In conjunction with the seventh technical group meetings of the ASEAN Consultative Committee on Standards and Quality (ACCSQ), SIRIM Berhad organised two seminars concerning standards information and certification procedures on 10 June 1997. The seminars were well attended, including some 50 participants from the national standards bodies and industries in the region.
One of the seminars was on the exploitation of standards information for industrial growth. The other seminar was on product certification schemes being implemented in various ASEAN -member countries. The seminars provided the opportunity for participants in the region to exchange views and share information pertaining to the current topics on product testing and certification, standards information services and so on. which have become important issues in international trade. Resource persons for the seminars were drawn from the respective national standards bodies as well as the Information Handling Services (IHS), the latter being involved in information service business on standards and trade regulations.
The seminars were jointly opened by the President and CEO of SIRIM Berhad, Dr. Mohd. Ariffin bin Hj. Aton. In this opening address, he stressed the importance of information. Being the life-blood for business, information is required practically in all decision-making processes. Industrial enterprises must be conscious of the fact that various kinds of information signals concerning trade regulations, product standards, certification procedures etc. are being generated and constantly bombarding at them. All these information data would have important implications on their daily activities and business operations.
Information - critical factor
Information is indeed the critical factor for business success and industrial development. However, industries in the region are generally ignorant of its values and this makes information a very much under-utilised resource. Local industries seem to pay little attention to information, especially if it does not directly concern tariff and taxes. This situation is undesirable because changes to technical regulations and product standards have the potential to become barriers in trade at the international market-place. Therefore, industrial enterprises, particularly those involved in export trade must have the practice to closely monitor the requirements of the sophisticated global market in order to stay competitive in their business.
In this regards, ASEAN industries must learn from the experience of their counterparts in the developed countries, especially in the application of information for technological advancement and economic gains. They should realise that today, there is no wealthy, developed country that is information-poor. Similarly, non of the information-rich countries is poor and under- developed. In the developed world, enterprises are giving priority to information. In most business
corporations, information permeates the whole organisation. There are proper information departments in these corporations to monitor external signals; interact with them. react and respond accordingly to the needs of the market and customers.
By gaining early access to the latest information data, be it on new production technique, manufacturing material, certification requirement and so on, industries have the definite advantage to swiftly adapt to the changing needs of the international market, These industries are able to plan ahead of tohers and create the necessary opportunities with which to secure competitive edge and generate greater wealth and commercial success.
ASEAN Export Trade
In the recent years, ASEAN countries have attained impressive performance in terms of industrial development and export trade. Between 1990 and 1995, total ASEAN export grew by more than 120%. It is noted that the overall trend of export has been shifting from the primary commodities to manufactured goods. In 1995, overall ASEAN export was valued at US$311,489 million, of which about 80% came from the manufacturing sector. Needless to say, trading of manufactured goods is far more lucrative and brings better returns to investment by the industries. However, when dealing with external trade, one has to be really sensitive and alert with the changing needs and regulatory requirements of the global market so as to avoid falling prey to those new technical regulations and product standards imposed in foreign countries.
Apparently, industries in ASEAN region must use more information in planning and charting their business strategies. They should use information to improve the quality of their business decisions. This is the way forward to ensure sustained growth and continued development of the ASEAN export trade. In this connection, it is encouraging to find evidence that more industries are now aware of the importance of information. In the case of SIRIM Berhad, there are regular programs to promote the utilisation of information by industries. Over the past four years, its information services business has increased by approximately 80%. IHS has also reported fabulous business figures with more than 15,000 organisations in 95 countries subscribe to its various information services.
Information Strategy
National standards bodies are in the best position to provide the much-needed information support services to the industries. It is basically due to the fact that standards and certification are the central issues for the elimination of technical barriers to trade. Generally, these organisations have the resources, business networking and facilities to gain access to the most up-to-date information on standards, certification and others. They also have the ready linkages with local industries and exporters, who are the eventual end-users of this information. In addition, some of these standards bodies are already operating as the national enquiry point for trade-related technical regulations under the arrangement of the World Trade Organization (WTO). Such an arrangement would only further enhance the role of national standards bodies in providing the necessary advisory services to the exporters.
Consonant with the above, the ACCSQ is likely to play the key role to facilitate exchange of information between member countries in ASEAN. This would certainly contribute towards the enhancement of inter-regional trade in line with the development of the ASEAN Free Trade Area in the near future. However, for the continued growth and development of ASEAN industries, particularly in the context of export trade, we have little choice but to quickly put in place a comprehensive information strategy with the objective of providing the core of information which ASEAN industries would require to make important business decisions as well as to think across border to facilitate international trade.
Lee Yuke Chin
SIRIM Berhad
