The Premier Advocate for the Business Community - · PDF fileBusiness Synergy [28th CACCI ... light on the fast emerging industries to watch out for in the years leading up to 2020,

Driving Regional Business Synergy[28th CACCI Conference]

Climbing the Ranks to an Increasingly Global Economy

CEO Profile• Datuk Dr Rebecca Fatima

Sta. Maria• Tan Sri Dr. Sulaiman

Mahbob• Prof. Datuk Ismail Ibrahim

The Outcome of the 2014 Tourism Industry Campaign

KDN NO. PP 5124/06/2012 (029800) / VOL.18 Malaysian International Chamber of Commerce and Industry (16841-V)

the business Q4/2014

ADVOCATE"The Premier Advocate for the Business Community"

Asia Pacific As An Engine For

Sustainable Growth

BEYOND 2020BEYOND 2020Asia Pacific As An Engine For

Sustainable Growth

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Mahathir bin Mohamad, to embark on a commitment that would soon see Malaysia as a developed, and self-sufficient country in all economic aspects. With this playing a key part in the 28th CACCI conference, it further aims to look beyond the year 2020, and give the required attention to the long-term value of growing sectors in the economy.

Malaysia’s economy is set to transform in the following years, with the steady hope of achieving a high-income economy, which is self sufficient, based on services, and is private-consumption driven, with less reliance on oil production and its revenues.

Private consumption in the nation, now

accounts for more than half of the country’s gross domestic product, and the country’s

government revenue has increased due to the

broadened tax base. This in turn

has reduced Malaysia’s

MICCI is delighted to co-host this conference with the National Chamber of Commerce and Industry of Malaysia (NCCIM), to shed some much needed light on the Asia-Pacific region, in relation to the growing economic sectors that are significant to the development of the countries in that region. The coming together of more than 500 business practitioners and policy makers from 26 countries in the Asia-Pacific region, ensures a 2-day conference that will enlighten and build strong economically persistent business ideas that will work towards a more self-sufficient future for all participating nations.

The Vision 2020 plan was introduced by the former Prime Minister of Malaysia, Tun Dr.

On behalf of the Malaysian International Chamber of Commerce and Industry (MICCI), I am delighted to welcome all CACCI members and the business community at large to the 28th CACCI Conference in Kuala Lumpur.

President's Message

Simon WhitelawPresident MICCI

dependency on the oil and gas industry. But while this is the case put forth, the oil sector is still a crucial high-income earner for Malaysia. Alternative fuel sources are being developed and we hope a seamless transition can be made in the future to efficiently develop, use and sustain these alternatives.

The country’s gross domestic product expanded by 6.2% year on year in the first three months of 2014, which is its fastest pace in five quarters, as a result of consistent domestic demand and increasing exports out of the country. This has actually surpassed the expectations from quarter one. If more attention is given to this, Malaysia can hope to continue on this positive path of increased progress.

Participants of this year’s CACCI conference are sure to be engaged in valuable talking points from the exposure to topics that hold tremendous value for the future of Malaysia and it’s neighbouring countries. The nation is developing rapidly, which in recent years has largely diversified its economy.

Malaysia has a very promising front on several of its sectors that have huge potential in the coming future. Sectors like

tourism and education are expected to take noticeable strides for the economy. The total tourist arrival to Malaysia in 2013 was 25.7 million, with people of neighbouring countries like Singapore, Indonesia, China, Brunei and Thailand nationality settling in the top 5. By working towards its industry growth, more jobs can be created to counter the unemployment rate, which stood at 3.2% in the fourth quarter of 2013. Rightly, by giving due importance to one sector, a heavily dependent issue can see vast improvement. The Malaysian economy shows great promise, and these sectors can provide a higher standard of living for the nation, and is an achievable status when we look ahead to the next few years. We, at MICCI, place great importance in encouraging healthy business discussions and objectives, so Malaysia, as a nation, can work towards greater economic progress.

This issue of The Business Advocate will take an in depth look into topics within the theme of the upcoming CACCI conference, and we hope to encourage needed discussion and shed more light on the fast emerging industries to watch out for in the years leading up to 2020, and beyond.

President's Message

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Contents

CONTACT Malaysian International Chamber of Commerce and Industry (MICCI)

C-8-8, Block C, Plaza Mon’t Kiara 2 Jalan Kiara, Mon’t Kiara50480 Kuala Lumpur

T: +603 6201 7708 F: +603 6201 7705

PRESIDENT'S Message 03Simon Whitelaw 03

CHAMBER Chatter 08Stewart J.Forbes 08

28th CACCI Conference 17-21Driving Regional Business Synergy 17

MICCI Features 23-39Transport & Infrastructure: 23 A Pillar for Economic Sustainability

Climbing the Ranks to an 24Increasingly Global Economy

Laying the Groundwork to 27Boost Digital Infrastructure

The Outcome of the 2014 Tourism 31Industry Campaign

Importance & Impact of the Trans-Pacific 32Partnership Agreement

MICCI Features8 Good Reasons For Locating A 34Regional Office In Kuala Lumpur

Interior Design: Smart Strategies 36To Maximize Your Profit

Intellectual Property: 38Worldwide Protection

CEO Profile 41-48In Conversation With 41Datuk Dr Rebecca Fatima Sta. Maria

MICCI Chats With Tan Sri 45Dr. Sulaiman Mahbob

MICCI Speaks With Prof. 46Datuk Ismail Ibrahim

MEMBER'S News 50-58New Members 50

MICCI - Out & About 54

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appreciation of the risks and a willingness to manage risk appropriately will bring far more reward than an ostrich-like, head-in-the-sand perpetuation of the status quo.

MICCI commends the Malaysian government for its ongoing efforts to drive trade onwards and upwards. The Chamber’s hosting of the 28th CACCI Conference in KL in September with apex Trade Associations from over 20 nations in attendance to discuss Asian growth beyond 2020 is evidence of our commitment to keep the forward momentum going despite domestic, regional or international impediments.

At the same time there are low expectations in many quarters for a fruitful outcome of TPP talks in Hanoi in September. Informal talks are expected to confront some of the most contentious issues in the negotiations. However, New Zealand Trade Minister Tim Groser has now predicted that the negotiations will not be concluded this year due to lack of support for doing so in the U.S. Congress.

Whether the agenda comes from India, USA, or elsewhere, there appears to be increasing difficulty in reaching trade consensus and a tendency to hold one element of an agreement

Chamber Chatter

After years of argument and dispute, the Doha Round of WTO trade negotiations looked as though it might generate at least a small victory for multilateralism in the Ministerial Declaration of December 7th 2013.

Out of the relatively sparse set of agreements, the Agreement on Trade Facilitation seemed to be the most promising given that with increasing globalisation, the issues of fast, efficient and low cost cross border procedures are surely something that all can support and encourage.

Unfortunately this was not to be as demands over food security provided a rationale for India’s non ratification of the TFA.

as hostage to achieve another.

For Malaysia, trade negotiations are necessary as our relatively small economy seeks to grow with the aim of achieving developed nation status in the near future. Historically, Malaysia has been at the forefront of trade liberalisation in manufacturing and now services, and MICCI has always opined that this proactive approach has contributed greatly to the country’s success.

The impediments to further trade liberalisation must be challenged. Certainly, liberalisation brings with it risk as well as benefit but proper

Challenges To Trade

Stewart J. ForbesExecutive DirectorMICCI

Recent months have not been good for trade negotiations.

Business Advocate

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It will be an appropriate time for you not only to strengthen links with our Malaysian colleagues but also to explore the new opportunities that the country’s rapidly expanding market has to offer.

With your presence and active participation in the forthcoming 28th CACCI Conference, we hope to affirm CACCI’s role as a vehicle for addressing issues of common concern to the region's business community and for promoting regional cooperation.

The challenge therefore is to be able to achieve sustainable business growth amidst continuing changes in the economic landscape. Our Conference this year aims to provide a venue for our members to discuss and exchange ideas on trends and issues that are currently shaping the global markets. With the help of invited experts from the government and the private sector, we hope to take an in-depth look at some measures that policymakers could implement in various sectors of the economy to set in motion a virtuous cycle of stronger

investment and output growth over the

medium and long-term.

CACCI President's Message

Our annual gathering this year takes place at a time when the global economy is showing signs of bouncing back, five years after the global financial crisis, pulled along by a recovery in high-income economies, as well as by a firming up of growth in developing countries, thanks in part to still strong, though moderating, growth in China. However, while global economic indicators show improve, analysts note that there are still dangers that lurk beneath the surface.

I cordially welcome all our members to this year's annual gathering and take advantage of another important opportunity to exchange views on how CACCI, as a regional association of businessmen, can help our respective countries – and the Asian region as a whole – achieve sustained economic growth and remain an important contributor to the world economy.

I am also particularly pleased that the Malaysian International Chamber of Commerce and Industry (MICCI) and the National Chamber of Commerce and Industry of Malaysia (NCCIM) have taken the initiative to co-host this year's Conference. It underscores their strong commitment to the Confederation and the chamber movement in the region.

Amb. Benedicto V. YujuicoPresident, CACCI

It is with great pleasure that I welcome all CACCI members and our colleagues from other countries in the region to this year's 28th CACCI Conference in Kuala Lumpur.

Business Advocate

• Malay Chamber of Commerce Malaysia

• Associated Chinese Chambers of Commerce and Industry of Malaysia

• Malaysian Associated Indian Chambers of Commerce and Industry

• Malaysian International Chamber of Commerce and Industry

On behalf of the National Chamber of Commerce and Industry (NCCIM), I am delighted to welcome all CACCI members and the business community at large to this Conference.

The National Chamber of Commerce and Industry of Malaysia comprises 5 constituent chambers, namely:

I am indeed honoured that the 28th Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) Conference 2014 is held in Kuala Lumpur, Malaysia; co-hosted by the Malaysian International Chamber of Commerce and Industry (MICCI) and the National Chamber of Commerce and Industry of Malaysia (NCCIM).

NCCIM President's Message

Datuk Syed Ali AlattasPresident, NCCIM

• Federation of Malaysian Manufacturers

My sincere appreciation to the 5 constituent chambers and CACCI members for supporting this conference.

The CACCI Conference 2014 has an extensive programme of business talks and meetings; it is also an excellent networking opportunity to build and renew relationships - I assure

you that it will definitely be a worthy experience not to be missed.

I urge you therefore to participate fully in the 28th CACCI Conference from 17 to 19 September 2014.

I am driven to design for both personal clients as well as the consumer, getting them to understand trends while keeping my sense of design style. The possibilities for growth and creating style are sometimes overwhelming, but I must be able to stand proudly next to my pieces and know that to some extent, they bring love and joy into people's lives, for I believe that our environment creates a sense of wellbeing. Therefore, my signature is on everything I create as an assurance of this. I love being a part of that.

Clearly understanding the core or inner workings of design before creating something interesting on the outside, brought to light the realization that the inner workings of design set the palette to creating something beautiful.  If it doesn't work inside, it can't work outside.

Similar to Japan, the spaces were small and compact.  Yet the design environment was more contemporary and leading edge with still a slight English influence.  Modern design styles with more traditional fabrics or details.  To some extent, there were no rules in Hong Kong.

As a 16-year old in his native Canada, Blaine showed a strong inclination towards home décor at an early age. Once, when his parents were away in the United States, he hired a contractor to repaint and wallpaper his family home’s kitchen and bought new dining chairs. His parents, upon their return, were less than impressed with his redecoration initiative, but following positive comments from family friends, the changes were reluctantly accepted. Eventually, his parents even started asking him for advice. This made him feel like a professional at the age of 16.

During this time, Blaine also worked in Hong Kong, where he quickly immersed himself into the Hong Kong interior design scene, which he describes as a blend of ‘ancient culture and nouveau riche’. While in Hong Kong, Blaine coped with the steep learning curve by combining several diverse design elements,

As the Creative Director and Design Consultant of Blaine Robert Design Sdn. Bhd., the world of design is at my doorstep,

says Blaine Robert.

Following his 2 year on again off again stay in Hong Kong, Blaine moved on to Singapore in 2000, attracted by the city state’s clean lines and West Hollywood design. It was here that his modern designs with a Balinese twist were born - a mix of distressed woods with high gloss aluminium finishes, with neutral coloured walls and loads of accessories. These he considers among the most fun designs in Blaine’s career.

After graduating from the University of Calgary in 1986, Blaine worked in Canada for two years. In 1988, inspired by Japanese architecture and minimalist design, he made the decision to move to Tokyo, where he spent the next 12 years working in freelance design. 

Designing for the Japanese market presented a challenge to his design aesthetic, and he quickly learnt to incorporate functionality into minimalist design. The ability to create an environment free of clutter which was still visually appealing set a fundamental foundation in his design approach.

Blaine is based in Kuala Lumpur and intends to stay as seen by the incorporation of his own company, as there is a demand in the country for his signature adventurous, left-field designs. Blaine’s path to Malaysia took him through several countries in the Asia-Pacific region, where he picked up eclectic design elements and inspiration from the various cultures in which he found himself designing.

which made him realise the importance of seeing the big picture before designing or purchasing materials and other items. His understanding of how things fit together before actually proceeding helped Blaine avoid several disappointments and costly mistakes along the way.

Ultimately his time in Singapore opened Blaine up to the possibilities and potential of the booming property market in Malaysia, in particular Kuala Lumpur.

In 2002, Blaine took the leap and moved to Malaysia. Now with his own firm BLAINE ROBERT DESIGN SDN. BHD., the rest, as the saying goes, will be history.

KL was abuzz over the weekends at that time and I took full advantage of the excitement and had the great opportunity to meet some of the most amazing Malaysians. I felt at home, welcomed and thought, there is no better place to start all over again than where I felt so comfortable.

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The 2014 CACCI Conference, organised by the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI), is the 28th conference to be organised by this non-governmental organisation. The collaborative meeting acts as a platform to promote regional business cooperation among the respective business communities, regional representatives and CACCI members in attendance. CACCI is a grouping of apex national Chamber and Business Associations from over 26 countries within Asia and the Western Pacific region. Its main objective is to promote business interaction in order to further economic growth for the entire region. This in turn, expands the national boundaries for local and regional businessmen alike. In collaboration with CACCI, the conference is co-hosted by the Malaysian International Chamber of Commerce and Industry (MICCI) and the National Chamber of Commerce and Industry Malaysia (NCCIM). MICCI, as Malaysia’s longest established trade association, is an

active CACCI member, furthering overall regional benefits among other primary, affiliate and special members of CACCI.

CACCI’s prominent regional standing, and MICCI’s established position in the business community in Malaysia, allows for a complementary affiliation that represents both local and regional benefits. MICCI’s main objective is to facilitate and support their members in developing successful businesses in Malaysia, through its engagement with both Federal and State Governments.

As the co-host of the conference, NCCIM comprises five Chamber groups reflecting the interests of the various business communities in Malaysia, Malay, Chinese, Indian, manufacturers and international (MICCI). As, a primary member

of CACCI, NCCIM plays a lead role in representing Malaysia and its interests in both the domestic and international fronts.

Motivation

CACCI’s aim in promoting these annual conferences is primarily with a view to facilitate trade, and the sharing of views and ideas. These meetings give like-minded business individuals, corporations and organisations an opportunity to strengthen regional economic cooperation.

The conferences provide a beneficial platform that encourages a vibrant conversation on common business issues and explores ways to bring about solutions that will help overcome regional challenges. It gives organisations a way to strike up a two-way conversation, and a way to gain information that they can take back to

motivate their respective business communities.

These enlightening sessions also serve in providing current and valid information that will also further the initiatives of various international and regional organisations, such as the United Nations and its associate agencies, the International Chamber of Commerce, the World Chambers Federation, EUROCHAMBRES, the World Trade Organisation, the Asia-Pacific Economic Cooperation (APEC), the ASEAN Chamber of Commerce and Industry, and many more.

Looking Back

CACCI has been organising its annual conference since 1996, which when the first conference was held in Taipei. The initial conference lasted for five days, and was centered around the main theme,

The Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) is a regional grouping of APEX national chambers of commerce and industry, business associations and business enterprises in Asia and the Western Pacific.

It is a non-governmental organisation serving as a forum for promoting the vital role of businessmen in the region, increasing regional business interaction, and enhancing regional economic growth.

Since its establishment in 1966, CACCI has grown into a network of national chambers of commerce with a total of 28 Primary Members from 26 countries.

It cuts across national boundaries to link businessmen and promote economic growth throughout the Asia-Pacific region.

ORGANISED BY:

The National Chamber of Commerce and Industry of Malaysia (NCCIM) is the umbrella platform comprising of five principal Malaysian private sector organisations concerned with commerce and industry. NCCIM traces its origin back to 1962, where by virtue of a cabinet decision gave rise to the need for its establishment, when four principal Chambers of Commerce united to form the United Chambers of Commerce of Malaysia.

It was restructured in 1974 to include the Federation of Malaysian Manufacturers and was renamed the National Chamber of Commerce and Industry of Malaysia.

CO-HOSTED BY:

Founded in 1837, the Malaysian International Chamber of Commerce and Industry (MICCI) is Malaysia's longest established trade association.

With close to 1000 corporate members representing over 30 countries including Malaysia, MICCI is recognised as one of the most active advocates for the business community.

MICCI’s mission is to facilitate and support Members in their goal to successfully develop their business in Malaysia through its engagement with both Federal and State governments.

HOSTED BY:

Driving Regional Business Synergy Bringing Businesses Together To Preserve Asian Momentum Of Growth

Stewart J. ForbesExecutive Director, MICCI

“Part of the reason why the CACCI Conference is returning for its 28th installment is because of the business community’s strong support. Indeed, the conference’s effectiveness in spurring and stimulating new business is what keeps people coming back year after year”

28th CACCI Conference

18 19

which was “Economic Development and Regional Cooperation”, with talking points including operations of Chambers of Commerce, development banks and financial cooperation, industrial productivity and cooperation, agricultural productivity and cooperation, and multilateral trade.

Through the years, CACCI conferences have been held in various countries across the Asia Pacific region. Previous host countries include South Korea, Japan, Australia, India, Philippines, New Zealand, Vietnam, Sri Lanka, Turkey, Nepal and now finally, Malaysia.

Key topics for discussion during these conferences included regional economic cooperation, global and local challenges in economic development, the development of trade, regional mutual cooperation, global dynamism and

sustainable development, among others.

Gaining momentum as the years go by, the CACCI conference is now an anticipated event among regional business communities. In fact, the conference has increased in regularity, and has been held on an annual basis for seven years consecutively, since the 22nd conference in 2008.

The 28th conference in 2014 follows the highly successful conference in Cebu City, Philippines in 2013, carrying the theme “Asia-Pacific: Catalyst to Global Recovery”. In light of this, the current conference aims to build further on global relations as a way to drive sustainable economic growth.

2014 CACCI Conference

2014 marks the 28th CACCI Conference, and will be held in Kuala Lumpur, Malaysia, from 17 to 19 September with

its theme “Beyond 2020 – Asia Pacific As An Engine For Sustainable Growth”. This is the first time that the full conference is being held in Malaysia. Co-hosted by MICCI and NCCIM, this event will provide a platform for prominent industry speakers, personalities and experts to come together and share their insights and thoughts on how businesses, along with their governments, can help strengthen and attain sustainable growth and development for the Asia-Pacific region in the years ahead.

Though 2014 marks the full CACCI Conference’s debut in Malaysia, CACCI Council meetings have been held previously in Kuala Lumpur including the 45th and 67th Council Meetings respectively convened in 1992 and 2003.

The 45th CACCI Council meeting was highly concerned with the

General Agreement on Tariffs and Trade (GATT) Uruguay Round. Members were called upon to discuss possible scenarios that could result from the ongoing negotiations, focusing on the opportunities for trade and regional cooperation that could open up following its successful outcome, as well as on the negative implications and measures to counter them should the Round lead to failure. The meeting featured the then Minister of Foreign Affairs of Malaysia, Dato’ Abdullah Ahmad Badawi as the keynote speaker.

The 67th CACCI Council meeting was held with the theme “Linking Businesses in Asia: The Way Forward” with the then Minister of International Trade and Industry of Malaysia, Dato’ Seri Rafidah Aziz as the keynote speaker. The Council agreed to create a new special membership category for SMEs and

micro-enterprises, and agreed to designate specific roles for each of the four CACCI Vice Presidents.

This year, the 28th CACCI Conference will bring together about 400 business delegates from 26 participating countries within the Asia-Pacific region. The scope of this conference will be to encourage a healthy debate on the measures that regional business can take in order to reach the objectives of sustainable economic growth. While Asia is currently the most dynamic economic region globally, the CACCI Conference will encourage attendees to look beyond 2020, to a more long-term view of Asian economic sustainability.

Day one of the conference comprises internal CACCI council meetings, with the exception of a special half-day segment on

Business Advocate 28th CACCI Conference

“Discover Business Opportunities Through CACCI” that will feature trade and investment opportunities in a selection of economic areas, including, Malaysia, Iran, Russia and Mongolia. Days two and three are dedicated to the CACCI Business Conference in particular, giving center stage to over 50 prominent speakers ranging from leading economists, to business practitioners and regional policy makers from Malaysia, Russia, India, Japan, Singapore, Taiwan, Italy, Turkey, Philippines and many more global industry representatives.

Speakers from various sectors and backgrounds will cover current, pressing economic issues over the length of the conference, which looks at the Asia-Pacific region and how it plays a key role in the advancement of the global economy, over the next ten years and beyond.

The sessions will last a total of three days, and cover topics on advancement of trade liberalisation and regional synergy, the services in the Asia-Pacific region in supporting the growth of SMEs and entrepreneurship, women in business, investment opportunities in hydropower, and green energy for sustainable development to name but a few.

As with previous CACCI conferences, the 28th conference is set to attract attendance from around the region, for an event that is set to build new and lasting connections in a vibrant business environment. The collaboration of prominent regional members of the business community will ensure that all in attendance will take away valuable insights for long-term sustainable economic growth in the Asia-Pacific region.

MICCI and NCCIM are proud to have been accorded the opportunity to work hand in hand with CACCI in bringing this significant conference to Malaysia. MICCI extends its sincere appreciation to the CACCI secretariat for their tireless cooperation leading up to this conference, and the organisers and co-hosts express their gratitude to all sponsors and partners in making this event a success.

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Business Advocate

Anshul Sonak Regional Education Director, Intel Technology Asia Pte Ltd

Dr. Mario Arturo Ruiz Estrada Econographicologist, University of Malaya

Dato’ Hafsah Hashim Chief Executive Officer, SME Corporation Malaysia

Agil Faisal Chairman, Panel on Young Entrepreneurship, SME Corporation Malaysia

Dato' Ir. A. Bakar JaafarProfessor, UTM Perdana School of Science and Technology Innovation Policy

Anura Lokuhetty Chairman, Asian Council on Tourism

Jagdeep KaironManaging Director of The Ethical Alliance, Singapore

Cihan Candemir Chairman, Asian Council on Contracting and Construction

Anna Marie Periquet Chairperson, Young Entrepreneurs Group of Asia Pacific

Dato' Ghazali bin Dato' Mohd Yusoff Exe. Chairman/MD, Nusantara Technologies Sdn Bhd

Arthur Y. C. Chiao Chairman & CEO, Winbond Electronics Corporation

Bryan Clark Director of Trade and International Affairs, Australian Chambers of Commerce and Industry

Dr. Ali Akbar FaraziVice President, International Affairs, Iran Chamber of Commerce, Industries, Mines and Agriculture

Fione Tan Councilor, The National ICT Association of Malaysia (PIKOM)

George Abraham Chairman, SME Development Council

Georgy PetrovVice President, Chamber of Commerce and Industry of the Russian Federation

Guido Bolatto Secretary General, Torino Chamber of Commerce and Industry

Gyanendra Lal PradhanChairman, Energy Committee, Federation of Nepalese Chambers of Commerce & Industry (FNCCI)

Hazli Jemaat Senior Deputy Director, Malaysian Investment Development Authority (MIDA)

Datuk Dr Rebecca Sta Maria Secretary General, Ministry of International Trade and Industry (MITI)

Dr. Gwo-Jiunn Huang Chairman, Asian ICT Council

Dr. Chien-Fu LinProfessor, The Institute for Advanced Studies in Humanities and Social Sciences, National Taiwan University

Dato' Halimah Bt Hassan Director General, Department of Environment

Dato’ Dr Wong Lai Sum CEO, Malaysia External Trade Development Corporation (MATRADE)

Jemal Inaishvili Board Member, Georgian Chamber of Commerce and Industry

José PrunelloChief, Trade Support Institutions Strengthening Section, International Trade Centre

Kamil OthmanVice President, Creative Multimedia, Multimedia Development Corporation (MDeC)

Professor Lynn J. Frewer Newcastle University

K. K. ModiChairman, Modi Enterprises

28th CACCI Conference Speakers

Mahendra K. SanghiVice Chairman, World Chambers Federation

Dr. Mehdi Fakheri Director-General, Islamic Chamber Research and Information Center

Dr. Sheikh Ghazali Abod CEO, Center for Entrepreneurship Development and Research (CEDAR)

Simon WhitelawPresident, MICCI

Dr. V. Sivapalan Co-Founder & Chief Investor, Proficeo Ventures Sdn. Bhd.

Stewart ForbesExecutive Director, MICCI

Professor Paul TengSenior Fellow, Nanyang Technological University

Pierre ChartierEconomic Affairs Officer, Transport Infrastructure Section, Transport Division, UN-ESCAP

Dr. Pradumna B. Rana Associate Professor, S. Rajanatnam School of International Studies Nanyang Technological University

Rash Bihari RauniarChairman, Asian Council on Trade Facilitation

Tan Sri Rafidah AzizChairman, AirAsiaX

Yeap Kok PengVice President, Economics and Investment, Iskandar Regional Development Authority

Zuhal MansfieldChairman, TMG Mining and Manufacturing

Datuk M. Supperamaniam Distinguished Fellow, Institute for Strategic & International Studies (ISIS)

Jane ChristensenDirector, Frost & Sullivan

Maggie HsuActing Director, Incubation Division Small and Medium Enterprise Administration, Ministry of Economic Affairs of ROC

Magvan OyunchimegVice Chairperson, Mongolian National Chamber of Commerce and Industry - (Mongolia)

Mahbub RahmanHead of Commercial Banking, HSBC Malaysia

Dr. Naoyuki Yoshino Dean, Asian Development Bank Institute

Ninad KarpeCEO/MD, Aptech Ltd.

Rosanna LlenadoPresident, AHEAD Learning Systems, Inc.

Dr. Seyed Hassan Tabatabaei Nejad Chairman, Asian Council on Health and Education

Mohammed Abdus SalamPresident, Bangladesh Organic Products Manufacturers Association

Zuaida Abdullah Director, Clean Technology and Environment Management Division, MIDA

28th CACCI Conference

23

Features

Transport & Infrastructure: A Pillar for Economic Sustainability

Malaysia is on route to becoming a self-sufficient, developed economy by effectively increasing its expenditure for infrastructure by around 9 percent a year between 2014 and 2025. Efficient infrastructure still remains a key contributor in Malaysia, and no country can achieve a self-sustaining status without the possession of well-maintained, developed and sustainable transport channels and infrastructure.

Over the last few decades, Malaysia has experienced high economic growth, which has effectively shifted its focus from an agricultural and commodity-based economy to a middle-income nation. This is due largely, to the various economically viable sectors that strengthened their infrastructure, and thus contributed to the economic progress of Malaysia as a whole.

Presently, the development of modern infrastructure is already well on track, with large investments having already been made to expand highways, railroads, seaports, airports and modern modes of communication, which include satellite communications and high-speed Internet.

Communication Content and Infrastructure (CCI) is becoming a steady and essential contributor to the national income, after oil and gas, electronics and electrical, and tourism. Global studies have also suggested that there is direct correlation between the penetration of communication services and gross domestic product growth.

The CCI industry is thereby doing its part in meeting its 33 billion Ringgit gross national income target for 2014, and furthering the economic progress of the country. The development of this sector is namely one of the 12 National Key Economic Areas (NKEA) reiterated by the Economic Transformation Programme that aims at making Malaysia a high-income nation by 2020. In line with the efforts propelled by the Economic Transformation Programme, the Tenth Malaysia Plan highlights the need to improve the quality of life and the value of the economy. Furthermore, the plan spurs the development of both urban and rural areas, which includes an investment to connect these two areas and promote the sharing of economic benefits.Given the under-development of many rural areas in Malaysia, the plan also voices the need to improve rural basic infrastructure, education facilities, utilities and economic activities. This is further elaborated under the National Key Result Areas (NKRA), which states that the government

will improve roads and the supply of water and electricity in Sabah and Sarawak.

The development of other vital types of infrastructure have also been highlighted in the Government Transformation Plan. Since 2009, the plan has given importance to rural basic infrastructure and the improvement of urban transportation. And three years ago, the plan accounted for the building of rural roads and rural electrification projects.

The Economic Planning Unit (EPU) has further reinforced these development strategies, but with greater emphasis on long-term integration and planning, which also encourages the use of public transport and intelligent transport systems in order to reduce congestion. The subsectors on EPU’s radar are roads and bridges, urban transport and rail, ports, airports, communications, water and sewage.

These initiatives have been put into full force, with the building of transportation channels that have changed the landscape of Malaysia.

A noteworthy structure that speaks to this progress is the completion of the second Penang Bridge. It measures 24 kilometers in length, and is the longest bridge in Malaysia, as well as the longest bridge in Southeast Asia. The 4.5 million Ringgit bridge is set to ease traffic woes. And the curved design of the bridge was chosen to improve the flow of traffic, and accordingly reduce the occurrence of traffic accidents.

The building of roads to improve modes and channel of transportation is also given specific focus by the Ninth Malaysian Road Conference. It encourages an active conversation on the building of transport and infrastructure that is in harmony with nature, so as to encourage the use of sustainable resources and deter the degradation of valuable environmental resources.

As Malaysia looks at the development of its mainland, maritime infrastructure is just as important for the fluid upkeep of import and export activities. The ports in the country play a tremendous role in the economy, through the transportation

24 25

Business Advocate

of bulk cargo. Global competitiveness of ports in the country will be ensured through upgrades at Westport of Port Klang in Selangor, Port of Tanjung

Pelepas in Johor and Penang Port.

Port Klang, in fact, is expected to be among the world’s busiest ports in

2016, when considering its expansion of both terminal operators and the support of the Port Klang Free Zone. Currently, the port is ranked 12th on the

world’s busiest ports list, based on last year’s volume of 10.3 million twenty foot equivalent units, which brought a 3.5 percent increase over 2012.

With the ongoing conversation on infrastructure that is beneficial to various sectors in the Malaysian economy, the Eleventh Malaysia Plan is set to further refine the objectives to advance Malaysia’s infrastructure. The plan, which is to be revealed mid of next year, serves to present viable initiatives and plans of action to propel Malaysia’s long-term goals of self-sustainability.

The progression of Malaysia’s expansion in global reach has seen the country’s ranking of world competitiveness improve substantially over the past few years, according to the World Economic Forum, which ranked it 24th most competitive last year.

Climbing the Ranks to an Increasingly Global Economy

Although, despite the considerable climb, Malaysia still has a long way to go before it has noticeable influence in the global market. This is possible by taking significant steps to build various reforms that govern the transformation of the Malaysian economy in terms of global relations.

Malaysia’s global ties have been strengthened to cover more expansive ground over time, with foreign policies being adjusted amidst the

changing landscape of global politics and economics. Moreover, the change in foreign policies have been necessitated by the advent of globalisation, which has largely impacted and altered the way we exchange information, products and services regionally, as well as globally.

Malaysia’s net foreign direct investment (FDI) grew by an impressive 22.2 percent to 12.3 billion US Dollars (39.6 billion Ringgit) in 2013, compared with 10.1 billion US Dollars in the

preceding year, according to the World Investment Report 2014 published by the United Nations Conference on Trade and Development. But despite seeing this positive growth, Malaysia still lags behind Singapore, Indonesia and Thailand in terms of the ASEAN FDI recipients.

This welcomed the need for renewed initiatives to strengthen both regional and international ties and therefore establish a more globally competitive marketplace. Such

steps were taken with regional trade relations involving ASEAN and Asia-Pacific Economic Cooperation (APEC), as well as other significant free trade agreements (FTA) in recent years.

But the negotiations and implementation of these FTAs have welcomed their fair share of public concerns surrounding pacts like the ASEAN Economic Community (AEC) and the Trans-Pacific Partnership Agreement (TPPA). Though, the Ministry of International Trade and Industry maintain the view that trade is a largely beneficial industry for the Malaysian economy and these strides will be more of a boon than a bane.

These trade pacts could bring more opportunities and investments in terms of duty-free and barrier-free markets, which will facilitate global import and export. Even the concern of a sudden increase in foreign products, was dispelled by the fact that foreign businesses have been coming into Malaysia for the past few years, and local businesses have taken it in stride and embraced the positive competition. This also led to these local businesses expanding around the region and rising to the challenge.

Progress in trade will also bring in more companies that import and export knowledge-based products and services, so as to better the skills of more Malaysian graduates, and thus match the skills that are asked of a more global market. Furthermore, this will motivate local companies to do the same, and build their resources with increased access to a more global economy.

As for bringing revenue into Malaysia, the country offers a cost-competitive location for investors who intend to set up offshore operations for the manufacture of advanced technological products for both regional and international markets. This progress reflects well on Malaysia as a site for business ventures.

These ventures thereby create a more global network, which is also the case with local companies choosing to expand abroad. The Malaysia External Trade Development Corporation (MATRADE) provides assistance to

SMEs that want to move into global markets, through their trade promotion and exporters development programmes, and constantly seek new ways to support and encourage Malaysian companies to participate in the global arena. Other non-profit organisations like Endeavor Malaysia also aim to support this venture, by breaking down economic and cultural barriers.

With ambitious ventures in place and some already in progress, Malaysia is also gaining momentum in the area of foreign finance and investment, and this move is garnering support from the government and the Prime Minister. This was made clear during the Invest Malaysia 2014 conference in Kuala Lumpur, which targets a global investment market that displays the diversity of Malaysia’s capital market.

In a move to further build on this area, foreign firms will now be allowed to wholly own unit-trust management companies in Malaysia, which will give foreign

fund managers broader access to the nation’s retail investors. Additionally, international credit rating agencies with full foreign ownership will be allowed to operate in Malaysia from January 2017 onwards.

But global expansion does not come without its challenges. The volatility of the ringgit is an evident concern, and has fallen about 4.8 percent in the past 12 months. The currency will probably remain volatile in 2014 due to capital flows. So as a way to remedy this problem, it is seen as a benefit if Malaysian companies take advantage of the rising value of Yuan, as the Chinese currency is set to gain momentum in the future, especially with regards to international trade. Malaysia is also on track to becoming a global education hub, with many students having chosen to do their higher studies in the country. It is an attractive destination for many international students who want a widely recognised degree from Universities based in Australia and United Kingdom that have set up campuses across Malaysia.

The education minister has accordingly expressed the ministry’s willingness to adapt plans and policies to cope with changing demands in education around the world. This is a move that seeks to lift Malaysia’s rankings in global benchmarks on education standards. In support of this, the national education advisory council is expected to help ensure the successful implementation of the Malaysian Education Blueprint 2013-2025 and the National Higher Education Strategic Plan.

By taking the right steps forward, Malaysia can globally connect with other countries in order to mutually benefit in this global economy. This helps markets connect and keeps Malaysia on track in its aim for global prowess in terms of trade, investment, finance, education, franchising, human capital and other key areas. And by establishing instrumental growth in these areas, Malaysia can exercise more control with stronger connections on a more global scale.

Features

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Features

Malaysia has made consistent progress in the development of its information and communications technology (ICT), which is the integral part of transforming the country into a cohesive, smart digital economy. The digital economy generated 34.55 billion Rinngit in revenue last year, and with steady progress in this sector, Malaysia is well on track to acquiring world-class, developed digital infrastructure.

Laying the Groundwork to Boost Digital Infrastructure

A digital economy cultivates an environment that enables people to interact effectively and in real time, with the use of digital services and online technology. This type of economy establishes a global platform for people, organisations and businesses to communicate, collaborate and share information for mutual benefits.

With strengthened governmental support and various organisations dedicated to the development of the ICT sector, the revenue from Malaysia’s digital economy is expected to contribute 17 percent to Gross Domestic Product (GDP) by 2020. This is why it is such a significant part of Malaysia’s development and transformation plans.

The ICT sector is largely overseen by the Multimedia Development Corporation (MDeC), which advises the Malaysian Government on legislation and policies, and develops industry specific practices, while setting benchmarks for multimedia and digital operations. These efforts are further reinforced

through MSC Malaysia’s backing, which is the country’s national ICT initiative that aims to transform the nation to a K-Economy (Knowledge Economy).

Both MDeC and MSC Malaysia run concurrently to spur Malaysia’s ICT industry development and digital economic growth. The move in this direction ultimately led to the inception of the Digital Malaysia National Programme, which kicked off in May of 2012.

Digital Malaysia was drawn up to develop a plan and set objectives for the ultimate Digital Economy. Although largely driven by MDeC’s leadership, the Digital Malaysia initiative has multiple supporting parties and beneficiaries, under the stewardship of the Minister of Communications and Multimedia.

Digital Malaysia is regarded as the national digital economy initiative, which highlights key initiatives that work towards achieving a digital economy by 2020. These initiatives are based on three strategic thrusts,

which strive for the efficient use of ICT in all related economic sectors. These three strategic drives are to move from supply to demand, from consumption to production, and from low-knowledge to high-knowledge added activities.

The first phase of the Digital Malaysia initiative is to be fulfilled by 2020, following which phase two and three is set to take place between 2021 to 2030, and 2031 to 2040 respectively. The scope of these plans is based on three blocks of initiatives, which gives a clear direction in terms of execution.

Block 1 targets existing ICT initiatives such as those by MSC Malaysia and all ICT-related initiatives. Whereas, block 2 focuses on enhancing the existing transformative initiatives in the Economic Transformation Programme and the Government Transformation Programme.

Lastly, block 3 gives attention to the

liberalisation of digital technology and the utilisation of this technology as much as possible and by as many people as possible, with the spread of ICT usage and innovative business models across the economy.

Although, for the country to move forward with these initiatives, an essential bump to overcome is the bridging of the Digital Divide, which sees a divide between rural and urban communities in terms of access to digital and technological benefits. Bridging this divide will help to lessen the gap between the have and have-nots.

In the bid to move to a more digitally advanced economy, Malaysia must also embrace “big data” to speed up the country’s growth. It is said that data is the fuel that powers a digital economy. This is evident from the penetration rate of smartphones in Malaysia, which is now above the 50 percent mark.

With the foundation of the Digital Malaysia initiative

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Business Advocate

in place, the Digital Malaysia 354 Roadmap was drawn up to play an institutional role in driving the development plans. The numbers 354 in this roadmap represent the three ICT focus areas, the five sub-sectors and the four Digital Malaysia communities.

The ICT focus areas are access, adoption and use. While the five sub-sectors are ICT services, ICT manufacturing, ICT trade, e-commerce, and content and media. Lastly,

the communities that are targeted in this plan include entrepreneurs, the bottom 40 percent of the income pyramid, the youth, and small and medium enterprises (SMEs).

A total of eight projects have been launched since 2012 in relevance to these focus areas and were targeted towards these four communities. The projects also aim to increase Gross National Income (GNI) contribution, job creation

and investments by 2020. With steady progress already being made for the projects, noteworthy successes have been achieved in two projects. The first was in the growth of embedded systems industry, and the second was in the development of a trusted mobile digital wallet system.

By continuing on this promising path, Malaysia hopes to achieve three main end results, which are increased GNI,

enhanced productivity in economic sectors and improved standard of living. Reaching these end targets will enable Malaysia to become a thriving digital economy, with digital services and technological advancements that benefit all. This will serve as a global platform that connects people and allows the sharing and exchange of information, and communication in real time.

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Features

Malaysia has already welcomed 7.09 million tourists in the first quarter of 2014, marking an increase of 10 percent from the 6.45 million tourists that visited during the same period last year. This signifies that the Malaysia Tourism industry is on the right track to achieving a successful campaign by the year’s end.

The Outcome of the 2014 Tourism Industry Campaign

their shopping needs met at the 1Malaysia Mega Sales Carnival, the 5th Malaysia International Shoe Festival, and the 1Malaysia GP Sale. As for bargain hunters, the flea markets and night markets were the place to be, for a quick buy or even a leisurely stroll that lets you take in the experience of the bustling markets.

A great number of tourists also flocked to Malaysia to take in the serenity of the country’s islands, while indulging in the many beautiful diving spots in Sipadan, Mabul, Langkawi, Layang-Layang, and many others. That and the many water sports and unique facilities that many of the islands offer, make it a year-round tourist attraction. Drawing on this, Tourism Malaysia introduced six scuba diving packages in Sarawak, so as to position it as an upcoming diving destination.

To showcase Malaysia’s rich heritage and culture, the Sarawak Regatta offers an exciting look into a long held tradition. It is a popular event in Kuching, featuring a race between traditional longboats. As for those who seek out a more adventurous trail, Malaysia is abundant in jungle trekking activities at Taman Negara, Kinabalu National Park

More than half of the year has already passed, and 2014 has certainly been an eventful year in relation to the tourism industry in Malaysia. It has delivered positively on its campaign thus far, with Malaysia having brought in plenty of tourists who all came to experience some of the unique events, festivals and activities that the 2014 campaign has lined up and promoted. The campaign initiative targets a new record of 28 million international tourist arrivals and an amount

of 76 billion Ringgit in tourist receipts.

July ushered in the second half of the Visit Malaysia 2014 campaign, which echoes the theme ‘Celebrating 1Malaysia Truly Asia”. This of course stems from the underlying slogan in all of Malaysia’s tourism campaigns, “Malaysia Truly Asia”. The 2014 theme embraces the unity of the country that celebrates the fact that it is so ethnically and culturally diverse.

It is the hope that the tourists who visit Malaysia this year will get to experience all the diverse cultures and values of Malaysia, and join the country in celebrating its unity among such a mix of different heritages, traditions and ethnicities.

Malaysia has always been a haven for shoppers, and 2014 was no different. Whether the need is for quality, luxury items or just a really good bargain, tourists had

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Business Advocate

expose students from abroad to life in Malaysia.

For visitors who want a more flexible arrangement to really experience Malaysia in its entirety, the Malaysia My Second Home Programme enables visitors to obtain a multiple-entry social visit pass. It is valid for a period of ten years, after which, it is also renewable.

Malaysia is a buzzing destination, welcoming all kinds of tourists, all year round. As is clear from the Visit Malaysia 2014 campaign, each month gives visitors a widespread number of activities, places and events to enjoy and experience. Therefore, no matter which month tourists choose to visit, they can be assured that they will always be “Celebrating 1Malaysia Truly Asia” for the year 2014.

and Forest Research Institute Malaysia, just to name a few.

What's more, a visit to Malaysia is never complete without tasting some street food, where you can sample some of the local favourites, such as Assam Laksa, Rojak, Roti Canai, Satay and a flurry of other cuisines. Malaysians are known for their spicy food, but there are also various less spicy options like

Chendul, Apom Balik and Ice Kacang, among others.

While on the topic of food, this year boasts an event that foodies will definitely flock to, if they plan on visiting Malaysia between October and December, because that is when the Fabulous Food 1Malaysia event will bring together all the tastes and culinary cuisines that the various states of Malaysia have to show. Though known a lot for

its food, Malaysia also is worth visiting for its adventurous activities and sporting events. As far as participating in sporting events go, the Port Dickson International Triathlon and Asia Pacific Ironman Langkawi Malaysia caters to the sports enthusiasts. And for those who choose to be a spectator instead, the Malaysian Open is worth attending, especially for tennis fans.

It is known that a lot of tourists visit Malaysia for leisure, but the importance of educational experiences is not forgotten even in terms of tourism. Tourism Malaysia, in collaboration with the Nara National Soni Youth Outdoor Learning Centre has also been welcoming students to Malaysia through the Japan Malaysia Kouryu Project. Student exchange programs like these

Malaysia joined the Trans-Pacific Partnership Agreement (TPPA) negotiations on 5 October 2010, during the third round in Brunei Darussalam. The TPPA is a free trade agreement (FTA) initiative, which was first established in 2005, as a move to enhance trade and investment relations between the participating TPPA countries within the Asia Pacific region.

Importance & Impact of the Trans-Pacific Partnership Agreement

Features

For Malaysia, the TPPA would also bring a more liberalised trading environment, the expansion of trade volume, deeper integration within the Asia Pacific region, and the engagement of the United States (US) as an important trading partner and source of investment.

Underlying advantages from this agreement includes the creation of jobs and businesses, the advancement of economic cooperation and investment liberalisation in the Asia-Pacific region. These gains would bode well for the country, and also drive Malaysia’s transformation from a labour-intensive alignment, to one that is driven by high-skilled labour.

Furthermore, participation in the TPPA can shape global trade agenda and draft future trade rules, and facilitate economic transformation programmes. It would also open up the trade market and improve market efficiency, which would lead to higher exports due to the increased market access of goods.

Welcoming the TPPA would allow Malaysia to potentially tap into a tariff-free market of 800 million people with a combined GDP of 28 trillion US Dollars (88.2 trillion Ringgit). Prominent economic studies have also stated that Malaysia stands to gain over US$41.7 billion (133.9 billion Ringgit) increase in exports and

26.3 billion US Dollars in income gains by 2025, if it accepts the TPPA.

Malaysian producers and service providers can thereby gain access to all TPPA member countries. This will enable higher foreign investment and position the nation as a top investment destination for foreign investors. A duty free market would translate into cost savings for local businesses that are exporting to other TPPA countries as well.

The TPPA would also bring market access opportunities, increased investments and improved capacity. And with duty free access to the TPP market, there will be net benefits for local manufacturers, exporters and community producers, which include small holders. Moreover, the elimination of import duties by TPP countries on Malaysian exports would result in savings of import duties of about USD 1.2 billion upon entry.

Malaysia’s participation would also integrate the country’s SMEs into the global supply chain, and they would be able to write rules for the future,

and compete with other trade initiatives like the Transatlantic Partnership and Pacific Alliance in Latin America. Malaysian SMEs would also enjoy preferential trading that offers lower tariffs and higher transparency.

Despite these advantages, there will always be challenges and fluctuations from freeing trade and economy, and it is pivotal to consider how TPPA may impact the country, and thus government negotiators are mitigating the possibilities through various flexibilities such as carve-outs, longer transition period and exclusions.

But even with the worries that Malaysia has expressed regarding signing the TPPA, the overall gains can offset these concerns. The current challenging talking points for Malaysia during TPPA negotiations include intellectual property, state-owned enterprises, investment, environment, labour, government procurement, and tobacco.

Although these concerns persist, the representative

authorities and ministers have ensured the public that the country’s best interests will be protected in these areas, as can already be seen from Malaysia's push to exclude the mention of tobacco in the agreement. Government officials have also reiterated that Malaysia will not sign the TPP if it does not show definite benefits for the country.

Rejecting the TPPA would make Malaysia a comparatively less attractive investment destination, which may coax existing investors to expand abroad. There will also be a loss of trade and investment opportunities in TPP markets, and missed opportunities to craft future trading rules.

With TPPA negotiations still ongoing and a bulk of the details shrouded in secrecy, it is hard to determine Malaysia’s current standing in the discussions to date. But this kind of agreement would be exactly what Malaysia needs to capture rewarding business opportunities and thus strengthen its roots in international trade and investment relations.

The ultimate objective of the TPPA negotiations is to develop an agreement that will best suit all participating countries’ current issues, concerns and interests. Malaysia does have FTAs with many of the participating Asia-Pacific countries, but the TPPA allows for deeper trade and investment ties between these nations. Currently, the twelve countries involved in the negotiations are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam.

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As one of Asia's fastest growing economies, Malaysia already boasts a reputable list of international companies that have grown their Asia operations on the back of the country's investor-friendly policies, including attractive incentives, highly skilled and multilingual workforce and excellent infrastructure. Malaysia's capital, Kuala Lumpur, is the country's center of economic growth and home to an array of multinational companies, most of which, are already active members of the MICCI.

Why Not Set Up Your Regional Office in Kuala Lumpur?The codfish lays 10,000 eggs, the homely hen lays one; the codfish never cackles to tell you what she's done. And so we scorn the codfish while the humble hen we prize, which only goes to show you that it pays to advertise.

It may well be that a little advertising would be in order regarding the advantages of Kuala Lumpur as a location for a Regional Office.

However, before spending time on such an initiative, it is important to realise that the Malaysian government has over the years carried out quite a lot of advertising on this subject. When one questions the rationale of the government's policy in this respect, perhaps it is desirable first to find out what is meant by the term “Regional Office”. The beast comes in many shapes and sizes. At one end of the scale we may be thinking in terms of a substantial administrative set-up with the responsibility of managing and financing a number of operations in Malaysia and surrounding countries. However down the scale, the responsibilities may be restricted to the regional marketing and sales of the Group's products or services. Or perhaps the Regional Office may be responsible for the provision of technical assistance to the Group's companies in the area, or for providing research and development services. Or the office may be solely responsible for looking for and evaluating investment opportunities in Malaysia and the region. In short, a Regional Office may employ a thousand people or one; the important thing to remember is that the office that employs one today may well be employing a thousand in years to come.

Reverting to government policy; the policy of encouraging the institution of Regional Offices in Kuala Lumpur is not a difficult one. Even the most out and out nationalist cannot dispute the fact that the presence of a Regional Office in Malaysia results in more jobs for Malaysians. The Malaysian government has in fact probably focused on six areas where Malaysia can benefit from the establishment of Regional Offices in Kuala Lumpur. These can be summarised as follows:

• the creation of job opportunities that would otherwise not exist;

• the existence of Regional Offices puts Malaysia on the business map and promotes Malaysia as a financial centre by providing international credibility;

• the activities of Regional Offices generate revenue;• the activities of Regional Offices attract investment and

contribute to economic development;• the presence of Regional Offices encourages the

development of local support and service industries;• the operation of Regional Offices results in the transfer

of management skills and the increase of business sophistication and information technology generally

in the area.

It is hard to agree in entirety with Georges Pompidou when he said “There are three roads to ruin: women, gambling and technology. The most pleasant is women, the quickest is gambling, but the surest is technology.” Regardless of Georges Pompidou, Malaysian government policy is clear and the reasons for the policy are equally obvious.

What then are the advantages to the international investor is setting up a Regional Office in Kuala Lumpur.

To obtain some up-to-date thinking on the matter, views were sought from a number of MICCI members. Many of these members are subsidiaries of multinational organisations, and have Regional Offices in Kuala Lumpur. Numerous reasons for being in Kuala Lumpur were given, but 8 seemed to crop up more than others. These are as follows:

• the quality of life and the cost of living in Malaysia is generally acceptable to a foreigner and it is a characteristic of the Malaysian people to welcome foreigners;

• there is wide use of the English Language;• the country's infrastructure and the working environment,

including supporting services, make Kuala Lumpur a good place to set up a Regional centre;

• communications both in respect of air travel and telecommunications are reliable and expanding;

• Malaysia is more conveniently located centrally within Asean and East Asia, and provides easy access to Australia and New Zealand;

• foreign exchange regulations are liberal; • office costs are reasonable;• there is a general availability of educated office staff.

There in summary are the eight good reasons for locating a Regional Office in Kuala Lumpur, but of course the most important factor is and will always be government popularity. In this respect there is unambiguous support from the government for international organisations to set up their Regional Offices in the country.

So much therefore for a little advertising. Someone said “You can fool all of the people all of the time, if the advertising is right and the budget is big enough” A substantial budget should not be necessary to convince clear thinking multinationals of the advantages of setting up a regional Office in Kuala Lumpur.

Business Advocate

8 Good Reasons For Locating A Regional Office In Kuala Lumpur

The following article is an extract from a series of MICCI articles published almost 30 years ago about foreign investment's contribution to the Malaysian economy.

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So, it comes down to money. How much is required to do this. It is best to use only the amount you can afford and no more. Determine who your prospective buyer or renter is and aim your goal toward pleasing them. Next, wisely allocate your budget to achieve the maximum impact. Install features and fittings that the other units don’t and wrap it all up in a simple, neutral design palette that appeals to the greatest

number of prospective renters or buyers.So, does this mean spending a lot on elaborate plaster ceilings with recessed LED strip lighting; incredibly decorative feature walls with built-in entertainment facilities; expensive kitchen cabinetry with European soft-close accessories. No, it doesn’t. It means

This featured property by Blaine Robert Design Sdn. Bhd. is an excellent example of smart strategies. Working with the client to fully understand objectives for the property and executing renovation solutions to achieve that objective.

FeaturesBusiness Advocate

Interior Design: Smart Strategies To Maximize Your Profit

FACT: It is a Renter/Buying Market in Kuala Lumpur right now and for the foreseeable future. In a Renter/Buyer market, your property MUST stand out among the many as the wisest investment choice. With an enormous number of units available in 1 luxury condominium alone, what gives your property the advantage to generate profit while leaving your competitors behind scrambling to pay monthly mortgage payments with no new buyer or renter in sight. In this property climate, SMART STRATEGIES for property investment must be considered. It is no longer a no-brainer for making money.

In the past, Interior Design was a luxury left only to the rich. Now, for a property investor it is essential. So, the question is, “How much money to spend?” Actually, the real question is, what do you have to do to entice a prospective renter or buyer to choose your property over the others and then wisely allocate your renovation budget to accommodate these needs.

something as simple as HOT WATER in the kitchen, ample storage space in the bathrooms, separate washer and wall mounted dryer, an area equipped with home office fittings and a ceiling mounted aircon in the living dining. These are features often overlooked by owners yet coveted by renters and buyers. All this wrapped up in a simple designer touch renovation.There is no particular rule of thumb regarding how much to spend except to say that you must be able to see a decent return on your investment that

covers all the sales and purchase costs as well as the renovation costs in the event you want to sell the property in 1 year. Design (Look & Feel) cost money and using the square footage method is a good way to gauge what you can get for your dollar. There are numerous suppliers and contractors charging fees that run from unbelievably cheap to outrageously expensive. Remember. You get what you pay for and if the supplier’s rates seem too good to be true, they are and you will suffer quality and attention to detail problems. You don’t want

to replace or repair things in only a years’ time. All must be of good quality, durable and lasting in terms of design and feel. Achieving this costs money.

Let’s take a look at what you get for your dollar. A 1000sqft empty shell condo. 3 bedrooms/2 bathrooms, living, dining, kitchen (Wet & Dry).

RM 50.00/sqftKitchen (wet and dry), Flat Plaster Ceiling throughout, Wardrobes in all bedrooms

RM 75.00/sqftKitchen (wet and dry), Mood Plaster Ceiling throughout, Wardrobes in all bedrooms, Built in TV cabinet, Feature wall panelling, Built in occasional furnishings, Pendant lighting.

RM 120.00/sqft Kitchen (wet and dry), Mood Plaster Ceiling throughout, Wardrobes in all bedrooms, Built in TV cabinet, Feature wall panelling, Built in occasional furnishings, Pendant lighting, Feature paint colouring, Core Furniture and accessories.

RM120 sqft bedroom

RM120 sqft living room

RM75 sqft living room

RM50 sqft living room

by Blaine Robert

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Intellectual Property: Worldwide Protection

Intellectual Property (IP) is no longer an unfamiliar term, especially since it has become increasingly more important in the last decade or so. In the past, owners did not consider IP protection to be very important as they preferred to assess the market first before seeking IP protection.

Evidently, owners are correct in deciding when to protect their IP rights but either action will cause different consequences.

Perhaps one might be aware that in business dealings and/or advertisement activities, the relevant government agencies might impose requirements on obtaining registration in IP beforehand. Likewise, goods exportation bearing your own labels will only invite problems such as infringement if your labels have been registered by someone else. Now let’s look at the basic IP registration, be it Trade Mark, Patent or Industrial Design. Each registration is territorial in nature. Is there such a thing as worldwide registration? A simple answer will be NO, but if we look further into this, there are other alternatives which may look like worldwide protection yet it is still in line with the basic requirements of being territorial in nature.

Madrid System ForInternationalRegistrations Of Trade Marks

Registration through the Madrid System does not create a “worldwide registration”. However, it helps the registration to be administered centrally. The choice of having a single registration to cover a wide range of countries offers advantages such as being cost saving and easy on the management on IP since it is not an individual regional registration.

At present, Malaysia is still not a member state of the Madrid System but our country has the intention to join Madrid by year 2015. Should the intention materialize then Malaysia’s inclusion will further extend the member states to 92 as the total number now is 91.

Advantages of the Madrid System

The Madrid System will allow the trade mark owner who already has

an existing application or registration in the home country in a member state to extend their international registration among the rest of the member states. This will definitely ease the trade mark owner from appointing a foreign agent for each designated country when they have the intention to file overseas.

Disadvantages of the Madrid System

The Madrid System also comes with disadvantages. The one prominent disadvantage is the international registration relies entirely on the home application or registration. In the event that the home application has been refused, withdrawn or cancelled, the international registration will follow the same.

The same goes to amendments in the home application. Any amendment in the home application or registration will cause the

international registration to have the same effect.

It is safe to say that the above only applies to applications and should any owners be interested in the Madrid System, it is advisable to register the home application beforehand. This will at least lessen your concern on the outcome of the home application which will affect your international registrations.

Since Malaysia is not a part of the Madrid System, the alternative solution is available for interested owners. In the event owners have a foreign company in any of the member states, they may rely on their foreign company to file the international registrations within the member states.

FileToFilevsFirst To Use

Once the owner has decided to use the Madrid System to file, the owner needs to find out whether

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the interested countries practise ‘First to file’ or ‘First to use’ protection.

First to use simply means the first entity to make a valid use in commerce of the particular mark is the one that has the rights. This is because under the common law, as opposed to the statutory law, the first to use is the one that gets the rights to use it, even if they do not pursue a trademark registration. A few countries that use first to use are Malaysia, United States, United Kingdom, Australia, Singapore, Canada, Hong Kong, etc.

by Alex Neoh

Intellect Group of IP CompaniesIntellect Group provides intellectual property consulting in areas such as trademark, copyright, patent, industrial design, franchising and licensing.

Author:Alex Neoh, Trademark DirectorIntellect Group of IP Companies

Now, if we look at the first to file, which is in contrast to the first to use rule, the first to file is a rule followed by many countries outside of Malaysia. What this means is that it is absolutely required that you file for trademark protection in order to have rights in those countries. A few countries that use the first to file are China, Indonesia, Korea, Japan, Taiwan, Thailand, France, Germany, Spain, Vietnam, India, etc.

Although certain countries may have certain rules on trade mark registrations, this

does not mean the owner will not have IP rights if he did not file it because there are other protections available in the scope of IP and the same applies to the first to use.

Contrary to the title prescribed above, unfortunately, there is no ‘worldwide protection’ for IP. At the end, it is the concept of territorial in nature. Therefore, if the owner plans on using the Madrid System to trade mark its mark then it is best to know the IPLaw in those respective countries beforehand.

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CEO Profile

In Conversation With Datuk Dr Rebecca Fatima Sta. Maria

PROVIDING THE RIGHT STAGE

FOR OUTSOURCING SERVICE PROVIDERS

AND SEEKERS(And we got lots of room for

the observers too)

CONTACT US: Address: Unit 617, Block D, Kelana Square,

17 Jalan SS7/26, Kelana Jaya, 47301 Petaling Jaya, Selangor, Malaysia

Phone: +603-7880 4200, 7886 4993 Fax: +603-7803 0500

Email: [email protected]: www.the-outsourcing.com

1 Having served at MITI since 1981 indifferentpivotal

roles,whatareyourthoughts on how internationaltraderelationsandMalaysia’sapproach have changed through those years?

Trade has definitely become more complex. When I joined the ministry in 1981, it was called the Ministry of Trade and Industry. Then International Trade was just a Division of the Ministry. Similarly, Domestic Trade and Tourism were also just Divisions under the Ministry. Today, we are three separate Ministries.

Today the MITI family comprises MATRADE (the Malaysia External Trade Development Corporation), MIDA ( the Malaysian Investment Development Authority), SME Corp, the Malaysia Productivity Corporation, the Malaysia Automotive Institute (MAI), the Malaysia Steel Institute (MSI) as well as two development financial institutions, MIDF and SME Bank.

Then ASEAN was just beginning its journey of economic integration. Today, ASEAN is well on its way towards becoming a economic community. At that time there was neither

APEC nor the WTO. And for sure we were not involved in any Free trade agreements.

International trade has evolved and more complex today, whether at the bilateral, regional and multilateral levels. The breadth and the depth of trade relationships at all three levels have increased. For me, it has and continues to be truly exciting, I have seen and am living, perhaps even shaping the change.

2 In an increasinglycompetitive

globalmarket,whatin your opinion is the mostcriticalactionthatmustbetakenforMalaysiatostayontherighttrack,whenit comes to promoting internationaltradeandinvestment? In this increasingly competitive environment, key value proposition for Malaysia lies in its business-friendly stance

All things being equal, it is about how easy you make it for people to do business in this country, and how friendly you are in terms of rules, regulations, processes and procedures. These must be coupled with

quality workforce, and high level of governance. So our focus must be on at least three core areas: trade facilitation, and infrastructure both soft (i.e., education and human capital development), and hard (including roads, rail and air connectivity).

3 How important are Free Trade Agreements (FTA)s

incontributingtowardsMalaysia’seconomicgrowth?

As an open economy, the multilateral trading system continues to be our priority. However, because of the very complex nature of getting 160 countries to come to consensus on matters related to trade and investment, countries began to engage in FTAs for quick, preferential market access.

When you look at it that way, you cannot afford to be at a disadvantage. And so, to gain the edge and not lose market share, we too had to explore FTAs, both bilateral and regional. In the 80s, we started with a preferential trading arrangement among ASEAN member states. In 1993 we established the ASEAN FTA (AFTA) which came into full implementation in 2010.

Our approach to market liberalization has always been that of phased implementation to allow businesses the space and time to adjust to the competition. We have to work with our SMEs to ensure that they benefit from the FTAs and other initiatives, that they take advantage

Rebecca Fatima Sta. Maria is the Secretary-General of the Ministry of International Trade and Industry (MITI). Prior to this appointment, she was the Deputy Secretary-General (Trade) of MITI, providing oversight for the formulation and implementation of Malaysia’s international trade policies and positions.

42 43

Business Advocate

CTBC Holding Co., Ltd.

CTBC Financial Holding Co., Ltd. (hereinafter CTBC Holding) was established on May 17, 2002. What started out as a modest company with just 19 employees, grew into a powerhouse with locations around the world, over 10,000 employees, and assets in excess of USD 70 billion. CTBC Holding’s nine subsidiaries include CTBC Bank, CTBC Securities, CTBC Insurance Brokers, CTBC Venture Capital, CTBC Asset Management, CTBC Security, Taiwan Lottery, CTBC Life Insurance, and CTBC Investments.

The key to CTBC Holding’s success has been our enduring adherence to the founder Dr. Jeffrey L. S. Koo’s ideal: “We are family.” By treating customers like family, we can anticipate our customers’ requests, even before they voice their needs. Through our extensive and diverse financial products, we can provide customers with ever more convenient services.

In order to provide customers with globalized and more convenient financial services, CTBC Holding and CTBC Life, a subsidiary of CTBC Holding, announced the acquisition of Manulife Taiwan at the end of July 2013 and completing the deal later on January 1, 2014, a strategic move which allows CTBC Life to offer customers a greatly expanded range of high quality services.

The acquisition of The Tokyo Star Bank, Ltd. by CTBC Holding’s subsidiary, CTBC Bank, was approved on December 20, 2013 during CTBC Holding’s extraordinary shareholder meeting. The transfer of 100% shares was completed on June 5, 2014. CTBC Bank is officially the sole shareholder of The Tokyo Star Bank, Ltd.

Faced with the challenges of financial liberalization and an increasingly globalized marketplace, CTBC Bank took the initiative to increase service locations both in Taiwan and abroad. In 2014, we have a total of 147 branches within Taiwan and 100 outlets (representative offices, branches, and subsidiaries and their branches) overseas. Our many locations in the US, Canada, Japan, India, Indonesia, the Philippines, Thailand, Vietnam, Hong Kong, Singapore, and China make CTBC Bank Taiwan’s most international financial institution.

Looking ahead, CTBC Holding will continue to stand by its brand spirit “We are family,” while we work to protect and build our clients’ wealth. We will also uphold our brand value by being “Caring, Professional, and Trustworthy”, while providing our customers with a comprehensive variety of convenient financial services. CTBC Holding is set to become a “Taiwan Champion, Asia Leader, and the best financial institute for Chinese around the world”

of the opportunities by integrating into the Global Value and Supply chains of the larger companies.

Malaysia has seven bilateral FTAs and six FTAs through ASEAN. These FTAs, not only enable us to get preferential market access for goods and services, it has also enabled our companies to achieve scale (we have a relatively small domestic market) and adjust their business plans to take advantage of the cost competitiveness of other ASEAN member states.

4 Inyouropinion,are there any potentialglobal

orlocaleconomicchallengesthatmayundermineMalaysia’sstrong trade position in the near future? How do youperceiveMalaysia’seconomic environment beyond2020?

While one cannot predict the future, one must ensure that the fundamentals are in place to help mitigate the challenges. The fundamentals must include sound fiscal and monetary policies, human capital development, quality infrastructure, and rule of law and governance.

With an economy as open as ours, we will be affected by the global

developments. Even as we continue to explore market access for our goods and services, we must be fully engaged in fora where multilateral trading rules are being written. This could be at the WTO, or through FTAs such as the TPPA.

5 Whatrole,ifany,doyouseeforregionaleconomic

groupings such as the Confederation of Asia-PacificChambersofCommerce and Industry (CACCI)infacilitatingregionalandglobaltrade?

Organisations like CACCI provide us yet another

opportunity to share our story and showcase the progress we have achieved.

CACCI provides a platform to disseminate knowledge, share perspectives for improving the business environment. It also enables participants to interact not only with members of the Chambers of Commerce and trade associations, but also with government. This is a good opportunity to highlight recommendations for deepening economic integration and areas of collaboration.

6 The 28th CACCI conference in KualaLumpur

willbringtogetherbothforeignandlocaldelegatesfromover26nations. Do you have a message for these delegatestotakebackto their respective businesscommunities?

I want those who attend this conference to see that Malaysia is open for business and that we are business-friendly. We want them to leave the conference with the impression that Kuala Lumpur is good for business and that there are institutions such as MITI and its agencies, namely, MIDA, MATRADE, SME Corp, are ready and able to engage and facilitate business.

We are very pleased that CACCI has chosen to have its 28th conference in bringing Kuala Lumpur.

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45

CEO Profile

consumption and investment. What are your views on this statement?

Economic growth is defined as increases in output. This is translated into consumption, investment and exports. Private consumption grows at the rate of 4 to 6% on a long term basis. More importantly, the sources of the long term economic growth will be private and public investment as well as exports. Hence it is important that we continue to promote exports by making our exports more competitive and of better quality.

5 What has recent economic researchrevealed

as the most important policiesthatneedtobeexercisedforthepositivedevelopmentofMalaysia?

I would think that researches in the area of labour-related issues, such as wages, productivity and availability of skills, are important and need to be undertaken seriously in these few years. We

role in transforming the output structure of the economy. This is facilitated by changes in government policy which promote private investment, privatisation and liberalisation. We have increasingly seen reduction in governmental direct involvement in industries and the emergence of regulatory bodies to undertake promotion and market surveillance of private sector operators in the economy. These changes may not appear to be individual breakthrough, but the result of planned change in managing the economy.

3 In your opinion,whatis the impact of

Malaysia’scurrentGSTimplementations?

Malaysia is yet to implement its goods and services tax (GST). Hopefully it does this in 2015. GST is good tax and it will help the government to improve its revenue base, and reduce its deficit.

4 Consumption-driven growth foraprolonged

period is not sustainable,andMalaysia’sGDPgrowslargelyduetoprivate

MICCI Chats With Tan Sri Dr. Sulaiman Mahbob

1 As the Chairman of the MalaysianInstitute

of Economic Research (MIER),whatdirectionwouldyouliketoseeMalaysiaheadedin terms of its economic status?

In the medium term, Malaysia needs to develop into a high-income country with low unemployment and stable price level. However in the long run, Malaysia has to address its economic and social imbalances in order to achieve a united and cohesive society. This is in line with our national philosophy, namely Rukunegara.

2 What has beenthemostsignificant

economic breakthroughsincethebeginningofyourtime at MIER? And whatbreakthroughscanyouseebeingmadein the recent future?

From my observation, Malaysia has managed to evolve from a commodity-driven economy into a modern economy with services becoming important. In the course of economic growth, the private sector has played a significant

cannot rely on foreign labour to maintain our competitiveness because it is essential that Malaysia competes on the basis of productivity and innovation. Given our shortage of labour, wages have to rise to reflect the actual demand and supply situation in the country. Thus Malaysia has to balance between maintaining competitiveness and paying the right price to labour and skills, in order to promote productivity and creativity.

6 How does financialinstabilityin

othercountriesaffecttrade and investment inMalaysia?

Financial instability in other countries can affect us. In short term there will be changes in exchange rates and interest rates which can cause volatility in financial and money markets. This may effect our economy, for instance large inflows of short term capital can appreciate our currency thereby making our exports expensive and imports cheap.

Chairman of Malaysian Institute of Economic Research

Tan Sri Dr Sulaiman is the present Chairman of Malaysian Institute of Economic Research (MIER) and of Jambatan Kedua Sdn Bhd. Tan Sri is trained widely in economics and completed his undergraduate degree at the University of Malaya (1971), Master of Science from University of London (1977), and PhD at Syracuse University, New York (1986).

SME Corp. Malaysia is a Central Coordinating Agency that formulates overall policies and strategies for SMEs and coordinates the implementation of SME development programmes across all related Ministries and Agencies. It acts as the central point of reference for research and data dissemination on SMEs, as well as, provides advisory services for SMEs in Malaysia. SME Corp. Malaysia also assumes the role of the Secretariat to the National SME Development Council (NSDC), which is chaired by YAB Prime Minister of Malaysia.

The genesis of SME Corp. Malaysia dates back to 2 May 1996, when a specialised agency was established under the Ministry of International Trade and Industry (MITI) to spur the development of Small and Medium Enterprises (SMEs) by providing infrastructure facilities, financial assistance, advisory services, market access and other support programmes. Known as the Small and Medium Industries Development Corporation (SMIDEC), its aim was to develop capable and resilient Malaysian SMEs to be competitive in the global market.

The establishment of the National SME Development Council (NSDC) in 2004 was a beginning of another chapter in SME development in Malaysia. As the highest policy-making body, its role was to formulate strategies for SME development across all economic sectors; coordinate the tasks of related Ministries and Agencies; encourage partnership with the private sector; and ensure effective implementation of the overall SME Development Programmes in this country. Initiatives under the NSDC include enhanced access to financing; financial restructuring; advisory services, information, training and marketing coordination; and a comprehensive SME database to monitor the progress of SMEs across all economic sectors.

In 2007, the NSDC decided to appoint a single dedicated agency to formulate overall policies and strategies for SMEs and to coordinate programmes across all related Ministries and Agencies. SMIDEC was tasked to assume the role and the official transformation into Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia) commenced on 2 October 2009. SME Corp. Malaysia is now the central point of reference for information and advisory services for all SMEs in Malaysia.

OUR KEY FUNCTIONS

1 Coordination of Policies and Programmes• Formulate broad SME policies across all sectors.• Coordinate, monitor and evaluate effective

implementation of policies and programmes across relevant Ministries and Agencies.

2 Centre on Advisory and Information• Provide business advisory through the “One Referral

Centre (ORC)”.• Disseminate information on Government funds and

incentives on SMEs.• Channel for feedback on SME issues.• Liaison for domestic and international communities on

SME matters.

3 Management of Data, Dissemination of Information and Research on SMEs• Manage National SME Database.• Undertake research on SMEs.• Publish SME-related reports and statistics.• Undertake outreach programmes.

4 Business Support• Nurture and develop competitive SMEs through specific

capacity building programmes and financial assistance.• Enhance competitiveness of SMEs using the ‘SME

Competitiveness Rating for Enhancement’ (SCORE) diagnostic tool.

• Provide infrastructure support for SMEs.• Facilitate linkages with large companies and MNCs.

5 Secretariat to the National SME Development Council (NSDC)• Propose policies and ensure decisions of NSDC are

effectively implemented.• Provide administrative support for NSDC.

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Business Advocate CEO Profile

realisation and operations of key catalytic projects in 2012 such as LEGOLAND Malaysia, the Puteri Harbour Family Theme Park, and the success of EDUCITY – namely Newcastle University, University of Southampton Malaysia Campus and Raffles University Iskandar, as well as other educational institutions such as Marlborough College Malaysia and Raffles American School. In 2013, LEGOLAND Water Theme Park was completed and the second phase of Johor Premium Outlets was opened. In addition, Iskandar Malaysia also witnessed another vital recognition when it was identified as the first “smart metropolis” of Asia as announced by the Prime Minister of Malaysia. The smart city is founded on sustainable principles of low carbon, green economy, green

Iskandar Malaysia recorded total cumulative committed investment of RM146.20 billion from 2006 until 30th June 2014. Of the total cumulative committed investments, RM69.53 billion or 48% represents investments that have been realised as projects on the ground.

Of the total cumulative committed investments, 64% (RM94.16 billion) are domestic investments while 36%

(RM52.04 billion) came from foreign investors.

The corridor’s

performance illustrates the vast potential of the region. We witnessed the

MICCI Speaks With Prof. Datuk Ismail Ibrahim

1 What is the latestprogressofIskandarMalaysia

development?

Accelerated growth was witnessed in Iskandar Malaysia after the recent completion of key catalytic projects in 2012. This was evident in the amount of investments secured pursuant to this.

technologies and social integration. The region’s strong position in green and sustainable development was further amplified with the launch of the Iskandar Malaysia Low Carbon Society blueprint at the COP18 in Doha in November 2012.

2 What is Iskandar Malaysia“smart

metropolis”andisthis a new concept of developmentinthiscountry or region?

In line with its strategic pillars, Iskandar Malaysia’s definition of a Smart City is an integration of economy, environment and social aspects. It is a well performing city in 6 focus areas: economy, governance, environment, mobility, people and living quality. The city

is built on the ‘smart’ integration of investments of human and social capital, combining hard and soft infrastructure that fuel sustainable economic development, a high quality of life, wise management of natural resources, through participatory governance.

Smart City is not a new concept to the European countries and our neighbouring Singapore. The definition might vary from one city to another depending on the priorities required for respective country.

Not to confuse the public, this is the main reason that Iskandar Malaysia Smart City Framework was developed based on and in line with Iskandar Malaysia’s 3 main pillars of Economy, Environment and Social. The enhanced and added-value focuses are:

(i) How we attract economy in a SMART way -

Catalytic projects, complementing Singapore and meeting global requirements

(ii) How we get SMART and good buy-in from public in the things that we want to do and implement, and usage of new channels of communication for the citizens – such as public participations for feedback, utilise website to reach out to larger groups of people, encourage private sectors to work together with public sector in providing necessary infrastructure

(iii) How we can conserve the environment in a SMART way – entice the developers/investors to do their part in environment by giving incentives for green technology and infrastructure and introducing green economy and carbon credits.

(iv) How we should plan for SMART mobility and connectivity by focusing on public transport instead of building more roads and improve strategic ICT infrastructure to ease process of doing business and easier lifestyle without actual movement on the roads. The ICT improvements shall also provide new economic opportunity for people living in city as well as in rural areas.

(v) How we can produce SMART people and mind-set by taking the grass roots and younger generation, provide trainings and event to promote harmony living, and provide jobs opportunity and reach out programs

(vi) How we provide quality of living in a SMART way, by having and promoting

shared responsibility between police, business communities and locals to ensure safe and secure Iskandar Malaysia such as SafeCAM project, and Rakan Cop. There should also be diversity and choices in education and health for a better lifestyle and varied recreational facilities focusing on family oriented activities.

3 Sustainabilityis gaining momentum over

thelastfewyearsandits importance has flowedthroughoutallsectorsandindustriesinanefforttobeenvironmentallyfriendly.Whatgreeninitiatives is IRDA focusing on?

The Low Carbon Society Blueprint for Iskandar Malaysia (LCSBPIM) is a collaboration between Iskandar Regional Development Authority (IRDA) and University of Technology, Malaysia (UTM) and three Japanese institutions, namely Kyoto University, Okayama University and the National Institute for Environmental Studies. The Blueprint is one of the main outcomes of Science and Technology Research Partnership for Sustainable Development (SATREPS) on the Development of Low Carbon Society Scenarios for Asian Region, sponsored by Japan International Cooperation Agency (JICA) and Japan Science and Technology Agency (JST).

Chief Executive Officer Iskandar Regional Development Authority (IRDA)

MUAR-born Datuk Ismail Bin Ibrahim received his early education at the Malay College Kuala Kangsar and went on to study town planning at the Heriot-Watt University in Edinburgh, Scotland. He is currently the Chief Executive of Iskandar Regional Development Authority (IRDA).

Similarly rapid outflows of short term capital can lead to weakening of our currency thereby making exports cheap and exports expensive. The financial instability in 2009 had led to global recession impacting the real sector (exports) of many countries, including Malaysia.

7 Can you provide an overview on the situation of

costoflivingamongMalaysians?WillthecreationofnewjobshelpcopewiththecostoflivinginMalaysia?

As shown by the Consumer Price Index (CPI) price level has been rising over

3% recently. If GST is introduced in 2015, the CPI increase may cross 4%. However the cost living in Malaysia is still cheaper than a few countries in the region, such as Singapore and Hong Kong. The concern for inflation may assume significance in 2015. Hence a coordination of monetary

policy, fiscal policy and supply management, is important in order to maintain price stability in the next few years. Greater flexibility in the labour market can create more jobs based on self-employment opportunities. This can help raise household income and also reduce the effects of inflation on households.

48 49

Business Advocate

Whilst the Low-Carbon Society Blueprint is unique to Iskandar Malaysia, the methodologies used, content, actions, measures and programmes to reduce greenhouse gases can be duplicated in other geographical settings. The intention of this JICA-funded research project is for the Blueprint to be developed and implemented as a model and template for countries in Asia.

Low-Carbon Society is a model to minimise carbon emission in Iskandar Malaysia, while the Low Carbon Cities Framework is a tool to calculate the GHG emissions resulting from human activities in cities in a defined area. The results from any LCCF studies can be inputted into the LCS model in order to come up with a total greenhouse gas reduction in some future date.

4 Whateffectdidtheglobaleconomic

fluctuationshaveonthedevelopmentstrategy for the region? Were any consolidatedeffortsmade to keep the progress steady andonschedule?We are consistent in our marketing approach by looking at quality long term investments in focus sectors and countries. Our strategies may vary depending on the current and future dynamics of the world economy.

In the light of the Eurozone and USA debt crisis, it does mean that our efforts will require more diligence and emphasis on strategic investment potential. We do also take this situation as a window of opportunity to welcome companies from the United States and Europe looking for opportunities elsewhere.

Iskandar Malaysia will continue to position itself as the place to invest by continuing to provide competitive solutions for potential investors looking to relocate their facilities in Europe or the United States to Iskandar Malaysia.

With the looming economic uncertainty, Iskandar Malaysia will remain competitive due to its competitive advantages such as a mature industrial value chain that has existed for more than 30 years, competent talent pools and a conducive location of high growth market with global connectivity. Additionally, with the full backing of the federal and state governments, we are able to offer attractive incentive packages to potential investors.

5 What new opportunities are developingfor

IskandarMalaysia?Moving forward, the most important agenda for IRDA would be to ensure that the economic growth in Iskandar Malaysia is sustainable. This is not limited to just ensuring a steady flow of new investments into the economic region, but more critical is the development

of an ecosystem that allows businesses to grow and prosper, communities to participate in and benefit from the progress, yet without causing damage to the natural environment.

Our emphasis on adopting a green lifestyle in all relevant initiatives of Iskandar Malaysia is evident with the conceptualisation and launching of Iskandar Malaysia Smart City Framework in November 2012.

LCSIM is committed to reduce Greenhouse Gas emissions by 50% within the region by 2025We will embark on a number of environment-centred Green Agenda initiatives in 2013-2015 such as:

• Integrated Green Transportation – Iskandar Malaysia’s Mobile Management System;

• Green Economy Guidelines;

• Eco-Life Challenge Project for Schools;

• Portal on Green Technology;

• Trees for Urban Parks/Forests;

• Responsible Tourism and Biodiversity Conservation;

• Bukit Batu Eco-Community;

• Green Accord Initiative Award (GAIA) & Comprehensive Assessment System for Built Environment Efficiency (CASBEE) – a green building management system in Japan.

• FELDA Taib Andak as a Low Carbon Village; and

• Pasir Gudang as a smart, clean and healthy city.

In addition, to ensure communities in Iskandar Malaysia have equal opportunities to participate in the development, IRDA had launched targeted socio-economic enhancement initiatives, such as the Friends of Iskandar Malaysia programme that helps villagers in 14 mukims in the economic corridor to embark on new self-sustaining business ventures in line with the promoted sectors, for example, eco-tourism and agro-tourism.

All these lead to sustaining the growth, strengthening linkages between economic clusters, increasing opportunities for skilled jobs and labour productivity in line with growth target, as well as embedding environment-friendly components in the promoted economic sectors.

50 51

Members NewsBusiness Advocate

MICCI Welcomes its New Members...

Company: AFICO HOLDINGS (M) SDN BHDName: Gan Hong LeeDesignation: DirectorAddress: No. 26A & 26B Jalan Camar 1 Taman Perling 81200 Johor Bahru, JohorTel/Fax: 07-236 6600 / 07-236 6602Business Sector: Construction/Engineering

Company: AMETEK ENGINEERED MATERIALS SDN BHDName: Claude AbeyewardenaDesignation: Managing DirectorAddress: No. 48 Hilir Sungai Keluang, Phase 4 Bayan Lepas Industrial Zone 11900 Bayan Lepas, PenangTel/Fax: 04-645 5433 / 04-646 5667Business Sector: Electrical/Electronics

Company: BLAINE ROBERT DESIGN SDN BHDName: Robert Blaine GellatlyDesignation: DirectorAddress: Suite 8.01, Level 8, Menara Binjai No. 2 Jalan Binjai 50450 Kuala Lumpur Tel/Fax: 03-2386 7737 / 03-2386 7711Business Sector: Construction/Engineering

Company: ECON MEDICARE CENTRE AND NURSING HOME SDNBHDName: Ong Chu PohDesignation: Chief Executive OfficerAddress: No. 1 Jalan Camar 3 Taman Perling 81200 Johor Bahru, JohorTel/Fax: 07-234 4680 / 03-234 5680Business Sector: Pharmaceutical/Medical

Company: FRESENIUS KABI MALALYSIA SDN BHDName: Soo Mei YokeDesignation: Managing DirectorAddress: 3-1 & 3-2, Axis Technology Centre Lot 13 Jalan 51A/225 46100 Petaling Jaya, SelangorTel/Fax: 03-7957 2929 / 03-7957 3734Business Sector: Pharmaceutical/Medical

Company: HARPAJAN S. KHAULSAY & COName: Harpajan SinghDesignation: Sole ProprietorAddress: No. 2 Jalan 12/11 46000 Petaling Jaya, SelangorTel/Fax: 03-7955 8555 / 03-7955 4555Business Sector: Legal

Company: JOSH LEE FRAGRANCESName: Josh LeeDesignation: Fragrance DirectorAddress: 56-B Siam Road 10400 George Town, PenangTel/Fax: 04-229 3579 / 04-229 0336Business Sector: Retail/Wholesales

Company: KINDERWORLD EDUCATION GROUP PTE LTDName: Stephen SeeDesignation: General ManagerAddress: 100 Beach Road Shaw Tower 15-03 Singapore 189702Tel/Fax: 02-6392 3850 / 02-6392 3856Business Sector: Education/Training

Company: LIDO WATERFRONT BOULEVARD SDN BHDName: Dillon Tan Yong ChinDesignation: Chief Executive OfficerAddress: Level 15, Menara MSC Cyberport No. 5 Jalan Bukit Meldrum 80300 Johor Bahru, JohorTel/Fax: 07-226 6888 / 07-226 6288Business Sector: Property/Real Estate

Company: MDIS UNICAMPUS (MALAYSIA) SDN BHDName: Dr Richard Hari Chandra PanyDesignation: Chief Executive OfficerAddress: Suite 17.02, Level 17 Johore Bahru City Square (Office Tower) 106-108 Jalan Wong Ah Fook 80000 Johor Bahru, JohorTel/Fax: 07-207 2601 / 07-207 2161Business Sector: Education/Training

Company: INSTANT EXHIBITIONS (SABAH) SDN BHDName: Chan Kay YiDesignation: DirectorAddress: No 1 Jalan Tuaran By-Pass 88450 Kota Kinabalu, SabahTel/Fax: 088-438 119 / 088-430 119Business Sector: Media/Advertising

Company: MUNCHY FOOD INDUSTRIES SDN BHDName: Tan Lee KockDesignation: Managing DirectorAddress: 23rd Floor, Centro Building 8 Jalan Batu Tiga Lama 41300 Klang, SelangorTel/Fax: 03-3344 7888 / 03-3344 2266Business Sector: Food & Beverages

Company: NOBLELIFT MALAYSIA SDN BHDName: Chen LishengDesignation: DirectorAddress: Lot 87133 & 130428 Jalan Canang Emas 8/KS10, Telok Gong 42000 Klang, SelangorTel/Fax: 03-3166 3098 / 03-3166 3097Business Sector: Machinery/Equipment

under

constr

uction

T H E A R T O F D E S I G N

16/3/2011

52

Business Advocate

Company: PULLMAN PUTRAJAYA LAKESIDEName: Christophe Bernard KeramarisDesignation: Area General ManagerAddress: No. 2 Jalan P5/5, Presint 5 62200 PutrajayaTel/Fax: 03-8890 0000 / 03-8890 0001Business Sector: Hotel/Tourism

Company: PYAD STUDIOName: Brandon TanDesignation: DirectorAddress: 11 Jalan PBS 14/13 Taman Perindustrian Bukit Serdang 43300 Seri Kembangan, SelangorTel/Fax: 03-8948 3350 / 03-8948 5350Business Sector: Media/Advertising

Company: SINCO AUTOMASI SDN BHDName: Patrick Tan Tee YongDesignation: Executive DirectorAddress: No. 51 Jalan Masai Utama 1 Taman Masai Utama 81750 Masai, JohorTel/Fax: 07-255 2898 / 07-255 5898Business Sector: Electrical/Electronics

Company: SOUTHERN PLASTIC PRODUCTS SDN BHDName: Benny Tan Kok YewDesignation: Marketing ManagerAddress: 8042 Kawasan Perindustrian Kampung Teluk Sungai Dua, 13800 Butterworth PenangTel/Fax: 04-356 1009 / 04-356 1007Business Sector: Non Metallic Manufacturers

Company: OZLUX SDN BHDName: Chuah Seong TeikDesignation: Managing DirectorAddress: 34-2 Jalan Tasik Selatan 3 57000 Kuala LumpurTel/Fax: 03-9057 8949 / 03-9057 8946Business Sector: Electrical/Electronics

Company: TALISMAN MALAYSIA LIMITED - SABAHName: Eddie AbdullahDesignation: Government & Community Relations RepresentativeAddress: Unit K-61-5, Signature Office KK Times Square, Phase1, Off Coastal 88100 Kota Kinabalu, SabahTel/Fax: 088-487 970 / 088-487 973Business Sector: Oil/Gas/Petrochemicals

Company: UNITED OVERSEAS BANK (MALAYSIA) BHD -PENANGName: Wong Kim ChoongDesignation: Chief Executive OfficerAddress: 1st Floor, 64E-H Lebuh Bishop 10200 PenangTel/Fax: 04-258 8138 / 04-258 8166Business Sector: Banking/Insurance

001893502-X

S T U D I OP Y A D

Products Sdn. Bhd8042,Kaw. Perindustrian ,Sungai Dua, 13800 Butterworth, Penang.

Malaysia.

Kampung Teluk

Southern PlasticSince 1980

The Malaysian Investment Development Authority (MIDA) is the government's principal agency for the promotion of the manufacturing and services sectors in Malaysia.

Incorporated as a statutory body under the Malaysian Industrial Development Authority (MIDA) Act, the establishment of MIDA in 1967 was hailed by the World Bank as "the necessary impetus for purposeful, positive and coordinated promotional action" for Malaysia's industrial development. Today, MIDA's is Malaysia's cutting-edge, dynamic and pioneering force in opening pathways to new frontiers around the globe.

MIDA assists companies which intend to invest in the manufacturing and services sectors, as well as facilitates the implementation of their projects. The wide range of services provided by MIDA includes providing information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners.

To further enhance MIDA's role in assisting investors, senior representatives from key government agencies are stationed at MIDA's headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Malaysian Customs, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad.

MIDA also evaluates the following applications for projects in the manufacturing and its related services sectors:

• Manufacturing licenses• Tax incentives• Expatriate posts• Duty exemptions on raw materials and components• Duty exemptions on machinery and equipment for agricultural sector and selected services sector

With the implementation of the self-declaration mechanism for granting import duty and/or sales tax exemption on machinery, equipment, spare parts, consumables, prime movers and container trailers for manufacturers in the principal customs area (PCA), companies engaged in a hotel business and haulage operators effective 2nd May 2014, MIDA is also responsible to issue a Confirmation Letter on the status of the applicant prior to seeking the permission from the Royal Malaysian Customs Department to claim for the exemption.

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MICCI NewsBusiness Advocate

MICCI - Out & About

KUALA LUMPUR - MICCI Annual General Meeting 2014

KUALA KUMPUR - Pub Night At

Guinness Anchor Berhad

KUALA KUMPUR -

Prime Minister's Hibiscus Award

2014/2015 Launch

KUALA KUMPUR -

Seminar on Doing Business in India

KUALA KUMPUR - Business Growth Seminar

KUALA KUMPUR -

International Compliance Leadership Series II

56 57

Business Advocate

MICCI - Out & About

MALACCA -

GST Seminar

MICCI News

PERAK - Ground Breaking Ceremony of Latexx Partners Berhad

PENANG - NEPCON

PERAK - Meeting with the Thai Chamber of Commerce

PENANG - GST Training

JOHOR - Buka Puasa with

the CEO of Iskandar Regional

Development Authority

PERAK - Courtesy Call on the Mayor of Ipoh

PERAK - GST Workshop

JOHOR - Buka Puasa Evening

58

Business Advocate

MICCI - Out & About

JOHOR - Luncheon Briefing by IRDA and MIDA Singapore

JOHOR - MICCI Johor Dinner and

Dance & Directory Launch 2014

JOHOR - Talk on Tax Audit and GST

Implementation

JOHOR - WB Land Frontier Industrial Park Launch