Berita BMCC - Issue 3/2016 by British Malaysian Chamber of Commerce

Issue 105 PP 11826/07/2013 (032918)

Issue 3 - 2016

FOOD FUTURES Meeting Demand, Ensuring Security, Creating Taste

IssueSixty 3 - 2016 Second Pitch PLUS: ■ Brexit Briefing ■ Rugby Roars Into Town ■

BRITISH E I H

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 3 - 2016

First Lines

he hottest topic by far in recent weeks has been what impact Britain’s decision to leave the EU is likely to have - not just in the UK but in Europe and elsewhere across the world.

Since the result of that historic vote was announced, the UK has a new Prime Minister in Theresa May who has stated in no uncertain terms that Britain means business and will remain a key player on the global stage. Here in Malaysia that message has been reinforced in equally unequivocal manner by British High Commissioner Vicki Treadell, the team at BMCC and business leaders at large. Andrew Sill Chairman - BMCC

At the special trade talk organised in conjunction with Malaysian Ministry of International Trade & Industry both the High Commissioner and Minister Mustafa bin Mohamed stressed the importance of the trading relationship between our countries and the new opportunities

that a post-Brexit landscape presents. See Page 10-11 for the full report. Anyone who watched the 2016 Rio Olympics and Paralympics will surely agree that both were a showcase of incredible talent. The phenomenal achievements of the athletes taking part must serve as an inspiration to all that with hard work, commitment and dedication, pretty much anything is possible. Their determination to succeed is a lesson that plays out in business, just as it does in the world of sport. With the right mindset, anyone can go beyond expectation. This has certainly been the case with our OBNI team, who have hit the ground running over the last few months, extending the reach of the BMCC and continuing to raise the profile of the business potential in Malaysia. One such example was ‘Choose Malaysia’, a roadshow to key locations across the UK, providing companies there with the chance to hear first-hand more about the opportunities here. This level of activity is set to continue over the next quarter with a strong BMCC presence planned at a number of key trade events, both here in Malaysia and in the UK. Another event that generated much anticipation and excitement was our Annual Charity Rugby Dinner and Coaching Clinic. At the Dinner, our three guest speakers entertained the sell-out crowd with a night to remember, after giving some 50 juniors an action-packed training session earlier in the day. See Pages 18-20 for all the highlights. The next signature event on our calendar is the Annual Corporate Christmas Lunch which this year will take on a truly traditional theme. It’s on Friday 9th December so make sure you book your places early. In the meantime, remember - BMCC is all about building business opportunities. Please do get in touch with us if you have an idea or an opportunity that you would like to explore further.

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 3 - 2016

The Chamber

The British Malaysian Chamber of Commerce is the leading business networking organisation in Malaysia comprising 250 top member companies with an outreach of over 50,000 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 YA Bhg Tun Musa Hitam

Chairman: Andrew Sill - HSBC Bank Malaysia Bhd

Deputy Chairman: David Ng - International SOS Sdn Bhd

Directors: Dato’ Muthanna Abdullah - Abdullah Chan & Co Soo Kim Wai - Amcorp Properties Bhd John Stocker - BAE Systems International Datuk Zainal Amanshah - InvestKL Andrew Diamond - IsItUp Sdn Bhd Amanda Powell - KL Kudos Design Sdn Bhd Dato’ Larry Gan - Maybank Investment Bhd Mohamad Hanif bin Hashim - Petrofac Malaysia Saji Raghavan - Rolls-Royce International Mahendra Gursahani - Standard Chartered Bank Malaysia Bhd Bill Addington - TechSol Sdn Bhd Professor Graham Kendall - University of Nottingham Malaysia Datuk Peter Wentworth - OBE, Weir Minerals Malaysia

Ex-Officio: Sarah Deverall, British Council Tony Collingridge, OBE, Department for International Trade 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 Azlin Alwin: Senior Accounts Executive Afiq Sahidi: Membership/Admin Executive Ralph Owczarek: Head of Overseas Business Network Initiative [OBNI] Sridaran Sabapathy: Project Manager Sulita Levaux / Vikramjit Lahiri: OBNI Project Manager

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 quarterly 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 3 - 2016

In This Issue

FOOD FUTURES

On The Cover

Ensuring that the food on our plates is attractive, safe and sustainable is a complex process which has the potential to influence more than just our appetites. Turn to Page 25.

■ First Lines ................................................. 3 ■ BMCC’s Sponsors & Partners .................. 6 ■ Hot Happenings ........................................ 8 ■ Trade Talk ................................................. 10 >

Post-BREXIT: A World of Opportunity

BREXIT: Implications for South East Asia

A New Era For UK Business

OBNI: Developing Ties

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■ ReportBack .............................................. 18 >

A Night To Remember: BMCC Rugby Dinner

On The Right Track: BMCC Coaching Clinic

Insight Into Transfer Pricing

Engaging TechGen

■ Cover Story ............................................. 25 Food: A Look At What’s On The Table ■ In The Spotlight ........................................ 37 >

■ News From Our Members ..................... 44

Total Security: Ace Wong, Panther 911

■ On The Social Scene ................................ 49 ■ Business Insights ...................................... 39 >

From Our Sterling Members

■ Meet Our New Members ....................... 41

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

Sixty Second Pitch: Speed Networking

■ Inside View ............................................... 50 >

Search Inside Yourself

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 3 - 2016

BMCC Sponsors & Sterling Members

BMCC 2016 Annual Sponsors & Preferred Partners GOLD SPONSORS

PREFERRED RELOCATION PARTNER

PREFERRED AIRLINE PARTNER

BMCC 2016 Sterling Members

Issue 3 - 2016

The best keeps getting better

www.baesystems.com Issue 3 - 2016

Hot Happenings

Nov

Selected Dates For Your Diary 4-7

11-14

Fri-Mon

WORLD LEADING WINES Sourcing Event for Wine

Malaysia International Mining & Mineral Expo

Annual international expo intrademalaysia.my

At: Le Meridien KL worldsleadingwines.com

Showcasing new technology & innovation. At: PWTC

15-16

Fri-Mon

Weds-Fri Aerospace & Defence Business Convention

Jan

Dec

Leading showcase for Jewels and gems At: KL Convention Centre

15-17

Tues-Weds

Tues-Thurs

BETT Asia Summit

Food & Hotel Penang

Largest gathering of senior educational leaders in conjunction with trade expo. See this page.

Showcasing the very best of international and local food, wines and hospitality

17-19

At: MATRADE Exhibition & Convention Centre

Thurs-Sat

INTRADE Malaysia At: Menara MATRADE

Malaysia International Jewellery Festival

7-9

10-12

Tues

Tues-Thurs International Energy Week Borneo Convention Centre Kuching, Sarawak

At: Straits Quay Centre

See more details on www.bmcc.org.my Follow us on Facebook for regular updates!

Fri BMCC Christmas Luncheon A truly traditional festive occasion. See opposite.

MANDARIN ORIENTAL, KUALA LUMPUR, MALAYSIA

Supported by Malaysia’s Ministry of Education and part of the UK Government’s Education is GREAT campaign, the 3rd edition of BETT Asia will be bringing an even bigger Expo alongside its renowned Leadership Summit.

Special discounted Exhibitor Package for BMCC Members

Contact Sulita on sulita@bmcc.org.my

The region’s most senior gathering of education leaders Showcasing best practice and celebrating innovation, the Bett Asia Leadership Summit, supported by Malaysia’s Ministry of Education, is a high-level, world-class conference bringing together education leaders and decision makers from across the region. Learn from and network with professionals at the forefront of education transformation. This year’s Summit theme is ‘Educating for Global Citizenship’.

Purchase your summit pass: >

Over 100 highly inﬂuential speakers from more than 30 countries will take to the stage to deliver presentations, share innovations and best practice, and lead cutting-edge discussions.

Access to the Bett Asia Expo where you are invited to discover and experiment with the latest, most inventive EdTech solutions and resources to transform learning in the classroom and beyond.

Up to 10 hours of networking and 1-2-1 facilitated meetings with education leaders and colleagues from around the world.

Book now to attend at www.asia.bettshow.com

Issue 3 - 2016

Pasi Sahlberg, Professor of Practice, University of Helsinki and Arizona State University – FINLAND

Anthony Salcito, Vice President – Worldwide Education, Microsoft – USA

Tan Sri Dato’ Syed Jalaludin Syed Salim, Chairman, Universiti Putra Malaysia, Chancellor, Taylor’s University – MALAYSIA

Hot Happenings

■■■■

Don’t miss out on the special offers and discounts for BMCC Members! From attractive airfares to hotel packages to dining options! Visit www.bmcc.org.my/promotions

Issue 3 - 2016

Trade Talk

BREXIT: A World of Opportunity

“We will be energetic on the world stage; we will be on the front foot; we are not a shrinking Britain.” HE Vicki Treadell

he shock result of Britain’s Referendum on whether or not to leave the EU caused a tsunami of reactions all across the world.

In Malaysia, eager to find out more about what lay in store for the UK-Malaysia relationship, over 400 people arrived at the Matrade Exhibition & Conventre Centre fpr a special event on that very subject. Organised by the BMCC together with MATRADE, the event took the title “Brexit & Malaysia: A New Opportunity”. The event was supported by MITI, the Department of International Trade (DIT) and the British High Commission Kuala Lumpur. Taking centre stage were British High Commissioner to Malaysia, HE Vicki Treadell and Minister of International Trade & Industry, YB Dato’ Sri Mustafa bin Mohamed. “Brexit does mean Brexit,” affirmed the High Commissioner, reprising the now familiar battle cry of newly appointed British Prime Minister Theresa May.

Issue 3 - 2016

Those in attendance at the event comprised government officials, representatives of private and public enterprises, as well as members of the media. The clear message was one of encouragement and substantiated optimism.

With this, the theme “Great Britain is Open for Business” was reiterated with the vitality of a rejuvenated nation, confident that its EU departure will not impede its international trade ties. Ms Treadell went on to lay out the strong national fundamentals, which include education, multiculturalism, labour skills and financial services.

Her Excellency sought to debunk several myths revolving around Brexit, beginning with the whispers of a shrinking Britain. “The identity of this sovereign nation state will in no way diminish over the mere circumstance of an EU exit, for the UK still remains a resolute member of the United Nations, NATO, The Group of Seven and the G20 Summit.

Her Excellency also brought to light Article 50 of the Lisbon Treaty, which sets the grounds for UK to leave the EU officially. “When Article 50 is invoked next year (as announced since by Prime Minister Theresa May - see opposite) it opens a two-year time frame to prepare Britain for the exit; to negotiate and set the exit terms with the remaining EU nations.”

“Along with the alliance of the Commonwealth countries that remain under the strong belt of Great Britain, the voices of the British people as a collective power will continue to be prominent in the global arena,” she said.

Another myth the High Commissioner sought to dispel was the hampering of Malaysia’s free-trade agreement (FTA) with the EU and with Great Britain. “We want to progress the Malaysian FTA” she said.

“We have our marching orders from Prime Minister Theresa May. We will be energetic on the world stage; we will be on the front foot; we are not a shrinking Britain. We will hold fast to a vision of Britain that is respected abroad, and we will earn this respect,” she added.

“We believe in free trade. Why would we step back on the very thing we are all about? We’ll continue to support FTA and the TPPA. In the past 20 years, the number of FTAs has increased four-fold and leaving the EU gives us back control of our own trade policies with the world.”

Trade Talk

GREAT Britain is OPEN FOR BUSINESS

YB Dato’ Sri Mustafa also addressed the audience saying that Brexit will not undo the strong ties Malaysia has with the UK. “Britain remains one of the biggest military and economic powers, and will be even more open for business. Malaysia is open for business as well”, he declared. “As there is a huge British presence in Malaysia, the aim is to work towards a win-win situation.” Citing the recent example of Khazanah opening an office in London, he said the capital isn’t just “a gateway to UK but also to Europe.” The event also featured a panel discussion with Matt Chandran (CEO of iGene Sdn Bhd), Nick Glover, Regional (VP of BAE Systems), Nick White (Partner of Trowers & Hamlins) and Paul Matthews (Country Manager of UES International); moderated by Stephen Hill from the Department of International Trade.

“There is a huge British presence in Malaysia - the aim is to work towards a win-win situation.”

“It should make us think of Global Britain, a country with the selfconfidence and the freedom to look beyond the continent of Europe.” Theresa May

A truly global Britain is possible, and it is in sight. And it should be no surprise that it is. Because we are the fifth biggest economy in the world." None other than Prime Minister Theresa May uttered these words of ambition and assurance as she addressed the Conservative Party Conference for the first time since her appointment.

She stressed yet again that Britain will not backtrack on its decision to leave the EU, this time vowing to trigger Article 50 - the formal procedure to leave the bloc - by March next year. Although its effect will be immediate, the process will cover a time span of another two years, meaning Britain will finally be a "fully independent, sovereign country" by 2019. In her address, she said that Britain must look beyond Europe for economic success. "Brexit should make us think of Global Britain, a country with the self-confidence and the freedom to look beyond the continent of Europe and to the economic and diplomatic opportunities of the wider world." Canada, China, India, Mexico, SIngapore, Australia and New Zealand and South Korea are among the countries that have expressed their interest to welcome talks on future trade agreements.

Issue 3 - 2016

Trade Talk

BREXIT

Implications For South East Asia

he outcome of Britain’s referendum on EU membership pitched the UK and Europe into a period of uncertainty and high risk. That the UK electorate should turn its back on the comparative security of a status quo which has held for over four decades, speaks to the scale of popular disenchantment towards an institution which is seen as increasingly divorced from its citizens. The referendum was a lightning rod for anger and resentment towards a range of issues, most of which had little to do with the EU. A period of constitutional and political gridlock lies ahead, while Britain unravels its membership, the bedrock of government policy since 1973.

There was initial heightened concern among the governments of South East Asia at the implications of Brexit for global growth and stability. Asian investors, who always regarded their presence in the UK as the gateway through which to enter the European single market, particularly in financial services, naturally viewed any restriction to that access as a major concern. However, they are also conscious that what has happened in Britain is part of a wider phenomenon that may further alter the dynamics of Europe. Anti-EU sentiment is now as strong in Spain, France, Germany and Greece, as it was prior to the vote in Britain. With youth unemployment across the Eurozone now at over 20 percent and the EU struggling to address a range of serious challenges, further upheavals could well lie ahead as the citizens of other member states demand a say on continued membership. Crucial to the view that foreign investors in Britain reach will be the terms under which the UK leaves the EU and particularly the question of continued access to the single market, which will almost certainly remain a central UK objective in the exit process. Even after formal notice has been served that a member state wishes to leave, EU rules allow for a two-year period within which to settle departure terms. It is difficult at this point to see how continued access to the EU single market can be

Issue 3 - 2016

achieved without accepting elements which have generated popular opposition, such as the free movement of labour. Although such elements have hitherto been an integral part of membership of the single market, Brexit takes us into entirely new territory and it is not inconceivable that Britain, a G8 economy, can achieve a compromise. Over time, Brexit may also give rise to deeper reflection on the implication for integration in Southeast Asia, although the Association of South East Asian Nations (ASEAN), the ten members of which now represent over 630 million citizens and some of the most dynamic economies in the world, is at a very different stage in its development. ASEAN’s leaders emphasise its economic roots, its more modest ambition compared to the EU and people-centric approach. They point out that decision-making by consensus acts as a brake to those who wish to move forward more quickly, as does the lack of a centralised bureaucracy. ASEAN has avoided the pitfalls that have made the EU unpopular – freedom of movement, the problems associated with a single currency, and institutions that have intruded on decision-making at a national level. But it’s worth remembering that ASEAN is positioned today where the EU once was. Britain joined the European Economic Community in January 1973. In a referendum held in 1975, Margaret Thatcher, who later became a vocal critic of the EU’s centralising tendencies, was a strong supporter of what was then a common trading area. Subsidiarity, the principle that decisions, where possible, should be taken at a national level, has failed to hold back the centralising drift. Integration can also generate unexpected momentum. Economic and political crises accelerate the process. Personal and national ambitions play a part. As positive results are achieved, pressure grows for greater harmonisation and uniformity and the removal of obstacles which national differences tend to create. When resistance is encountered, as the history of the Maastricht Treaty illustrates, a way is found around the problem and the distance between the institution and the people whom it is meant to serve widens.

By Mark Canning It would be naïve to think that a similar dynamic could not in time undermine the benefits which ASEAN is starting to deliver. Although its ambitions for an economic community are far from realisation, ASEAN is enabling the region address a variety of challenges ranging from terrorism to environmental damage and transnational crime. Brexit however reminds us that if ASEAN is to prosper in the longer term it must consistently demonstrate accountability to its citizens and practical day-to-day relevance. Overly ambitions plans must be set aside in favour of incremental steps that genuinely enhance the security, prosperity and lives of its peoples. The differing ambitions of member states need to be accommodated within a mechanism which allows for a more flexible multi-speed approach, enabling governments to remain in step with what their citizens want. Finally, a balance needs to be struck between enhancing ASEAN’s ability to implement collective decisions, while avoiding the creation of a bureaucracy that risks being seen as unaccountable and distant. The lessons of Brexit therefore go far wider than Europe. They touch on crucial issues of accountability, legitimacy and sovereignty which, if ignored, risk undermining institutions which can, and have, delivered great advances for their citizens.

Mark Canning is now a senior adviser to Bell Pottinger and a former senior member of the British Diplomatic Service. He served for over 15 years in the ASEAN region, including as Ambassador to Indonesia, Ambassador to Myanmar, and as the UK’s representative to ASEAN.

www.bellpottinger.com

TMF Group helps companies expand and invest seamlessly across international borders. Its expert accountants and legal, HR and payroll professionals are located around the world, helping clients to operate their corporate structures, finance vehicles and investment funds in different geographic locations.

With operations in more than 80 countries providing global compliance services, TMF Group is the global expert that understands local needs. In Malaysia, we have offices in Kuala Lumpur, Penang and Labuan with a strong team of experts, offering clients unrivalled services and expertise in the country.

Labuan

Penang Kuala Lumpur

Our offices in Malaysia

Trade Talk

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Trade Talk

A NEW ERA For UK Business I

t has undoubtedly been a busy summer for everyone in the OBNI, planning and researching what the EU referendum result means for the UK, including its subsequent trade relations with Malaysia. Indeed, the result of the Brexit vote on 23 June 2016 took the world and many British businesses by surprise. The political uncertainty and tales of economic doom reported daily by numerous economic commentators drew various, mostly negative, scenarios of a post-Brexit Britain. Among the Overseas Business Network Initiative teams around the world, rather than dwelling on the negative, many of us view Brexit as an opportunity for the UK to look beyond Europe in forging new deals and new relations with other parts of the world. So far the decrease in value of pound sterling has made UK goods more competitive on the global market, causing rapid increase in exports up by £800 million to £43.8 billion in July 2016, the highest level in two years.

“Rather than dwelling on the negative, we view Brexit as an opportunity for the UK to look beyond Europe in forging new deals and new relations with other parts of the According to the Office for National Statistics since the vote to leave the EU took place, trade deficit of imported goods and services compared to exports fell to £4.5 billion in July from £5.6 billion in June 2016. Whereas the deficit on trade in goods only was £11.8 billion in July, narrowing by £1.2 billion from the previous month. These figures clearly reinforce the case for a further loosening of monetary policies aimed at setting the British economy onto a different course; one that no longer rests on the trail of a four-decade long membership in the EU.

Phillip Hammond, the Chancellor of the Exchequer, repeatedly stressed that Britain has always been an outward-facing, global economy with a deeply engraved duty to secure prosperity for its business sector. Hence it is widely anticipated that the foundation of this new monetary policy will be revealed in the first Autumn Statement on 23 November.

Ralph Owczarek, Head of the OBNI Team

“In the last year, the OBNI

And indeed the OBNI network, with its global outreach into the developing world is well-placed to play a key role in supporting the government’s efforts to expand British export horizons beyond the European Union.

team in Malaysia has worked

In the last year, the OBNI team in Malaysia has worked with over 600 UK companies, providing them with a range of practical in-market trade services such as market information, identifying business partners and helping them to build their corporate brands in Malaysia. We do anticipate this number to be far greater, with more high quality, innovative British brands coming to Malaysia in the years to come.

services such as market infor-

In June, the OBNI Malaysia led for the first time a Malaysian business delegation to the International Festival for Business 2016 which took place in Liverpool. The inaugural week of IFB 2016 saw more than 9,000 delegates in attendance and over 2,000 formal face-to-face meetings set up as part of the “Meet Your Future Deal” - an online business matching platform. In November, together with the Department for International Trade (DIT) and Malaysia Digital Economy Corporation (MDEC) we look forward to welcoming a trade mission from UK’s technology sector. This initiative falls under DIT’s technology trade campaign which aims to deliver £350 million of export wins by 2021, through collaborations with Malaysian organisations in a number of priority sub-sectors. We encourage Malaysian companies interested in learning about the opportunities brought by UK companies on the trade missions to get in touch with us soonest.

with over 600 UK companies, providing them with a range of practical in-market trade mation, identifying business partners and helping them to build their corporate brands in Malaysia.” Also in November, we will be going back to the UK to join our annual Britain in South East Asia (BiSEA) country-wide roadshow where a group of British chambers of commerce from eight ASEAN countries will tour the UK, presenting at events and offering 1-2-1 expert market advice on doing business in their respective markets. So far, we have confirmed London, Manchester, Sheffield, Stoke-on-Trent, Birmingham, Thames Valley, Hull, and Woking as set locations where UK SMEs will be able to meet our representatives. OBNI is all about providing the right type of market information and business support to small and medium companies. So stay tuned for more news on the upcoming business delegations, trade missions and events. You can subscribe to our weekly newsletter for frequent updates and don’t forget to visit our website to learn about the range of trade services available through our initiative.

www.bmcc.org.my/trade-services

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Trade Talk

OBNI: Developing Ties The third quarter has been busy for the OBNI team with a flurry of high-profile events and participation at international exhibitions. Here’s a round-up of activities in the past months. World Islamic Economic Forum (WIEF) 2016 Jakarta, Indonesia

International Festival for Business (IFB) 2016 Liverpool, UK In June, the BMCC led a Malaysian business delegation to the first week of the IFB 2016 held in Liverpool, UK which centralised on the theme of Manufacturing. Areas such as science & innovation, professional services, infrastructure & logistics and international skills were highlighted as the core enablers across Britain's manufacturing industry. The delegation also met with Richard Graham MP, Prime Minister’s Trade Envoy to Malaysia who spoke warmly about his role as trade envoy and praised Malaysia for the enormous level of growth it has achieved in recent years.

BMCC was represented by the OBNI team at the World Islamic Economic Forum 2016 in Jakarta. Themed "Decentralising Growth, Empowering Future Business,” the event kicked off with an opening address from the Chairman of WIEF, YA Bhg Tun Musa Hitam (also BMCC co-Patron) followed by speeches from President of Indonesia Joko Widodo and Prime Minister Dato' Sri Najib Tun Razak. Alongside business workshops and seminars, the event also featured initiatives in the development areas of youth and women - a new initiative by WIEF.

CommunicAsia 2016 Singapore BMCC and OBNI's ICT Sector Specialist were in Singapore for the 27th International Communications & Information Technology Exhibition & Conference; Asia's largest integrated ICT event. BMCC experienced how the latest technologies in 3D Printing, IoT, M2M, Mobile Apps, OTT and more, will raise efficiency at work and in the home.

BETT Asia

Brexit & Malaysia: A New Opportunity The British Malaysian Chamber of Commerce (BMCC) and the Malaysia External Trade Development Corporation (MATRADE) collaborated to host Brexit and Malaysia: A New Opportunity; a trade talk featuring a speech by the British High Commissioner to Malaysia, HE Vicki Treadell and a keynote address by the Minister of International Trade & Industry, YB Dato’ Sri Mustafa bin Mohamed. [See Page 10 for full report]

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In June, BMCC attended the BETT Asia Press Conference at the British High Commission where the BETT organisers, UK Prime Minister's Trade Envoy to Malaysia Richard Graham MP, British High Commissioner HE Vicki Treadell and the Malaysian Education Ministry launched the first BETT Asia Leadership Summit & Expo in Malaysia. See Page 8 for details.

Trade Talk

MIFB 2016 BMCC was an official partner of The 17th Malaysian International Food & Beverage Trade Fair – the largest of its kind in Malaysia with some 350 exhibitors from over 45 countries worldwide. The 2016 edition included many International Pavilions namely Thailand, Korea, Taiwan, China, Singapore, India and others. The BMCC also held a booth at the expo.

SMIDEX 2016 The BMCC booth at SMIDEX 2016, the SME Annual Showcase, provided a good platform for companies to get the latest update on various initiatives and assistance for SMEs.

“Funding Research in a Changing Landscape”

BMCC & University of Huddersfield HRH Duke of York Reception The BMCC together with The University of Huddersfield organised a reception in honour of Pro Vice Chancellor HRH the Duke of York, Prince Andrew. As part of a special visit to Malaysia, the Duke attended a Remembrance Service at Tugu Negara in Kuala Lumpur, organised by the Royal Commonwealth Ex-Services (RCEL) and the British High Commission. The Duke is the Grand President of RCEL, a Commonwealth charity with 57 member organisations throughout 50 Commonwealth countries including Malaysia. The charity provides welfare for 40,000 Commonwealth ex-servicemen in these member countries.

University of Nottingham Malaysia Campus (UNMC) and the Malaysian Investment Development Authority (MIDA) held the inaugural international research conference titled “Funding Research on a Changing Landscape” at MIDA’s Headquarters at KL Sentral. The Conference highlighted prominent research funding opportunities and featured critical topics dedicated to exploring new potential and support from various funding bodies. David Ng, Deputy Chairman of BMCC and General Manager of International SOS presented a talk on “Innovation Through Collaboration” and was part of a panel session titled “R&D Needs and Challenges in Business Sectors”.

Training Gateway The Training Gateway was a varied and eventful combination of seminars on Corporate, Technical & Vocational Training, B2B Meetings, Networking Lunch and Reception. BMCC was involved in organisation of The Training Gateway in support of the Education is GREAT campaign and as part of the UK Trade Mission.

Issue Issue33--2016 2016

ReportBack

Oh What A NIGHT!

David Campese David

‘Sambo’ reprising his role as MC & Auctioneer

he BMCC Annual Charity Rugby Dinner returned to KL for its 12th round recently with rugby legends David “Campo” Campese, Kyran Bracken and Craig Chalmers taking centre for the sell-out event at Shangri-La Hotel KL. More than 400 guests comprising rugby enthusiasts from among the BMCC membership and beyond, as well as leading community figures, gathered for the event to hear from the three legends on their experiences at the highest level of world rugby. And they were not disappointed. It was a night to remember!

Kyran Bracken of community and teamwork underpin great companies and great rugby teams, and that is what makes this event so special. Craig Chalmers Justin “Sambo” Sampson, returned for the straight 12th year to be MC and auctioneer of the Dinner. The event was made even more special thanks to this year’s Title Sponsor HSBC and Preferred Airline Partner British Airways, supported by event partners Shangri-La Hotel, Rugbypass. com, Heineken, Expatriate Lifestyle y and VisionKL. Andrew Sill, Managing Director and Country Head of Commercial Banking at HSBC and Chairman of BMCC [left] said: “HSBC is proud to have been able to support the BMCC Charity Rugby Event this year and to be a part of this global rugby community in coming together to celebrate everything that makes the game special. A sense

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BMCC Board Director and Chairman of Linatex Weir Minerals Malaysia, Datuk Peter Wentworth, OBE, added: “This entire event is built on the generosity of our sponsors. Over more than a decade, we have developed a reputation for providing a top-class event that not only delivers in terms of charitable donations, but has been enhanced by the support of leading companies such as HSBC and British Airways.”

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Brian Pye [right], VP Sales of Lloyd’s Register Senergy Holdings and Rugby Committee Member of the BMCC said: “The BMCC Charity Rugby Event keeps going from strength to strength. Since it started, the event’s focus has always been on about reaching out and making a difference. This is the same for the charities we support, or the grassroots rugby we develop.” Since 2005, Event has raised more than RM1.5 million for local charities. Funds raised this year are being channelled to the National Cancer Society of Malaysia, which this year marks its 50th Anniversary.

“A sense of community and teamwork underpin great companies and great rugby teams, and that is what makes this event so special.” Andrew Sill, HSBC

Issue Issue33--2016 2016

47 19 15

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On The RIGHT Track M

ore than 50 rugby-enthusiast students got a taste of what it takes to be a professional rugby player as they were put through their paces at a thrilling Rugby Coaching Clinic led by the three rugby legends who were in KL for the Annual Charity Rugby Dinner [see pages 18 & 19]. Hosted at The Alice Smith School Kuala Lumpur, the Clinic was organised in conjunction with KL Saracens, SM Sains Selangor, Victoria Institution, Cobra RC and KL Tigers. Bringing their unique blends of skills to the Clinic alongside the regular coaches were David “Campo” Campese, former Wallaby, and one of only five players worldwide to achieve over 100 games for their country and once holder the world record for the most tries in test matches; Kyran h Bracken, former England player with 51 caps and 3 captaincies to his name, and Craig Chalmers who played 60 caps for Scotland and represented the British & Irish Lions on the 1989 Tour.

Braving the sun and rain, the students, ranging from ages 6 to 13 were given a rugby masterclass under the trained mentorship of the three legends. The juniors had the opportunity to experience the outstanding facilities of the new Alice Smith Secondary School Sports Complex, officially launched that same day – see opposite.

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Andrew Sill, BMCC Chairman and Managing Director and Country Head of Commercial Banking at HSBC, this year’s event title sponsor, said, “Young players and, who knows, future internationals are getting the chance to learn from the best in the business and see legends in action. We are delighted to have helped make that happen.”

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An additional multi-purpose grass playing area can accommodate a range of outdoor sports such as softball, T-ball, Touch Rugby, Football and Frisbee.

he Alice Smith School Secondary Campus was the venue for this year’s Charity Rugby Coaching Clinic. And with a brand-new international standard Sports Complex on offer, it was an opportunity too good to be missed.

Roger Schultz, Head of School, at the Launch

Officially opened by HE Vicki Treadell CMG MVO, British High Commissioner to Malaysia, the Sports Complex features worldclass track and field facilities around a high quality natural turf football field. Also part of the package are an artificial surface for 5-aside field hockey (to international standards) and three futsal, tennis and netball courts.

The 8-lane synthetic athletic running track is certified by the International Association of Athletics Federations (IAAF), with Alice Smith being the first international school in Malaysia and the third in the world to receive this standard of certification. Launching the Sports Complex, Her Excellency said, “We have seen an increasing interest in UK education in Malaysia because of its track record of academic excellence and overall character development. The extra-curricular is valued alongside the academic curriculum. “The Alice Smith School has been a trailblazer. It comes as no surprise that it has invested in new international standard sporting facilities, again setting a benchmark for others to follow. I am proud that British schools continue to make a positive contribution to the education offered in Malaysia.” Head of School, Roger Schultz said, “Ensuring that we provide the best learning and teaching environment we can, including facilities of this exceptional standard, is essential to our success. We are committed to helping our students reach their full potential and to developing them as wellrounded and confident individuals prepared to shape a better world.” Established since 1946, the School this year celebrates 70 years of providing a rich British educational heritage in Malaysia.

www.alicesmith.edu.my ABOVE: The School’s Heritage Wall being unveiled by the High Commissioner.

TOP: The 8-lane synthetic athletic running track is certified by the International Association of Athletics Federations (IAAF), making Alice Smith the first international school in Malaysia and the third in the world to receive this standard of certification.

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WORKING Knowledge

n January 2016, Malaysia joined 30 other countries in signing the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-byCountry reports (CbCr). The MCAA follows on from the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan 13. BEPS Action Plan No. 13 is expected to have far-reaching implications on the documentation and reporting aspects of MultiNational Corporations. This is coupled with the intensified transfer pricing audits undertaken by the Inland Revenue Board (IRB) following the announcement in November 2015 that it would keep a close eye on the development of BEPS. Aiming to provide a legal perspective on the many aspects of documentation and reporting under BEPS Action No.13 and to provide an explanation of Trans-Pacific laws in Malaysia and other ASEAN jurisdictions, BMCC and Lee Hishammuddin Allen & Gledhill teamed up recently to present a specialised talk on this complex subject. Headlined “Insights into Managing Transfer Pricing: A Legal Perspective”, the talk was delivered by S.Saravana Kumar (above), Partner in Tax, GST & Customs Practice. S.Saravana Kumar has the distinction of successfully representing the taxpayer in Malaysia’s first landmark transfer pricing

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litigation. Regularly representing taxpayers in negotiations and out of court settlements with the Tax and Customs authorities, Saravana also ti serves as an Adjunct Professor of Tax at University Tenaga Nasional (UNITEN). “Despite cautioning that not all BEPS recommendations are relevant in the context of Malaysian tax policies, the IRB did underline the need for a robust transfer pricing (TP) monitoring plan,” he explained. CbCr can be used by country tax administration to assess high-level TP risks and other base erosion and profit-shifting re-

lated risks. This includes assessing the risk of non-compliance by members of the MNE group with applicable TP rules. BMCC members were amongst the attendees to this unique tax insights presentation from this veteran speaker, before enjoying a lunch and networking session at the firm’s office.

www.lh-ag.com

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Suresh joined ServisHero in May 2015 after having co-founded Zeek Delivery Malaysia. He is currently the Head of Business Development. Driven by the goal of ‘Empowering Local Businesses’, he now oversees the growth management of Heroes, the pillars of ServisHero, making the company what it is today.

ENGAGING Tech Gen B MCC joined forces with TeAM - Technopreneur Association Malaysia - recently to host the first ever TechGen, a new brand of interactive talks and networking sessions aimed at the contemporary tech-generation. Held at The Co at The Row, and supported by Bell Pottinger, the pioneering event was well-received by all who took part. Divan Vasudevan of Uber Malaysia and Suresh Tan from ServisHero were the stars of the day as they enlightened and entertained the floor with facts, visuals, insights and stories behind the rise of the start-up companies they have come to call home.

Followed by a lively Q&A and networking session with good coffee and canapés thrown in, guests comprising members and non-members alike lingered to continue their conversations with new-found contacts. Following the success of this first TechGen event, there will be sequels to follow - watch this space!

At Uber, Divan is responsible for managing relationships with the company’s most crucial external partners - on both the policy and commercial side of the business. He was once a litigator, later on dabbling with business development for Berjaya Corp before finally joining Uber in Malaysia to take on the challenge of growing what was then a relatively unheard of new-age service provision.

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Cover Story

Food Futures Global populations are rising, our environment is under threat, water is in increasingly short supply as the world struggles to feed and nourish its people. All these factors are placing ever more pressing demands on the food & beverage industry. Producers need to rise to the challenge while still producing quality output and meet the discerning tastes of the modern consumer. Add to that the growing concern over food security. Not to mention the impact of the recent decision by Britain to leave the EU. Plus the highly competitive nature of the F&B retail industry and the future looks tough on a number of fronts. Turn the page to read more.

Issue Issue33--2016 2016

Cover Story

Together with the usual cases of substitution in seafood, spices and herbs, through to diluted olive oil and honey, food fraud to optimise profit is here to stay. The threat will be dependent on the type of ingredient and its form, with powdered ingredients being at the highest risk. Other threats are more economic in nature. They can be the result of:

Food FRAUD W

e’ve all heard about financial fraud, identity fraud but food fraud? Yes. It’s a scary prospect. Increasing food prices and an ever more complex global food supply chain present an irresistible opportunity for fraudulent activity. Food fraud is the intentional adulteration, dilution, substitution, mislabelling, parallel trade, theft or counterfeiting of food ingredients or products for a financial gain. The impact of food fraud ranges from harmful adulteration potentially resulting in illness or death, to unethical substitution of inferior products which can destroy brand reputation or even the reputation of an entire exporting country. In all cases, the consumer does not get exactly what they expected or what they have paid for.

Identifying Threats & Vulnerabilities Food fraud has always been present, however in the past it was largely a sporadic threat to a small number of high value food items. And, with food fraud investigations and prosecutions by inter-agency, crossborder authorities getting increased attention in the media, consumers are growing wary.

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Anticipating food fraud threats requires you to think like an opportunist. If there is money to be made by fraudulent activities, then the who, when and how need to be identified. There is industry consensus that a combination of Threat Assessment Critical Control Point (TACCP) and Vulnerability Assessment Critical Control Point (VACCP) assessments, together with food safety (HACCP) assessments are necessary to manage this risk. Yet, there are gaps in the current industry knowledge and skills to consistently apply the methodology and tools and, as such, the resulting assessments may not identify or correctly prioritise the threats. As has been seen with HACCP, it will take time for the methodologies and tools to filter through all levels of the food supply chain. Researching threats and vulnerabilities unique to your product, ingredients, process and supply chain is time-consuming. The amount of information on previous incidents may be overwhelming. Alternatively, there may be no precedent to substantiate a possible threat. But the lack of a precedent doesn’t suggest that an ingredient is not vulnerable. Your ingredient may be the one to set a precedent.

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unexpected changes to crop yields due to unpredictable weather trends

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supply/demand imbalances

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escalating commodity of raw material prices

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currency fluctuations impacting longrange futures buying/selling of commodities

All of these situations can foster the economic environment for fraudulent behaviour to sprout.

Managing Threats & Vulnerabilities Regardless of the methodology used, assuming sufficient rigour is applied, the outcome of the food fraud assessment should be the same. The potential threats need to be imagined and prioritised, with controls and actions applied to minimise the risk to the product, company and the consumer. There are several challenges in doing this: Assessment: a resource-hungry process that needs the combined knowledge and skills of a multi-disciplinary team with expertise in food science and technology, procurement, supply chain logistics, human resources and potentially site security and information technology. Informed choices need to be made on suppliers when there are multiple sourcing options and seasonal variations in ingredients. Often the level of risk will be conversely related to changing economies; the rising cost of the ingredient or the cost of production relative to the alternative substitutes. Prioritising: often difficult as risk methodologies are different to those used in traditional risk assessments such as HACCP. The potential impact, its likelihood and the ability to detect the threat need to be assessed and assigned a risk rating. Ironically, many ingredients considered a low food safety risk may in fact pose a high food fraud risk. The ability to anticipate or predict a threat is as vital as the actual practicality of testing. Detection is not always possible and adulteration, substitution or dilution is often found after receipt and use.

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Horse meat in beef lasagne?

Olives coloured with copper sulphate?

Controls and actions: Threat-specific counter measures such as inspection, testing and monitoring can only be determined after the threat assessments have been completed. Changing suppliers, ingredients or the country of origin is not always an option. There may only be a few commercially viable alternate suppliers as the production of ingredients globally is constantly being centralised. Continuity in supply needs to be considered as does the cost impact on the pricing of finished products.

surveillance, reporting and prosecution of food fraud. Transparency and access to information within the supply chain will be critical.

Legal defence and the evidence required to defend a prosecution for food fraud will require all reasonable precaution and due diligence to be demonstrated. Although this defence is well understood from a food safety perspective, the amount of evidence required for food fraud is not yet clearly established. Ongoing resources: needed for continual threat assessments to be made so that they remain current. Any changes to ingredients, suppliers, country of origin, product formulation and new or emerging food fraud risks need to be assessed as they occur. Building - and maintaining - a high level of trust with suppliers is critical. Food fraud always involves intent.

Challenges A significant challenge for the food industry is how food fraud should be managed by all involved in the food supply chain. Prevention of food fraud by its nature will be driven by industry, as many countries simply do not have the regulatory framework for the

There are many questions to be answered. Is it a fad and will there be an initial rush of industry interest in food fraud prevention that then becomes financially unsustainable in our highly competitive retail food markets? What will the future of food fraud look like in an industry generally driven by high volume and low profit margins? How will these costs be passed on to the consumer? Will there be reduced trade across global markets that will be counterproductive to future innovation of novel foods? These challenges may drive an increase in product certification or type testing of ingredients to verify authenticity. High value meat products with provenance claims are already using technology to track individual portions supplied to high profile restaurants to guarantee the authenticity and quality.

Counterfeit sugar contaminated with fertilizer? procurement. A change in the country of origin can significantly affect the food fraud risk as different countries have variations in their production standards and more. It can also affect accuracy in labelling for provenance claims.

The Future Systems to manage food fraud will lead to an increased awareness of specific high-risk ingredients. The success of these systems will depend on the proactive management of potential threats, while still allowing access to high-quality, globally sourced ingredients at competitive prices. It will be essential that all sectors of the food supply chain have a sustainable yet effective system to identify and manage food fraud threats in a constantly changing market. Companies will require personnel to specifically monitor food fraud and new technologies for tracking specific food ingredients and products in the global supply chain will emerge.

Compliance The need for formalised preventative food fraud systems has been driven by several Global Food Safety Initiative (GFSI) standards. Auditors have found that although the industry has tried to meet the intent, there are challenges as the knowledge and skill base is often limited to a few people within a company. There is a tendency to underestimate the potential for food fraud and an overreliance on approved supplier status to streamline processes at site receipt. Many companies no longer thoroughly check ingredients on receipt if sourced from an approved supplier. Physical checks of ingredients during audits often find changes to the country of origin have occurred without suppliers given any notice to

Capacity building to equip staff with the knowledge and skills to actively consider food fraud in a measured way, will be the key to future success. Could your business and brand names cope in the face of a food fraud crisis? What measures have you taken to prevent this happening, now and into the future? BSI Advisory Services offers full supply chain management review, revision and implementation support.

www.bsigroup.com/en-MY

Issue 3 - 2016

Cover Story

PALM OIL

Optimistic Outlook? According to a report by Bloomberg, palm oil inventories in Malaysia fell to the lowest in close to two years in May 2016, due to the continuing effect of the El Nino, as well as higher demand during Hari Raya.

M R Chandran, Advisor to the Roundtable on Sustainable Palm Oil and its former vice-president, shares his views with InvestKL on the outlook for the global and Malaysian palm oil industry.

he oil palm crop was first brought to Malaysia by the British in the early 1870s. Today, Malaysia, accounting for about 40 percent of global production and 44 percent of world exports, is the world’s second largest palm oil producing country after Indonesia. In 2015, the country had 5.64 million hectares of palm oil planted area, according to data from the Malaysian Palm Oil Board. Malaysia exported 25.37 million tonnes of oil palm products in 2015, generating RM60.17 billion in revenue, with its largest export market being India with an intake of 3.69 million tonnes or 21.1 percent of total palm oil exports. Malaysia’s palm oil industry provides employment to over half a million people and livelihood to about one million Malaysians.

The El Nino Effect In 2015, a prolonged drought due to the El Nino phenomenon resulted in a drastic reduction in the supply of crude palm oil (CPO). According to analysts, CPO production in May 2016 and the first five months of the year were 24.6 percent and 16.8 percent lower respectively, compared to the corresponding periods a year ago, due to the impact of the extreme dry weather conditions brought about by El Nino. In April 2016, renowned palm oil expert Dr James Fry said that global production could fall by more than two million tonnes this year. He added that production could also see a further decline of 0.4 million tonnes due to the La Nina phenomenon, expected to bring heavy rainfall and flooding, during the third and fourth quarters of the year.

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It said stockpiles declined 7.8 percent to 1.66 million metric tons from the previous month, based on its survey of planters, traders and analysts.

Production Deficit Pushes Up Prices A total of 62.5 million tonnes of CPO were produced in 2015, of which about 20 million tonnes were from Malaysia and 33.4 million tonnes from Indonesia. This year, Malaysia is projected to produce about 19.2 million tonnes, Indonesia; 33 million tonnes and the rest of the world is set to generate 9.3 million tonnes, totalling some 60.5 million tonnes. For the first time since 1988, we are going to see a contraction in production. Average annual growth in production has been at about 2.2 million tonnes, and this has been sufficient to match rising global demand. With the anticipated 1 million tonne drop in production, coupled with the 2.2 million tonne loss in annual increase, global production will see a deficit of about 3.2 million tonnes in the market this year. CPO stockpile levels are also at a low, with Malaysia having about 1.65mil tonnes in May, Indonesia with 2.3 million tonnes, China 0.53 million tonnes and India about 0.5 million tonnes. This leaves the total stockpile level at only about 4.9mil tonnes in the world’s two biggest producers and importers.

Fall In Demand From China However, although stock levels are at a low, prices have not gone up as much as expected. The depreciation of the ringgit has provided support to the price of CPO, which hovered at about RM2,600 per tonne in early June. If the ringgit were stronger against the US dollar, we would have seen CPO prices at much lower levels. The main reason prices have not gone up as high as anticipated is because of the significantly lower demand from China. Demand has not been good, because of the geopolitical and economic scenarios. The slowdown in China is a big factor.

China’s decision to release its inventory of rapeseed oil, which it has been stockpiling since 2009, also put a spanner in the works for demand for CPO from the country. This is why we are seeing less imports of palm oil from China - demand has fallen by more than 60 percent year-on-year mainly due to the release of rapeseed stockpiles. However, India, having emerged as the world’s biggest importer, has really helped keep prices up during this time. Other supporting factors for CPO prices are higher demand from Indonesia, mostly due to the country’s biodiesel mandate, as well as the higher crude oil prices. We expect prices to average between RM2,470 and RM2,500 per tonne this year, depending on how badly Indonesian production is impacted by El Nino. In 2015, CPO prices traded at around RM2,172 per tonne, and fell to a low of RM1,975 in August 2015.

Outlook For Malaysian Industry With an impending La Nina, however, we do not expect significant damage to production due to the weather phenomenon which brings heavy rainfall and flooding. La Nina – if it happens – will not have any impact this year. It will only interrupt harvesting as it delays the process as workers cannot access the flooded plantations. A much bigger issue for the Malaysian palm oil industry at the moment is a shortage of workers. The country is short of some 25,000 workers in palm oil estates. In March 2016, the Malaysian Government announced a decision not to allow any more foreign workers into the country, but the ban was lifted two months later following protests from various industries. Another potential game-changer is the increased biodiesel mandates, which is expected to provide the floor for the price of CPO. The Government’s move to upgrade from B7 to B10 biodiesel for the transportation sector, as well as the introduction of B7 for the industrial sector, is expected to further reduce the country’s palm oil stockpile. This, in turn, will provide support to CPO prices. According to the Ministry of Plantation Industries & Commodities, the biodiesel mandates are expected to contribute an annual consumption of 709,000 tonnes of CPO in Malaysia.

www.investkl.gov.my

Cover Story

applied for determination of the content of crude protein. The conversion factor to determine the protein content on the basis of the total nitrogen content depends on the type of protein present in the sample. Taking into account that here the soy protein content has to be determined, a conversion factor of 6,25 should be applied.

FOOD: The Brexit Effect? By Jon Golding Absolute Financial Solutions

he Brexit vote has thrown markets into turmoil. None will be affected more than United Kingdom and European Union farmers. Farmers benefit through generous subsidies from the membership of the EU. Article 50 paragraph 3 of the Lisbon Treaty states: “The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification referred to in paragraph 2, unless the European Council, in agreement with the Member State concerned, unanimously decides to extend this period.” EU subsidies will most probably be withdrawn within the two year period and the UK’s government will either have to replace the EU subsidies and recoup payments through greater taxation or stop subsidies altogether and watch prices rise. The latter option is probably a step too far. Farming in the UK is an important part of the domestic economy, exports to countries abroad and generates substantial income. UK farms also employ large numbers of Europeans who contribute to the UK’s GDP by reason of their mobility and acceptance of working conditions. If this freedom of mobility of the workforce is curtailed then farming employment costs will increase as farmers may have to obtain work permits for their European workers or increase wages to attract locals into farming. The cost of this will have to be met in some way and this will no doubt result in an increase in prices to the consumer.

Following the UK’s decision to leave the EU, it will soon be able to negotiate its own trade deals. At the 2005 Commonwealth Summit in Malta, the heads of government already endorsed pursuing free trade among members on a bilateral basis. In October 2012, a paper was released "Common Trade, Common Wealth, Common Growth" at the UK Conservative Party Conference in Birmingham, England. The following day the then British Foreign Secretary William Hague stated that the Commonwealth, which had been neglected by previous UK governments, presented "enormous opportunities" for the nation. On the current trade agreement situation in the EU, Tim Hewish, one of the authors, stated:

Current Tax Issues If subsidies are to be continued by the UK then the cost of these will have to be found from elsewhere. Farmers who farm in the UK and EU enjoy substantial tax reliefs which apply only to farming enterprises. UK owners of a working farm would expect to receive 100 percent relief from inheritance tax (IHT) on the land and other properties associated with that activity (a saving of 40 percent in the value of inherited assets, being the tax rate for inheritance). In addition. there are capital gains tax and income tax reliefs that benefit farmers on an ongoing basis. These reliefs are historical and were brought in to prevent the break-up of farms to pay death duties but may now have to be reviewed.

The Commonwealth Option Britain’s entry into the EEC in 1973, and its evolution as a member state of the European Union (EU) has meant that up until now the UK cannot independently enter into negotiations with Commonwealth states to establish a free trade agreement. Instead, the EU, as a representative of all its members, negotiates collectively. As an example, the HM Revenue & Customs tariff notice on soya-based beverages contains information about how to correctly classify certain goods for import and export: The Kjeldahl method laid down in Commission Regulation (EC) No 152/2009 should be

“At present, the UK’s ability to create trade deals is given away to the EU Trade Commission. In addition, the UK has surrendered its seat at the World Trade Organisation. The UK is forced to hide behind a tariff wall, which is protectionist and does not allow British goods to compete on the world stage. “This has to fundamentally change if the UK is to transform itself into an independent global trader. Other economic partnerships, such as ASEAN or NAFTA, do not confine members to that specific bloc; consequently why should the UK continue to persist in obsolete union of European powers?” With the UK voting to leave the EU, the tax reliefs relating to the UK and EU farms will need to be reviewed. One option may be to replace the reliefs for EU farming with a similar option for Commonwealth farming initiatives. This already applies for businesses who own overseas enterprises which attract 100 percent business property tax exemptions. This ‘Commonwealth option’ encourages overseas expansion with joint farming ventures and investment creating foreign currency advantages. Jon Golding ATT (Fellow) TEP, UK Tax & Trusts Adviser, has over 40 years’ taxation experience and has authored many books on the subject. Email: jon@absolutefsl. com Tel: +603 6203 1960

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Cover Story

New Lease Of LIFE I

n America and the UK, suburban malls are the unsexy playground of generic brand names and franchises. In comparison, Klang Valley’s retail and F&B landscape from the mid 1990’s until the end of the ‘noughties’, malls have been where the action is. And Klang Valley has a shocking supply. In 2014, Kuala Lumpur had 11 sqft of retail mall space per person compared to only 4.5 sqft per person in Singapore! Oversupply of retail space coupled with overall economic uncertainty has made F&B businesses more cautious about opening up

in any mall that approaches them. The six million KL-ites are growing weary of malls, especially those offering more of the same brands, experiences and hassles. They want something fresh. There are some bright stars in the sky however. Here are two unique retail success stories where the landowners have undertaken extensive urban regeneration projects to refresh the tenant mix and modernise the architecture of their development while purposefully retaining some elements of the original concept.

The Row, Jalan Doraisamy The Row, Jalan Doraisamy is located off Jalan Sultan Ismail, next to The Sheraton Imperial amd was formerly known as Asian Heritage Row. This was KL’s “it” venue in the early 2000’s with crowd pullers like Bar SaVanh, The Loft and Bar Blonde. Questionable tenants, unscrupulous parking “managers” and undesirable patrons however led to its demise within a few years. What was left was a row of ramshackle heritage shop houses struggling to compete with other entertainment hot spots in downtown KL. Fast forward ten years and the landowners brought in a mix of foreign and local talent to re-conceptualise these twenty-two 1940’s shop houses as a mixed used devel-

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Cover Story “Urban regeneration is about reversing economic decline by improving the physical structure, and, more importantly, the economy of those areas.” www.theguardian.com opment comprising indie retail and F&B outlets, offices, an events space and a co-working space catering to young, creative urbanites. Relaunched as The Row, this development positions itself as the antidote to KL’s ubiquitous office towers and malls. It seeks to retain the charm and charisma of the original structure while simultaneously infusing current design concepts. “The Row aspires to support urban regeneration through adaptive reuse. It embraces a fresh redevelopment approach that focuses on the co-existence of old and new and the introduction of greenery and natural light throughout.” www. therowkl.com As the sole marketing agency for The Row, Zerin Properties saw excellent demand from prospective F&B tenants in particular. Tenants such as 2OX (French bistro), Timbre (live music bar and restaurant), Butter an Beans (café), Lima Puloh (nyonya restaurant) and Baachus (tapas bar) immediately understood that The Row’s unique features would set it apart from other retail destinations in the city.

Plaza Batai, Jalan Batai, Damansara Heights In 2015, after a year or so of construction, Plaza Batai reopened to the public amidst some melancholy from local Damansara Heights folk due to the relocation of businesses they had known for decades such as Hock Lee’s Mini Market, the corner mamak restaurant, and two famous kopitiams. And with the façade looking very tired, the entire development was long overdue for an upgrade. From a leasing point of view, demand was high, particularly from F&B tenants who were hungry for locations that had “a modern shop house feel” but with management and infrastructure features similar to a typical mall.

To that effect, Plaza Batai provides: •

Ample surface parking

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Controlled tenant mix to ensure complementary businesses and reduce unhealthy competition

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Modern façade

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Uniform walkways and common areas

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Uniform signage

Well before completion of the regeneration, Ben’s Independent Grocer was secured as the anchor tenant. F&B options include Ben’s General Store, Ekamai, The Yellow Brick Road, Sam’s @ Batai, Sitka and Torii. Selected legacy tenants remained to maintain some continuity for the benefit of regular patrons such as Restaurant Shangri-La and Cheri Pink Flowers and Gifts.

www.zerinproperties.com

And the delightful heritage arts and crafts Peter Ho Boutique & Café has made The Row its new home following redevelopment of its former site. Phase 1 and 2 of The Row is over 90 percent occupied and 70 percent of Phase 3 has been spoken for with a several months to go before completion. Issue 3 - 2016

Cover Story

Staying SAFE Culinary G EXPERIENCE

ood health is central to human happiness and well-being. Employers everywhere are encouraged to think about the health of their staff and how they can act to improve food safety. Foodborne and waterborne diarrhoeal diseases kill an estimated two million people a year.

n over a decade of operation, culinary excellence has been a key component of the success of Kuala Lumpur Convention Centre. It has been one of the main drivers behind the Centre becoming recognised as Malaysia’s premier convention venue and one of the leading business events destinations in Asia-Pacific.

A professional culinary team focuses on the delivery of flexible, innovative and valueadd solutions that are customised to clients, in a well-maintained and world-class facility strategically located in the KLCC precinct.

Traveller's diarrhoea and other intestinal infections can affect any traveller. However, they do occur more commonly in travellers who visit developing countries. Contamination of food and water with the bacterium e coli causes most cases of traveller's diarrhoea which can present with a range of symptoms from mild to severe.

The Centre’s award-winning 51-strong culinary brigade is always looking to innovate and ‘think outside the box’ to enhance the guest experience and further differentiate the venue from its competitors. This commitment to culinary excellence has resulted in numerous accolades, including the Centre’s second Chaîne des Rôtisseurs Malaysia Chapter’s ‘Dato Lau Foo Sun Excellence in Dining Award’ 2015 and the Confrerie de la Chaîne des Rôtisseurs’ Bailliage de Malasie Fine Dining Award. Executive Chef, Richmond Lim, says, “Food is very important, especially here in Malaysia where it is often the centre-piece of an event. We believe a memorable culinary experience should go beyond just tastes and flavours, and satisfy all five senses to make an impactful impression. For this reason, we sit down with every client, to better understand their requirements so we can identify that ‘sweet spot’ between their budget and the best quality of produce available in the marketplace, as well as how we can customise the menu to suit their event specifications, no matter the occasion or format.” One example is the Centre’s ‘Banqueting Experience With A Twist’, created to provide greater diner engagement and do away with having to queue for food. “This puts a twist on the traditional banqueting experience with a tailor-made menu of appetisers and desserts already at the table when guests are seated, followed by the main course of a hot sharing platter. We have redefined the art of dining, with the dynamics now focused around the dining table.” explains Chef Richmond.

www.klccconventioncentre.com

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PREVENTION Avoiding Contaminated Water Water is a frequent source of intestinal infection, since supplies are often contaminated by human and/or animal faeces. Most cities and large towns have large piped water systems, but the water is only safe to drink if it has been fully treated and chlorinated. Ask locally if water is safe to drink. Where there is a risk that it may be contaminated, use the following guidelines: •

Bottled water and drinks are normally safe, especially carbonated drinks.

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The outside of cans or bottles may be contaminated, especially if stored in ice. Clean and dry bottles and cans before drinking from them or pouring the liquid into a glass.

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Remember that ice may have been made from contaminated water and therefore may not be safe.

Cover Story

“Foodborne and waterborne diseases kill an estimated

2 million people a year.”

CORRECT

Consumption by Chin Yee Hiew Biodome Business Support

he demands on the agricultural and horticultural sectors to feed the growing populations worldwide presents a number of challenges. When vast amounts of food waste are going to landfill causing issues with harmful leachates into water courses and greenhouse gases, this is a critical issue to be addressed.

The easiest way is not to waste food in the first place and purchase only what is required which not saves money but also alleviates demands on suppliers and reduces greenhouse effects as well.

•

Use safe water for brushing teeth and for washing raw vegetables and salad.

•

Don’t drink water from open wells or rivers.

Selecting Safe Food Choosing safe food will reduce the risk when travelling in developing countries: •

Always wash your hands with soap before eating, or use a hand sanitizing gel/lotion.

•

Ask locally which restaurants and hotels serve safe food. Select food that is thoroughly cooked while fresh and served very hot, since heat usually kills bacteria.

•

Avoid undercooked or raw meat, fish or shellfish, even if they are the local delicacy. Remember that certain types of fish, such as puffer fish, can be toxic to humans.

•

Avoid food sold by street vendors or other potentially unhygienic establishments.Avoid food that has been left unrefrigerated for more than two to four hours, especially if it was kept warm.

•

Only eat raw fruit you have peeled yourself - oranges, bananas, mangos, avocados, etc. Avoid salad / raw vegetables in restaurants.

•

Only drink pasteurised cow, sheep or goat milk. Avoid dairy products (such as ice cream, butter and cheese) if you do not know if they have been made from pasteurised milk.

Management of Travellers' Illness Most cases of travellers’ diarrhoea will go away on their own within a day or two. Replace fluids lost by continuously sipping clear fluids such as water, soft drinks or diluted black tea. Avoid dairy products, alcohol and coffee. Occasionally, body fluids cannot be replaced quickly enough and an infected person becomes dehydrated. This may require intravenous re-hydration treatment, especially if there has been significant vomiting or extreme diarrhoea which needs urgent medical attention. Children are very susceptible to dehydration. Seek medical advice early if children are affected.

This message has been widely publicised however there are still vast amounts of food waste going to landfill. So what do we do with it? We can of course leave this to produce harmful leachates and gases but one initiative is to utilise food waste in anaerobic digestion plants to produce soil improvers, heat, gas and electricity. An example of this are plants that utilise POME (palm oil mill effluent) as the feedstock. This reduces carbon footprint and provides secure electricity generation at the mills. Biodome Asia, part of KIRK GROUP and global specialist in liquid & biogas storage solutions, has been involved in building such plants. These plants utilise food waste with zero waste being produced in the process. Commercial garden products and fertiliser manufacturer Richgro is one such company. At its plant, food waste is used to produce digestate which enhances the compost they make. It is also used to generate water, a commodity that has to be saved in Australia, heat for growing blueberries in the greenhouses on site as well as the carbon dioxide from the engine and electricity that is utilised on site for the compositing business. Any excess energy is exported to the grid. This approach also utilises the plastics and metals that are sorted to remove the organics required for the anaerobic digestion process by recycling these as well. This award-winning and pioneering plant in Australia cost in the region of RM20 million but has a payback both commercially and environmentally that is highly satisfactory to the owners. This is just one way of stopping environmental issues arising from food waste whilst securing energy that can be utilised either on site or distributed via an electrical grid.

www.biodome-asia.com

Visit www.internationalsos.com/medical-publications

Issue Issue33--2016 2016

*http://store.bmiresearch.com/malaysia-food-drink-report.html

Issue 3 - 2016

Cover Story

BRAND Protection M

alaysia’s food & beverage industry is growing rapidly, with revenue of over EUR 25 billion in 2015 and an annual growth rate of 7.6 percent, making the country a very attractive trade destination for European SMEs. Malaysia has a large Muslim population and has, therefore, strong consumer demand for imported beef, mutton and other halal products. This means that importers should be aware that all slaughtered food must possess halal certification and adhere to specific labelling requirements. Malaysia’s rapidly growing middle-class constitutes a consumer base that is increasingly health-conscious, pays attention to the nutrition value of the food, prefers minimally processed fresh food and tends to trust international brands when it comes to packaged food.

By Helika Jurgenson South-East Asia IPR SME Helpdesk

sue. ‘Bad faith’ registration means that a third party, not owning the trade mark, registers on behalf of an incoming SME, thereby preventing the legitimate owner from registering that trade mark. These unscrupulous companies would normally then try to resell the trade mark to its owner at an inflated price. Trade mark registration is filed with the Trade Mark Division of the Intellectual Property Corporation of Malaysia and the whole process usually takes about 12 months to complete. Even though Malaysia offers protection for unregistered well-known trade marks (wellknown in Malaysia) under the law of passing off, which protects the goodwill and reputation of the business from infringement by dishonest competitors, it is still advisable for SMEs to register their trade mark in order to fully benefit from brand protection.

Together with rapid economic growth, counterfeiting in food products has also increased dramatically in recent years. SMEs entering the market should therefore take steps to ensure that their Intellectual Property or IP rights are protected, when selling their food products to Malaysia.

Geographical Indications (GIs)

These include Trade Marks, Geographical Indications, Design and Trade Secrets.

Examples include Bordeaux wine, Parmigiano-Reggiano cheese and Parma ham. To register a GI, the registrant must belong to a collective organisation representing a group of producers in the area that produces the goods they want to register. The European SMEs should thus ask their GI organisations to register the GI in Malaysia.

Trade Mark Protection Increasing brand consciousness, concerns about food safety and the relatively high number of counterfeiting in the country mean that brand reputation is especially important in Malaysia. A trustworthy brand can be critical to the success of food & beverage products as a company’s trade mark functions as a badge of quality. Malaysia adopts a ‘first-to-file’ system, meaning that the first person to register a trade mark owns that mark, regardless of the first use. It is particularly important therefore for SMEs to register trade mark in Malaysia because trademark piracy due to ‘bad faith’ registration is a serious is-

In the food & beverage sector, it is also important to protect GIs as these are valuable for branding goods in Malaysia, especially as GIs can increase trust towards certain brands, since they identify the country, region, or area from which goods originate and to which a given reputation is assigned.

Protecting Packaging Creative packaging style is another key element for the success of the brand in Malaysia. It is, therefore, important to protect the design aspects of products to prevent counterfeiting and replication. Besides using trade marks, SMEs can protect their packages with industrial design patents. The design may consist of three-dimensional features such as the shape and configuration of an article, or two-dimensional

features, such as pattern and ornamentation. Industrial designs in Malaysia have a worldwide novelty requirement, meaning that for a design to be registrable, it must not have been disclosed to the public in any way at any time before the application. Industrial designs are protected for five years from the filing date, with a possibility of renewal up to five times, subject to a renewal fee.

Protection of Trade Secrets A trade secret is non-public information that is financially valuable and guarded with confidentiality measures. In the food & beverage industry, trade secrets may refer to ingredients or processing methods that are critical to the taste, texture, appearance and smell of a product. A famous example is the Coca Cola formula. In Malaysia, trade secrets are best protected by a series of confidentiality clauses, physical barriers, and non-disclosure agreements (NDAs). NDAs allow European SMEs to take legal action in case of disclosure of the information and stop further disclosure of trade secrets.

The South-East Asia IPR SME Helpdesk supports small and medium sized enterprises from EU member states to protect and enforce their Intellectual Property Rights (IPR) in or relating to South-East Asian countries. The Helpdesk provides jargon-free, first-line, confidential advice on IP and related issues, along with training events, materials and online resources. SMEs and SME intermediaries can submit IPR queries via email to question@ southeastasia-iprhelpdesk.eu and gain access to a panel of experts. The South-East Asia IPR SME Helpdesk is co-funded by the European Union.

www.ipr-hub.eu

Issue 3 - 2016

Business Insights

Issue 3 - 2016

In The Spotlight

TOTAL Security BMCC sat down with Ace Wong, CEO of Panther 911 and Panther Mobile, to get the inside scoop on staying secure. of police time and resources. Many times, false alarms have been triggered by pets, children or faulty equipment, depriving neighbours of a good night’s rest. Through the video footage, the face, attire or features of the intruder is captured, which the police can then use as evidence and detain suspects that match the profile within the area of the crime.

BMCC: What makes Panther 911 security services unique in Malaysia? Panther 911 is the only security service company in the Malaysian market to offer 24/7 live video monitoring. Panther 911 is also the only one of its kind because we are the only security solutions provider willing to bear the high capital expenditure cost of providing free equipment hardware to the customer. We do not sell hardware, as many other security providers do. All our customers are based on a 3-year contract subscription basis, with only a one-time cabling and installation fee paid to the contractor. If any of the hardware fails, there will be a one for one replacement, no questions asked. Our services comprise of complete 24-hour video and audio protection, monitored by our command centre where all our agents have trained and graduated from the police academy. Our operations are fully supported by the Polis-Diraja Malaysia (PDRM). In 2013, we signed an MOU with PDRM because they trust us to filter genuine cases before reporting to the authorities, thus saving a lot

www.panther911.com

BMCC: Your hardware systems are more than just ordinary. Tell us how each of them connects to your Command Centre. Firstly, all our CCTV cameras are IP based, meaning they run on the internet feeding live footage directly to our Command Centre. Our cameras also come equipped with backup 3G sim and battery packs. Intruders nowadays are getting smarter, looking first for the security cameras and cutting off the internet lines and power source. However with Panther 911, we go one better. Our console boxes are initially connected to the owners’ internet service, however if cut, our 3G data plan backup sim will ensure that there is a continuity of video streaming through wireless broadband. If the power source is cut, the UBS battery continues to run for 2 hours, which is more than enough to capture the whole situation in real time. Once our Command Centre operatives see the intrusion, we’ll contact the owner, (we store up to 5 emergency contacts) and we’ll alert the nearest police station. We don’t call 999, because it will prolong the response time.

Our cameras are also effective in the dark, providing black and white footage in High Definition quality. Being HD, it can zoom in to defined features without image distortion, unlike many normal CCTV cameras in the market. Our cameras are small and discreet, but high capacity. Second is our portable panic button which can be placed anywhere in the home. The panic button connects to the owner’s mobile sim via bluetooth, thus it can be taken out of the home as well. Even if an emergency happens outside the home, pressing the panic button will prompt a response from the Command Centre, and if needed, the police. It is thus unique, as this service protects your premises, assets, as well as personal safety. A third unique component is the “3 Line Zone”. This is a grid of invisible infrared lines that are drawn at entry points like gates, doors, windows and rooftops. When turned on at night just before bed, or if the owner leaves on vacation, triggering the infrared lines will alert the Command Centre to evaluate if it is indeed a case of intrusion. A fourth and important component is our “Audible Voice Warning” feature. This is a speaker and amplifier installed together with the camera. Every operator at the Command Centre has a microphone, and upon observing an intrusion in progress, the operator can shout out a warning to scare the perpetrator away.

BMCC: You have recently launched a new product. Please share the details with us. Our new product is the Panther Mobile, a watch which serves as a panic button. It is a personal safety device where in case of an emergency, the panic button can be pressed at any time and anywhere. Your location will be displayed on our Command Centre screens and zoomed in right down to the very street. We will first call the emergency contacts provided before alerting the police or rescue departments. It is especially useful for children or the elderly in cases of kidnapping or sudden injuries.

Issue 3 - 2016

Business Insights

Issue 3 - 2016

Business Insights

INVEST SELANGOR I

nvest Selangor Berhad (Invest Selangor) is the investment promotion agency of the State of Selangor. As a one stop government agency, Invest Selangor has been tasked to provide information, advisory services, as well as start-up or expansion assistance to potential and existing investors into the State. Since its inception in 1999, Invest Selangor had as of the end of last year pulled in RM130.7 billion worth of investments into the manufacturing segment and hopes to augment the figure to some RM160 billion by the end of 2020. As of last month, Selangor contributed around 22.4 percent to Malaysia's GDP.

INVESTMENT CLUSTERS • Electrical & Electronics • Life sciences - inclusive of pharmaceuticals, medical offerings, biotechnology etc • Food & Beverage, machinery and equipment • Transport Equipment inclusive of aerospace and automation

Contributing around

22.4% to

Malaysia's GDP More intense emphasis and efforts are being placed on high-technology and capitalintensive industries to enable both the private and public sectors work in sync towards making Selangor a "Smart State”. Over the past four months, the Invest Selangor team has conducted meetings-cumnetworking sessions in more than 20 cities in Australia, Vietnam, South Korea, Thailand, Singapore, the USA, the Middle East, Japan and China, and latest being Indonesia to present what the State has to offer. This is in addition to cultivating choice partnerships and networking with potential investors, companies and local chambers of commerce. As part of efforts to position Selangor as the main business and trading hub in the region, as a gateway to ASEAN, Invest Selangor organises the Selangor International Expo. The event is recognised as an ideal platform for multinational companies, local and foreign, as well as SMEs to connect, collaborate to do business, produce and exhibit their products and services. This year, three industries have been selected to be the focus for the Expo: Halal, Life Sciences and e-Commerce due to their significant growth opportunities, especially within the SME segment.

With a well-established investment record backed by state government support and an advanced commercial ecosystem in the region, Selangor is expected to continue to create a conducive investment-friendly environment through the creation of new networks, services and competitive incentives provided by the relevant investment agencies. To achieve the objective, the organisation is focusing on attracting investments into five main clusters: •

Electrical & electronics (E&E)

•

Life sciences - inclusive of pharmaceuticals, medical offerings, biotechnology etc

•

Food & beverage, machinery and equipment, and

•

Transport equipment - inclusive of aerospace and automation

This more focused approach also comes from the firm's rebranding exercise back in January 2015 which incorporates the five clusters as part of its rebranding initiative, being the most profitable with the most potential to grow.

In 2015, the Selangor International Expo attracted around 4,300 visitors with foreign participation coming from Belgium, China, Hong Kong, India, Indonesia, the Middle East, South Korea, Thailand and the UK. Tel: +603 5510 2005

www.selangorexpo.com

www.investselangor.my

Issue Issue33--2016 2016

Issue 3 - 2016

BMCC New Members

A warm welcome to our new members! Tay & Partners Full service corporate and commercial law firm established in Malaysia in 1989 with offices in Kuala Lumpur and Johor Bahru. Built on strong legal foundation and offering a comprehensive range of commercial services. Track record in high-level legal work for large local and international companies and government linked companies. Involved in many of the largest and most complex corporate and commercial, capital markets and mergers and acquisitions transactions and intellectual property and banking litigation. Ability to provide clients with legal, commercial, regulatory and strategic solutions built on experience and desire to understand the commercial context. Awarded for leading firm by The Legal 500 Asia Pacific, Chambers Asia Pacific, Asialaw Profile and Asian Legal Business. Tay Beng Chai Managing Partner

6th Floor, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur. Tel: +603 2050 1888 Fax: +603 2031 8618 Email: bengchai.tay@taypartners.com.my www.taypartners.com.my

Slido Award-winning audience interaction platform for meetings and events. Allows event organisers to crowdsource the best audience questions, get instant feedback via live polls and share presentations in realtime. Established in 2012, Slido has since helped to transform over 15,000 events and has worked with clients such as PwC, KMPG, Informa or Cisco. Recognised as Best Event Supplier of 2015 by Professional Publishing Association (PPA). Heyrovskeho 10, Bratislava, Slovakia 841 03 Tel:+1 650 489 9485 support@slido.com Slido Asia - Malaysia office: Tel: +6017 3554 525 Email: anna@slido.com

Anna Dvorakova APAC Manager

Bonsey Design Team of independent Brand Architects dedicated to building iconic brands with sustainable impact. Based in Singapore with offices in Malaysia and across Southeast Asia, track record in building brand loyalty and equity in Asia for 23 years. Core corporate brand strengths include brand strategy and positioning, naming, identity design, brand implementation and engagement / advocacy for internal and external stakeholders. E experts in packaging design, customer journey and retail brand environment, point of sale materials, signage and way-finding. Digital services include brand strategy, design, content creation and management for web and mobile, social media, brand engagement and awareness, founded on data and analysis. Also creates and manages e-commerce and digital PR programmes.

Jonathan Bonsey Creative & Man. Director

A3-18, Centrio Pantai Hillpark, Jalan Pantai Murni, 59200 Kuala Lumpur, Tel: +603 2742 1696 Fax: +603 2742 1687 Email: balqesh@bonseydesign.com www.bonseydesign.com

Farringdon Group Established in 2007, providers of Private Wealth Management and Personal Tax Planning solutions for individuals across Asia Pacific, Russia and Central Asia. Each employee works to provide the best advice and service to each individual client. Solutions are tailored to meet clientsâ&#x20AC;&#x2122; current needs and goals, and to adapt to any future needs as their situations change. In-house specialists in personal tax planning, portfolio and investment management, corporate tax and succession planning, offering truly comprehensive and bespoke service to meet full range of financial needs including International Wills, National Insurance Contribution Reports, Offshore Bank Accounts, Life Insurance & Assurance, Medical Cover and Investment Property. Suite 15.02, Floor 15, KH Tower, 8 Lorong P Ramlee, 50250 Kuala Lumpur. Tel: +603 2026 0286 Fax: +603 2026 0291 Email: syeomans@farringdongroup.com www.farringdongroup.com

Stuart Yeomans Chief Executive Officer

Max Lee SC SMDP (Harvard), MSC (Distinction), BA (Hons) Independent personal consultant specialised for SMEs. Providing services such as representation and initial market feasibility research since 2003. Specialising in cost effective strategy on market penetration in South East Asia; mainly serving UK customers from Authority, reputable professional organisations and Universities. Free on first time face to face consultancy and assessment. ME House, No. 22A, Jalan KE 8/1A, Emerald West, 48000 Rawang, Selangor. Tel: +6012 678 7229 [Whatsapp, Viber and WeChat] Email: maxleesc@gmail.com

www.alliedpickfords.com.my Issue 3 - 2016

Issue 3 - 2016

BMCC New Members

Medini Iskandar Malaysia Sdn Bhd (MIM) Master developer of 2,230-acre urban township Medini – a developing sustainable city in Iskandar Puteri, Johor. First established in 2007, has since transformed from being a master infrastructure manager, master planner to a developer of office buildings and township management service provider. Largest shareholder Jasmine Acres (60%)is is jointly owned by Khazanah Nasional Berhad and Iskandar Investment Berhad. Other shareholders are United World Infrastructure (20%) and Mitsui & Co., Ltd (20%). Works closely with federal and state government and associated agencies; Iskandar Regional Development Authority (IRDA), local councils and key stakeholders to establish Medini as the smart and connected central business district of Iskandar Puteri, Johor. With incentives uniquely available to Medini and a destination strategically located near Singapore, MIM welcomes investors seeking opportunities.

Dr Gerard Kho Iik Chief Marketing Officer

B- FF-02, Medini 6, Jalan Medini Sentral 5, Bandar Medini Iskandar Malaysia, 79250 Iskandar Puteri, Johor. Tel: +607 509 8500 ext 8502 Fax: +607 509 8501 Email: gerardkho@medini.com.my www.medini.com.my

Straits Interactive Sdn Bhd End-to-end solutions to enable companies achieve systematic Data Privacy & GRC (Governance, Risk Management & Compliance) and build trust with their customers and stakeholders. Adopting life-cycle approach to operational compliance and risk management to enable organisations to: •Assess risks and compliance status •Protect against these risks and implement policies/practices •Sustain compliance efforts through audits, training and ongoing monitoring •Respond to queries or incidents. Software-as-a-service platforms include SpiderGate Do-Not-Call Management System as well as operations platforms Data Protection Management System (DPMS) and GRACIAs (Governance, Risk Assessment & Compliance System). Professional services: advisory, audit, training and international certification. 58-3B, Block 3, Jalan Pahat G15/G, Dataran Otomobil Seksyen 15, 40200 Shah Alam, Selangor. Tel: +6017 385 0885 Email: benjamin@straitsinteractive.com www.straitsinteractive.com

Benjamin Shepherdson General Manager

Issue 3 - 2016

Members’ News Tesco Unveils New Store Concept

Standard Chartered Video Banking

As Part of Transformation Journey

For Personal & Priority Segments

Tesco Stores Malaysia recently unveiled its Next Generation Store concept as part of its overall business transformation journey designed to strengthen the business in the fastchanging retail industry. The transformation touches various aspects including structure, operations, people and store. Tesco Malaysia CEO, Paul Ritchie Ritchie said, “We have invested over RM50 million to transform six of our existing stores into the Next Generation Store concept which focuses on rationalising the size of our store and malls to make our customers’ shopping experience better.” Cheras, Tesco Melaka Peringgit, Kepong, Taiping, Station 18 (Ipoh) and Kajang are the six stores due for the transformation. Tesco Extra Cheras refurbishment which began back in April 2016, was completed in 12 weeks. With a RM6 million investment, the hypermarket floor size is now reduced by 38 percent to offer bigger space for mall tenants with an improved mix, creating an improved shopping experience for customers all under one roof. www.tesco.com.my

Standard Chartered Bank has become the first bank in Malaysia to launch Video Banking to both Personal Banking and Priority Banking segments. Clients using the Video Banking service will be able to securely interact with banking consultants via video, audio and chat, while enjoying the flexibility and convenience of banking from any location using their laptop. The new solution enables banking consultants to share screens with clients while speaking with them. Both consultant and client will also be able to upload and share documents. Priority Clients can have “face-to-face” discussions with investment advisors to explore new wealth management opportunities. This is especially convenient for clients in markets such as Malaysia where branches are spread out geographically. Malaysia and Singapore are the first two markets to go live, served by video banking consultants based at the Bank’s Client Contact Centre in Menara LYL, Petaling Jaya. The service will be rolled out in Bangladesh, China, Hong Kong, India, Taiwan, Kenya and the UAE by end of 2016, reaching five million retail clients across Asia, Africa and the Middle East.

New Appointments At KL Convention Centre Kuala Lumpur Convention Centre has announced the appointment of Sudesh Sharma as Deputy Director of Operations. Sharma has over 25 years’ experience working in the hotel, banquet and convention industry in various locations including Singapore, Bali and Malaysia. Sharma’s most recent position was as the Director of Food & Beverage at Sutera Harbour Resort in Kota Kinabalu, Sabah. In his new role, Sharma will work hand-in-hand with and assist the Director of Operations on planning, implementing, monitoring and improving the effective service delivery of the Operations Department. Jenice Phung has also joined as Head of Conventions & Conferences Sales, to lead the sales team responsible for securing international and national association conferences and conventions. Jenice brings over 17 years of experience in the hospitality industry working in progressive roles with leading international hotels, and has particular expertise in catering sales, corporate events, and international conference and convention sales. www.klccconventioncentre.com

Issue 3 - 2016

Aaron Loo, Country Head, Retail Banking, Standard Chartered Bank Malaysia, said: “Video Banking is digital with a human touch — giving clients the option of self-service with the added feature of a specialist who can assist them with their online experience. Now you don’t have to come in to a branch to talk to somebody face-to-face. We are investing in technology that makes banking secure, simple and personal for our clients.” www.sc.com

Garden International School Awarded Primary School Quality Mark Garden International School has been awarded the Primary Science Quality Mark (PSQM) in recognition of its quality of teaching and learning in science. Primary Science Quality Mark is the only national award scheme to develop and celebrate the quality of science teaching and learning in primary schools. Schools achieve a PSQM award through a year-long process of initial audit. The PQSM scheme enables schools to work together to share good practice and is supported by professional development led by local experts. It encourages teacher autonomy and innovation while offering a clear framework for development in science subject leadership, teaching and learning. Led by the University of Hertfordshire School of Education in partnership with the Primary Science Teaching Trust, it is supported by the Royal Society for Chemistry, the Ogden Trust and the Association for Science Education. www.gardenschool.edu.my

Members’ News Sunway Hosts Festival Of Learning Lancaster MBA Jumps In World Rankings Sunway University recently partnered with the UK’s Bournemouth University to host the annual Bournemouth University Festival of Learning, which this year featured sessions running simultaneously in the UK, China and Malaysia. Throughout the one-day event, academicians and students had the opportunity to attend parallel sessions on Hospitality, Tourism, Emerging Issues, Food & Beverage, and Tourism & Sport, facilitated by academicians from Bournemouth and Sunway. Participants sat in for a Malaysian satay cooking demonstration by Sunway’s Chef Soon Pau Voon; visited the Delegates Gallery and Market Place for posters, arts & crafts expo by Sunway students from the Centre of Tourism, Hospitality & Culinary Management, and the Department of Art & Design.

CBRE l WTW Establish JV Partnerhip For Operations In Malaysia CBRE Group Inc, the world’s largest commercial real estate services and investment firm, has concluded an agreement with WTW, Malaysia’s oldest and largest real estate service provider, to acquire a significant interest in its operations in Peninsular Malaysia. Under the joint venture agreement, CBRE has acquired a 49 percent in C H Williams Talhar & Wong Sdn Bhd, WTW Real Estate Sdn Bhd and WTW Property Services Sdn Bhd. Now rebranded as CBRE | WTW, the business is headed by Foo Gee Jen and Danny SK Yeo, the incumbent leadership at WTW, both highly respected real estate professionals in Malaysia. Established in 1960, WTW has a nationwide network of 23 offices.The move will enhance the presence of both firms locally and internationally.

Professor Graeme Wilkinson, Vice-Chancellor, Sunway University said, “With tourism being an economic driver in Malaysia and a huge industry globally, the industry presents plenty of job opportunities globally for hospitality and tourism graduates. Here at Sunway, graduates are nurtured to fit into the global context with programmes that offer a wide range of management and specialised subjects to equip them with the expertise and skills needed to manage a successful international hospitality, tourism and events business.” Students at Sunway’s Centre for Tourism, Hospitality & Culinary Management (CTHCM) can choose to complete the final year of their degree programme at Bournemouth. In other news, in the Financial Times (FT) Global MBA Ranking 2016, the Lancaster MBA - which is delivered at Sunway in Malaysia - moved up to 4th from 9th in the UK this year and jumped 15 places to rank 35 in the world, up from 50th place last year and 77th in 2014.

WTW’s Non-Executive Chairman, Mohd Talhar Abdul Rahman, said “We are confident that CBRE is the right strategic partner. Their scale and reach globally can help our clients expand their activities beyond our shores more fruitfully, and can help bring greater meaningful inbound investment into the Malaysian real estate market.” Steve Swerdlow, CEO CBRE Asia Pacific, said “CBRE | WTW, alongside our existing occupier outsourcing business in Malaysia, will provide a deep, broad platform that provides clients with access to a comprehensive suite of market-leading real estate services.” CBRE’s occupier outsourcing business - Global Workplace Solutions - serves a blue-chip list of occupiers across a wide range of industries, particularly financial services, healthcare, industrial/manufacturing, life sciences, technology and telecommunications. www.cbre-wtw.com.my

For the second year running, the FT Global MBA Ranking 2016 also ranked the Lancaster MBA 1st in the world for Corporate Strategy, ahead of Harvard and 1st in the UK for salary increase. Students who have selected Sunway University to pursue an MBA from Lancaster benefit from a faculty of leading management consultants, educators and research scholars. In addition, distinguished lecturers from Lancaster’s MBA Programme fly in to deliver world-class learning experience. Upon completion of their MBA programme, students are awarded two scrolls, one from Sunway and one from Lancaster. To find out more, call 03-7491 8701 or visit http://university.sunway.edu.my/Master-Business-Administration

Issue 3 - 2016

Visit Nottingham, Britain’s global university in Malaysia Britain’s 2nd most targeted university by graduate employers* * The Graduate Market in 2013, 2014, 2015 and 2016, High Fliers Research

At The University of Nottingham Malaysia Campus, we offer a broad range of internationally recognised foundation, undergraduate and postgraduate courses. • Arts and Social Sciences • Engineering • Science A global education with opportunities to study at our overseas campuses or through the exchange and work programmes.

The University of Nottingham Malaysia Campus t: +60 3 8924 8686 w: www.nottingham.edu.my/make-an-enquiry

Issue 3 - 2016

DULN001(B)

Members’ News

usiness travel is an integral and essential part of doing business. Nevertheless, some organisations may find it challenging to justify the cost of overseas business travel - this is particularly true for SMEs all over the world. To help SMEs make the most out of their travel budget, British Airways is introducing On Business loyalty programme for travellers from Malaysia. The new offering brings together the business loyalty programmes of British Airways, Iberia, American Airlines and codeshare partner airlines, allowing business travellers to collect points and spend on all partnered airlines under one scheme.

The On Business loyalty programme rewards points are based on the fee spend rather than distance travelled or number of flights flown. This makes it easier for businesses to manage their business travel budget and meet their travel needs. The three-tier system is based on the amount customers spend on travel each year. As users progress through the tiers, they can save more to spend on reward flights and upgrades. In addition, members of British Airways Executive Club and Iberia Plus can also collect Avios and Elite Points in their respective loyalty programmes.

Helping Malaysian SMEs Fly Vivian Tan-Loh, British Airways’ Country Manager for Malaysia says, “The SME sector is a strong driving force in the Malaysian economy and in 2014, contributed 35.9 per cent to GDP. The sector is entrepreneurial, dynamic and growing. Our research told us that customers want a programme that is simple to understand, able to help them to manage travel costs and recognises them for their loyalty.” “On Business does exactly this; it is a simple way of earning points based on spend, immediate savings through discounts and tiers to reward loyalty. In 2015, our loyalty programme helped companies save £47 million worldwide.” she added.

IN the UK where a growing number of SMEs are leveraging the burgeoning Chinese economy to expand their business, Khunu, a lifestyle clothing brand co-founded by British businessman Julian Wilson, is also a current On Business member. The company sources its wool from western China and has a network of suppliers in the country. Mr Wilson said that travel provides inspiration to their business. Through his trips to western China, he developed the idea for Khunu, and visiting those regions has been a necessary part of the company’s ongoing development. This is where their products came into being and his face-to-face meetings with suppliers in China are imperative for their product inception. The On Business programme has helped a lot in managing those travel and getting the most out of the company’s travel budgets.

Additional Benefits •

Three-tier ranking system to boost earning power

•

Handpicked offers and bonuses for members

•

A new, easy to use online account management tool

To sign up, visit ba.com/On-Business As members progress from basic tier to higher tiers, they can earn more points for every £1 (or RM5.38) spent. In other words, the more they fly, the greater the reward multiples. This adds up to considerable savings for companies as they accumulate more reward flights and upgrades.

New members can enjoy a welcome bonus of triple On Business Points on the first six eligible flights within the first 12 months of the new membership. Terms & Conditions apply

THE Candle Company, is a Hong Kong based scented candle shop founded by Ian Carroll in 2002. Mr. Carroll travels around the world to understand different preferences of scented candles from country to country. He says On Business membership offers flexibility and allows him to truly maximise his travel budget.

Issue 3 - 2016

On The Social Scene

60 Second PITCH! A

sizeable number of members and non-members turned up for the latest round of BMCCâ&#x20AC;&#x2122;s popular Speed Networking series, this time held at the Hotel Maya in KL. Everyone had the opportunity to present their business pitches to other participants in fast-paced face-toface sessions lasting just 60 seconds. Moderator and time-keeper Andrew Diamond, CEO of IsItUp.com and BMCC Board Director kept things well in order despite the excitement, rush of adrenaline and raucous cacophony of business introductions. Following the intensive action, a slightly less frenetic mingling and networking reception ensued with servings of wines and canapĂŠs, leaving the participants to head off with a hard-earned stack of new business contacts. acts.

Issue 3 - 2016

Inside View

SEARCH Inside Yourself G

oogle is heavily populated by rational, data-driven engineers. So, how did a training course that combines emotional intelligence and mindfulness become the most popular and most highly rated course in this evidence-based company? The course, which became known as Search Inside Yourself (SIY), is now a part of a global movement to help people lead more successful, resilient, innovative and happier lives in the workplace. To find out, I spoke with Hemant Bhanoo, an ex-Googler who progressed from participating in the SIY training course, to teaching inside and out of Google in the US, UK, France, Australia, and Japan. Hemant will be coming to KL to share SIY with audiences in late October. Hemant was born in India, educated up to the age of 13 in Singapore, and then went on to become a software engineer in the US. He has worked for Amazon and Google, as well as a number of start-ups in the US.

George: How was SIY developed? Hemant: A Google engineer developed the Search Inside Yourself training course. He combined emotional intelligence practices with mindfulness – or attention-focusing. The engineer was Chade Meng Tan, born and raised in Singapore. Meng, as he is commonly known, tailored the programme and figured out a way to explain it in evidence-based ways, based on neuroscience. He made it accessible to a wider group by taking away any connection to tradition or religion.

GA: How did you become an SIY trainer? HB: I attended the SIY course at Google. And then, I started to teach it and have since taught the course at Google HQ, as well as in Tokyo, London, Dublin. GA: What does attending SIY do for people? HB: The course gives people a concrete set of tools to manage their emotions better, to be more self-aware to achieve desired outcomes – to be more productive, more resilient and happier. Mindfulness is a tool to effect these outcomes. 50

Issue 3 - 2016

George Aveling of TMI Consultancy Malaysia speaks with Hemant Bhanoo to find out more about a programme that has changed the face of conventional training

Different people walk away with different things. One big learning for most people is, “I can take one breath and change my attention. This is a great tool to change my day!” Some people take away enormous value experiencing a new quality of listening. They learn to engage in deeper understanding by focusing their attention on what the other person is saying, without distraction. People say that they have never before experienced this quality of listening. Another technique that people come away with is journalling. This involves writing to yourself. A lot of people say that this simple tool is very powerful. Normally we are writing to someone else. Journalling gets them to write about what’s inside of them, and to do it fast without editing. A percentage of people find they are surprised with the self-awareness that this creates.

alternative ways of thinking or explaining what has just happened. It increases our resilience. Some years ago, I was involved in a start-up company. Things were not going that well. I would wake up in the night in a cold sweat. I was consumed by negative thoughts, “What is going to happen to us? Will we become homeless and destitute?” I left Google in 2015. This time, when leaving, I still had the same fear. But my relationship with my fear was different. Now I have tools to deal with it. I sit with it, be with it. Mindfulness has taught me selfawareness, to say, “This is fear, this is anxiety. And, this is data. Let me deal with it.” It has helped me be more resilient, to deal with the fear and to bounce back in a positive way.

GA: What about SIY in the workplace? HB: In the workplace, we are already good

“This is the EI component - the skills set that can help leaders and managers build social capital for performance. It’s about strengthening self-awareness, empathy and compassion.” The course opens people’s minds to the realisation that “there is more to me than my thoughts. I am not the voice in my head.” For example, one day, you might be feeling really lousy. The feeling might be caused by anger. Rather than being consumed by this feeling, you focus your attention and label the feeling. “This is anger. It’s showing up my body. But I am not anger. It is not me.” By doing this, it enables you to reduce stress and to bounce back. It reduces our time to recovery and gives us space to consider

at filtering for IQ. This means that we have already demonstrated our ability to do the job functionally. What can set you apart from your peers – from ordinary to outstanding? How can you relate to people, so that they feel listened to and trusted? This Continued is the EI component. on Page 46 It is the skills set that is trainable that can help leaders and managers build social capital for performance. It’s about building their self-awareness, empathy and compassion.

For more details on Search Inside Yourself Programmes, visit: www.searchinsideyourself.com.my

To find out more about TMI Consultancy Malaysia and how it transforms businesses, visit www. tmimalaysia.com.my or email george@tmimalaysia.com.my

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