EUMCCI Review January 2009

EUMCCI Review

Volume V No. 1 Jan 2009

The Business Digest of the European Union-Malaysia Chamber of Commerce and Industry

KDN PP 14083/07/2009(021955)

Enhancing Competitiveness - Discovering Opportunities

Power Generation - A Global Challenge

E umcci R eview January 2009

Volume V No.1

www.eumcci.com

Published by EU-Malaysia Chamber of Commerce & Industry (EUMCCI) Office Address Suite 3.03 Menara Atlan (Naluri) 161B Jalan Ampang, 50450 Kuala Lumpur, Malaysia Tel: +603-2162 6298 Fax: +603-2162 6198 E-mail: eumcci@eumcci.com Website: www.eumcci.com Editorial Committee Minna Saneri - Editor Marco Winter Paul Vincent Galea

Contents 4 5

MIDA Dialogue EUMCCI attended the EUROPEAN BUSINESS ORGANISATIONS (EBO) WORLDWIDE NETWORK 8th Annual EBO Meeting in Brussels

Submissions Articles and other materials of interest to the general membership are actively solicited and may be sent to the Chamber. All materials submitted for publication are subject to editorial review and revisions.

EUMCCI Board Chairman David Jones Deputy Chairman Jean-Francois Jadin Honourary Treasurer Dato’ Robert Teo Directors Austria Franz Schröder Belgium Jean-Francois Jadin Cyprus Wan Azuar Dato Wan Daud Czech Republic Milan Vagner France Michel Lozach Finland Jari Silventoinen Germany Alexander Stedtfeld Greece Andreas Vogiatzakis Hungary Robert Papp Ireland Michael Garvey Italy Alberto Ciaramicoli Luxembourg Wolfgang Heidkamp Malaysia Caesar Loong Malta Paul Vincent Galea The Netherlands Marco Winter Poland Czeslaw Klimczak Portugal Tan Sri Eugenio Campos Slovak Republic H.E. Milan Lajciak Spain Antonio Garcia Sweden Hans Bjornered United Kingdom Ramesh Menon

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Halal Logistics – An Opportunity for the Industry

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Subscription Service Subscriptions from non-members are also accepted at RM80.00 (€28.00 abroad) for 4 issues. Individual copies may be purchased at RM25.00 (€8.00 abroad).

CHAMBER@WORK Meeting with MITI Minister

Stefanie Braukmann Jocelyn Choo

Circulation 3,000 copies of the EUMCCI Review are distributed, on quarterly basis to EUMCCI members, all Embassies, industry associations and government officials with whom the Chamber has dealings as well as to European Chambers Worldwide.

EDITORIAL

New Office for EUMCCI

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EUROPE NEWS

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11 FEATURE EU MALAYSIA Trade Forum – Enhancing Competitiveness Discovering Opportunities Power Generation – A Global Challenge

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16 EVENTS Breakfast Talk With PEMUDAH EUMCCI VIP Luncheon with the EU Ambassador

21 MALAYSIA NEWS ABM: Increase in SME Loan Approvals Last Year Malaysia Urges Rich Nations to Keep Trade Open

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22 MEMBERS’ CORNER

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Chairman’s Foreword Ordinarily, we commence each new year with renewed optimism having made resolutions for change in our personal and business life. But what can we put forward this year? Each economic forecast we read burdens us with impending news of difficult times ahead; such news coming from the very same economists and journalists that barely this time last year and in some cases even six months ago were predicting continued growth! The forecasters of such gloom often being the perpetrators! Is this not another case proving Christakis’ theories of social networks?

Editorial

Undoubtedly the year holds much uncertainty and to a greater or lesser degree a period of change for us all. With the current credit squeeze we are hearing of international companies downsizing or should I say right-sizing to be more correct and making budget cutbacks. That somehow cash flow has become king and that managing your existing customer base is ever more vital.

So what does 2009 herald for Malaysia? Even with the likely changes in the political landscape, the government (supported by economists and various financial institutions) are still predicting growth in the region of a more modest 3.5%. Compared to that of many global economies and some of its near neighbours this has to be admired. Much of this is the result of decoupling from traditional markets with the intra-trade taking place within Asia and the continued growth of the sizeable Chinese and Indian economies. Further, the Malaysian economy did not overheat over past years, with property prices and many commodities realising more modest increases compared with many other countries in the region and beyond. Also traditionally corporate acquisitions and personal purchases were less leveraged by credit and the financial community largely untouched by the sub-prime and bond markets.

The government have also been prepared not only to encourage foreign direct investment but in addition invest in the local economy. Whilst Malaysia does not have the luxury of countries such as Indonesia where 75% of what it produces is for domestic consumption, nonetheless even with the global downturn experts forecast that there is sufficient momentum for continued growth in 2009. After this period however and should the global economy still be in the doldrums then this could be anyone’s guess.

It would appear that every trade and business journal carries editorials advising on what needs to be accomplished to survive the downturn. This is not without warrant. Larger organisations are curtailing investment plans or pulling out altogether within the regional economies. Malaysia could well be on their radar. Global FDI inflows are in a period of contraction so not only will this impact on investment but also in respect of staffing levels as well as work for local companies.

On the positive side, in 2008 Malaysia’s exports grew 16% and overall trade was up by more than 12% and in the latest WEF survey the country was placed 21st in it Global Competitiveness Report. In support the EU has for the past 8 years been consistently the highest investor. The government desires to attract capital intensive investment. It has been and continues to carry out reviews of both mechanisms and incentives in consultation with various trade bodies, including our chamber. Included in this activity have been reductions in base lending rates, removal of unnecessary red tape as well as special incentives for SME’s.

I would like to finish therefore on a cautious note of optimism, since Christakis also proved that happiness is infectious, and offer that with Malaysia’s better macroeconomic situation and its lesser dependency of many of the struggling global markets places it well in its ability to weather the storm. The question is for how long?

May I wish all our members a successful and happy new year.

David Jones Chairman EUMCCI

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Meeting with Tan Sri Dato’ Muhyiddin Hj. Mohd Yassin On the 5th of November, 2008, EUMCCI Chairman Mr. David Jones met with YB Tan Sri Dato’ Muhyiddin HJ. Mohd. Yassin (Mi­ nister of International Trade and Investment).

Also in attendance at the meeting was Mr. Wong Seng Foo (Senior Director, Economic and Trade Relations, MITI). It was an oppor­ tunity to cover a broad range of important trade and invest­ment issues as well as offer a formal intro­duction of EUMCCI and its vision.

Of specific interest by the Minister was the work being undertaken by the various Sec­ toral Committees within EUMCCI. Tan Sri was supportive of this work and sug­gested that regular meetings and dialogues should take place between these Commit­tees and MITI to resolve issues of mutual interest. It was agreed that this would include MITI ar­ ranging meetings with the respective go­ vernment ministries and departments where appropriate. Working level reviews would be carried out by the relevant MITI person­ nel leaving the annual MITI dialogue to cover major issues and those of strategic importance only. Follow up of these con­ cerns could then be made at such regular meetings.

It is pleasing to note that subsequent to this meeting that MITI have been supportive of initiatives taken by EUMCCI including the EU-Malaysia Trade Forum mentioned above as well as the inaugural MIDA-EUMCCI dialogue.

MIDA Dialogue EUMCCI and MIDA held a Dialogue on the

From left Dato’ Afifuddin Abdul Kadir (Deputy Director General, MIDA), Datuk Jalilah Baba (Director General., MIDA), David Jones (EUMCCI Chairman), Minna Saneri (EUMCCI General Manager)

Organisations in the main trading areas overseas. The event was spread over three days, and included discussions on trade and economy–related issues.

The Market Access Teams (MATs) created by the European Commission have been active for 1 year. MATs allow Member States, Businesses and the EC to come together in a structured way in a country.

EBOs Korea, Indonesia, the Philippines and Taiwan are actively working together with the MATs. In Malaysia the EC Delegation is working on the issue.

The Secretary General of ASEAN Dr Surin Pitsuwan highlighted to EBO Indonesia the need for EBOs in ASEAN Countries to create an EBO ASEAN Secretariat which would become the official counterpart of the ASEAN Secretariat. EBOs believe that such a move would be useful to the EC in the context of an EU-ASEAN FTA negotiation.

The Secretariat could be based in Jakarta where the ASEAN Secretariat is, or in Singapore. EBOs of the region should coordinate and start a discussion with their relevant EU Delegations, hopefully receiving some support from the Commission, to setup such a bureau.

MIDA will be supporting cross-border investments and also offers incentives for Malaysian companies in the hopes of encouraging them to invest overseas. MIDA also informed that high speed broadband using a fiber optics network will be launched in the 2nd quarter of 2009 in the Klang Valley, and in the 4th quarter nationwide.

MIDA hosted a Hi-Tea for all participants after the discussions. Present were all top personnel of MIDA from all sectors and the EUMCCI Chairman, General Manager and members of the Logistics and Executive Committees.

EUMCCI attended the EUROPEAN BUSINESS ORGANISATIONS (EBO) WORLDWIDE NETWORK 8th Annual EBO Meeting in Brussels November 3 - 5, 2008 For the 8th time, the European Commission met with representatives of EU Business

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Participants of the EBO Network in the annual meeting in Brussels

The EBOs presented their activities and the Network to some representatives of the European industry associations. Business Europe, ESF and ACEA agreed to work closer together with the EBOs by inviting them to meetings, business summits and conferences. This will give support to EBOs for market access issues faced in 3rd world countries.

The EBOs were also presented with the Europe Enterprise Network for which they can apply for affiliate membership. EUMCCI has already been accepted as an affiliate member and is thus part of a wide network involving European SMEs.

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During this meeting, Mr. Jones emphasized the development of trade ties with the EU, something which is of critical importance given the current economic downturn. He suggested that this should also cover lesser known member countries as their econo­ mies were growing. This can be done by extending planned targeted missions and supporting visiting exhibitions from these countries. It was agreed that EUMCCI and MITI should coordinate more on this regard.

The EU – Malaysia Trade Forum (held on the 17th of November, 2008) and the World Chamber Congress (to be held in Kuala Lumpur in June of 2009) are indicative of this continued collaboration.

2nd of December to discuss issues brought up by EUMCCI members as well as outline cooperation plans for the future. The wel­ come remarks were presented by Y.Bhg Datuk Jalilah Baba (Director General of MIDA). EUMCCI Chairman Mr. David Jones expressed the appreciation of EUMCCI for having been invited to this Dialogue and hopes for fruitful cooperation in the future.

Mr. Phang Ah Tong (Director, Foreign Invest­ ment Promotion, MIDA) gave a presentation on the latest developments in the manufac­ turing and services sector in Malaysia, fol­ lowed by a video presentation on High Speed Broadband. The issues brought up by EUMCCI members were discussed and several cooperation ideas were launched, the first being on the Logistics sector, where EUMCCI has a strong and active Com­ mittee.

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Halal Logistics – An Opportunity for the Industry The Halal industry is a large and fast growing industry, having moved from a niche market to a mainstream industry embraced by multina­tionals worldwide.

Halal encom­passes not only food, but increasingly pro­vides a choice for the consumer in phar­maceuticals (mainly vaccines and over-the-counter medicines) and cosmetics (dental care, skin care, hair care, medicinal creams and lotions).

A Halal Certification is similar to any other international quality certification, such as HACCP, GMP or GHP and certified by your local Halal Certification company. Con­ ventionally Halal focused on the ingredients of a product and method of production, but is now extended to cover the entire supply chain by incorporating the logistics component. A Global Halal Logistics Stan­ dard is being developed under the Inter­ national Halal Integrity Alliance Ltd. (www. ihialliance.org). In Malaysia it is also possible to certify the logistics facilities and services via the Halal Industry Development Corpo­ ration (www.hdcglobal.com).

Many international and local logistics service providers have seen the importance and profitability of this industry and have deve­ loped Halal Logistics services.

The rational It is extremely important that Halal products are segregated from non-Halal products, to avoid cross contamination and mistakes and to ensure that operations are consistent with the expectations of the consumer and other stakeholders.

The logistics operations should be organised in such away that the Halal Logistics Per­ formance is maximised. This is only possible through the identification of so-called Halal Control Points and measuring these through performance indicators. The Halal Logistics Standard or Guideline provides you with these Halal Control Points.

The concept of Halal Logistics is incomplete without coupling it with best practice logis­ tics, that is: traceability is in place, ensures an unbroken (cold) chain, protection of

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January

gation and communication through the logistics processes (by labelling & coding).

Transportation is complex as there are different modes of transport. For Halal certified bulk products, there is no mixing allowed with non-Halal products. For unitised shipments, Halal goods cannot be mixed with severe najis in one container i.e. common transportation storage. If con­ tainerisation is done at a smaller scale it is possible to simplify segregation throughout the journey. Similar to Halal warehousing, there are procedures for tracking & tracing, cleaning, packaging & labelling and freight documentation. shelf life by short supply chain lead times and high hygiene & sanitation standard.

Implications for the Manufacturer of Halal products Halal compliance within the supply chain has two components. The first component is to ensure that the supply chain is Halal compliant by design. As the manufacturer will often outsource their logistics, there is a list of Global Halal Logistics Guidelines which logistics service providers can adhere to. Obviously, this means that for the manufacturer, finding a logistics service provider that is already Halal certified makes things easier.

The second component is for the manu­ facturer to audit the supply chain from a Halal point of view. This is extremely important as the supply chain has a big impact on Halal status and thus should be given similar attention by the manufacturer.

Auditing can be undertaken by an internal Halal compliance officer or outsourced to a Halal Auditing company. However, this Halal Auditing company cannot be the same company as the Halal Certification company.

Implications for the logistics process Halal has specific implications for the warehousing and transportation of Halal products. Halal warehousing requires a dedicated storage zone for Halal products and requires segregation in handling throughout the warehouse processes (such as inbound handling, cross dock operations, storage, value added logistics and outbound handling). It also puts specific procedures in place for tracking & tracing, cleaning, packaging & labelling and freight docu­ mentation. One of the most important parts of Halal warehousing is the physical segre­

EUMCCI Review

Next to Halal Warehousing and Trans­ portation, the standard also covers terminals (such as sea ports, airport, rail terminals, etc.). Further information is available at the Halal Industry Development Corporation.

International Developments The Halal SuperHighway is a private sector initiative championed by MIHAP Holdings Sdn Bhd, Malaysia which has already begun its first phase. The plan is to develop critical logistics building blocks for the facilitation of Halal manufacturing and trade, which aims to become the de factor standard in Global Halal Trade. It will provide Halal Integrity throughout the supply chain (made possible through process compliance, colla­ boration with global gateways, an advanced visibility platform and innovative logistics solutions). It will also offer an e market place for Halal food/pharmaceuticals/cos­ metic ingredients, raw materials, semifinished products and end products. The aim is to consolidate global Halal trade and standards into one working platform which is driven by market needs and acceptance.

Research shows that goods spend a lot of time in storage and relative little time in movements and transformations. This makes storage in compliance very serious.

A Halal Storage portal (www.halalstorage. com) has been launched recently to facilitate the search process for Halal storage space worldwide. It is positioned as the market­ place for logistics service providers that offer Halal warehouse facilities as well as industry players that are looking for Halal storage space in certain countries and locations.

Over the past month an enormous increase of Logistics Service Providers can be ob­

served in both Asia and Europe that provide Halal Logistics Services. Leading countries today on Halal Logistics are Malaysia, the Netherlands, Bosnia Hercegovina and Thailand. It is to be expected that the UAE, Singapore, Australia, South America and the USA will catch-up very soon and claim an important role in this field.

As the Halal industry has seen an enormous growth over the past years, economic zones worldwide are recognising the importance of this fast growing industry. Malaysia for

example is developing an International Halal Park acting as a Global Halal Hub to facilitate imports, manufacturing and exports from a Halal economic zone. These zones not only provide world class Halal logistics facilitation, but comply with the highest environmental standards and provide a sustainable pro­ duction in a Halal cluster supported by edu­ cation, research, trading and financial services.

provides many opportunities for both the manufacturing industry as well as the logistics industry in establishing Business Excellence through adopting Halal Logistics practices.

As a Global Halal Logistics Standard will come into place by next year, it provides the industry with an important framework to become one of the fastest growing industries.

The Future of Halal Logistics Halal Logistics has taken off globally and

Marco Tieman (CEO, LBB Teams (M) Sdn Bhd) member of EUMCCI Logistic committee.

EUMCCI recently moved to a new location.

The new office address is: EU-Malaysia Chamber of Commerce and Industry (EUMCCI) Suite 3.03, Menara Atlan (Naluri) 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel: +603 2162 6298 Fax: +603 2162 6298 The move was done by Mr. John Preston (Country Manager, Unigroup Worldwide UTS) and his team. Mr. Preston was kind enough to share some office moving tips with us to help make the transition a little easier.

Mr. Preston says that moving an office can be more stressful than moving your home and family. When relocating your office you may not have control over many of the aspects of the moving. Also, most people are completely unfamiliar with how to prepare for an office move. As we are all aware, unfamiliarity can cause a lot of headache and stress. To make the process easier you should develop a moving plan.

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New Office for EUMCCI This was written to assist you in putting your own office moving plan and check list together.

PREPERATION • Plan everything in advance and be cost efficient.

One of the ways to obtain this goal is to be time efficient. Less time spent moving means improved cost efficiency.

• Familiarize yourself with the new location Know exactly how large (take measurements) the new office is.

• Create a floor plan COMMUNICATION!!

• Communication is the key when it comes to an office move.

• Movers need to be told exactly where each piece of furniture needs to be placed.

• Label all equipment and furniture in an easily visible spot

•

•

• Managers: Ensure that each employee has their own office moving plan and that they understand and follow the instructions.

• Employees: Pack and name mark your own items and boxes. Follow the instructions of the office moving plan.

Unigroup Worldwide UTS movers packing office items into proper boxes before being transported to the new office

MOVING • Any items inside book­cases, shelves, desks, wall units or cupboards should be packed securely in boxes with clear markings of contents and where they belong.

• Movers cannot be responsible for personal possessions, those should be moved personally.

• Employees will be provided with cartons to pack the

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•

•

contents of their desk or work station.

It’s a good time to clear unnecessary items. It’s also a good idea to pack paper clips, pencils and all over loose materials in envelopes and then pack them in the boxes. Protect all glass with paper or bubble wrap.

All files should be locked prior to moving. If security regulations require escorts, advise your moving consultant and they will make arrangements.

The contents of all supply or storage cabinets should be labelled and packed into boxes. Cabinet doors should be locked or tied.

If items are not to be moved, or if equipment and furniture are to be discarded, be sure to tag them with “Do Not Move” labels.

Throw away as much rubbish as possible before the actual moving day. Advise building management that you will have additional rubbish so that they can make arrangements for its col­ lection.

Examine the building before hand with your mover and note all elevators. If there are no elevators or if your furniture cannot fit into the elevators, be sure to inform the moving company so they can come prepared. The moving com­ pany will discuss any oversized items with you in relation to the dismantling and assembly at their new location.

Before moving any computers make sure that you have your own IT person controlling the situation. Many com­

January 7

puters and servers need to be handled in certain ways. If you are renting your equipment, notify the rental company before the move as your contract may stipulate that they have to move them or prepare them for removal. Ensure that any loose parts are packed with them as they can easily be lost.

• Remove all items from any coffee vending machines, etc., and empty water from water dispensers.

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Systematic Office Equipment’s staff assembling the storage system to the new EUMCCI office

The information that is important for each person is:

• • • • •

Date of move.

Exact address Telephone number, Public transportation availability.

Parking facilities (where, how expensive).

• Lunch and dinner facilities nearby.

In order to make the move smoother, assign one person from each department to coordinate preparations for moving of that particular section.

Assign a person to handle the distribution of keys or security cards to authorized personnel.

CHECKLIST FOR MOVING YOUR OFFICE Initial Preparation • Set a moving date.

• Make sure employees are aware that they are responsible for packing their own office.

• If renovating is required, ask for staff input on their work area needs.

• Ensure you have sufficient electrical, telephone, and cable capabilities for current and future needs.

Notification of Move • Advise current clients of upcoming move several weeks before the move.

Give clients directions or map to new location. Update map and directions on firm web site, if applicable.

• Get a red stamp that says, “Note new address.” Use this next to letterhead on all correspondence mailed for the first couple of months after the move.

• Incorporate a message regarding the move when answering phone calls.

Change the recorded phone message for the office main number to include a notification of the new location.

Order and be prepared to mail formal notices of the move as soon as the move is complete.

• Contact your telephone company. Do this as soon as you know you are moving because you want to be sure your new phones are installed by the time you move. Also, check the deadline for advertising in the next year’s phone book. If you must change your phone number, arrange for a referral message to be placed on your prior phone number. Check if automatic forwarding is available. Call your old phone number to insure that the requested message or message and automatic call forward service is in place.

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• Have a set of spare keys available.

• Make sure that your Internet connection

is ready to go and that the phones and fax machines are working.

• Ensure that the electricity, toilets water and Air cons are connected and working in the new premises.

• Notify post office and arrange for forwarding of mail.

• Notify insurance company of new address and inquire if any riders are needed for move.

Printing Needs • Notify your bank and arrange for printing of new checks.

• Arrange for new business cards, letterheads, envelopes, etc to be printed.

• Arrange for new signs on door, building, etc.

Website • Notify your website designer that your office will be moving as soon as possible to allow changes to be made to the website. Notify any affinity group, membership organization, or marketing portal websites that list your office address of your new address and phone number.

Preparing for Moving Furniture and Equipment Contact the Telephone Company about installing new lines for phone, fax, internet, etc. Arrange for this to be done well in advance of your move.

• Arrange with the IT consultant to set up equipment/network at new location.

Don’t plan computer upgrades to take place at time of the move.

• Arrange with the Photocopier Company

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to have the copier set up at the new location.

• Decide on the layout of furniture and equipment in new office. Measure spaces to insure current furniture and equipment will fit. Be sure there is adequate space around equipment.

The Actual Move • Each person should pack her/his office.

• Label each box and label each drawer with a corresponding number.

Here’s a simple checklist to make sure nothing gets left behind or overlooked: • Desk empty?

• Cabinets cleared?

• File cabinets emptied?

• File drawers locked?

• Wall items taken down?

• Computers and other machines disconnected?

• “Do Not Move” tags placed?

• Liquids drained from equipment?

• Desk and chairs labelled?

EUMCCI also talked with Mr. Yap Kan Min (Director, Systematic Office Equipment Sdn Bhd) in order to enlist his aid in setting up shelving and cabinet units for the new place. Although Mr. Yap’s company, Systematic Office Equipment specializes in office furniture and equipment, they have expanded to include the manufacturing of office furniture and office renovation work.

Spend a bit of time to plan the layout and types of storage shelves and cabinets for the new location as it helps in the overall organization of the office and makes the move easier.

EU Budget 2009: gearing up for economic recovery

Speaking after the European Parliament vote on the 2009 Budget in Strasbourg, Dalia Grybauskait e, ˙ EU Commissioner for Financial Programming and Budget said, “The 2009 budget will focus funding on innovation, employment and regional deve­ lopment across the EU-27. These are the precise areas that can kick start Europe into recovery mode and pull it out of today’s difficult economic situation”. She added “We need to respond to the current crisis but also to prepare for life afterwards, ensuring we spend on the right things, at the right time in the right way”.

The adopted 2009 budget will amount to almost €134 billion (€133.8bn) in commit­ ment appropriations [1], a slight increase of 2.5% on 2008. This corresponds to 1.03% of the EU Gross National Income (GNI).

Payment appropriations[2] will reach €116.1 billion, a slight increase of 0.3% on 2008, representing 0.89% of EU-27 GNI. Getting Europe on the road to economic recovery: In 2009, almost €12 billion of the EU budget will go on projects to boost Europe’s compe­ titiveness, 6.2% more than in 2008. The €12 billion includes funds for research which will rise by 11% for the second year running. A record investment of €0.5 billion will also be set aside for the EU’s Competi­ tiveness and Innovation programme (CIP) to finance ground-breaking sustainable techno­ logies - an increase of 22% on 2008. More than €1 billion will go to programmes to

Faster funding for Europe’s regions: Funding for cohesion will continue to grow in 2009 with nearly €48.5 billion for Europe’s regions (a 2.5% rise on 2008). This will also be strengthened by the recent agreement to accelerate Structural Funds financing in 2009, providing Member States with cash fast to support people hit by the crisis and increase financing for small and medium sized enterprises (SMEs). Efforts to integrate new Member States into common EU policies are also bearing fruit with 50% of all Cohesion and Structural Funds now going to the EU-12.

Responding to global challenges, and Europe’s security and justice The recent surge in food prices has hit the most vulnerable in the world worst and the EU is stepping up its support by providing a Food Facility package of €1 billion over 2008, 2009, 2010. The largest share - up to €568 million - will come from the 2009 EU budget. Maintaining its role as a global player, the EU will also channel over €8 billion into external policies –a 7% rise on 2008. Support for the peace process in the Middle East, in Afghanistan and ensuring stability in Kosovo will be key investments in 2009 – €361m for Palestine and €231m for Afghanistan and €261m for projects in Kosovo.

Terrorism, crime as well as immigration are still big concerns for Europeans and support for these specific areas will see one of the biggest increases in spending in 2009 at €864 million - up 18% from 2008.

Environment and rural development – moving to a low-carbon economy: Spending on agriculture will remain stable in 2009, absorbing more than €40 billion. The shift within this policy area towards development in rural areas also means more spending on the environment the fight against climate change. Over 40% of rural development funding (€13.6 billion) will be for environmental goals. On top of that, the LIFE+ environmental protection programme will grow by 19%, reaching €317 million.

The 22% increase in the EU’s innovation programme will also help EU efforts to move to a low-carbon economy by financing sus­ tainable technologies.

[1] Commitment

appropriations

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cover

legal

commitments made to spend funds over one or more years. These commitments are then honoured by payment appropriations each year.

Unless otherwise indicated, all amounts mentioned are in commitment appropriations.

[2] Payment appropriations cover payments made to honour the legal commitments entered into in the current financial year and/or earlier financial years.

Source: http://europa.eu/rapid/pressReleasesAction.do?r eference=IP/08/2008&format=HTML&aged=0&lan guage=EN&guiLanguage=en

Statement by EC President Barroso On the 11th to 12th of December, the Euro­ pean Council had a summit in Brussels. At that summit, Council President José Manuel Barroso issued this statement about the energy and climate change package.

“Today’s political agreement on climate change and energy is of momentous importance. The leaders of Europe’s 27 Member States have agreed to work together to transform Europe into a lowcarbon economy. To make a real difference to energy security in Europe. And to make Europe the pioneer in developing tomorrow’s technologies.

This is the fruit of two years of hard work by the Commission, the European Parliament and the Council. It has shown the European Union at its best: able to take courageous, long term decisions; to debate problems and find compromises; and to end up with an agreement with teeth – not just a political commitment, but a legally binding text with a guarantee to deliver.

Over the next few days, the EU institutions will finalise this deal. A positive vote in the European Parliament next week would set the seal on a remarkable story. As President of the Commission, I am proud that the proposals we made less than a year ago are securing such a strong endorsement.

At the heart of this success has been the EU’s determination to stay focused on the overriding goal: the 20-20-20 targets for 2020. A 20% reduction in greenhouse gas emissions, a 20% share for renewable energy, and a 20% boost to energy efficiency. The commitment to reach these targets remains 100% intact. From 2013, the amount of emissions allowed by industry will be cut, year by year. Industry which fails to respond will have to pay more. Europe

January 9

Europe News

In 2009, the biggest share of the EU budget – 45% or €60 billion - will go to research, innovation, employment and regional deve­ lopment programmes, combining short and longer-term measures to help Europe res­ pond to the current economic crisis as quickly and effectively as possible. An 11% increase in research and a 22% increase in the EU’s innovation programme will help boost competitiveness in difficult times as well as EU efforts to move to a low-carbon economy. Funds for agriculture remain stable, taking over 40% of EU cash, while spending on the environment and rural development will rise by 2.9%. Europe’s role in the world will also see spending grow in 2009, including €0.6 billion for the €1 billion food facility to help developing countries respond to rising food prices.

improve Europeans’ skills, mainly through the Lifelong Learning Programme - a 6.5% rise on 2008.

Europe News

has already shown that the market can be used to create the incentive for change – now the year by year cuts will use this system to drive emissions down. All in a way carefully designed to spread the costs across the EU in the fairest way possible, and to drive jobs and investment towards tomorrow’s technologies.

This agreement is the most powerful demonstration possible that Europe is prepared to show the way in the global effort to tackle climate change. Europe is the first key player to make a commitment to a 20% reduction by 2020; and the first to accept legally binding rules to make this happen.

We are looking forward to working with the new US Administration to seize the moment, and to build a transatlantic and indeed global carbon market to act as the motor of a concerted international push to combat climate change. We are sending the signal to developing countries that our system is specifically designed to mobilize extra resources to help them make their own contribution. And Europe now has a clear offer on the table that, with an agree­ ment at the UN negotiations in Copenhagen next year, we will go even further and commit to a 30% cut.

There remains a lot of work to be done before we can say that the world is giving climate change the attention it needs. But this is the most concrete and the most substantial step taken against climate change since the Kyoto Agreement.”

Business delegation comprised of 11 companies from various industries from the State of Saarland, Germany

succeeded in meeting a number of potential Malaysian business partners, coming to a total of 47 individual meetings among themselves, in a short span of two days from 3-4 November. The meetings had been pre-arranged by the MalaysianGerman Chamber of Commerce and Industry with Malaysian companies selected according to the search requirements of the German delegates.

Head of the Delegation Mr. Kiefaber together with Mr. Gerd Martin, CEO of Saarland Healthcare Cluster, further attended a meeting with Tan Sri Datuk Dr. Mohd Ismail Bin Merican, Director General of the Ministry of Health, Malaysia.

A Maltese Gerontology and Geriatric Expert Visits Malaysia

A business delegation from the State of Saarland, Germany, visited Malaysia from 1-4 November 2008 to explore business opportunities in Malaysia. The delegation which comprised of 11 companies from various industries was led by Joachim Kiefaber, Head of Department for International Economic Relations, Saarland Ministry of Economy and Science.

The collaboration between the University of Malta and University Putra Malaysia on the topics of Gerontology and Geriatrics was originally initiated approximately three years ago by the Honorary Consul for Malta in Malaysia. This collaboration was further extended and included the International Institute on Ageing, United Nations-Malta (INIA). About a year ago the first training programme in Malaysia on Social, Health and Economic Issues of Ageing was inaugu­ rated by the High Commissioner for Malta in Malaysia, Professor John Rizzo Naudi, who is also the Chancellor of the University of Malta and was supported by the Director of INIA, Professor Dr. Joseph Troisi also of the University of Malta.

With the aim of gaining first-hand market information and on the look-out for potential business partners, joint-venture partners, agents and distributors, the representatives of the German companies

This year the collaboration has been rein­ forced by another visit during the 8th and 16th June 2008, by Professor Dr. Joseph Troisi, a world renowned expert on the subjects from the University of Malta. The

Saarland Delegation Explores Business Opportunities in Malaysia

10 January

EUMCCI Review

purpose of the Professor Troisi’s visit was to organise the second training programme in Malaysia on Social, Health and Economic Issues of Ageing in collaboration with the Institute of Geron­ tology, University Putra Malay­ sia. The training programme also included other experts in the field namely:- Professor Aizan, Professor Harrison G. Bloom from Mount Sinai School of Medicine, New York, USA and Professor Dr. Raja­ gopal Dhar Chakraborti, Department of South & Southeast Asian Studies, Calcutta University, India. Fifteen senior participants from diffe­rent Government and University depart­ments participated in this training pro­gramme and following the success of this programme, the Scientific Coordinating Committee agreed to organise the third training programme in Malaysia during the13th-20th August 2009.

While in Malaysia Professor Troisi, as the Director of the International Institute on Ageing, United Nations-Malta (INIA) and Professor Tengku Aizan Hamid, Director of the Institute of Gerontology, University Putra Malaysia, were invited by the Institute Social Malaysia for an ISM-UN International Experts’ Discourse on Ageing. Professor Aizan made a presentation entitled Over­ view: Demography & Policy Responses to Population Ageing in Malaysia and Professor Troisi’s presentation was entitled Women, Ageing and Development: The Changing Role of the Family.

Furthermore Professor Troisi was invited by the Steering Committee of the UNFPAGovernment of Malaysia, which is a jointly funded project on ‘Lifelong Learning for Older Malaysians’ to deliver a presentation entitled Lifelong Learning: The University of the Third Age and also chaired the ensuing discussion.

As a result of the collaboration between Malta and Malaysia and in particular the efforts of the Institute of Gerontology at UPM, the Malaysian Government is begin­ ning to take the issue of aging in the Malay­ sian population very seriously. To this end it is expected that the Institute of Gerontology at UPM will set up a ‘University of the Third Age’ in the near future in association with the International Institute on Ageing, United Nations-Malta (INIA).

E UROPE A ID CO-OPERATION OFFICE

Trade Forum

EU MALAYSIA Trade Forum

Enhancing Competitiveness - Discovering Opportunities On the 19th of November at the Nusantara Ballroom in Hotel Imperial, Kuala Lumpur, EUMCCI held its first EU – Malaysia Trade Forum launching its first “Trade Issues & Recommenda­ tions” book. It was an occa­sion for Malaysian and EU business leaders, top government officials, corporate finan­ciers, ambassadors, investment bankers and CEOs to gather and gain fresh insights into investment, trade opportunities and chal­lenges in the EU and Malaysia.

With an opening address by Mr. David Jones (Chairman, EUMCCI), the trade forum fea­ tured talks by H.E. Vincent Piket (Head of the European Commission Delegation to Malaysia), Dr. Wong Lai Sum (Deputy CEO, Matrade), Mr. Simon Whitelaw (Managing Director, CMA CGM & ANL Malaysia Sdn Bhd), Mr. Jean Francois Jadin (Deputy Chairman, EUMCCI), and Miss Wong Jin Nee (Partner, Wong Jin Nee & Teo Intellectual Property & Technology Legal Practice). There was also a panel discussion moderated by Mr. David Jones, on “How to enhance the competiveness of Malaysia and make it the preferred destination for European investors”.

The forum discussed effective business strategies especially related to logistics,

education and intellectual property rights.

During his opening address, Mr. David Jones mentioned that while “Malaysia is ranked in the top 3 countries for shared services and outsourcing, and placed 14th in respect to FDI attractiveness”, more needs to be done to sustain the FDI growth wit­nessed in 2007. He said that the publication and launch of the EUMCCI Trade Issues and Recommendations book was another step in helping to provide existing and potential investors a more conductive environment for doing business.

One obvious factor that will no doubt affect FDI and trade is the ongoing global financial crisis and resulting economic slowdown.

H.E. Vincent Piket, who officiated the event, touched on these issues and called for increased coordinated action between Asia, Europe, the US and other international partners to deal with the unprecedented crisis.

H.E. Mr. Piket said, “In the EU, action on many levels has been taken – by national governments, the European Central Bank and the European Commission – to create a European package for financial recovery and to restore confidence in the financial markets. The package has succeeded in restoring liquidity in the banks, helped interbank lending to resume, and created stability by protecting savers’ deposits. We

EUMCCI Review

now need to make sure that these initial results are sustained.”

H.E. Mr. Piket went on to state that all countries and regions need to act. To support the EU recovery plan, the European Investment Bank put up a loan package of €30 billion. This should enable them to maintain the agenda for tackling climate change: boosting the energy efficiency agenda and green technology will also provide opportunities from SMEs. The EU approach to handling this economic crisis also involves trade as they need trade to keep their economies growing and to help them rebound. According to H.E. Mr. Piket, trade is something which is just as important for Malaysia, a country whose total trade represents 250% of its GDP. EU – Malaysia trade is an important topic, especially when one considers the fact that Malaysia is one of the major trading partners of the EU with a total value of €16.5 billion.

The EU is currently negotiating the Free Trade Agreement (FTA) with ASEAN and is already providing preferential entry for certain Malaysian products under its Gene­ ralised Scheme of Preferences (GSP) scheme.

This means that 17% of Malaysian products enter the EU with preferential import tariff duties. Furthermore, under the GSP scheme, 10% of Malaysia’s total exports can, (subject to compliance with certain rules) enter the

January 11

Trade Forum

EU with a 0% tariff duty. Under the Most Favored Nation (MFN) clause, 68% of Malaysia’s exports to the EU can enter with a 0% duty. All told, under both GSP and MFN, up to 78% of Malaysia’s exports can, subject to compliance with certain rules, enter the EU with a 0% tariff duty. Given such favorable conditions, Malaysia should continue to expand its trade with the EU. This is something which would keep in line with the agreement from the recent G-20 meeting held in Washington D.C., where world leaders agreed that countries would not erect new barriers to trade or investment.

Dr. Wong also encouraged expanding trade between the EU and Malaysia. She said that although the initial reaction would be to lock each other out, we should in fact be “expanding linkages to sustain and create demand, while reducing the cost of doing business… Trade between Malaysia and the EU for the next year or so will undoubtedly be impacted by the uncertainties of the

mittee gave a presentation on oppor­ tunities avai­lable at Port Klang. The Logistics Committee is working on issues related to shipping, freight forwarding and relocation as the sector is crucial to Malaysia’s future competitiveness. On the Education Committee side of things Mr. Jadin (CEO, Imperial Consulting Group), Head of the Education Commit­ tee for EUMCCI mentioned that the Committee was working with Malaysian universities to achieve a higher level of quality of new graduates. Meanwhile the EUMCCI IPR Committee headed by Miss Wong Jin Nee has been working on a training program and workshop on enforcement of border control. It is a good initiative to connect the business with the government (Customs) to curb the entry of counterfeit goods into the country.

According to Miss Wong some of the major challenges facing IPR in Malaysia are: 1.

Impractical and one­rous requirements un­ der IP laws. 2. Inadequate provisions in the

Other issues discussed during the Trade Forum included how EUMCCI committees were working to help make improvements across the logistics, education and IPR sectors. Mr. Simon Whitelaw (Managing Director, CMA CGM & ANL Malaysia), a member of the EUMCCI Logistics Com­

12 January

As part of the activities undertaken by EUMCCI’s IPR Committee in 2008, a meeting was conducted with the Royal Malaysian Customs to discuss collaborative efforts and capacity building programs. This was for Customs to address issues relating to the importation of counterfeit products into Malaysia. Miss Wong mentioned that the Customs Officers here are in the perfect position to play key and vital roles in combating counterfeiting.

The discussions then shifted focus to the topic for the Panel, “How to enhance the competiveness of Malaysia and make it the preferred destination for European inves­ tors”. The panel was composed of expe­ rienced persons in EU-Malaysia Trade: Mr. Paul Ellis, Managing Director of Schaefer Kalk Malaysia Sdn Bhd, Tan Sri Lin See-Yan, Advisor to EPU, MOHE, MOSTI, Mr Wong Seng Foo, Senior Director, Eco­nomic and Trade Relations. The panel was mode­rated

by Mr David Jones, EUMCCI chairman. At

Participants to the EU-Malaysian Trade Forum listening to the panel discussion

global scenario. While we will share mo­ ments of suppressed demand and fluctua­ ting exchange rates, the way forward for all of us is to look together for the special niches and strategies to ride out the challenges.”

Panelists: From l. to r. Paul R Ellis (Managing Director, Schaefer Kalk Malaysia Sdn Bhd), David Jones (Chairman, EUMCCI), Tan Sri Dato’ Dr. Lin See-Yan (Advisor EPU, MOHE, MOSTI), Wong Seng Foo (Senior Director, Economic and Trade Relations, MITI)

Cus­toms Act 1967 to tackle coun­ ter­feiting activities. 3. The tradi­ tional perception of res­pective roles and responsibilities of agen­ cies. IPR issues are of significance not only in doing business locally, but also on the international level as it is an important component of Malaysia’s current negotiations with the US to finalize the FTA. The same can be said of the regions FTA negotiations with the EU, launched with ASEAN.

EUMCCI Review

David Jones presenting the EUMCCI Trade Issues and Recommendations Book to Dr Wong and H.E. Vincent Piket

pects amidst a stable, business-friendly po­ licy environment. The Trade Issues pub­ lication high­lighted 8 key measures to attract more FDI into Malaysia.

1. Ensure policy consistency and provide a clear direction in the development of policies.

2. Develop IPR protection and enforcement.

3. Review equity conditions.

4. Develop a competitive taxation and tax incentive climate.

5. Develop human capital.

6. Improve the security level.

7. Liberlisation of services.

8. Enhance transparency and minimize the level of corruption.

Ensuring Policy Consistency and Providing a Clear Direction in the Development of Policies Part of formulating the strategic and invest­ ment plans for companies involves an awareness of any likely upcoming policy changes. Abrupt changes in policy and regu­ lation results in a disruption and subsequent financial loss for companies. New policies or policy changes should always be com­ municated by the govern­ment.

Developing IPR Protection and Enforcement Ensuring IPR protection and enforcement is vital to the confidence of foreign investors.

As such, maintaining a constant review of the existing legislative framework to address

Reviewing the Equity Conditions Companies want to invest in a country where they are able to have a 100% share of their business with minimum government intervention. The current equity regulation is a hindrance for foreign companies looking to invest and settle in Malaysia. It is the various guidelines which restrict foreign participation and at the same time require minimum participation by Bumiputras in certain sectors and industries which cause this roadblock.

Develop a Competitive Taxation and Tax Incentive Climate Corporate tax in Malaysia is at 20% for companies with a paid up capital of RM 2,5 million and below, and 27% for a paid up capital of above RM 2,5 million. When compared to corporate tax in Singapore which is at 18%, it is understandable why foreign companies look elsewhere. It is important to develop a more competitive tax system in order to stay competitive with neighbouring countries in SEA. While it is understandable that the government can­ not lower taxes immediately, the current 5 year plan in which the government explains how the tax rate will gradually be lowered to 25% is to be praised.

Develop Human Capital Human capital is of vital importance to economic growth and sustainability. In Malaysia, improvements in human capital have not kept pace with the increase in the

EUMCCI Review

number of insti­tutions and stu­ dents. Develop­ment of human capital in Malay­sia requires an increase in the number of technical colleges and univer­ sities, run in collabora­tion with key industry players, to make the course more prac­tical and market oriented.

Improving The Security Level In Malaysia The security and stability of a country is an important factor when a company is deciding on where to invest or establish an office. This is important not just for the business itself, but for the employees quality of life and security. Rising crime rates affect investor confi­dence in the country.

Liberalisation of the Services Sector The service sector in Malaysia has become the most important provider of output and employment. Locally, the services sector constitutes about 56% of the national economy and remains highly protected.

Meanwhile, globilisation of markets and rapid advances in information and commu­ nication technologies increase pressure for the liberlisation of the services sector. It will provide a more genuine demand and supply mechanism which will influence the prices positively.

Enhance Transparency and Minimise the Level of Corruption To improve the business climate in Malaysia the level of transparency in procedures, policies, and business dealings needs to be enhanced. Transparency International con­ ducted a survey which reported that Malay­ sia’s score in the Corruption Perceptions Index (CPI) did not improve in 2008. The country’s ranking therefore fell to 47 out of 180 countries in 2008 from 43 out of 179 countries in 2007. Malaysia was commended for the establishment of Pemudah, a Special Task Force to Facilitate Business. Also com­ mended was the Prime Minister’s initiative to reform the judiciary and Anti – Corruption Agency, all of which would go towards improving transparency and aiding in bringing down the level of corruption.

Improvements on of these key measures will aid Malaysia in enhancing it’s competi­ tiveness as an attractive destination for foreign investors. The Forum ended with a press briefing and a Luncheon for all the participants.

January 13

Trade Forum

the end of the panel discus­sion, Mr. David Jones presented Dr. Wong and H.E. Vincent Piket the “EUMCCI Trade Issues & Re­ commendations 2008” book which comprises of issues raised

by EUMCCI on behalf of its members to the Malaysian Go­ vernment. It also includes work done by the EUMCCI Industry Com­mittees. Both the Trade Fo­ rum and Trade Issues publications were results of an EU – funded project under the Asia Invest programme “EBO Capacity Buil­ ding in Market Informa­tion dis­ Participants enjoying their lunch at the Villa Danieli restraurant semina­tion” in co­operation with European Cham­bers in Taiwan, Korea and shortcomings and inadequacies allow for Vietnam and EUKICA in Europe. continued improvement. Vigorous enforce­ ment, successful prosecution and deterrent While Malaysia is facing strong competition sentences imposed in IPR violators all help among emerging economies in the region to create a stable and secure environment for Foreign Direct Investment (FDI), it has for businesses. strong economic fundamen­tals and pros­

Power Generation Power Generation

A Global Challenge

There is an almost insatiable thirst for energy worldwide given our ever increasing reliance on technology. While developed regions have established power generation sources and distribution grids in place to ensure an almost constant supply of energy to the people who need it, developing regions are still struggling with this. Even though the power needs of developing nations is less than that of developed ones, power generation, supply and distribution is still of vital interest. The constant and reliable provision of power enables nations to develop and fully utilize new and innovative technologies which are essential for continued development.

Our demand for electricity is derived from the use of electricity in order to operate our domestic appliances, office equipment, in­dustrial machinery as well as provide suffi­cient energy for domestic and com­mercial lighting, heating, cooking and industrial processes. In many countries, electric power companies own the whole infrastructure from generating stations to transmission and distribution infrastructure. It is viewed as a natural monopoly and is usually heavily regulated, often with price controls. Although all forms of electricity generation have positive and negative aspects, techno­logy will eventually declare the most pre­ferred forms, but essentially, the options with less overall costs generally will be chosen above other sources. There are indi­cations that renewable energy and distri­buted generation are becoming more viable in economic terms, especially with the more highly integrated distribution grids that power companies are now investing in. A diverse mix of generation sources also reduces the risk of electricity price spikes.

Petroleum is vital to many industries and is important to the maintenance of many industrialized nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from 32% in Europe and Asia, up to 53% in the Middle East.

The world consumes about 30 billion barrels of oil per year, with developed nations being the largest consumers. As a whole, the production, distribution, refining, and

14 January

retailing of petroleum represents the world’s largest industry in terms of dollar value.

Recently, the trend has been an increased reliance on alternative or renewable energy sources as opposed to the traditional fossil fuels. Regions like the EU have been taking steps to encourage this trend. In March of 2007, the EU agreed to reduce greenhouse gas emissions by 20% (from 1990 levels) by 2020 and to produce a fifth of its energy via renewable sources by the same date. The president of the European Commission, Jose Manuel Barroso, said that the agree­ ment showed that Europe was able to take important steps on global warming. Ms Angela Merkel, the German chancellor, who’s country held the EU’s rotating

From l. to r. Mr. Frenk Withoos (Head of Power Generation South Asia Region, ABB), Mr. Franz – Josef Mengede (Global Head of Business Unit – Power Generation, ABB)

presidency at the time, led efforts to push through the deal, hopeful that the EU example would see other major polluters such as the US and China to agree to emissions cuts. As part of this commitment, the EU wants 10% of its cars and trucks to run on biofuels, and to ensure that 20% of its power comes from renewable energy sources such as solar and wind power, and hydroelectricity by 2020. It is this latter measure that has caused a lot of disagree­ ment as some have argued that they simply do not have the money to end their reliance on traditional fuels like oil and coal.

At this point in time alternative energy sources or renewable energy only provides about 7% of the world’s energy needs. This means that fossil fuels, along with nuclear energy (a controversial non-renewable energy source) are supplying 93% of the

EUMCCI Review

Mr Saji Raghavan (Country President, ALSTOM)

world’s energy resources. Nuclear energy, which is primarily generated by splitting atoms, only provides 6% of the world’s energy supplies. It is not likely to become a major source of energy worldwide (even though nations like France support the development of nuclear energy as an alternative energy source to aid in the reduction of carbon emissions), due in no small part to public pressure and the relative dangers associated with unleashing atomic power.

Although there are other forms of renewable energy sources, so far, sun, wind and water are still preferred. They are non polluting, renewable and efficient as well as simple. They also help reduce global carbon dioxide emissions, add some much needed flexibility to energy sources and decrease our dependence on fossil fuel reserves. One of the challenges with these sources of renew­able energy however, is developing the capability to effectively and economically capture, store and use the energy when needed. Currently, the development of integrated power grids allows power com­panies to supplement energy produced from these types of renewable sources with a more reliable, traditional source. As they say, part of the problem is that the sun doesn’t always shine.

To discuss these matters further, EUMCCI recently had the opportunity for a sit down with Mr. Franz – Josef Mengede (Global Head of Business Unit – Power Generation, ABB), Mr. Frenk Withoos (Head of Power Generation South Asia Region, ABB), and Mr. Saji Raghavan (Country President, Alstom) to discuss the current status and future of power generation both globally and locally.

1. How do you see the future of power generation?

SR: I see power generation solutions becoming more sensitive to the needs of nations in the long run, even in developing countries. Longer term views such as plant efficiency and environmental factors will be crucial drivers, something the more deve­ loped countries are already practicing, be it for economic reasons or for the quality of life.

2. What are some of the differences in power generation between regions?

SR: Often, the differentiating factors in power generation are the fuel type and size of plant/unit, dependant on availability of fuel and system requirement in a particular area, respectively. Having said that, wealthier nations and customers, as those in deve­ loped parts of Americas, Europe, Africa, Asia and Australia dabble in higher capital cost solutions that bring about longer term rewards in the aspects of efficiency and clean power. On the other hand, developing economies, constrained by their priorities for other matters of nation building, do tend to allocate lower capital costs, which also mean lesser efficiency in many sense of the word. There is no magic formula to fix the difference except for the industry to introduce more competitive technologies and greater returns, as we do at Alstom.

3. What are some of the main challenges in the power industry in Asia?

FJM: I would say that one of the main challenges is the lack of interconnection between power grids. In places like Europe there is a network of grids that are inter­ connected. Increased connectivity is con­ stantly worked on to improve the transfer abilities between grids. This enables a transfer of power over from one grid to another whenever there is a shortage. This also helps to cover any shortage of power supply from any sources, take for example, power production from wind farms. Some­ times the wind is there, sometimes not.

ABB has solutions to help stabilize the power supply to the grid from sources like these. Having an interconnected grid helps to enable this. Grids here in Asia are still to develop in this direction. Generating more power when the grids are running at full capacity won’t solve the problem in itself.

SR: The single biggest challenge right now would be to make a plan for the power industry and sticking to it, given the current global financial turmoil. Every imaginable factor influencing the industry are in a state of flux, such as fuel prices, load demand, funding liquidity etc. The sooner we have some sanity, the quicker we will be able to address the industry’s needs. Therein lies the problem due to lack of immediate visibility. Hence, one must plan for the future, an not be swayed by short term difficulties.

4. European leaders signed up in March of 2007 to a binding EU – wide target to source 20% of their energy needs from renewable sources such as biomass, hydro, wind and solar power by 2020. What kind of affect has this had in the power industry in the EU? FW: There is a sensitive balance that you have to strike between economic conside­ rations and environmental concerns. With

EUMCCI Review

regards to economics of scale, wind is emer­ ging as a sought after renewable energy source. Every region has different kinds of renewable energy sources available for instance in Malaysia, palm oil is the primary source of biofuel.

FJM: Biomass can also be used to produce biofuel and will play a major role in the future. There is regulation on the collection of waste and 65% of it is considered bio­ mass and is therefore a viable fuel source for energy, and a sustainable one in the long term. This is something that could be used and encouraged here in Asia with government support.

SR: Up until very recently, all efforts were on track, with investments pouring into such ventures. Now, only time will tell when EU can reach the target, pardon the pun.

ABB ABB is a leader in power and automation technologies that enable utility and in­dustry customers to improve per­formance while lowering environmental impact. The ABB Group of companies operates in around 100 countries. ABB divides their business into five sections: Power Products, Power Systems, Auto­mation Products, Process Automation and Robotics. Their Power Systems sec­tion offers turnkey systems and services for power transmission and distribution grids and for power plants.

Substations and substation automation systems are key areas. In Power Generation, Power Systems offers the instrumentation, con­trol and electrification of power plants.1 ABB is keen at looking at the generation, transportation and distribution of power.

They are efficiency and reliability driven and aim to provide as good a quality of power as possible with the least amount of loss.

ALSTOM Alstom is a global leader in the world of power generation and rail infrastructure.

They set the benchmark for innovative and environmentally friendly technolo­gies.

Alstom builds the fastest train and the highest capacity automated metro in the world. They also provide turnkey integrated power plant solutions and associated services for a wide variety of energy sources including hydro, gas, coal and wind. Alstom is present in 70 countries with a global workforce of over 65,000 people. They have been active in Malaysia for more than 30 years, being one of the key players in both the Power and Transport sectors of the Malaysian economy.

January 15

Power Generation

FJM: Globally, there has been an increase in the demand for power, and in places like Asia, there is still a big gap between the supply and the demand for power.

Governments are trying to close this gap by building bigger power plants and making them more efficient. By making these plants more efficient you can generate more power and use less fuel to do it. There can also be improvements and enhancements made on capacity without losing focus on lowering environmental impact. Improving the overall output of an existing plant is also a time and cost effective solution in many cases. Also, the grids here in Asia are being further developed so transportation of power is important, with maximum efficiency and minimum loss. It would also make sense to consider the development of a regional grid to balance needs e.g. shortages in Thailand being met with supply of power from, say Malaysia or somewhere else in the region.

FW: Power Generation is at a higher level in places like Europe. Technology wise how­ ever, there is not much of a difference.

Many places like Europe are more of a replacement market in that the power plants and technologies there are in place and already developed. There is more of a focus on replacement of damaged or worn parts / specific technologies. Renewable energy is emerging as a key focus area.

No Borders @ The Club @ The Saujana 30 October 2008

Events

EUMCCI held their annual "No Borders" networking night on the 30th of October, 2008. This successful event was hosted by newly launched The Club at The Saujana.

SuperNetworking Nite @ The Prince Hotel, KL On the 4th of December, 2008, EUMCCI held a Supernetworking night at The Prince Hotel in Kuala Lumpur. The night started at 18:30 and was filled with good drinks, food, and conversation.

16 January

EUMCCI Review

14 December 2008

EU Malaysia Trade Forum

19 November 2008

Events

EUMCCI Review

January 17

Breakfast Talk With PEMUDAH

Events

On the 16th of October, EUMCCI held their annual breakfast talk with Tan Sri Sidek Hassan (Chief Secretary to the Government) at the Prince Hotel. It was a successful event with Tan Sri Sidek addressing issues ranging from Temporary Occupancy License (TOL) land issues to efficiency in government policies.

Tan Sri Sidek responded to questions over the progress on converting idle land into agricultural land. According to the Tan Sri, 370 areas (equivalent to 12,156 hectares), had been identified as suitable land for agricultural development. The increase in goods and oil prices at the end of 2008 prompted the Ministry of Agriculture and

amount of capital is re­ quired for investment in agriculture, private sector companies will only con­ sider investing if they are provided with the land on a long term tenure basis. As such, Tan Sri said that interested parties are given a lease term of not more than 99 years to develop idle Federal land for agri­ cultural purposes. At pre­ sent, some plots (up to 9,003 acres) in the district of Kluang and Batu Pahat in Johor have been leased out to 28 com­ panies for “mo­ dern” agriculture projects. This is being monitored by the MOA.

The VIP table

Agro-Based Industry (MOA) to encourage investors to develop idle land as an alter­ native to increasing national food pro­ duction. He said, “A total of RM78 million has been budgeted under the 9th Malaysia Plan to develop idle land out of which, RM 48 million has been allocated under the Dasar Jaminan Bekalan Makanan (DJBM) (2008 – 2010) for food production.”

(FDI) into the country. The EPU will also propose the identification of sectors/ activities which are considered national interest. The 30% Bumiputra equity condition will only be imposed on these

Tan Sri Sidek was also asked about the progress on liberalisation of FIC Guidelines, Guide­ lines on Foreign Participation in the Distributive Trade Service and the 30% Bumiputra equity restriction.

He said that the Economic Planning Unit (EPU) was in the final stages of preparing a Cabinet Paper on The Future Role of the FIC. This paper will recommend ways to further enhance Foreign Direct Investment Jean Francois Jadin (EUMCCI Deputy Chairman) handing over the EUMCCI Business Directory 2008-2009’to Tan Sri Sidek Hassan

sectors. They will also propose that certain sectors / activities of the economy be further liberalised.

He also said that the Ministry of Domestic Trade and Consumer Affairs (MDTCA) had agreed that Guidelines on Foreign Participation in the Distributive Service would only be applicable to foreign hypermarkets. This keeps with the latest position of the FIC on macro targets rather than on individual enterprise equity targets.

When asked what the biggest hurdle in the TOL issue was (and Pemudah’s strategy in addressing this issue), Tan Sri said that investors view the State Government’s abso­ lute authority to reclaim the land a major stumbling block. TOLs are required to be renewed annually but the Land Administrators are given authority by the State Government to extend the tenure Participants listening to the talk period to 3 – 5 years. Since a high

18 January

Tan Sri Sidek Hassan giving his presentation at the EUMCCI VIP Luncheon

EUMCCI Review

On business licensing issues, it was mentioned that licensing improve­ment initiatives were being undertaken on a sector by sector basis. In the construction industry, the implementation of the OneStop Centres (OSC) at 103 local authorities helped to simplify the procedures for property development submission and approvals. They are now given within 4 – 6 months as opposed to the 2 years it used to sometimes take. Tan Sri Sidek said that the government has also introduced a composite license for hotel businesses based on their

star rating. This has resulted in an overall reduction in time at both the establishment and the operations stage (From 546 down to 143 days at the establishment stage, and 60 days from the previous 90 days at the operations stage). Hypermarkets approval processing time has been reduced from 60 days to 44 days. These improvement initia­ tives are to be incorporated into the Business Licensing Electronic Support System (BLESS) which was launched by the Prime Minister on the 5th of September, 2008.

These initiatives by the Pemudah Special Task Force are aimed at improving Malaysia’s business environment. It is hoped that overall, these improvements will continue to increase Malaysia’s attractiveness for Foreign Direct Investments.

At the end of the talk, Mr. Jean Francois Jadin, Deputy Chairman of EUMCCI also presented Tan Sri Sidek with the first copy of the EUMCCI 2008 / 2009 Directory.

Events

EUMCCI VIP Luncheon with the EU Ambassador On the 27th of November, EUMCCI organized a VIP Luncheon at the Grand Millennium, Kuala Lumpur featuring a talk given by H.E. Vincent Piket (Head of the Delegation of the European Commission to Malaysia). The presentation by H.E. Mr Piket focused mainly on EU – Malaysia trade issues and the effect of the global financial crisis and subsequent economic slowdown.

With the major economies of the world working hard to handle the financial crisis and turn around the economic slowdown, international leaders recently met in Washington D.C. for a G-20 meeting to address the issue. Some of the main goals which came out of this meeting include: improved international cooperation between finance regulators and improved interna­ tional consistency and quality of regulatory standards. The G-20 also agreed to restart the Doha Development Round which aims to lower trade barriers around the world and allow countries to increase trade glo­ bally. By year’s end, trade ministers are tasked to come up with agreed modalities for an ambitious and balanced outcome of the talks. The EU proposed a strengthening of macroeconomic surveillance and crisis prevention along with the development of an early warming system. There was also a call for continued trade without pro­ tectionism in order to help economies rebound and continue to grow.

As the world’s largest trader and investor, the EU needs trade to keep their economies growing and to make them rebound. This is something which H.E. Mr. Piket sees as relevant for the EU as well as for Malaysia, whose total trade represents 250% of its GDP. To that end, Malaysia and the EU are

pursuing bilateral trade nego­tiations bet­ween ASEAN and the EU. (The EU is looking to Malaysia to help give the process a push because Malaysia accounts for almost one quarter of all ASEAN exports to the EU.) While the EU – ASEAN Free Trade Agreement (FTA) showed a great deal of promise and potential benefits when first discussed in 2007, talks have not yet progressed to market access commitments and are still at the exploratory level in several areas. H.E. Mr. Piket said that the current economic crisis gives the negotia­ tions a new urgency and that progress needs to be made to ensure that the FTA can give the stimulus that both ASEAN and EU economies need.

The EU is expected to give a very significant boost to bi-lateral economic cooperation with Malaysia in 2009. They will finalize an €8 million program (around RM 35 million) for sustainable economic development. This is to fund economic projects in under deve­ loped regions, agriculture, the environment and human capital development in support of Malaysia’s 2020 vision. They also hope to finalise a cooperation agreement between Malaysia and the European Investment Bank (which has €1 billion, about RM 4.5 billion, for lending to projects in Asia). The focus is on projects connected with the environment and on projects in any sector that involve EU and Asian business ventures. The EU will also launch a new project in early 2009 which aims to boost EU – Malaysia business cooperation aimed at the services sector.

This project will promote a Malaysia – EU business dialogue in the services sector which will spell out new business opportu­

EUMCCI Review

H.E. Vincent Piket giving his presentation

nities, support matchmaking and identify new opportunities.

There is also another bilateral negotiation currently going on between the EU and Malaysia. It is the Forest Law Enforcement, Governance and Trade (FLEGT) agreement which deals with timber trading. This is an important sector with an annual Malaysian export to the EU of about €600 million (around RM 3 billion). This agreement will exempt Malaysia from any further legality certificates and give Malaysian timber preferential access to the EU market. It is hoped that talks between the EU and Malaysia will be successfully concluded by March of 2009.

H.E. Mr. Piket wrapped up the presentation by calling for increased cooperation between the EU and Malaysia in dealing with the current economic situation. His talk inspired a lot of questions by the floor. It was a highly successful event and one that EUMCCI hopes H.E. Mr. Piket will join us for again next year.

January 19

ABM: Increase in SME Loan Approvals Last Year The Association of Banks in Malaysia (ABM) said contrary to the perception that lending is being limited, there had, in fact, been an overall increase in small and medium enterprises (SMEs) loans approved was at Dec 31, 2008 compared with a year ago.

ABM chairman Datuk Seri Abdul Hamidy Abdul Hafiz said: “There is also no evidence from member banks of any unusual increase in SME loan application rejections last year.”

He added that at times, there was a lag period between loan submissions and

He stressed that prudent lending practices needed to be adhered to in order to maintain public and investor confidence in the local banking system.

“Key drivers remain unchanged ... there is ample liquidity in the system and the banks’ ability to lend remains undiminished,” he said in a statement.

Hamidy said that in some instances, customers did not fully utilise the lines of credit by lender banks and it became the bank’s prerogative to reduce such lines as part of ongoing loan reviews. This was in order that the excess could be used to better impact other lending activities.

He said SMEs with insufficient collateral could seek guarantees from the Credit Guarantee Corp to better enable them to obtain financing.

“Banks are committed to stimulating loan disbursements. For instance, Bank Negara’s latest overnight policy rate cut in November was quickly adopted by ABM members, with base lending rate (BLR) falling from 6.8% in July to as low as 6.25% as of December 2008,” Hamidy said.

He said the cost of borrowing pegged to BLR had been reduced, so the issue of banks ignoring the plight of businesses and making it difficult to get loans was inaccurate. http://biz.thestar.com.my

Malaysia Urges Rich Nations to Keep Trade Open KUALA LUMPUR, Malaysia (AP) -- Malaysia on Wednes­ day, November 26th, 2008, urged the U.S., Europe and other rich nations not to re­ treat into trade protectionism to shelter their domestic in­ dustries at a time of a global economic slowdown.

Trade Minister Muhyiddin Yassin said Malay­sia is concerned that rich countries may impose non-trade barriers or draw up stricter rules and procedures to block their exports from entering their markets.

“At times when things are difficult, there must not be any measures to hamper trade whether directly or indirectly,” he told reporters.

“We are concerned that the developed countries with their internal problems, with the financial crisis they are facing, countries like the U.S. and Europe, just might be doing that,” he said.

“It has to be as open as possible because in times like these we would like to see trade flow as usual, in fact more (than usual),” he added, without elaborating.

Muhyiddin’s call echoed concerns by Asian businessmen and analysts that U.S. President-elect Barack Obama will embrace more pro­tectionist trade measures.

Obama has pledged to vigorously enforce trade laws and criticized a pending trade pact with South Korea that he says fails to

EUMCCI Review

address an imba­lance in auto shipments.

He also said he would pressure China to end what he calls the manipulation of its exchange-rate system.

Washington and other trading partners say Beijing’s currency, the yuan, is kept under­valued, giving its exporters an unfair price advantage and adding to China’s multibillion-dollar trade surplus. Since the global financial crisis erupted in September, a few pro­tectionist measures have been announced: India imposed a 20 percent duty on crude soybean oil last week and Ecuador announced new but unspecified tariffs on 800 luxury goods. Indonesia has indicated it will need to put up some trade barriers, at least temporarily, to weather the downturn.

Source: Associated Press

January 21

Malaysia News

ABM was responding to a StarBiz story recently, entitled “Financing Blues” that companies, including SMEs, were finding it hard to get loans.

disbursements because applicants might have handed over incomplete submissions.

Members’ Corner

Frangipani Langkawi Highly Commended at Virgin Holidays Responsible Tourism Awards Langkawi, November 2008. The Frangipani Langkawi Resort & Spa recently received a highly commended award in the Large Hotel Category at this year’s Virgin Holidays Responsible Tourism Awards organised by responsibletravel .com. The ceremony was hosted at World Travel Mart (WTM) held at Docklands, London, on Wednesday the 12th of November. Judges commented that at Frangipani Langkawi, “More than 80% of Frangipani’s workforce is from the local community and 40% of its food is produced on the island. The resort also has a large environmental management programme designed for improvement, extensively planting native trees and maintaining a wetland in the resort.”

Launched in 2004, the awards are run in association with partners World Travel Market, The Daily Telegraph, Geographical

Magazine and BBC World News Service.

They are the most prestigious and compe­ titive of their kind in the world. This year a record 1,976 nominations were received from travellers around the world voting for tourism ventures that provide outstanding holidays that also benefit local people and destinations.

Resort owner, Mr Anthony Wong, said after acknowledging the award: “The Frangipani Langkawi Resort & Spa has implemented various greening programmes to streamline its daily operations and to minimise environ­ mental impacts. Since the resort’s inception in 2006, we have set out to implement various policies to reduce our impacts upon the environment. Some 100 initiatives are in place and listed on our website and we hope these will become a model for other resorts to follow.”

Mr Wong remarked that various measures have been introduced at the resort including reducing consumption especially wastage, effectively managing energy usage to reduce wastage, using environmentallyfriendly detergents, filtering the resort’s ‘grey water’ through a wetland and working with the local authorities to reduce the amount of rubbish that goes to the island’s limited landfill.

The Frangipani Langkawi Resort & Spa is a secluded and eco-friendly resort situated along 400-metres of beautiful golden sands at Pantai Tengah, in southwest Langkawi.

The resort is a 15-minutes drive from the Langkawi International Airport and just a short walk to the island’s top restaurants, cafés, bars and shops at Pantai Tengah.

Website : www.frangipanilangkawi.com

Serene Hideaway: The Club at The Saujana Strategically located 30 minutes from Kuala Lumpur city center and 35 minutes from the Kuala Lumpur International Airport (KLIA), The Club at The Saujana, Kuala Lumpur is nestled amidst 160 hectares of lush tropical gardens and scenic beauty.

The hotel is also strategically situated 5 minutes from the Subang Airport, Kuala Lumpur’s city airport and the new business aviation hub – a base for personal and corporate jets as well as a number of domestic flights.

The resort’s architecture, interior and outstanding accommodation reflects a contemporary Asian style incorpora­ ting local design elements.

With the focus on ambient tones, personalized service and attention to detail, the boutique resort offers 105 rooms and suites designed to conserve the Malaysian cultural and architectural

elements. Each category of rooms has its own view of the water feature, lake, garden, pool or the golf course.

The Club at The Saujana also features a 39-meter swimming pool surrounded by lush greeneries and two 18-hole championship golf courses designed

by Ronald Fream.

In addition, guests can also avail to facilities available at The Saujana Kuala Lumpur and The Saujana Golf and Country Club (SGCC) such as ban­ queting facilities, seven other restau­ rants, two additional pools, tennis and squash courts.

6th World Chambers Congress Organized by ICC’s World Chambers Federation and held for the first time in South East Asia, the 6th World Chambers Congress in Kuala Lumpur is expected to attract more than 1,200 chamber leaders from approximately 100 countries. It provides participants an opportunity to learn and share ideas, experiences and best practices on grassroots issues that have a direct impact on the chamber of commerce community. Held from the 3rd – 5th of June, 2009 at the Kuala Lumpur Convention Center, this Congress will also provide and excellent platform for networking among chambers, business leaders and members of business delegations coming to Kuala Lumpur; as well as the opportunity to explore business opportunities in Malaysia and the ASEAN region. For more information, visit: www.WCC2009@fmm.org.my

22 January

EUMCCI Review

Members’ Corner

GSM-UPM Hailed as one of Malaysia’s Top Business Schools PUTRAJAYA, 2nd Dec – Graduate School of Management (GSM) of Universiti Putra Malaysia (GSM-UPM) has been chosen as one of Top Business Schools in Malaysia in accordance to its excellent record of governing the business school that has earned them an international recognition. All this is done with the absence of the university’s administration.

Dato’ Khaled Nordin announcing and officially launched Malaysia’ Top Business Schools in Putrajaya.

Minister of Higher Education, Dato’ Seri Khaled Nordin informed the media that the ministry has allocated grant worth of RM25mil to GSMUPM with a budget of RM13.5mil for infrastructure and the other RM11.5mil is intended for developing human capital.

He stated that the selection of GSM-UPM is part of their effort and approach to transform Malaysia as an international centre of excellence apart from increasing the quality of programs offered by GSM-UPM. “Joining the pride of GSM-UPM, Graduate Business School of UKM (GSB-UKM) is also chosen as top business school in Malaysia”, he added during the launching of the International Business Post Graduates Colloquium 2008 and Top Business Schools in Malaysia.

According to Dato’ Khaled, the selection of GSM-UPM and GSB-UKM is done out of 11 short listed IPTA business schools that offer Master in Business Administration (MBA) and other relevant courses.

“One of the significant characteristics arbitrated during the selection of both universities are the autonomy trait in administration, accessibility of research methods and high quality innovation that comes with international network,” he elaborated.

Prof. Datuk Dr. Nik Mustapha R. Abdullah receiving a mock cheque from Dato’ Seri Khaled Nordin as Dato’ Prof. Ir. Dr. Radin Umar Radin Sohardi and Prof. Emeritus Tan Sri Syed Jalaludin Syed Salim look on.

The recognition by Minister of Higher Education will boost the internationally outlined programs of GSMUPM and to encourage positive rivalry at the international level.

“We hope that the recognition will become an excellence determinant for the reference of other IPTA in order to achieve more competitive and relevant program studies to accommodate local and foreign demands,” he concluded.

OMD Malaysia – Media Agency Of The Year Recently in the Asia Pacific Agency of the Year Awards, OMD Asia Pacific (OMD APAC) was crowned Media Agency of the Year 2008. Judged by a jury of marketing leaders and senior members of Media’s editorial team for agency achievements, new busi­ ness wins, client and staff retention rates, the scope of the agency’s work, industry contributions as well as initiatives, OMD APAC managed to establish itself as one of the top agencies in the media industry. This year’s win marks the fourth time that OMD APAC has managed to win this award and is

24 January

Membership Statistics Members with European Equity (EU)

30-Sept-08 31-Dec-08 Austria 2 2 Belgium 13 13 Cyprus 0 0 Czech Republic 1 1 Denmark 30 30 Finland 21 21 France 117 124 Germany 203 205 Greece 0 0 Ireland 22 22 Italy 4 4 Luxembourg 3 3 Malta 1 1 Poland 2 2 Portugal 1 1 Slovak Republic 1 1 Slovenia 1 1 Spain 22 22 Sweden 45 45 The Netherlands 84 90 United Kingdom 153 155 Sub-Total 726 743 Members with European Equity (Non EU) Norway 1 1 Switzerland 16 16 Sub-Total 17 17 Members without European Equity Australia 2 2 Bermuda 1 1 Canada 2 2 Hong Kong 11 11 India 1 1 Indonesia 0 0 Japan 6 6 Kuwait 1 1 Malaysia 352 373 New Zealand 1 1 Singapore 8 9 United Arab Emirates 3 3 United States 12 12 Sub-Total 400 400 Total 1144 1183

to date, it is the only media agency to have won this award four times.

Barry Cupples (CEO, Omnicom Media Group Asia Pacific), said “This win is a testament to a dedicated team of people who never lose sight of the fact that our service to clients is accountable. I’m really pleased that we can showcase to our clients and colleagues regionally and locally that all the hard work is worth the effort.

Roll on 2009!”

EUMCCI Review

OMD Malaysia was also the only media agency among all the creative and media agencies from Malaysia and SEA, to bring home the silver trophy for the SEA Office of the Year Award.

The Star Online & Mayflower’s information and travel portal, AllMalaysia.info’s launch travel portal AllMalaysia.info.

project,

Also launched was the AllMalaysian Bloggers Project Traveller Ambassadors Programme, where bloggers are invited to go on holiday trips sponsored by the Mayflower Travel Group to blog their experience.

AWS Invited to Assess Viability of Organising 3RD Annual Global CGI AWS is an international conference organiser based in Malaysia whose aim is to promote and contribute to the global breakthroughs that upgrade mankind.

In November of 2008, Sonia A. Mahendran (VP, Asian World Summit, an international conference organizer based in Malaysia) was invited to Nigeria to assess the viability of supporting the organization of the 3rd Annual Global Campus Initiative Conference (CGI). The Millennium Developments Goals by the United Nations are looking at trans­ formational Leaders with a vision that is based on creativity as a means to eliminate the social woes of its citizens and its youth.

This target can be achieved with the assist­

ance of sponsor companies to support and assist the African youth’s efforts and also be part of their Corporate Social Res­ponsibility.

AWS is proud to say not only are we talking the talk, but we are also walking the walk to upgrade mankind. It is a wake-up call to companies and govern­ments to not shut out African youths from employ­ment.

AWS will be collaborating with Mr. John Assaraf, New York Times best-selling author, speaker & entrepreneur co-Author of the book The Secret, in March of 2009 on our premier event entitled The Asian Economic Conference 2009. More details are available on the AWS website.

AWS is proud to be in partnership with the Disney Institute, showcasing powerful strategies, the cornerstones of Disney’s long term success progress via creativity, dreams and imagination.

Breaking News from Asia-Europe Institute (AEI), University Malaya, Kuala Lumpur 1) German Film Week – AEI, University of Malaya jointly organized a German Film Week with Goethe-Institut, Kuala Lumpur on the 1st, 3rd and 5th of December 2008. The opening ceremony was officiated by the Ambassador of Germany, H.E. Dr Gunhter Gruber.

Among the film shown was 7 DwarfesThe Wood is not Enough.

2) Italian Film Week – Italian Film Week took place on the 15th, 17th and 19th of December 2008. The event was jointly organized by AEI, University of

Malaya and the Italian Embassy. The opening ceremony was officiated by Dr. Gianpaolo Neri, the Charge’d’ Affaires, from the Embassy of Italy. Among the film shown was Alla Luce Del Sole.

3) Asia-Europe Institute, University of Malaya hosted the Signing of the Memo­ randum of Understanding between University of Malaya and University of Fribourg, Switzerland on the 8th of January 2009. The signing of the memorandum was represented by the Vice Chancellor of University of Malaya,

EUMCCI Review

Professor Dr. Ghauth Jasmon and the Coordinator/Professor from University of Fribourg, Switzerland, Prof. Christian Giordano. The signing of the memo­ randum is to enhance the academic and research cooperation between both the univer­sities in the field of social sciences.

4) Indonesian Film Appreciation Week – the event will be jointly organized with the Indonesia Embassy on the 19th, 21st and 23rd of January 2009 at AEI. Admission is free and all are welcome.

January 25

Members’ Corner

The AllMalaysia.info Travel Tool was officially launched

by Malaysia Airlines Com­ mercial Director Dato’ Rashid Khan, Star Publica­ tions Multimedia Chief Operating Officer, Mr. From l. to r.: Mr. Michael Aeria (COO, Star Publications), Mr. Chin Ten Joy (Director & Michael Aeria and General Manager, Mayflower Travel Group), and Dato’ Rashid Khan (Commercial Mayflower Travel Group, Director, Malaysian Airlines) Director and General Mayflower Travel Group is pleased to Manager, Mr. Chin Ten Hoy at Menara Star announce Mayflower’s collaboration with on 27 September 2008.

The Star on travel information and their

Travellers can plan their holidays using this interactive tool to book flights, accom­ modation, tour packages and even rent cars through this website. The site will also publish holiday destinations reviews by bloggers to give holiday planners insights, before deciding on their vacation.

New Members

Asian World Summit Sdn Bhd

Comlenia Sdn Bhd

Crowne Plaza Mutiara Kuala Lumpur

EPLAN Competence Centre S.E.A

Paneagle Communications Sdn Bhd

26 January

Unit 13-11, Level 13, Wisma UOA II 21 Jalan Pinang, 50450 Kuala Lumpur Tel: +603-2161 4198 Fax: +603-2161 5198 Email: sonai@asianworldsummit.com Website: www.asianworldsummit.com

Chief Executive in Malaysia

37, Jalan Pelukis U1/46 Temasya Industrial Park Glenmarie-Shah Alam 40150 Selangor Tel: +603-5039 9911 Fax: +603-5039 9918 Email: alberto_ciaramicoli@yahoo.com Website: www.comlenia.com

Chief Executive in Malaysia

Jalan Sultan Ismail 50250 Kuala Lumpur Malaysia Tel: +603-2148 2322 Fax: +603-2144 2157 Email: info@crowneplazamutiarakl.com Website: www.crowneplaza.com/

kualalumpur

Chief Executive in Malaysia

Unit 705, Block G, Pusat Dagangan Phileo Damansara 1 No.9, Jalan 16/11, Off Jalan Damansara 46350 Petaling Jaya, Selangor Tel: +603- 7954 5525 Fax: +603-7954 5528 Email: Joanne.leong@eplan.com.my Website: www.eplan.com.my

Chief Executive in Malaysia

Suite 2.03, 2nd Floor, Wisma Dicor Jalan SS17/1A, Subang Jaya 47500 Selangor Darul Ehsan Tel: +603 5636 6648 Fax: +603 5638 6646 Email: mano@paneagle.com.my Website: www.paneagle.com.my

Chief Executive in Malaysia

EUMCCI Review

Mr Roland Ong Teck Lee, President Brief Company Profile

AWS is a global business conference provider where we aim to contribute to the upgrade of mankind by tapping on world acclaimed experts from the East to the West to enhance your business, Your nation and YOU!

Mr Alberto Ciaramicoli Brief Company Profile

Comlenia is a joint-venture company between Comintel Bhd and SELEX-SI of Italy. Comlenia is ISO9001-2000 accredited in the provision of spare parts supply, repair and maintenance service of electronic equipment.

Mr Thomas Schmelter, Area General Manager Malaysia, and General Manager of Crowne Plaza Mutiara Kuala Lumpur Brief Company Profile

Crowne Plaza Mutiara Kuala Lumpur, a five-star hotel under the InterContinental Hotels Group (IHG), is a prominent landmark strategically located in the heart of the city’s banking, commercial and vibrant shopping district. With 563 guest rooms and suites, offering a distinctive Meeting Success programme and boasts 28 meeting rooms including a grand ballroom, Crowne Plaza Mutiara Kuala Lumpur is definitely The Place To Meet.

Mr Mak Jyh Yoong, Sales Director, South East Asia Brief Company Profile

ePLAN Competence Center S.E.A, a member of EPLAN Software & Service GmbH & Co. KG headquartered in Germany is the global leader and achieved high recognition in the field of CAE and CAD branch solutions. ECCSEA serves as a Training platform for whilst cultivating Professional Consulta­ tions for its users. EPLAN technology is capable of saving more than 80% of the Project Cost and Timelines with absolute flawless Project Risk.

Manoharan Thomas V. Dhanaraj Brief Company Profile

Telecommunications Industry (ICT) • Paneagle Communications Sdn Bhd was incorporated in 1996 the company launched Malaysia’s 1st Carrier-class Optical Metro Ethernet in December 2006.

• The company has its own fibre-ptic network infrastructure.

• The network runs through all major cities and town throughout the country.

Standard Chartered Bank Malaysia Berhad

Level 13, Menara Standard Chartered 30 Jalan Sultan Ismail 50250 Kuala Lumpur Tel: +603-27817269 Fax: +603-21483739 Email: gary.liew@standardchartered.com Website: www.standardchartered.com.my

Chief Executives in Malaysia

Mr Julian Wynter Managing Director & Chief Executive Officer Mr Nirukt Sapru Head Origination & Client Coverage, Wholesale Banking Mr Gary Liew Tuck Wai Head, Global Corporates Brief Company Profile

Systematic Office Equipment Sdn Bhd

Lot 944A & 944B Sungai Buloh New Village 47000 Sungai Buloh Selangor Darul Ehsan Tel: +603-6157 3560 / 3141 / 6181 Fax: +603-6157 6180 Email: sysoe@streamyx.com Website: http://systematic.asiaep.com

EUMCCI Review

Chief Executive in Malaysia

Mr Yap Kan Min, Managing Director Brief Company Profile

Systematic Office Equipment (SOE) incorporated in 1992, manufactures and trades in office furniture and equipment carrying the brand name “SYS”. Over the years SOE has moved into office renovation works as well.

January 27

New Members

Standard Chartered Bank Malaysia Berhad, a member of the Standard Chartered Group was established in Malaysia in 1875 and locally incorporated on 1 July 1994. As Malaysia’s first bank, Standard Chartered leads the way through product innovation, consistent and strong growth performance and sustainability initiatives. Standard Chartered employs more than 5,000 employees in its Malaysian operations.

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Europa Awards

E

UMCCI will be presenting The Europa Awards 2009 on the 30th of May, 2009 at the Sheraton Imperial Kuala Lumpur Hotel. This prestigious event is held in recognition of the corporate organizations and enterprises that have made efforts and succeeded in initiating, contri­ buting and sustaining the growth of trade and investment links between Europe and Malaysia. It also acknow­ ledges the critical role which every company has in its capacity to be amongst the most competitive enter­ prises in these nations.

There will be three exclusive, long term awards bestowed upon the winners based on the specific classifi­ cation. The first award is given to a company for achieving excellence in continued trade and investment bet­

2009

ween EU and Malaysia. The second member company which has demon­ strated the highest excellence in trade and investment in Malaysia, and the third award is for a Malaysian member company which has demonstrated the highest excellence in trade and investment in the EU. For each award, there will be three nominees. The winner of any one of the awards will be given due recognition and justification by the panel. The award for excellence is based on a number of criteria and in brief their innovation and organizational ability in their industry, and their corporate social responsibility.

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Companies are invited to express their interest in participating in the Europa Awards. For more information on the Europa Awards 2009 or nomination forms, kindly contact Geetha at +603 2162 6298 or e mail to events@eumcci.com

January 29

Indicators

Malaysia’s Trade Year

Export Value RM (million)

Export Growth Rate (%)

1990

79,646.37

0

Import Value RM (million)

Import Growth Rate (%)

79,118.57

0

Total Trade Value RM (million)

Total Trade Growth Rate (%)

Trade Balance Value RM (million)

158,764.94

0

527.8

1991

94,496.63

18.65

100,831.06

27.44

195,327.70

23.03

-6,334.43

1992

103,656.70

9.69

101,440.47

0.60

205,097.18

5.00

2,216.23

1993

121,237.48

16.96

117,404.73

15.74

238,642.21

16.36

3,832.75

1994

153,921.22

26.96

155,920.97

32.81

309,842.19

29.84

-1,999.76

1995

184,986.48

20.18

194,344.49

24.64

379,330.97

22.43

-9,358.00

1996

197,026.10

6.51

197,279.75

1.51

394,305.86

3.95

-253.65

1997

220,890.44

12.11

220,935.47

11.99

441,825.91

12.05

-45.03

1998

286,563.12

29.73

228,124.47

3.25

514,687.59

16.49

58,438.64

1999

321,559.54

12.21

248,476.82

8.92

570,036.36

10.75

73,082.71

2000

373,270.32

16.08

311,458.87

25.35

684,729.18

20.12

61,811.45

2001

334,283.81

-10.44

280,229.09

-10.03

614,512.91

-10.25

54,054.72

2002

357,430.02

6.92

303,090.47

8.16

660,520.48

7.49

54,339.55

2003

397,884.39

11.32

316,537.85

4.44

714,422.24

8.16

81,346.54

2004

481,252.99

20.95

399,632.17

26.25

880,885.16

23.3

81,620.82

2005

533,787.81

10.92

434,009.91

8.60

967,797.72

9.87

99,777.90

2006

588,965.49

10.34

480,772.54

10.77

1,069,738.03

10.53

108,192.95

2007

605,153.24

2.75

504,813.80

5.00

1,109,967.03

3.76

100,339.44

Total Trade Growth Rate (%)

Trade Balance Value RM (million)

25,001.77

0

-363.89

Source: Ministry of International Trade and Industry

Malaysia’s Trade with European Union Year

Export Value RM (million)

1990

12,318.94

Export Growth Rate (%) 0

Import Value RM (million) 12,682.83

Import Growth Rate (%)

Total Trade Value RM (million)

0

1991

14,447.85

17.28

15,554.01

22.64

30,001.85

20.00

-1,106.16

1992

15,919.57

10.19

13,973.52

-10.16

29,893.09

-0.36

1,946.05

1993

18,127.81

13.87

15,120.70

8.21

33,248.51

11.22

3,007.12

1994

22,238.75

22.68

23,287.18

54.01

45,525.92

36.93

-1,048.43

1995

26,646.25

19.82

30,274.42

30

56,920.67

25.03

-3,628.17

1996

27,440.67

2.98

28,936.07

-4.42

56,376.74

-0.96

-1,495.40

1997

32,360.80

17.93

31,869.55

10.14

64,230.34

13.93

491.25

1998

47,551.67

46.94

27,623.99

-13.32

75,175.66

17.04

19,927.68

1999

51,555.27

8.42

29,553.82

6.99

81,109.09

7.89

22,001.45

2000

52,219.58

1.29

34,284.18

16.01

86,503.77

6.65

17,935.40

2001

47,348.33

-9.33

36,518.62

6.52

83,866.96

-3.05

10,829.71

2002

45,427.20

-4.06

35,280.48

-3.39

80,707.68

-3.77

10,146.72

2003

50,085.37

10.25

37,761.62

7.03

87,846.99

8.85

12,323.75

2004

60,676.54

21.15

47,892.98

26.83

108,569.52

23.59

12,783.56

2005

62,829.95

3.55

50,585.50

5.62

113,415.46

4.46

12,244.45

2006

75,148.92

19.61

54,757.18

8.25

129,906.09

14.54

20,391.74

2007

77,823.64

3.56

59,941.48

9.47

137,765.12

6.05

17,882.16

Source: Ministry of International Trade and Industry

30 January

EUMCCI Review