MALAYSIAN PRINTING CHALLENGES IN COMMERCIAL PRINTING
3. The adoption of international standards
The printing industry in Malaysia is more dependent on the local market, gradually embarking the international market. The size of the print product export is still small compared to neighboring countries like Singapore and Thailand. However, efforts are started by the printing companies in Malaysia to penetrate overseas markets. This is supported by one of the participants:
“However, the customers from overseas are more emphasis on quality and give high profit margins compared to domestic customers. Now, the company is trying to focus on the international market. The reasons are a high profit, the large quantity print order as well as a consistency in monthly orders.”
(Senior production manager, company I)
However, in some cases, when local printing companies is to have business with the international market, they are required to be certified in order to be eligible to get the printing jobs or contracts. This regulatory has impacted the local small and medium sized enterprises compared to large companies. Generally from preliminary study concluded the importance of standards highlighted by large printing companies. The large- sized printing companies have clients from abroad and perform for high-quality printing works. Usually, the best quality management practices always implement by large companies compared to small and medium enterprises (SMEs). Generally, the large companies have realized that they will gain the internal and external benefits for organization through the adoption of international standard. The international standard is work as a marketing tool for the company. In addition, the companies will able to increasing the productivity and profitability, motivation for employees, the production under control and efficient quality management. With strong capital lead the large printing companies are able towards ISO certification and quality management practices.
Meanwhile, the local SMEs are more focus on local market, instead of international markets. Participants from medium and large printing companies commented on implementation international standard:
“Our company has entered the international market to strengthen its business. To enter the international market by having an international standards accreditation is an advantage to the company. In 2011, our company has been certified for ISO 12647-2 (printing standard) by an international standard of certification bodies. The benefit of certification is give confidence to our company to produce high quality printing. Our production is
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also able to achieve print quality at 400 lines per inch (lpi), which could not be achieved by most competitors in the market. In addition, our company is able to build the confidence and trust of customers with quality print produced.” (Managing Director, printing company F)
Currently in Malaysian printing industries, there are less commercial printers adopting good quality management and have international standard certification. Even though, the total number of Malaysian companies certified for ISO 9001 are large and continue to increase yearly. However, the printing industry has adopted international standards is unknown. In the context of, international printing standards, currently, there are only four commercial printing companies in the large and medium sized that are certified as a Process Standard Offset (PSO). The fact is, if the printing output produced is still below the standard required, the customer or allied printers are reluctant to give the printing job to any printer that is not capable to produce good printing quality, especially associated with the SMEs printing companies. Some of the medium and large printing companies commented:
“Process Standard Offset (PSO) has grown quite long time, but it still not acceptable in Malaysia. It is involve with many work processes. The adoption is very slow in Malaysia compared to Europe.”
(Senior production manager, company B)
“There are not many book printing companies having the ISO certification. They do not emphasize the international standards that are associated with the nature and practices of printing the book in the context of Malaysia. Local market was also felt that the international standard is not very important in Malaysia. It is quite important and useful for the packaging printing that need the accuracy of the printing color.” (Managing Director, company F)
By having any international certification it would become a stepping stone to a company to move ahead and penetrating oversea market. The international jobs required certain requirements in order to get the job.
However, to get international certification, the company needs to invest in term of consultation, training and equipment. Some participants from large printing company gave statement from their experience:
“Nowadays, quality is very important in the market, any problems the customers will get the free copies”
(Senior Production manager, company B)
“To get Process Standard Offset (PSO) certification will involve with costs, need some investment. Therefore, the company try to get the printing jobs that required high quality printing. The customers are willing to pay more.” (Senior Production manager, company A)
The participant from small printing company gave statement from their experience associated with the adoption of international standard:
“Standard certification obtained can be a marketing tool and can make it easier to get printing work from customer. Printing working practices are based on standard is still unfamiliar among the local printer, but it will eventually be implemented by a local printer in the near future."
(Managing Director, printing company D)
The return on investment will be gained at least three to five years after the implementation. Normally in this case it gives some pressure to small company. Factors such as capital, technology and knowledge always make small and medium companies lagging in the printing market. The large printing jobs usually are secured by large printing companies compared to small companies. Finally, the capital strength and size of the market and existing customers is a determining factor for printing company moving towards the international standard certification.
CONCLUSION
This effort is conducted to bring the printing industry in Malaysia to become more competitive as well as the printing companies can survive in the printing businesses. This research could have an impact on the printing industry in Malaysia. The challenges for current and future in the printing industry needs to be understood precisely for business survival and allow the printing companies to establish new business models. Researches on current trends and challenges should be carried out at the largest setting in the Malaysia context. The results of this study will close the gap of the lack of information regarding the printing industry in Malaysia.
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Furthermore, the current business activities should not mainly reduce the price and profit margin, but the most important things are how to attract the customer’s attention. The customer’s attention can be achieved through the improvement in customer service, produce the better quality product, faster delivery and offering competitive price. Nowadays, the printing company cannot simply provide what customers want. They need to provide more than that, for example able to provide the solution center to the customer, providing ideas that are innovative, offering an efficient and knowledgeable employee. Therefore commercial printing companies are able to deal with the opportunities and threats of globalization business changes.
The emergence and development of digital printing process cannot be denied. The digital printing process has become more popular compared to conventional printing processes such as offset lithography, flexography and gravure. The advantages of digital printing processes such as fast, short production cycle and save costs have put pressure on offset printing process. However, it is becomes a trend where the printing company invests and equips them with the digital equipment and offset machinery. Therefore, it will create opportunity to company in getting biggest market share as well as giving selection of printing services to the customers. The developments in digital printing technology should not be seen as a rival to offset printing. Instead they need to develop a strategy to make both printing processes complement each other. The customers are given the option through the printing processes that offered by the printing company. Therefore, the customer loyalty to the commercial printing company will be sustained.
Meanwhile, the commercial printing company in Malaysia should be prepared to change mindset to develop a new business strategy in line with current developments. For example by accepting international standards in helping companies improves businesses performances and sustain in business. Therefore this indicates that the adoption of international standards can be an important issue to be considered as a strategy for business growth and development. If they do not act to change, the company will face a failure to compete in the global and domestic print market as well as improvement of internal production performances.
This confirmed, the adoption of international standards among printing companies will strengthen and improve the businesses performances. This is also one of the reasons why this study is conducted to help printing companies to be aware of the opportunities and barriers faced effective business performance through adopting the quality management. It not only provides internal benefits to the company even externally impact to the company. Printing company in Malaysia is now working towards producing the better quality print product.
Many of printing companies’ usually large size company already embedded the quality program in their business practice compared to SMEs printing companies.
ACKNOWLEDGEMENTS
We would like to acknowledge The Ministry of Education and UiTM for the financial support under SLAB Scholarship. This study was conducted in Create Research Lab, Faculty of Art & Design, established by CoRE Humanities, Design & Creativity, Universiti Teknologi MARA (UiTM). Fully appreciation for all parties who participate in this research.
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