Eumcci review vol2 no3

WM RM8.00 | EM RM10.00

VOL 2

NO 3

The EU-ASEAN Forum on Food Safety A timely and historic forum

Launch Of The SEBSEAM-M Web Portal Getting Malaysian Women Into The Boardroom

EUMCCI REVIEW IS PUBLISHED BY

EUMCCI REVIEW IS PRODUCED FOR EUMCCI BY

EU-Malaysia Chamber of Commerce & Industry (EUMCCI) Suite 3.03, Menara Atlan, 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel: +603-2162 6298 Fax: +603-2162 6198 E-mail: eumcci@eumcci.com Website: www.eumcci.com

MPH Group Magazine (M) Sdn Bhd (771396-H) Lot 1, 1st Floor, Bangunan TH, No. 5 Jalan Bersatu, Seksyen 13/4, 46200 Petaling Jaya, Selangor DE, Malaysia Tel: 603-7960 7334 Fax: 603-7960 3278 E-mail: ganesan@mph.com.my

Chairman Fermin Fautsch

Chief Executive Officer Dato’ Ng Tieh Chuan

MPH Group

MPH Group Publishing

Deputy Chairman Daniel Pans Dato’ Andy Seo

MPH Group Magazine

Senior Marketing & Sales Executive Lilian Ng

Honourary Treasurer Dato’ Robert Teo

General Manager V S Ganesan

EUMCCI Board

General Manager Kuah Sze Mei

Chief Operating Officer Swaminathan MV

Board of Directors/Representatives Artur Dabkowski Maria Liew Azlam Shah Alias Olof Rapp Allan Jensen Saif Malik Vojtech Hromek Stellios Plainiotis Jari Niemi Ron Anderson Loong Caesar Werner Somweber Rafael Matos

Senior Editor Vimala Seneviratne Editor Sharmila Valli Narayanan

Minna Saneri - Editor Stefanie Braukmann Zaiton Hj Idrus Rozitaayu Zulkifli

Deputy Creative Head (Magazine) Stephanie Yap Senior Creative Designers Ng Seng Chee, Ngan Pooi Kuan

Production Editor Shamsul Hidzry O Khairuddin Senior Sales Manager Ng Wee Ming

Editorial Commitee

Creative

Head of Department Amy Heng

Creative Designer Amanda Fong Seok Mei

Circulation & Retail Distributors General Manager Tai Kwai Meng

Sales Managers Faridah Ismail Rebecca Gun

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.

Reproduction

General Manager (Finance) Kelvin Chong

Assistant Sales Managers Shubhashnee Radha

Manager Koh Sook Khuen

Finance

Accountant Barbara Tay

No part of the EUMCCI Review may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission.

Circulation

3,000 copies of the EUMCCI Review are distributed, on a 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.

Online Partner

It is also sold in all major bookshops.

Printer

MPH Group Printing (M) Sdn Bhd (142270-H) No 31, Jalan 2/148A, Taman Sungai Besi, Industrial Park 57100 K.L Tel: 603-7987 0966 Fax: 603-7984 0966 E-mail: sales@mphprinting.com.my

Distributors (Malaysia) MPH Distributors Sdn Bhd (5048-A), Ground Floor, Bangunan TH, No. 5 Jalan Bersatu, Seksyen 13/4, 46200 Petaling Jaya, Selangor DE, Malaysia Tel: 603-7958 1688 Fax: 603-7954 8215 E-mail: distributors@mph.com.my Advertising Enquiries

V S Ganesan / Ng Wee Ming Tel: 603-7960 4278 Fax: 603-7960 3278 E-mail: ganesan@mph.com.my All writers automatically agree to indemnify EUMCCI and MPH Group Magazine (M) Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. All rights reserved.

Copyright © 2014 by EUMCCI and MPH Group Magazine (M) Sdn Bhd. No part of this publication may be reproduced in any form without prior written permission from the publisher. The views expressed in the articles are those of the authors and do not necessarily reflect the views of EUMCCI and MPH Group Magazine (M) Sdn Bhd. EUMCCI and MPH Group Magazine (M) Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.

16

EDI T OR’S NO T E Historic Firsts I had mentioned in my Editor’s Notes last issue that EUMCCI had won the bid for a five year project called Support for European Business in South East Asia Markets – Malaysia (SEBSEAM-M). I am pleased to announce that one of the first major outcomes of this project has been realised: The launch of the SEBSEAM-M web portal. The event was officiated by YB Datuk IR. Hamim Samuri, Deputy Minister for International Trade and Industry.

This web portal will help SMEs from Europe to increase their business networks by reaching new markets, expanding business network and finding new partners. Visit the website at www.eu-sme.my and www.eu-sme.com. my. Read more about the portal’s launch on page 9.

Another important event that is part of the SEBSEAM-M project is the EU-ASEAN Forum on Food Safety. YBhg Datuk Dr Jeyaindran Tan Sri Sinnadurai, the Deputy Director General of Health (Medical) who opened the forum, called it “historic” and indeed it was. This was the first time that all members of ASEAN had come together to discuss aspects concerning food safety on a regional level. The forum has been so well received that we have decided to hold it again next year. For more on the forum read the story on page16 and the interview with Mr. Daniel Pans, the Co-Sector Leader of SEBSEAM-M’s Agribusiness Services. His company DPO International was one of the main sponsors of the forum.

Our various committees have been very active arranging very interesting activities like talks and meetings. Read more about such activities in Chamber News starting on page 28. EUMCCI is very proud that our committees are able to attract some of the most well-known people in the industry to speak at their events.

An example of this was the EUMCCI Human Resources Committee’s Interactive HR Dialogue with Malaysian leaders. One of the speakers was Datuk Yvonne Chia, who is a legend in the Malaysian corporate world for being the first Malaysian woman to head a bank. Read about the insights she gave on how women can aspire to make it to the boardroom on page 4.

2014 is coming to an end and what a year it has been! I would like to wish you a Merry Christmas and a Happy New Year.

Minna Saneri Editor

4

28

9

CONTENTS 3

Editor’s Note

4

Women In The Boardroom

8

Launch of SEBSEAM-M Web Portal

12

Malaysia, an Attractive Investment Destination

13

Representing EU Business Interests Outside Europe: Interview with Chairperson of EBOWWN

16

EU-ASEAN Forum on Food Safety

19

The Food Industry – Moving Towards Standardisation: Interview with Daniel Pans

24

Country Focus: Italy

26

Intellectual Property Rights for European Businesses in Malaysia

28

Chamber News

36

Corporate Partner

39

New Corporate Partner

40

Calendar of Events

FEATURE

WOMEN IN THE BOARDROOM The EUMCCI Human Resources Committee’s Interactive HR Dialogue with Malaysian leaders gave interesting insights into retaining women in the workforce and getting them to move up to the boardroom.

Interactive HR Dialogue with Malaysian leaders Date: 18th August 2014 Venue: F-Secure Corporation

(M) Sdn Bhd, Wisma

F-Secure , Tower 3A,

Avenue 3,

Bangsar South.

Venue host:

Platinum sponsors:

4

EUMCCI REVIEW

W

hen Datuk Yvonne Chia speaks, everyone listens.

Datuk Yvonne is a trailblazer in the Malaysian corporate world. She was the first woman CEO of a bank in Malaysia when she became the CEO of RHB Bank. In 2004 she moved to Hong Leong Bank as its CEO and oversaw the bank’s entry into China and Vietnam. She was one of the speakers at the Interactive HR Dialogue with Malaysian Leaders, an event organised by EUMCCI Human Resources Committee. Her topic was titled ‘Women and Leadership in the workforce.’ The other speaker was Mr. Johan Mahmood Merican, CEO of TalentCorp who spoke on ‘Attraction and retention of Malaysian talent (local and abroad) and the challenge.’

Women In The Boardroom One of the hotly debated topics in Malaysia has been the small number of women in the boardroom. Women hold just seven per cent of board seats of listed companies. This, despite the fact that Malaysian women make up nearly 68 per cent of enrollment in public universities. Malaysian women’s participation in the work force is also a cause for concern.

Among ASEAN countries, it is relatively low at 52 per cent compared to other countries like Singapore (60 per cent) and Thailand (70 per cent). Malaysia’s target is to achieve 55 per cent by 2015.

So what is holding corporate Malaysian women from entering the boardroom? It certainly is not the Government says Datuk

Yvonne. “Our Government is a big enabler for women to excel in the workforce,” she says. “In the public sector there are many women at the top.” She listed a few reasons that block women’s entry into the boardroom:

believer in sports as a tool to build all these skills and encourages mothers to ensure their children participate actively in sports.

The HR department. “HR needs to change its mindset when it comes to promoting women or anyone else to senior management and other top posts,” she says. “A lot of times, women don’t get promoted because they don’t have the paper qualifications.

You need to hire smart people not just people with top scores! Instead of focusing on paper qualifications, look for whether she has other qualities such as knowledge of the industry, ability to communicate and lead a team and ability to do the work.” She urged HR departments not be influenced by such things as a woman’s pregnancy and wondering whether she will be able to cope.

Datuk Yvonne also had some advice for women who aspire to be a CEO and thereby securing a seat in the boardroom:

Men sitting in the board need to change their thinking. “At the board level, it is still like an old boys’ network,” explains Datuk Yvonne. When it’s all men, everyone thinks like a man. “Diversity of thoughts and experience is important for a board to function well. That’s why it is important to have equal women ‘thought leadership’ at the board level.”

Master the art of selling. “If you can’t sell, you can’t be a CEO,” affirms Datuk Yvonne. She got noticed when she began performing well in the sales department,

Women’s own personal choices. “Not everyone woman wants to be a CEO and that’s ok too,” says Datuk Yvonne. One should not criticize a woman’s desire to balance her personal life with her career. “Every woman has her own story. I have had difficulties in my climb to the CEO’s office. But I stayed my course. Perhaps I was able to do it because during my time, things were less competitive for women. Nowadays women are expected to be the best wife, mother and career woman. I see young mothers so stressed with their children’s academic scores; enrolling them in as many extra curricular classes so that their children have an edge and getting stressed when they are not performing up to the expected standard.”

She went on to explain her own approach to child rearing. “Provide them with a safe environment, teach them to build good communication skills and instill in them a high self esteem.” Datuk Yvonne is a firm

Preparing Women For The Boardroom

Be bold and ask for it. “No one is going to give you the opportunity unless you show interest and ask for it. Ask and you will be noticed,” she says. When Datuk Yvonne started her career in banking, she was in research. She noticed that it was people in sales and marketing who were always going for seminars and meeting people. She asked to be transferred to sales and marketing and took the necessary exams to sharpen her knowledge.

especially for her.

when

clients

were

asking

Turn ‘feminine’ qualities such as multitasking, nurturing, paying attention to details, having empathy and gut instincts to your advantage in the workplace.

“We as women can nurture and mentor other people, especially other women to come up in their career,” she says.

Emotional Intelligence (EQ) is an advantage for women and do not be distracted by some who complain that women are too emotional. “Women have a nose for EQ. I am where I am because of EQ,” says Datuk Yvonne.

Learn to hire and promote the right people. She advises CEOs to take an active interest in the recruitment of staff and not just leave everything to the HR department and only be involved in the last stage. At the same time, be honest when people do not perform, she advises and find ways to place them elsewhere where they will be more productive.

Ms Minna Saneri, Ms Vicky Ganneson, (the dialogue moderator), Mr Johan Mahmood Merican and Datuk Yvonne Chia.

EUMCCI REVIEW

5

FEATURE

Continuous learning is a must.

Take care of your health. “You need to be in good shape because being a CEO requires a lot of energy.”

Diversity At The Workplace When it was Johan’s turn to speak, he touched on issues faced by Malaysian employers in retaining employees. A large part of his talk touched on the increasing diversity in the workplace by employing more women.

TalentCorp he says, is also concerned at the large number of Malaysian women who are dropping out of the workforce to stay at home for family and other reasons. “Among 100 women of working age, only half of them are still working,” disclosed Johan. “They tend to drop off from the workforce in their

late 20s – that’s when they are married and with children.”

Diversity (in terms of gender, race and age) at the workplace is a new agenda for TalentCorp. He listed a few steps taken by the TalentCorp and the Government to increase the participation of women in the workforce: • • •

Urging companies to allow flexi- time work hours Longer maternity leave Creating crèches at the workplace.

He pointed out that incentives and tax deductions are given by Government to employers to set up crèches at the workplace.

• • •

Special rooms for nursing mothers Working from home Getting women who have left the workforce to return via various events such as the first ever Career Comeback Networking event which TalentCorp hosted.

The dialogue session ended with a lively Q&A session where most of the questions asked centered on women in the workforce.

Datuk Yvonne made a plea to employers about promoting women to senior management and the boardroom: “It’s not just about the CVs anymore. Women have the qualities. Give us a chance! If we are not good, then let us go, but give women a chance.” EU

Quota For Women In The Boardroom In 2011 the Government passed a law where the private sector must have at least 30 percent women representation at boardroom level by 2016. When asked about the quota, Datuk Yvonne had mixed feelings about it.

“Maybe at the board level there is a need for quota, but not at the CEO level. That should be strictly on meritocracy,” she said.

Instead of talking about quotas she would rather see the Government giving generous incentives to companies that create an enabling environment in the company that will persuade women to stay and thrive. “I think everyone recognises that women need time for the family as they are most often the emotional pillar of the family.” The best solution will be to find ways to make it easier in the workplace for a woman to thrive in her career and support her in her family life.

Mr. Constantin Nicolaysen Karame, Ms. Minna Saneri and Mr.Ingvar Froiland.

Participants at the forum.

6

EUMCCI REVIEW

FEATURE

SEBSEAM-M

WEB PORTAL IS LAUNCHED! The SEBSEAM-M web portal is a one-stop service that will provide European SMEs information and expertise on how to facilitate entry into the ASEAN market.

Launch Of Sebseam-M Web Portal Date: 30th September 2014 Venue: Grand Hyatt Hotel, KL

S

upport for ‘European Business in South East Asia Markets Malaysia Component’ or SEBSEAM-M is a project undertaken by EUMCCI together with 11 partner organisations in Malaysia and in Europe. The project is co-funded by the EU. SEBSEAM-M’s dual objectives are to facilitate market access to European SMEs and to promote Malaysia as the gateway to ASEAN. A major part of this project was the successful launch of the SEBSEAM-M web portal. The event was officiated by YB Datuk IR. Hamim Samuri, Deputy Minister for International Trade and Industry. Also present at the launch were ambassadors, trade counsellors and other key stakeholders.

In his opening remarks at the launch, Mr. Fermin Fautsch EUMCCI Chairman explained the significance of the launch of the SEBSEAM-M web portal by highlighting some facts of the Internet.

• • • •

It’s changing the way people work.

The Internet penetration in ASEAN is close to 50 per cent.

In the EU, around 600 million people use the Internet.

“Internet is the ideal way and the main way to promote this project,” he said.

Fautsch added that the web portal was one of the first major outcomes of the SEBSEAM

8

EUMCCI REVIEW

Screen shot of web portal www.eu-sme.my.

project which was launched over a year ago. He thanked H.E. Luc Vandebon, the Ambassador and Head of Delegation of the EU to Malaysia, for entrusting the EUMCCI in overseeing this project and disclosed that more than Euro3.3 million will be spent over the next five years on this project.

•

• •

H.E Vandebon in his speech highlighted the importance of the SMEs to a nation.

• •

SMEs, he said, are the backbones of our economy.

There are more than 20 million SMEs in the EU and they create two

out of three jobs.

They represent over 90 per cent of the business in the EU and are “a key driver for economic growth, innovation, employment and social integration.”

In Malaysia, SMEs employ 56 per cent of the workforce.

Because SMEs are small, they often struggle to penetrate new markets. The SEBSEAM-M web portal will benefit SMEs from the EU and Malaysia by enabling them to expand their business network in terms of reaching new markets, expanding the business network and finding new partners.

QUICK FACTS ON SEBSEAM This project is planned over a broad time-frame of 60 months and focuses on four key sectors: 1. Transport & Infrastructure 2. Energy, Utilities & Environmental Services 3. Agribusiness 4. Professional Services

H.E Holger Michael, German ambassador to Malaysia, Datuk Hamim Samuri, Deputy Minister for International Trade and Industry and Mr Fermin Fautsch.

Datuk Hamim Samuri, Mr Fermin Fautsch and H.E Luc Vandebon.

Support and services offered to companies: • Advocacy: Policy dialogues, position papers, working groups, networking events and formal and informal lobbying • Business services: Project and market intelligence reports, web portal set up for business services, IPR and Standards Help Desks, road shows in the EU and trade fairs in Malaysia and ASEAN, European Business Point.

• C a p a c i t y b u i l d i n g : We b i n a r s , seminars, workshops, formal training and skills programmes in EU-Asia trade issues.

• Tr a d e a n d i n v e s t m e n t : Ta rg e t e d and sector specific Trade Mission the EU, B2B especially for key sectors and innovative project partnerships.

Who will benefit from SEBSEAM? EU Business Organisations in EU, Malaysia and ASEAN; other EU, Malaysian and ASEAN stakeholders, including government, local agencies and authorities, Malaysian and ASEAN companies specifically SME entrepreneurs.

Source: Support for European Business in South East Asia Markets: Malaysia Gateway to ASEAN Opportunities

The launch of the web portal.

Datuk Hamin, who had been briefed about the web portal, was impressed with it. “Now, with a single click, European companies will have access to the information they need for setting-up their businesses in Malaysia and ASEAN. More importantly, European SMEs are now able to identify and pose specific questions to the relevant experts from the region, on issues of interest to them,” he said.

He encouraged the ASEAN Business Advisory Council (ABAC) to consider establishing a SEBSEAM-like portal for the region’s SMEs. “Such a web portal would not only augur well with the post2015 architecture of ASEAN, but also add value to the region’s on-going work towards becoming a more prominent player in the global supply chain.”

At the press conference after the web portal launch.

Datuk Hamim then launched the web portal. The URL for the portal is www.eu-sme.my and www.eu-sme.com.my EU

EUMCCI REVIEW

9

Sabah International Convention Centre (SICC)

THE MAKING OF GREATER

KOTA KINABALU

Kota KInabalu is being turned into a vibrant, liveable city.

S

abah Economic Development and Investment Authority (SEDIA) was set up in 2009 to drive the growth of the Sabah Development Corridor (SDC), with its primary task to plan, coordinate, promote and accelerate the development of the corridor.

SEDIA serves as the one-stop authority to promote investment into SDC and catalyse the state’s economic activities.

In 2011, SDC initiative was aligned with other government initiatives such as the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP) through the Corridors and Regional Cities initiative, which was carried out jointly by PEMANDU (Performance Management Delivery Unit) of the Prime Minister’s department and SEDIA. Under the Regional Cities initiative, Greater Kota Kinabalu, covering an area of 351 square kilometres, that also includes the surrounding towns of Penampang and Putatan, will be turned into a strong, vibrant and liveable city. Kota Kinabalu is the largest urban centre and the main hub for businesses in Sabah. Five Key Result Areas have been identified to realise the aspiration to transform Greater Kota Kinabalu into a world-class investment and lifestyle destination: development and modernisation of Kota Kinabalu 10 EUMCCI REVIEW

into a lifestyle hub; boosting tourism attractions in Greater Kota Kinabalu; improving mobility and travel experience; boosting public and private healthcare for health tourism; and improving early childcare education.

Among the private sector-led projects that are under the Greater Kota Kinabalu initiative to drive the growth of SDC into a leading economic region by 2025, are: Kota Kinabalu City Waterfront Development, Karambunai Integrated Resort City (KIRC), International Technology and Commercial Centre (ITCC), Sabah International Convention Centre (SICC), Ming Garden Hotel, YTL Resort Pulau Gaya, Jesselton Quay Project, Aeropod, C Park and Riverson Projects comprising the Gleneagles Kota Kinabalu Medical Centre, Riverson Walk and Riverson suites, to name a few. Four SDC projects are implemented under the Kota Kinabalu City Council purview to turn the city into a liveable city with healthy lifestyle: Beautification of Sembulan River Park; a pedestrian and cycling route from Tanjung Aru to Universiti Malaysia Sabah; upgrading of Atkinson Clock Tower and the Australian Place; and upgrading of the city’s bus terminal.

SDC’s efforts have boosted Sabah’s real estate sector with property prices in Kota Kinabalu increasing by more than 40

Beautification of Sembulan River Park

per cent over the past five years. The strong development impulses and spin-off generated by the economic activities emerging from the various economic clusters and sectors, such as, the oil, gas and energy; palm oil and tourism activities have also stimulated the influx of real estate investment into Sabah especially in the Greater Kota Kinabalu area. Greater Kota Kinabalu is emerging as one of Malaysia’s attractive destination for overseas investors in the long term.

Greater Kota Kinabalu has tremendous growth potential. Foreign and domestic investments are welcomed especially in the services, tourism and transportation sector, focusing on education and training, health and wellness tourism, the creative and leisure industry, waste management, real estate, hotels and resorts, integrated waterfronts; meetings, incentives, conventions and exhibitions.

Since the launch of SDC in 2008, about RM128 billion have planned and being carried out in SDC. SEDIA, the One Stop Authority for SDC facilitates investment into SDC. For more information visit the website at www.sedia.com.my. EU

A place of

Business, Culture and Nature The Sabah Development Corridor (SDC) was established in 2008 with the aim of promoting sustainable economic growth, distributing wealth in the state and unlocking its vast wealth of diversified resources that can bolster tourism, agriculture and manufacturing reinforced by the introduction of the Government Transformation Programme(GTP), Economic Transformation Programme (ETP) and the Tenth Malaysia Plan.

The state of Sabah is a breathtaking, warm and welcoming place for tourists and investors alike.

A region from which to build a better world. SDC is definitely the corridor to expand your business in Sabah.

Come and discover the secrets of Sabah: How your holiday can turn into an exciting business opportunity!

Sabah Economic Development and Investment Authority (SEDIA) Lot 1, Wisma SEDIA, Off Jalan Pintas-Penampang P.O.Box 17251, 88873 Kota Kinabalu, Sabah, MALAYSIA Phone: +6088450650 Fax: +6088450699 info@sedia.com.my www.sedia.com.my

FEATURE

MALAYSIA, AN ATTRACTIVE INVESTMENT DESTINATION Malaysia has always been a magnet for foreign investments. Ever since the Government announced the Economic Transformation Programme (ETP), Malaysia has been under the spotlight for investors. With the start of the ASEAN Economic Community (AEC) in 2015, the prospects for Malaysia as a destination for investors has become brighter.

•

•

•

A

lthough Malaysia has always been attractive to foreign investors, in the last few years, the competition for FDIs has intensified in Asia due to the emergence of China’s economy. Other countries in the ASEAN region like Vietnam, Laos and Cambodia which had been sidelined as investment destinations, have now emerged as the new investment hotspots. The economic integration of Myanmar is one of the biggest success stories in recent years, prompting the Wall Street Journal to exclaim to its readers that Myanmar’s potential as “too great for some investors to ignore.”

Realising that Malaysia had to speed up its economic momentum if it wanted to compete in the global stage, the Government announced the Economic Transformation Programme (ETP) in 2010. ETP’s aim is to move Malaysia away from its commoditiesdominated and Government- driven economic model to one where the private sector would be the major engine of growth, by facilitating

12 EUMCCI REVIEW

a business friendly environment. The ultimate aim of the ETP is to drive Malaysia into a high income nation by 2020.

Malaysia’s economic prospects have also become brighter now that the ASEAN Economic Community (AEC) will become a reality in 2015. AEC will become one of the world’s most important trading blocks – a region rich in natural resources, with a large manufacturing and industrial base and with a combined population of 600 million. And Malaysia, at the heart of ASEAN, is well poised to reap the benefits of the economic integration of AE. Here are some impressive facts as to why Malaysia should be on the list of every investor: •

According to the World Competitiveness Yearbook 2014, Malaysia ranked as the 12th most competitive country in the world. This makes Malaysia the only

•

•

•

•

other country in Southeast Asia besides Singapore to make the top 15 list.

Malaysia’s strategic location in ASEAN and with its excellent infrastructure in terms of ports, airports, roads and railways offers the perfect outbound trade hub for its manufacturing neighbours.

Malaysia has one of most politically stable and business friendly environments in the region – a major reassurance for long-term direct investors.

Malaysia scores high marks for ease of doing business. The average time of starting a business in East Asia and Asia Pacific is seven procedures, 37.8 days and a cost of 29.8 per cent of income per capita in fees. In Malaysia, it only requires three procedures, six days and costs only 7.6 per cent of income per capita in fees!

The World Bank in its Doing Business 2014 report ranked Malaysia the 6th best place in the world to conduct business.

Malaysia offers some of the most competitive corporate tax rates in Asia Pacific at 25 percent in 2013. Compare this to 30 percent in Australia, 33.99 percent in India, 38.01 percent in Japan and 30 per cent in the Phillippines.

Malaysia is ranked no 1 by the World Bank in its ease of getting credit report in 2014. This is the third year in a row that Malaysia has been ranked at the top ahead of other top performing economies in the region such as Hong Kong (3), Japan (28), China (73) and Indonesia (86).

The Government’s commitments to multi-lingual free education ensures there is a highly skilled workforce with a high proportion of fluent English speakers, making it easier for investors to do business here. EU

INTERVIEW

T

he European Business Worldwide Organisations Network (EBOWWN) was created in 2001 to represent EU-wide business interests in Third Countries. Third Countries are countries not in the EU and EEA-EFTA (European Economic Area – European Free Trade Association). EBOWWN has over the years become the sole network that represents EU business interests in these countries. In 2011 the organisation was formerly established as an “association without lucrative purpose” or better known by its French acronym ASBL. It currently has 22 members and will soon grow to 25 countries. During the EBOWWN annual meeting in Brussels this June, members of the network elected EUMCCI’s Minna Saneri as its chairperson.

EUMCCI Review interviewed Saneri on her election and other matters concerning EBOWWN.

REPRESENTING

EU BUSINESS INTERESTS

OUTSIDE EUROPE The European Business Organisations Worldwide Network (EBOWWN) aims at enhancing trade between EU and non EU countries. Minna Saneri, the general manager of EUMCCI was elected as the chairperson for EBOWWN for 2014-2015. She talks to Sharmila Valli Narayanan about what her election means for EUMCCI and her vision for EBOWWN. Photography by V. Chanthiran

EUMCCI REVIEW (ER): Congratulations on being elected as the chairperson for EBOWWN. How do you feel as this is the first time that someone from EBO Malaysia is heading the organisation?

MINNA SANERI (MS): Thank you. I feel very proud and at the same time very humbled by being elected as the chairperson.

My election is also a recognition for Malaysia and this recognition comes from members of EBOWWN, some of whom like Brazil, Russia, India and China have huge economies!

It is a considerable responsibility to represent a worldwide network of EU chambers. I look forward to the challenge as it gives me an opportunity to see the bigger picture outside Malaysia: where does the European business stand and how can we as a business network bring EBOWWN forward so that it can enhance the trade relations between the EU and the host countries and support the EU business. I also see my election as a great opportunity to bring up Malaysia’s visibility in this region and of EBO Malaysia.

ER: You are also the general manager of EUMCCI. What does your election as chairperson say about the EUMCCI? MS: I feel my election is a great honour for all the work that EUMCCI and I have been doing. In 2012, EBO Malaysia hosted the EUMCCI REVIEW 13

INTERVIEW

second meeting of the year for all the network members. The annual general meeting is held in Brussels every year. The second meeting of the year for all network members is usually hosted by one of the network chapters. When Malaysia hosted the EBO meeting, it was a great opportunity for the network members who came from all over the world to see what the EUMCCI is doing. The members were impressed with EUMCCI’s strong relationship with the Government and its agencies. We visited many key agencies. For example, we had a briefing by Pemandu on the ETP and GTP; we met up with officials from MITI; we had a joint activity with SME Corp on Opportunities and Challenges of ASEAN Economic Community etc. The network was quite impressed with what is happening in Malaysia especially the ETP. Many members wanted to take back the ETP and GTP as an example of best practice to their own countries. We also exchanged best practices at many levels: from country to country, chamber to chamber and on a person to person level. To sum it up, the delegates who attended were impressed with the kind of outreach and advocacy work that EUMCCI does in Malaysia and its friendly relationship with important Government agencies.

ER: What role does EBOWWN play and how important is it for European businesses outside Europe?

MS: EBO’s mission is to provide a common platform for the different EBOs to share information, best practices and to facilitate the European businesses in the third markets. That is really the key. We are tackling market access issues in third countries and trying to create a level playing field for European businesses there. Besides that we also advocate best business practices and standards in third markets such as good governance, CSR etc.

We also network at the regional and global level with key stakeholders not only from the EU but also with the regional stakeholders. We also provide input on Free Trade Agreements (FTA) and FTA monitoring. This is important as it gives our members an opportunity to give their direct input into these FTA agreements.

EBO is also an important platform for European businesses to give information on what is happening in their markets.

ER: How different a role does EBO play compared to say the different 14 EUMCCI REVIEW

European chambers of commerce in a country?

MS: EBO is different from the individual European chambers of commerce in a country because EBO is a grouping of various European chambers of commerce in third countries. In each country this grouping has different names. In Malaysia it is EUMCCI while in other countries it could be Eurocham or something else. We needed to find a common name for all the chambers like us who have a similar mission which is to represent European businesses. So we decided to call ourselves EBO.

recognised by the Directorate-General for Enterprise and Industry at EU. The EBOs will also have to be recognised by the local EU Delegation; this is very important. This recognition by the EU Delegation means that the EBO is in the best position to represent the European businesses in that country.

The EBOs focus on advocacy, on running working groups, drafting position papers etc, whereas the other individual European chambers of commerce focus more on business services, facilitating on access of companies for business opportunities from their own countries.

ER: In many countries there are similar organisations that claim to be representing European chambers of commerce. So how are these different from an EBO? MS: The EBOs have to undergo a homologation process where we have to be

To put it simply, the EBOs represent the whole of EU while the different European chambers represent individual countries.

ER: Where do you intend to take EBOWWN during your tenure as chairperson?

MS: Being a chairperson does not mean it is a one person show. I am very lucky that I get to work with a committed board which consists of five people. We had our first conference call to set our priorities, the most important being to strengthen the network. The more EBOs there are, the stronger our voice. A stronger voice means it will be easier for us to lobby our position with the EU Commission, the EU Parliament etc. I want to strengthen the position of EBOWWN as the defenders and promoters of European business against our competitors from the rest of the world. I just returned from our meeting in Brussels, where we met with many stakeholders and managed to plan some concrete and exciting activities for the year, which will really raise the profile of EBOs among Brussels stakeholders as well as European business.

ER: Does EBO Malaysia have any important project going on in Malaysia?

MS: We have an important five year project called the Support for European Business for Southeast Asia Malaysia or SEBSEA-M. Similar projects are being run in the Philippines, Indonesia, Vietnam, Cambodia and soon in Laos as well. The project is aimed at attracting European SMEs to ASEAN. This project entails providing advice and opportunities for European SMEs to access

the suitability of Malaysia and other ASEAN countries for their business. There are several other projects that are parked under this major project. One of them is the EU-ASEAN Forum on Food Safety and IGEM 2014 (International Greentech and Eco Products and Exhibition and Conference Malaysia).

ER: What advantage will European businesses have if they join the Malaysian chapter of the EBO which is the EUMCCI? MS: They would have access to a worldwide business network which stretches from Asia to Latin America, Australia and now Africa. In today’s business world, information is crucial and EBOs have lots of information to share. For example, if a member wants to expand the business in Kazakhstan, they can ask us to link them with our sister organisation in that country.

Or if they need information about a certain business sector in that country, we can check with our colleagues in our worldwide network to get the most immediate and reliable information.

ER: How does EBOWWN view Asia particularly Southeast Asia?

MS: European businesses have always been interested in this part of the world. The oldest EBO is in the Philippines while the second

is in Taiwan. Nearly half of the current EBOs are based in Asia. EBOs have a strong presence in Asia. Since the announcement of AEC and its formation in 2015, ASEAN has become a clear focus area for EBOWWN. The EU is ASEAN’s third largest trading partner after China and Japan. In 2012, EU trade with ASEAN was worth €235 billion; EU is the largest source of FDI inflows to ASEAN with US$73 billion of FDI funds between 2011 and 2013. Inward investments from ASEAN to EU have doubled in recent years. By 2050 ASEAN is projected to rank as the fourth largest economy. There are projects, just like the ones I mentioned earlier, that are being set up all over ASEAN. All this just proves how important ASEAN is for EBOWWN. One of the reasons that I accepted this position as the chairperson for EBOWWN was because next year Malaysia will be the chairman of ASEAN. This is a fantastic opportunity to boost the profile of Malaysia.

EUMCCI will be organising EU-ASEAN Business Summit in connection of the ASEAN Economic ministers meeting in August. This is a major event attended by the ASEAN and EU trade ministers. This event also shows the importance of this region to the EU. ASEAN is very much on the radar of EBOWWN. EU

EUMCCI REVIEW 15

FEATURE

FIRST STEP TOWARDS

HARMONISATION OF FOOD SAFETY History was made when for the first time all the ASEAN countries came together with experts from the EU to discuss issues pertaining to food safety in the region.

Photography by V. Chanthiran

Co-funded by:

Project Managed by:

Associate Partners:

Project Partners:

EU-ASEAN Forum for Food Safety Date: 13th to 14th October 2014 Venue: Renaissance Kuala Lumpur Hotel Organised by:

EUMCCI and project partners

Platinum sponsor: DPO International

T

he Deputy Director General of Health (Medical) YBhg Datuk Dr Jeyaindran Tan Sri Sinnadurai called it “timely” and “historic.” Mr. Fermin Fautsch, the Chairman of EUMCCI described it as a “landmark project of EUMCCI and EU” while the ambassador and head of delegation of the European Union to Malaysia, H.E. Luc Vandebon said that the event was a great place for countries from ASEAN and the EU to learn from each other. They were all describing the recently concluded EU-ASEAN Forum for Food Safety.

The food trade is often described as more sensitive than any other trade in

16 EUMCCI REVIEW

the world. As Dr Jeyaindran said in his keynote speech, “Global food issues provoke strong emotions. Food tainted in one country becomes global news and news regarding food safety makes headlines worldwide. Issues need to be addressed and solutions must be found.”

The EU-ASEAN Forum for Food Safety was very timely. This was the first time that all the countries in ASEAN had come together with experts from the EU to discuss the issues of food safety in their respective countries. The two day forum attracted 20 speakers who were food industry experts in their own field and around 150 industry representatives. The main

Mr. Richard Whitehead, Mr. Robert Sanders and Mr. Shane Starling, the forum moderators.

aim of the event was ‘to nurture the EUASEAN policy dialogue on food safety.’

The broad concept of food safety was specified through four key themes which were, Shelf Life, Traceability, Cold Chain and Labeling from the Academic (science), Policy (regulatory) and Operational (technologies and solutions) perspectives.

The forum saw the experts share experiences and explore how to address the common challenges, while providing more efficient food safety control processes.

The importance of standardisation in food safety When AEC becomes a reality in 2015, it becomes more imperative that ASEAN reaches a consensus in the standardisation in food safety, more so if ASEAN wants to increase its share in the export of agrofood to the EU. One of the main complaints of food exporters from ASEAN and other developing countries is that the EU has very high standards that most of the other less developed countries find difficult to meet.

Vandebon addressed this during his speech on the opening day of the forum. He said that trust in the safety of agro-food products “is a key element of the EU-ASEAN bilateral trading relationship.

Our consumers, both in the EU and here in ASEAN, are increasingly sophisticated, knowledgeable and demanding and rightly so. They want quality food products and also want to know where and how their food has been produced. Cooperation on improving food safety is essential for such important trading partners, and this forum

Mr. Fermin Fautsch, Datuk Dr. Jeyaindran Tan Sri Sinnadurai and H.E Luc Vandebon.

provides an opportunity to enhance ties between Malaysia and the other ASEAN countries and the EU.” Vandebon reminded the audience that the forum was not about changing policies associated with the agro-food industry. “It is about learning from each other. Consumers are more conscious of what they want to eat.

This forum gives an opportunity for the EU to share and exchange ideas with ASEAN and learn from each other.”

At the press conference that followed, Vandebon pointed out the advantage that other countries get when they do meet the EU’s standards on food safety. “Once EU’s standards are achieved, a country can export its products to all of the other 28 countries in the EU.” Harmonisation in food standards can facilitate trade, said Fautsch at the press conference. “Once we define the standards, trade will be facilitated. This in turn will improve not only bilateral trade in agriculture between the EU, Malaysia and ASEAN but also further boost intra ASEAN trade,” he said. He further elaborated on what defining the standards meant: “It takes into account several factors such as determining the shelf life, traceability, cold chain management and labeling.”

Towards an ASEAN standardisation on food safety Is ASEAN headed towards standardisation on food safety? The answer is yes, but it will not happen very soon. Dr Jeyaindran acknowledged that ASEAN countries

realised the importance of having a uniform food safety standard across the region.

“We are moving towards it. We have not set a timetable as to when we can achieve it,” explained Dr Jeyaindran. “Not all the countries in ASEAN will be able to meet the standards that we will eventually set.

We will have to make allowances for these countries because their rate of development is different and their food industry is not as sophisticated as others. It is important that we need to acknowledge this difference. We need to go at it step-by-step. We are first moving towards a phase where food from these countries will meet certain minimum standards. Hopefully from there they will continue to upgrade their standards until they are of the same level as the rest.”

The EU is a model for ASEAN on how to achieve standardisation. “ASEAN wants to see which are the areas in the EU model that we can work towards collectively,” said Dr. Jeyaindran. “At the same time, we also want to ensure that components of the EU model do not become a barrier to trade in the agribusiness in the region.

We need to find a workable solution that all countries in ASEAN are happy with. This will take time but we have already taken the necessary steps.”

Other highlights from the forum were: • A greater need for the countries within ASEAN to have dialogues with each other on how to go about creating harmonisation in food safety, food labeling, registration etc. “The food supply in the EU would not be as safe as it is today if not for the exchange of information between consumers, EUMCCI REVIEW 17

FEATURE

•

•

•

regulators etc.,” explained Dr. Patrick Deboyser, Minister Counsellor, Delegation of the European Union to Thailand.

Dealing with the issues of protectionism, especially in the agricultural sector; exposing local farmers to scientifically recognised best practices in farming such as following global standards for the use of pesticides and herbicides will improve the quality of the output of food in the respective countries. This should be a gradual process and merits of local farming practices must also be recognised and respected.

Identifying the major issues that act as barriers to the integration in ASEAN in terms of food safety. Dr. Deboyser said that from his observation, the business community in ASEAN is one such obstacle. “There seems to be a lack of interest among the business community.

The agricultural business in this region is very politically motivated. I do not see the business operators pushing for more litigation in matters concerning food safety.”

Giving the consumer priority and getting them involved. Dr. Anni Mitin,

•

acting executive director, Southeast Asian Council for Food Security & Fair Trade (SEACON) said that a forum like this must involve consumer groups for them to voice their needs. She said that consumer groups are clamouring for “education and not advertisement to sell food products.” She also said that not all countries in the region have active consumer groups. “Countries like Laos, Cambodia and Myanmar have no consumer advocacy groups,” she explained. There is much work to be done in this area, she said. “At the ASEAN level, we have no ASEAN consumer council. We don’t even have a farmer’s council at the regional level when in reality farmers are the biggest community in ASEAN.” One of the key points raised at the forum was the need for ASEAN to have more inter-agency cooperation.

All the countries have their own rules and regulations. A concerted effort must be made to get all the countries to start talking to each other and work towards harmonising regulations. This forum has been a good start as it is an eye opener for the work that lies ahead for ASEAN. EU

Dr. Patrick Deboyser.

Dr. Anni Mitin.

18 EUMCCI REVIEW

M a l a y s i a ’s a g r i c u l t u r a l trade with the EU currently favours Malaysia, disclosed ambassador and head of delegation of the European Union to Malaysia, H.E. Luc Vandebon.

Agricultural trade makes up 11 per cent of all exports of Malaysia to the EU. E x p o r t s f ro m M a l a y s i a to the 28 countries in the EU in 2013 was valued at over Euro 2.1 billion (1 = RM4.19). “Exports from the EU to Malaysia was at 5.4 percent, totaling Euro 770 million,” he said. “ M a l a y s i a ’s e x p o r t i n agricultural food to the EU is growing every year.

The EU food growers want more access to Malaysian markets.”

INTERVIEW

Picture courtesy of DPO Internaional

THE FOOD INDUSTRY –

MOVING TOWARDS STANDARDISATION The first EU-ASEAN Forum on Food Safety was successfully held in October 2014. Mr. Daniel Pans, Deputy Chairman of EUMCCI and Co-Sector Leader of SEBSEAM – M Agribusiness Services talks to the EUMCCI Review about the achievement of the conference and what more needs to be done.

By Sharmila Valli Narayanan

D

aniel Pans wears many hats.

Besides being the Deputy Chairman of EUMCCI and a Co-Sector Leader of SEBSEAM-M’s Agribusiness Services, he is also the President of the Malaysian Belgium Luxembourg Business Council (MBLBC)

and the group managing director and owner of DPO International, a pan-Asian food distribution company with 20 sales, marketing and distribution locations across seven Asian countries and one of the main sponsors of the EU-ASEAN Forum on Food Safety.

Pan’s interest in the agribusiness started at a young age as his father had a fruit farm and his formative years were spent helping his father on the farm. Right after university, he established his company DPO International in 1993 and decided to base himself in Japan, one of the most demanding food markets in the world. Since 1999 he has made Malaysia his headquarters. With over 20 years of accumulated experience, Pans knows the food industry in the region inside out and his advice is highly sought after.

EUMCCI REVIEW (ER): How did the forum go?

MR. DANIEL PANS (DP) It went very well.

We had a very good response in terms of getting high-caliber speakers and panelists to join us. We managed to attract numerous key-decision makers from the region as well as policy advisors from Europe.

We got a lot of positive feedback for the forum. The approach was quite novel in its EUMCCI REVIEW 19

INTERVIEW

It was clear that many countries were facing similar issues and that there was no point for each country to come up with its own set of rules, only to run into ‘regional walls’ later.

ambition of bringing together academicians, regulators and industry operators. In the beginning, some of the participants took a bit of time to get used to the format.

However, by the end of the forum, nearly all the participants expressed the view that there is a clear need for more of this kind of dialogues, where members from the academic, enforcement agencies and the operational side of the industry could exchange views and experiences on various issues affecting food safety. “It really was an eye-opener to have all the different views in one room,” said one of the participants.

This forum made people realise that what ASEAN needs first and foremost is a dialogue among its members to sort out the various issues concerning food safety.

Many took the view that there was a great benefit at looking at the regional approach rather than for each country to look for its own national solutions. It became clear that many countries were facing similar issues and that there was no point for each country to come up with its own set of rules, only to run into ‘regional walls’ later. Collaboration and dialogue were not only useful to have but also necessary.

20 EUMCCI REVIEW

Issues concerning food safety were looked at from inside individual country’s needs, as well as from the perspective of what each country was doing trying to get exportclearance of food items to the EU. But there was no mention of the benefits that a harmonised food-legislation would bring to intra ASEAN trade. The benefits of concepts like standardised labeling, uniform HSnomenclature or compatible traceabilityplatforms would be clear and immediate for the local farmers and SME’s who want to export and market their products to neighbouring countries. Attempts to take such a joint regional approach, gathering input from across the wide spectrum of players, have been insufficient and therefore highly appreciated.

All delegates were also aware that the standardisation in food safety among ASEAN countries would not be implemented overnight as this will require, among other things, a harmonisation of customs practices and regulations in each country. This is an issue that has to be addressed at governmental level by the respective countries concerned. ASEAN can learn about standardisation from the EU experience and the EU does have plenty experience to share, which could dramatically shorten the learning and implementation curve for ASEAN. There is a lot of sensitivity involved when it comes to food and a two day forum like this cannot be expected to solve long standing problems.

Everybody agreed that there is a need to make this forum a yearly affair. It was equally clear that a bigger participation from the industry. If companies want their concerns to be heard by the policy-makers, this is the perfect platform for them to participate in the debate and help craft policies and best-practices that are both workable and efficient.

ER: Why did some of the industry players stay away from the forum this year?

DP: Since it was the first of its kind, I think some decided to watch it from the sidelines to see what possible impact on legislation a forum like this could have. That is very

understandable. Having seen the forum and the kind of enthusiastic response it has gotten from all the players, I am confident that next year more companies will want to take part because the issues discussed concerns them. The food industry knows that things have to change if there is to be standardisation at a regional level. A forum such as this is a great way to start the conversation moving towards that goal.

ER: Your company DPO International was one of the major sponsors for this conference. Why was it important for DOP International to be a big part of this conference?

DP: From our experience, we know that Malaysia is one of the most developed countries in ASEAN in terms of food legislation and food logistics. In other words, there are clear directives on the handling of food, on food labeling, on import- and export legislation etc. Malaysia still has some issues such as for example -the two sets of nomenclature between the Asean Harmonised Tariff Nomenclature (AHTN) and the Perintah Duti Kastam (Custom Duties Order); the very low export value threshold of RM 5,000 to allow for a simplified declaration and the equally low ‘de minimis value’ for tax-free low-value imports -- so there are some issues that

I am confident that next year more of the industry players will want to take part because the issues discussed concerns them.

It is very important for the consumer to know what is it that goes into the food that they are eating.

would benefit from revision. Nevertheless, Malaysia can measure itself with the very best in Asia, and being the chair of AEC (ASEAN Economic Community) next year, Malaysia has a unique opportunity to stimulate the harmonisation of these practices across the region.

Some neighboring countries are not there yet and this hampers the free-flow of trade, both intra-regional as well as with other regions in the world. Product registration requirements differ greatly from country to country and the time taken to register new products can take anywhere from three months to two years!

So you can imagine the kind of havoc this creates when stimulating regional and international trade.

For companies like ours, which bring food from all over the world into this region, as well as market and distribute food products within the region, the issue of standardisation is very important.

Clear, efficient and easy to comprehend guidelines will allow local companies and consumers to benefit from food innovation achieved overseas. In order to be able to introduce these new innovations into local markets, we as food importers need clear guidelines, especially in terms of labeling, so that beneficial claims made are easily understood, without being over or understated. What’s happening in ASEAN now is that different countries have different food-laws, which means that many producers might forego on the smaller markets, as their demand does not create enough economies of scale to allow for customized packaging or ingredients.

Daniel Pans at the EU-ASEAN Forum for Food Safety.

That is not good practice in this increasingly globalised trading world.

With the AEC becoming a reality in 2015, it is important for companies like ours to take an active part in wanting uniform regulation and harmonization in food safety for ASEAN. Once this is achieved not only will it increase ASEAN’s trade with EU but also intra ASEAN trade as well.

ER: What did this forum achieve?

DP: The very fact that it happened and got all the ASEAN countries talking about food safety issues in one forum is a big breakthrough. This conference I believe will speed up the process of a harmonised view on “needs and wants” with regards to issues of food safety within ASEAN. ER: So what next, now that the conference is over?

DP: A white paper on the forum’s findings will be released shortly. It will include recommendations on what to do next.

Since we are hoping this conference will be an annual affair, we plan to engage the public via social media to create more awareness about the whole issue of food safety.

Malaysia is one of the most developed countries in ASEAN in terms of food legislation and food logistics.

It is very important for the consumer to know what goes into the food that they are eating. We don’t have to be a food scientist to know the technicalities behind the ingredients in the food, but we deserve to have proper and accurate information on the food labels to inform us about what we are consuming. The only way to do this is to increase consumer awareness and that’s where the social media comes in. We hope this will be one more of the lasting contributions of this forum and therefore, for next year’s event, we plan to invite consumer groups as well. EU

EUMCCI REVIEW 21

But let’s go back a little more to this brand’s origins. Way back in August 1965, an enterprising young man, named Fred DeLuca, opened his first submarine sandwich shop in Bridgeport, Connecticut.

He did this mainly to support his education.

Heeding the sound advice of his friend, Dr. Peter Buck, from whom he also obtained a loan of US1,000 to start the business, they became partners in this venture that would change the landscape of the fast food industry.

By 1974, they owned and operated 16 submarine sandwich stores throughout Connecticut, USA In their effort to meet their 32-store goal in time, they started to franchise which catapulted the Subway brand into what it is today.

SUBWAY’S HERE TO STAY!

A

tourist from Europe once asked, “What is it that makes a Malaysian ‘tick’?” The answer is simple.

Malaysians love food. Regardless of race, creed or culture, we have always enjoyed the smorgasbord of cuisines from the many different cultures that make up this nation and the fusions it gives birth to.

With each generation, a few new recipes are created making the variety even greater.

With the advent of fast food chains that

started decades ago, the younger generation has found quick and easy ways to grab a meal. This trend has picked up so well that fast food joints have become the rendezvous for teenagers as well as adults.

Enter Subway A slight change in the local scene took place in 1999 with the arrival of a healthier alternative for fast food – Subway made its debut.

Subway is now the world’s largest submarine sandwich chain with more than 42,000 restaurant locations in 107 countries.

The business model was forged by DeLuca’s passion for serving his customers fresh, delicious, made-to-order sandwiches.

Subway – The Malaysian Way Ampang Point saw the opening of the first Subway store in the country in 1999. Within the next two years, 11 stores had been opened in Malaysia. But the growth was shortlived. By 2002, the number of stores rapidly dwindled back to just one store. The weather looked very gloomy for the brand in Malaysia.

In December 2004, Dato’ Vincent Choo and his wife, Datin Cynthia Cheong were appointed as Development Agents. With only one remaining store and another one opened by the couple, the couple had to struggle to make it. Due to the fast pace of closure of the stores before this, people were a bit reluctant of the products. This only made the challenge even greater. Yet they went against all odds and set their sights on careful planning and well-structured strategies pouring hard work and undivided dedication into turning around the Subway brand.

Their commitment was showing results. Six years and a lot of work later, there were 50 outlets in Malaysia. Starting virtually from scratch, this was indeed an achievement to

22 EUMCCI REVIEW

be reckoned with. Their efforts had proven that there was a fast-growing number of Malaysians with a healthy appetite for freshly made sandwiches. Capitalising on the fact that the people of this country are foodies, this husband-and-wife team were slowly but surely building the brand to an unprecedented strength and presence. The landmark 50th store is at Giant Hypermart in Shah Alam.

Ambitious and passionate, they didn’t stop or slow down. If anything, this success only inspired them to get more things done. Now they had a renewed vigour for a goal and kept working at it.

Dato’ Vincent Choo, Datin Cynthia Cheong together with the North and South team took the country by storm in 2012 when Subway Malaysia officially opened the 100th outlet in Space U8 Mall in Bukit Jelutong. Not only did they manage to make Subway outlets a common sight mainly in the Klang

Valley, but they had also propelled the brand into something that was growing in the hearts and minds of discerning customers.

And it was growing very fast.

In that same year, to mark this achievement, they were awarded The BrandLaureate – SMEs BestBrands Awards for the Best Brand in Food & Beverages category for 2011. The couple was very proud of their team and the results of their labour together.

Just when everyone thought they had hit the height of their career, they added another feather to their cap. They received the 1Malaysia iAward 2012 in iTaste category on 16th June 2012. By this time, there were more than 100 restaurants nationwide.

And as good fortune would have it, they added yet another feather to their cap when they got The BrandLaureate – SMEs Signature Awards in Food & Beverages for 2012.

In 2013, their streak of success continued with their wins with the Golden Eagle Award Malaysia 100 Excellent Entreprises, followed

by Sin Chew Business Excellence Award and a Bronze Award in the fastfood category at the Putra Brand Awards.

After two years of consecutive wins at The Brand Laureate Award, they bagged a bigger award in 2013 – SMEs Master Brand Award.

To top that, they celebrated their 150th restaurant opening at Sky Park, One City in Subang Jaya on 28th November 2013.

In that same year, Fred DeLuca made a visit to Malaysia as part of his Asian tour and congratulated the dynamic duo on their string of successes. To date, there are more than 135 Subway oulets in Klang Valley alone and a total of 180 Subway restaurants in Malaysia.

“Judging from the encouraging response that we’ve seen so far and the increase in the number of people who prefer fresh nutritious food, we’re looking to open even more outlets in various locations soon. We’re now more confident than ever of our aggressive growth to go far beyond the number of outlets available now in Malaysia,” said Dato’ Vincent Choo.

“At the rate we are going, Subway Malaysia can expect to reach 200 restaurants in 2015,” he added.

The focus this couple has shown in making their dreams come true should be the guiding lighthouse for all future entrepreneurs to achieve all that they believe in. EU EUMCCI REVIEW 23

EU COUNTRY FOCUS:

ITALY “I

t is really stimulating to be posted to Malaysia, at the heart of Southeast Asia and one of the fastest growing economies in this region,” says H.E. Mario Sammartino, Italy’s Ambassador to Malaysia.

“Italy is increasingly paying attention to this region. The Italian business community is looking at ASEAN as a strategic economic partner. During my term here I would like to significantly strengthen the relations between Italy and Malaysia not just in terms of trade and investment but also in terms of increasing the exchange between universities and research centres. This is one area that has not been explored so far and I think there is enormous potential in this area.”

Increase in trade Sammartino is pleased to note that since his arrival here in April, the trade figures between the two countries have shown a healthy growth. “In 2013 the total trade between the two countries increased by 0.6 per cent and was worth about RM7.6 billion,” he reveals. According to the latest Italian National Institute of Statistics (ISTAT) trade data for the period of January to July of 2014, Italian exports to Malaysia increased by 23.1 percent to more than RM3 billion. Italian imports from Malaysia showed a decrease of 7.0 per cent to more than RM1.6 billion.

At present the trade balance favours Italy and growing by 97.7 percent compared with the same period in 2013 and is worth about RM1.415 billion. Sammartino says this imbalance, caused by a slump in demand for goods from Malaysia, due to the pressures of the economic crisis in Italy, is likely to be temporary. He believes once the crisis is over, exports of Malaysian goods to Italy will increase.

“When asked to name Italy’s main export to Malaysia, most Malaysians think it is food,

24 EUMCCI REVIEW

H.E. Mario Sammartino

beverages and fashion,” says Sammartino.

“They will be surprised to learn that the bulk of Italian exports to Malaysia consists of machinery, tools for industry and high tech products.”

Italy’s main imports from Malaysia are computers, microelectronic devices and palm oil. “Ferrero Spa, the leading Italian manufacturer of chocolates and the makers of Nutella and Ferrero Rocher chocolates, is one of the main buyers of Malaysian palm oil,” reveals Sammartino.

Italian investment in Malaysia Italian investment in Malaysia has also increased as evidenced by the increase in the number of Italian companies that have an official presence in Malaysia. The number of Italian companies with offices in Malaysia jumped from around 70 in 2011 to over 100 companies in 2012. “Most of these companies have not just opened their sales offices here but have also set up their manufacturing plants in Malaysia,” he adds.

Another interesting development is the growing number of Italian SMEs that have invested in Malaysia. Sammartino cites

several reasons as to why Italian SMEs find Malaysia attractive. Malaysia is considered an ideal hub to enter the ASEAN market.

The country’s excellent transportation and communication system, its skilled multi ethnic and multi lingual workforce and wide usage of English especially in the Klang Valley are key factors that attract these companies to invest here. “Malaysia’s friendly business environment and legislation that protect foreign investment are also factors that Italian investors find attractive,” says Sammartino.

Good time to invest in Italy One of the most significant Malaysian investments in Italy was in 2007 when Petronas bought FL Selenia Spa, Europe’s largest independent producer of branded automotive lubricants and other functional fluids.

Sammartino says, now is a good time for Malaysians to invest in Italy. “A number of Italian SMEs that have good technology and management capabilities are facing financial problems due to the economic crisis. This is an opportunity for Malaysian

Italy’s contribution to the world: Think of Italy and what immediately comes to mind is its priceless contribution to art, music, and architecture. Italians have also contributed immensely to science, cinema and many more. Here is a list of important Italian inventions and Italians who made a mark in the world stage:

Italy at a glance: Official name Formation Capital and largest city Total area Population (2013) Official language Currency Government President Prime President Legislature Upper House Lower House

: Italian Republic (Repubblica Italiana) : Unification 17 March 1861 Republic 2 June 1946 : Rome : 301,338 km² : 60, 782, 668 : Italian : Euro : Unitary parliamentary constitutional republic : Giorgio Napolitano : Matteo Renzi : Parliament : Senate of the Republic : Chamber of Deputies

companies to identify those companies that offer advanced technologies, invest in them and build successful partnerships with those companies,” he explains.

Italian Presidency Of The Council Of The European Union (EU Council) Italy is in charge of the Presidency of the EU Council until end of December this year. According to Sammartino, Italy has three main priorities during its presidency.

He describes them as, “Europe of growth, Europe of the citizens and Europe in the world.” To put it briefly, it aims at stimulating growth in Europe by focusing on youth unemployment; improving the democratic participation of EU citizens

with the European institutions and reflecting upon the role that the EU can play in the world. “EU has to accelerate the political unification process which is essential if it is to be a world player.”

Sammartino continues, “As for Italy, our Prime Minister Matteo Renzi has made it clear that Italy is very committed to take strong measures, even the most unpopular ones, in order to bring our budget under control and to comply with the EU agreement. We are also strongly committed to the need for Europe to find the best way to promote growth. Austerity measures, although essential, cannot be the only solution to the economic problems faced

by Europe.” EU

Art and architecture • The Renaissance is closely associated with Italy. Some of the world’s best painters, sculptors and architects of the period were Italians who left behind works of art that are prized and admired until today. Some of the most famous Italian painters who lived between the 14th and 17th century were Leonardo da Vinci, Michelangelo, Raphael, Caravaggio, Botticelli, Bernini, Titian, Donatello, Canaletto and Correggio, to name a few.

• The arch was popularised by the Ancient Romans who used the technique to a wide range of structures, some of which still stand today!

Science • The first ambulance service was started in Florence in 1244.

• Artificial insemination was developed

by Lazzaro Spallanzani in 1784 at the University of Pavia.

• Alessandro Volta, an Italian physicist invented the battery in the 1800s.

• The field of cellular microbiology was pioneered by Rino Rappuoli.

• Jeans, which is so associated with the United States, was actually invented in Genoa, Italy. The denim, the material used for making jeans, became a crucial part of wardrobe for working class people in Northern Italy in the 17th century.

• Guglielmo Marconi invented the radio.

• The first working typewriter was invented by Pellegrino Turri in 1808 Cinema • The Venice Film Festival is the world’s oldest film festival. It was established in 1932.

• Italian directors such as Federico Fellini, Bernardo Bertolucci, Franco Zeffirelli, Sergio Leone and Roberto Benigni have won world-wide acclaim, numerous awards, including the Academy Awards and have left an indelible mark on cinema.

• World famous Italian actors include Marcello Mastroianni, Terence Hill (real name Mario Girotti), Franco Nero, Vittorio De Sica, Sophia Loren, Gina Lollobrigida, Monica Bellucci and Isabella Rossellini to name a few.

Note: Information sourced from Wikipedia.

EUMCCI REVIEW 25

FEATURE

INTELLECTUAL PROPERTY RIGHTS

FOR EUROPEAN BUSINESSES IN MALAYSIA What European businesses need to know about Malaysia’s intellectual property (IP) laws.

A

lthough Malaysia’s legal system is fundamentally based on the British system, many differences now exist. Malaysia’s intellectual property (IP) laws are generally in conformity with international standards, particularly with regard to the amendments made due to Malaysia’s obligations under the TradeRelated Aspects of Intellectual Property Rights (TRIPS) Agreement of the World Trade Organisation (WTO). However, legislation is still evolving and there are many IPR issues that are important to be aware of. The following aspects are by no means exhaustive but give a good idea about some of the major IP issues foreign businesses may face.

Trade marks Trade mark legislation in Malaysia is relatively advanced compared to many other Southeast Asia countries. For example, in enforcement proceedings ‘first use’ of a mark generally defeats ‘first to apply’. In other words, if a business holds a well-known mark that has not been registered in Malaysia they may still be able to take effective action against another party that has registered that mark in bad faith.

A point to watch out for though, is that separate trade mark applications are needed for different product types when registering a mark. Malaysia does not have multiple class filing meaning you must file a separate application for each type of product (class) you wish to protect with the same trade mark. Therefore, it pays to think carefully about all the types of goods and services that may be offered in the future by the business, as well as which types an infringer might consider using the trade mark with.

26 EUMCCI REVIEW

Patents In Malaysia, as in Europe, a patent is an invention that is new, involves an innovative process and is industrially applicable.

Malaysia is party to the Patent Cooperation Treaty administered by the World Intellectual Property Organisation (WIPO), which means patents applied for by a business in the EU can be extended internationally. This can simplify the international extension procedure for patents as formalities are done at a local European IP office – the application simply needs to ‘designate’ Malaysia as a target country.

Copyrights As in Europe, a creative work is protected by copyright from the moment of creation.

There is no formal requirement for the work to be registered in order for copyright to be claimed or recognised. However, a copyright owner may voluntarily register their copyright in Malaysia. Registration is advisable for foreign businesses as it can be extremely useful in enforcement proceedings – it acts as clear evidence of the ownership of a work.

Additionally, copyright can act as a back-up to other IPR. For instance, a creative trade mark image can be granted official copyright protection too.

Enforcing IPR Since 2007 Malaysia has had dedicated ‘IP courts’, however, it remains the responsibility of the rights holder to collect and prepare evidence of infringement and prove ownership for all types of IPR enforcement. It is also advisable to collect all necessary evidence before any official proceedings begin – ‘new’ evidence presented during an enforcement action may not be accepted.

For cases of counterfeiting and piracy a complaint should be made to the Enforcement Division of the Ministry of Domestic Trade, Co-operatives and Consumerism (ED). It should be noted that making complaints to the ED entails a commitment for a company or individual to assist the ED to investigate the complaint to its resolution. This may include attending court proceedings in the event that criminal prosecutions are initiated.

Stay safe, think ahead There are very few European companies who would not take the issue of intellectual property rights (IPR) seriously in their business strategies, nevertheless there are issues that are frequently overlooked, and delaying action on these can compromise a business venture and potentially ruin a brand’s reputation.

Whatever the efforts of the authorities to continue to improve the implementation and enforcement of IPR in Malaysia, timely application by European businesses for grant and registration of their IP rights is still crucial in order for companies to have a chance of defending and enforcing them.

Thus the key to a successful IP strategy is taking action far in advance!

Article courtesy of:

The ASEAN IPR SME Helpdesk is a European Union co-funded project that provides free, practical, business advice relating to ASEAN IPR to European SMEs. To learn about any aspect of intellectual property rights in Southeast Asia, visit our online portal at www.asean-iprhelpdesk.eu. EU

CHAMBER NEWS

CEO BREAKFAST SERIES WITH SCHNEIDER ELECTRIC

T

he CEO Breakfast series with Schneider Electric that was held on 13th August at the Grand Hyatt Kuala Lumpur was well 2014 attended by participants from green and energy management companies. The event was organised by the EUMCCI Environment, Energy & Green Technology (EEGT) Committee.

Carol warned Malaysian companies that they can no longer be complacent about implementing energy saving measures because the future trend points to industries conserving energy by switching to green and renewable energy. “Top companies worldwide are investing billions of dollars for research into clean, renewable energy,” informed Carol.

Carol Ng, Assistant Manager, Environmental Technology Department, TUV Rhineland Malaysia Sdn Bhd, and invited speaker for the event, gave a talk on the importance of sustainability for Malaysian companies.

She began her talk by asking a pertinent question: Why is that despite the Malaysian Government’s long standing efforts to promote sustainable energy initiatives, which it has been doing since 1979, so many Malaysian companies have not yet jumped on the sustainability bandwagon?

Conserving energy at the workplace can start with simple steps, said Carol. “The top management are the main drivers in sending the message to the staff about the importance of taking steps to reduce energy wastage.”

Carol then listed a few reasons as to why Malaysian companies were reluctant to embrace the issue of sustainability to conserve energy for their companies. Among the reasons were: •

• •

There are very few incentives from the Government to encourage the companies to adopt eco friendly policies.

Companies are unwilling to change their existing work practices.

A lack of consumer driven pressure to make companies more accountable in terms of sustainability.

“It can be very simple things like reminding employees to implement sustainable practices like saving water, electricity, not wasting paper – to name a few. Put up signs where employees can see this. This is the first step towards sustainability,” said Carol.

During the brief Q &A session that followed afterwards, participants had quite a few questions and some shared their views on the situation in Malaysia. One participant pointed out that some Government agencies do not take the issue of conservation seriously and it affected the general public. He gave the shortage of water as an example. “Spain is undergoing its worst drought in years and yet the taps in most homes are not dry. Compare that to the situation here in Malaysia where we get rainfall throughout the year and yet people had to endure water rationing exercises

and dry taps. There is a lot of water wastage going on and nothing is being done to put a stop to it.”

Marina Yong, deputy head of the EGGT in summing up the session said that Malaysian companies had no choice but to start thinking of ways to save energy. “In the next couple of years, the tariffs for electricity will go up and it will happen progressively. I urge companies that specialise in sustainable energy to be more aggressive in your marketing. Do some number crunching and show your prospective clients how much they can save even if they switch to more environmentally friendly energy saving methods.” EU

28 EUMCCI REVIEW

CHAMBER NEWS

AEROSPACE COMMITTEE’S ENGAGEMENT WITH IRDA AND SENAI AIRPORT

T

he state of Johor has been on the radar of the business community in the last couple of years, thanks to business opportunities in the Iskandar Malaysia region. To know more about the business prospects in Johor, EUMCCI Aerospace Committee organised a session titled “Conversation on Johor Business Opportunities with IRDA and Senai Airport.” The event, held on 11th July, 2014 at the IRDA (Iskandar Regional Development Authority) Satellite Office in KL Sentral saw the attendance of 13 participants from EUMCCI.

targets to grow Johor’s GDP to more than four times its current size and create up to 817,500 employment opportunities in both the services and the manufacturing sector.

The event started off with a presentation by Mr. Engku Ahmad Kamel Engku Talib, Head of Economics & Investment from IRDA. He gave an overview of Iskandar Malaysia’s development and investment updates, which were impressive. Iskandar Malaysia

Mr. Hariss Abdullah, assistant general manager, Commercial, Senai Airport, in his presentation outlined Senai Airport’s capacity, its current flight connectivity and master plan for its development up to the year 2022. Among the plans for the

He also gave an update on the investments and developments of the six key sectors such as health, education, tourism, manufacturing, logistics and oil and gas. Engku Ahmed also explained about the five flagship zones of the development plan which are Johor Bahru City Centre, Nusajaya, Western Gate Development, Eastern Gate Development and Senai Skudai.

airport are to turn it into a regional aviation academy and aviation industries hub.

The dialogue session that began after the presentations was spirited and frank where important issues such as the perception of safety in Johor and Senai Airport’s competitiveness compared to the nearby airports such as Changi Airport and KLIA were discussed. EU

AUTOMOTIVE COMMITTEE’S DIALOGUE WITH MAA

T

he EUMCCI Automotive Committee organised an industry dialogue with the Malaysian Automotive Association (MAA) on 10th July 2014 at the headquarters of the MAA in Ara Damansara, Petaling Jaya. The dialogue centred on the Automotive Market Review and Outlook 2014.

Datuk Aishah Ahmad, President of MAA opened the session by giving an overview of MAA’s profile and of the Malaysian automotive industry. She also presented forecasts on the market prospects in 2014 (for passenger and commercial vehicles), she discussed the National Automotive Policy (NAP) 2014 which was unveiled in January this year. She touched on several

30 EUMCCI REVIEW

issues that concerned the automotive industry such as the targets of the NAP 2014 towards 2020, Malaysia’s tariffs on vehicles, Malaysia’s involvement on several Free Trade Agreements, standards and environmental issues.

At the dialogue session that followed, Mr. Klaus Landhaeusser, head of the

Automotive Committee, raised a few topics that were of concern to the committee.

One of the topics discussed was of the difficulties faced in Malaysia with regards to the adoption of the Euro 4 Fuel Standard.

While everyone agreed that the adoption of the higher fuel standard is beneficial for the local automotive industry, they discussed the difficulties faced by Malaysia in the implementation of the Euro 4 Fuel Standard.

One of the difficulties is the inability of the oil companies to provide fuel of the required standard. The suggestion that oil companies use multiple fuels to smooth the transition was rejected by a representative from an oil company who said that oil companies lack storage capacity and networking of pipes to make the idea work. EU

EEGT INDUSTRY DIALOGUE WITH MIDA

T

he EUMCCI Energy, Environment and Green Technology Committee had an interesting dialogue session with the Clean Technology and Environment Management Division of the Malaysian Investment Development Authority (MIDA) on 23rd September 2014 at the EUMCCI conference room. Prior to this dialogue, the EEGT had an internal meeting where the chairperson updated the committee on the activities carried out by EEGT from July to September 2014.

The Clean Technology and Environment Management Division was established in 2013 and focuses on the promotion, development and evaluation of projects related to clean technology. During the dialogue, its director,

Mrs Zuaida Abdullah, outlined the Malaysian government’s incentives in the green technology sectors such as renewable energy (RE), energy efficiency (EE), waste recycling, green transport, building technology, electrical & electronics products and oil palm biomass. She further shared the types of renewable energy sources which are eligible for the incentives and briefly explained the application procedures.

targets as well as being a leader in the green industry in the Southeast Asia region via the latest technologies offered by the innovative EU SMEs. Hence, MIDA and the EEGT Committee will continue to work closely together to promote the clean technology and environment sector. For more information, please visit MIDA’s website: www.mida.gov.my. EU

During the discussion, it was highlighted that the Energy, Utilities, Environmental Services (EUES) sector, one of the four key sectors of the Support for European Businesses in South East Asia Market - Malaysia Component (SEBSEAM-M) Project, could potentially assist Malaysia to achieve its carbon footprint

TALENT CORP BRIEFS EDUCATION COMMITTEE ON ITS PROGRAMMES

H

ow to tackle the problem of unemployed graduates? Talent Corp has come up with several programmes to address this issue. The EUMCCI Education Committee organised a dialogue with Talent Corp to find out more about these programmes such as the Structured Internship Programme (SIP), Graduate Employability Scheme (GEMS 2.0) and Upskilling.

At the event held on 22nd July 2014 in the EUMCCI conference room, Ms. Nor Kamilah Shahidan, manager of the Malaysia Talent Development-Graduate Employability Division in Talent Corp explained the concept behind the “industry-ready-graduates funnel” of Talent Corp. This concept has Talent Corp increase the employability of local graduates via strengthening industry-academia collaborations and intervening towards industry curriculum embedment.

which may lead to employment while the university students are still studying; Upskilling provides niche high skills training/ certification/R&D to fresh graduates and those in their final year. GEMS caters to graduates who are unemployed for at least six months where these graduates are equipped with industry-relevant skills and experience upon being hired by any Malaysia-based company.

SIP enjoy double tax deduction incentive for monthly allowance and other relevant costs spent on interns annually. So far TalentCorp has 119 companies that take part in the SIP. All these programmes have yielded very good results. GEMS 2.0 for instance, has 1,100 participating companies and 100 percent on-thejob placements for 2,428 graduates in various sectors such as O&G and ICT to name a few.

Nor Kamilah explained the benefits for the companies that are enrolled into the SIP such as special access to the wider talent pool via a list of local graduating students shared by TalentCorp. Companies that become part of

Following a brief Q &A session after the presentation, the participants then had a networking session where they were each given a Graduate Employability Handbook

by TalentCorp. EU

Programmes such as SIP encourages industry-relevant internship experience

EUMCCI REVIEW 31

CHAMBER NEWS

INSIGHT INTO THE MEDICAL DEVICE ACT 2012

T

he EUMCCI Healthcare Committee had a dialogue with Mrs Idamazura Idris, principal assistant director, Medical Device Authority, Ministry of Health Malaysia (MOH) to find out how the implementation of the Medical Device Act 2012 will shape the way forward for the industry, both in Malaysia and in the international markets.

The event was held on 25th September 2014 at Werner’s Lounge in Siemens Malaysia.

The event was well attended by 22 different organisations such as Malaysia Investment Development Authority (MIDA), TalentCorp, Bayer Co., Schneider Electric, Siemens Malaysia, VAMED Engineering, VAMED Healthcare Services and a few embassies of the EU member states.

Idamazura’s presentation gave an overview of the Medical Device Authority Act of

2012 (Act 738), the Medical Device Act 2012 (Act 737) and some of the other subsidiary legislations. These legislations give power to the Ministry of Health and Medical Device Authority to regulate conformity assessment bodies (CAB), users and establishments (manufactures, approved representatives, distributors and importers). During her presentation she disclosed that in the near future, some extremely complicated medical devises will be reclassified by the MOH as Designated Medical Device (DMD) where users will be required to have a permit to operate those devices.

h t t p : / / w w w. m d b . g o v. m y / m d b / index.php?option=com_content& task=view&id=184&Itemid=50.

She also urged everyone to visit the Medical Device Authority’s website at www.mdb. gov.my for any clarifications and on information pertaining to good distribution practice for medical devices (GDPMD). EU

Idamazura ended her presentation with the introduction to the Medical Device Centralised Online Application System (M e D C@ St), a w e b-ba s e d online application system for Establishment Licensing, Medical Device Registration:

DEFENCE AND SECURITY COMMITTEE’S TALK ON MANAGING LOGISTICS OF AID PROVISION needs proper planning and trained people to manage the aid supplies and to ensure that they reach the victims at the right time and place. The public oftentimes does not understand the problems involved in getting help to the affected people.

W

henever a disaster strikes – whether it is a natural disaster or war – the natural instinct of the public is to send aid to the people in the affected regions. But sending aid is the easy part; the tough part is to ensure that the aid reach the victims. There are lots of challenges involved in getting this much needed aid to people in times of crisis. It

32 EUMCCI REVIEW

This was the underlying message of Mr. Craig McDonald’s talk titled “Getting It Through – Managing the Logistics of Aid Provision.” The talk, held on 7 th October 2014 at the EUMCCI conference room, was organised by the EUMCCI Defence and Security Committee.

McDonald, an international business development manager, is very well versed in the subject as he had been involved in complex military logistics operations in many countries.

He has supported food and fuel supply chains in Iraq, Afghanistan, Somalia, Haiti, Eastern Europe as well as the Asia Pacific regions for diverse organisations such as the UN, US Defense Logistics Agency, NATO, Australian Defence Force and New Zealand Defence Force.

McDonald also said there are lots of companies that have CSR departments and are eager to extend help to communities affected by disaster. “These companies have great programmes, but often times they don’t know how to execute them. It’s best in situations like this for them to engage with other agencies that are well versed with the logistics of sending aid to fulfill their CSR commitments. It then becomes a win-win situation for everyone,” he said. EU

LOGISTICS & TRANSPORTATION VISIT TO PKFZ

T

he EUMCCI Logistics & Transportation (Supply Chain) Committee organised a dialogue session and a site visit to the Port Klang Free Zone (PKFZ) Sdn Bhd office in Port Klang. The visit which took place on 17th July 2014, consisted of a delegation of 12 from the EUMCCI and was headed by the head of the Supply Chain, Mr. Bjarne Foldager. They were warmly received by the CEO of PKFZ, Dato' Chia Kon Leong.

During his presentation to the EUMCCI delegation, Dato' Chia gave an overview of PKFZ. Port Klang, with its strategic location in the Straits of Malacca, is the 12 th busiest port in the world and has the largest covered storage area of 2.8 million sq.ft within the Port and Free Zone area. The total covered storage area is projected to increase to 6.0 million sq. ft. by 2015/2016. Port Klang is also known for being an accredited location by the London Metal Exchange.

PKFZ is an integrated 1000-acre international cargo distribution and consolidation centre situated on Pulau Indah, Port Klang. PKFZ is developed by the Port Klang Authority. The development of PKFZ is a step towards making Port Klang a regional distribution base as well as trade and logistics centre. The industry segmentations in PKFZ include the oil & gas, automotive & hi-tech, halal, palm oil, green technology, logistics industry and several others.

There are ambitious plans for the further development of PKFZ, said Dato' Chia.

These include making Port Klang a regional distribution base as well as a trade and logistics centre. A 96,000 sq feet exhibition centre and business class hotel have also opened to further attract business to the port.

After the presentation, the delegation was taken on a tour to the Westport Tower Viewing Gallery and the port. EU

EUMCCI REVIEW 33

PROVIDING WORLD-CLASS FACILITIES AND SERVICES Port Klang Free Zone or PKFZ is poised to become of the best cargo distribution and consolidation centres in the world.

P

ort Klang Free Zone or better known by its acronym PKFZ, is fast becoming a much sought after international cargo distribution and consolidation centre. PKFZ’s vision is to “be the market leader by providing world-class facilities and services as an integrated industrial and commercial hub in Asia.”

PKFZ boasts of impressive facilities: An integrated 1,000-acre Free Commercial and Industrial Zone that provides facilities for international cargo distribution and consolidation centre. Its ideal location – it is in Port Klang, adjacent to the port -- which is ranked as the world’s 12th largest port in terms of throughout volume.

PKFZ has an excellent connection of superb highways and rail links that makes it easily connectable to major business centres of the region and the world. For example, PKFZ is 45 minutes by road to Kuala Lumpur and

the Kuala Lumpur International Airport (KLIA); Singapore and Penang are just four hours drive way while the Thai border can be reached within five hours. PKFZ’s close links to Northport and Westports, gives it access to over 500 ports all over the world.

Thus it represents an ideal investment for companies and corporations intending to set up or expand their business operations in Southeast Asia.

Over the last few years PKFZ has managed to attract many reputable anchor tenants such as Aker Solutions which has invested RM550 million and Petroleum Equipment and Supplies Sdn Bhd with RM90 million in investments.

Other companies that have invested include Baker Hughes (M) Sdn Bhd, Ann Joo Metal Sdn Bhd, Baiduri Dimensi Sdn Bhd and DRB-Hicom Auto Solutions Sdn Bhd. PKFZ has also broken into the polymer market.

PKFZ offers a mixed development comprising manufacturing activities complemented by amenities designed to facilitate the growth of regional distribution centres or international procurement centres. PKFZ incorporates features that are designed to promote the area as an entreport trade and manufacturing industries that produce export oriented goods. Commercial and manufacturing activities have been incorporated into the site. For example, PKFZ offers consolidated facilities where factories and logistics firms can be located in the same zone as to allow for easier co-ordination and smoother supply chain management.

PKFZ has worked closely with Halal Industry Development Corporation (HDC) to develop the National Halal Park (NHP). The main objective of the NHP is for it to act as an International Halal Hub or gateway for the International Procurement Centre (IPC) and Regional Distribution Centre (RDC) for halal products and services. PKFZ offers a one-stop centre and infrastructure for an array of halal industries. Halal industry players can manufacture, value-add, export and import as well as re-export their products. As the demand for halal products grows both locally and internationally, PKFZ is on the right track towards making Malaysia an internationally recognised halal hub through its NHP world class infrastructure and services.

PKFZ is fully owned by the Port Klang Authority (PKA). In recent years PKFZ has really taken off. Almost all the 640 acres of the Open Land has been taken up or been committed. It poised to be a catalyst to Port Klang’s growth.

34 EUMCCI REVIEW

With ASEAN Economic Community (AEC) poised to become a reality in 2015, PKFZ is ideally positioned to take advantage of the US $150 billion intra-ASEAN trade. PKFZ is certainly ready to take on Asia. EU

CORPORATE PARTNER

CZECH ICT MISSION TO MALAYSIA

T

hey came, they saw and they networked. A delegation of Czech ICT delegation comprising of Czech ICT businesses and government academic institutions visited Malaysia from 29th September to 1st October 2014. The aim of the visit was to establish direct business contacts with Malaysian counterparts for long term cooperation in the ICT sector. The visit, organised by the Embassy of Czech Republic in Kuala Lumpur in cooperation with the Czech ICT Alliance, was led by the ambassador of the Czech Republic in Malaysia, H.E Rudolf Hykl.

The highlight of the visit was the CzechMalaysian ICT Forum held on 30th September which was organised by the Embassy of the Czech Republic in Kuala Lumpur in cooperation with MDeC and the National ICT Association of Malaysia (PIKOM). The objective of the forum was on business, investment and education opportunities in the ICT field in both countries. The event was attended by more

than 60 representatives of the Malaysian business sector, universities and the ICT industry.

A crucial part of the Forum was the business matching session where the Czech and Malaysian companies and institutions were able to establish direct business contacts. The Czech ICT delegation was pleased with the progress they had made with this visit. EU

During the short visit, the delegates of the mission had meetings with Malaysian government agencies such as the Multimedia Development Corporation (MDeC) and the Malaysian Global Innovation and Creativity Centre (MaGIC) as well as visit the new IBM Global Delivery Center and the Multi Media University (MMU) in Cyberjaya.

CROATIA SEEKS BILATERAL OPPORTUNITIES IN MALAYSIA

T

he EUMCCI office had a VIP visitor recently. Republic of Croatia’s Assistant Minister for Trade and Internal Market, Vedran Kružić accompanied

by Brunko Zebic, Charge d’ Affaires of the Embassy of the Republic of Croatia, dropped by the EUMCCI office. They were received by EUMCCI’s general manager Ms. Minna Sanneri.

In July 2013, the Republic of Croatia became the 28th member of the European Union.

As the EU’s latest member state, Croatia is keen to seek opportunities in Malaysia.

Minna gave an overview of EUMCCI’s activities, the Malaysian economy and briefed them about a major project of the EUMCCI, the Support for European Business in South East Asia Markets Malaysia Component (SEBSEAM-M). EU

36 EUMCCI REVIEW

EPSOM COLLEGE OPENS ITS DOORS

T

he prestigious British boarding school, Epsom College in Malaysia (ECiM), opened its doors to over 150 students in September. The students are aged between three and 18. The number of students is expected to grow as new students have been arriving each week. The boarding and day school near Sepang has been set up with the

support of Tan Sri Tony Fernandes, Malaysia’s entrepreneur extraordinaire. The school boasts 50 acres of facilities for academics, sports and the arts. The students who are from Malaysia and the ASEAN region, are said to have settled quickly and happily into their new home. The Headmaster, Mr. Martin George, has been welcoming new families to

the sports, cultural and social events that have been planned to create a strong community at Epsom. The College has already established sports teams to compete locally and plans are afoot to hold a number of sports, education and arts events at Epsom this academic year. For more information visit the website www.epsomcollege.edu.my EU

INPOST LAUNCHES PARCEL LOCKERS IN MALAYSIA

I

nPost is an innovative Polish company that has taken the world by storm with its network of automatic machines that enables the dispatch and collection of parcels 24/7 with ease and from convenient locations. The network ensures the highest quality logistics for online purchases and is found in 21 countries ranging from the Middle East, to Europe and South America.

InPost parcel lockers have won numerous international awards among them World Mail Awards 2013, Retail Innovation of the Year 2013 at the Postal Technology International Awards and the Delivery Excellence Award 2014 in the UK. InPost parcel lockers are now available here in Malaysia. InPost’s key partners are Impressive Communications Sdn

Bhd – a well known and experienced IT solutions integrator -- and logistic partners such as Skynet, a leading national courier company and ISIS Logistic, which will serve e-stores and e-commerce platforms.

Petronas station’s Kedai Mesra and Tesco have been confirmed as location partners.

to increase to 350 terminals in 2016.

For more information call InPost Malaysia Sdn Bhd at 603-2298 8291. EU

The first stage of I n P o s t ’s e x p a n s i o n will see the rollout of 140 InPost Automated Parcel Terminals across the Klang Valley in 2014. This is expected

EUMCCI REVIEW 37

CORPORATE PARTNER

MYRESEARCH AT MIDA’S NETWORKING EVENT

N

ottingham MyResearch Sdn Bhd is a subsidiary of the University of Nottingham Malaysia Campus.

MyResearch provides Research and Development (R&D) service, which enables companies to invest in R&D in a tax efficient way. With its connections to the University of Nottingham Malaysia Campus, MyResearch is able to call upon expertise from across campuses in Malaysia, China and the United Kingdom.

The event witnessed the signing ceremony of a contract research agreement between Nottingham MyResearch Sdn Bhd, Maju Antara Sdn Bhd and MS Inteq Engineering Sdn Bhd on rice mill related R&D. This was followed by the signing of two MOUs.

The event was attended by almost 150 people, representing over 30 companies. It is hoped that the networking opportunities that arose will enable companies to carry out R&D that would not otherwise be possible. For more information visit the website at www.myresearch.com.my or email: info@myresearch.com.my EU

MyResearch recently attended a networking event that was hosted by the Malaysian Investment Development Authority (MIDA). At the event, the CEO of MyResearch, Professor Graham Kendall outlined the services offered by MyResearch, including the capabilities of the university.

SHEARN DELAMORE WINS AWARDS

S

hearn Delamore & Co, one of the leading law firms in Malaysia has been in the country for over 100 years. It has won some prestigious awards this year. At the 10th Annual Asian Legal Business (ALB) SE Asia Law Awards, the Firm won the SE Asia Tax and Trusts Law Firm of the Year Award. The Firm also swept

three individual awards, namely SE Asia M&A Deal of the Year, IPP Advisors Pte Ltd Award Singapore and SE Asia Deal of the Year.

It also won the M&A Deal of the Year for the Fraser & Neave contested takeover at the International Financial Law

Review (IFLR) Asia Awards 2014. The Firm had acted as Malaysian counsel to TCC Assets Limited together with WongPartnership LLP. IFLR ranks law firms based on transactional evidence and market feedback and the IFLR Asia Awards recognises the region’s most innovative deals, and the firms that worked on them.

The 2014 edition of the IFLR 1000 Guide to the World’s Leading Financial Law Firms, notes that “With an over 100-year history, this full-service firm has a long-standing reputation for its corporate and financial practices, as well as being a powerhouse for dispute and advisory work”.

International Financial Law Review (IFLR) Asia Awards 2014

38 EUMCCI REVIEW

For more information www.shearndelamore.com EU SE Asia Tax and Trusts Law Firm of the Year Award

visit

NEW CORPORATE PARTNERS

BASF (Malaysia) Sdn Bhd

BASF is the world’s leading chemical company: Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.

Person in Charge: Mr. Daniel Loh, Managing Director, General Manager Asia Pacific Address: No.2, Jalan Astaka U8/87, Seksyen U8, Bukit Jelutong, 40150 Shah Alam, Selangor Tel: +603-5628 3888 Fax: +603-5628 3758 Email: hani.zainal@basf.com Website: www.basf.com

Pernod Ricard Malaysia Sdn Bhd Importer and Distributor of Spirits and Wines

Person in Charge: Mr. Terence Ong, Managing Director Address: Suite 13A01, Menara PJ, Amcorp Trade Centre, No.18, Jalan Persiaran Barat, 46050 Petaling Jaya Tel: +603-7953 8800 Fax: +603-7954 6841 Email: Virginia.lee@pernod-ricard.com

DPO International Sdn Bhd

DPO International is a leading specialized food distribution company. Headquartered in Kuala Lumpur, Malaysia, we operate 20 sales offices and 25 warehouses in Asia.

With an established and solid foothold cross the region, we believe in “bringing global food innovations into local Asian markets”.

Person in Charge: Mr. Daniel Pans, Group Managing Director Address: DPO House, B2-G, Lorong Selangor, Pusat Komersial Gaya, Pusat Bandar Melawati, 53100 Kuala Lumpur Tel: +603-4108 1282 Fax: +603-4108 1262 Email: daniel.p@dpointernational.com Website: dpointernational.com

SANOFI-Aventis (Malaysia) Sdn Bhd

Sanofi, an integrated global healthcare leader, discovers, develops and distributes therapeutic solutions focused on patients’ needs.

Person in Charge: Ms. Leah Goodman, General Manager Address: Level 18-1, Tower B, Plaza 33, No.1, Jalan Kemajuan, Seksyen 13, 46100 Petaling Jaya.

Tel: +603-7651 0800 Fax: +603-7651 0801 Email: leah.goodman@sanofi.com Website: sanofi.com.my

Michael Page International Sdn Bhd

Michael Page is a worldwide leader in specialist recruitment with 155 offices in 36 countries. Our approach in recruitment always starts with the unrivalled knowledge of the market landscape of human capital in Malaysia.

Person in Charge: Mr. Paul Cooper, Managing Director Address: Level 27, Integra Tower, The Intermark 348 Jalan Tun Razak, 50400 Kuala Lumpur Tel: +603-2302 4070 Email: kristofferpaludan@michaelpage. com.my Website: michaelpage.com.my

TOTAL Oil Malaysia Oil & Gas

Person in Charge: Mr. Antonia Miranda, Managing Director Address: Level 2, Wisma Kemajuan, 2 Jalan 19/1B, 46300 Petaling Jaya, Selangor.

Tel: +603-7711 2200 Fax: +603-7711 2005 Email: hood-liang.ee@total.com Website: www.total.com.my

EUMCCI REVIEW 39

CALENDAR OF EVENTS Here is the line up of recent and upcoming events organised or supported by EUMCCI. The dates and venues for the upcoming events have not been finalized. Please refer to the EUMCCI website – www.eumcci.com – for the latest updates on the events.

Recent Events: The EU-ASEAN Forum on Food Safety Date: 13th to 14th October 2014 Time: 9.00am to 5.00pm Venue: Renaissance Kuala Lumpur Hotel IGEM 2014 Date: 16th to 19th October 2014 Time: 10.30am to 6.00pm Venue: Kuala Lumpur Convention Centre Toward ASEAN Economic Community & Beyond Date: 28th November 2014 Time: 9.00am to 2.00pm Venue: Sri Panglima 2, Royale Chulan Kuala Lumpur Kuala Lumpur Convention Centre and EUMCCI Outreach Programme Date: 28th November 2014 Time: 9.30am to 2.00pm Venue: Kuala Lumpur Convention Centre

Upcoming Events: EUMCCI Members’ Appreciation Evening Date: 3rd December 2014 Time: 6.00pm to 8.00pm Venue: Kuala Lumpur Convention Centre Stakeholders Engagement Event Date: 4th December 2014 Time: 4.00pm to 7.00pm Venue: Capri by Fraser, Bangsar South

January 2015

EU Ambassador’s Lecture Series Date: TBC Venue: TBC Breakfast Dialogue with Director General, Ministry of Transport Date: TBC Venue: TBC VIP Luncheon with Datuk Seri Wahid Omar, Minister in the Prime Minister’s Office Date: TBC Venue: TBC

Note: All events are correct at the time of printing. The events might be subject to change due to unforeseen circumstances. Please check EUMCCI website at www.eumcci.com for the latest updates on events or direct inquiries to events@eumcci.com or eumcci@eumcci.com or call +603 - 2162 6298

40 EUMCCI REVIEW

EDINBURGH SCOTLAND

Commencing 28th May 2014.

From the moment you step on board Qatar Airways you will be delighted with our spacious cabins and comfortable seats. Indulge yourself with over 1,000 in-flight entertainment options, and tantalizing menu choices. Our award winning cabin crew will care for you throughout your flight.

Now that we are a member of the oneworld alliance you can also travel seamlessly to over 800 destinations worldwide, access over 550 airport lounges and benefit from a generous and well-established frequent flyer program.

To book your ticket please visit qatarairways.com/my or contact your preferred travel agent.

World’s 5-star airline.