personality, quality, origin, liking and more.

Branding is the process of creating and evoking distinctive and lasting perceptions and experiences in the minds of consumers.


For example:

The Nike brand name is well-known throughout the world, people can identify the name and logo even if they have never bought any of their products.

However, not only is the company name a brand, but the logo (the ‘tick’ symbol) is also a strong piece of branding in its own right. The majority of people who are aware of the company can also identify it (or its products) from this symbol alone.


Brand Elements
  • A clear brand identity
  • A strong brand culture
  • A meaningful brand experience
  • Deliver emotional values
  • Build valuable relationship
Benefits of Branding
  • Achieving economies of scale (production and distribution) with increase in product demand
  • Lowering marketing and advertising costs
  • Setting the foundation for future expansions domestically and globally
  • Promoting product differentiation and customer loyalty
Promoting Branding
SME Corp. Malaysia

SME Corporation Malaysia has developed the National Mark of Malaysian Brand which was launched in March 2009. It brings with it the attributes of quality, excellence and distinction of products and services by Malaysian companies. Through this effort, the Government hopes to change the perception that local products and brands are of lower quality, reliability as well as low packaging standards than the big brand names.

Participating Malaysian companies will be evaluated using stringent standards, whereby auditing and monitoring measures will be put in place to ensure adherence to the set quality standards. If successful, the products or services will be given the right to carry the Malaysian Brand.

Initiatives under the Programme are as follows:

  • The National Mark of Malaysian Brand
  • Annual Branding Entrepreneurs Conference (BEC)
  • Workshops on Brand Manual for Malaysian Brand Certification
  • Branding Innovation Centre at Limkokwing University of Creative Technology (LUCT)
  • Branding and Packaging Mobile Gallery.

In order to retain the Mark, auditing and monitoring measures will be done periodically to ensure adherence to the criteria set. Finally, various trade promotion activities will be undertaken to promote brands that have been awarded the National Mark of Malaysian Brand and the recognition of the National Mark of Malaysian Brand itself.

For more info, please visit www.smecorp.gov.my


MATRADE

Malaysia External Trade Development Corporation (MATRADE), was established in March 1993 as a statutory agency under the Ministry of International Trade Industry (MITI).

As Malaysia’s national export promotion agency, MATRADE is responsible for assisting Malaysian companies succeed in the international market. MATRADE’s vision of making Malaysia the premier exporting nation is paired with its mission to develop and promote Malaysia’s exports to the world.

MATRADE serves to promote Malaysia’s external trade with particular emphasis on the export of manufactured and semi-manufactured products and services. In addition, MATRADE formulates and implements export marketing strategies and trade promotion activities to increase Malaysia’s exports, undertake market research, and create a comprehensive database of information for the development and improvement of Malaysia’s trade.

MATRADE also organizes training programs to enhance the international marketing skills of Malaysian exporters, promote and assist in services related to trade, and protect Malaysia’s international trade interest abroad.

One of the initiatives undertaken by MATRADE to develop and promote Malaysian products and services globally is through the creation of Online Directory of Malaysian Brands. This directory showcases the brand names of Malaysian companies who are recipients of the Brand Promotion Grant (BPG).

The Malaysian Brands Directory profiles Malaysia's premier brands to the world - highlighting brands that feature strong positive values, superior innovations and global appeal.
For more info, please visit www.matrade.gov.my


KPDNKK

The Buy Malaysia Campaign is a result from the Buy Malaysian Made Campaign which was launched in 1998. The campaign is to encourage consumers to buy Malaysian-made products at reasonable prices and to increase awareness among the public concerning the products and services offered in Malaysia that are at par with the international standard and retailed at reasonable prices.

For more info, please visit www.kpdnkk.gov.my


FAMA

1 Malaysia Best has created an endorsement brand that shows the Malaysian identity to increase sales and profile of agriculture-based products in domestic and global markets. It is aimed to:
  • Create one brand that is effective and as a whole by the Ministry for domestic and global markets.
  • Assist to upgrade the agriculture-based products for the international market.
  • Enhance the practice and international demand for the agriculture-based products.
For more info, please visit www.fama.gov.my
Protecting Your Brands

MyIPO facilitates the dissemination of information and promotional publicity of intellectual property rights (IPR). The activities had contributed not only toward enhancing IPR awareness among Malaysians and enhancing MyIPO’s image, but also fostering valuable networking and partnerships through the various programme organised jointly with key stakeholders throughout the country.

Currently, MyIPO provides the following services:
  • Patent
  • Trademark
  • Industrial Design
  • Geographical Indications
  • IC Layout Designs
  • Copyright
For more info, please visit www.myipo.gov.my

 


 

CERTIFICATION

 

How Certification Benefits Us
Reference to certification such as Malaysian Standards brings immense benefits to all stakeholders in achieving:

1) Consumer Protection and Public Welfare
  • Standards provide a basis for legislation for controlling quality, protecting consumers and ensuring health and safety
  • Standards ensure the fitness for the intended purpose of products and services
  • Standards specify the minimum requirements of quality, health and safety including areas involving the environment and occupational safety and health
  • Conformance to standards provides an assurance of safety, reliability and quality to consumers·
  • Standards ensure compatibility, interchangeability and interoperatibility to benefit consumers
  • As consensus documents, standards reflect the requirements at national and international levels

2) Industrial Efficiency and Development
  • Terminology and symbol standards help in better understanding
  • Product standards help in ensuring good design and improvement in quality of product
  • Product standards encourage economic efficiency through variety rationalization and interchangeability of components, materials and practices
  • Process standards provide the means for improving manufacturing processes
  • Codes of practice establish good practices in all fields of installation, construction, etc.
  • Testing standards set recognized levels of repeatability and reproducibility
  • Standards being a rich source of current technologies can act as vehicles for technology transfer
  • Standards promote better understanding between the purchaser and seller and provide solutions to recurring problems
  • Standards facilitate communications
  • Use of standards provide the essential key to organizing industrial development
  • Use of standards lead to direct and indirect economic benefits
  • Standards help in import substitution and export promotion
The adoption of certification such as Malaysian Standards assures consumers that their safety is taken care of, and ensures that the quality of products and services is worth their money. To industries, it contributes to the reduction of operational costs thereby assuring a rise in profits.
Product Certification
SIRIM-QAS International Sdn Bhd roles is to carry activities of certification, inspection and testing activities. As the leading certification and testing body in Malaysia, SIRIM QAS Sdn. Bhd. has achieved wide recognition nationally and internationally. The company's services conform to international standards and guidelines.
Product Certification Scheme
Product Certification Scheme Product Certification is offered to manufacturer who wishes to have its product certified to the requirements of a Malaysian or International Standard. Participation in this scheme is voluntary for most products. However, government regulatory authorities may require mandatory certification for certain products. After successful application, the applicant is given a license to mark the certified product with the "MS" certification mark. However for most regulated products, it is mandatory to affix the SIRIM labels on the products. The presence of the Label attests that the product meets quality requirements of the specified standard or specification. It also provides consumer an assurance of performance, safety and reliability as well as it demonstrates an effective system for production processes.


Other Product Certification Category

Chain-of-Custody

The Chain-of-Custody Certification is an independent third party verification that the wood products purchased are actually derived from forests which have been certified to have met the requirements of an agree forest management standard. The standard used is the PEFC International Chain-of-Custody standard, Annex 4 of the PEFC Council Technical Document: Chain-of-Custody of Forest Based Products – Requirements. A wood product which has been certified under this scheme is eligible to use the MTCC as well as the PEFC logos which are recognized in the member countries of the PEFC.


Product Listing Scheme

This scheme is operated along similar lines to the Product Certification Scheme. However it offers a cost-effective in the absence of a national or international standard for the product. In this case, the product can be certified to association or industry standards as well as acceptable customer specifications. Pre Application fee of RM200 is payable upon application to Product Listing Scheme. Acceptance into this scheme has to be approved by SIRIM QAS International's Certification Panel.


Modular Coordination Verification Scheme

This is a concept of coordination of dimension and space, in which, buildings and components are dimensioned and positioned in terms of basic unit or module, known as ‘1M’ which is equivalent to 100 mm. It is internationally accepted by the International Organization for Standardization (ISO) and many other countries including Malaysia.


Batch Certification Scheme

This Scheme provides third party certification of products and is based on the ISO certification system no. 7, where a batch of product is sample tested and a certificate of conformity and/or labels are issued to the batch. The certification is based on a Malaysian Standard, an International Standard, an International Standard or a foreign standard of a national standards organisation.


IECEE CB Scheme

The electrical and electronic is Malaysian largest export revenue earner netting more than half of total export. As good and services flow across borders, business partners and government agencies may require assurance that they measure up to standard, regulations and other requirements.


IECEE CB scheme is one of the multilateral recognition agreement schemes that reassure industrial users and consumer that the product they buy conform to the criteria of an IEC international standards and require no further testing or evaluation. SIRIM QAS International Sdn. Bhd. is now an Issuing and Recognizing National Certification Body (NCB) of the CB Scheme. The Product Certification Section is designated as the NCB and the Electrotechnical Testing Section as the Certification Body Testing Laboratory (CBTL).


The aim of the CB Scheme is to provide manufacturers seeking worldwide third party certification marks, the most economic and cost effective procedures within the best certification time frame.


Fire Listing Scheme

Currently, certification on several passive fire protection products such as fire resistant door sets and roller shutters is being carried out by SIRIM QAS International Sdn. Bhd. These products are certified as a system which includes components such as the door leaves, frames and ironmongeries. Due to this “system” certification, the products certified must be sold with the exact same components or of equivalent or better grade than those used during testing.


Electromagnetic Compatibility Certification Scheme

Ensuring that electrical and electronic products/equipment are safe and do not interfere with the normal operation of other equipment is the basis of the emc Scheme. With the Scheme, which can be best demonstrated through independent third-party certification, manufacturers will be able to apply the emc-mark.


Sirim Eco-Labelling Scheme

Eco-labelling is a means of communicating product’s environment information to consumers and business. This information provides consumers and business the associated environmental benefit and enables purchaser to make decision based on environmental attributes. Under SIRIM QAS International Eco-Labelling Scheme, a product will be independently tested and verified against preset criteria before the organisation is allowed to use SIRIM QAS International’s Eco-Labelling mark on its product, packaging and promotional materials.

 
SIRIM QAS International’s Eco-Labelling mark is an effective marketing tool which will enable a company to position its product as an environmentally-friendly product. This, in turn, will give the product a competitive edge over other similar products in a consumer market that is increasingly becoming more environmentally conscious.


Product Certification Process
  1. Enquiry
    • The applicant should complete the Questionnaire in the Application Package and submit to SIRIM Qas International Sdn. Bhd. Based on the Questionnaire, a question will be prepared and sent to applicant for consideration. The quotation should provide an estimate of the total cost for certification.
  2. Application
    • Upon agreeing to the quotation, the applicant is required to submit the application form (PCS/FOR/01-2), Declaration for Approval from Relevant Authority (for Malaysian manufaturers only), Declaration for Approval for Trade Mark Registration/ Brand Name (PCS/FOR/01-3-1), accompanying product information + fees + test report (if available)
  3. Document Evaluation
    • SIRIM QAS International will conduct standard/product design Evaluation
  4. Factory Audit
    • Inspection conducted to examine Quality Control plan adequacy, test equipment and calibration and record keeping system.
  5. Sample Selection & Testing
    • Sample of product will be randomly selected and sent to accredited testing laboratory for testing
  6. Recommendation and Approval Process
    • The Certification Panel reviews and approves the recommendation for certification under the authority of the Certification Advisory Committee
  7. Surveillance
    • Planned inspection and re-tests conducted to monitor continuing compliance. Samples selected from production or open market will be retested.
  8. Renewal
    • Approval for renewal on satisfactory inspection reports and payment of fees.

 

 

CONTACT US

SME Corporation Malaysia,
Level 6, SME 1, Block B 
Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur.

General Line: 03-2775 6000
Fax Line: 03-2775 6001
Info Line: 1-300-30-6000
Email: info[at]smecorp[dot]gov[dot]my

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