TEEAM organised a press conference on 24th July 2010.  The aim was to hightlight on power factor requirement and foreign workers issue.

TEEAM’s Proposal on Power Factor (PF) Requirement

According to United Nations Framework Convention on Climate Change (UNFCCC) report, Malaysia agreed to reduce its carbon emissions by 40% by 2020 with support from developed countries. The Prime Minister Dato’ Seri Mohd Najib Bin Tun Abdul Razak announced in Copenhagen, 16th December 2009, that Malaysia is adopting an indicator of a voluntary reduction of up 40% in terms of emission intensity of Gross Domestic Product (GDP) by the year 2020 compared to 2005 levels. PF improvement can reduce the need of power plant-up and thus reduce our emission levels.

The current TNB tariff requires PF to have a minimum of 0.85 for voltages below 132 kV.

In view of the advantage of increasing power distribution if the PF requirement is improved, therefore TEEAM proposes that it is necessary to have a new PF requirement. The proposal is additional to the present PF requirement in the tariff structure.

TNB’s present PF requirement:

1. PF below 0.85 and up to 0.75 lagging, a supplementary charge of one and one-half per cent (1.5%) of the bill for that month for each one-hundredth part (0.01) below 0.85 and up to 0.75 lagging PF will be added to the bill for that month, and
2. PF below 0.75 lagging, in addition to the harge payable under subparagraph (a) above, a supplementary charge of three per cent (3%) of the bill for that month for each one-hundredth (0.01) part below 0.75 lagging PF will be added to the bill for that month.

TEEAM feels that we should be fair in all contracts. If there is penalty for bad PF, there should be a corresponding reward for achieving good PF.

TEEAM’s Proposal:

If PF is above 0.85 an incentive discount of one percent (1%) of the bill for that month for each one hundredth part (0.01) above 0.85 lagging PF will be given to the bill for that month.

Advantage of setting a higher PF requirement

If the overall PF can be kept at 0.95, it means that there is an extra 10% electrical power in the system available for distribution. TNB can sell an extra 10% WITHOUT incurring any extra cost, and the amount of carbon reduction would be substantial.

Foreign Workers

Issue Our unemployment rate is below 4% which is the international benchmark for full employment.  This has created a demand for the need of workforce across the whole spectrum. The shortage of workers is real and is across the whole spectrum ie from 3D (Dangerous, Difficult & Dirty) workers right up to engineers and managerial level.

The government has made it very easy to employ expatriates earning above RM 8,000 but has placed a lot of restriction for employing labourers. This has inevitably hindered opportunities for Malaysians to improve their earning capability as they are forced to continue at their current position as companies could not expand their operation due to shortage of labour. The weakness of government policy in this area has also resulted in increasing numbers of illegal foreign workers and the government is loosing income of Billions of Ringgit in levies which could be used to improve the lives of Malaysians in general.

The following sectors where TEEAM members operate that need foreign workers:

1. E&E equipment factories like lighting, cables, busway, ballast;
2. Panel builders; and
3. Electrical contractors.

TEEAM hopes that the government understands that the need for foreign workers is real for our manufacturing and services companies. Without them, it is impossible for them to maintain stable output or some may even have to stop operation. Hence, TEEAM calls on the government to recognise this fact and come out with clear policy to manage foreign workers in an orderly manner across the whole spectrum of the industry and not just selected sectors. Malaysia needs foreign workers to help us moved into the high income economy.

There are many well trained foreign workers who have been working here for many years but are forced to return to their countries after their permit expired. These are skilled and productive workers whom the government must allow them to remain in Malaysia to continue working to help in the country’s development. Only with a steady supply of workers will the companies be able to expand and create higher income opportunity for us Malaysians.

Conclusion

TEEAM President, Engr Fu Wing Hoong expressed his gratitude to members of the Press for their support and presence.

During press conference – Issues highlighted to the Press by TEEAM Exco.