Feature Article - Delivering Trust in the Global Market  
 


In order to remain a competitive economy, it is imperative for Malaysia to raise the international acceptance of its products and services through globally recognised accreditation.

Advancements in transportation, information technology and communication have shrunk the world. These, together with the irresistible march of globalisation, has accelerated trade liberalisation and the integration of economies worldwide. Today, for example, products that are assembled by Malaysian manufacturers may be made of components supplied from far-flung places like China, Europe or North America. In the global market, organisations often encounter and buy from numerous foreign companies that are unknown to them. Without recommendations or the familiarity of trusted contacts and past experiences to draw from, purchasers need another way to trust suppliers. The competence of these suppliers can be confirmed via accreditation – a formal endorsement of an organisation’s or person’s competence in carrying out specific tasks.
Trade is not the only aspect that is being globalised. Security, health, education, energy and environmental issues are also a worldwide concern. Therefore, trans-border trust created by accreditation is essential. It reduces risks for Governments, businesses and consumers, guaranteeing the fair trade of quality goods and services as well as promoting on national and international levels. Thus, in order to remain a competitive economy, it is imperative for Malaysia to raise the international acceptance of its products and services through globally recognised accreditation.

Made in Malaysia, Trusted by the World
The Department of Standards Malaysia (STANDARDS MALAYSIA) takes on the role as the national standards and accreditation body. In addition to promoting national standards, STANDARDS MALAYSIA also maintains the credibility, integrity and competency of the national standards and accreditation programmes.
At the international level, STANDARDS MALAYSIA is responsible for safeguarding the nation’s interest in regards to standards and accreditation, and in the process facilitates international trade and heightening cooperation amongst countries.
So how does Malaysia deliver trust? How does the nation reassure the global market that its products and services meet customers’ requirements as well as international standards relating to health, safety and quality requirements? One of the primary methods in achieving this is through participation in multilateral recognition agreements, whereby certifications issued by STANDARDS MALAYSIA’s accredited bodies are accepted in other membership countries.
STANDARDS MALAYSIA is a signatory to the International Accreditation Forum (IAF) Multilateral Recognition Arrangement (MLA). Members of IAF are only admitted to the MLA after having their procedures and operations strictly evaluated by peer evaluation teams responsible for ensuring that applicants will comply with international and IAF requirements. By joining the IAF MLA, ISO 9001 and ISO 14001, conformity certificates issued by certification/registration bodies accredited by STANDARDS MALAYSIA will be recognised by other member countries of the IAF programme. Certification bodies accredited by STANDARDS MALAYSIA are recognised to be competent in carrying out certification audits.

STANDARDS MALAYSIA is also a member of the Pacific Accreditation Cooperation (PAC), which operates within the framework of the IAF and cooperates with other regional groups of accreditation bodies. PAC represents the interests of Asia Pacific countries, and promotes the global acceptance of accreditations granted by its member organisations.
In the fields of laboratory accreditation, STANDARDS MALAYSIA is party to both the Asia Pacific Laboratory Accreditation Cooperation (APLAC) and the International Laboratory Accreditation Cooperation (ILAC) mutual recognition arrangements. In 2007, STANDARDS MALAYSIA extended the scope of its Asia Pacific Laboratory Accreditation Cooperation Mutual Recognition Arrangement (APLAC MRA) for medical testing. APLAC is a network of accreditation bodies in the Asia Pacific region, while ILAC consists of over 70 countries worldwide. The acceptance of STANDARDS MALAYSIA as a member of APLAC and ILAC has enhanced the acceptability and credibility of medical test results and the competency of the National Accreditation Body.


Instilling Confidence through Accreditation
When harmonised at international level, accreditation supports free trade of products and services that conform to customer needs and legal requirements. It can help manufacturers produce parts that are interchangeable and usable in other countries, thus lowering the cost of production and negating the need for multiple versions of products.
Accreditation can be a sign of recognition and acceptance for products hoping to gain entry into foreign markets. Through mutual recognition agreements amongst countries, accreditation encourages trade and market growth by eliminating the need for multiple assessments of the same goods in different countries. For example, a Malaysian manufacturer of refrigerators can get its products tested by SIRIM, which is accredited by STANDARDS MALAYSIA for product certification. Approval by an accredited laboratory assures the manufacturer that its products conform to pertinent national, international and/or foreign standards, thus giving it confidence to venture into overseas markets.
In this case, the refrigerator manufacturer’s credentials are assured of, and its products will be accepted in all countries that recognise STANDARDS MALAYSIA’s accreditation without the need for any further testing.
Although in seeking accreditation there is the potential for organisations to become very prescriptive and hesitant to change for fear of not complying with external standards, the same accreditation also serves as a valid means of verifying claims made by the organisations on quality, performance and reliability. Companies may claim that their product is of the highest standard, is safe to use, reliable, and what not, and it may well be true, but without certification from an accredited certification body, the authenticity of their claims can be questioned by consumers and Governments, and it will be difficult for their product to be widely accepted. In other words, companies that are accredited can gain public trust and confidence better. The public will recognise that the company cares about its operations and is doing something to maintain the trust. Accreditation can also help form a favorable first impression of the company, whereby customers will trust the firm by association of its accreditations. This in turn enhances an organisation’s competitiveness.


In accredited laboratories or certification bodies, the employees are given a set of clear policies and procedures so that they know exactly what to do, and they are aware of the companies missions and goals and what is expected of them. This leads to greater accountability among the staff and development of clearly defined scopes of responsibilities that help to reduce confusion and eliminate overlapping job functions. Accreditation also gives assurance to the public that the various departments in companies are operating to a minimum standard consistent with global requirements.
Apart from assuring consumers the safety and quality of the manufacturers’ product, service and staff, accreditation also gives manufacturers the confidence that their product is working the way it should while meeting all necessary safety and quality requirements. Accredited organisations will be proven in their ability to operate efficiently and meet compliance standards due to a proven management system with written directives, ample training and clearly defined roles of authority for employees. The upshot for these organisations, in addition to gaining consumer trust, is that accreditation bolsters Government support for them, giving them greater justification for assistance, such as loan requests. Another benefit is that it promotes research and development in manufacturing and testing.
Accreditation encourages self-regulation in the industry, in support of, or as an alternative to legislation. Self regulated and accredited organisations are more readily trusted because they operate based on standards that promote quality. The set of Malaysian Standards, for example, offer a vast set of standards covering such varied fields as food preparation, chemicals, agriculture and engineering, which all promote safety or quality. These standards provide information about the qualities and characteristics of a seller’s products. Testing organisations like SIRIM, for instance, provide these benefits when doing technical evaluation of products.

Striving in Global Economies


The value of accreditation is increasingly recognised by countries worldwide. The trust delivered by accreditation helps us make informed decisions in all aspects of life, from the television sets we buy, countries we visited to the universities we attend. For businesses, it can make the difference between mediocrity and excellence. Mutual recognition programmes bring down technical barriers, helping to facilitate international trade by increasing acceptance of products and services across nations worldwide and eliminating the need for reevaluation in every country.
As such, global economies should enhance cooperation and strive for more multilateral mutual international recognition programmes. Positive steps have already been taken: ILAC and IAF recently marked June 9, 2008 as the first International Accreditation Day to highlight how accreditation underpins free global trade.
In view of the new economic scenario brought forth by globalisation, the onus is on Malaysian manufacturers and service providers to cooperate with accredited certification bodies and ensure that their products and services are certified and trusted by the global market.

References:
1. STANDARDS MALAYSIA website - http://www.standardsmalaysia.gov.my/
2. ILAC website - http://www.ilac.org/
3. IAF website - http://www.iaf.nu/
4. APLAC website - http://www.aplac.org/home.html
5. http://www.quality.kck.usm.my/index2.php?option=com_content&do_pdf=1&id=130

 

For more details, please contact:
Department of Standards Malaysia (STANDARDS MALAYSIA)
Ministry of Science, Technology and Innovation
Century Square, Level 1 & 2, Block 2300
Jalan Usahawan,
63000 Cyberjaya
Tel: 03-8318 0002 Fax: 03-8319 3131
Email: info@standardsmalaysia.gov.my
Website: www.standardsmalaysia.gov.my

 
 
Copyright © 2007, IKM. All rights reserved.