Berita BMCC - January / February 2014 by British Malaysian Chamber of Commerce

Issue 93 PP 11826/07/2013 (032918)

January-February 2014

Maximising Growth Potential In Competitive Leisure Sector

Travel & Tourism:

Destinations That Deliver PLUS:

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Market Outlook 2014

■

NAP: Shifting Gear ■ Glittering Gala Event January-February 2014

First Lines

elcome to our ﬁrst issue for 2014 which is already turning out to be an exciting year for BMCC. As many of you will know, we closed out a very busy 2013 with our Annual Corporate Christmas Luncheon.

Attended by some 500 people from all sectors of industry, it was the kind of hallmark event for which BMCC has become renowned. These kinds of events are only possible with the generous support of our corporate sponsors and partners, support which I am delighted to report is continuing into this year. The calendar of events we have lined up for 2014 has been designed to reach an even wider audience and takes our service delivery to the next level. Working with an increasing number of diverse high calibre partners, we aim to provide the very best in opportunities for networking while delivering an enhanced member and guest experience. On that note, we are extremely honoured to be able to announce that YAB Dato’ Sri Mohd Najib Tun Razak will be attending our 50th Anniversary Gala Dinner as our special Guest of Honour. The event will also see the official launching of the Doubling Trade Initiative in which BMCC is proud to be the delivery partner for UKTI. The date is Thursday 6th March and the venue is the Majestic Hotel Kuala Lumpur. See Page 7 for details. Our theme for this issue looks at some of the criteria needed to attract and retain leisure and business tourism. With Tourism already a mainstay of the economy, it is one of the key focus areas in the Government’s Economic Transformation Programme. The projects under this Programme and the current Visit Malaysia Year campaign offer significant potential to boost visitor arrivals higher still and extend the range of attractions yet further. Malaysia already has a great deal to offer in terms of connectivity, infrastructure and world-class events. It also boasts some of the most outstanding natural beauty. But competition is hot, with countries constantly vying against each other for tourism revenue. By packaging experiences in new, interesting and sustainable ways while retaining the core essence of what makes this country special, the growth opportunities for Malaysia in this sector are substantial. With global markets finally emerging from a period of turmoil and recession, the economic landscape, particularly in Asia, offers encouraging signs for the year ahead. See the reports on Pages 11-13. Wherever your journey takes you in 2014, from all of us at BMCC, we wish all our members a successful year and we look forward to engaging with you in the weeks to come.

BMCC 2014 Annual Sponsors & Partners PLATINUM SPONSORS:

GOLD SPONSORS:

PREFERRED AIRLINE PARTNER:

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: britcham@bmcc.org.my Web: www.bmcc.org.my Follow us on:

BMCCMALAYSIA January-February 2014

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

BMCC Board of Directors: Patrons: YBhg Tun Musa Hitam HE Simon Featherstone, British High Commissioner

Chairman: Dato’ Larry Gan, Catcha Media Bhd

Deputy Chairman: Andrew Sill, The Royal Bank of Scotland Bhd

Directors: Soo Kim Wai, Amcorp Properties Bhd Mark Burgess, Amicitia Sdn Bhd Bob Olivier, Aspac Executive Search Sdn Bhd David Ng, DHL Express Malaysia & Brunei Dato’ Justin Leong, Genting Bhd Datuk Seri Michael Yam, InvestKL Amanda Powell, KL Kudos Design Sdn Bhd Michael McIver, Plus Three Consultants Sdn Bhd Osman Morad, Standard Chartered Bank Malaysia Bhd Bill Addington, TechSol Sdn Bhd Datuk Peter Wentworth, OBE, Weir Minerals Malaysia Andrew Diamond, Yakimbi Sdn Bhd

Ex-OfÀcio: Gavin Anderson, British Council Tony Collingridge, OBE, UK Trade & Investment Dr Zainal Abidin Majid, Advisor To The Board

BMCC Executive Ofﬁce Molly Jagpal: Executive Director Nik Tasha Nik Kamaruddin: General Manager Nabisa Kassim: SME Development Manager Stephanie Ho: Events Manager Deck Azwan: Accounts Executive

BMCC Magazine: Editor: Amanda Powell Editorial Committee:

• George Aveling • Marcus Osborne • Molly Jagpal • Nik Tasha Kamaruddin • Bill Addington Production: KL Kudos Design Sdn Bhd Printing: Tinggi Press Sdn Bhd Lot 6, Jalan Kuang Bulan, Taman Kepong, 52100 Kuala Lumpur.

Berita BMCC is published bi-monthly for distribution to BMCC members and other organisations in the business community. The views expressed or implied herein are those of the authors or contributors and do not necessarily reÁect those of the Chamber.

January-February 2014

In This Issue

Cover Story

Destinations That Deliver As the world ﬁnally shows signs of emerging from a prolonged and far-reaching recession, markets are competing hard for valuable business and leisure tourism dollars. We look at the criteria needed for destinations to deliver. Turn to Page 15 to ﬁnd out more.

■ First Lines ................................................. 3 ■ Hot Happenings ........................................ 6 >

BMCC 50th Anniversary Gala Dinner

BMCC Business Seminar with Addleshaw Goddard

January-February 2014

■ Trade Talk ................................................... 8 >

Britain In Malaysia: New Support Services For SMEs

UK Appoints New Minister of Trade

■ Special Report ......................................... 10 Shifting Gear? The Lowdown on Malaysia's New National Automotive Policy

■ Market View ............................................ 11 >

Asia In 2014: Better Growth Sanjay Mathur, Royal Bank of Scotland

Rising East, Emerging West Global Research Report 2014 Standard Chartered Bank

■ Cover Story ............................................. 15 Travel & Tourism: Destinations That Deliver

■ Meet Our New Members ....................... 30 ■ News from Our Members ...................... 31 ■ Insights ..................................................... 35 Top Talent Trends For 2014 from Hays ■ On The Social Scene ................................ 36 Getting Festive

January-February 2014

Hot Happenings

February Thurs 20th

BMCC Pub Quiz Night Sid’s Pub Bangsar South

March Thurs 6th

Diary Dates

BMCC 50th Anniversary Gala Dinner & Launching of Doubling Trade Initiative Guest Of Honour: YAB Dato’ Sri Najib Tun Razak, Prime Minister of Malaysia Hotel Majestic Kuala Lumpur See Opposite for Details

12th–16th

ASEAN Furniture Show, The Décor Show & Hospitality 360° - Singapore See Page 28 for details

Thurs 20th

BMCC Seminar With Addleshaw Goddard Investing With Insight: The Power Of Attraction Mandarin Oriental Hotel Kuala Lumpur See Opposite for Details

25th-28th

OTC Asia 2014 Kuala Lumpur Convention Centre

Thurs 27th

BMCC Members Networking Event The Roof

29th-30th

Malaysia Formula 1 Grand Prix Sepang International Circuit www.sepangcircuit.com

April Thurs 10th

BMCC Pub Pool Night Page 2, Publika

Sat 19th

BMCC Fashion Series: Dressed To The Nines With Mimpi Kita Details to be advised

May 13th-15th

Asian Fashion Summit - Singapore See Page 29 for details

15th-16th

Blueprint 2014 - Singapre See Page 29 for details

Tues 22nd

BMCC Members Networking The Beast - Intermark KL

BMCC Magazine March-April Issue Cover Theme: Protecting Your World: Security & Safety

Data mining, commercial fraud, IT security breaches and personal identity theft. Risks to personnel, equipment and property, the threat of terrorism and soaring crime rates. All key issues in today’s business world. Protecting our assets has never been so critical. Does your company have the solutions to help protect assets? Get in touch and let’s hear your story! We want to hear from you!

Sponsorship and advertisement opportunities available! Deadline Imminent: Contact 03 2163 1784 or editor@bmcc.org.my

January-February 2014

Hot Happenings

BMCC 50th Anniversary Gala Dinner & Launch of Doubling Trade Initiative Thursday 6th March 2014 Hotel Majestic Kuala Lumpur

Guest of Honour: YAB Dato’ Sri Mohd Najib Tun Razak, Prime Minister of Malaysia

TICKETS Table of 10: Members: RM3,800 Non-Members: RM4,500 Don’t miss this one of a kind event! Contact Stephanie at the BMCC OfÀce for bookings. T: 03 2163 1784 E: events@bmcc.org.my

Join us on this special occasion to mark BMCC’s 50th Anniversary and the Launching of the Doubling Trade Initiative. This prestigious event will bring together captains of industry and business leaders to celebrate the very best in business achievement. Our VVIP Guest of Honour, YAB Dato’ Sri Mohd Najib Tun Razak, Prime Minister of Malaysia will ofÀcially launch the Doubling Trade Support Initiative in which BMCC is proud to be involved as the delivery partner for UKTI.

BMCC Business Seminar With Addleshaw Goddard Investing With Insight - The Power of Attraction Thursday 20th March 2014 9am-2pm Lunch included - Mandarin Oriental Hotel KL Long a safe haven for investors from all over the world, the UK and in particular London, has been making headlines recently for its ability to attract Malaysian investment. What are the powers of attraction at work and how best can businesses and individuals understand the key critical pathway factors required to ensure investments are made safely and securely? This Seminar, organised by BMCC and leading UK Àrm Addleshaw Goddard brings together for the Àrst time a full suite of advisors who are all prominent players in the UK real estate marketplace. A unique opportunity for experienced and Àrst-time investors to hear from a panel of top specialists about the current market conditions and the areas to consider when planning or making investments in the UK.

Key Areas For Discussion •

Which sectors are attracting the most investment

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Key considerations for investors prior to making an investment

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Fund managers and their role in the investment

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How the market works and some common pitfalls

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Tax and structure considerations

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Successful execution of deals

•

When it goes wrong and why, and how to avoid it

PANEL OF SPEAKERS Leona Ahmed and Phil Goodstone (above) Partners - Addleshaw Goddard James Petit Managing Director Head of Real Estate UK & Ireland Deutsche Asset & Wealth Management Siobhan Godley Head of Property - Deloitte Real Estate Alistair Meadows Head of International Capital Group Jones Lang LaSalle Joel Hernandez and James Hill Mourants Partners - Mourant Ozannes

Don’t miss out! Contact 03 2163 2174 or events@bmcc.org.my to register.

January-February 2014

Trade Talk

Step Change For BMCC Growth Opportunity For SMEs

Dr Amita Krishna, Project Director of the Overseas Business Initiative, outlines the step change at the Chamber which will present opportunities for sustainable growth for British and Malaysian SMEs.

KTI, Britain’s trade and investment authority has consolidated its partnership with the BMCC as the pace for building a competitive global British Business Network gains momentum.

Bringing about the acceleration of the internationalisation of the British economy and achieving the Government target of doubling exports to £1 trillion would be a major undertaking.

BMCC, selected as one of the key partners participating in the 20-market pilot of this all-important initiative, has expanded its commercial and business support services for British Àrms looking to export.

Furthermore, providing support to an additional 100,000 SMES to export and increasing the number of SMEs exporting from one in Àve to one in four by 2020 would add to the challenges ahead. Such a task would require a consolidated effort to achieve the economic strategy and desired growth.

These services will also provide opportunities and beneÀts to BMCC members and Malaysian Àrms seeking expertise, expansion and international partnerships. Working alongside UKTI, the Chamber is involved in providing invaluable input to shape the strategic direction and framework for the global roll-out. With growth being such an important political and economic issue in developed economies, it is not surprising that recent UK Government reports and initiatives have focused on supporting internationalisation of SMEs.

Background As the world faced the worst economic crisis of modern times in 2007/8, British businesses, particularly SMEs, suffered. In 2012, Britain’s economic decline led to Prime Minister David Cameron seeking the assistance of Lord Heseltine to address the economic desolation and ascertain how wealth in the UK could be more effectively created.

A comparative review of overseas business networks and their respective services was conducted by Lord Heseltine and outlined in his report ‘No stone unturned: in pursuit of growth’ (2013). The conclusions indicated that Britain had lost its competitive edge. The key Àndings highlighted a number of challenges: •

Productivity lagged behind that of international trading partners in the US, Germany and France

•

A relative decline in export performance;

•

Considerable complexity of local Government and bureaucratic inefÀciencies;

•

Fragmented networks; and

•

An inconsistent customer experience

All of these revealed a bleak picture for economic recovery for the nation. Lord Heseltine’s recommendations had their foundations in Lord Devlin’s report of 1972 which focused on assisting growth in the private sector through the creation of world class support systems, particularly those offered by chambers of commerce and trade associations in comparative markets.

Lord Heseltine: Leaving no stone unturned to boost Britain’s competitive edge.

6 8

Accordingly, to emulate the success of private sector-led business advice and support in these competitor economies, the UK Government embarked on a programme for collaboration between UKTI, the British Chamber of Commerce, the Chamber network and trade associations in the UK along with respective overseas chambers.

January-February 2014

The BeneÀts The programme presents several beneÀts for BMCC members, including: •

Enhanced Services

•

Increased membership

•

Greater lobbying and advocacy potential

•

Greater links and access to real business opportunities

•

A consistent customer experience

•

Access to international partners and networks

•

Active links to relevant, research base to assist with innovation challenges

Chambers present an integrated approach, embedded in the local business community engaging high levels of business membership. To this end, the programme has received support from the highest levels in the British Government to build the capacity of British Chambers of Commerce to provide export services to UK companies.

The Big Picture There are several key objectives for this initiative: •

The programme aims to build the capacity of the UK’s overseas business networks, mostly chambers of commerce, to provide a wider range of high quality business-to-business (B2B) support to UK small and medium enterprises.

•

UKTI will work closely with the Chambers of Commerce in their respective markets to develop the strategic framework for supporting the delivery of B2B support services for SMEs and will work in collaboration with the Chamber.

•

The UKTI will transition to focus where they add most value; high value opportunities; manage ongoing G2G relationships; inward investment.

•

By 2015, the programme will be available in at least 40 countries through Chambers of Commerce or trade associations.

•

BCC (British Chambers of Commerce) UK will accredit all overseas chambers participating in the programme to ensure compliance and an acceptable

Trade Talk “The interest in exporting to Malaysia has been pleasantly surprising and there is overwhelming support for this programme to succeed.” standard of delivery and service for SMEs. •

The customer experience will be enhanced; seamless, consistent and positive.

•

BMCC will be the ‘Go To’ entity for British SMEs wishing to export to Malaysia.

The Business Model To achieve the above objectives, the UKTI is consolidating its partnership with the BMCC as its delivery partner to complement and augment its own expertise. The framework developed for the businessto-business support services is in place and several UK Àrms have already beneÀtted from the collaboration. Further trade services for SMEs are being developed as part of the overall SME offering and will transition to the Chamber during 2014/15. In 2014, along with the B2B support services, the BMCC will support the UKTI on trade missions, webinars, the Great Retail Fashion Week, Export Week in the UK and several other trade initiatives.

Step Change For The Chamber To make the above happen, the Chamber and UKTI have appointed a dedicated Project Director who will be supported by a team of three. The BMCC Executive OfÀce has undergone renovation and has expanded. State-of-the-art equipment is being installed to support video-conferencing and hot-desking. The Chamber is also setting up a collaboration panel consisting of various Government bodies to support international trade along with an advisory panel. The advisory panel will comprise Àrms who are able to support British Àrms with pertinent services. The enhancement and expansion of the service portfolio of the BMCC has been welcomed by several members and early feedback is positive. As trade opportunities increase, customers from both sides of the pond are leveraging on the support services and expanding connections through the global network.

The End Game Success is deÀned as a simple, seamless customer journey connecting Àrms locally, nationally and internationally and offering practical business support at least on a par with that on offer to competitors from other nations.

In summary, the UK Government acknowledges that increased exports are imperative to achieving sustainable growth in Britain in the new economy. With a new British trade minister in place (see panel), boosting exports must remain a national economic priority. Project Director Amita Krishna says, “Our role as a Chamber has been signiÀcantly enhanced and this was further evidenced as I met with several trade associations, Chambers and majority of the regional international co-ordinators across the UK in recent weeks. The interest in exporting to Malaysia has been pleasantly surprising and there is overwhelming support for this programme to succeed. “With dates for webinars and inward missions in place for this quarter, the willingness to support bi-lateral trade and build strategic partnerships with the BMCC has been encouraging. To leverage on these opportunities, the key to success will be the inherent ability of a Àrm to adapt and move with the pace of change.”

Dr Amita Krishna Amita is a senior executive with 28 years’ experience in Strategic Management, Business Transformation and International Marketing. She has delivered complex business and IT solutions to Government, Multinationals and SMEs internationally. Beginning her career in Ànance in the City of London, upon the business franchise being sold, she continued to deliver customer and channel improvement solutions to Àrms pursuing growth across various sectors including, Telecoms; Banking/Finance; Hitech; Media and Government. Venturing into Asia in 2000, when she was headhunted to manage business initiatives in the public and private sector in Malaysia and later across Asia, she delivered strategic business plans, investment plans, market entry recommendations and customer loyalty solutions. Having completed her Doctorate in Internationalisation, in 2013 she took up her current role keen to share her experiences with Àrms seeking business improvement and sustainable in international markets. For more information on how to beneÀt from the services offered, contact: amita@bmcc.org.my

Former BT Chief

Takes On New Trade Role

ormer BT CEO and leading businessman Ian Livingston has been appointed as the new UK Minister of State for Trade & Investment. He takes up the position following the retirement from government of former Minister of State for Trade Lord Green of Hurstpierpoint. His role will span both the Department for Business, Innovation and Skills and the Foreign and Commonwealth OfÀce and he will report to both the Secretary of State for Business and the Foreign Secretary. He will continue the work undertaken by Lord Green on over the last three years to help Britain compete in the global race; growing the UK’s exports and attracting further investment from overseas. On announcing the appointment, Prime Minister David Cameron said, “Ian Livingston is an outstanding business leader and it is a testament to the importance of this role that he has agreed to serve in the government in this capacity. I know that he will make an invaluable contribution to our plan to help secure Britain’s long-term economic future, by helping to open new trade links and grow our exports.” Lord Livingston said: “The UK has some of the best and most dynamic companies in the world and has one of the most open business environments for investment. I am looking forward to the important work ahead, encouraging more UK Àrms to export and promoting this country as a world leading destination for inward investment. During his tenure as CEO of BT Group from 2008 until 2013, free cash Áow tripled and BT has become one of the best performing European Telco stocks. He oversaw one of the fastest Àbre rollout programmes in the world, invested in strengthening the company’s global presence and launched a major new TV sports service.

January-February 2014

Special Report

he aims of the NAP 2014 include making Malaysia an Energy-EfÀcient Vehicle (EEV) production hub for the region, liberalising the local car market to create one that is more competitive and sustainable, as well as promoting local value-added activities and exports. A number of strategies have been outlined but most are mid- to long-term; few go into any signiÀcant depth.

Shifting Gear?

Energy EfÀciency Scheme Central to many of NAP 2014’s points is the introduction and deÀnition of the EEV, which grants carmakers that manufacture vehicles locally “customised incentives.” The classiÀcation takes effect immediately. Regardless of the technologies or method of propulsion used (petrol, diesel, hybrid or electric), a car can be classiÀed as an EEV if it meets or performs better than a set fuel economy Àgure (measured according to the UN ECE R101 standard) for its kerb weight. However Malaysia does not currently have any certiÀed facilities for testing fuel consumption efÀciency. MITI says such facilities can be privately set up, creating business opportunities, but this will take time, leaving an indeterminate interim period of uncomfortable uncertainty for carmakers.

Levelling The Field? The so-called “customised incentives” come in the form of Pioneer Status, Investment Tax Allowance (ITA), grants, infrastructure facilitation, lower taxes and expatriates, all accomplished without any investment conditions. Exactly how much localisation or value-added activities a carmaker will have to carry out and the level of incentives available is as yet unclear. This “customisation” is nothing new. Even though the last two NAPs speciÀed clearly the kinds of hybrid vehicle that are exempt, BMW Malaysia successfully obtained a partial exemption for its ActiveHybrid range of cars, which have 3.0 litre capacity engines. (Qualifying criteria under the NAP at the time required engines of less than 2.0 litre)

Malaysia’s National Automotive Policy (NAP 2014) announced just recently has already been the subject of hot debate amongst industry players and consumers. This article sheds some light on the key points. And take the Nissan Serena S-Hybrid: not really a hybrid at all, but an MPV with a regular combustion engine, enhanced alternator and additional power storage. Under the CPR (Car Price Reduction) Framework, MITI says car prices will gradually go down in the next Àve years, culminating in a total price reduction of between 20-30 percent by 2017. However, this will not happen through cutting or abolishing excise duties - which provided the government with RM7.3 billion in revenue last year - but rather, through increased competition brought about by liberalisation of the industry, which could also see more OEMs entering the market. If incentives are going to be “customised,” the probability of an uneven playing Àeld emerging is actually higher, and could go so far as to put off prospective OEMs, not to mention upsetting a few existing ones.

Ongoing Impact of APs Open APs (Approved Permits) are responsible for the huge inÁux of grey import cars from countries like the UK and Japan - such as the Toyota Estima and Toyota Alphard.

Open APs are responsible for the huge inÁux of grey import cars affecting market share and investment potential.

Other grey imports include Audi, BMW and Mercedes-Benz. The models are the same as those being sold by the principal companies here in Malaysia, who have invested in the homologation process as well as built a support network for these cars. A limitation of 3 percent of TIV (total industry volume) may seem an adequate safeguard. However, measuring it against total TIV is misleading. The TIV for 2013 was 652,000 units. Three percent of that is 19,560. In 2013, BMW Malaysia sold about 7,000 units, while Mercedes-Benz Malaysia sold 5,809. Some 13,000 cars from these two brands alone, which make up a huge chunk of the luxury segment. If you include Audi and Lexus, estimated at about 2,000 units each, as well InÀniti and the other brands, the total numbers would be close. Open APs are depriving luxury brands of potential market share, and its continuance will most likely discourage further investment here.

Safety Measures While there is no mention of the Vehicle End-of-Life policy in NAP 2014, a Voluntary Vehicle Inspection (VVI) is being proposed. This will apply to cars over Àve years old, in a bid to keep vehicle roadworthiness in check and improve road safety. Inspection centres will not be limited to any one agency like Puspakom, but it is not clear how many companies will be appointed or the procedures for certiÀcation. Inspections will, of course, be chargeable, and therefore some kind of incentive is likely. If carefully planned and implemented, at least the VVI represents a step in the right direction towards a safer and more mature auto environment. Source: Paul Tan’s Automotive News www.paultan.org

January-February 2014

Market View

Asia In 2014:

Better growth, nothing outstanding Sanjay Mathur Managing Director & Head of Economics Research, Asia PaciÀc ex-Japan, The Royal Bank of Scotland

sia enters 2014 poised for stronger growth than last year. External demand is improving, boosting exports from and investment into the region. For the whole year, we expect non-Japan Asia to grow by 6.5 percent, moderately up from 6 percent in 2013. This acceleration will come on the back of Àrmer demand from the US and EU and the ongoing pick-up in the Chinese economy.

Separately, the maturing credit cycle will pose another challenge for Indonesia, Malaysia and Thailand. Each of these economies has recently seen a remarkable increase in credit intensity, a development with a Ànite lifespan. Beijing is also moving towards reining in the rise in its leverage.

We are departing from consensus to tip a solid expansion in China for 2014, resulting from better global growth, Àrmer monetary policy and structural reforms that will on balance be neutral for growth. This will in turn beneÀt Asia, as its business cycle has become closely intertwined with that of China, a key export market.

The tapering of the US Federal Reserve’s quantitative easing (QE) policy will also remain a potentially disruptive risk for many of the region’s Ànancial markets, although it will likely be less destabilising than last year. External imbalances have since receded, most notably in India, Malaysia and Thailand. In addition, the impact of QE tapering may well be offset by an overall dovish stance from the Fed, amid low inÁation and weak wage growth in the US.

Slow Burn

Managing InÁation

A few factors, however, should be noted. Compared with previous business cycles, global trade has rebounded more slowly in this recovery. The higher import demand that is typical of recoveries in developed economies has been slow to manifest, constrained by deleveraging and Àscal austerity. Growth will need to become better rooted for the trade channel to become more solid. As such, Asia’s upswing will materialise more strongly only in the second half of this year, after a material improvement in external demand.

One bright spot is that inÁation is likely to remain within the comfort zone of central banks this year, given the prospect of stable commodity prices and only gradually closing output gaps. Further, Asia’s growth in 2014 will be driven more by external rather than domestic demand – a positive sign as domestic demand has historically had a greater bearing on inÁation.

Intra-regional divergences are also likely to be a factor. Unlike in North Asia and China, domestic demand in India, Indonesia and Malaysia could be inhibited by Àscal austerity. In Indonesia and Malaysia, budget plans entail signiÀcantly slower growth in government spending, including subsidy reductions, which tend to hurt consumption. Higher interest rates in Indonesia to curb inÁation and the current account deÀcit will also take a toll on credit and wage growth, curbing consumer conÀdence and spending. In India, another year of sub-trend growth is expected due to tighter Àscal policy, weak corporate proÀtability, stricter bank lending standards and the uncertain political environment. Its national parliamentary elections will be closely watched to see if the incoming government has a sufÀcient majority to undertake politically-sensitive but growth-enabling reforms.

In countries where inÁation is likely to remain a problem, it will be driven either by supply-side deÀciencies or government policies. In India, government-mandated increases in food procurement costs and rural wages should continue to be the basis for inÁation spikes. In Indonesia, reductions in energy subsidies have kept inÁation high, a trend that is likely to persist at least in the early part of 2014. A similar pattern is likely to emerge in Malaysia if the government makes a serious effort to mitigate Àscal imbalances. Finally, in Singapore, the inÁationary impact of restrictive foreign labour policies looks set to continue through 2014. The manageable inÁation and dovish US Fed suggests only moderate tightening of monetary policy by Asian central banks this year. We are expecting modest rate hikes in South Korea, Malaysia, Taiwan and Thailand, reÁecting the need to normalise policy conditions as opposed to squarely combating inÁation and overheating. Only in the Philippines do we forecast a steeper tightening to curb inÁation pressures, as

this is the only economy expected to continue growing signiÀcantly above trend in 2014. In China, we expect benchmark rates to remain steady through 2014, even with a Àrmer monetary stance reÁected in higher interbank rates. Both India and Indonesia may continue tightening monetary policy in the Àrst half of the year to rein in inÁation, but should regain the Áexibility to ease conditions in the latter six months. Asian currencies are likely to appreciate modestly in 2014, against the overall backdrop of improving growth, a reduction in imbalances and a supportive Fed policy. On individual currencies, we forecast the RMB to continue to appreciate by around 2.5 percent this year, reÁecting a structural surplus and productivity gains that are relatively stronger than those of its trading partners. We also expect a turnaround in Indonesia’s and India’s currencies as external imbalances recede. This is likely to become evident in the second half of the year, when elections in both countries have concluded.

Reform Needed We end with a comment on structural reforms in the region. We have long argued for the need for policymakers to deliver productivity- and efÀciency-enhancing reforms, including greater market orientation, lower subsidies, better governance, opening new sectors to foreign direct investment and investing in human capital. Unfortunately, given political imperatives in many countries, signiÀcant changes are unlikely. In fact, we are optimistic for reforms only for China and Malaysia in the next year or two. In China, we expect good progress in Ànancial and monetary reforms, increasing the provision of public services such as health, education and social security and better pricing and taxation of raw resources. We are also hopeful of a meaningful reduction in subsidies in Malaysia and further progress towards the implementation of a goods and services tax. Prospects for serious reforms are, however, weaker in South East Asia and India.

January-February 2014

Market View

Rising East, Emerging West The 2014 Standard Chartered Global Research Report was presented to a large audience in Kuala Lumpur recently with a panel of experts from across the Standard Chartered Group providing their Ànancial forecasts and insights for the year ahead.

tandard Chartered’s annual Global Focus report, “Rising East, Emerging West’’, forecasts the world economy is likely to accelerate to a 3.5 percent growth in 2014, up from 2.7 percent in 2013. Following years of recession and sub-par growth, a pick-up in economic activity in the US and Europe will help Asia and other emerging markets maintain their decadelong outperformance.

Against a backdrop of benign inÁation and low interest rates, the Western recovery should provide additional impetus to international trade, bolstering the more exportoriented economies across the emerging world.

Standard Chartered sees emerging economies outgrowing the Group of Seven developed economies by almost 4 percent in 2014, even with the US accelerating to 2.4 percent from 1.7 percent in 2013 and the euro area emerging from two straight years of contraction to post a 1.3 percent growth in 2014. Policy will play a key role, as it has since the start of the Great Recession. A better growth outlook will make it easier for the US Fed to start normalising monetary conditions. Within this, external demanddriven economies with strong links to the global manufacturing cycle, such as Singapore and Thailand, are likely to beneÀt the

Economic Outlook Major developed economies are likely to add to Asia’s growth in 2014, after years of Asian outperformance against a weak global backdrop. This outperformance reÁects the strength of the region’s economies, which have proven their ability to outperform in most scenarios other than a sharp global downturn. While the backdrop for markets will be challenging in H1-2014 as the US heads towards ending QE, the reasons for this tightening (ie stronger growth) will likely help current account balances around the region.

Asia:

Supportive global growth at last David Mann David.Mann@sc.com

Policy In 2014, Asian countries will need to implement the right policies to attract long-term capital after years of struggling with indiscriminate portfolio Áows to the region. Such policies would support longerterm growth prospects after years when a lot less scrutiny was applied to this issue. Pressure to maintain yield spreads against US Treasuries, combined with still-elusive exchange rate appreciation, may mean pressure for tighter domestic monetary conditions. We expect the majority of Asian economies to start monetary tightening cycles in Q3-2014 with one or two exceptions.

January-February 2014

most. More domestically-driven economies such as India, Indonesia and Brazil will face headwinds. While global growth would typically support a sustained rebound in commodity prices, the Bank expects the supply overhang to depress prices in 2014. Typically, this would suggest that equitydominated markets should outperform bond-dominated markets but the Bank anticipates that this pattern will not be uniform, once domestic-versus-external orientation is taken into account. 2014 will be another challenging year for Àxed income securities with markets with larger pools of domestic savings likely to be better insulated.

Bank Indonesia is likely to continue to tighten policy in early 2014 as we believe it has given greater weight to containing the current account deÀcit. In Taiwan, we expect the tightening cycle to begin in Q2-2014, triggered by the second- round impact of electricity price hikes and by higher food prices y/y due to the low base effect. Policy makers across the region have shown a desire to tame leverage growth in the government, corporate and household sectors. While Singapore and Hong Kong have introduced strong macro-prudential policies to cool their property markets, we have seen more talk than action in other countries, such as Thailand. InÁation is unlikely to be a major concern for most markets in 2014 as key food and energy prices remain subdued. China, the world’s second-largest economy, should see a consolidation of growth. We forecast 7.4 percent GDP growth in 2014, following 7.6 percent in 2013. 2013 saw the implementation of ‘easier’ reforms such as cutting red tape and the anti-corruption drive. 2014 will be about tackling the tougher

Market View

Malaysia:

Even with inÁation likely to trend higher in 2014, we think Bank Negara Malaysia (BNM) may refrain from hiking policy rates until a Àrm growth trend is established. The central bank may wait until demand-pull inÁation emerges and starts to add to supplydriven inÁation driven by subsidy cuts. The current overnight policy rate (OPR) of 3.0 percent is only 50bps below its all-time high of 3.5 percent. With the OPR at this level, we expect the real policy rate to turn negative only in H2-2014.

External drag diminishes Edward Lee Lee.Wee-Kok@sc.com

Continued from opposite page issues of land and state-owned enterprise (SOE) reform. The new leadership appears determined to push ahead with these reforms which should boost conÀdence in the growth outlook for 2014 and beyond. Politics Elections in India and Indonesia, which have Asia’s largest current account deÀcits, will be the political focus in 2014. Both markets may have a rough ride in early 2014 (after a difÀcult 2013) amid worries about election-related policy paralysis and tighter global liquidity conditions. In India’s case, the key question is whether a relatively strong or weak coalition government will be elected. Uncertainty is high given the long-term trend of local rather than national issues driving voting behaviour, and the fact that 20 percent of voters will be Àrst-time voters. In Indonesia, we expect election-related spending to support a modest GDP growth acceleration to 5.8 percent in 2014 from 5.6 percent in 2013. Market Outlook We are generally bearish on Asian Àxed income markets in 2014, driven by Fed tapering. We estimate that the US Fed is twice as inÁuential in driving global liquidity as the European Central Bank, the next most important central bank. We prefer relative value strategies, in line with the broader theme of currentaccount-deÀcit, bond Áow-driven currencies underperforming currencies with current account surpluses and dominant equity Áows. This favours Northeast Asian currencies and bonds over their Southeast Asian counterparts. Expected Japanese yen weakening in 2014 may limit potential upside for the Taiwan dollar and Korean won. ASEAN economies are likely to continue to grow strongly in 2014, helped by structurally supportive factors. These factors include competitiveness gains versus China in the Mekong delta region, which will attract more FDI Áows; continuing urbanisation as more industries develop; and the implementation of infrastructure projects.

Economic Outlook We expect Malaysia’s GDP growth to pick up to 5.3 percent in 2014 from 4.7 percent in 2013, in line with the government’s projection of 5.0-5.5 percent. We also expect external demand to pick up in 2014, mitigating the expected slowdown in domestic demand. Private consumption may moderate in 2014 due to higher inÁation, subsidy cuts and high household leverage. However, we expect the labour market to remain healthy, supporting wage growth and consumption. The manufacturing sector is likely to strengthen thanks to a pick-up in external demand. This should support wage growth in the sector, which accounts for about 17 percent of total employment and saw a wage increase of about 7.6 percent in 9M2013, despite softness in manufacturing. The government will also continue to support low-income households via Àscal handouts. These handouts will total MYR4.6bn in 2014, up from MYR3.0bn in 2013. Public investment may slow as the government delays less urgent projects to improve the current account position and focuses on raising private investment. We expect investments in the oil & gas sector to provide crucial support to overall investment. While exports are expected to rise, imports may keep pace. Malaysia’s economy is also now less open than before – the trade-toGDP ratio was 160 percent in 2012, down from about 200 percent in 2005. The more domestic orientation of the economy may limit the improvement in net exports. Policy We expect headline CPI inÁation to rise to 3.4 percent in 2014 from a projected 2.1 percent in 2013, slightly higher than the government’s forecast of 2-3 percent. Fuel price hikes in September 2013 will continue to add to y/y inÁation readings until September 2014. We also expect the government to gradually lower subsidies throughout the year, although the exact timing of the cuts is difÀcult to predict. The healthy labour market will also add to inÁation pressures, as businesses may Ànd it easier to pass on cost increases.

In addition, BNM may want to curb inÁation expectations ahead of the implementation of the 6 percent GST in April 2015. As such, we expect BNM to hike the OPR by 25bps only in Q4-2014. Improving external demand should support the current account. The current account surplus has been shrinking, but we believe it bottomed in 2013. We expect it to rise to 4.0 percent of GDP in 2014 from a projected 3.6 percent in 2013. We expect stronger export growth to increase the net goods balance. Portfolio investment may be more volatile in 2014, particularly in H1 ahead of US QE tapering, and may not provide as much support to the balance of payments as in previous years. We expect the government to maintain its Àscal consolidation stance. The 2014 budget was well-received and included plans to expand the revenue base via GST implementation and reduce Àscal deÀcit targets. Moody’s responded favourably by revising its Malaysian sovereign credit outlook to positive from stable in November 2013. We expect Malaysia’s credit rating to remain stable in 2014. Politics With national and party elections concluded in 2013, 2014 should be a quiet year for politics in Malaysia, allowing the government to focus on issues such as Àscal consolidation. It will need to strike a balance in 2014 between further strengthening its Àscal position, particularly via subsidy cuts, and managing potential negative public feedback on such moves. Market Outlook We have Neutral short- and medium-term FX weightings on the Malaysian ringgit (MYR). In 2013, negative factors for the MYR included the falling current account surplus, election uncertainty and Àscal consolidation risks. Domestic factors are likely to be more supportive of the currency in 2014. However, we expect the currency to underperform in H1-2014 due to heavy bond inÁows in recent years. This is largely based on our view that the Fed will start QE tapering in June 2014. We expect the MYR to rally in H2-2014, once tapering is fully priced in and against a backdrop of continued Chinese yuan (CNY) appreciation.

January-February 2014

CEO Spotlight

January-February 2014

Cover Story

Destinations That Deliver

The world of travel and tourism is changing as rapidly as the technology around us. Business and leisure visitors are seeking more exciting, unusual and sustainable experiences whether itâ&#x20AC;&#x2122;s for an annual conference, a teambuilding event, a family vacation or a short getaway. Competition is stiff as countries try to attract these visitors and keep them coming back for more. Malaysia certainly has many advantages to offer in terms of infrastructure, hospitality and connectivity. But so too do other locations. We take a look at some of the criteria involved for achieving success in this potentially lucrative sector. Turn the page to learn more.

January-February January-February2014 2014

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Cover Story

Catching The Wave

Visit Malaysia 2014: • Heritage & Culture • Adventure & Nature • Wellness & Spa • Islands & Beaches

The Àrst half of 2013 saw international tourism grow beyond expectations with global tourist arrivals reaching almost half a billion, a growth of 5 percent compared to the same period during 2012. This article by Zerin Properties takes a look at the trends closer to home.

merging markets witnessed stronger growth of 6 percent in tourist arrivals compared to 4 percent growth in developed countries. Leading the pack of this robust growth was the increase in tourist arrivals for Asia-PaciÀc and Europe regions. Asia-PaciÀc recorded an increase of 6 percent with arrivals to South-East Asia and South Asia up by 12 percent and 7 percent respectively. Europe, on the other hand, observed an increase of 5 percent in international tourist arrivals despite the economic crisis. The Americas recorded a weaker than anticipated growth at 2 percent while Africa sustained its 4 percent growth.

Against this background, Malaysia continues to be one of the top tourist destinations with an increasing inÁux of tourist arrivals. The United Nations World Tourism Organisation (UNWTO) has been acknowledging this on a regular basis by listing Malaysia in its annual top ten list of the most-visited countries in the world. In 2012, Malaysia attracted some 25 million international tourist arrivals, garnering RM60.6 billion in tourism receipts.

Tourist Arrivals In the Klang Valley, the hospitality market performed reasonably well during the Àrst half of 2013, in spite of General Election jitters. This was mainly driven by the sub-

January-February 2014

stantial growth in tourist arrivals in the Àrst six months, which grew by 7.9 percent to 12,552,731 compared to 11,632,478 during the corresponding period the previous year. Singapore remained the main contributor to tourist arrivals with a whopping 6,295,567 arrivals, an increase of 7.9 percent, followed by Indonesia and China with 1,242,055 (+12.1 percent) and 943,756 (+24.5 percent) arrivals respectively. In general, tourist arrivals to Malaysia from most countries recorded growth with the exception of Thailand (-8.9 percent), India (-4.6 percent), New Zealand (-8.1 percent), and some Middle East countries. Meanwhile tourist receipts, as of Àrst quarter of 2013, also grew by 16.7 percent, generating RM14.99 billion in revenue as compared to RM12.84 billion during the corresponding period in the previous year.

Cover Story Malaysia is ranked as one of the top Àve destinations for health tourism. lion arrivals with RM75 billion in tourism receipts. If achieved, this will contribute signiÀcantly to the ultimate target set out in the Malaysia Tourism Transformation Plan of 36 million tourists and RM168 billion in receipts by 2020. As a result, Malaysia’s Ministry of Tourism was predicting a 7.1 percent growth in tourist arrivals for the full year and was targeting RM65 billion in tourist receipts.

Klang Valley Hospitality Market Visit Malaysia Year 2014: The Visit Malaysia Year 2014 campaign, launched in early 2013, is targeted at delivering a major boost to the tourism and hospitality sector, one of the National Key Economic Areas under the Government’s Economic Transformation Programme (ETP). The campaign is loosely based around the four main themes of Heritage & Culture, Adventure & Nature, Wellness & Spa, and Island & Beaches, focusing on the diverse attractions of Malaysia. Various promotional packages and tours are being offered or are planned under the Campaign, the goal being to attract 28 mil-

Niche Tourism In recent years, Malaysia’s tourism industry has been evolving towards a number of specialised niche sectors, thus branching out from being solely dependent on conventional tourism.

The present supply of 3-star, 4-star and 5-star hotel rooms in Klang Valley stands at 9,412, 14,527 and 11,836 respectively.

For 2013, the Malaysia Healthcare Travel Council (MHTC) expected to receive 700,000 medical tourists and to earn RM630 million from medical tourism compared, to RM600 million generated in 2012.

MICE Tourism: Business

In conjunction with this, in 2012 MyCEB (Malaysia Convention Exhibition Bureau) successfully secured 45 ma-

As of June 2012, the total number of hotel rooms in the Klang Valley stood at 41,495. The closure of the 5-star Crowne Plaza Mutiara Kuala Lumpur (565 rooms) to make way for the proposed new mixed development project known as the “Tradewinds Centre” was offset by the opening of two new hotels during the Àrst quarter of 2013.

From the current total of 41,495 rooms, about 30,148 rooms or 72.65 percent are located within Kuala Lumpur and the remaining 11,347 rooms (27.35 percent) are located outside the city limits.

Medical Tourism: Malaysia is ranked as one of the top Àve destinations for health tourism. The number of foreign patients seeking treatment in the country is growing at an annual average of about 18 percent. In 2012, Malaysia received 671,000 medical tourists with majority originating from Singapore, Indonesia, Japan, and West Asia.

Malaysia has set its sights on becoming a favourable MICE destination and is targeting an increase in business tourism arrivals from 5 percent (1.2 million) to 8 percent (2.9 million) of the overall tourist arrivals by year 2020, contributing RM3.9 billion to Gross National Income.

Accommodation

These are the 484-room Aloft Hotel at KL Sentral - Starwood Hotels & Resort’s sixth hotel brand and largest Aloft hotel in the world - and the 90-room Premiera Hotel at Jalan Tuanku Abdul Rahman, a four-star brand created by the Impiana Group.

Several of these niche tourism subsectors are growing rapidly due to demand from tourists from across the world, the most prominent being medical tourism and MICE – Meetings, Incentives, Conferences & Exhibitions.

tourism is identiÀed as one of the key sectors to stimulate economic growth under the government’s Economic Transformation Programme.

jor MICE events, attracting a total number of 61,659 delegates and an estimated revenue of RM597 million.

A major project was announced recently by KLCC (Holdings) Sdn Bhd that will see the development of a new mixed-use commercial project on a 1.6-hectare plot between Suria KLCC and the Asy-Syakirin mosque in joint venture with the Qatari Investment Authority. The development will consist of a 76-storey hotel, serviced apartments, residences and associated facilities; 64-storey ofÀce tower; six-storey retail podium; and basement car park. The development is expected to be completed by end of 2017. Recently, Alila Hotels & Resorts group also announced plans to debut in Peninsular Malaysia with a boutique hotel - the Alila Bangsar KL. Slated to open by early 2017 at a mixed development known as The Establishment, opposite Menara UOA Bangsar, the Alila Bangsar will comprise 124 rooms and will be housed on the top Àve Áoors of the 41-storey mixed development. The hospitality market will see further capacity coming on stream with the entry of additional branded hotels in the near future such as the St. Regis in 2014, The Regent in 2015, Four Seasons Place Kuala Lumpur and W Kuala Lumpur in 2016. This along with the continuous effort to promote Malaysia as prime tourist destination and recent favourable Budget measures, augurs well for the country’s tourism industry.

January-February 2014

Cover Story

Placemaking: Bringing It Together

Over 50 per cent of the world’s population now lives in urban environments and that percentage is only set to grow. Malaysia is no exception. How can cities accommodate this steady inÁux while creating places where people can live, work and thrive?

n the long-established cities of the world’s mature economies, most public places evolved organically, from open plazas to well-connected train stations, growing in clusters around places of worship, transport hubs or intersections. Few were intentional; people simply gathered there or travelled through them on their way from A to B. In some cases, their popularity worked against them: the more people who Áocked to a public area, the more cluttered they became. Transport routes backed up, imperfect short-term Àxes outstayed their welcome and what was once a suitable public space became an unruly mess. At the other end of the spectrum, new-built cities in emerging economies had the opportunity to design and build bespoke public places, only to Ànd they weren’t being used to full capacity, whether due to a lack of public interest or developers being unable to deliver on their original plans. Placemaking is all about striking the right balance. The ability to satisfy that instinctive human desire to gather while taking advantage of all the beneÀts it can bring – from sustainability to vibrant commercial activity – without producing a city-sized white elephant.

All In The Approach According to Mark Harrison, design director with Atkins in Beijing, “The creation of a ‘place’ is about more than technical issues, like land use zoning or individual building design. Placemaking involves multi-disciplinary and multi-stakeholder approaches – that’s one of its key features.”

Peter Heath, design director of public realm for Atkins in London, echoes this sentiment. “This type of work moves beyond a single professional design discipline or isolated group of disciplines – architect, landscape architect, highways engineer, urban designer, artist – imposing a physical design solution on a site for a single client. “Instead, it’s a partnership of multiple experts, working with multiple end users and their clients and other representatives to develop and implement the making or remaking of somewhere with an acknowledged, sustainable design life.” This approach was at the heart of the Trafalgar Square masterplan. Despite being a focal point for London life, Trafalgar Square had become an unwelcoming place by the 1990s. Six lanes of vehicle trafÀc, pollution, poor sight lines and difÀcult access meant fewer people were visiting and those who did wouldn’t stay long. Collaborating with a multi-disciplinary group of experts, Heath and his team designed linked spaces that were safe, convenient and attractive. These provided a place that could serve as a stage for a wide range of cultural activities and stimulate existing and new uses, while supporting an increased number of visitors and users. Since work was completed in 2003, the revitalised Trafalgar Square has regained its spot at the centre of national celebrations (free concerts and public events have returned) and enjoyed a signiÀcant uptake in both visitor numbers and satisfaction.

Changing Face of China In China, the Ministry of Housing and Urban-

January-February 2014

Rural Development estimates that 300 million people currently living in rural areas will move into cities from 2010 to 2025. “We are seeing a growing acceptance of the multi-disciplinary approaches that have proved successful elsewhere in the world,” says Harrison, whose team has been increasingly engaged in such projects in Beijing and beyond in recent years. “The authorities are looking at how to apply them in ways that will work in China.” As Harrison points out, “What works in London or Budapest may not prove successful in Beijing. For example, personal space is generally perceived differently in Asia compared with Europe. In Europe and America, people tend to prefer a bit more distance. First-time visitors to China might see groups dancing in a public square in the evening or doing early morning Tai Chi together in the morning. These are all unique to the Asian – and speciÀcally Chinese – experience and need to be accommodated in any placemaking process.” The National Advertising Industry Park project, which sits alongside the Tonghui River and began in 2012, is one of many Atkins examples which reÁects the speciÀc demands of Chinese culture, history and urban tradition when it comes to placemaking. Atkins was asked to develop a masterplan for a new advertising and creative arts zone on the edge of the central business district (CBD) in Beijing. The plan includes over 30 buildings, ranging in size from small-scale creative industry studios, to a museum and conference centre as well as a series of landmark towers and ofÀce buildings.

Cover Story

While it takes some inspiration from creative hubs like Soho in London and New York’s Madison Avenue, the Beijing project has a distinctly Chinese aspect. Sitting on the edge of the historically signiÀcant Grand Canal, which extends all the way from Hangzhou to Beijing, the plan opens onto the canal and incorporates it within this welcoming and important public space. A public square and pedestrian zone sit at the heart of the plan, with a bridge connecting the CBD and a new museum and conference centre. “Our aim was to create a place that is unique while giving it an urban feel and a sense that was related to its history – in this context, the setting by the canal,” explains Harrison. “What could have been a ‘campus style’ area now looks and feels like it’s part of the surrounding urban space, giving it a ‘streetscape’ feel. This was deliberate attempt to create an urban feeling within the development while remaining sensitive to the local culture and history.”

A Place In The Middle Dubai is recognised for its iconic buildings towering over the skyline, but very little placemaking activity has taken place around them, says Janus Rostock, associate design director with Atkins Middle East. “Now, there is growing recognition that developers and designers need to tie together the spaces between those buildings.” Much of the work has focused on converting existing rights of way for cars into public spaces, by re-zoning neighbourhoods and developing public squares that offer natural shade and ventilation - critical in a country where soaring temperatures make sitting outside problematic for half the year.

Park Attractions M alaysia has been making a name for itself as the theme park capital of Southeast Asia in recent years, and is home to the continent’s Àrst Legoland amusement park, located the Iskandar development corridor near the southern city of Johor just across the border from Singapore. The RM750 million park opened in September 2012 with 40 rides, shows and attractions, and added a new water park in October last year. Now, the country will add to its collection of major tourist attractions with the addition of East Coast Economic Region (ECER) has also received a boost with the launch of Twentieth Century Fox’s Àrst ever theme park. The Park will be developed as part of the RM5 billion Genting Integrated Tourism Plan (GITP) which also includes extensive upgrades of the Resorts World Genting complex. Resorts World Genting which is home to Malaysia's only casino, has been in operation for the past 35 years. Over the last two years, it has recorded more than 20 million international and domestic visitors but the company is looking to grow that Àgure. The

RM4 billion investment under the GITP will be used to develop new hotels, infrastructure and amenities and modernise existing hotels by 2016. The GITP will include a RM1 billion investment to set up the world's Àrst international 20th Century Fox World theme park and the region's second Premium Outlet Centre offering branded goods. Due to open in 2016, the Theme Park will feature rides and attractions based on 20th Century Fox blockbuster titles, including Ice Age, Rio, Alien vs. Predator, Planet of the Apes and Night at the Museum, among others. According to chairman and chief executive of Genting Malaysia, Tan Sri Lim Kok Thay the theme park will pave the way for continued growth of Resorts World Genting with a next-level family entertainment experience which will attract tourism dollars to Malaysia. The new park will target families and adults and aims to lure in strong numbers from both within Malaysia and across Southeast Asia and China, as tourism numbers in the region continue to climb.

At the same time, teams working on these schemes had to keep in mind the “wellness” agenda that is currently taking root in the Middle East. “The UAE has one of the highest rates of diabetes among young people. People eat rich food with too much sugar and take very little exercise,” says Rostock. As a result, the Atkins plans have focused on incorporating walking, cycle and public transport links into the Middle East’s growing cities. In an ideal world, placemaking projects such as these will be able to incorporate input from diverse sources and deliver a solution that works for city dwellers, businesses, transit systems and visitors alike.

www.atkinsglobal.com January-February January-February2014 2014

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Cover Story

Making Room:

Maximising Asset Values

n certain markets, the conversion of ofÀce buildings to hotels is a productive way to maximise asset values and is resulting in big changes in the way new hotels are coming onto the market.

business taking place at these premises, it also means the loss of hundreds, if not thousands of RM a day in rent, not to mention the knock-on effect to other businesses in the area.

A good example of positive proÀt being made can be seen in Germany. With a large amount of ofÀce-to-hotel conversions being used for budget accommodation, new franchises located around Berlin near busy transport lines are seeing large gains in room occupancy and revenue per available room (RevPar). Furthermore, a drop in the VAT rate for accommodation from 16 percent to 7 percent has allowed not only reductions in room rates but also investment, improvement of service quality and additional services.

Compare this to the UK where nationally around 12 per cent of ofÀces have stood empty in recent years, with some areas including Birmingham reporting 18 per cent of commercial property standing empty. There the Government believes that these unoccupied premises could be converted into homes (rather than hotels) while still meeting future demand for ofÀces when the economy picks up. It is thought a vacancy rate of just 5 per cent would be sufÀcient to cope with the ‘churn’ of ofÀces as businesses start up, grow or in some cases fail.

In Malaysia, the NAPIC (National Property Information Centre) Commercial Stock Report for 1Q2013 revealed that in the Klang Valley alone there is a total of 104 million sq ft ofÀce space and the overall vacancy rate in the market is reported at 23 per cent. Although slightly lower than the 25 per cent recorded in the previous quarter, this still means that not only is there no

With Malaysia’s current vacancy rate at nearly double that of Britain and numerous untenanted ofÀce buildings in the main cities, there is therefore a bigger gap in the market for ofÀce-to-hotel investments. In addition, an increase in tourist arrivals, which in 2012 reached an all-time high of 25.03 million, and the development of the

Piccolo Hotel, Jalan Bukit Bintang

January-February 2014

tourism sector as a key economic driver are creating demand for conveniently located, affordable accommodation. This demand By Andrew Sill could be met by converting the many vacant ofÀce buildings in the main cities, which often beneÀt from prime locations near to popular holiday destinations.

Local Examples A number of Malaysian entrepreneurs, looking to achieve higher yields, have already begun such conversion programmes. Take Mak Hoong Weng, the ardent property investor for example, who over the past ten Plaza Atrium Conversion

Cover Story With the current vacancy rate of ofÀce space in Malaysia at 23 percent coupled with the massive future supply of ofÀce space, there is stiff competition to secure tenants. Conversion to an alternative use such as hotel or serviced apartment could deliver better returns.

Tune Hotel Kings Cross years, has racked up a respectable collection of buildings that stretches from Kuala Lumpur to Malacca and Kuantan. Last year Mak, the Director of Art Form Enterprise Sdn Bhd which manufactures footwear, announced plans to convert 10 of his buildings into hotels by the end of 2013, offering over 1,000 rooms. One such project is Star Luxury Hotel at the junction of Jalan Raja Chulan. This development by Mak saw the conversion of two ofÀce towers into an upmarket boutique hotel that charges between RM280 and RM1,500 a night. Even before the Hotel was opened, the main tower had appreciated beyond the original purchase price, with an offer of nearly three times the cost price received to part with the building. Mak has also acquired a number of other buildings in the vicinity, the most notable being a multistorey heritage building at Jalan Tun Perak. Presently, the ground Áoor has been leased to food and beverage operators and upper Áoors rented to a budget hotel operator. On Jalan Bukit Bintang, the Wisma Peladang ofÀce building underwent a complete retroÀt in 2006 in order to create the current Piccolo Hotel (opposite). The 13-storey ofÀce building was transformed into a modern 4-star hotel and Berjaya Land immediately struck interest in the hotel, buying 51 percent ownership. As of September 2013, the Hotel was clocking average room rates of RM246 with 80 percent occupancy. Still in the city centre, the Plaza Atrium building (opposite page), located on Lorong P Ramlee, is currently under reconstruction by Pinehigh Development Sdn Bhd. Originally designed by renowned architect Kenneth Yeang it was completed in 1984. In 2005, approval was granted for redevelopment and the former corporate ofÀce tower is now being converted into 109 serviced apartment units over 34 Áoors in an annexed wing. Similar developments are happening elsewhere in Malaysia. In Sarawak, two ofÀce buildings in Kuching have been converted

into hotels to capture the increase in tourist arrivals. The former KKB building was redeveloped to provide the 80-room Abell Hotel while the former Kuching Tower Building was converted into the 50-room Lime Tree Hotel. These two redevelopments are part of a RM28.55 billion investment deal in order to build 14 mega projects in the Sarawak Corridor, that will amount to RM334 billion in investments from 2011-2030. The current trend of investment in ofÀce building redevelopment seems to be focused on older properties. The growing number of new Grade A ofÀce buildings in prime locations and with better facilities prompts tenants to vacate older buildings and move to newer more stylish premises even if it means higher rental rates. Older ofÀce buildings that are in strategic locations and close to tourist attractions and transport links generally make better candidates for redevelopment into hotels, maximising yields and boosting income dramatically due to far higher gain margins.

Looking Abroad Tune Group of Hotels recently expanded to London with properties now situated in prime areas across London including Kings Cross and Paddington. In September 2011, a substantial vacant ofÀce building, formerly the headquarters of Unite Union, located at 324 Grays Inn Road, Kings Cross, was acquired by the Group. Opening a few weeks ahead of the London Olympics, the Tune Hotel Kings Cross shot to popularity with occupancy rates of 95 percent. It consistently achieves an average Expedia guest rating of 4 out of 5 and 95 percent of people recommend the hotel on tripadvisor.com, showing the immediate success of the investment. Permission was also granted recently to convert a 1960s eight-storey ofÀce building on Red Lion Street in Central London's Bloomsbury district into a 150-bedroom hotel, a project in line with the London Plan's strategic need for increased hotel space. The trend is similar in other parts of the world. In the USA, the Trump Organisation is planning a US$200 million redevelopment of the iconic Old Post OfÀce Building on Pennsylvania Avenue in Washington DC, into a luxury hotel. In New Zealand, international hotel operator Accor Hotels announced it would open a boutique operation in the Reserve Bank ofÀce building on Customs Street in downtown Auckland. This is ex-

pected to be the start of a trend of converting ofÀce buildings to hotels, as there is a strong demand for hotels in in the city due to acute shortage of existing hotel stock for sale, thus making more ofÀce conversions a real possibility.

Why Convert A vacant building will be losing thousands of any currency a week on rent and depending on how long the ofÀce remains vacant, could cost a property owner millions. Converting the space to hotel accommodation allows yields to be maximised and income to be constant (even in low season). With the current vacancy rate of ofÀce space in Malaysia at 23 percent coupled with the massive amount of future supply of ofÀce space, there is stiff competition to secure tenants, meaning it could be months even years before vacant ofÀce space is Àlled. Conversion to an alternative use could bring better returns. In terms of when to develop, entrepreneurs seem to be investing in a recovering market.

Key Factors Deal Structure International operators will usually require either a management agreement or franchise, both of which have pros and cons. Planning Issues Expert advice must be sought at the outset to establish whether a change of use will be supported by the local authorities and to determine whether the building has the capacity to function as a hotel.

Market Demand Analysis A detailed feasibility study must be conducted to identify demand for the type of hotel and ensure viability of the conversion. Design Considerations Factors such as suitability of existing structural design, lift failities, M&E and Fire & Safety systems etc all have a potential impact on the viability of the scheme.

Life Cycle Costing To ensure that whole life costs are minimised when capital costs for conversion are being considered. Roja Rani Head of Research & Consultancy Zerin Properties Email: roja@zerinproperties.com

January-February 2014

Cover Story

Healthy Returns While the concept of Health Tourism might not be new, the rapid expansion of this industry in the last Àve years is now catching the attention of new market players every day. This article looks at how the concept is taking hold in Malaysia. practical information - the MHTC has now been responsible for positioning Malaysia has one of the Top 5 destinations in the world for Healthcare travellers in 2012. Malaysia seems to be playing its cards right in this game and the Government’s strategic investment is paying dividends. So, what are Malaysia’s key strengths in this Àeld? Effective medical services, delivered at a recognised international quality standard for an affordable price are seen to be the key differentiators. In Malaysia, an international patient will Ànd world-class hospitals and medical centres, accredited by national and international accreditation bodies like the Joint Commission International (JCI) or the Malaysian Society for Quality in Healthcare (MSQH).

he medical tourism growth Àgures from the main travelling hubs have not gone unnoticed to the Malaysian Government, which has rapidly realised that it has all the right attributes to get involved. As such, it is making bold moves to divert part of the US$100bn (RM320bn) worth of business generated by health tourism into Malaysian territory. In 2009, the Malaysian Ministry of Health (MOH) created a specialised organisation to focus on promoting and emphasising Malaysia as a preferred healthcare destination in the region: the Malaysia HealthCare Travel Council (MHTC). With this ambitious target in sight, the MHTC immediately began developing programmes and strategies to support registered home-grown medical facilities and a variety of healthcare service providers and professionals, responsible for transforming a medical need into a health tourism “experience” in Malaysia. Collaborating with a variety of different healthcare stakeholders - including the customer directly by providing a wide range of

January-February 2014

These facilities have been built or enhanced with Government support, providing only the most modern, innovative and efÀcient treatments. To add to this, Malaysia has a panel of English-speaking or even multi-lingual specialists in a diverse array of medicine Àelds, trained and accredited internationally in countries like Australia, the US or UK. This is vital when working with patients from across the world. All this, with short waiting times for the patient and costs up to 80 percent less than back home. Malaysia’s lower cost of living is reÁected in the price to the consumer, applying not

just to medical services and consumables such as prostheses or implants, but also in accommodation expenses - hotels, food and transport are all very accessible. This makes the overall cost of treatments affordable to many visitors that could not proceed with, sometimes life-changing treatments back home. On top of this, Malaysia’s renowned warm hospitality goes hand in hand with extensive choices in beach and Spa retreats, amazing gastronomic experiences, and, last but not least, a vibrant cosmopolitan urban culture - again, cheaper than back home. Interestingly, Cosmetic/Plastic Surgery is one of the medical Àelds that attracts most visitors within the Healthcare Tourism market and represents a large share of the surgical demand. Born out of desire to meet the perceived opportunities for this niche market in the region, Beverly Wilshire Medical Centre (BWMC) opened to the public in May 2012 as one of the only integrated beauty medical centres in Malaysia. After just two years in operation, BWMC already represents a substantial contribution to Malaysia’s Medical Tourism sector and is ambitiously looking to double its capacity in 2014. While, at this point, some 60 percent of BWMC clients come from Australia and New Zealand, BWMC is looking to expand its reach and attract clients from Singapore, Indonesian, Middle East, US and UK. Until now, the trend for medical travellers from those countries has been to head for places such as Thailand and Korea for their cosmetic procedures – two top competitors globally in the Àeld of cosmetic health for Malaysia.

Cover Story With its main centre in Jalan Tun Razak, just a few minutes from Kuala Lumpur City Centre, BWMC offers cosmetic plastic surgery, non-invasive aesthetic treatments and healthy ageing therapies all under one roof. The Centre Àelds a team of highly-skilled specialists with extensive experience, offering an wide range of treatments under these three main specialities. For Cosmetic, Plastic and Reconstructive Surgery, BWMC counts among its number internationally renowned surgeons Dr.Nasir Zahari, Dato’ Dr. Jalil Bin Jidon and Dr. Eileen Fong. Aesthetic treatments are offered by Dr. Liow Tiong Sing, Dr. Karen Po and Dr. Wong. Healthy Ageing services, consisting of health and genetic screening and stem cell therapy are provided by A./Prof. Dr. Chin Sze Piaw. All of these specialists trained overseas and have acquired extensive experience in their respective Àelds.

For example last year, I performed at BWMC the Àrst Body Lift procedure using the newest technology TIGR® Matrix in collaboration with the specialists of University of San Diego. I Ànd it exciting and inspiring at the same time. How does Malaysia fare in the global industry of cosmetic surgery? What are its competitive key points?

In Conversation with Dr. Nasir Zahari Plastic, Reconstructive & Cosmetic Surgeon Medical Director at BWMC Why did you specialise in this Àeld? My interest in this area began during my tenure as a general surgeon. Cosmetic surgery is where science combines with art. Science is where we learn about the anatomy and the physiological changes in the body that result in sagging skin and loss of muscle tone. The art comes in the enhancements that we can make to change someone’s appearance and boost their conÀdence or quality of life. Everyone sees things differently and subjectivity usually deÀes science. The challenge for me is consulting different patients and identifying and developing ways to meet their expectations. The desire to excel in achieving results for the patient is what drives me to work with new technologies.

Malaysia is fortunate to possess the right attributes to become very successful as a medical tourism hub. The top three factors that people look for are quality, affordability, and ease of communication. Good quality results are a must, there are no two ways about it. Malaysia has the infrastructure and the Government has laid out strict rules and regulations for medical centres to comply with, so that patients are reassured with safe procedures and quality of service. BWMC takes great care in ensuring the safety of its clients and has made sure every safety measure is implemented. While Thailand also offers high medical standards and is relatively inexpensive for cosmetic surgery, not all specialists are bilingual. As a result, there are some communication issues that can lead to misunderstandings between what the patient hopes to achieve and the results delivered. It’s for this reason that we have been seeing a lot more patients who were previously treated in Thailand, now coming to Malaysia.

The concept of BWMC is clear and simple. It is the Àrst and only integrated beauty hospital in the region and offers world-class facilities, top professionals and the latest technologies. We are registered with the Ministry of Health and every standard of safety and care has been adhered to. Patients seeking cosmetic or aesthetic treatments are healthy people and want a personalised service. They want to walk into a comfortable and luxurious medical centre rather than a general hospital where the ambience will differ. We know the importance of personalised service. The patient’s experience at BWMC bears no resemblance to what they would encounter in a General Hospital. How signiÀcant is the UK Consumer for the Cosmetic Tourism Industry? Quite signiÀcant, actually. The UK is ranked 16th among countries with the highest number of cosmetic procedures. An estimated 100,000 UK citizens travel every year for cosmetic procedures to various destinations in Europe, Asia and even South Africa. A big proportion of Thailand’s health travellers are coming from the UK.

What is Beverly Wilshire Medical Centre bringing of added value to this industry? The idea to establish this medical centre was born about three years ago. The aim was to set up a one-stop centre to provide comprehensive aesthetic and cosmetic treatments. We offer various non-invasive procedures from injectables to different types of laser treatments and a wide range of cosmetic surgery procedures.

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Cover Story

Top Destination

A further advantage is that all the KLCC precinct features and attractions are conveniently accessible via an air-conditioned underground tunnel and overhead pedestrian walkway linked directly to the Centre. The 562-metre walkway also connects the Centre to Pavilion Shopping Mall and other nearby tourist landmarks. It currently records a footfall of some 3.3 million each month. At the Centre, a number of initiatives have been put in place to ensure a positive visitor experience. One example is Culinaria, an offering designed by the award-winning culinary team to highlight the Malaysia’s rich and diverse cultural heritage. It encompasses traditional and contemporary cuisine that goes beyond standard convention centre fare, providing guests with enticing dishes and F&B options that meet a wide range of taste, event and dietary requirements. A range of Culinaria promotions is planned throughout the year.

ith the MICE (Meeting Incentives Conferences & Exhibitions) market identiÀed as an important sector under the Tourism NKEA of the Economic Transformation Programme, Kuala Lumpur Convention Centre is set to make a signiÀcant contribution to the sector. This will be particularly the case during Visit Malaysia Year 2014 with the Centre helping to raise Malaysia’s proÀle as the business tourism destination of choice. In 2013, between 1 January and 30 November, the Centre hosted 1,430 events and served over 1.7 million delegates and visitors. For the coming year, the Centre anticipates a signiÀcant increase in visitor numbers and its 2014 calendar is already Àlling up with high proÀle events. Among these are the International Convention of Toastmasters International 2014, Million Dollar Round Table 2014, Meetings & Events Australia (MEA) Annual National Conference 2014, ASEAN Federation of Cardiology Congress 2014, 25th International Federate of Surveyors (FIG) Congress 2014 and Offshore Technology Conference Asia 2014. “These events will bring large numbers of delegates and business visitors to Malaysia, many for the Àrst time. Making a good impression will be fundamental to creating a lasting impact of Malaysia as a top MICE

choice,” says Alan Pryor, the Centre’s recently appointed General Manager. “The world-class facilities at the Centre itself offer a number of advantages that help make it an attractive landing site for business tourists. These are complemented by the fact that the iconic Kuala Lumpur City Centre precinct is literally on the doorstep.” The precinct offers a stimulating environment in which to work, visit, explore, dine, shop and enjoy. “There’s worldclass shopping, leisure and cultural activities right through to the memorable attractions that make up Malaysia’s Iconic Experience in Kuala Lumpur,” he adds. These attractions provide visitors with an insight into the heart and soul of the nation, making it the ideal way to start any exploration of Malaysia. They include the PETRONAS Twin Towers, Suria KLCC Mall, Petrosains Discovery Centre, Dewan Philharmonic PETRONAS, Galeri PETRONAS, Aquaria KLCC and KLCC Park to name a few.

January-February 2014

On the technical front, the Centre is investing RM7.5 million over the next year on four technology projects. These include upgrading the data centre backbone infrastructure to 10 Gigabytes, introducing a digital walkie-talkie system, implementing an IP (Internet Protocol) CCTV system and improving the virtualised server environment for the data centre. The upgrades will provide delegates and visitors with an enhanced quality AV experience and ensure faster and more stable connection speeds. The improved infrastructure will also provide team members with better monitoring and control mechanisms to help increase productivity levels. Improved video surveillance capabilities with better quality video coverage at more locations throughout the venue will enhance safety for visitors while at the Centre.

www.klccconventioncentre.com

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Luxury Haven T

he island of Langkawi recently continued its bid as a high-end business and leisure destination with the ground-breaking of two new landmarks – the Hotel St Regis Langkawi and Langkawi International Convention Centre (LICC). The two developments will be located adjacent to the existing Westin Hotel Resort & Spa Langkawi. The developments are scheduled for fast-track completion in time for the ASEAN Summit due to be held in April 2015. Indonesia-based Rajawali Group will undertake the projects with an investment of more than RM400 million. A sum of RM300 million is allocated to build 84 suites and 11 villas for St Regis Langkawi, with the help of strategic partner Starwood Hotels & Resorts Worldwide, which is operator of the luxury St Regis Hotel chain.

The group is also investing over RM100 million to build a 5,000 sq ft convention centre which can accommodate up to 1,000 delegates. The company Àrst started its investment in Langkawi in 2005 with the acquisition of Sheraton Perdana Resort, which was later rebranded as Westin Hotel Resort & Spa. Together with the Westin, the island already offers several luxury resorts including the Andaman, Casa Del Mar, Datai, Danna, Four Seasons, Meritus Pelangi, Seri Cenang, Sheraton and Tanjung Rhu Hotels.

The concept of “value for money” is quite important for this population and they start to fully understand the beneÀts of travelling abroad to have their procedures carried out safely and with great results. While some of these travellers are already coming to Malaysia and to BWMC, we believe in continuing to excel in delivering results and growing our excellent reputation based on the testimonies from our patients, to increase these numbers. This is an industry in which trust and personal advice carry a lot of weight. That said, the most sought after procedures by the UK population are those where BWMC has particular expertise and is already well-known: Breast Augmentation and Breast Lift, Facelift, Tummy Tuck and Liposuction and on the non-invasive side, Botox and Dermal Fillers Injections. Therefore, I am conÀdent that the number of UK health travellers arriving to Malaysia will grow exponentially in the next two to three years. At our Healthy Ageing Centre, we impart knowledge and tips on how to maximise the beneÀts of healing and ageing gracefully with therapies, diet and exercise. The Centre is Àtted with 5-star suites and a Day Care Centre, overlooking the Royal Selangor Golf Club course, for clients to recover in maximum comfort and privacy. A wide range of dental services is also provided by Beverly Wilshire Dental Specialist Centre at the same location. BWMC is the Àrst medical centre in Malaysia to offer Suction Assisted Follicular Extraction and Reimplantation (S.A.F.E.R), for hair transplantation.

We also offer the award-winning Liposonix Slimming Treatment. Keeping up with the latest versions of the treatments imparted at the Centre is a prime directive. We aim to be one of the most sought-after beauty medical centre in the region. Around 70 percent of our clients come from Australia, US, UK and New Zealand with the majority seeking treatments such as Face Lift, Breast Augmentation, Tummy Tuck and Liposuction (Cosmetic Surgery) or Botox and Fillers and Laser Resurfacing (Aesthetic Medicine). The latest development for us is a newly opened clinic at Tropicana City Mall, which focuses on non-invasive and dermatological treatments. Beverly Wilshire Medical Centre Level 6, 8 & 9, Dijaya Plaza, 237 Jalan Tun Razak, 50400 Kuala Lumpur. Tel: +603 2118 2888 Email: enquiries@beverlywilshiremedical.com

Tourist arrivals in Langkawi had already exceeded the target set under the Langkawi Tourism Blueprint 2011-2015 with 3.06 million visitors, the original target set for 2015. There is a view however that the island has the potential to attract additional high-end international tourists and that with selected strategic anchor investments and top-class brand names, it can become a leading nautical tourism destination. Langkawi also offers three marinas in strategic locations around the island archipelago with a range of facilities for marine tourism including cruise charters and diving.

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Cover Story

Winning Class Etihad Airways is one of the fastest-growing airlines in the world. Established just ten years ago, this dynamic, multi award-winning organisation has expanded its network, increased its Áeet and formed strategic partnerships to become a global force in this highly competitive sector. We talk to Dave Walsh, General Manager Malaysia, to get the latest updates. Etihad has introduced a number of new facilities and services during 2013 including double daily Áights from Kuala Lumpur since June and the introduction of the Check-In Desk at KL Sentral. What impact are these changes having? Dave Walsh

The introduction of a second daily Áight has signiÀcantly boosted Etihad Airways’ presence in the Malaysian market and has also enhanced the airline’s offering and appeal to travellers. Award-Winning Pearl Business Class

Etihad Airways’ guests now have the choice of a morning or evening departure from Kuala Lumpur and shorter connection times in Abu Dhabi to many destinations in the UK, Ireland and Europe. The introduction of a city centre check-in service at KL Sentral Station has greatly improved the travel experience for Etihad Airways’ guests; it’s now a much easier and more convenient option. Guests can check-in at KL Sentral up to four hours before their Áight and have their bags checked all the way through to their Ànal destination. This enables guests to catch train to Kuala Lumpur Airport – without the burden of suitcases - and bypass check-in queues once at the airport. The journey only takes 28 minutes and the trains are frequent and reliable. Etihad recently signed a 3-year agreement with VisitBritain. How will this roll out in the Asia PaciÀc markets? SpeciÀcally SE Asia and Malaysia? The new programme will be focused on encouraging more travellers from South East Asia to visit Britain and to Áy with Etihad Airways, of course. The two organisations are currently working on a range of consumer and travel trade marketing activities to highlight Great Britain’s most popular attractions and to promote Etihad Airways’ Áights to London Heathrow and Manchester.

Business Class Lounge Abu Dhabi

Etihad’s Flying Nanny Service on long haul Áights

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January-February 2014

Cover Story Àrm plans to add new destinations in the UK and Ireland in the immediate future. Turning to your own career, what was it that made you want to join Etihad? What are your impressions of the Malaysian business scene so far and away from work what do you like to spend time doing? I came from an airline background and had always admired Etihad Airways’ impressive

World-Leading Diamond First Class

Etihad Airways will also have a signiÀcant presence on VisitBritain’s digital platforms, including its website - VisitBritain.com. Turning to 2014, Etihad recently announced extensive expansion plans with new destinations added to the network. How does this position Etihad in terms of global coverage vis a vis other airlines that use the Middle East as their hub? In conjunction with our partners, Etihad Airways offers a global network of more than 375 passenger and cargo destinations. This is more than any other Middle Eastern airline. We have achieved this global reach by increasing the number of destinations we serve in our own right to 102 (including eight that will be added in 2014) and establishing extensive codeshare partnerships with like-minded airlines across the globe. This strategy enables us to offer more Áights to more destinations than would be achievable by a single airline. New aircraft due to be added to the Áeet in 2014 include the Àrst Airbus A380s and 787-9 Dreamliners. What impact will these aircraft have on capacity and passenger experience?

experience – over and above the technological enhancements and features of each aircraft type. When the A380 and 787 enter service in late 2014, Etihad Airways will introduce its next generation product in all cabins – offering Diamond First, Pearl Business and Coral Economy Class guests a travel experience that is truly best in class. Are there any plans to add other destinations in the UK and Ireland besides London, Manchester and Dublin? Etihad Airways already has a strong presence in the UK with its three-times-a-day service to London Heathrow, twice daily Áights to Manchester, as well as many regional destinations served by its codeshare partners. Our 10 weekly services to Dublin in Ireland are also popular with travellers from Malaysia as are connecting codeshare Áights with our partner Aer Lingus to Cork, Shannon and Kerry County. Etihad Airways is always examining opportunities to expand our network but has no

leadership, rapid growth and the top quality service the airline delivers. So when I had the opportunity to join such a fantastic, world-class organisation I needed absolutely no persuasion. I am settling into KL well and really enjoy meeting and getting to know Etihad Airways’ loyal customers. I am looking forward to getting more involved in expat community activities and to continuing to build Etihad Airways’ proÀle in the Malaysian market. Outside of work, my priority is family – wife and children - who are excited about the move from Ireland. I also enjoy watching and playing as much sport as time and other commitments permit. I like to play Gaelic football, football and golf and, since moving to KL, I have enjoyed an occasional jog around KLCC park.

www.etihad.com

The introduction of new, state-of-the-art aircraft will have two main beneÀts for travellers. First, it will increase the number of destinations we Áy to and second, increase the number of seats we offer to popular destinations such as London Heathrow and New York. The Airbus A380, for example, has the potential to nearly double the number of seats on a particular route compared to some of the aircraft we currently Áy. The Airbus A380s and 787 Dreamliners will also have a positive impact on the guest

Expanding Fleet

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Cover Story

Singapore Solutions Against a backdrop of growing opportunities from both traditional outbound markets including the US, Europe and Japan, and high-growth potential markets such as China and India, Singapore has set its sights on ensuring that the tourism sector in the country remains competitive and continues to be a key contributor to the economy in the years to come.

he Business Travel and Meetings, Incentive Travel, Conventions and Exhibitions (BTMICE) sector is a key contributor of tourism receipts. In 2012, the number of business visitors rose to 3.35 million, an increase of 4 per cent from 2011. Expenditure by these business visitors also rose by 2 per cent to an estimated S$5.73 billion .

Why Singapore? Strong Knowledge Economy Singapore's extensive global trade and communications networks provide market access and trade Áows to Asia PaciÀc and the world. Singapore is also the home base of thought-leadership and innovation with unique strengths in knowledge-based and knowledge-driven industries such as banking & Ànance, biomedical sciences, energy, ICT & media, energy and environment, as well as transport & security.

Strategic location and accessibility Singapore is one of Asia’s main air, sea and telecommunications hubs with market access to some 3.3 billion people within a 7-hour Áight radius. Positioned in the middle of the fast-growing and emerging Asia-PaciÀc markets of China, India and ASEAN, business travellers can easily convene in Singapore, with more than 100 international airlines Áying to some 250 cities in 60 countries and territories worldwide.

Extensive trade links also provide companies with greater market connectivity through the reduction of tariff and nontariff barriers. The Republic currently has the most extensive network of free trade agreements (FTAs) in Asia.

Pro-Business Environment Strong trade and investment makes Singapore the second most competitive country in the world and Asia’s most competitive (World Economic Forum’s Global Competiveness Report 2013-2014). The World Bank also ranks the Republic as the World’s easiest place to do business (Doing Business 2014 Report) and the Economist Intelligence Unit ranks Singapore as having the best Business Environment in Asia PaciÀc and the world (EIU Country Forecast Report 2011). Singapore is also currently rated the best place in Asia and 9th in the world for IP rights protection (IMD World Competitiveness Report 2011). Similarly, the World Economic Forum’s Global Competitiveness Report 2013 - 2014 ranks the island as having the best IP protection in Asia, and the second best in the world.

Variety of venues State-of-the-art convention centres, exhibition halls, and meeting venues for MICE, are available that suit a variety of needs and budgets. Marina Bay Sands Expo & Convention Centre, Suntec Singapore Convention & Exhibition Centre and the Singapore

January-February 2014

Expo with its MAX Atria wing, are all suitable for large-scale international exhibitions and conferences. Some of Singapore’s attractions also meet the growing demand for more interesting and non-traditional meeting venues and experiences outside of the conventional board room and hotel meeting facilities. Some attractions that integrate MICE facilities together with unique leisure offerings include the S.E.A. Aquarium, River Safari, Gardens by the Bay, ArtScience Museum, Universal Studios Singapore, Goodman Arts Centre to name a few.

Choice in accommodation With more than 150 hotels and over 50,000 rooms, there is an answer to every budget and preference – from no-frills accommodation to boutique hotels, modern business hotels and luxury beach resorts. Most hotels offer fully-equipped business centres, meeting facilities, broadband Internet access and other conveniences for business travellers.

UPCOMING EVENTS 12 – 16 March 2014 International Furniture Fair Singapore 1st ASEAN Furniture Show 2014 The Décor Show 2014 Hospitality 360° As Asia’s premier design-led furniture and furnishings sourcing platform IFFS/ AFS continues to attract recurring and Àrst time quality exhibitors with more international as well as design-brimmed afÁuence. Close to 300 international companies have already registered. www.IFFS.com.sg www.TheDecorShow.com.sg www.Hospitality360.com.sg

Cover Story 15 – 16 May 2014

13 – 15 May 2014

1 – 3 October 2014

BLUEPRINT 2014

ASIA FASHION SUMMIT

WORLD ARCHITECTURE FESTIVAL

The fashion trade gateway for East-West Exchange in Asia. Currently into its 5th year, BLUEPRINT specialises in launching Pre-Spring collections and curating fresh and forward menswear, womenswear and accessories from Asia’s best emerging and established talents, as well as guiding international brands looking to enter Asian markets.

Global fashion looks to the East at the 5th Asia Fashion Summit in Singapore. As Asia’s premier fashion business conference, the summit aims to provide an avenue for industry practitioners to analyse and understand the intricacies of and business opportunities in the dynamic Asian fashion market.

Marina Bay Sands

As a multi-faceted trade show, BLUEPRINT enjoys substantial domestic and overseas buyer and media attendance annually. A core facet of BLUEPRINT is EMPORIUM, a two-day off-shoot of the tradeshow that allows consumers to partake in the gathering of designers with a massive shopping and lifestyle event. BLUEPRINT is a key event of Singapore's fashion week known as Asia Fashion Exchange and receives strong support from International Enterprise Singapore, Spring Singapore and Singapore Tourism Board.

blueprint.sg

Organised by the Textile & Fashion Federation (TaFf), the event provides insights and shares expert views on topics that are important to fashion industry professionals and retailers in Asia. It examines trends, addresses sector challenges and discusses industry best practices. It provides tools that enable brands and designers to elevate their retail experience end-to-end: from turning service staff into “brand ambassadors”, delivering more personalised service, to engaging customers.

The world’s largest festival and live awards competition dedicated to celebrating, and sharing architectural excellence from across the globe. Featuring seminar and keynote programme with some of the most inÁuential and innovative architects working today. Plus experience the breadth of international architectural excellence in the WAF Festival Gallery, displaying all WAF award entries. Enter the WAF awards and your work is guaranteed to be seen by over 1,900 members of the global architectural community.

Participants are set to gain a wealth of insights covering innovation business approaches, best practice and more.

What’s waiting for you at WAF? Every shortlisted architect will present their award entry in front of WAF’s illustrious international judging panels, and you can see as many as you can Àt in to three days! Hear the inside story on over 400 projects. Plus Ànd out what the WAF judges think of all Ànalist schemes, including yours. Judges include Dietmar Eberle, Jeanne Gang and Patrick Bellew.

www.asianfashionsummit.com

www.worldarchitecturefestival.com

TURN YOUR COMPANY’S ECONOMY SEATS INTO BUSINESS CLASS FLAT BEDS

Announcing Etihad BusinessConnect, our loyalty programme for businesses that links your colleagues’ Etihad Guest accounts to an extremely generous company scheme. So while they’re racking up points for themselves, they’re also amassing them for your company, earning even more free ﬂights and upgrades. Sign your company up now and receive 5,000 miles just for registering. The only reason not to is if you really don’t like getting something for nothing. For more information, please contact Etihad Office at 603 2687 2222 or visit etihadbusinessconnect.com FREE FLIGHTS AND MORE FOR YOUR BUSINESS www.anyahindmarch.com

November-December January-February 2014 2013

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New Members

A warm welcome to our new members! SJ Grant Thornton Member Àrm of Grant Thornton International Ltd providing assurance, tax, corporate Ànance, restructuring and other specialist services to private and public listed companies. In 2013 named by the International Accounting Bulletin as the ‘Network of the Year. Four ofÀces across Malaysia in Kuala Lumpur, Penang, Johor and Kuantan, and access to over 35,000 Grant Thornton people across 100 countries. Level 11, Sheraton Imperial Court, Jalan Sultan Ismail, 50250 Kuala Lumpur. Tel: +603 2692 4022 Email: narendra.jasani@my.gt.com www.gt.com.my Dato NK Jasani – Managing Partner

Bakhache Luxuries Sdn Bhd Unique one-stop-facility for premium brands to access the Malaysian market. Representing and managing some of the world’s leading luxury brands including: Mouawad - exclusive jewellery and timepiece collections; ChristoÁe – prestigious French silversmith specialising in gifts, Áatware, tableware, decorative items, and jewellery; TrueÀtt & Hill: London’s Ànest traditional gentlemen’s grooming specialist and perfumier: Maison Francis Kurkdjian - International perfumier; and Facets, Gallery of Fine Jewellery. 63-2, Jalan Bangkung, Bukit Bandaraya Bangsar, 59000, Kuala Lumpur. Tel: +603 2095 5755 Fax: +603 2201 1316 Email: caron@bakhacheluxuries.com www.bakhacheluxuries.com Antoine Bakhache - Managing Director

AKAL Corporate Advisors Providing a broad spectrum of corporate secretarial services including: company formation, attending meetings, provision of advice on various corporate exercises, accounting, bookkeeping, payroll, paymaster, work permit applications and tax advice to all private limited and public companies, foundations and foreign branches and representative ofÀces. AKAL chartered secretaries are associate members of Malaysian Institute of Chartered Secretaries & Administrators (MAICSA). Extensive portfolio of local counsel covering wide range of jurisdictions within Asia, Europe, Australia and USA. 43-2 Plaza Damansara, Jalan Medan Setia 1, Bukit Damansara, 50490 Kuala Lumpur. Tel & Fax: +603 2011 4745/+603 2011 5745 Email: alwizah@akalcorporate.com www.akalcorporate.com Alwizah Al-YaÀi Kamal – Founder & Managing Director

Pullman Kuala Lumpur Bangsar Accor’s Áagship hotel for Malaysia, strategically located in Bangsar, mid-point between Kuala Lumpur city centre and Petaling Jaya, offering 513 contemporary comfortable rooms. Situated next to Menara Telekom and close to Pantai Hospital Bangsar, providing easy access to all major areas of the city via the Kerinchi Link LRT station across the road. KLIA is just 28 minutes’ away via KLIA Xpres from nearby KL Sentral Railway Station. Selection of restaurants, bars and deli, offering sociable and vibrant settings, combine with 12 meeting rooms and 2 large ballrooms with 2000-guest capacity. No.1, Jalan Pantai Jaya, Tower 3, 59200 Kuala Lumpur. Tel. +603 2298 1888 Fax: +603 2298 1999 Email: H7962-SL3@ACCOR.COM www.pullmanhotels.com Klaus Gottschalk - General Manager

Chai-Ramsay Brand Consultants Sdn Bhd New brand consultancy specialising in brand positioning, theme and concept development, and full implementation and production across all brand/ consumer touch points; CI, theme/content creation; conventional, digital, outlet/outdoor media; PR, event and sponsorship channels. Founded by Malaysian Jennifer Chan and Brit Paul Loosley, who between them have some 70 years of accumulated experience in strategic planning, brand management and creative direction, providing choice, cost efÀciency and individually tailored brand solutions.

Jennifer Chan Executive Director

Paul J Loosley Director January-February 2014

Tel: +6012 207 0578 (J Chan) +6012 283 3825 (P Loosley) Email: jennifer.chan@chai-ramsay.com Email: paul.loosley@chai-ramsay.com www.chai-ramsay.com

Members News

4th Round Of Scholarships From Alice Smith School Enables Deserving Students To Pursue A Levels For the fourth year running, the Alice Smith School recently awarded three full scholarships to deserving post-SPM Malaysian students, enabling them to pursue their A Level studies. The three recipients, who were selected based on a set of stringent criteria, are: Andrea Chew, who aims to go on and study Psychology; Wong Leh Theng, who has a keen interest in Art & Design; and Tee Chen Giap, who dreams of studying medicine. The scholarships run from January through to July and covers tuition fees, building levy and enrolment fee, all textbooks and materials, external exam fees and curriculum-based trips. To date, the Alice Smith School has invested in 14 young Malaysians to help them realise their full academic potential. In addition to A’ Levels, the three will have access to the AQA Baccalaureate, a qualiÀcation that builds on a student’s core A Level subjects, adding value through wider learning and enrichment activities. Students are required to complete 100 hours of enrichment activities in the core areas of work related learning, community participation and personal development activities. The Alice Smith School is one of the Àrst schools in Asia to offer the qualiÀcation.

Intercontinental Wins Big At HAPA Awards Provides Support To Soup Kitchen The New Year has already ushered in good fortune for InterContinental Kuala Lumpur with the award of nine prestigious accolades announced during the recent Hospitality Asia Platinum Awards (HAPA) 2013 – 2015 Malaysia Series. Now in its Àfth series in Malaysia, HAPA recognises and rewards the crème de la crème of the hospitality industry at all levels. Contending alongside over 500 nominees across 13 cities in Malaysia, InterContinental was vying for awards in several categories. The sweep of awards and accolades include HAPA Hotel of the Year - Extraordinary Stay – Best 5; General Manager of the Year, Ambassador of Hospitality: Phil Riley – Best 5; 5-Star Hotel, Exceptional Experience – Best 5; F&B Personality, Champion of Innovation: Mr. Conor Hadlington – Best 5; and King of Kitchens, Ambassador of Cuisine: Executive Chef Darrell O’Neill – Best 10. The Hotel also won big in the Fabulous Food 1Malaysia International Golden Chef Cooking Competition 2013, with Chef Lim Vee Kee scooping the Special Gold Medal with his winning dish of Pheonix Oriental Cod Fillet. His colleagues Chef Lim Swee Lee and Chef Foo Se Tong each won the Gold Medal with their creative dishes. In other news, a team of volunteers from the Hotel joined forces with local charity Kechara Soup Kitchen (KSK) to provide food to the city’s homeless. Wholesome vegetarian meals and freshly baked gingerbread and raisin cookies were prepared by the Hotel’s chefs.

January-February 2014

Members News

More Shared Services Hubs Likely In Malaysia Says Survey According to the latest annual Global Salary Survey 2014 from international recruiter Robert Walters, recruitment in Malaysia is likely to remain active with the entrance of more shared services hubs in the country. In particular, accounting and Ànance and IT professionals will see increased opportunities.

University Of Nottingham Launches Research Entity The University of Nottingham Malaysia Campus recently launched Nottingham MyResearch Sdn Bhd. This is the Àrst company, owned by a private university, to receive MIDA R&D status and enables Malaysian companies to invest in Research & Development in a very tax-efÀcient way. The launch was marked by a number of keynote talks by Professor Christine Ennew (left), CEO & Provost of Malaysia Campus and Pro-vice Chancellor of University of Nottingham, Ms Manjit Kaur - Senior Deputy Director, R&D Design Division, MIDA, and Professor Graham Kendall (above right), CEO of Nottingham MyResearch and Nottingham MyRIAD and Vice-Provost, Research & Knowledge Exchange, Malaysia Campus. Professor Kendall, said, “This is the Àrst time that a company owned by a private university has been granted MIDA R&D status. We are now looking forward to working with a wide range of companies, who wish to access university expertise. Companies are also able to beneÀt from the double taxation beneÀts that a MIDA company provides. The University on the other hand is able to work on an exciting variety of real world problems that can inform both our research and teaching.” Contact: Fion.Fah@nottingham.edu.my or Angelina.Yee@nottingham.edu.my

Head Of Treaty Appointed At HLAP Andrew Harris has been appointed as Head of Treaty at HLAP Limited. Prior to joining HLAP, Andrew was CEO of Guy Carpenter in Singapore, and more recently Director of Huntington Partners, Singapore, where he has expanded his areas of expertise to include Mergers & Acquisitions transactions in the Insurance sector across the region. Andrew brings with him a full 30 years of Reinsurance experience specialising in Treaty Reinsurance programme design and placement. He is also a regular speaker in the region on “Catastrophe Risk Management”. Andrew’s appointment will mainly be focused on improving HLAP’s business proÀle specialising in all classes of Treaty Reinsurance business with clients.

January-February 2014

Sally Raj, Country Manager of Robert Walters Malaysia, says: “With continuing government initiatives to improve the infrastructure, Malaysia has become an ideal business environment for an increasing number of multinationals. This is likely to drive competition between Àrms for the best talent. “In order to fulÀl the demand for quality Malaysian professionals, we can look towards the government’s efforts to bring overseas nationals home. This group of candidates with international exposure is expected to raise standards as well as impart technology and industry knowledge to the current workforce.” Figures from the survey suggest that on average, professionals who secure new positions will expect a whopping 20-30 percent salary increment in 2014. While those who remain in their current employment can anticipate a 5-7 percent pay increase in line with GDP. As Malaysia increases focus on becoming a global leader in Islamic banking, professionals with a proven track record in this area will Ànd new opportunities. In IT, the areas most likely to see impressive growth include big data, cloud services, mobility and social computing. Among FMCG companies, increased opportunities for sales and branding professionals are anticipated as companies seek strong commercial talent to launch new brands or categories in a highly-competitive market. In manufacturing, companies focusing on operational efÀciency will require people with skills and experience in continuous improvement, lean and project management. And in HR, hiring managers will seek candidates with experience in employer branding, compensation and beneÀts as well as talent management.

Members News

Othere

Weekend Wind Down With Best Western BBQ Sensation Hugo’s on 6 at the Best Western Dua Sentral is the place to head for a weekend wind down. Stylish décor, landscaped gardens and views over the city across an inÀnity pool – all conducive to a relaxing start to the weekend while enjoying a selection of fresh seafood, succulent meats and much more; all marinated and grilled to perfection. BBQ Sensation from 6.30pm to 10.00pm at RM70.00++ per person. Live entertainment from 9.30pm onwards. After supper, call in at Punch Bar & Lounge offering an extensive range of cocktails, specialty spirits, wines, international beers and non-alcoholic beverages in a modern, yet intimate and relaxing setting. Or adjourn to the Grand Trinidad Cigar Divan with its wide range of cigars from the best craftsmen. Tel: +603 2272 8888 www.bestwesternmalaysia.com

New Appointments At Kuala Lumpur Convention Centre Kuala Lumpur Convention Centre has announced a series of appointments in management and sales positions. Former Deputy General Manager Alan Pryor becomes General Manager Designate taking over the helm from Datuk Peter Brokenshire who retires at the end of March 2014 after 11 years with the Centre. Before joining the Centre in 2011, Pryor was Director of Operations at the Durban International Convention Centre (Durban ICC). Joining the Centre to take up the role of Deputy General Manager is Simon Lomas, with responsibility for day-to-day operations of the Centre including managing AV and technical services, catering, event co-ordination and exhibition services as well as international, regional and local promotional activities. Prior to joining the Centre, Lomas was four years with the Sydney Convention and Exhibition Centre, Australia’s largest business events venue, In Conventions & Conferences, Oh Kin Tat has been appointed as Sales Manager with responsibility for capturing the business tourism segment. Oh has over 17 years’ experience in the hospitality industry including more than 10 years in the business tourism division of a Àve-star hotel.

Top Left: Alan Pryor Top Right: Simon Lomas

And in Meetings & Events, Thien Tsen Kiat has been appointed as TenOnCall Sales Manager. TenOnCall provides a combined space of 10 Áexible meeting rooms for 15 to 150 guests. A graduate of Swinburne University of Technology, Australia, Thien has over 14 years’ experience in Corporate Sales from retail, telecommunications and more recently, food & beverage, industries.

Above Left: Oh Kin Tat Above Right: Thien Tsen Kiat

January-February 2014

Members News Leadership Changes At GIS New Heads for Secondary & Primary After seven years of leadership for both the Secondary and Primary Schools of Garden International School, Graham Wilson and Neil Smith will be leaving in July 2014 for pastures new. During their tenure, signiÀcant advances have been made in the educational model being provided at GIS, focusing on skills development, a critical element in life today. Taking over as the new Head of Secondary is Dr Nicola Mason who joined GIS in 2009 as the Head of Science. Dr Mason holds a PhD in Pathology (Medicine) from Imperial College University of London. She was appointed as Deputy Head - Curriculum in 2011. Colter Watt has been appointed as the new Head of Primary. Originally from the US, Colter has taught in London and led primary schools in Shanghai. He is currently the Head of Primary at the British School Warsaw in Poland. Both Dr Mason and Mr Watt will continue to build on the work of their predecessors in maintaining Garden International School as one of the leading British schools in Asia, developing new opportunities for every student.

The latest collection from British handbag designer Anya Hindmarch is literally inspired by space, planets, mineral formations and weightlessness. “I took my inspiration partly from a levitating magnetic toy that I found in Tokyo airport!” says the iconic designer.

Out Of This World Collection From Anya Hindmarch

Titled Out Of This World, the Spring/Summer 2014 range features deconstructed models to optimise functionality and weightlessness. The season sees signature styles reworked through evolved technologies, while also introducing new families to the fold in white, pale blue, clementine, mustard, grey and London blue with pops of orange, yellow and burgundy – the colour palette for SS14. The Albion comes in three forms (clutch, hobo and top handle) in white, light blue capra, natural or clementine python. The Featherweight Ebury and drawstring Vaughn feature gorgeous capra skins with vivid contrasting linings. And in a humorous touch, everyday items have been reworked into luxury pieces. The Crisp Packet - a solid metal and metallic piece molded to resemble a slightly crushed crisp wrapper while Imperial Clutches are crafted as matchboxes made of solid brass overlaid and printed. Stores at KLCC Suria & Pavilion Tel: +603 2382 0877

January-February 2014

Insights

“Malaysia’s economy remains strong and companies continue to grow, which is keeping the recruitment market active,” said Chris Mead, Regional Director of Hays in Malaysia & Singapore. “In the year ahead, vacancy activity is tipped to increase and employers will place precedence on candidates with experience gained in true MNCs. The contract market will continue to evolve, while we’ll see a general acceptance of the value of language skills and understanding people in their own language. “A big area of growth in 2014 will be crossover roles – as

10 Talent Trends For 2014 Working out which Big Data skills are actually needed and better understanding of social media as a channel are just two of the top talent trends that will shape Malaysia’s recruitment landscape in 2014, says Hays. Big Data Dilemma: The desire to process huge amounts of data in near real-time will drive innovation for how data can be harnessed to inform business and marketing opportunities. In 2014, there will be increased demand for IT Project Managers and Business Analysts who are involved in data manipulation projects. ‘Data Scientists’ will also be in increasing demand; the Harvard Business Review named the role ‘the sexiest job of the 21st century’ since these professionals can recognise patterns in data from multiple sources and then make observations and predictions, crucial to business success.

Mobile App Development: The increased usage of tablet-based applications and the associated user experience is driving demand for strong JavaScript Developers, particularly those with HTML5 and CSS3 skills for web development. Very few candidates combine both elements and are therefore able to build complete systems. Given insatiable customer demand for apps and an improved user experience, this skills shortage will become a more pressing concern in 2014.

Technology’s Integration: In 2014 technology will no longer sit in the domain of the CTO or CIO, but will instead integrate with both marketing and Ànance. This integration will see staff in these departments become jointly responsible for outcomes. It will create a need for people with multilevel hybrid knowledge. Meanwhile marketing analytics professionals use modelling and analytics practices to improve their marketing outcomes.

the technology, marketing and Ànance worlds integrate it will be key to Ànd people who can move across all sectors, with multilevel knowledge. Also the ability to harness the whole notion of social media will be important, to the point where it is not an add-on but is seamlessly incorporated into the main game,” said Chris.

Business analysis is another example where professionals have a functional background and in-depth knowledge of their industry and company, but also need to translate requirements in technical areas. As a result, marketing and Ànance professionals will need to enhance their technology skills to remain competitive.

Skills Shortage Catch-22: High-level skilled professionals are likely to be in short supply in 2014. Unemployment is very low and employers continue to struggle to attract highly skilled and experienced people. MNC Experience Valued: Employers in Malaysia will look for candidates with experience gained in true MNCs. They prefer such candidates over those with solely Malaysian business experience as they believe they possess better communication skills, are more commercially minded and can create a stronger success-based environment.

Evolution of Contract Jobs: The contract market in Malaysia will continue to grow in response to the recognition of the value of this method of engagement.

Resourcing digital & social strategies: As conÀdence returns to the jobs market, the candidate is again ‘king’ however most organisations are yet to fully embrace digital and social media effectively when it comes to recruitment. The expectation is that a presence and activity on social media such as posting a job is enough, but the commitment and resources that are really needed to build effective relationships is vastly underestimated by most, making it very difÀcult to

attract and engage with the right talent at the right time.”

Staff Retention: Employers are often blind to the cause of staff turnover and in 80 per cent of cases an employee chooses to leave due to the job itself, pay and conditions or work relationships – all issues employers can do something about. As employees become more conÀdent and start to explore their options in the jobs market, employers will really need to turn their focus back to retention.”

Aptitude for Learning: Globalisation, the shift towards a knowledge economy and the sheer pace of technological change are creating a need for employees who can learn and respond to both their employer’s and the market’s changing demands. With this in mind, candidates should not only meet the required technical and soft skills for a role, but also possess an aptitude and desire for learning.

Borderless: “In our global economy the world is becoming borderless and in order to achieve career development people are willing to change countries more readily. With this in mind speaking another language is a hugely important business skill, and it will only become more so in future. For those looking to move up, these skills and the cultural intelligence they often come with are equally indispensable for today’s global executives and the organisations they lead. The insight to understand people on their own terms and in their own language will be increasingly valued in the years ahead,” notes Chris.

January-February 2014

On The Social Scene

Getting Festive

he air was buzzing with chatter. The sound of young voices singing Christmas carols drifted across the foyer. Guests were were milling around catching up with contacts and avidly eyeing the desirable items in the Lucky Draw. And the Ballroom looked stunning. Over 500 guests had arrived to enjoy a very special occasion i in i the th BMCC BM MCC MCC Calendar: The BMCC Annual Corporate Christmas Luncheon!

With everyone Ànally settled at their appointed table, the festivities began with a carol performance by the children of the Alice Smith School. Then it was time for our Chairman Dato Larry Gan to take to the stage and share some interesting insights with the assembled crowd, in particular the latest news from a certain football team... ! Our venue partner, Mandarin Oriental KL, excelled on every level. Traditional Christmas fare was presented with a delicious contemporary twist and the service was impeccable.Then from out of the darkness came a voice, an incredible voice, followed by another voice and another - voices that almost lifted the roof off. What was happening? The guests were being treated to a sneak preview of Seussical Jr’s Musical by the incredibly talented EnÀniti Academy. Wow! The excitement continued further still with the Prize Draw and the lucky winners were genuinely thrilled with the fantastic prizes being handed out. Hampers Àlled with luxury items, exclusive timepieces, a weekend motoring experience and the icing on the cake: return Áights for two to London with Etihad Airways!

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January-February 2014

On The Social Scene

A number of guests took advantage of the festive spirit to attend the After Party later. The following week, the BMCC team visited our chosen charity homes, Rumah HOPE, Rumah Kebajikan Kanak-Kanak Home of Peace and Rumah Keluarga Kami to distribute the beautifully wrapped gifts brought by the guests. The smiles on the childrenâ&#x20AC;&#x2122;s faces were the best present ever! Finally, a huge thank to our Diamond Sponsors, Standard Chartered Bank, Amcorp Berhad and Gleneagles Kuala Lumpur and Platinum Sponsors DHL Malaysia, Talent Corp and Safeguards G4S for their great support in making this event possible.

January-February 2014

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On The Social Scene DIAMOND SPONSORS:

PLATINUM SPONSORS:

PRIZE SPONSORS:

SCHMIDT MARKETING

VENUE PARTNER:

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January-February 2014