Berita BMCC - Issue 2/2016 by British Malaysian Chamber of Commerce

Issue 104 PP 11826/07/2013 (032918)

Issue 2 - 2016

Transport Tomorrow What Will The Future Of Transport Look Like?

IssueMajestic 2 - 2016 PLUS: ■ 70 Years of Heritage ■ Prevention Priority ■ Celebration

BRITISH E I H

T CE

L SCHO O NA

ERNATIO NT

NDO DISCIM

The British International School Kuala Lumpur

Officially recognised as the top British school in Malaysia The British School of Kuala Lumpur is the only school in Malaysia

to be awarded Excellent in all areas of educational provision by a UK government approved inspectorate.

To find out more visit www.britishschool.edu.my Issue 2 - 2016

First Lines

he ﬁrst quarter of 2016 has seen a number of major milestones achieved. Our events programme is now in full swing: for our Premier Luncheon Series, we have heard

from Tan Sri Dr Rebecca Sta Maria on the hotly debated Trans-Pacific Partnership Agreement and from Tan Sri Rafidah Aziz on the need to foster the right environment for business to flourish. Turn to Pages 16 and 18 to read what these dynamic ladies shared with us. Two other equally dynamic personalities were the Guests of Honour at the BMCC/Alice Smith School 70th Anniversary Networking Lunch: alumni Tan Sri Tony Fernandes and Dato’ Sri Nazir Razak.

Andrew Sill Chairman - BMCC

The story is on Page 14. Our international OBNI team has also moved into top gear, hosting several inward bound trade delegations from diﬀerent market sec-

tors, connecting the delegate companies with potential partners and attending various business events to showcase its services. Part of the OBNI’s remit is also to assist companies looking to set up in Malaysia and the team has already carried out a substantial number of service deliveries, exceeding the target set for last financial year by nearly 30 percent. We are now receiving direct approaches from established companies, indicating that the word is spreading about the quality of service provided by BMCC. Details of some of the recent activities are on Pages 8-13. The OBNI team will shortly be leading a delegation of companies to the UK to participate in the International Festival of Business, a signature event which takes place every two years and brings together in one forum a high level gathering of businesses. This will help increase our profile on a much broader scale. Following the launch of the Education is GREAT campaign, our partnership with the UKTI and the wider team at the British High Commission is also strengthening further, with the Chamber now working closely together on a number of initiatives. During this last quarter, the number of companies opting for our Sterling Membership has doubled. All this activity is indicative of one sure thing. BMCC is a respected and valued organisation, not just here in Malaysia but in the region and further afield. In spite of what may be happening in the global market, we are firmly focused on our goal of building business for our members and identifying new opportuntities for growth. I am confident that the BMCC will continue to go from strength to strength. Our feature theme this time takes a look at the future of transport and what trends are likely to emerge. Who knows? One day we may all be zooming about in our own personalised drones or travelling into space! In the meantime, stay connected through the BMCC!

BMCC Executive Office

4th Floor, East Block, Wisma Selangor Dredging, 142B Jalan Ampang, 50450 Kuala Lumpur. Tel: +60 3 2163 1784/2163 1786 Fax: +60 3 2163 1781 Email: membership@bmcc.org.my www.bmcc.org.my Follow us on: BMCCMALAYSIA Issue 2 - 2016

The Chamber

The British Malaysian Chamber of Commerce is the leading business networking organisation in Malaysia comprising 350 top member companies with an outreach of over 75,000 employees. Since 1963, the BMCC has been a catalyst in providing businesses in Malaysia with support, networking, knowledge exchange and bilateral trading assistance. We serve as a dynamic hub for enterprise to thrive and businesses to connect with each other, helping to promote and foster trade and investment between Britain and Malaysia. BMCC is proud to be part of British Chambers in South East Asia or BiSEA, enabling our members to enjoy similar Chamber beneﬁts in eight other countries including Vietnam, Thailand, Brunei, Laos, Cambodia, Indonesia, Myanmar and Singapore.

BMCC Patrons: HE Victoria Treadell, CMG, MVO British High Commissioner YBhg Tun Musa Hitam

Chairman: Andrew Sill, The Royal Bank of Scotland Bhd

Deputy Chairman: David Ng, International SOS Sdn Bhd

Directors: Soo Kim Wai, Amcorp Properties Bhd Bob Olivier, Aspac Executive Search Sdn Bhd Andrew Diamond, IsItUp Sdn Bhd Datuk Seri Michael Yam, InvestKL Amanda Powell, KL Kudos Design Sdn Bhd Dato’ Larry Gan, Maybank Investment Bhd Michael McIver, Plus Three Consultants Sdn Bhd Mahendra Gursahani, Standard Chartered Bank Malaysia Bhd Bill Addington, TechSol Sdn Bhd Datuk Peter Wentworth, OBE, Weir Minerals Malaysia

Ex-Ofﬁcio: Sarah Deverall, British Council Tony Collingridge, OBE, UK Trade & Investment Dr Zainal Abidin Majid, Advisor To The Board

BMCC Executive Office Nik Tasha Nik Kamaruddin: Executive Director Agnes Elizabeth: Head of Business Development Ramesh Hasry: Senior Events Executive Aaron See: Marketing & Communications Executive Louis Arokianathan: Finance Manager Aﬁq Sahidi: Membership & Administrative Executive Ralph Owczarek: Senior Project Manager, OBNI Sridaran Sabapathy / Sulita Levaux / Vikramjit Lahiri: Market Research Executive, OBNI

BMCC Magazine Editor: Amanda Powell Editorial Committee:

• George Aveling • Marcus Osborne • Alison Collingridge • Nik Tasha Nik Kamaruddin • Bill Addington Production: KL Kudos Design Sdn Bhd Printing: Tinggi Press Sdn Bhd Lot 6, Jalan Kuang Bulan, Taman Kepong, 52100 Kuala Lumpur. Berita BMCC is published bi-monthly for distribution to BMCC members and other organisations in the business community. The views expressed or implied herein are those of the authors or contributors and do not necessarily reﬂect those of the Chamber.

Issue 2 - 2016

In This Issue

On The Cover

THE FUTURE OF TRANSPORT The way we travel will change beyond recognition as technology evolves to bring solutions that once only appeared in sci-ﬁ movies. Driverless cars, autonomous pods, personal drones and more. Turn to Page 21.

■ First Lines ................................................. 3 ■ BMCC’s Sponsors & Sterling Members .... 6 ■ Hot Happenings ........................................ 7 ■ Trade Talk ................................................... 8 >

OBNI Updates and more

■ ReportBack .............................................. 14 BMCC Premier Luncheon Series: >

A Journey Through Time

Hot Topic: TPPA

Environment To Thrive

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■ In The Spotlight ........................................ 19 >

Prevention As A Priority

■ Business Insights ...................................... 31

■ Cover Story ............................................. 21 > The Future of Transport

Updates From Our Sterling Members

■ Meet Our New Members ....................... 36 ■ News From Our Members ..................... 38 ■ ThinkTank ................................................ 45 >

Making Good Decisions

■ On The Social Scene ................................ 46 >

BMCC Magazine Reach Your Target Market, Raise Your Profile With BMCC

A Majestic Celebration

BMCC Magazine is a powerful platform to reach your target audience. We offer editorial and customised sponsorship packages as well as advertising at very competitive rates. Does your company have a good story to tell? Get in touch! We want to hear from you!

Sponsorship and advertisement opportunities available! Deadlines Imminent: Contact: +603 2163 1784 or editor@bmcc.org.my

Issue 2 - 2016

BMCC Sponsors & Sterling Members

BMCC 2016 Annual Sponsors & Preferred Partners GOLD SPONSORS

PREFERRED RELOCATION PARTNER

PREFERRED AIRLINE PARTNER

BMCC 2016 Sterling Members

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Hot Happenings

June

Dates For Your Diary 13-18

Mon-Sat International Festival For Business 2016 Liverpool, UK

18-21

Mon-Thurs COSMOBEAUTE MALAYSIA 2016 International Exhibition & Conference on Cosmetics, Beauty & Spa. At: PWTC

Weds BMCC Speed Networking It’s Back! 60 Seconds To Pitch Your Business! See this page for details!

27-29

Weds-Fri INTERNATIONAL FOOD & BEVERAGE TRADE FAIR Platform for F&B Industry to share updates from around the world. At: KL

Sept

July

See Page 9 for details

Weds 12TH ANNUAL CHARITY RUGBY DINNER It’s back for another round of top entertainment and fund raising. See this page!

18-20

Sun-Tues BIGIT TECHNOLOGY 2016 Anchor Event of Big Data Week Asia 2016. At: KL Convention Centre

27-29

Tues-Thurs MALAYSIA INTERNATIONAL MARINE EXPO 2016 Business platform encompassing all aspects of shipbuilding, repairs, shipping, maritime engineering, offshore technology, dredging, and ports & logistics. At: Sibu

For details on all events visit www.bmcc.org.my Follow us on Facebook for updates! Issue 2 - 2016

Trade Talk

EXPORT Attraction N ow its third year, the Overseas Business Network Initiative (OBNI) retains its chief status as one of the vital components that make up the UK government’s strategy of progressively increasing the country’s export ﬁgures.

The OBNI sits on a pivotal point of this effort by being the first point of contact for UK businesses seeking to venture into Malaysia. Tailored support services are offered to incoming businesses which drastically improves the success rate of market entry. Over the course of last year, the OBNI team at the BMCC assisted 581 UK companies across the range of our on-demand trade services such as Market Advice, Business Matching, Company Check, Market Visits, Trade Missions and Events – setting up a new direction and reaffirming the strong and sustainable support available to UK companies in Malaysia. These numbers indicate that OBNI Malaysia exceeded its allocated target by nearly 30 percent during the financial year. It has been a hectic start to 2016. Working closely with local UK Trade & Investment (UKTI) team, OBNI hosted the UKTI South East trade delegation which brought to Malaysia a wide range of innovative services and expertise in sectors such as telecommunications, chemicals, engineering and education. Some of the participating companies used the comprehensive Overseas Market Introduction Service (OMIS) offered by OBNI prior to arriving in Malaysia. Through OMIS, OBNI’s sector specialists are able to sup-

Meet The OBNI Team

Sridaran - Market Research

port incoming companies by preparing their market entry in advance and introducing them to local partners, distributors, clients or suppliers on arrival. Similarly, OBNI hosted a trade delegation from Northern Ireland brought to Kuala Lumpur by Invest Northern Ireland – the regional economic development agency. Following a series of individual meetings and site visits, we organised an evening Networking Reception in the heart of KL where a wide range of local companies where able to witness ﬁrst-hand the range of products and services brought to Malaysia by Northern Irish companies operating in manufacturing, chemicals, education, ICT and waste management sectors. The event was also widely covered by the media as it was featured on both public and cable television. British providers of education and corporate training programmes led by The Training Gateway have also been to visit, including a large contingent of British universities, colleges and private training providers. These organisations offer professional development programmes including courses with industry recognised accreditation, vocational qualiﬁcations, specialist English language training, as well as coaching and mentoring, leadership development and management consultancy. The delegation visited Sabah and Sarawak, followed by a stint in KL where the visiting companies took part in a range of networking seminars and B2B meetings – setting up a conducive environment for business engagement.

Ralph Owczarek, Head of the OBNI Team

“OBNI Malaysia exceeded its allocated target by nearly 30 percent during the financial year.” Coming up in June, OBNI will take part in the International Festival for Business 2016. IFB 2016 is the world’s largest business event that takes place every other year in Liverpool, UK. With 30,000 delegates from the UK and around the world, 80 high quality sector focused events, and 6,000 oneto-one meetings with potential suppliers, buyers and investors, the event provides a great opportunity for all forward-thinking business leaders to make their presence known on the international stage. OBNI will lead a Malaysian Business Delegation of companies that have expressed interest to take part in the first phase of the festival. These companies will have the invaluable opportunity to network with the world’s most influential business leaders, entrepreneurs and investors. B2B meetings with UK suppliers, buyers and investors will also be made available in the course of the week. See opposite for details.

Ofﬁcial launch in the UK of Sulita Exporting - Market Research is GREAT CampaignVikram - Market Research

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Aaron - Marketing

IFB

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Trade Talk

OBNI: Developing Ties The OBNI Team have had a busy first quarter attending various trade shows and events, all part of developing relationships with the regional business community. Here’s a round-up of where OBNI made its mark. 15-16 March 2016 8th Mobile Commerce Summit Asia BMCC was proud to be the official event affiliate of the 8th Mobile Commerce Summit Asia 2016 where it provided comprehensive and interactive experience-based presentations, panel discussions, case studies, and break-out group sessions.

11-12 January 2016 UK Fintech Roadshow to Vietnam Sridaran [far left], OBNI Malaysia at the UKTI Fintech - Trade Delegation in Vietnam

18 February 2016 Malaysia Technology Expo (MTE) Vikram, OBNI Malaysia, operated a booth at the annual Malaysia Technology Expo 2016, Putra World Trade Centre under the theme: “Moving Innovations to Market.”

23 February 2016 Launch of GREAT Year of Education HE Victoria Treadell of the British High Commission headlined the grand launch of the Great Year of Education campaign held at Heriot-Watt University Putrajaya. BMCC Executive Director Nik Tasha [above] was interviewed by Bloomberg TV. [See Page 17] 24 March 2016 UKTI Business Ambassador Roundtable & Luncheon Featuring speaker Ayman Asfari, Group Chief Executive of Petrofac, OBNI hosted a Roundtable discussion high-proﬁle ambassadors from the UKTI and British High Commission, coming together to discuss the latest in Oil and Gas development and future prospects. [See Page 12]

23-24 January 2016 Education UK Exhibition Hong Kong Attended by the BMCC with over 100 representatives from UK schools, colleges and universities, seminars covering a wide range of topics, from UK and Hong Kong education systems.

14th March 2016 Northern Ireland Trade Delegation BMCC’s OBNI hosted a lively and fruitful Networking Reception for a delegation of companies from Northern Ireland. [See opposite]

17 March 2016 BMCC Meeting with MATRADE BMCC met with MATRADE Senior Manager of Transport, Logistics, Machinery & MRO, Azman Md. Yusof to discuss future collaborative potential.

30 March-2 April 2016 - MIHAS 2016 As a supporting organisation, BMCC was present at the opening day of the 13th Malaysia International Halal Showcase.

20 February 2016 Mega Career & Study Fair 2016 As ofﬁcial partner of the Mega Career & Study Fair, BMCC took a booth at the event.

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12-15 April 2016 - FHA 2016 OBNI’s F&B Sector Specialist Sulita Levaux attended FoodAsia, the 20th International Exhibition of Food & Drink, as it returned to the Singapore Expo.

29th February 2016 BISEA 2016: OBNI Strategy Moving Forward BMCC was a key participant at the BISEA [Britain in SE Asia] 2016 meeting. UKTI Regional Head, Chris Pook delivered the overview presentation.

Trade Talk

Northern Ireland: Seeking Out Trade

sizeable trade delegation from Northern Ireland visited Malaysia recently to explore business opportunities. BMCC in cooperation with UK Trade & Investment (UKTI) hosted the visit, which was brought to ASEAN by Invest Northern Ireland – the regional economic development agency. Northern Ireland is a region of the UK and an export-focused economy in which companies across all sectors are keen to develop trading and other exchanges with overseas markets. Over 800 foreign owned businesses operate in Northern Ireland while Belfast’s GVA (Gross Value Added) stands at £36,553 being the 3rd highest level of GVA in the UK behind Edinburgh and London. Northern Irish companies are known to have a wealth of experience in providing innovative products and services that are valued by many business sectors worldwide. Aside from learning about the new market, the purpose of the visit to Malaysia was to develop a successful relationship infrastructure through direct sales, joint ventures and strategic alliances. Following a range of individual meetings and site visits around the capital, the BMCC hosted an evening Networking Reception at DoubleTree by Hilton where dozens of local companies where able to witness ﬁrst-hand the variety of products and services brought to Malaysia. One to one meetings with UK companies ran in parallel to the Networking Reception allowing the delegation direct access to new customers, showcasing their portfolios and developing important business relationships.

The Delegation Medizar Sanitiser Products: Specialising in the supply of leading edge technology anti-bacterial/microbial sanitiser products NiSoft: Recognised leader in the development of specialist safety documentation management system software for asset intensive facilities North West Regional College (NWRC) : Supporting industry needs by building capacity in Technical and Vocational Education & Training (TVET) Pollock Lifts: Manufactures vertical lifts for people with disabilities Re-Gen Waste: Innovative recycling company specialising in sorting recyclable waste in excess of 120,000 tonnes every year Texthelp: Educational software provider which owns range of educational applications helping people with dyslexia or other learning difﬁculties to boost their conﬁdence and language skills

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Trade Talk

Making A MARK

who are also involved in business activities here in Malaysia.

BMCC makes its mark in the Oil & Gas industry with Mr. Ayman Asfari, UKTI Business Ambassador to the energy sector.

ince the inception of the Overseas Business Network Initiative (OBNI) in 2013, the BMCC has rigorously pursued initiatives to build a prominent presence across key industries and sectors throughout Malaysia. The primary channel for achieving this has been to generate momentum for incoming businesses from the UK, offering them support and introducing them to local partners. The Oil & Gas sector has always been a key interest area for the Chamber, one which offers opportunities for UK ﬁrms through the means of strategic partnerships and joint ventures. OTC Asia 2016 (Offshore Technology Conference 2016) presented an ideal environment for the Chamber to enhance this effort. OTC Asia 2016 forms one out of a four part series which takes place across the world. The event which

runs for an entire week attracts operators from across the globe who are involved in upstream operations, supply and services. Held at the Kuala Lumpur Convention Centre, OTC Asia 2016 provided a platform for businesses to showcase their merits and forge valuable business connections, the Chamber included. Through a partnership with Petrofac Malaysia, the BMCC hosted a roundtable presentation which featured Ayman Asfari as its keynote speaker. In addition to being the founder and current CEO of Petrofac, Mr. Asfari is also UKTI’s Business Ambassador to the energy sector, a role conferred by Prime Minister David Cameron. Under his mandate as Business Ambassador, Ayman is tasked with aiding UK businesses in the energy sector to achieve global presence, particularly in emerging markets. The roundtable discussion acted as an industry conclave and was held at the Grand Hyatt Hotel Kuala Lumpur, during the week of OTC Asia 2016. The aim of the roundtable was to facilitate an intimate discussion on the Oil & Gas industry. The session, which was moderated by Stephen Hill, Deputy Director of UKTI Malaysia, comprised upstream operators from the UK

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In his address, Ayman underscored several key issues pertaining to the Oil & Gas industry, based around the current volatile state of the industry. He began by retelling the story of Petrofac and its inception in the 80’s. According to Ayman, the model on which Petrofac was built provides it with greater control over operations, in particular its strong regional presence. “During the early 90’s, Petrofac was among the few companies to have an operational base in the Middle East, a practice that was not well-adopted by other services companies during the time. The local nature of our operations allowed us to engage with clients and governments and offer bespoke services which provided access to greater opportunities in the region.” Ayman continued to build on this point by explaining that governments are likely to tighten their control on resources for foreign ﬁrms as they adopt austerity measures resulting from the current economic downturn. To be able to adhere to such stringent standards, Ayman suggested that companies must be closely located in the area of operation; remote managing is quickly becoming obsolete. The second issue Ayman highlighted was the redundant/inefﬁcient practices to which the industry has become accustomed. He noted that it enjoyed high margins when oil prices were north of $100 a barrel and adopted practices that should not be accepted as industry norms. Ayman alluded to the fact that operational downtime for some platforms/rigs can extend up to six months.

Trade Talk

He compared the Oil & Gas industry with practices from the Airline industry which operates on narrow margins and is determined to minimise downtime. In his view, operating in the commodities market always poses price risks therefore operations must be lean and efﬁcient to be able to endure price volatility.

Ayman acknowledged that there are over 3,000 companies in the UK which are operating in the Oil & Gas sector, along the full range of the industry’s supply chain. “Among these operators, those who are able to enhance efﬁciency and work towards reducing operational downtime will experience suc-

cess in new markets. Companies that work towards integrating digital technology and adopting frontier technology will be sought after as they improve on delivery standards.” He added that the UKTI focus should be on identifying such companies as they possess the greatest chance of success in new markets. The roundtable discussion was followed by a networking lunch session ofﬁciated by Paul Rennie, Deputy British Commissioner to Malaysia. Along with attendees from the roundtable discussion the lunch was also attended by Tony Collingridge, Director of UKTI Malaysia and heads of business from Petronas.

South East Looks To ASEAN S ome two dozen companies from the UK’s South East region came as a trade delegation to Malaysia recently to explore business opportunities. Hosted by the BMCC and UKTI Malaysia, this was the eighth market visit to the region from the South East of England in the past seven years, underlining the importance of ASEAN’s fast growing economies and rapidly expanding opportunities for businesses operating in this part of the UK.

He is also the South East contact for the Oil & Gas sector, providing additional support on satellite communications to the marine and aerospace specialists.

The 24 participating companies offered a wide range of innovative services and expertise well suited to the Malaysian market where they met with potential clients and partners.

The delegation was led by Michael Salmon, UKTI’s International Trade Adviser with over 20 years of export experience in sectors such as telecoms, chemicals, engineering and academia.

Pictured from left: Stephen Hill, Deputy Director, UKTI; Siva Somasundram, Senior Trade Manager, UKTI; JAgtar Brar, CEO, Aquaintelli; Richard Boddie, CEO, Norvic; Alison Collingridge, Head of Marketing & GREAT Campaign, British High Commission; Fleur Johnson, Chief Operating Ofﬁcer, Aviation Skills Partnership; Rachel Montague-Ebbs, Supply Chain Director, CPM Retail; Michael Salmon Market Visit Leader and International Trade Adviser, UKTI; Tim Saw, Director - Communications & Alliances, InvestKL; Richard Jammes, International Account Director, SERCO; and Ralph Owczarek, Head of OBNI, BMCC.

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ReportBack

JOURNEY Through Time Tan Sri Tony Fernandes

Dato’ Sri Nazir Razak Roger Schulz

Here’s an extract of what went down.

he Alice Smith School Kuala Lumpur is marking this 70th year of its rich British educational heritage with a programme of celebrations and activities throughout the year. As part of its engagement with the business sector, the School recently hosted a Premier Luncheon in conjunction with the BMCC, featuring two illustrious members of its alumni - Tan Sri Tony Fernandes, AirAsia Group Chief Executive Ofﬁcer, and Dato’ Sri Nazir Razak Chairman of CIMB Group. Attended by people from all walks of life, the large crowd comprised BMCC members, industry leaders, student parents, and alumni. Among the VIP party was British High Commissioner HE Vicki Treadell CMG MVO, accompanied by Director of UKTI, Tony Collingridge OBE. Corporate giants in their own right, Tan Sri Tony and Dato’ Sri Nazir, who are also long-term friends, shared memories from their years at Alice Smith and spoke about their respective journeys in the corporate world. Roger Schulz, Head of School at Alice Smith, and Andrew Sill, Chairman of BMCC [top right, on far left], put a series of questions to the two guests, questions whey they answered with humour and humility.

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On how they ﬁrst met: NR: The ﬁrst time we met was when this guy [Tony] came to see me with a crazy idea about buying an airline. On their memories of School: TF: I loved sports and used to play anything at every opportunity I had. I wasn’t a very good student! NR: I spent a fantastic two and a half years at Alice Smith in between local school and boarding school. It was a real shock to the system – in a good way. Things were far less formal and my circle of friends was suddenly so much more diverse.

Most importantly it was the ﬁrst time I was at the same School as girls! On their early careers and inspiration: TF: I became an accountant by default – I didn’t know what else to do and I hated it with a passion. I actually wanted to be a musician so I wrote to every company I could think of, including Virgin – they all said no. Then I happened to meet Richard Branson as I was on my way out of the Virgin interview and I just got lucky – he gave me an opportunity and put me with Virgin TV in the Finance Department. I have always liked planes. I was intrigued by the Freddie Laker model and then on one trip to London I saw the Easy Jet concept. Then I bought AirAsia! Yes for just RM1 – of course there was a sizeable debt as baggage.

ReportBack

NR: I came back to KL in ’79 and I had no idea what I wanted to do really. So I became a banker. CIMB was very small at the time but there was a ‘can do’ attitude. It dared to compete aggressively with the big boys and transformed itself from an investment bank into a now-international consumer bank. On being a young CEO: NR: I was appointed to the role at a very young age but I was very competitive and didn’t think twice. I just made sure I surrounded myself with wisdom. TF: I didn’t give it a second thought. I just jumped at the chance. These days people spend too much time thinking and analysing - not enough time doing. Just go out and grab it! On ﬁnding the right people:

On advice to parents: NR: Anticipate the future. Technology is disrupting the business landscape. Be mindful of that and don’t prepare them for a career that will be extinct before too long. TF: Have conﬁdence and faith in their abilities. Prepare them for the real world, rather than just prepping them for exams. Give them a chance and make them stand on their own two feet. Most important of all, let them clock up different experiences, have different exposure.

The Alice Smith School events throughout the year are being supported by the British High Commission Kuala Lumpur, BMCC, Malaysian Australian New Zealand Association (MANZA), Association of British Women in Malaysia (ABWM), St. Patrick’s Society of Selangor, Royal Society of St. George and Selangor St. Andrew’s Society. Crown Relocations was Platinum Partner for the Luncheon event.

HE Vicki Treadell with Tan Sri Tony

NR: It’s tough to find people who care, people who have the right value sets and are committed to the organisation. TF: People are attracted to your brand. Make that compelling and they will come. It’s important to be hands-on and involved in the process of finding talent. The CEO has to be the Chief Talent Officer. Sometimes, brightest talent is right there under our noses. We need to create the right environment so that people feel they can achieve their dream.

Issue Issue22--2016 2016

47 15

ReportBack

HOT Topic: TPPA T

he hotly debated Trans Pacific Partnership Agreement or TPPA was the subject of the first BMCC Premier Luncheon of the year with Guest of Honour and keynote speaker Tan Sri Dr Rebecca Fatima Sta Maria, Secretary General of the Ministry of International Trade & Industry [MITI]. Following welcome remarks by BMCC Chairman Andrew Sill, Tan Sri Dr Rebecca led an insightful session on the TPPA and how it relates to regional business and to Malaysia in particular. “Malaysia is no stranger to free-trade agreements or FTAs. We are already party to seven bilateral agreements and six regional ones. One of our first tastes of FTAs was through an ASEAN agreement with China – in general we found it to be beneficial. Much analysis and research was carried out prior to signature with issues being thoroughly explored and assessed. And because the TPPA is so controversial, it was taken to Parliament which led to a 3-day debate on the matter and eventually resulted in an agreement for Malaysia to sign. A two-year period is required for the ratification process, mainly due to the complexities of the TPPA and how domestic laws and procedures will need to be aligned with the international commitments it brings. Within this two-year ratification period, six of the original members have to ratify the TPPA for it to be officially enforceable. For Malaysia, the three main areas that require alignment, focus and negotiation are labour, government procurement and IP. That said, we did secure various flexibilities during the negotiations. For example, the transition period for some commitments can be longer. The bumiputera policy was carved out clearly, which in itself was challenging as there was no available policy or treaty similar to what New Zealand has in place for the Maori people. The Investor State Dispute Settlement (ISDS) which allows corporations to sue governments, has caused a good deal of controversy, yet the TPPA includes the most number of safeguards to prevent frivolous claims. The labour portion of the TPPA is still under debate in particular with regard to the treatment of foreign workers. In terms of market access, once the TPPA is enforced, 85 percent of duties will be cut

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to zero; already within ASEAN, almost 99 percent of products are zero-rated and in 10 to 15 years, even tariffs on sensitive products will be eliminated. There’s no denying there will be challenges. Local companies will have to improve productivity and government entities such as SME Bank will need to allocate resources for this. Products will have to meet certain standards as well and the issues surrounding intellectual property rules are yet to be clariﬁed. Yet, the TPPA makes Malaysia attractive precisely because of all the rules that come with it. Additionally, through investment investing in Malaysia, organisations will have access to other member organisations of the TPPA.” A lively Q&A followed the talk with a series of questions from the ﬂoor. Will the direction set by the TPPA open the door for the EU-FTA? The EU is more demanding than the US; EU labour laws are much more stringent. The TPPA intellectual approach is also very different. For example, the EU governs the naming of certain products, for example, if one wants to produce parmesan cheese, it would have to be from Parma, whereas under the TPPA, the names can be generic.

Do you see further integration between ASEAN countries? ASEAN economic integration is unlike the EU where a member state cannot have other bilateral FTAs. The integration we have allows us all to grow if one of us grows. What would the impact of the TPPA be on non-tariff products? The TPPA is very transparent, with nontariff measures better addressed than other FTAs. “In summary, the TPPA is a rising tide that will lift all ships. With better rules and regulations, there will be more efﬁcient production. It will help ASEAN move to the next level of integration, improving standards and raising productivity levels. ASEAN inclusiveness will see the gap narrow.”

ReportBack

F Off To A Flying START

ollowing the successful UK launch of the Education is GREAT campaign at Imperial College London at the start of the year, British High Commissioner HE Vicki Treadell and the Malaysian Deputy Minister for Higher Education YB Datuk Mary Yap recently launched the campaign in Malaysia, at Heriot Watt University in Putrajaya. The purpose of the Education is GREAT campaign is to drive UK engagement to a new level and help support Malaysia’s goal to be the education hub for ASEAN. The three year campaign will bring together British education providers across schools, universities and vocational training, professional bodies, the British Council and local education providers to work together to achieve the shared education goals in Malaysia. Already off to a ﬂying start, he campaign has attracted 150 British and Malaysian education institutions, companies and organisations including the BMCC as campaign partners. At the Malaysian launch, the audience, comprising UK and Malaysian government representatives, educators, commerce and students, witnessed three MOU signings. With an estimated value in excess of £570,000, the MOUs were between Shell and Heriot-Watt University; and CIMB and BAE Systems and the UK Government’s Chevening Scholarship Programme.

Students from International School at Park City wowed the crowds with their performances of Bond, Bowie and Elgar. Students Portia and Athena wrote and performed beat poetry highlighting what experiences their GREAT Education affords them.

This was followed two days later with the ofﬁcial opening of Reading University’s Malaysian campus in Education City, Johor. This is the UK’s ﬁfth university to open in Malaysia, more than any other country in the world. The Education is GREAT campaign is being run by the British High Commission Kuala Lumpur and is backed by strategic partners: UKTI, British Council and Visit Britain.

The campaign focuses on several themes including: sharing technical and policy expertise to develop the Malaysian and wider ASEAN education market; attracting and promoting UK transnational education in Malaysia; development and promotion of UK vocational education and training. The High Commission is also working to engage with UK alumni in Malaysia, estimated at some 500,000, and so highlight British future learning, business and career opportunities and membership to professional bodies. The campaign is planned for roll-out across the ASEAN region next year and colleagues from the ASEAN markets will be invited to attend showcase education events in Malaysia, including: BETT-Asia trade fair; the Wilton Park and Pearson Group Education Summit and British alumni weekend.

Growing Market The Malaysian Government estimates there are 160 nationalities currently studying in Malaysia, positioning the country as a gateway for International Education. International Schools offering the British Curriculum have increased signiﬁcantly in recent years. The local demand for IGCSE and A Level has driven growth in the market as Malaysian parents take advantage of the increase in spaces allocated to local students. Schools are also now beneﬁtting from the diverse cultural mix of students and learning opportunities. Christ College Brecon and BH Holdings have recently signed a memorandum of agreement to bring a sister school to Malaysia. Christ College Brecon was established in 1541 by King Henry VIII and brings 475 years of academic excellence to Malaysia. The new school, scheduled to open in 2017, will be located in Cyberjaya.

Issue 2 - 2016

ReportBack

Environment To THRIVE

istinguished politician and formerly Malaysia’s longest serving Minister of International Trade & Industry [1987 to 2008], Tan Sri Raﬁdah Aziz brings a wealth of experience to the table. Fondly dubbed Malaysia’s ‘Iron Lady’, she used her familiar no-nonsense style to talk about Entrepreneurship and other salient matters to a suitably impressed audience at the recent BMCC Premier Luncheon Speaker Series. Her message was loud and clear. “Don’t be confused by the political ‘haze’. The key thing is to focus on creating an enabling environment that will allow businesses to thrive, expand and diversify. Establish the right regulatory framework. Enable them to go cross-border. Give them the space to be creative.

Issue 2 - 2016

“While the Government has a vital role to play in facilitating this environment for business, the private sector most deﬁnitely has a contribution as a driver of partnerships and collaborative ventures. The economy is going to be derailed any time soon but we must do whatever we can to protect it and encourage the private sector to ﬂourish. “The public sector needs to revive the partnership with business, remove the red tape and irrelevance. It needs to engage more closely with its stakeholders, follow a consultation process and only then make decisions. It’s common sense. “The private sector can be the catalyst and initiate the approach, get the public sector to come closer. Please, BMCC, make it your mission to play your part. “Malaysia is still very much a viable proposition. The foundation is there. Let’s tell the right story and get Malaysia on everyone’s radar screen for the right reasons, as a shining star.

“Entrepreneurship must be in the picture. It is these businesses that drive business, but support them if they need help with management or other skills. “Changes are happening everywhere. The profile of markets, of competition is evolving; changes brought about by cross-border demands are impacting business; the way companies go to market is being dramatically disrupted; and the consumer profile is also changing. It’s the market place that will dictate the future direction of business. Entrepreneurs need to understand these dynamics and they will succeed.” Tan Sri Rafidah is currently Non-Executive Independent Chairman & Director of AirAsiaX and in 2015 was appointed as Chairman of Supermax Corporation.

In The Spotlight

PREVENTION Priority F

or companies to operate and grow their business, it follows that employees must travel and work internationally, often placing them in environments that are unfamiliar, remote or harsh. This level of uncertainty puts them at risk. Even a minor health or security issue, if unchecked, can quickly escalate into a more serious problem. The ability to respond to and manage these risks is key, both for the well-being of the employee but also for the continuity of the business. Dr. Greg Jakuboski, Regional Medical Director, Corporate Solutions, Asia of International SOS explains. “ The best way for a company to ensure that employees stay healthy and safe is to establish robust preventive programmes, catered speciﬁcally for the environments they are in, he says. “This can take many forms. For individuals this includes pre-travel medical screening programmes as well as eLearning

campaigns to raise awareness of particular risks. On a broader basis, we will go into a location and conduct a site health survey to assess the risks, provide a report and propose a solution that is tailored to that specific environment. “In the event that prevention has not been possible, and an incident does occur, immediate and effective assistance is fundamental. Our assistance service provides immediate support followed by evacuation if required.” The biggest risk to employees working overseas is still road traffic accidents and cardiovascular conditions – heart attack and so on. From a security perspective, the most frequent incidents are petty crime, and loss or theft of valuables such as passport of wallet, he says. International SOS has particular track record in the energy, mining and infrastructure sectors, where it has been assisting clients, providing prevention solutions and risk mitigation. “With many companies in Asia now expanding to new markets such as Africa and the Middle East, they will need to put in place the right prevention programmes to assist and protect their employees.” He emphasises also that people don’t need to wait for an incident to occur. “Advice from medically qualified and security experts is immediate and unlimited – we encourage employees to always call us first, no matter how minor the issue may seem. If we can help them stay safe from talking to them over the phone, that’s a good outcome.” Clients also have access to an Assistance App, an essential tool for business travellers and overseas employees. The app delivers essential information and advice to the palm of employees’ hands. This includes the latest medical and travel security alerts, delivering travel advice before and during trips. “If the unexpected should happen, they will be one tap away from experts within our global assistance network.”

Having worked initially as a medic for the Emergency Services Department and then as a Medevac physician, transporting the sick and the injured to and from all parts of the world, he understands full well how critical it is to have access to the right care and support – and fast. International SOS also services a growing number of clients in the services sector – IT, Finance, Education for example. The company is also servicing the airline sector, particularly in the luxury segment, providing assistance programmes to private jet and superyacht leasing companies. “IT and Finance organisations, which are mostly based in cities, have different requirements to those in the remote, harsh environments. The biggest threat they are facing is from Non-Communicable Diseases such as heart disease, diabetes and cancer. These conditions of course not only affect

the well-being of the workforce but also the continuity of the business. “With wellness programmes, it’s important to understand that this is a two to three year journey and it involves generating awareness, change management, and then monitoring the results.” Such wellness programmes will also be a signiﬁcant factor in attracting top talent. “Millennials are attracted by very different criteria and a key differentiator could be a comprehensive wellness programme.” When it comes to health and security, every location is different. The same applies to organisations; every set of needs are different. There is no ‘one-size-ﬁts-all’ approach to employee healthcare or travel security. “That’s why our approach is consultative. We help assess the risks associated with every working environment and design appropriate preventive programmes – including training, procedures and policies – to protect organisations and their people.” The results speak for themselves with the investment in pre-travel health screening delivering up to 2.5 x savings. “The costs of a failed assignment due to a health condition or medical incident far outweigh the cost of prevention.”

www.internationalsos.com Issue 2 - 2016

Issue 2 - 2016

Cover Story

The Future of Transport Personal drones, driverless vehicles, autonomous travel pods and journeys into space. Will these and more become the mode of transport for future generations? Until such out-of-this-world ideas become reality, what measures need to be taken to ease the increasingly congested roads that clog up our lives and our lungs? Also what action is required to protect our planet from further environmental damage as toxic emissions and irresponsible behaviour continue to harm our very existence. Our feature section takes a look at some aspects of this vast and thought-provoking subject.

Issue Issue22--2016 2016

Cover Story

Plugging Asia’s Infrastructure Gap Investors have plenty of appetite for Southeast Asia’s infrastructure projects, but poor structuring of deals keeps them at bay. Ajay Kanwal of Standard Chartered Bank provides some insights. 2016 is the year to defy the herd instinct, and seek out opportunities that will prove worthwhile for when financial markets bounce back. If investment in infrastructure seems too daunting to undertake at a time when Southeast Asia’s economies are cooling, now is precisely the time to pursue it. When structured right, infrastructure financing could make for an attractive asset class for institutional investors, with huge positive impact on the region’s economies. Better infrastructure which promotes the seamless movement of goods and services will also edge the 10 members of the ASEAN community a step closer to achieving their goal of seamless regional connectivity. For too long, institutional investors have shied away from emerging market infrastructure development, in part because they naturally prefer mature projects with steady cash flows in a stable legal and regulatory environment.

Demand for infrastructure is growing The Asian Development Bank forecasts that Asia needs US$8 trillion in the decade to 2020 to plug the infrastructure deﬁcit. As countries move up the value chain and urban populations expand, demand for transport, logistics and utilities will only continue to grow, increasing the burden on public funds. Rising urbanisation in countries such as Indonesia and the Philippines will spur greater need for physical infrastructure and power generation capacity. Indonesia’s Planning Commission is focusing on mass transit, toll roads and airport development, while President Benigno Aquino III’s government prioritises the development of ports, expressways and energy projects.

Investors are interested, but kept at bay Given the massive need for infrastructure, the region may still face a funding shortfall even if the newly-launched Asian Infrastructure Investment Bank (AIIB) provides annual

loans of US$10-15 billion for the ﬁrst ﬁve or six years.

Better infrastructure will spur growth

It is, however, a misconception that private investors are not interested in infrastructure projects, and that this is to blame for the deﬁcit. Instead, it is often the poor structuring of such initiatives that keeps private money at bay.

Commercial banks also play a leading role in the coordination of regional projects, enabling cross-border projects to take root and bear fruit.

Commercial banks can provide the missing link in the infrastructure development picture. Not only do they have the ability to take on greenﬁeld project risks and provide liquidity, they can also work with governments to create the right conditions for ﬁnancing, and bring about a sustainable pipeline of bankable projects.

Greater institutional investor appetite will enhance the interest of commercial banks Commercial banks’ ability to structure transactions appropriately, so that risks sit with the most suitable party, is key to unlocking new sources of capital for infrastructure development. The money management community, which lacks the appetite for diverse risks generated from projects in their initial phase, is more likely to provide longer-term infrastructure ﬁnancing if short-term bank loans have been used to fund the early phases of the initiatives. This mechanism works both ways. Greater institutional investor appetite will enhance the interest of commercial banks, which will then have greater surety that their capital can be recycled within an acceptable timeframe. Similarly, a deeper infrastructure bond market will also provide an additional source of liquidity for the region’s infrastructure development. Multilateral development lenders, such as the AIIB, can still play a critical and complementary role in Southeast Asia’s infrastructure ecosystem. By providing assistance and guarantees, which has the effect of reducing risks, AIIB can make capital projects more attractive to commercial banks and institutional investors.

Higher-quality infrastructure will not only catalyse trade and investment ties among ASEAN members, but also help attract more visitors to the region, increasing consumption and growth. The World Bank estimates that a 10 per cent increase in capital investment into infrastructure projects contributes to a 1 per cent growth in GDP. Still, the basics have to be set right. Governments need to create an environment with a consistent legal and regulatory framework, alongside transparent governance and decision-making processes. Without this, investment in emerging economies will be viewed as more risky than similar opportunities in more developed countries. In the infrastructure ﬁnancing world, the concept of the zero-sum game is real.

Narrowing the infrastructure gap is within our grasp Infrastructure development is not a silo initiative. It calls for a coordinated approach involving collaborative governments; multilateral development lenders; commercial banks with well-established global networks and expertise in appropriate risk structuring; viable capital markets; and cash-ﬂushed institutional investors. And commercial banks are the fabric that binds all these parties together. The time is ripe to develop infrastructure as an attractive asset class. If infrastructure projects are structured efﬁciently, and private funds brought in at the optimum time, the region’s infrastructure gap can be narrowed. And institutional investors will have a new opportunity to put their funds to work for a worthy cause with potential long-term returns.

www.sc.com

A version of this article was ﬁrst published in Straits Times

Issue 2 - 2016

Cover Story

On The MOVE

ransit Oriented Development (TOD) became a ﬁxture of modern planning when Peter Calthorpe, a student of the environmental sustainability movement, published “The New American Metropolis” in 1993. As explained by analysts, “Transit-oriented developments have the potential to provide residents with improved quality of life and reduced household transportation expense while providing the region with stable mixed-income neighbourhoods that reduce environmental impacts and provide real alternatives to trafﬁc congestion.”

In Malaysia, TOD is defined as a walkable mixed-use form of development typically focused within a 400-metre radius of a transit station or any public bus network. At a normal pace, it would take five minutes to walk 400 metres. Developments are concentrated near stations to make transit convenient for people and encourage riderships. Public transportation, walking and cycling are the main modes in this development concept. Under the 11th Malaysian Plan, the Government has placed greater emphasis on TODs to increase the usage of public transportation and optimise land use in urban areas. As such, both government-related bodies and private companies are leveraging strategic land banks that are located close to transportation hubs. These land redevelopment projects include Bukit Bintang City Centre, Tun Razak Exchange, the Kwasa Damansara Township and Bandar Malaysia. The best example of a TOD in Malaysia currently is KL Sentral [above], an exclusive 72-acre urban development built around Malaysia’s largest transit hub. It consists of residences, office blocks, hotels, shopping malls, an international exhibition centre and entertainment outlets.

The Ministry of Urban Wellbeing, Housing & Local Government has proposed that the standards of upcoming TODs are to mirror the following: •

KL Sentral for Regional/ Urban TODs

•

Kajang Komuter + MRT for Suburban TODs

•

Sri Rampai LRT for Urban Neighborhood TODs

•

Subang Jaya Komuter for Neighborhood TODs

ing; and creating quality public spaces that provide direct, convenient, safe and attractive access to transit. However, the presumed beneﬁts that could arise from TOD far outweigh its challenges. Some of the known beneﬁts are: •

Location efﬁciency from numerous travel and economic beneﬁts

•

Value recapture from direct savings to individuals, households, regions and States

To ensure the success of these TODs, the country transportation infrastructure must be expanded and improved.

•

Liveability improvements in environmental conditions, mobility choices, increased accessibility and health

Under the 11th Malaysia Plan, by 2020, the public transport (vs. private vehicle) share is targeted to achieve 40 percent in the Greater KL/Klang Valley (GKL/KV) region and 20 percent in other capital cities.

•

Financial returns to local governments, transit agencies, developers and employers

•

Choice in housing types, retail types and transportation options

To encourage this shift from private to public transport, it will focus on providing services that are well-connected, accessible, affordable, convenient, reliable and safe. Strategies to improve overall public transport services will cater to rural, ruralurban, urban and intercity mobility.

•

Efﬁcient regional land use patterns, resulting in reduced greenﬁeld development, jobs and housing balance, and shorter commutes.

There are currently 48 Light Rail Transit (LRT) Stations, 54 KTM Komuter Stations and 11 Monorail stations, with another 25 LRT stations, 31 Mass Rapid Transit (MRT) stations and Bus Rapid Transit routes under construction in the GKL/KV region.

This article was provided by Zerin Properties, a RICS Firm which provides select consultancy on Transit Oriented Developments and for Transport Providers in Malaysia.

www.zerinproperties.com

As with any development initiative, the TOD comes with its own set of challenges. Among these are providing a mixed-use development and density that complement both public transport users and the local community; ensuring built form is designed and orientated to facilitate and encourage transit use; managing the safe circulation of pedestrians, cyclists, vehicles and parkIssue Issue22--2016 2016

Cover Story

Road, Rail and... RETAIL By Allan Soo, Managing Director, Savills Malaysia rent. The trick in fact is to look for hidden opportunities in sweet spots. Some new centres in PJ still have some good locations available at less than RM10 per sf for example. Retailers may have overlooked the new opportunities created by two new developments in the country however. Both of these are connected with the infrastructure invested in the Klang Valley and the rest of the country.

he retail industry is reeling under the toughest trading conditions yet, amidst a host of strong headwinds like never seen before. 2014 was particularly bad when Malaysia went through a crisis with airline disasters and political and economic turmoil. There has been little improvement since. In fact, 2015 saw further decline in sales throughout the country, with most categories witnessing a 20 percent drop in sales across the board. And 2016 is expected to be even worse whilst the forecast is that if the ringgit and oil prices remain low and the political climate uncertain, the mid term (5-year scenario) prospects will not look good. GDP growth will stay below 5 percent per annum. Meanwhile, supply of shopping centres continues unabated in terms of growth. Not only is it clear even to the layman that we have too many shopping centres, the chart itself shows that since 2004, we have grown by 1.8 times from 32.83 million sf to 58.71 million sf by the end of 2016. There are now 155 malls and hypermarkets in the Klang Valley. In per capita terms, we have 7.5 sf per person! More than Singapore. Shopping centre rents continue to rise in the more popular malls. The index of rents for 60 malls, measured from 2005 shows a 1.8 times increase in rents up to 2015. Rents in the most expensive shopping centre in the country have now reached a whopping RM200 per sf! A small shop in the concourse of 650 sf for example now pays RM130,000 per month towards rent! The oversupply of malls has precipitated a dilution of trade. As a result, casualties are rife â&#x20AC;&#x201C; Carrefour has closed down and AEON

Issue 2 - 2016

is considering closing some of the original Carrefour shops that it bought from its competitor. Tesco is retrenching staff. Giant is undergoing some rationalisation. Sales have dropped signiďŹ cantly in this division. Meanwhile, Parksonâ&#x20AC;&#x2122;s sales turned negative after nearly two decades of growth. And on the bricks and mortar side, SS Two mall has been demolished. Externally, we are seeing a drop in tourist arrivals too, as Chinese tourists avoid Malaysia. They are the big spenders and help boost sales in our top malls. Luxury brands are also reeling from the weakening Chinese economy and consolidating by reducing shops or shuttering expansion plans in Asia altogether. Gucci and Burberry are rationalising their store locations in Hong Kong. Meanwhile rising costs have affected consumer spending as disposable income shrinks. Since 2014, the cost of electricity, toll rates, water, school fees, bus, taxi and train fares, petrol, food and daily necessities have all gone up rapidly. Then there was GST last year, plus job uncertainty. All in all, this is not a good time to expand in the retail industry. Or start a new venture in malls. UnThe puts less youcurriculum are lucky enough at the tostudents secure a reasonably good location in whole a good heart of the suburban mall at a fair

Take the LRT and MRT. The LRT alone has 60 stations. Many of these stations offer great opportunities for shops selling to the 130 million commuters using the trains over a year to go to work or shopping. Already the route has reached Puchong this April and by the end of 2016, it will loop around to Subang. In terms of passenger numbers, some of these stations have daily footfall of more than 40,000. By comparison, this is the same number of shopper visits in a good suburban mall. When completed in 2017, MRT1 is expecting 400,000 commuters daily on its trains. If there are any records to go by, the trains will be well-adopted soon. Granted, the argument is that Klang Valley residents are in love with their cars and most will not want to cramp themselves in trains to go to work. Continued On Page 26

Cover Story

Greener Skies AHEAD N

ils Bohr, the Nobel Prize winning physicist once said that making predictions is hard, especially about the future. That is particularly true in the aviation industry where ‘tomorrow’, in product development terms, is six or seven years away, and is even longer for products featuring innovative technology. So the future we are concerned with now lies somewhere between 2025 and 2030. There are some reasonable predictions we can make for the next 25 years – that continued passenger growth and increasing fuel costs will be key drivers. During the 1990s, analysts rightly predicted that the number of passengers flying around the world would increase at around five per cent per annum. Today, about three billion people fly each year, with over 45 million passengers passing through Kuala Lumpur International Airport alone. Travellers through many airports can use digital technology to find the lowest prices, check in and get to the gates without having to interact with a single human being. By 2032, we can expect to see annual passenger volumes reach five billion – a significant proportion of the world’s population. The majority of the growth will come from so-called emerging nations whose developing middle class with growing disposable income will see air travel as an option for the first time. The rise in passenger numbers will drive growth in the world’s passenger aircraft fleet. On average, this will require aircraft to be larger and significantly more efficient. Fuel will continue to be the single biggest cost driver of aviation – currently global civil aviation consumes about 65 billion gallons of kerosene per year at a cost of around US$200 billion.

Fuel accounts for about half of an airline’s operating costs, and as the price of fuel is so volatile, airlines will make every effort to reduce the risk that comes with such a major component of their operating cost. As airlines drive for ever-improving efficiency and reduced fuel burn, aviation manufacturers will continue to focus on technology for competitive advantage. Some elements of aviation in 2030 will be very recognisable – the “tube and wing” will still be the only design style, kerosene will be the predominant fuel – possibly assisted in some proportion by sustainable biofuels – and the gas turbine will still be the most efficient and energy-dense power solution for aviation. Engine technology delivers an improvement of around one per cent per year, which may not sound much for all the thousands of manhours of effort involved, but it means engines entering service in 2030 will be around 15 to 20 per cent more fuel efficient than today. In 2030 that would mean a saving of US$60 billion by the aviation industry, and the prevention of 200 million tonnes of CO2 being created. Cumulatively, between today and 2030, the savings add up to just shy of half a trillion dollars! In order to succeed, the whole aviation industry must work together, pooling its innovation and applied research in both products and processes. Increasingly fuelefficient engines must play a big part but so too must advances in airframe technology and improved air traffic management and operations. Collaborative teamwork is key. An example of that collaboration is the Airbus A350, an aircraft that will be used by

By Saji Raghavan, Rolls-Royce Malaysia’s major airlines in future, which has as much as 53 per cent of the primary structure – including the fuselage and wing – made of composite materials. The aircraft is powered by the Rolls-Royce Trent XWB aero engine which has set new standards of efficiency, life cycle costs and environmental impact. The Trent XWB design builds on the insights secured by Rolls-Royce from over 60 million hours of Trent family in-service experience. The design includes an optimised internal air system to reduce core air demand and fuel burn; the most efficient compressor system of any Trent engine; and an intelligent engine health monitoring system to support proactive maintenance and minimise operational disruptions. The highly innovative design of the Trent XWB combustor incorporates advanced ceramic coatings. This allows a mixture of air and fuel to be heated to burn at temperatures exceeding 2,000oC, twice the temperature of molten rock. The result is a combustor that delivers extremely low fuel burn and emissions. Such performance comes about as a result of successful investment in R&D to create, patent and protect new technologies. In 2015, we invested £1.2 billion on research and development, two thirds of which had the objective of further improving the environmental performance of our products, in particular reducing emissions. The aviation industry recognises its responsibility to the environment and airlines are expanding and working hard to fulfil their obligations. Working in collaboration, the industry can seek to optimise everything from aircraft and component design, to ‘green fuels’, air traffic management and operational efficiency. Measurement and monitoring have the final word in knowing if goals and standards for environmental responsibility are being achieved… and keeping the industry moving forward in reducing emissions. The results have been encouraging thus far, laying a strong foundation for greener skies ahead!

www.rolls-royce.com

Issue 2 - 2016

Cover Story Continued From Page 24

Road, Rail and... RETAIL A petrol station would be doing well to keep customers for more than 15 minutes. In retail, the longer customers stay in a mall, the more money they are likely to spend. There are more than 2,000 petrol stations in the country. Imagine tying up with them to provide a chain store of some sort. Either way the format is important. Whilst the opportunity for branding and trade is obvious in a mall the difﬁculty is in the rigidity of the shop format, in terms of brand, trade and size. Shops can be as small as a kiosk in a train or petrol station. This makes the entry point a lot easier with less antecedent risks and can therefore be a good

But consider this – the Klang Valley now has a population of 7.5 million. The number of vehicles is 7.2 million. 600,000 cars were sold last year (a bad year), and in 8 years’ time there will be another 6,000,000 cars on the road. It is impossible to accommodate so many cars on the road so it is obvious that we are all going to be forced to use public transport, like it or not. The LRT and MRT are also now serving the afﬂuent parts of PJ and Cheras, with a combined total of 111 km of rail. This is in contrast to the earlier routes which did not reach this side of the Klang Valley. And it is connected to the heart of Bukit Bintang and the Golden Triangle, which means you can go to work and go shopping. The other opportunity is in petrol stations. Records show that people now actually go to petrol stations to buy food and sometimes essentials as well. Converting these

to shoppers would be a relatively easy win. Many stations have eye –popping visitor numbers too. The question is how to keep these customers. The trend is for petrol stations to be great stopovers for more than just ﬁlling up the tank. There is now the chance of getting cash from the ATM, taking a toilet break and of course fast food. And petrol stations are getting smart. They are providing more customer-oriented comfort by co-branding with retailers to create a better stopover experience. In a good mall, the average time spent by a shopper can be as much as 2 hours 40 minutes.

place for a start up. The retail industry is in need of new starts. In fact, both rail and petrol stations can be incubators of new experiments with merchandise or food shops, which may not be possible in the more popular malls which will not take the risk with untried concepts. The other advantage is that smaller format shops are easier to duplicate and this works well with the established operators in a difficult market where scouting for opportunities is like finding a needle in a haystack. There is the other advantage of fair rents and dealing only with one landlord which reduces the process in one go. But ultimately, the branding is equally important and some of these stations offer a good middle income market where the branding works well with these brands. We see that 2016 is a good time to review opportunities and the rail and road retail locations may well be the best strategy for growth in a challenging market. In both cases the products most suited will be grab and go type food in small kiosks or drive-thru restaurants for the larger ones, pharmacies, service counters like shoe repair, book shops, florists, gift shops, essentials and even pop ups for new fashion accessories.

www.savills.com.my 26

Issue 2 - 2016

Cover Story

The Problem With Transport By Dr Abdullahi Ali Mohamed, Assistant Professor, Faculty of Engineering, University of Nottingham Malaysia

ransport is an important aspect of modern life. Travelling, whether short or long distances, expands the horizons of personal development and professional undertakings. This boosts economic activity and allows better interaction of human beings.

People generally prefer their car to any alternative means of transport. This is because they have “a love affair with the car”. The sad truth of the matter is that peoples' lives have changed and adapted to the car, and its associated feeling of mobility and personal freedom.

Unfortunately, these positive aspects are countered by hazards to the environment and human health caused by transport, particularly trafﬁc congestion.

The massive growth in car ownership has led to huge problems relating to congestion and pollution in many areas of the world. Countries with the largest number of registered cars on the road see higher levels of air pollution.

As we all know only too well, trafﬁc congestion occurs when urban road networks can no longer accommodate the volume of trafﬁc trying to use them. It remains a global phenomenon and is an inescapable situation in metropolitan areas across the world, from London to Kuala-Lumpur, from Cairo to Sao Paolo. The result is massive delays, unpredictable travel times, and increased fuel consumption.

Commuters, who are exposed to air pollution, are those riding in non-air-conditioned transport such as jeepneys and motorcycles. Aside from stress, they are also exposed to pollutants that can affect the respiratory system. Road trafﬁc can be labelled the biggest source of some pollutants of the highest concern, including nitrous oxides, benzene and carbon monoxide.

Trains and trams are more efﬁcient and sustainable forms of urban transportation

Public transport eases congestion

A multitude of air contaminants of varying toxicity are produced by road transport. These contaminants originate from the tailpipes of vehicles with internal combustion engines, from other vehicle components (such as brake and clutch linings/pads, tyres, fuel tanks), as well as from road-surface wear and treatment materials. In fact, the World Health Organisation (WHO) says that air pollution is to blame for 3.2 million preventable deaths worldwide every year. The most critical transport problems are often related to urban areas where existing transport systems cannot satisfy the demand of urban mobility. Problems such as air and noise pollution coming private cars have become a serious obstacle to the quality of life and even the health of urban populations. Another issue is the gradually increasing number of registered cars in urban areas which has been linked with a rise in the number of accidents and fatalities, particularly in developing countries. Accidents also account for a significant proportion of recurring delays. As traffic increases, people feel less safe to use the streets. These considerations are increasingly linked with peak mobility expectations, where high energy prices incite a shift towards more efficient and sustainable forms of urban transportation, namely public transportation such as MRT and LRT etc.

www.nottingham.edu.my Many transport problems relate to urban areas where existing systems cannot meet demand

Road usage creates pollution

Issue 2 - 2016

Cover Story

MARKING A Milestone O

ne year ago, a British Airways flight touched down on the tarmac of Kuala Lumpur International Airport, marking the return of BA to Malaysia after a 14-year absence. The flight was met by water salutes and hundreds of guests and media who gathered to welcome the iconic airline to Malaysian shores again. Then in December 2015, British Airways reaffirmed its commitment to travellers from Malaysia by deploying the Boeing 787-9 Dreamliner, the newest and most technologically advanced aircraft in the fleet. British Airways is the first to fly this aircraft type between KL and London; it is also the only airline to offer a four-class configuration on the route.

Technology & Comfort The new First suites on the Dreamliner have been conﬁgured based on feedback from First customers. Iintegrated LED

Mumbai from September. With 42 787s joining the fleet, the aircraft is set to become the mainstay of the airline. Vivian Tan-Loh, British Airways’ Country Manager for Malaysia says, “Malaysia is an important trading partner for the UK. Britain has also long been a favourite destination for many Malaysians – for shopping, visiting historical sites, experiencing culture and study. “Our flights provide more choices for both business and leisure travellers who are looking to visit the UK, Europe and North America. The 787-9 sets new standards in operating efficiency and environmental performance. “I strongly encourage travellers from Malaysia to try out British Airways’ 787-9 as I am confident that once they fly on our 787-9, it will completely change their experience of long-haul travel,” she adds.

Student Travel The UK is also regarded as one of the most prestigious destinations for Malaysians to study. According to the Institute of International Education, the number of students from Malaysia studying in the UK has

mood lighting systems help passengers adjust to different time-zones, helping to minimise jet lag. Lower cabin air pressure allows increased oxygen and moisture levels in the cabin air, which also helps reduce the effects of jet-lag and dry eyes. Larger windows enable passengers to enjoy views of the horizon from every seat. The 787-9 currently ﬂies to Delhi, Abu Dhabi/Muscat and Kuala Lumpur. It will also ﬂy to Tokyo’s Narita International Airport in July, to Shanghai from August and

Issue 2 - 2016

increased by 40 per cent between 2007 and 2014. British Airways continues a longstanding tradition of supporting students from Malaysia with many beneﬁts that cater to their needs.

Tailor-made student tickets include a generous double baggage allowance of up to 46kg for each passenger compared to the normal checked baggage allowance of 23kg; the ﬂexibility to change travel dates at no charge; and an onward connection to one additional city in the UK or Europe at no extra cost, allowing students to arrange a European getaway during term break. Additionally, students can also take advantage of the Fly & Rail Package. After landing at London Heathrow Terminal 5, students who have booked this package can continue their journey to Paddington station on Heathrow Express, and from there to one of the First Great Western train stations, namely Bath, Bristol Parkway, Bristol Temple Meads, Cardiff, Exeter, Plymouth, Oxford, Par, Penzance, St Austell and Swansea. For students who need to make onward connections to any of these 11 destinations within the UK, this offers a seamless and stress-free package.

Award-Winning Terminal London Heathrow Terminal 5 is exclusive to customers of British Airways and BA’s sister airline Iberia. Customers from Malaysia can enjoy stress-free onward connections to other cities in the UK, Europe and the US. This year, Terminal 5 was named by Skytrax as the world’s Best Airport Terminal for the ﬁfth year running. Home to world-class shops and dining facilities, London Heathrow has also once again won the world’s Best Airport Shopping award.

www.ba.com

Cover Story

Urban WHEELS C

urrently, there are an estimated two billion vehicles on the road that are fuelled by petrol or diesel engines, although some innovative developments in the electric and hybrid space are beginning to emerge. However, there is still going to be a requirement for a mixture of energy and vehicle technologies to help meet future demand. Projections from independent organisations such as the International Energy Agency say that traditional engine and fossil fuels will play a critical role in the coming decades. Could ultra-efﬁcient cars like the new Shell concept car - Project M - help address some of the world’s urban transport challenges? It’s a city car that uses a third less energy in its lifetime than a typical city car. It is designed with the kind of attention to weight reduction and aerodynamics found in Formula One™ racing. This ultra-light prototype’s low-cost, lowcarbon construction presents a way to help keep increasingly crowded cities moving, while minimising energy use and emissions. “You could build this car and drive it for around 100,000 kilometres before consuming the same energy it takes to make a typical SUV,” says engineer Bob Mainwaring, Shell’s Technology Manager for Innovation, who is leading the project. Project M is a collaboration between experts Shell, Gordon Murray Design and Geo Technology. The different elements of the car are being designed to complement each other to help enhance its overall efﬁciency. By the middle of this century, 75 percent of the world’s population is expected to live in cities, while the number of cars on the road could double. Cars powered by electricity, low-carbon biofuels or even hydrogen could play a growing role in future road transport.

But much more efﬁcient combustion engines using petrol or diesel are needed to reduce carbon dioxide (CO2) emissions and air pollution in the shorter term.

www.projectm.shell.com

Fast Facts • Top speed of 110km/h – more than enough for a day trip away from the city – performs best at 50-70km/h. • Range: 100km on just 2.6 litres of petrol at a steady 70km/h. • More than 25 percent lower CO2 emissions than typical petrol-powered city and hybrid cars. • Overall weight: 550kg - car body is made with recycled carbon ﬁbre. • Up to 45 percent reduction in energy used in manufacturing compared to a city car • Wing mirrors have been replaced with tiny digital cameras that relay the view of the road behind through screens inside, while new wheelarch covers further reduce drag.

“We wanted to see what kind of an impact we could have if we really pushed the boundaries of what combustion engine cars can do today,” says Mainwaring. The team has worked closely together to co-engineer the car’s body, engine and lubricant to minimise fuel use and CO2 emissions. The result is a concept car that uses significantly less energy throughout every stage of its life. On the inside, Geo Technology improved the efficiency of an engine already found in some city cars that uses a diamond-like carbon coating to help minimise friction, while Shell scientists developed a special lubricant. “The lower weight and aerodynamic improvement has been a significant factor in increasing efficiency. So has the engine lubricant collaboration. By working together we’ve achieved far more than we could have done on our own,” said Matt Brewerton, the lead project design engineer at GMD. By using the smallest, lightest conventional road-car gasoline engine available, to help keep the cost of manufacturing and ownership down, the aim is to create a car that is as responsive and fun to drive as possible.

LOOK!

No Hands?

he once intangible concept of a driverless car is now becoming a reality, and connectivity is already an essential standard for many new car models. The connected car industry, including apps speciﬁcally designed for cars and enhanced navigation, is estimated to grow to nearly US$290 billion by 2020. In 2015, Microsoft, Google and Apple all announced plans for proprietary connected car platforms, bringing mobile phone functionality to the car console. There have been a myriad of major breakthroughs recently, including Tesla’s Autopilot technology and GM’s investment in Lyft. In the very near future, cars should be able to seamlessly interact with the world around us without having to struggle with multiple touch points. Beyond the obvious use cases like native navigational apps and text message alerts, the car could automatically process payment. Visa, Honda and ParkWhiz are already working together to test a mobile payment system that enables consumers to pay for parking and petrol without leaving the car. Uber is also clear in its intentions to utilise driverless cars, and is working with Carnegie Mellon’s robotics programme to accelerate the inevitable.

There have also been a number of developments in safety technology - Tesla’s Autopilot software uses sensors to keep the car within a lane, maintain a safe distance between cars and even change lanes. Volvo’s latest models already use semi-autonomous technology to alert of danger and assist with steering and braking. While the driver’s hands are still required to be on the wheel, as the efﬁcacy of these innovations is proven, a hands-free future is imminent.

Issue 2 - 2016

Cover Story

CARE Without Borders TRAVEL

Future?

hen Henry Ford created the assembly line production system in the early part of the 20th Century he probably never imagined what his invention could mean for the world. He dreamed of making the automobile affordable for the average American - it’s now estimated that the US has over 250 million cars! But, it’s not just in America that the roads are clogged with cars. Closer to home, China is the second nation with the largest number of cars, estimated at well over 80 million. Of course, these are two countries with huge populations, and anyone who has driven in Kuala Lumpur will know that we have our own infrastructure issues - there are simply too many cars on the road. And it’s not just the number of cars on our roads. As air travel becomes more and more affordable, a greater number of us are taking to the skies. The largest growth is being seen in Asia Paciﬁc and the Middle East and current predictions indicate that there will be 3.91 billion passengers by 2017. Just like driving cars, burning jet fuel creates huge amounts of carbon dioxide or

CO2, a major greenhouse gas. It traps the Sun’s energy within our atmosphere, making the planet's average temperature rise (and let’s face it, Malaysia doesn’t need to get any hotter). So, we know that this is a problem, and that this has to change - but what can we do to fix it? At British International School of Kuala Lumpur, it’s possible that many of the students will go on to senior positions of influence, whether that be creating new technology to get people from A to B or writing new laws to protect the environment. So we asked the travel makers of tomorrow, our students, what they thought the future of travel might be. “Teleportation. It is possible! We were taught that particles have already been teleported, it’s just a matter of perfecting the theory.” “Hyperloop Travel. Essentially you are fired through a tube at high speeds. We saw a video that introduced the technology. It’s environmentally friendly, but people aren’t too keen on it at the moment.” “We’ll still have cars, but they will all be electric - that will just be the standard.” “We need to invest more in bio-fuel, at the moment we’re still too reliant on fossil fuel, but it’s running out and we need to start looking for serious alternatives.”

lobalisation and modern technology have dissolved traditional borders. More and more employees work in unfamiliar environments. Employers recognise they have a duty to provide assistance when needed. The good news is: distance is no longer a barrier to medical support and services because technology is there to fill the gap. This includes long-distance clinical care, now made possible with telehealth. Telehealth, or telemedicine as it is also known, covers all health related communications between health professionals and or patients. Certain devices are also used to monitor vital signs and transmit the results. This rapid access has enabled informed diagnosis and treatment decisions despite being hours or days away from the nearest hospital. Telehealth has provided a great step forward in healthcare delivery and International SOS is the first company in the world to be certified in the delivery of Telehealth services.

www.internationalsos.com/ telehealth “I imagine it will be a bit like Back to the Future. We did a project on hover cars last year in Science, so we know it can be done, we just need to work on it some more.” While many of the suggestions may appear to be from a science ﬁction ﬁlm, overwhelmingly, they all recognised the need for greener alternatives.

It’s time to let our future travel makers take over to usher in a new era of travel - one that works in harmony with Mother Nature. 30

Issue 2 - 2016

Previous generations have caused considerable damage, now it’s time to let our future travel makers take over to usher in a new era of travel - one that works in harmony with Mother Nature.

www.britishschool.edu.my

Business Insights

Working SPACES I

magine coming to the office every day and not having your own desk. There’s no place to call your ‘own’, no pictures of your family lining your probably ‘vanilla’ cubicle, and gone is the perceived status that comes with a corner office. Research has shown that this structured [read inflexible] stereotype not only decreases the cost-effectiveness of resources, but can also have a marked negative impact on the overall well-being of the occupants. Sterile environments – and not in the hygienic sense – are stifling creativity.

Lloyd’s Register, the organisation that provides integrity, compliance and specialist risk consulting services, is one such firm that has adopted this type of concept for its new office in Kuala Lumpur, located central to the capital’s business district in the upscale Platinum Park. Employees previously located in three different locations plus technical experts from its LR Senergy business are now co-located in the one new office. The new facility comes in response to demand for Lloyd’s Register’s services across Asia, where clients

A new style of working, initially pioneered by the likes of the Silicon Valley start-ups and tech giants – think brightly coloured bean bags and ‘play’ spaces – has now evolved to a more ‘grown-up’ concept known as activity-based working. This provides employees with an attractively designed multi-functional area comprising a variety of landscapes ranging from conference rooms, to couches, to in-house coffee bars. And the best part is: everyone has free rein of the entire space. Activity-based working is a Dutch-born theory that suggests that employees are happiest and most productive in an environment that allows them to utilise a variety of different spaces based on the task they are performing. Perhaps hashing out plans for a group project with coworkers in the ofﬁce atrium before moving to a ‘quiet zone’ to concentrate on the detail of the project.

“The opening of the new office is a natural outgrowth of the strong Lloyd’s Register customer and partner base we already enjoy in Malaysia. But it also underpins the Group’s confidence in the long-term future of the oil & gas sector despite the current downturn,” says Brian Pye, Vice-President of Business Development at LR Senergy. One of the most significant projects recently completed by LR Senergy was the drilling of two deepwater wells offshore Vietnam on behalf of VietGazProm. LR Senergy provided full wells project management services, for the first time in South East Asia – and the first wells to be drilled in water depths of 1,600m offshore Vietnam. LR Senergy also recently completed an abandonment and decommissioning study offshore Mauritania for Petronas Carigali. The project entailed a full conceptual study for the abandonment of 15 subsea wells in the Chinguetti field.

are investing in technical engineering expertise and costsaving initiatives to further improve business performance onshore and offshore. “The new ofﬁce provides increased capability to house our technical experts and customer support teams, all in the one place,” says Peter Campbell, Country Chief Representative in Malaysia, who is leading the company’s effort to service customers in Malaysia’s energy and marine market. New initiatives include its latest risk-based inspection (RBI) service, which mitigates risk and unplanned downtime in hull integrity management of ﬂoating units, such as FPSO and FLNG vessels as well as onshore infrastructure and equipment.

The LR Senergy team identiﬁed potential savings for the client worth up to $60 million. LR Senergy’s Jakarta team also recently project managed the drilling of an exploration well for M3nrgy in Indonesia. The new ofﬁce is designed to further improve the company’s own operating costs which in turn, will be offset in terms of savings to clients.

www.lrsenergy.org Issue 2 - 2016

Business Insights

Property PIE Before investing in Malaysian real estate, it is worth gaining a better understanding of the various legal restrictions which may be applicable. Yap Hui Lu, Partner at Abdullah Chan & Co, explains. First Rule Most important of all, have a search conducted on the title to the target land at the relevant land ofﬁce where the title is registered. The search results will provide information on, among other things: •

the registered owner of the land;

•

the tenure of the holding ie freehold/ perpetual or leasehold - limited to the term speciﬁed in the individual title deed, generally 60 or 99 years;

•

the category of land use: Malaysian real property is generally categorised as being for agricultural, industrial or building (commercial or residential) use;

•

whether the land is Malay reserved;

•

whether there are any registered encumbrances, such as charges, caveats, liens, or other third party interests like easements, leases or endorsed tenancies; and

•

whether there are any express conditions of title - generally regarding its use, or restrictions in interest - for example whether State Authority consent for any sale, transfer, charge, lease or dealing with the land is required.

Legal Landscape Peninsular Malaysia real property dealings are subject to the relevant land rules and Malay reservation enactments for the respective State, as well as the provisions of the National Land Code 1965 (NLC). The Torrens system of land registration is embodied in the NLC and applicable to real properties throughout the Peninsula. Anyone who has been registered with the relevant land ofﬁce/registry as a proprietor of Malaysian real property enjoys immediate, indefeasible title to the same. Exceptions are where fraud or misrepresentation has been perpetrated, the registration was obtained by forgery or by means of an insufﬁcient or void instrument, or the title or interest was unlawfully acquired in the purported exercise of any power or authority. Ownership of Malaysian real property is generally evidenced by an individual title document issued by the relevant land of-

Issue 2 - 2016

ﬁce for landed real properties, or by strata titles for individual parcels in subdivided, stratiﬁed buildings.

•

Multimedia Super Corridor (MSC) companies – acquisition of properties in the MSC area to be used for their operational activities or employees’ residence

Under the NLC, save for industrial land, State Authority consent is required for the acquisition of Malaysian real property by non-citizens or foreign companies. This includes locally incorporated companies with 50 percent or more of the voting shares held by non-citizen(s) and/or by another foreign company.

•

Acquisition of industrial land by manufacturing companies

•

Acquisition of properties in regional development corridor areas or by companies with special status eg International Procurement Centres, Operational HQ, Representative/Regional Ofﬁces, Labuan entities, Bio-Nexus status.

State Authority approval is also required for a non-citizen or foreign company to bid in a court-ordered auction where the land is subject to the category “agriculture” or “building” or to any condition requiring it to be used for agricultural or building purposes. Residential buildings also fall within the “building” category.

Prior approval of the EPU will however be required where, for instance, the proposed acquisition involves real property valued at RM20 million or more that results in a dilution of Bumiputera interests and/or those of a government agency. It also applies where there is a change of control of the company owned by Bumiputera interests and/or government agency having more than 50 percent of its total assets.

Obtaining Consent

It may take around three months from the application date to obtain consent, which is generally granted as a matter of course, provided all documents are in order. In addition, the price of the residential property in question must meet the minimum value required by the relevant State. For example, at least RM2 million in Selangor, at least RM1 million in the Federal Territories of Kuala Lumpur and Putrajaya, at least RM2 million in Penang for landed properties and a minimum of RM1 million for stratiﬁed properties, and at least RM1 million in Johor. The Malaysia My Second Home programme does allow lower minimum values for certain States. In addition, there is the RM1 million minimum value threshold set by the Economic Planning Unit (EPU) of the Prime Minister’s Department. The transfer of Malaysian real property to foreigners based on family ties such as immediate family members, blood ties or adopted children, or as part of a will and court order, does not require EPU approval. Other exempted transactions include: •

Residential units under Malaysia My Second Home (subject to the minimum property value for the respective State)

Malay Reservations Certain land is designated as Malay reserved under the Malay Reservations Enactment (FMS Cap. 142), as well as being protected in the Constitution. If, for example, you have your eye on a nice property but that happens to be sited on Malay reserved or native land, then be forewarned - foreign interests, as well as non-Bumiputera and non-native residents, are not allowed to acquire the land or properties built on them, irrespective of value. Instruments which are utilised to enable foreign, non-Bumiputera or non-native residents to indirectly own such lands are not without real risks. This is especially true in States where trust arrangements, powers of attorney and/or dealings which are contrary to the State’s Malay reservation enactment are expressly stated as being null and void, unenforceable, or limited in effect. Such approval requirements may seem daunting, but are par for the course for real property transactions in Malaysia. However, with careful selection, a little planning and professional advice, it is achievable.

www.abdullahchan.my

Business Insights

In Conversation:

ASEAN Insiders

ho knew sitting down with a band of lawyers for two hours could be such fun, what with jokes crafted about the nature of their profession and the reputation which precedes them. If the recent co-hosted workshop between BMCC and ZICO Law was anything to go by, it would be unjust to say that lawyers do not have a sense of humour, albeit esoteric at times, yet universally understood by the uninitiated to legal jargon.

SINGAPORE: Despite its limited land mass and small population, large purchasing power and transparent regimented policies, the island state is without doubt a regional destination for large international conglomerates.

The gathering saw BMCC members sat across from a convivial panel of the ﬁve experienced lawyers cum speakers who addressed the theme: “Legal Benchmarking and Updates in ASEAN Markets: Vietnam, Indonesia, Thailand, Singapore and Cambodia”.

ZICO Law will be aiming to organise another workshop with the BMCC in the future. Take advantage of updated insights from reputable ASEAN insiders, and look out for the next event invitation.

THE PANEL •

David Lim - Vietnam

•

Leoni Silitonga - Indonesia

•

Threenuch “Connie” Bunruangtaworn - Thailand

•

Gregory Chan - Singapore

•

Daron Wong - Cambodia

into Southeast Asia, as well as expatriates looking to own businesses and properties in a new environment. UK business in particular appears to be most welcomed by these Asian countries to bring in investment and collaborative prospectives.

ZICO Law is a network of leading independent local Law ﬁrms focused on the ASEAN region. With a presence in 15 cities in eight out of ten ASEAN countries, its 300 lawyers enable clients to enjoy value-added legal

Truly ASEAN Insiders, by origin and passion, these individuals, each of them bearing remarkable resumés, brought their regional expertise at local ground level.

Rounding off the workshop, the panelists were given a ﬁnal chance to describe why foreign investors should market in these ASEAN countries.

These esteemed panelists shared insights on the intricacies, complexities and idiosyncrasies of the legal regulations, governmental policies and cultural landscapes of the countries they represent. The session was moderated by Gilbert Gan executive partner of Zaid Ibrahim & Co, which is part of the ZICO Law network.

CAMBODIA: An open market, with no re-

Led by experienced lawyers across

strictions on ownership, aside from land. This allows foreigners to open and own their own SMEs and enterprises with limited policy hindrances from the government.

ASEAN, the Group pulls together its

THAILAND: Surrounded by Myanmar and

intellectual property, projects, in-

Laos up north, Vietnam and Cambodia in the east and Malaysia down south is regarded as the hub of ASEAN. The centrality of Thailand provides geographical beneﬁts to facilitate and mediate import and export trade services. The low living and labour costs are an added beneﬁt.

frastructure and utilities, and gov-

VIETNAM: Has witnessed a surge in tour-

denced by numerous awards and top-

ism and hospitality sectors thanks to the inherent hardworking cultures of the Vietnamese and political stability.

tier rankings by legal publications,

INDONESIA: While strict in certain poli-

ally. ZICO Law has an active presence

cies to maintain national sovereignty, offers overwhelming investment opportunities due to the geographic land mass with its many islands that is always an attraction for tourism and hotel developments.

in Cambodia, Indonesia, Laos, Thai-

The panel addressed a range of topics including investment incentives, employment & immigration, dealing with government & authorities, as well as signiﬁcant recent legal developments and cases. The body of the discussion highlighted a growing trend towards a relaxation of restrictions and trade regulations amongst ASEAN countries that is indicative for a consensual ideal to foster better trade relations between the countries and international corporations seeking to break through into ASEAN market. This is encouraging news for foreign markets and expatriates seeking to venture

services by leveraging on a combination of local expertise and regional insights.

in-depth knowledge of banking and ﬁnance, capital markets, corporate and commercial, dispute resolution,

ernment advisory, to cater for the increasing demand for cross-border legal advice. Continued on Page 24 ZICO Law is associated with innovative, high quality services, as evi-

regionally and internationally for its member ﬁrms and lawyers individu-

land, Malaysia, Myanmar, Singapore and Vietnam.

www.zicolaw.com

Issue 2 - 2016

Business Insights

Planning For THE PEAK By Matthew Eckford Director of International Entity Management TMF Group

use of a global corporate database plays a key role in recognising and planning for these busy periods.

esource management has become one of the buzzword expressions of the commercial world, but for corporate secretarial teams, forward planning plays an essential role in navigating peak periods. Ongoing regulatory change is occurring at a time when corporate cost-cutting is forcing company secretaries to run a tight ship. Add in the growing demand for accurate, real-time global information and many inhouse compliance teams face a signiﬁcant year-round workload. Nevertheless, there are inevitably certain times on the compliance calendar when that workload increases. During these periods, the risk of error or oversight is magniﬁed – more so if resources are not carefully managed. The bottom line is that forward planning of company secretarial activities is critical to managing busy periods.

Effective deployment of resources Planning ahead offers multiple benefits as limited resources can be more effectively deployed. All compliance responsibilities can be satisfied, and systems can be implemented or activated to ensure nothing is overlooked. The first step in achieving effective forward planning is recognising peak periods of the calendar. Some dates are more predictable than others. The company reporting season, preparation and lodgement dates of various reports; board meetings; and scheduled shareholder communications are typically known well in advance. Alongside traditional annual governance calendars prepared by the Secretariat, the

Issue 2 - 2016

Maintaining an accurate repository of corporate ﬁling deadlines for all legal entities promotes a proactive approach to planning resource allocation. A signiﬁcant percentage of these deadlines relate to statutory accounts submissions and the need to commence the approval process often months in advance of the actual submission deadline.

Some busy periods are less predictable Along with identiﬁable dates, other periods of intense activity are less predictable. This may be the result of domestic activities such as takeovers, mergers or acquisitions or global activities such as expansion into new jurisdictions. Legislative change can create unforeseen periods of peak activity too. Last year in the United Kingdom for instance, the Small Business, Enterprise and Employment Act 2015 came into force, introducing a new requirement for companies to maintain a register of beneﬁcial ownership. Legislative change of this nature, which may increase corporate secretarial complexity, often means that resources are unavoidably diverted away from compliance activities, even if only for a short period as new demands are addressed.

Multinationals face additional challenges When a corporate has international subsidiaries forward planning for busy periods becomes especially critical. Different jurisdictions are almost certain to have diverse reporting requirements, possibly different ﬁnancial year ends from head ofﬁce. In fact, the greater the global reach of a corporation, the more challenging it can be to plan ahead for corporate secretarial activities across the entire geographic footprint.

“During peak periods on the compliance calendar, the risk of error or oversight is magniﬁed – more so if resources are not carefully managed.”

Overlaying all this, is the fact that corporate secretarial teams don’t just manage compliance needs. They are more broadly charged with responsibility for providing the board with expert governance advice. Planning for company secretarial requirements during peak periods will streamline workﬂow to allow more essential ‘value add’ activities to be undertaken.

Identify the need for professional support The process of planning ahead for busy periods doesn’t just allow for better use of in-house resources. It also ﬂags up those times when in-house staff will be thinly stretched. At these times, using an external services provider for part of the corporate secretarial function can be a sound commercial strategy. The upside of engaging experienced, professionals to manage company secretarial matters typically outweighs the costs, particularly during peak periods when the potential for error may be at its greatest. Indeed, given that company secretaries are tasked with marshalling every available resource to support the board, an external services provider with a proven track record can make good business sense. It means time-sensitive tasks are taken care of while the in-house team focuses on critical projects or initiatives. For multi-national corporations, the process of planning for, and managing peak periods, can be further enhanced by using a single global provider of corporate secretarial services rather than multiple disparate professional service ﬁrms. It’s an option that centralises communication channels and streamlines the process of meeting compliance needs while reducing risk. During peak times, those advantages are extremely compelling. For more details, call T: +603 2382 4288 E: info.apac@tmf-group.com

www.tmf-group.com

Business Insights

Location LOCATION P

eople move for many different reasons: work, lifestyle or to try something new and exciting. However, moving overseas can be a very daunting experience. Often you’re moving to a location you have never visited before, and depending on where you move to there could be several barriers, from communication to cultural. Here are our top 10 destinations.

Australia

[Below] A culturally diverse landscape and the sixth largest country on the planet, Australia affords a great degree of choice when it comes to anyone seeking a new place to call home. Offering the perfect setting for a work-life balance, Australia offers many employment opportunities and a lively social scene.

Switzerland For the career minded, Switzerland is said to provide excellent job security and career progression. Centrally located amongst many other popular European countries, it also serves as a convenient base for those who like to travel.

Taiwan Taiwan ranks highly for anyone seeking a change of scene with a lively social life. Anyone looking for a balance of city and mountains this is the country.

United Arab Emirates

[Above right] Boasting a strong economy and high salaries, this destination should be top of the list for anyone looking to obtain an increase in their annual salary.

a new place. From beaches, to mountains and plenty of wine tasting there’s an adventure for everyone.

Sweden For those looking for the ideal setting to raise a family, Sweden offers a safe and nurturing environment. An excellent education system and the beautiful outdoors make it an easy country to adapt to.

Canada

Singapore

Bahrain

[Top] Canadians are renowned for creating a warm and approachable environment that would make anyone feel welcome. It has cities, beaches, mountains aplenty and of course plenty of snow for skiing. If you’re looking to cut down on living costs, then Bahrain may be the place for you. Many who moved here from Singapore found that they were able to save more in comparison.

Germany B Besides offering some of the world’s ﬁnest beers, Germany also affords top of the line b healthcare and career progression. Cenh ttrally located in Europe, it’s a great base ffor travel.

New Zealand N I you’re looking for training wheels when it If ccomes to moving far from home, New Zealland ranks highly in regards to adjusting to

[Below] Singapore residents might not be so quick to leave home if they were to know that Singapore itself is typically ranked one of the best destinations to live, due to its high quality of life.

Regardless of where you are relocating, there are many factors to consider when moving. How do you move your pets? What do you do with valuables? How will this affect the children? Who can help with visas and immigration? Allied Pickfords is able to help answer all of these questions and many more, ensuring a seamless, stress-free move. Allied Pickfords can take care of your every requirement, and you can be safe in the knowledge that your move will be dealt with by a professional customer service team whose members are with you every step of the way. Allied Pickfords will seamlessly pack up your house and welcome you to your new home.

www.alliedpickfords.com.my Issue 2 - 2016

BMCC New Members

A warm welcome to our new members! Bailey Balfour Asia Pacific Pte Ltd Organisation development and training consultancy based in Singapore, specialising in executive coaching, diversity and inclusion, leadership development and board and team development. Established in the UK in 2001, has grown to provide consulting services globally, working in Asia Pacific, Middle East, Europe and UK. Training programmes and coaching packages designed specifically for today’s workplace, which spans multiple countries, cultures and time zones, with blended learning solutions that support a range of delivery methods. Clients include financial services and banking, legal and professional services, technology services, healthcare, pharmaceuticals, construction and engineering and start-ups. 583 Orchard Road, #06-01 Forum, Singapore 238884. Tel: +65 8591 0358 Email: jean@baileybalfour.com www.baileybalfour.com.sg Jean Balfour - Managing Director

NES Global Talent Established in 1978, providing complete range of contract and permanent talent solutions to Oil & Gas, Power, Construction & Infrastructure, Life Sciences, Manufacturing and IT sectors worldwide. Over 45 offices in 28 countries, employing over 500 discipline-specific consultants, to provide clients with engineering and technical expertise required, wherever and whenever it is needed. Established in Malaysia for 12 years with offices in Kuala Lumpur, Pengerang, Lumut and Miri. Petronas-licensed to provide manpower. License Number - L-901542-V. Able to also fully support contractors while on assignment visas and work permits, benefits packages and accommodation. Suite 15-1, 15th Floor Menara Weld, 76 Jalan Raja Chulan, 50200 KL Tel: +603 2381 4190 Fax: +603 2178 4697 Mob: +6 012 323 7358 Email: paul.robinson@nesglobaltalent.com www.nesglobaltalent.com Paul Robinson - Operations Manager – Malaysia, Myanmar & Brunei

Messrs. Thomazios, Khoo & Paulraj Formed in.2015 by partners Cassandra Thomazios, Calvin Khoo and James Joshua Paulraj. Work ranges from drafting, negotiating and structuring corporate matters (including corporate advisory and land matters) to civil litigation in areas of banking, libel and slander, employment/industrial law, contract law, commercial disputes, land matters, aviation, medical negligence and more. D-05-03, Plaza Kelana Jaya, Jalan SS7/13A, Kelana Jaya, 47301 Petaling Jaya, Selangor Darul Ehsan. Tel: +603 7865 8071 Fax: +603 7865 8072 Email: inquiry@thomkhoopaul.com www.thomazioskhoopaulraj.com Cassandra Thomazios - Partner

Golden Salamat Resources Sdn Bhd Managed by Doctors’ and Business managers’ collaborative expertise and knowledge, GSR is a certified Partner of Accreditation Canada International (ACI) in South East Asia. ACI is a non-profit, independent organisation that provides health authorities and organisations with external peer review to assess the quality of their services based on international standards of excellence. ACI is one of the founders of ISQua. GSR clients include governments, regional health authorities, hospitals, and community-based programmes and services across public and private sectors around the world. Providing Direct International Accreditation, Healthcare Educational and Advisory services, designed to help improve quality, accessibility and efficiency of healthcare services and systems to reach to internationally recognised levels. Level 15, Menara Darussalam, 12, Jalan Pinang, 50450 Kuala Lumpur. Tel: +603 2178 6372 Fax: +603 2178 6301 Email: contact@goldensalamat.com www.goldensalamat.com

Issue 2 - 2016

Dr. Bahram Vahdani Managing Director

BMCC New Members IMarEST - Institute of Marine Engineering, Science & Technology international membership body and learned society for all marine professionals with worldwide membership of around 16,000 based in over 128 countries. First Institute to bring together marine engineers, scientists and technologists into one international multi-disciplinary professional body. Promotes scientific development of marine engineering, science and technology, providing opportunities for exchange of ideas and practices and upholding status, standards and expertise of marine professionals worldwide. Growing network of Marine Partners who benefit from a tailored programme to support each global organisation’s specific requirements. Packages for companies to support Initial and Continuous Professional Development, for local, national, or international promotional programmes, providing specialised recruitment solutions, accrediting training courses, bespoke networking events and providing access to IMarEST Virtual Library - one of the largest online knowledge resources. 141 Middle Road, #06-07 GSM Building, Singapore 188976. Tel: +65 6472 0096 Email: david.kelly@imarest.org www.imarest.org

David Kelly Director of Asia Paciﬁc

Airswift International workforce solutions provider with headquarters in Manchester, UK, operating in the energy, process and infrastructure industries. Over 35 years’ experience in the business, a total of 57 operating locations, employing more than 800 people globally and managing a deployed workforce exceeding 6,000 worldwide. Operating in Malaysia since 2003 (Petronas Licence No. L-525976-A), delivering support to a wide range of local and global SMEs and multi-nationals through a suite of workforce solutions, including acquisition of talent, global mobility, managed solutions and consultancy. Suite 17-12, Level 17 G-Tower, 199 Jalan Tun Razak, 50400 Kuala Lumpur. Tel: + 603 2161 1790 Fax: +603 2161 1802 Email: Adam.Dilibero@airswift.com www.airswift.com Adam Dilibero - Business Development

Duxton Consulting Group Using psychology to create business opportunity, undertakes unique research based on morphological psychology to uncover the consumer needs and motivations that drive behaviour. This identiﬁes the key factors at play when choosing a brand or service, and to understand how and why these decisions are made. Duxton uses these insights to develop business and communications strategies, brand positioning and category management, and to innovate new products, services and processes. Helps companies with internal brand alignment and staff motivation by understanding psychological needs of employees. Jennifer Chan - Manager Malaysia Tel: +6012 2070578 Email: jennifer.chan@duxtonconsulting.com Laurenz Koehler - Managing Partner [pictured] Tel: +65 8288 8152 Email: laurenz.koehler@duxtonconsulting.com www.duxtonconsulting.com

Varsity Education Experts in UK admissions, specialises in helping talented students prepare for and access the top institutions in the UK such as Oxford and Cambridge. Offers residential immersive preparation courses in Oxford and Cambridge led by Oxbridge academics, providing provide insight into undergraduate life at Oxbridge and equip students with the necessary skills to access top universities. Belsyre Court, 57 Woodstock Road, Oxford, OX2 6HJ. Tel: +44 1865 807 140 Email: info@varsity-education.ac www.varsity-education.ac James Gold - Founder

Not a member yet? Find out more about one of the most dynamic and connected business networks around! Check out the beneﬁts of our different membership categories! Call 03 2164 1784 or visit www.bmcc.org.my now! Issue 2 - 2016

Members’ News Abba Extravaganza Takes Audiences Back In Time Raises Funds For Foundation Audiences were taken back in time with a rousing rendition of ABBA hits during the recent GIMME GIMME ABBA extravaganza performed by acclaimed West End artistes and session singers. The show included all the greatest Abba hits, including Waterloo, Dancing Queen, Mamma Mia, Voulez-Vous, Gimme! Gimme! Gimme!, Take a Chance on Me, Fernando and many more, The KL series of concerts included a Royal Charity Gala Concert organised by Seri Panglima Sdn Bhd and Homme Productions in support of Yayasan Sultanah Bahiyah [YSB]. Founded in 1996, YSB is actively involved in all kinds of community activities that support single mothers and orphanage homes. Homme Productions is a theatre production company incorporated in Malaysia in 2010 and is internationally focused with a strong British connection. In 2012, it tied up with British Theatre Playhouse and Worldwide Entertainment Ltd, in order to work closely with established British artistes. The company has produced and presented a series of successful British productions in Malaysia including Yes Prime Minister, Leo Sayer In Concert, No Sex Please We’re British and The Deﬁnitive Rat Pack. www.homme.com.my

Convention Centre Certified Trainer With Accreditation from HRDF Kuala Lumpur Convention Centre is now sanctioned to provide training to external participants following receipt of the ‘Certified Training Provider’ accreditation from the Malaysian Ministry of Human Resources’ Human Resource Development Fund* (HRDF). Rohizat Baharum, the Centre’s Director of Human Resource, said, “This certification fits perfectly with our vision of being a knowledge centre and training provider for local industry players and stakeholders, to help raise the level of service delivery and grow Malaysia’s business events footprint globally. We look forward to sharing our training experience and knowhow, garnered from over a decade of operations, to help boost Malaysia’s competitiveness against regional and international competition.” The certification process took three months and involved an online submission and on-site audit by HRDF officers. The facility also meets the minimum requirement of one HRDF certified trainer, with four certified trainers already on board. www.klccconventioncentre.com

Qatar Airways Opens 4th UK Gateway With Flights to Birmingham Qatar Airways recently opened its fourth UK gateway, with direct flights between Doha and Birmingham, connecting the city with more than 150 destinations worldwide. Birmingham joins London Heathrow, Manchester and Edinburgh, Qatar Airways’ other three UK gateways. There are now 73 flights per week to the UK, with 42 per week to London Heathrow, 16 to Manchester, 7 to Edinburgh and 8 to Birmingham, from its state-of-the-art hub, Hamad International Airport. Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker said: “We are delighted to commence service to Birmingham, our fourth UK gateway. This vibrant and economically powerful region represents an important addition to our worldwide network. Passengers now have access to more than 150 global destinations, accessed via 73 flights per week from the UK, facilitated by smooth transfers through our home and hub, Hamad International Airport.” The Birmingham route is operated by a Boeing 787 Dreamliner in a two-cabin configuration, with 22 seats in Business Class and 232 in Economy. All seats include individual TV screens, offering the latest inflight entertainment, complemented by the airline’s award-winning service. In Business Class every seat has direct aisle access, a fully-flat bed and a large work area. Passengers can stay connected with a Wi-Fi option, available throughout the aircraft.

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Members’ News Alice Smith School Becomes First In Malaysia To Receive Top Quality Kitemark The Alice Smith School has been awarded one of the most prestigious kitemarks of quality by The Independent Association of Prep Schools (IAPS). This follows the approval of of Mrs Kate Fuller, Principal at Alice Smith Primary Campus, to be accepted as a member of IAPS. IAPS is one of the world’s most prestigious school associations, representing world-class head teachers, who lead world-class schools. It exists to support head teachers as they strive to deliver excellent standards of education and care to their pupils.

Digital Sales & Service Tool Set To Transform Banking Experience Malaysia has become one of the ﬁrst six markets to go live with Standard Chartered Bank’s Retail Workbench, following the global launch of its award-winning digital tablet-based sales & service tool.

Alice Smith is one of only 46 schools outside of the UK to be accepted into IAPS. All IAPS schools have to meet strict standards before the Head can be accredited into membership, and they must continue to pass regular inspections. Alice Smith is the fifth school to meet the criteria in Asia and is the first and only school to be accepted in Malaysia, marking another significant milestone for the School in its 70th Anniversary year. IAPS has international links and these allow members to share best practice and to take advantage of continuing professional development courses. All of this benefits both pupils and teachers alike. www.alice-smith.edu.my

Seamlessly integrated with the Bank’s back-end infrastructure, Retail Workbench allows sales staff to open an account for a client in any location. Banking services such as loan approvals and credit card issuance will be fast, simple and completely paperless. With a fully digital device, client requests can be processed from anywhere, with the data moving straight through to the Bank’s back-end operations in near real-time. Clients only need to give their personal data to the bank once to create a proﬁle that can be accessed for future purchases. Sales staff use the iPad’s built-in camera to securely snap a picture of identity documents. The launch marks a milestone in Standard Chartered’s strategy of using digital technology, which last year announced it will invest US$1.5bn in technology over three years. www.sc.com

DoubleTree by Hilton Kuala Lumpur Scoops Top Accolades DoubleTree by Hilton Kuala Lumpur has collected a number of prestigious accolades recently. At the Grand Final of the Regional F&B Masters, contestants from 20 countries were required to demonstrate their skill, innovation and ﬂair while paying homage to the gastronomic heritage of the cities they represent. Chef Abdul Halim Jahari of DoubleTree by Hilton Kuala Lumpur took home the award for Culinary Cup Winner. In other news, DoubleTree by Hilton KL was named as a winner in the hotel group’s global brand awards picking up the prestigious Social Media Leadership Award for Sales and Marketing. The Hotel received the award based on the property that is most engaged with its guests via social media. “We are thrilled to have received this honour,” said Jean-Sebastien Kling, General Manager of the Hotel. “We believe in the importance of engaging and interacting with guests through social media in this ever-changing fast growing community.” www.hilton.com

Want to see your business news featured? Send with accompanying image to editor@bmcc.org.my Issue 2 - 2016

Members’ News Marlborough College Malaysia Expands

Sales Manager

With New Prep School Facilities

For TenOnCall

Marlborough College Malaysia is expanding its facilities in Iskandar, Johor, after first opening its doors to students in 2012. The expansion involves a new Preparatory School building for pupils aged 9-13 years old and will be located on the 90-acre Marlborough campus near the Tuas crossing to Singapore. The new building will include 30 classrooms, a drama hall, library, specialist learning support department, science, art and design suites, dining facilities and dedicated music rooms. An additional air-conditioned sports hall will be built specifically for the Preparatory School pupils along with two more boarding houses. The new building has been designed by the noted school architect Stefan Jacobek of HOK London and will be ready in time for opening in September 2017. Robert B Pick, Master of Marlborough College Malaysia, says: “We are delighted with the impact that Marlborough has made on the educational landscape in Malaysia and South East Asia. Our Phase 2 development will allow the Senior School to expand into the area currently occupied by the Upper Prep pupils and enhance our provision for delivering a high quality education. These new facilities will also assist in maintaining the terrific sporting and academic achievements to date of the Prep and Senior School pupils.” The School is on target to grow from its current population of 820 pupils to 1,250 in the next five to six years. www.marlboroughcollege.my

Kuala Lumpur Convention Centre has promoted Ms. Kwok Wai Kay to Sales Manager – TenOnCall from her previous role as Assistant Event Coordination Manager. In her new role, Wai Kay will be responsible for implementing a plan that will maximise occupancy, revenue and yield for the Centre’s TenOnCall offering. Holding a Bachelor of Hospitality & Tourism Management, Wai Kay joined the Centre’s pre-opening team in 2005 as an Event Coordinator before being appointed Assistant Event Coordination Manager in 2013. The award-winning TenOnCall offering comprises 10 flexible meeting spaces offering a differentiated meeting experience for short-lead bookings or just-intime meetings, where clients can walk in, select their pre-set room configuration and execute a same-day meeting for 15 to 150 persons. TenOnCall’s all-inclusive full and half-day meeting packages include WiFi access, use of AV equipment and technician on standby, plus LCD signage at the entrance foyer. Its signature all-day dining concept including free-flow lifestyle cuisine and beverage throughout, is also part of the offering.

Harry Potter Experience Coming Courtesy of Milestone Production

Crown Appoints New Division Manager For Malaysia Crown Relocations Malaysia has confirmed the appointment of Henry Tattersfield as Division Manager, based in Kuala Lumpur. After joining Crown in 2002, Henry has worked in Residential Sales Consultant and more recently Sales Manager roles. As a Division Manager, Henry will primarily focus on relocation operations and will work closely with Crown’s Relocations Operations team. “Henry’s promotion will help keep us at the forefront of relocation business,” said Leon Hulme, Managing Director of Crown Malaysia. “We are confident he’s the right person for the job.” Commenting on his new position, Henry said, “I am delighted to be assuming this new role of responsibility for our relocation and fine art businesses and look forward to taking us further in 2016. We have a great team in KL - all of whom are proud to be associated with the Crown name and history.’’ www.crownrelo.com/malaysia

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Potterheads can experience magic onstage in full theatrical effect as event and entertainment specialist Milestone Production brings the magical world of Harry Potter to life, here in Kuala Lumpur. Based on J.K Rowling’s bestselling series of the globally successful Harry Potter stories, Potted Potter - The Unauthorized Harry Experience takes on the ultimate challenge of condensing all seven Harry Potter books, including to a real life game of Quidditch, into a fun-ﬁlled stage production. This Olivier-nominated production was created by two-time Olivier Award-nominated actors Daniel Clarkson and Jefferson Turner. Other shows this dynamic duo have produced include Potted Pirates, Potted Panto and the very recent Potted Sherlock. Hailed as a ‘crowd-pleaser’ by the Guardian London, Potted Potter has appeared as the Critics’ choice of the New York Times and Time Out London. On at Kuala Lumpur Performing Arts Centre (klpac) from 2-5 June. www.milestone-production.com

Members’ News ‘United Nations’ Experience Arms GIS Students With Key Skills

“Preparing for KLMUN has taught me the importance of communication and organisation. Without these two skills, one will ﬁnd it extremely challenging to coordinate such a big event,” said KLMUN Secretary-General Ong Ching Han. “I have learned that it is very important in a team situation to allow people to work with their strengths, because when they are comfortable and happy, all jobs turn out to be 100 percent better,” said Secretary-General Somila Khanna.

Garden International School (GIS) recently hosted the eighth Kuala Lumpur Model United Nations (KLMUN), this year involving a total of 245 students from 19 international schools around the region. KLMUN aims to be a simulation of the United Nations to encourage students to engage in intense debates and lobbying in a constructive environment and so create innovative and feasible solutions as plans of action.

In other news, GIS has been awarded the Innovative Learning Program Award by 21st Century Learning for its implementation of innovative learning. Beating entries from 26 countries, GIS is the only school in Malaysia to receive the Global Innovation Awards 2016 which recognise those who demonstrate exemplary values and best practice in learning and teaching in 21st Century schools. “We are very honoured to have received this prestigious award. The Large Scale Enquiry Program has grown and developed over the past four years and is something of which we are very proud. It provides wonderful experiences for our students and staff whilst acting as a driver of innovative pedagogy and the effective use of technology for teaching,” says James Wellings, Director of Innovative Learning who has led the design and construction of the program.

The three-day conference provided a robust platform for delegates to debate on imminent issues and global current affairs that inﬂuence or affect their daily lives in the community. Issues covered ranged from “the question of ensuring the deﬁnitive accessibility of clean water in areas that experience water scarcity and contamination” in the human rights committee, to “the practicality of drone use in military warfare” in the disarmament and international security committee. Commission topics were pre-selected by the KLMUN secretariat team led by GIS students Somila Khanna and Ong Ching Han. “Many debaters showed true passion and driving force in order to solve the problems of their respective committees,” said Sophia Lee, a member of the Secretariat.

www.gardenschool.edu.my

Standard Chartered Foundation Donates RM50K To Convert Bus Into Mini Library Standard Chartered Foundation (SCF), the charity arm of Standard Chartered Bank Malaysia donated RM50,000 to Sekolah Kebangsaan Jalan Datuk Palembang, Melaka, to convert and refurbish a used bus Mel into a mini library for the school. The Th mini library, the ﬁrst of its kind in the State, was handed over to the school’s St headmaster, Tuan Haji Yaacob Othman in a he cceremony witnessed by Education Minister YB Dato’ Seri Mahdzir Khalid and the Chief Y Minister of Melaka, Datuk Seri Ir. Hj. Idris bin Hj. Haron. Nimmi Kamal, Country Head of Corporate Affairs, Standard Chartered Bank Malaysia said: “Standard Chartered Mathe importance of education to the lolaysia has long recognised recogni cal community. Financing this project facilitates the deeper education of young minds and prepares them with a foundation for academic excellence. “We are conﬁdent that the library will see an improvement in visitation rate once it is fully operational.” www.sc.com

Issue 2 - 2016

Members’ News

Recharging Retail With DATA T

echnology is transforming the retail industry, opening up a world of possibilities for brands across the globe. This year, it was the smartphone that took centrestage in the retail space. The fact that consumers have the Internet at their ﬁngertips when they’re in-store has forced retailers to consider how to seamlessly bring together their customers’ online and ofﬂine experiences. This connected customer journey and the opportunities it presents for both retailers and consumers was just one of the four streams discussed at the inaugural Retail Recharged event held in London recently.

The always-connected customer demands convenience and instant gratification when it comes to interacting with brands, presenting a significant challenge but also a huge opportunity for retailers. Yes, there’s the hurdle of ensuring your brand is consistent across numerous touchpoints, but tools such as app-based loyalty programmes – like the one recently rolled out by Harvey Nichols – also enable retailers to access real-time data on customer purchases. The customer benefits from getting offers and discounts delivered directly to their phone and retailers gain a more in-depth understanding of their customers’ likes, dislikes, purchasing habits and more, enabling them to personalise the customer experience and interact with consumers in far more relevant and engaging ways. The transformative power of data in the retail industry was one of the event’s core themes. In his keynote, “Using digital to bring the customer closer to the brand”, Simon Calver, Chairman of Moo.com and A Suit that Fits, highlighted the importance of data for today’s retailers when he said: “Every retailer should be hiring data scientists.”

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Whether it’s data gathered from location analytics and performance platforms, such as Viewsy, app-based loyalty programmes, in-store reward cards, beacons, social media, or other channels, there’s a wealth of customer data now available to retailers that can provide them with a competitive edge. By successfully analysing this rich pool of information, companies can gain a huge amount of insight into what makes their target audiences tick. All of a sudden, you have a window into buying patterns, sentiments towards your brand, footfall and conversion, the effectiveness of your property strategy, the impact of your marketing campaigns and more. In short, data is set to help retailers take their businesses to the next level.

“There’s a wealth of customer data now available to retailers that can provide them with a competitive edge. By analysing this rich pool of information, companies can gain a huge amount of insight into what makes their target audiences tick.” He added that it’s going to be critical to talk with customers and not at them in the coming years. Retailers can only engage with customers effectively if they take the time and make the effort to understand them. This point was further emphasised by Bob Willet, Chairman of Eagle Eye Plc, Anatwine Ltd and of Houseology Ltd, when he stated: www.klccconventioncentre.com

“Get on the shop ﬂoor. Know your customers.” However, technology now enables retailers to go beyond the shop ﬂoor and those that fail to innovate and employ the resulting data effectively will get left behind. Viewsy was set up primarily to help retailers better understand their customers. Its technology enables retailers to capture information from the real world (within and outside brick and mortar stores), digitise it and then analyse the information to improve the customer experience and store performance. During the Retail Recharged event, Viewsy was presented with the “Accelerated Market Entry” award, recognising it as a technology that acts as a catalyst for retailers to enter new markets. “The event brought together some of the retail industry’s most celebrated leaders and offered invaluable insights into where smart retailers are rapidly heading next. “Winning the award was the icing on the cake though and further validation of where Viewsy is heading. On the back of local UK traction and growth, we are now expanding internationally into the South East Asian markets. “We are ready to speak with retailers, banks and other retail focused organisations in Malaysia,” says Viewsy Founder Odera Ume-Ezeoke.

UK: T +44(0)330 200 0155 E: hello@viewsy.com MALAYSIA: T: +6019 383 3624 E: nicholas.pinder@gmail.com

In The Spotlight

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ThinkTank

Making GOOD Decisions The recent Sunway University Jeffrey Cheah Distinguished Speaker Series featured renowned speaker Professor Baba Shiv from Stanford Graduate School of Business, who spoke about the latest theories and ﬁndings to a question that has been the topic of debate for many centuries: “Is a Good Decision Based on Emotion or Reason?” The BMCC was there to ﬁnd out.

efore all else, what is a good decision? The roots beneath today’s general perspective to that very question can be traced back to the 16th Century philosopher René Descartes where a good decision is one when it does not fall prey to bias. There are various sorts of bias. There is consensus bias where decisions are made based on a conformity to the majority. Confirmation bias is where the person falls in love with a decision and justifies it with emotion. Then there’s the escalational commitment bias where a decision has been made, signals however are indicating that it was perhaps the wrong one and yet the decision-maker continues to throw good resources at a bad decision. These biases share the commonality of Descartes’ perspective that good decisions are better off made based on reason. There is however another perspective which is often neglected in mainstream decisionmaking literature but more evident in leadership publications. This defines a good decision as one where a leader emerges from a decision feeling absolutely confident that it was the right one.

This sense of conviction is crucial as a leader, for the absence of confidence equates to a lack of persuasion and inspiration. The persuasive qualities of a leader depend not as much on what is said, but on how it’s said; where body language and voice intonations are the most powerful instruments of confidence. After all, a leader as the decision-maker needs others to execute that decision. The underlying notion of this perspective is that confidence is rooted in emotion. How so? The unfortunate true account of Phineas Gage has been an evidential bedrock to support this claim throughout most schools of neuroscience. Phineas Gage was a railroad foreman in Vermont, USA in the mid 1800’s. On the 13th of September 1848, Gage, 25 at the time, was packing explosive powder into a hole with a tamping iron when the powder detonated by accident. The hefty iron rod, weighing some

13-plus pounds, pierced Gage’s cheekbone, went out through his skull and landed dozens of feet away. By some miracle, he survived. Yet although Gage recovered from the accident, his very personality had changed. The balance between his “intellectual faculties and animal propensities” seemed gone, uttering gross profanities and showing little empathy and much indifference to his fellows. Most notable though, was his inability to make decisions. He was often conflicted by plans, going back and forth between making choices. The conclusion was that the accident destroyed a critical area of his emotional circuitry, thus indicating that a decision cannot be made without emotion. Professor Baba explains that the human brain starts the process of decision-making without bias. Initially, it merely gathers and evaluates information. Eventually though, there will be an emotional signal that sways in favour of one option. The person making the decision wouldn’t be aware of this at first, however if placed through an MRI scanner, neural activity in the key area of the brain is seen. This instantiates an emotional front-runner, a conscious or unconscious preference towards a certain decision based on emotion. The rational brain which is good, not at being rational, rather at rationalising thus amplifies this emotional front-runner. Examples of this in everyday life can be seen in certain sacrifices or allowances we make to justify the means of following through a decision, such as eating less outside food to save up to buy a car. In the real world, Professor Baba argues that

Continued on Page 46

Continued Overleaf

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On The Social Scene

MAJESTIC Celebration T

he British High Commission Kuala Lumpur held a majestic reception recently to celebrate the 90th birthday of Her Majesty Queen Elizabeth II. Her reign of 64 years makes her the longest reigning British monarch and Head of Commonwealth. British High Commissioner to Malaysia HE Vicki Treadell CMG MVO, who hosted the event, said, “The Queen has been part of our journey together as two

nations. Today, our relationship is one of partnership, underpinned by strong twoway trade and investment, education links, collaborations in scientific research, defence and security engagement.” Held this year at the Majestic Hotel Kuala Lumpur, the glamourous event was graced by YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry Malaysia who represented the Malaysian government as the Guest of Honour. He joined Her Excellency in toasting to The Queen’s health and longevity. Among the guests spotted at the reception were YAM Dato' Seri DiRaja Tan Sri Tunku Puteri Intan Safinaz binti Tuanku Abdul Halim Mu'adzam Shah from the Kedah Royal family, senior government officials, foreign dignitaries, business leaders, civil society representatives, celebrities, socialites, scholars and alumni.

Making Good Decisions there is no such thing as a right decision. As decision makers, either as industry leaders or students, you can only have so much information or data; we’ll never know how the future will unfold. As such, we make the decision, then make the decision right. The hallmark of a good leader is the ability to make the best decision using the information he or she has at the time, and then making sure that decision becomes right. To make that decision right, a leader thus needs confidence. However, if confidence is needed to make a good decision, and confidence itself is rooted in emotion which in turn is a form of confirmation bias, there emerges a conflict between the isolated qualities of emotion versus reason in making a good decision. To resolve this conflict, Professor Baba breaks down the processes of decisionmaking into three stages. The first is the preposition stage, or what he calls the due diligence phase. Here, reason predominates with all information gathered being converted into numbers such as price, cost and statistics. If the decision maker is wary of his or her emotions influencing this stage, a holdout group can be used where those who are not

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“She has been timeless over the years. She has been at the heart of our nation and now ﬁrmly in the nation’s heart. She is a remarkable lady in whom we trust. She is simply our Queen, God Bless her and long may she reign.” Continued From Page 45

invested in making the decision can carry out the due diligence. Secondly is the decision stage. When faced with a conflict where neither emotion nor reason is able to make a clear choice due to insufficient or superfluous information, Professor Baba proposes the these steps in the making of an important decision: “Tell the person or company that you will call them back on Monday morning. Take the weekend off, going somewhere calm and quiet alone. There, consider your options. Think about all the information you have gathered and get a good night’s rest. Good sleep is important as when Rapid Eye Movement (REM) occurs, a binding between our emotions and options takes place.

The third phase is the post-decision stage where you evaluate if the decision you’ve made is a good one. If you’re receiving signs that your decision isn’t going according to plan, return to your reasoning aspects by evaluating your decision based on the criteria you’ve laid out in the preposition stage. Then return to emotion, remembering that there’s no such thing as the right decision and mistakes are a virtue of life. Conﬁdence however, substantiated by emotion holds the potential to turn a bad decision into a good one.

About Professor Baba Shiv

On Monday morning, your gut emotion will tell you which way to go. If the conflict between voice of reason and gut emotion persists, flip a coin. If you find yourself hoping for a certain side of the coin, that is your emotion making the decision. Follow it.

Professor Baba Shiv has carried out extensive work on the emotional brain, documenting its powerful role in shaping decisions and experiences. It includes the application of neuroeconomics to the study and practice of innovation and entrepreneurial leadership in companies, from Silicon Valley startups to Fortune 500 companies.

Following your gut and reinforcing the feeling will enable you to emerge from the decision feeling conﬁdent, increasing the chances of making your decision a good one.

His recent work examines the interplay of the brain’s "liking" and "wanting" systems and its implications for marketing, innovation, leadership and decision-making.

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