BACKGROUND INFORMATION

The Ministry of Domestic Trade, Co-operatives and Consumerism was established on 27 October 1990. The objectives of Ministry are to promote the development of a viable, competitive and sustainable domestic economy, specifically in the Distributive Trade Sector.

The Distributive Trade Sector is one of the main contributors to the National GDP and it acts as a buffer to economic stability, especially during the times of uncertainty and unpredictable situation of the global economy. Distributive trade needs to be strong so as to counterweigh any instability in the economy.

At the same time, the Ministry is committed in protecting the interest and rights of consumers. This includes development of an ecosystem of consumers and businesses that complements each other towards self-regulation, in line with the aspirations of people in a developed country. It is hoped that matured and ethical consumers and business can be developed, with the outcome of an economically and socially balanced nation.

In 2009, the Ministry’s roles and functions were expanded to cover the Franchise and Co-operative Sectors.


FUNCTIONS OF KPDNKK

KPDNKK formulates policies, strategies and reviews matters pertaining to the development of the domestic trade i.e. Distributive Trade and Consumerism Sectors.

Scope of Work for the Ministry :

(i) Domestic Trade

  • Develops business opportunities and socio-economic standing of the Malaysian citizen through the profiles of wholesalers and retailers, co-operatives, franchise, direct-selling, hawkers and petty traders as well as downstream sectors of petroleum;
  • Determines and monitors prices of essential goods;
  • Controls and monitors the sales and distributions of essential goods, petroleum and petrochemical products and direct-selling trade;
  • Implements the regulation on metric weights and measures;
  • Regulates matters pertaining to companies and businesses based on the related acts;
  • Encourage good corporate governance practices; and
  • Develops and administers the intellectual property protection system.

(ii) Co-operative

  • To formulate policies that is related to co-operative sector.
  • To regulate co-operative sector (Co-operative Act 1993).
  • To execute developmental projects and programmes.
  • To conduct training in co-operative sector.

(iii) Consumerism

  • Carries out consumer education programmes.
  • Enhances programmes on consumer awareness and consumer protection.
  • Encourages and assists consumer movements.

VISION & MISSION

KPDNKK is moving towards becoming a national premier Ministry as a ‘Caring Ministry’. It is guided by its vision that is ‘Domestic Trade As The Backbone To A High Income Economy’.

Three missions of the Ministry are :

  • Accelerate main domestic sectors that are viable, competitive and sustainable;
  • Domestic economy grounded by fair competition and innovation; and
  • Develop a trade ecosystem based on ethics and protection of consumer’s interest.

Ministry’s Motto

“Thriving Trade Blessed Consumers”

Ministry’s Core Values

  • Co-operation
  • Trustworthy
  • Commited
  • Just

KPDNKK’S CORE STRATEGIC

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KPDNKK TOP MANAGEMENT

timbalan-menteri

YB DATO’ HENRY SUM AGONG
Deputy Minister
Ministry of Domestic Trade, Co-operatives and Consumerism

YB DATO’ SERI HAMZAH BIN ZAINUDIN
Minister
Ministry of Domestic Trade, Co-operatives and Consumerism

ks

YBHG. DATO’ SRI JAMIL BIN SALLEH
Secretary General
Ministry of Domestic Trade, Co-operatives and Consumerism

tksYBHG. DATO’ BASARUDDIN BIN SADALI
Deputy Secretary General (Domestic Trade)
Ministry of Domestic Trade, Co-operatives and Consumerism

tks

YBHG.DATO’ HAJI RAZALI BIN OTHMAN
Deputy Secretary General (Consumerism & Management)
Ministry of Domestic Trade, Co-operatives and Consumerism


KPDNKK ORGANIZATION CHART

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POLICY

1 : POLICY STATEMENT

1.1 : The main purpose of the National Intellectual Property Policy (NIPP) is to harness intellectual property (IP) as a new engine of growth for the   enhancement of economic and social prosperity.

1.2 : The NIPP focuses on maximizing the contribution of IP in accelerating the socio-economic and technological development through the creation of an environment that encourages continuous creation of IP, provides a high standard IP protection system, promotes exploitation of commercially potential IP, fosters development of the supporting industries and builds human resource capability to successfully implement the policy.

1.3 : The importance of IP to economic growth has long been recognized. In the current knowledge-based economy, IP is a valuable economic asset as well as a critical business tool that provides competitiveness. Managing and harnessing IP strategically is the gateway to enhance Malaysia’s long-term competitiveness in the knowledge economy.

2 : RATIONALE FOR NIPP

2.1 : The NIPP is needed as a principal guide in enacting laws and regulations relating to IP and in implementing all IP related activities of the Government agencies, research institutions, and institutions of higher learning, non-governmental organisations and the private sector with an aim to promote harnessing of IP for socio-economic and technological development. NIPP is also used as a guide in enacting other economic or social policies of the nation.

2.2 : The policy is needed to facilitate the formation of an environment that stimulates and fosters the creation, protection, enforcement, management and maximum exploitation of IP aimed ultimately at developing a vibrant IP industry as a future driver of growth of the nation. The aim is to anchor the NIPP as an integral and integrated component of the nation’s economic policy to enhance Malaysia’s competitiveness.

2.3 : The policy is also needed to promote and instil IP culture among the business community as well as the public. The aim is to create a community that values IP as a valuable economic asset and respects the right of owners.

2.4 : The policy is also required to support one of the objectives of the Multimedia Super Corridor Bill of Guarantees ‘to become a regional leader in IP protection and cyber laws’, National Biotechnology Policy and National Convention on Biodiversity Policy and other policies that are related to IP.

3 : OBJECTIVES OF THE NIPP

3.1 : Highest Standard of IP Protection System

Develop an efficient and effective IP protection system to ensure fast and easy acquisition of protection and rights as well as competent and practical enforcement mechanism that provides redress and solutions to infringements of IP rights as well as deters the repetition of infringement. In today’s world where technology changes rapidly, a quick and easy Protection of IP gives owners better competitive advantage and longer period to exploit the IP created and acquire from their efforts and investment. The owners are therefore encouraged to further develop IP and create new ones. From the legal perspective, all IP laws and regulations need to fulfill the local requirements and meet the standards set by international treaties and conventions that Malaysia is a party to.

3.2 : Promotion of IP-generated Activities

Promotion of IP-generated activities by focusing on managing research innovation as well as research and development more effectively among the research institutions, universities, small and medium industries (SMIs) and individuals as well as through acquisition of foreign IP on selected priority areas. The promotion of these IP-generated activities necessitates the creation of a conducive environment that provides incentives, grants, management, finance, business transactions, enforcement and dispute settlement.

3.3 : Promotion of Commercial Exploitation of IP

Promote commercial exploitation of IP as the key value creating activity essential to the development of an IP industry. The ultimate aim is to develop a vibrant IP industry that is crucial to sustain Malaysia’s economic growth in the new millennium.

3.4 : Development of proficient

IP Management capabilities, both in the public and private sectors, to cover the whole IP chain of activities from creation to protection, exploitation, valuation, licensing, acquisition, enforcement and dispute settlement. Management capability is vital to a mature and sophisticated IP industry.

3.5 : Development of Infrastructure for IP Transaction

A vibrant IP industry requires the presence of a highly developed support industry particularly those in the banking and finance. There is therefore the need to look into the business, banking and financial infrastructure in relation to the present and future IP-based transactions particularly trading, licensing, mortgages and securities.

3.6 : Protection of National

IP ensure that Malaysian IP interest is safeguarded at the international level by monitoring the developments in IP in the international arena and actively participating in international forums that address the enhancement of IP protection, new emerging issues and new challenges brought about by rapid technological progress.

3.7 : Human Resource Development and Public Awareness

Promote human resource development with an aim of creating a large pool of experts for the management of IP at all levels of the chain of activities, for the business transaction of IP and for the commercial exploitation of IP. It is also essential to increase the level of public awareness relating to the purpose of having an IP protection system, the important role of IP in the socio-economic and technological development of the nation and the need to give recognition and respect to the exclusive rights of the owners of IP as conferred by the law. Human resource development and public awareness can contribute to the reduction of IP infringement to instil IP culture.

3.8 : Promotion of Foreign Investment and Technology

Transfer Encourage greater foreign investment and technology transfer by guaranteeing the highest standard of IP protection for IP brought into Malaysia, the opportunity to acquire returns from their investment and the availability of legal channels to seek redress and solution in cases of infringement. With the availability of foreign technology, the transfer of the needed technology into local industry can be encouraged through acquisition, licensing, franchising and etc.

4 : AIMS OF THE NIPP

4.1 : Enhancement of Economic, Social and Cultural Prosperity.

The main goal of the NIPP is to enhance the socio-economic prosperity of the community by harnessing IP as a new economic growth through expanding Malaysia’s capacity to increase the generation of IP, to effectively protect and enforce, to properly manage and to maximise the commercial exploitation of IP.

4.2 : Strengthening the Nation’s Competitiveness

Strengthen the long-term competitiveness of the nation, by developing the IP industry into a mature and highly developed industry that generates, manages and commercialises IP effectively.

4.3 : Malaysia as a Leading IP

Hub Develop Malaysia into a leading IP hub where the generation of economic value from IP-driven business activities will strengthen Malaysia’s overall economic performance. With mature and highly developed IP industry, Malaysia can be a net exporter of IP.

4.4 : Establishment of an IP Culture

Promote and instil IP culture among the business and industrial community as well as the public. IP has to be accepted as an important and valuable asset in the national socio-economic development and catalyst to progress    in knowledge and technology that will ensure a long-term competitiveness   of the nation. As a valuable asset, IP has to be effectively managed in order to ensure that it is protected, further developed and its economic potential exploited to the maximum.

5 : STRATEGY

The following main strategies could be implemented in order to achieve the stipulated objectives:

5.1 : Highest Standard of IP Protection System

Developing an efficient IP system will entail the following strategies:

i) Strengthening the IP administration of the Intellectual Property Corporation of Malaysia (MyIPO) to meet the yearly increase in registration applications and needs of clients as well as to provide simple application procedures and speedy registration, clear registration guidelines, quality public search facilities and efficient information dissemination system.

ii) Constant updating of laws and regulations to keep abreast with international development, new challenges and new issues.

iii) Capacity building to create a large pool of human resource proficient in registration and enforcement of IP.

iv) Strengthening of the Government’s enforcement agencies that enforce infringement of IPR under the Trade Descriptions Act 1972, Optical Disc Act 2000, Trade Marks Act 1976, Patents Act 1983, Copyright Act 1987, Industrial Designs Act 1996, Layout Designs of Integrated Circuits Act 2000 and Geographical Indications Act 2000.

v) Setting up an IP Court to expedite the hearing of IP-related cases as well as an alternative dispute resolution system.

5.2 : Promotion of IP-generated Activities.

The promotion of IP-generated activities will entail the following strategies:

i)Highest standard of IP protection system that ensures fast and easy acquisition of protection and rights enabling owners to have a better competitive advantage and acquire returns from their efforts and investment.

ii)Pro-active MyIPO Resource Centre to make available and encourage the use of valuable patents and industrial designs data that contain information on the latest inventions or state of the art technology as well as latest world trends in specific fields of technology by industries and individuals involved in the research and development of IP.

iii)Create an encouraging environment that provides incentives, grants, finance, management, business transactions, enforcements and dispute settlements.

iv)Enlarge the national IP pool by promoting and focusing on invention within Malaysia.

v)Acquire foreign IP in selected priority areas as well as encourage IP-intensive foreign ventures to bring their IP into Malaysia.

vi)Foster cooperation and smart partnership between the government and the private sectors and between research institutions and industries.

vii)Promote distribution of research and development results.

5.3 Promotion of Commercial Exploitation of IP.

The promotion of commercial exploitation of IP will entail the following strategies:

i) Capitalise existing IP pool and acquire greater commercial value.

ii) Identify IP creators in Malaysia and nurture their development to maximise IP value acquisition.

iii) To support SMIs, venture companies and individuals involved in commercial exploitation of IP.

iv) Stimulate entrepreneurial activities focusing on exploitation of commercially viable IP.v) Create a business environment to encourage local and foreign enterprises to anchor the whole, if not the substantial part, of the IP value chain in Malaysia.

vi) Promote suitable valuation methods, contractual and licensing rules to facilitate commercial exploitation of IP.

vii) Promote release of IP rights not exploited by the Government or large companies to SMIs and individuals for commercial exploitation through licensing or assignment.

5.4 : Development of IP Management Capabilities.

The promotion of the development of management capabilities will entail the following strategies:

i) Develop a core of specialist experts at all levels of the IP chain of activities.

ii) Encourage public and private sectors to effectively manage IP owned, by having clear guidelines or manuals.

iii) Encourage IP owners such as foreign investors to use Malaysia as an IP management hub.

iv) Review existing laws and regulations as well as business practices to better manage and exploit IP within both the public and private sectors

5.5 Development of Infrastructure for IP Transaction

The development of an infrastructure for IP transaction will entail the following strategies:

i) Review the current laws and regulations in the company law, securities regulation as well as banking and finance law in general to ensure the business, banking and financial infrastructure can facilitate IP-based transactions.

ii) Encourage the banking and finance sector to develop IP-based banking and financial instruments for mortgage and securities of IP assets.

iii) Create IP Exchange to stimulate the trading if IP and to develop more liquid market for IP trading.

v) Review existing laws and business practices with the purpose to enhance the business environment for financing IP-based investments including setting up a specialised IP Financing house.

5.6 Protection of Malaysian IP Interest

The promotion of a Malaysian IP interest will entail the following strategies:

i) Monitor the development and progress of IP at international level.

ii) Participate actively in international forums that address the enhancement of IP protection, new emerging issues and challenges brought about by technological progress.

iii)Formulate a national stand on important issues by discussing with the relevant agencies and organisations in both the public and private sectors.

5.7 Human Resource Development and Public Awareness.

The promotion of human resource development and public awareness on IP will entail the following strategies:

i) Set up a National Institute to provide specialised IP training programme in the areas of rights acquisition, enforcement, dispute settlement, management, valuation and licensing as well as general awareness.

ii) Introduce the subject of IP in the formal education system in primary and secondary schools as well as institutions of higher learning.

iii) Conduct continuous and regular public awareness programmes, which focus on specific target groups as well as the public in general.

iv) Disseminate information through mass media, publications and etc.v) Hold seminars, workshops, talks, interviews and public campaigns.

vi) Participate in exhibitions organised by the Ministry of Domestic Trade and Consumer Affairs or other public and private agencies.

5.8 Promotion of Foreign Investment and Technology Transfer.

The promotion of foreign investment and technology transfer will entail the following strategies:i) Highest standard of IP protection system that guarantees protection of IP rights, ensures investors the opportunity to acquire returns from their investment and provides legal channels to seek redress and solutions for infringement.ii) Facilitate the local industry to acquire needed foreign IP through licensing, franchising and etc.

6: CONCLUSION

IP is a major strategic asset and its effective exploitation is one of the keys to enhance Malaysia’s economic and social prosperity. The effective and successful implementation of the NIPP is one of the critical steps to spur Malaysian national competitiveness and to enable Malaysia ultimately to become a developed nation.

OBJECTIVE

The Fair Trade Practices Policy (FTPP) was approved on 26 October 2005 to seek the following policy objectives:

  • Promote and protect competition in the market;
  • Create dynamic and competitive entrepreneurs;
  • Provide fair and competitive market opportunities for businesses;
  • Prohibit anti-competitive practices including those originating from outside Malaysian and affecting the domestic territory;
  • Prohibit unfair trade practices in the economy;
  • Promote rights of SMEs to participate in the market place;
  • Promote consumer welfare; and
  • Encourage socio-economic growth, generate efficiency and equity.

1 : POLICY STATEMENT

The NCP focuses on initiatives to inculcate self-protection by the consumers and self-regulation by the traders / manufacturers, and to achieve an effective consumer protection level which will provide an environment that is conducive for the establishment of a fair market and sustainable developments in tandem with the local and global economic developments.

2 : RATIONAL OF THE NATIONAL CONSUMER POLICY

2.1 : The ultimate goal of national development is to improve the quality of life of the people who are also consumers. The consumer’s dependency on goods and services in the market calls for a comprehensive policy to ensure that consumers and traders will play their roles and perform their respective responsibilities for the sustainable economic growths of the country. Consumers play important roles in driving domestic economic development to cushion the effects of the global economic turmoil.

2.2 : In this context, the NCP is needed as the basis, principles and guidance in the formulation of policies and laws related to consumer welfare, particularly the aspects of consumer protection for the benefit of the consumers. The NCP should also be taken into account in the formulation of economic or social policies of the country. This policy is the basis of all consumerism-related activities by government agencies, Consumers’ Associations, other non-governmental organisations and the private sector in such a way that the culture of consumerism and sustainable production may be enhanced in the country.

2.3 : The establishment of the NCP is required to reduce the impact of globalisation on consumers, traders and the government. The diversity of goods and services and the technological advancements due to the economic liberalisation and globalisation will alter the legal, economic, trade strategy and social aspects of a country.

2.4 : The NCP is required to create consumer communities who practise self-protection by being smart, well-informed, proactive and responsible, able to influence the activities of the suppliers / manufacturers and sensitive to their actions and behaviours that will influence the social and economic situations of the country. Consumers who are capable and unified under the theme “1 Consumer 1 Voice” possess great power capabilities in determining the goods and services that should be available in the Malaysian market.

2.5 : The trading community plays a very important role in determining the well-being of consumers. In particular, traders who are ethical, practise self-regulation responsible and honest will be able to contribute to the welfare and well-being of the consumers.

2.6 : The NCP is required to achieve the Government’s vision to heighten the awareness and knowledge among the consumers and traders on their rights and their responsibilities while working together in achieving a comprehensive national prosperity. The NCP forms the basis of the programme in preparing the consumers and traders who are capable of playing active roles a high-income developed country.

To enable the co-operative movement to play a more active role in national development together with the public and private sectors, the National Co-operative Policy (NCP) 2002 – 2010 was introduced, outlining a number of implementation strategies. Under the NCP 2002 – 2010, the accountability structure of the relevant authorities was streamlined, all co-operatives were placed under one Ministry, with the Malaysia Co-operatives Societies Commission (MCSC) as the sole authority. Prior to this, agro-based co-operatives were monitored by the Farmers’ Organization Authority of Malaysia (LPP) while fishery-based co-operatives were supervised by the Malaysia Fisheries Development Board (LKIM).

This policy has been successful in providing a conducive environment for an orderly and structured development of the co-operative movement. This policy was implemented through programmes which included business development, access to financial resources, inculcation of entrepreneurial culture and enhancing the laws regulation and supervision of co-operatives. The impact of the programmes implemented can be seen in the increased growth of the co-operatives movement, well-being of the co-operative community and its contribution towards national development.

CLIENT CHARTER

The Ministry is committed in delivering quality and effective services based on the Client Charter as follows:

NO.

ITEM

DECISION PERIOD

(WORKING DAYS)

1.

Foreign participation in the distributive trade (for wholesale, retail and trade) application

8 days

with complete documents

2.

Foreign participation in Hypermarket / Superstore, Departmental Store & Specialty Store Application

16 days

with complete documents

3.

To process and to inform the approval of new application for Controlled Items License

7 days

4.

To process and to inform the approval of the application for renewing The Controlled Items License

7 days

5.

To process and to inform the approval on the application of amendment of storage quantity/business address/storage address/type of scheduled items on The Controlled Items License

7 days

6.

To process and to inform the approval of new application for the Direct Sales License

7 days

7.

To process and to inform the approval of the application for renewing the Direct Sales License

7 days

8.

Jawatankuasa Subsidi Diesel (JKSD)

1 day

9.

To process and to inform the approval of new application for PDA 1, PDA 2, PDA 3 and PDA 4 License

1 day

10.

To process and to inform the approval of the application for renewing PDA 1, PDA 2, PDA 3 and PDA 4 License for local and imported brand

20 days

11.

To process and to inform the approval of the application for renewing PDA License

10 days

12.

To process and to inform the approval of the application for PDA 5 License

20 days

13.

To process and to inform the approval of the application for renewing Manufacturing The Optical Disc License

14 days

14.

To process and to inform the approval of new application for Weight and Measures License within 7 working days of receiving the complete application

7 days

15.

To process and to inform the approval of the application for renewing Weight and Measures License within 5 working days of receiving the complete application

5 days

16.

Cheap Sale

1 day

17.

Approve and issue an Optical Disc Label

3 days

18.

To check and process all applications pertaining to participation in Franchise Development Programs subjected to term and conditions.

20 days

19.

(Section 6)                                          

To check and process registration application for franchisor and master franchisee upon completion of all required documents.

7 days

20.

(Section 55)                                        

To check and process registration application for franchisee to foreign franchisor and franchisee broker upon completion of all required documents.

7 days

21.

To carry out investigation towards complaints received from franchisor and franchisee.

45 days

22.

Filing and registration of Statement Of Claim (Form 1)

1 day

23.

Filing and registration of Statement Of Defence And Counter-Claim

(Form 2)

1 day

24.

To settle all claims registered

40 days

25.

Producing award after hearing

1 day

26.

Acknowledgment and responses to complaints received from complainant within 3 working days for complaints submitted by email, letters, phone calls and walk in complainants

3 days

27.

Resolution of complaints from complainant within 21 working days

21 days

DEPARTMENT

 


CHIEF INFORMATION OFFICER

tks

YBHG.DATO’ HAJI RAZALI BIN OTHMAN

Chief Information Officer
Ministry of Domestic Trade Co-operatives and Consumerism

Telephone : 03 8882 5558
Fax: 03 8882 5567
Email : razali[at]kpdnkk.gov.my


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