Opening Speech. The 8 th International Roundtable on Automotive Recycling 2014 Kushiro, Japan. ( 1 st 4 th Oct 2014 ) Presented by : Mr.
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1 The 8 th International Roundtable on Automotive Recycling 2014 Kushiro, Japan Opening Speech ( 1 st 4 th Oct 2014 ) Presented by : Mr. Gwee President of MAARA
2 The 8 th International Roundtable on Automotive Recycling 2014 Kushiro, Japan ( 1 st 4 th Oct 2014 ) Presented by : Dr Wong Say Ho Exec Director of MAARA
3 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
4 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
5 Current Auto Parts Recycling Industry in Malaysia 10.3 m vehicles on the road 3rd South East Asia automaker 0.5 m new vehicles register yearly 50% cars aged more than 10 years, 30% more than 15 years old. 0.6 m ELVs - average age is 20 years 800 auto parts & components manufacturers, - 50% are exporters. Parts & components export increased 11.6% - from US$1.22b in 2010 to US$1.40b in 2013 Auto repair parts market - US$ 3b Export to 150 countries and the top 3 markets are Thailand, Indonesia and China.
6 Current Auto Parts Recycling Industry in Malaysia Recycled auto parts is 8% Recycled Parts Price is 60% of the new US$ 200m imported used auto parts / yearly 80% are imported from Japan. 60% of the imported used parts re-exported MAARA members: 70% of their sales are recycled parts 30% are scraps. Malaysian National Automotive Policy (NAP 2014) aims to increase by 2020: Parts & Components exports to US$ 3.2b Recycled parts & Remanufactured components - export to US$1b
7 Current Auto Parts Recycling Industry in Malaysia The usage of recycled auto parts among the Malaysian motorists have been in practice for more than a decade & is acceptable by many users However, this industry is still very dispersed & difficult to regulate & control. We need to transform to value adding the industry but lacking of the industry standard and a systematic ELV processing approach to regulate this industry. Easily accessible and without much regulated of the recycled parts in the market place has somehow generated some concern within the Government and the public in terms of used parts safety, quality and environmental issues
8 Current Auto Parts Recycling Industry in Malaysia Today, the use of internet for sales of used auto parts is opening up the industry to an unregulated population that is focused only on the profit, ignoring essential quality, safety and environmental standards. With internet and e-business, transactions can be done virtually and globally. This set a new challenge and complicate the marketing approach and regulations. The internet allowed online interactive shopping of parts globally which might pose questions on warranty, quality, physical goods condition, creditability, regulated sites, registration, originality, etc
9 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
10 National Automotive Policy (NAP) 2014 In 2009, the Malaysian Government had implemented the National Automotive Policy (NAP) which will ban on the used imported automotive parts and components by the year End-of-Life Vehicle (ELV) policy is among the NAP which will be implemented by 2015 or 2016 in stages. NAP s aim is to reform automotive industry, transform, regulate and enhance the used parts recyclers industry in terms of safety, quality and environmental friendly. However, we foresee more than 2,000 auto used parts dealers will be impacted with the implementation of the NAP policy.
11 National Automotive Policy (NAP) 2014 NAP 2014 framework on Safety, Security and Environment 1. Promote vehicle Safety & Security through standard across related used & new parts End of life vehicle (ELV) policy Vehicle inspection policy 2. Protect Environment through Implementation of Euro 4M Adopt 3R (Reduce, Reuse, Recycle) Transform Recycling industry to Remanufacturing industry Transform aftermarket into regulated industry towards environment and consumers focus.
12 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
13 Malaysia Automotive Institute (MAI) s Objective To enhance and transform the auto recycling industry to be a regulated industry which is one of the main economic contributors to the Malaysia GDP & also contribute to environmental matters.
14 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
15 The Role of Malaysia Automotive Recyclers Association (MAARA) MAARA, being the voice and platform of the automotive recyclers is putting effort to transform the industry to be a value adding industry. We need a roadmap and proper governance & structural mechanism to regulate & enhance this industry for the quality recycled auto parts, for safety usage and for environmental friendly. In line with the NAP and to address these main concerns, MAARA has proposed a national Standard Operations Procedures (SOP) to the Malaysia Automotive Industry (MAI) and the Government with respect to ELV processing & recycling approach which is to be implemented by stages.
16 MAARA s Proposed Standard Operating Procedures (SOP) The objectives of this proposed SOP are to regulate the auto recycling industry so as to enhance public perception, ensure safety & environmental friendly to develop a Recycled Parts Information System (RPIS) database to reform the current business to a structured & organized model without comprising the welfare of the recyclers. to enhance the industry and contribute higher economic value to the national GDP to reposition Malaysia as Quality Used Parts (QUP) hub in the ASIAN region.
17 Proposed Plans in the MAARA s SOP Formulate the policies and standards to regulate and reform the recycling industry. Implement the industry code of conducts, best management practice, accreditation and certification program. Transform & enhance the industry thru value adding activities as regards to recycled and remanufactured parts. Establish research activities & to pursue strategic alliances with the local and international institutions for knowledge information and knowhow exchange, include a knowledge dbase Setup human capital development & training program as part of the operators education on the latest information and to conduct public awareness campaigns on the recycling industry with the environmental conservation.
18 MAARA s SOP Approach and Implementation Plan MAARA needs to work closely with MAI to obtain their assistance, support and endorsement. MAARA will be instrumental in helping MAI to reach a new milestone in addressing its NAP 2014 roadmap. Cooperation from other related industry associations is important. Assistance, endorsement and approval from various Ministries and Government agencies concerned is needed so to ensure its success. In this MAARA SOP, there will be 3 phases, which will be implemented in stages according to the scheduling over the next 3 years.
19 MAARA s SOP Implementation Plan The proposed SOP will be implement gradually by 3 stages. Adaption stage ( 12 months ) Adoption Stage ( 12 months) Standardization stage ( 12 months )
20 MAARA s SOP Proposed BEST Practices Warranty provision based on mileage or time limit Information disclosure on vital info such as :- Engine number / Make & model / Origin country / Mileages travelled / Engine brief conditions / Year of make / Year of end-of life / Nature of end-of life / Dismantlers info / Grading system ( ie: A, B, C ) Need to develop an Industry Recycled Parts Information System (RPIS)
21 AGENDA Malaysian Used Parts Industry Malaysian National Automotive Policy (NAP) Role of Malaysia Automotive Institute (MAI) MAARA Recommended Roadmap (SOP) MAARA Industry Collaboration
22 MAARA, Access Green Association & AGA Clarity MOU 8 th September 2014 Promote Advocacy of Recycling Industry Interests Promotes Collaboration with: Universities Government ICT Industry International Best Practise Bodies Media
23 Bumiputra Data Experts - Analytics Consultant, Product, System Integrator MAARA Industry Collaboration Malaysian Partners Media System Integrator Trusted by Government Industry Researchers Academia Big Data Enablers
24 Malaysian Consortium MAARA SOP PHASE 1 ADAPTION PHASE Malaysia s first step in Digitising Recycled Parts has been completed 24
25 MAARA SOP Adaption Phase Electronic Vehicle Plan Solution Ministry of Transport Genesis of Recycled Parts Information System (RPIS) eka 25
26 Phase 1 Success Commercial Truck Rebuild Limited Electronic Data On-Line Inventory Plans Conversion Hardcopy Plans 2001 Data Migrated Auto Design Certifications Creates a Standard Multi-Agency Data Sharing Enforcement Crime Prevention Big Data Analytics Enabled 26 Page 26
27 Smart Society Certification Enforcement Solution HEAD Catalogue BODY Catalogue GENERATE PLAN ACCESSORY Catalogue 27 Page 27
28 Malaysian Recycled Parts Framework V1 Clients (Manufacturers, Dealers, Direct Clients, Individuals) Automated and Optimised Consulting Firms Professional Engineers BIG DATA ANALYTICAL OPTIMISATION SMART SOCIETY ENABLER Approval Authorities Only one service needed to handle many relationships Central Cloud Computing Services Automotive Graphical Application publishes secure information and services Enforcement Officers 28 Page 28
29 Recycled Part Customer Recycle Parts Operations Motivating a Global Automate Optimise Innovate Automate ISO9000 & ISO Optimisate Big Data - empower Market Innovation Music, Video Content Delivery Staff Self Care Automate Order ManagemnetUnified Catalog Revenue Mgmt Process Voice and Video Conferencing Guardian/Blog Innovate Video Mail Box Multimedia Conferencing Physical Inventory Logical Inventory Service Customer Eng. & Planning Apps Fulfilment Apps Assurance Apps Unified Data Lake Workflow Messaging Bus Real Time Behavioural Engine Optimise Transactions Recycled Parts Infrastructure Mediation Module E PSTN IP Network 3G/3G LTE Radio As 29
30 Applying Big Data to the Recycled Parts Global Industry Business Quality Optimisation Actionable Insight Big Data Real Time Analytics Data in Motion Real Time Action: Decision Intelligence What do I do? Can I learn? Real Time Insight: BI Data at Rest Adaptive Analytics Predictive Analytics Reporting Data Management (including data migration, data quality, data modeling) What will Happen? Why did it Happen What was the Impact What Happened TM Forum Beyond BI, CEM 30 30
31 Government Trusted BIG Data Optimisers Proven Malaysian Big Data Track Record 31
32 Malaysian Big Data Trusted Government Partners Geopolitical Psychographic Demographic Big Data Analytics 32
33 Malaysian Opportunity to Collaborate We are ready to collaborate with IRT Learn, Apply learnings, Grow in win-win Partnerships Recycled Parts Empower Smart Society Greenfield - Recycled Parts and Workshops are unregulated Government Endorsement - Government is seeking Global Best Practise to support Recycled Parts Export as a Regional Hub of parts trade Internal consumption to meet Environment Targets and GST Introduction Sandpit of Learning - Strong alignment between Government, Industry and Academia, with willingness to make Malaysian the first adopter of a Smart Global Recycled Parts Framework covering Policy, Regulation, Enforcement, Standards, Process, Systems, Open Data. Sandpit for developing global used parts optimisation through Collaboration MAARA, Access Green and AGA Clarity are seeking out collaboration today with IRT member associations and its individual members through MOU. 33
34 Thank You!
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