EUMCCI Review - October 2010 by EUMCCI

EUMCCI Review

Volume VI No. 4 October 2010

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

EUMCCI Organises EU Presentation at

IGEM 2010

KDN PP 14083/07/2011(029992)

E UMCCI R EVIEW October 2010

Volume VI No.4

www.eumcci.com

Contents

Published by EU-Malaysia Chamber of Commerce & Industry (EUMCCI) Office Address Suite 3.03, Menara Atlan (Naluri) 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel: +603-2162 6298 Fax: +603-2162 6198 E-mail: eumcci@eumcci.com Website: www.eumcci.com EUMCCI Board Chairman David Jones Honourary Treasurer Dato’ Robert Teo Directors Austria Franz Schröder Cyprus Wan Azuar Dato Wan Daud Czech Republic Milan Vagner Denmark Kim Hansen France David Attar Finland Jari Silventoinen Germany Alexander Stedtfeld Greece Stellios Plainiotis Ireland Ron Anderson Italy Alberto Ciaramicoli Malaysia Caesar Loong Malta Paul Vincent Galea The Netherlands Marco Winter Poland Czeslaw Klimczak Slovak Republic H.E. Milan Lajciak Spain Luis Lopez Sweden Hans Bjornered United Kingdom Jon Addis Editorial Committee Minna Saneri - Editor Karen van Dalsem Stefanie Braukmann Contributing Editors Andrew McFarlane Paul Kelleher Timmy Quasem 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 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. Subscription Service Subscriptions from non-members are also accepted at RM80.00 (€28.00 28.00 abroad) for 4 issues. Individual copies may be purchased at RM25.00 (€8.00 ( 8.00 abroad).

EDITORIAL

CHAMBER@WORK The Malaysian Competition Act 2010

Delivering Talent to the Logistics Industry EUMCCI Meets with the Minister of Finance Strategic Trade Act (STA) 2010

EUROPE NEWS

11 FEATURE IGEM 2010, a Green Success ! The International Greentech & Eco-Products Exhibition & Conference Malaysia

EU Climate Change Priorities

21 EVENTS In Conversation with Tan Sri Dr Koh Tsu Koon

Broadband as an Enabler for Growth Recruiting and Beyond Business Opportunities in Regional Establishments in Malaysia Breakfast talk with Datuk Badlisham Ghazali

Counter-Terrorism and Democracy

28 MEMBERS’ CORNER

30 MALAYSIA NEWS

Printed by Anekaprint & Packaging Sdn Bhd No. 6 & 8, Jalan Asa 8, Taman Asa Jaya 43000 Kajang, Selangor

32 NEW MEMBERS

IGEM 2010 – Green is the Colour of .... Success

Editorial

After months of preparation and hard work from the EUMCCI and its partners, we are hugely proud of the EU contribution to the inaugural International Eco Products and Green Technology Exhibition IGEM 2010. The event proved to be a huge success for all involved and attracted a lot of interest from the Malaysian public also. I think IGEM has done a terrific job in raising awareness of green issues in Malaysia and it is a credit to the Ministry of Energy, Green Technology and Water and their fellow organisers for making it a truly unique and special event. It really gives us confirmation that Malaysia is determined to go green and achieve the ambitious targets set by the Honorable Prime Minister. Malaysia will continue to be a very attractive investment location for many EU companies. The launch of FTA negotiations will only further strengthen the ties. Our EU presence at IGEM 2010 is part of a close working relationship we have developed together with the EU Delegation, the Member States and with The Hon. Dato’ Sri Peter Chin Fah Kui and the Ministry of Energy, Green Technology and Water. We have engaged in an open dialogue with the Ministry and we hope this mutually beneficial partnership will continue. We brought European experts in the field of green technology to Putrajaya in June to exchange knowhow and give advice on incentives for the field of green tech. In IGEM we concentrated on business to business activities. From a European perspective, we were delighted to have 35 exhibitors from the European Union at the exhibition. SMEs from Italy, Portugal, Germany, France, the Netherlands, Austria, Denmark and Greece were joined by giants such as Siemens and Q Cells from Germany, Alstom from France and Philips from the Netherlands. The eclectic mix of companies, nations, industries and even the Trade and Promotion Section of the Polish embassy ensured that whatever your interest in the Green technology field, the EU pavilion was able to cater for you.

“It really gives us confirmation that Malaysia is determined to go green and achieve the ambitious targets set by the Honorable Prime Minister”

The European companies generated much excitement among the public and even among the VIPs that dropped by over the four day exhibition. We were delighted to welcome YAB Dato’ Sri Mohd. Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia; His Majesty SPB Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin, King of Malaysia; and of course our close partner The Hon. Dato’ Sri Peter Chin Fah Kui, Minister of Energy, Green Technology and Water of Malaysia. Other distinguished visitors to our EU pavilion included The Hon. Senator Dato’ Sri Shahrizat Abdul Jalil, Minister of Women, Family and Community Development of Malaysia and even more royalty in the form of His Royal Highness Yang diPertuan Besar Negeri Sembilan Darul Khusus, Tuanku Muhriz ibni Almarhum Tuanku Munawir. The EU pavilions were also a stopping point for Mr. Liu Qui, Vice Director of China’s National Energy Administration and Pehin Dato Mohammad Yasmin Umar, the Minister of Energy of Brunei. IGEM 2010 was a huge success for the EU companies and we have already set the wheels in motion for next year’s event. With over 1 billion in proposed business deals and over 1000 business meetings this year, IGEM 2011 is expected to be bigger, better and even more of a success; and the EUMCCI will be there again. We look forward to welcoming even more European companies to Malaysian shores in the second week of September 2011. I would like to congratulate all involved in IGEM 2010, in particular the Ministry, the EU Delegation, the EU Member States and the European companies. It has been a pleasure for the EUMCCI to be your partners in this event and we look forward to seeing you all there again next year. I also want to take the opportunity to thank the EUMCCI-MGCC team for a great job done! Warmest Regards, Minna Saneri

October

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The Malaysian Competition Act 2010 EUMCCI’s IPR committee organised a breakfast talk at the solicitor’s office of Shearn Delamore and Co. on 3rd August on the impact of the new Competition Act 2010 and how businesses will be conducted under this new legislation in Malaysia.

“

A balanced competition law should promote efficiency and welfare Mr Wong Sai Fong

The deputy head of IPR committee Mr Chew Phye Keat (Raja Darryl & Loh) was the speaker, introduced by moderator Mr Wong Sai Fong, Managing Partner, Shearn Delamore & Co. This meeting was certainly not a mere explanation of dry and bewildering legal norms, moreover it was an interactive discussion between legal experts and businessmen with the specific aim of clarifying future competition issues which might affect business in Malaysia. Everyone knows the adage: ‘Competition is good for Business’. All the more surprising then, is the fact that Malaysia does not yet have a Competition Law. Since independence, aspects of this legal field have been regulated primarily at the sectoral level, whereby regulations have been inefficient and incomplete rather than guided. Competition policy is basically about making sure that companies compete with each other on an equal footing – on the basis of their products and prices – with no unfair advantages. The issue is not only having no adequate competition law. There is also a lack of formal institutions which deal with these legal issues. This legal uncertainty is about to diminish through the new Competition Act 2010 which will come into force in January 2012. What kind of impact does the introduction of a new legal standard have to those who come to Malaysia to develop their businesses? The new law is designed to establish a robust and comprehensive competition law regime, procedures, and an enforcement authority (competition enforcement authority). The Purpose of the law will be to promote economic development by promoting and protecting the

process of competition, with the ultimate goal of protecting consumers. The new law will be applicable to all commercial activities except commercial activities regulated under the Communications and Multimedia Act 1998, and the Energy Commission Act 2001. Part 1 of the Competition act gives definitions and explanations for certain terms like agreement, dominant position, market, goods etc. Although these definitions will not answer all questions concerning these terms, it aims to give a deeper understanding about Competition law in general and about the interpretation of keywords mentioned above. “Of course,” Mr Chew Phye Keat reminded the audience, “What’s good for Europe is not necessarily good for Malaysia”. Even though the European legislation is well established in the area of competition law, Malaysia has its own unique way of conducting business. However, at the end of the day it is expected that the EU-Guidelines1 will have a great impact in terms of interpretation of the law. The concept of competition law is already fully developed in Europe and hence Malaysia will use Europe’s longstanding experience, and especially the UK’s case law for interpretation of cases, as Malaysia’s current law system is mainly based on the common law system. Part 2, Sub-Chapter 2 comprises the main practices that competition law is concerned with. Essentially it covers: • Anti-competitive agreements • The abuse of a dominant market position

1 http://ec.europa.eu/competition/index_en.html

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However, two different types of agreements can be identified: · Horizontal Agreement “Means an agreement between enterprises, each of which operates at the same level in the production or distribution chain”; (e.g.: Price fixing Market sharing; Bid rigging; Control of production or market access; Collusion) · Vertical Agreement “Means an agreement between enterprises each of which operates at a different level in the production or distribution chain”; (e.g.: supply; distribution; licensing; franchise; agency) Secondly, Mr Chew Phye Keat continues with an explanation about ‘Abuse of dominant position’. ‘Dominant position’ means a situation in which one or more enterprises possess such significant power in a market to adjust prices or outputs or trading terms, without effective constraint from competitors or potential competitors; (e.g. Unfair purchase or selling price or other unfair trading condition on any supplier or customer, Limit or control production, markets, technical development or investment to the prejudice of consumers; Price discrimination ; Tied selling; Predatory pricing; Refusals to supply; Exclusive dealing agreements. In conclusion Mr Chew Phye Keat succeeded in bringing light to the new competition law Malaysia will soon face. It remains to be seen how intensive European competition regulations will influence Malaysia’s legislation – but one thing is for sure, it will not be a minor influence. EUMCCI would like to thank Shearn Delamore & Co. for the venue and special thanks goes to the head of the EUMCCI – IPR committee Ms Wong Jin Nee, the deputy head and speaker Mr Chew Phye Keat. by T. Quasem

October

C@W

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(From l. to r. in their order of appearance) Ho Chin Kun - One World Realty Sdn Bhd, Jeffrey Chen - Air Products Malaysia Sdn Bhd, Chew Phye Keat - Raja Darryl & Lo (speaker)

There are several exemptions and exclusions within both legal fields. Mr Chew Phye Keat gave good examples to underline the meaning of ‘abusing dominant position’ and ‘Anti-Competitive Agreements’. Firstly, he examined “Anti Competitive Agreements”. It has been very important for him to make clear that the formal legal meaning of ‘agreement’ is not applicable here. To put it in other words, an agreement can be achieved simply by ‘eye-contact and nod’.

C@W

Delivering Talent to the Logistics Industry EUMCCI hosted Mr. Joerg Friedel, Managing Director of UTi Logistics, and other interested parties from the logistics sector on the 23rd September to share his experience thus far with his apprenticeship program within UTi (as featured earlier in April 2010’s EUMCCI Review). The apprenticeship program sought to take five apprentices from Sabah and prepare them with the necessary skills for a career in the logistics industry – and at the same time add a few highly talented individuals to an industry where talent and skill is hard to find. During his presentation, Mr. Friedel spoke openly as he shared his experience with the five apprentices; he described how, as the apprentices rotate through different parts of the business, some clearly find certain areas more interesting than others and

come equipped with the necessary problemsolving skills. As a result, the benefits of training these five young people (to begin with) specifically to the needs of the logistics industry seem to have been obvious to all present, and with GMI and EUMCCI’s support and cooperation, the possible involvement of more industry partners with this program can only lead to further significant benefits for the industry as a whole. by A. McFarlane

EUMCCI meets with the Minister of Finance On 2nd November EUMCCI led a small group of members to a closed door meeting with Dato’ Seri Ahmad Husni Mohamad Hanadzlah, the Minister of Finance. The Minister wanted to gather feedback from foreign investors on issues hindering their investments and how Malaysia could regain its attractiveness as FDI destination. One of the main topics discussed was brain drain, as Malaysia is losing the best talents to Singapore and other regional hubs. This results in companies needing to look for talents abroad, while they can’t find the right mixture in Malaysia. The challenge of Human Capital needs to be addressed soonest .

One of the apprentices, with an UTi employee

how, for example, not only the apprentices but also the existing staff have needed to be mentored so that they understand that the apprentices are there to be of help to them and learn from them, but not to replace them. Following his presentation, Mr. Friedel fielded a large number of questions from those present – many regarding the pure practicality of implementing such a program. One of the points Mr. Friedel brought up, which was generally shared by his other industry colleagues was that, quite simply, logistics is a problem-solving industry – and that too many of today’s graduates don’t

October

Strategic Trade Act (STA) 2010 EUMCCI attended the briefing on the strategic trade act on 12th October 2010. On the 6th May the STA was passed by the parliament. Basically this bill should improve Malaysia’s Export Control law. In 2004, the United Nations (UN) Security Council passed a resolution which requested member countries to establish an export control system for the purpose of non-proliferation of weapons of mass destruction. In other words, member states were requested to control exports of strategic items which may be used for terrorist activities. 6 years later the Parliament passes the Strategic Trade Bill

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2010 that gives authorities power to act against those involved in the design, development and production of weapons of mass destruction. This should be a sign to those who have the perception that Malaysia is a dumping ground for weapons The Strategic Trade Bill 2010 had a provision on the control of exports, transferring, transiting and brokering of strategic goods, including arms and related materials, and other activities that would or could facilitate the designing, development and production of WMD and its delivery, and other things related to them. The Purpose of the act is to provide control over the export of strategic items, in particular dual use goods, which can be used for the proliferation of weapons of mass destruction. The STA also intended to strengthen the ability to curb the export and transhipment of WMD related materials. WMD refers to biological weapons, biological agents, chemical weapons, toxins, and nuclear weapons while strategic goods refer to goods and technology that could be used to produce arms and related materials. MiTi is facing a difficult challenge by categorising materials which are considered as “dual use goods”. The Act does not specifically identify the goods and technology which are considered strategic, though this term may span the EU list. The Act also requires permitting for shipments of non-strategic or “unlisted” items to restricted end-users, and denies shipments to prohibited end users. Other provisions of the legislation call for extraterritorial enforcement, imposition of substantial penalties for non-compliance, record-keeping requirements, and potential for exemptions. The Act’s ultimate goal is to provide the international trading community with the assurance that Malaysia is a desirable trading partner, whose open system has a sound mechanism to protect against security compromises. For further information, please contact: Strategic Trade Act Secretariat, MITI, admin. sts@miti.gov.my

EU Bio-Logo Compulsory

While the former logo was voluntary, the new logo is compulsory and alongside it, the code number of the control body and the place where the agricultural raw materials were farmed must also be displayed. In more practical terms, goods carrying the bio-logo guarantee compliance with EU organic farming regulations and are assured to have not less than 95% of their contents organically-produced. In the mean time, existing national or regional logos may still be used, where applicable, although it is expected that during the transition period, the EU’s biologo will itself become recognised as the main standard by consumers. The logo remains entirely voluntary for organic produce imported from third countries (i.e. outside the EU), however as it becomes more widely known, it is expected that it will add to consumer confidence when purchasing organic products. Source: ec.europa.eu/agriculture/organic

Malaysia-Ireland trade In 2009 two-way merchandise trade between Malaysia and Ireland amounted to €1.1 billion, a decrease on the previous year’s record due to the global recession. Data processing machines, telecommunications and electrical machinery account for almost 90% of total two-way merchandise trade. This is not surprising, as both Ireland and Malaysia’s merchandise export sectors are dominated by multi-national corporations, using Ireland as a gateway to Europe and Malaysia as a gateway to the Asian markets. Ireland

Imports from Malaysia

Exports to Malaysia

€ m.

285.40

836.00

Irish Minister for Health, Mary Harney (mid), Irish Ambassador to Malaysia -Eugene Hutchinson (2nd right), with officials of Star Publications and IOTI’s local representative.

The trade balance is very much in Ireland’s favour and it should be noted that the figures above do not reflect the trade in services, such as education and consultancy, which is also in Ireland’s favour. Aside from assisting individual Irish exporting companies, Enterprise Ireland, the Irish Government’s Trade and Technology Agency, has a number of annual programmes of activity, designed to strengthen the already close economic ties. These activities are in education services, telecommunications, software and food and beverages.

TEBA’s European-based liaison office, the Europe-Asia Cooperation Agency (EACA), was set up in 2004 to create business opportunities, promote trade and implement industrial cooperation projects for European and Asian companies. www.eaca.asia

Change of Presidency in MGCC On 30 June 2010, Mr. Andreas Prinz, Managing Director of Volkswagen Group Malaysia Sdn Bhd was introduced as president of Malaysian-German Chamber of Commerce and Industry (MGCC) for the term 2010-2011, replacing Mr. P Kandiah, Principal and CEO of renowned intellectual property firm KASS International Sdn Bhd. Mr. P Kandiah now holds the title of VicePresident.

Within Ireland, Enterprise Ireland is involved in many aspects of the growth and development of Irish companies and in the overseas arena. Enterprise Ireland is responsible for promoting the development of economic links with Ireland generally and with assisting Irish companies to grow their exports in the Malaysian market. Source: Enterprise Ireland Mr P Kandiah (l.) changing guards with (r.) Mr Andreas Prinz

New European Business Association in Thailand EU-Malaysian businesses interested in Thailand can now collaborate with the Thai European Business Association (TEBA). Just like EUMCCI, TEBA is an independent, selffinanced entity, set-up and managed by the European business community and local companies interested in the vast EU market. TEBA, the affiliate Partner for Thailand, will be receiving support on information, business, joint-research opportunities, and much more in Europe through the European Commission’s European Enterprise Network (EEN) (www.enterprise-europe-network.ec. europa.eu) The Association is part of the worldwide European Business Organization (EBO)

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In attendance were also two prominent officials representing the International business community who shared their views on various economic and trade topics. President of the Malaysian-International Chamber of Commerce and Industry (MICCI), Mr. Charles Ireland presented the keynote address at the AGM. At the luncheon talk, Head of Delegation of the European Union to Malaysia, H.E. Vincent Piket spoke on issues relating to the EUs road to recovery following the financial crisis, on market access and FTA talks with the Malaysian government, and on the promotion of green tech policies and technology in Malaysia. During the AGM, members were presented with a detailed report of the Chamber’s activities during the past year, as well as a report on the audited accounts of the Chamber.

October

Europe News

All pre-packed organic produce within the European Union now has to begin carrying the EU’s new bio-logo before 2012. The 1st July 2010 saw the beginning of the transition period, which will see it becoming compulsory to carry the logo for all organic produce. The new logo, designed by a German design student in a competition which saw 3,422 students take part, depicts a leaf formed from the stars of the European flag and has been titled the ‘Euro Leaf’ and also represents the second time the EU has brought out a logo specifically for organic goods.

network (link to www.ebonetwork.eu), the unified platform for all European business organizations established in non-EU countries with the support of the European Commission.

Europe News

The European Union Film Festival The European Union Film Festival (EUFF2010) in Malaysia is an annual cultural event organized this year by the Embassy of Belgium, in its capacity as chair of the European Union, together with Golden Screen Cinemas and the Delegation of the European Union in Kuala Lumpur. During the 11th edition of the EU Film Festival 18 movies from 15 different European Union member states will be screened from the 11th until the 21st of November in GSC Pavillion , GSC Mid-Valley Megamall and GSC 1 Utama. The full program and more information on each movie can soon be found on www.euff.com.my

MDBC Launches Penang Chapter The Malaysian Dutch Business Council (MBDC) launched a branch in Penang this summer. The launch was kicked off with a welcome speech by MDBC Executive Director Marco Winter on behalf of Chairman Dato’ Jaffar Indot. Marco Winter: “For the benefit of all parties involved, such as Dutch-related entrepreneurs in the Northern region, the MDBC, the Netherlands Embassy and the Penang authorities, the time is right to bring all together and establish a better cooperation towards a more conducive business environment.”

Penang Deputy Chief Minister YB Prof Ramasamy, Marco Winter, John Benoist and Jan Soer.

Penang Deputy Chief Minister, Prof. Dr. Ramasamy said that he hoped the positive relationship between Penang and the Netherlands would continue to grow and called for continued skills and technology transfers between the two. Jan Soer, Deputy Head of Mission, Embassy of the Kingdom of the Netherlands, praised the “longstanding and excellent relations that the Netherlands has with Penang” and stated

October

his delight that “MDBC will now have a Chapter here, which will serve to enhance trade ties.” As the MDBC Penang Representative, John Benoist, formerly Managing Director of ASM Wafer Process Equipment Singapore, will play a coordinating role on behalf of the MDBC and the Netherlands Embassy. Working with the Netherlands Embassy, Penang will also continue to get assistance through shared Dutch expertise, especially in the areas of water management, heritage conservation and environmental preservation.

MYEULINK: Bringing Malaysia and the EU closer together through higher education A three-year project based in Malaysia; MYEULINK, aims to increase awareness and understanding of the EU and its key policies among universities, government officials, the private sector, the media and other interest groups in Malaysia.

New Set-Up at BMCC Events at the British Malaysian Chamber of Commerce (BMCC) have moved ahead in recent weeks with the appointment of Jon Addis as the new Chairman, some new faces at the BMCC Executive Office and a new office location.

Dr Simona Guerra of University of Nottingham UK explaining topics to International Relations students at UM during the UM EU ACTIVE WEEK

Jon Addis, new Chairman of BMCC

Jon, who is currently Executive Director & Deputy CEO of HSBC Bank Malaysia Berhad, has served as a BMCC Board Director for the last two years. Speaking at a recent BMCC event, he said, “BMCC is very much a Chamber of Strengths. The BMCC brand is very strong and the diverse set of skills resident with the Board of Directors is a unique asset,” adding, “We have upped our game on a number fronts including a dynamic new team at the Executive Office and a new-look events programme.” Baljeet Kaur has joined as Operations Manager and Winnie Ng as Customer Services Manager, both working alongside Business Development Director Molly Jagpal. The new office is located just one floor down from the previous premises at Level 4, East Block, Wisma Selangor Dredging, 142B Jalan Ampang. Phone, fax and email contacts remain: Tel +603 2163 1784, Fax: +603 2163 1786 E-mail: britcham@bmcc. org.my

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It is the first major EU-funded activity to be co-ordinated at the University of Nottingham Malaysia Campus. Professor Sayed Azam-Ali, Vice-Provost (Research & Internationalisation) at University of Nottingham Malaysia Campus (UNMC), and MYEULINK Project Co-ordinator, said: “This initiative is a very positive step because it brings together two key sectors, higher education and business, to identify common priorities between the EU and Malaysia. Linkages developed through MYEULINK will be ideally placed to apply for research funding through the EU Framework and other programmes.” MYEULINK will also contribute to the Government of Malaysia’s vision of making the country a tertiary education hub for the region, and to the internationalisation of its higher education sector. The MYEULINK project brings together a number of institutions, as well as UNMC: the University of Malaya, Universiti Putra Malaysia, University Malaysia Sabah, University of Nottingham in the UK and Maastricht University in the Netherlands. Among other activities, participating institutions will deliver and develop an online repository of EU-related teaching in Business, Economics, History, Politics, Law and Media. A Europe/Malaysia Higher Education Fair, linking HE institutions in Malaysia with counterparts in Europe, is planned for early 2011.

Winning Across Global Markets: How Nokia Creates Strategic Advantage in a Fast Changing World

Dr Dan Steinbock and HE Tapio Saarela

mobile telecommunications industry. So why (and with figures like 432 million sales, how?) are we listening to tales of Nokia’s decline in global terms? Are we right to believe that Apple and Nokia’s other competitors have usurped the once untouchable Finnish giant? It is simple says Dr Dan Steinbock, author of Winning Across Global Markets: How Nokia Creates Strategic Advantage in a Fast Changing World, Nokia is not the big player in the US market right now. If you were to believe the hype, the battle for top spot in mobile supremacy is between Apple and RIM (creators of BlackBerry). According the Steinbock, “the world media if focused on the US and Apple draws 59% of its revenue from the American market.” Nokia on the other hand draws on only 4% of its revenue from the US. The other 96% is made up of 37% from Europe, 10% from Latin America, 14% from the Middle East and a considerable 35% from China and Asia Pacific. Nokia entered, and has remained strong in these developing markets by customizing

Dr Steinbock examines Nokia’s more global strategy compared to their main competitors more US centric-strategy. Although Nokia’s market share in the US in now below RIM, Apple, Samsung and LG, there is an understanding among the Nokia elite that the US still is very much integral to Nokia’s long term plans. The US matters to Nokia as 40% of its shares are held by US investors, with another 40% in other developed nations. This is just part of the reason that Nokia has recently appointed its first nonFinnish CEO, Stephen Elop. Elop, a former president of Microsoft’s business division has intimated that Nokia is poised for change. Once the darling of the Wall Street investors, the Finnish based company which outfought Motorola in the 1990s to become the market leader in mobile telecommunications, is now at the centre of a big battle to re-establish itself as a true global leader. Although Nokia has a well established base in many developing countries, it is largely felt that it will need to succeed in the United States to achieve long term global success. Armed with a man who knows the American market, under Elop, Nokia intends to regain a larger share of the US market and is hopeful, and quietly confident, that the launch of the new multi-touch Smartphone, the N8, will prove a more affordable and more popular alternative to its rivals. Steinbock said that their appointment of Elop “may be indicative of the direction the company will go. He has a reputation as a change manager.” The next three to nine months is pivotal for Nokia. The N8 is scheduled for release in late October 2010 in Malaysia. Will Nokia gain successes in the

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United States similar to its impressive performances around the world to become, once again, the true leader in the industry? “Historically, Nokia is strong in innovation and, with a home country of only five million people, it is strong in globalisation too’, remarked Steinbock. The talking is done, now it’s time to walk the walk. edited by P. Kelleher

Italian Trade Mission Targets Malaysia as Important Trading and Investment Hub The Italian Trade Commission, together with PROMOS - the Special Agency of the Milan Chamber of Commerce, and the support from Italian Ministry of Economic Development and Lombardy Region, organized the ‘EXPOLOMBARDIA IN MALAYSIA’ at Prince Hotel & Residence Kuala Lumpur from 20th October to 22nd October 2010. Over 100 B2B meetings were arranged during this three-day event, which saw the participation of 12 Italian companies operating in various industries: green technology and renewable energy, industrial machinery, lifts for residential and commercial buildings, air compressors, shoes and leather goods manufacturing machinery, leather, fresh fruits, cheeses, boats accessories, filling and packing machinery, F&B equip-

Dr Gianpaolo Neri, First Secretary of the Embassy of Italy with exhibitors

ment for commercial kitchens, services in producing technical user manuals in conformity to EC standards and others. Two Italian experts also gave a seminar entitled ‘The Italian Leather World’, highlighting the latest technology, components, accessories, future trends and designs in leather and shoe manufacturing sector.

October

Europe News

Dr Dan Steinbock launched his book at the residence of the Finnish Ambassador on 29th of September. In 2009 Nokia sold 432 million phones, 68 million of which were Smartphone’s. In the same year Apple sold 20 million units of its iPhone. This would appear to make Nokia the global market leader by a considerable margin. This however is not the perception many people have about who is the global leader in the

their phones to each market. Apple, for their part, creates primarily for the US, a fact borne out by a high pricing point in India which worked against sales of the iPhone4 in that market. The price per unit for their iPhone 4 in India was about 68% of annual GDP per capita. In relative terms, it would be equivalent to asking a consumer in the US market to pay $31,500 for an iPhone.

IGEM 2010

IGEM 2010, a Green Success! The International Greentech & EcoProducts Exhibition & Conference Malaysia 2010 Green technology is the way forward towards a sustainable environment to ensure a brighter world for future generations. The International Green tech & Eco Products Exhibition and Conference Malaysia 2010, or IGEM 2010, which took place between October 14-17, did not only create awareness and promote the continuing development and increased importance of green technology, but also encouraged industry in Malaysia to be more innovative and cutting edge and at the fore front of the global growth in green technology. The Prime Minister of Malaysia, Datoâ&#x20AC;&#x2122; Sri Najib, opened the first IGEM at October 13, with statements of intent to budget and legislate for incentives for eco-friendly and sustainable features in homes and buildings. The Malaysian governmentâ&#x20AC;&#x2122;s commitment to reduction in greenhouse gases up to 40% by 2020, for example, goes deeper than those of the Copenhagen summit and their new budget provides for tax incentives and for subsidies to home owners and in research into green technologies. EUMCCI and the EU delegation to Malaysia teamed up to offer 35 EU companies the chance to exhibit at three pavilions at IGEM 2010 which were designated for the EU. IGEM united new innovative ideas in green technology and expertise from Malaysia and EU, to be given the opportunity for growth and expansion in Malaysia.

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IGEM 2010 IGEM aims to provide an essential platform to feature innovative ecoproducts, green technologies and services. It is a prestigious venue where green product buyers and sellers meet and conduct transactions. IGEM 2010 was positioned to take lead and gather industry players and professionals from various sectors, public and private, big and small, local and foreign, new as well as established, to explore and seize the many opportunities from the exciting and emerging green market in the country and the region. The EU Pavilion at the exhibition provided the perfect opportunity for Malaysian companies in a variety of industries to come and meet the leading innovators and producers of Green Technology from Austria, Denmark, France, Germany, Greece, Italy, the Netherlands, Poland and Portugal. Each company provides a different product or service, and this is an ideal opportunity to learn from European standards and technology, network with some of the leading producers of cleaner, greener technologies and increase the competitiveness of your own business.

October

EU Provides the Most GreenTech Companies at IGEM 2010 With the participation of 35 European exhibitors from 9 EU countries the EU was the largest exhibitor IGEM, out of the total 265 exhibitors. EUMCCI successfully coordinated the precence of these EU companies and embassies at three EU pavilions.

IGEM 2010

In the Pavilions, renowned global brands and industry leaders such as Alstom, Philips and Siemens showcased their green products and services alongside smaller firms, SMEs, working in areas as diverse as renewable energy, waste management and environmental finance. The participation of these companies at IGEM 2010 is part of a EUMCCI project, co-funded by the EU, which aims to enhance trade and investment between EU and Malaysia in the services sector. The focus for this year is Green Tech, an area with significant potential for cooperation between Malaysia and Europe. Ambassador and Head of the EU Delegation to Malaysia, H.E. Vincent Piket said “European countries top ‘green patent’ world rankings. The EU is a world leader in green technology and Malaysia has a rich manufacturing base; we are ideal green tech partners”.

The Honourable Prime Minister of Malaysia, YAB Dato’ Sri Mohd. Najib bin Tun Haji Abdul Razak, discussing with Ambassador and Head of the EU Delegation to Malaysia, H.E. Vincent Piket

“We are pleased about the strong position that Malaysia is taking to move towards a greener economy. EU companies will be able to support and work alongside their Malaysian counterparts in contributing to green growth,” added Ambassador Piket.

“Moreover, once the EU-Malaysia Free Trade Agreement is concluded, Malaysian industries will have preferential access to the EU’s single market with its half a billion consumers. The FTA will also attract trade, quality investment, capital skills and know-how to Malaysia,” Mr Piket said. David Jones, Chairman of EUMCCI highlighted that during IGEM 2010, over 170 qualified business meetings have been arranged between Malaysian entrepreneurs and EU companies. “We have also organised specific workshops to showcase European expertise in green technology. Our hope is that these initiatives will lead to mutually profitable business opportunities, joint ventures and technology transfers.” “IGEM is just one step in the goals set by EUMCCI in cooperation with the EU Delegation to help boost the Malaysian service sector and cooperation between EU and Malaysian companies in areas of green technology, logistics, ICT and financial services,” he added.

Datuk Seri Peter Chin surrounded by Austrian exhibitors

Statistics & Results Item Exhibition Gross area

Quantity 9,710 square meters

Exhibitors No. of exhibitors No. of booths No. of countries / regions

277 502 24

Visitors No. of visitors No. of countries / regions

86,372 59

1 on 1 business matching No. of sessions Total business transactions and leads

October

1,126 sessions MYR1.2066 billion

The EUMCCI Sectoral Committee for Environment, Energy and Green Technology (EEGT) Chairman, Thomas Brandt said “Malaysia has introduced attractive green technology policies but now needs to come up with stronger implementation to avoid falling behind neighbouring nations. The Malaysian Government’s commitment to investing in energy, security and sustainability needs to be addressed as Malaysia is becoming a net importer of fossil fuel. Europe can be the perfect match in terms of systems, products and technology transfer”. The EEGT Committee has played a key role in promoting EUMalaysia business exchange and fostering business development. The EEGT Committee is composed of five sub committees that discuss issues in the areas of Water, Waste, Green Building, Energy Efficiency and Renewable Energy.

EUMCCI Review

“IGEM Facilitates the high profile image of EU Technology” “This is the first IGEM exhibition and they organized it from zero to nothing. The Prime Minister was there, Dato’ Peter Chin, even his Majesty the King of Malaysia, Yang diPertuan Agong. This big event is really something you should be proud of. There even was a security briefing at the opening event, which shows the detail in which everything was organized.” said Thomas Brandt, head of EUMCCI committee for Energy, Environment and Green Technology.

IGEM 2010

Exhibitors, but also visitors were coming from everywhere in Malaysia; the organizers spent a lot of effort in terms of time, advertising, and marketing. Brandt: “The quality of the visitors, even at the public days, was very high. Our exhibitors had several very good meetings, either pre-arranged such as in the Business Matchmaking session as well as at their booths.” For EUMCCI, this event adds on to the other activities organized under the Services Sector project, co-funded by the EU, which aims to enhance trade and investment between EU and Malaysia in the services sector. EUMCCI started this year with the capacity building event, an Expertise Transfer Session in the area of Green Technology, bringing knowledge from EU to Malaysia. This activity was organized together with KeTTHA in association with the EU delegation to Malaysia and the EU Member States. At IGEM 2010, EUMCCI provides a private to private business approach to Malaysian and EU businesses. Three activities were pivotal here; the exhibition with three EU pavilions, with 35 EU organizations, the 21 presentations at the workshop and the 170 Matchmaking sessions. Brandt: ”This is the first time European companies present themselves under the EU flag in Malaysia. The majority of our exhibitors are SMEs, a perfect match for the Malaysian Economy. The SMEs, with their inventions and patents produced here, invest and work together with local suppliers. The EU is SME-driven and Malaysia wants SMEs in this country to become stronger, so the companies themselves will have the best benefit.”

H.E. Vincent Piket and H.R.H. King Tuanku Mizan Zainal Abidin

Mr. Thomas Brandt: ”The matchmaking sessions were very successful. Our team made a lot of effort to pre-arrange the meetings, based on the profiles of the exhibitors. The sessions were popular among Malaysian companies, and we even had to turn down certain requests because we felt they did not match with the objective of the participation of our EU companies.” Also at the booths, there as a lot of activity: ”Some of the companies had to slow down with giving out their brochures and other informational material.” Many companies made use of the chance to present themselves at the workshop session, where they shared information about their company, business and objectives with the audience. Brandt:”This facilitated the high profile image of EU technology, which is good for the general knowledge and attitude towards EU businesses.” Green is hot Green is ‘hot’ these days and we have seen a lot of Green events in Malaysia and since 2009, there is a policy and a Ministry on Green Tech. Brandt: “We have not seen an increase in the share of Renewable Energy since then, and even Energy Efficiency has not increased. The policies are there, what is missing is the acts to implement these policies. “The feed in tariff that will be implemented next year is based on a proven system from Germany. This system has been adopted by 22 countries already, of which Britain is one.” Brandt continues, “Even though the quantity of the allowed electricity which will be given from the premium is very low, it would be crucial to increase the quantity to allow a green industry to grow. I see this as a task for the Green Tech Ministry but also MITI to feel responsible to give birth to a new industry, including employment.” Brandt also sees a role for the Ministry of Human Resource. “You need to educate people in order to keep this industry going. You need architects, installers, maintenance. From university level into practice, the whole range.”

EUMCCI Review

October

“You need to look at green building from a holistic perspective”

IGEM 2010

Dr Stellios Plainiotis, is the Managing Director of Neapoli Sdn Bhd and a member of the EEGT Committee and the EUMCCI board of directors. Dr Plainiotis came to Malaysia from Greece via London, as a consultant in environmental design and engineering. After working for a Danish company, 6 months ago he joined Neapoli as a shareholder. Neapoli is an environmental design and engineering consultancy company for the built environment. Green Building in Malaysia According to Dr Plainiotis, “Green building continues to gain momentum every year in Malaysia; however, the knowledge is insufficient yet. You can tell, because most clients here are basically looking for easy ‘green’ add-on solutions and not looking at a holistic approach in green building.” Dr Stellios Plainiotis, Managing Director of Neapoli, Greece

“Use the tool to evaluate, not to design”

“Energy and Environmental Design is not the attachment or supplement of architectural design, but an integrated design process with the architectural design.. Optimizing the ‘building envelope’ is the strategy you should start with. This includes insulation, day lighting, solar shading, natural ventilation and looking at the air tightness of a building. Next, one looks at the Mechanical and Electrical systems, like lighting, air-conditioning, elevators, etc. The third thing to do is looking at the energy management: centralizing the energy management in the most optimized way, so you don’t lose energy for example by turning off air-conditioning and lights when there are no people to enjoy them.”Dr Plainiotis goes on to say “Only after having optimized the building to the fullest, you will start to supply the energy to the building with renewable energy. So in buildings, renewable energy is the least priority. Using renewable energy in a non-optimized building is like pushing water in a pipe full of leaks. It is not sustainable at all.” Certification of buildings “With certification for the Green Building Index (GBI) for example, the most important thing is that you introduce more responsibility, intelligence and know-how to the design process. First look at the budget involved and your objectives.” Dr. Plainiotis continues: “Only after you have indentified your objectives, strategies and actions, we take GBI or another tool to rate the building. In other words: we work from the building to the tool, you don’t use the tool to design the building.” Dr. Plainiotis insisted that “sometimes, you will find big gains in unexpected areas, which you will not find when trying to score points using a certification tool. For example, in one of my former airport projects in Malaysia, we looked at the solid waste management and noticed that a considerable amount of this would arise from unsold but also unexpired food disposal. So we created a system where our client could donate the food to a food bank here in Malaysia. Result: 30% less solid waste and 1 ton of food per month donated to Malaysian families in need.” “Things like this will not be measured with a rating tool, but are very important for the sustainability of a company, and even their image.” Dr. Plainiotis believes the rating tool should be used to evaluate the design, and not used to design the building. Neapoli is working on several projects at the moment including the new Corporate Office of PKNS, the Selangor State Development Corporation, where 2.8 acres of green roof is made accessible for the public as an elevated recreational park. Plainiotis: “This way, we will give back the green space taken from the park back to the environment and the Shah Alam community. The roof is connected to the existing park in Shah Alam, so we hope a lot of people will enjoy it, from 2013 onwards, when the project is completed.

October

EUMCCI Review

“Smart Growth will help us meet climate change goals”

The EU’s prominent participation at IGEM 2010 underscores our global position at the cutting-edge of green technology. Our economic strategy for this decade, called the EU 2020 Strategy, highlights green technology as a new source of growth and of job creation. “Smart growth” will help us meet climate change goals, it will enable us to generate greater resource efficiency and it will raise productivity. Achieving this requires that EU businesses reach out to the emerging economies in Asia, including South-East Asia. With its rich manufacturing base and its welldeveloped research infrastructure, Malaysia is

proving especially attractive to EU firms. I am very glad that the EU and its Member States have been such a close partner of the Ministry of Energy, Green Technology and Water ever since it was set up in April 2009. Over the past year, we held a policy dialogue on green technology with the purpose of sharing policies and regulatory frameworks for green technology. We also brought over EU experts to exchange knowhow on regulatory frameworks and on incentives for green tech and renewable energy. Later this year we aim to set up a new business platform for generating further ideas on how the use of green technology can be further promoted in industry as well as society as a whole.

H.E. Vincent Piket, Ambassador and Head of Delegation of the European Union to Malaysia

The Ministry of Energy, Green Technology and Water has been instrumental in generating a major debate in Malaysia about green growth and the role of green technologies especially in business. I would like to congratulate the Ministry, and in particular its Minister Datuk Peter Chin Fah Kui, for this and for organising the IGEM. The EU, its Members States and its companies are glad to have been your partner in this major event.

“Environment is the key driver that is shaping the future” One of the bigger exhibitors at the EU Pavilions was the French based multinational Alstom. Alstom is a solutions provider in power generation, transmission grid and rail transportation with almost 800 staff in Malaysia alone. Alstom is being selected to provide turbines and generators to another hydro project in the Peninsula, due for completion in 2015. On the service side Alstom is carrying out several long term contracts with such companies as Genting, TTPC and Malakoff. Mr. Saji Raghavan, Country President: “Alstom is exporting its technical solutions, from its base in France and Europe, through its various industrial and engineering bases worldwide. We are living our adage CLEAN POWER TODAY, by providing solutions using the latest technology to ensure highest possible efficiencies and cleaner emissions.” Mr. Raghavan continues: “As we believe environment is the key driver that is shaping the future, it is only natural for us to be a serious player in providing solutions congruent to what we need in preserving the ecological status of the planet, be it in power or in transport. It is very heartening to note the government’s efforts in ‘going green’, and we intend to be part of the solution.”

HE Marc Baréty, Ambassador of France, Minister Peter Chin and Mr. Saji Raghavan, country president Alstom

Mr. Raghavan shares his vision on the future of Green Technology: “I would like to see the technologies becoming more affordable for all Malaysians, and more importantly Malaysians becoming more aware of the need to be ‘green’ and thus driving the demand for industries to become competitive. It is a cycle, resulting in competitive supply fulfilling the demand. “ I would like to congratulate all involved in making IGEM a success, especially KETTHA for leading the initiative and our Prime Minister. Thank you EUMCCI for helming the EU pavilion

EUMCCI Review

October

IGEM 2010

“We are proud to have been the largest single exhibitor at the International Green Technology and Eco-Product Exhibition and Conference in Malaysia (IGEM 2010). With close to 40 companies showcasing goods and services technologies from Northern, Southern and Central Europe in industries as diverse as energy, water and solid waste, the EU is showing its wish to engage with Malaysia as a green technology trading partner and a destination for green tech investment.

Siemens looking for new partners

IGEM 2010

Siemens Malaysia holds leading positions in its Industry, Energy and Healthcare Sectors and is present in all key sectors of the nation’s economy. Over the years, Siemens has invested more than RM4 billion locally as part of its commitment to the Malaysia’s development. The Malaysian government is Siemens’ main business partner, KLIA express is one of their bigger projects as well as the double track railway Seremban-Dutamas.

Chelvam Rengasamy, Sales & Bid Manager, Siemens, Germany

Chelvam Rengasamy, Sales & Bid Manager: “The awareness about Green Technology really needs to grow. The awareness in the industry however is very good already, so that is a good sign. We are basically looking for new potential partners here, the process of becoming a partner is a lengthy one, but here, we can meet them and follow up later. We joined the EU pavilion instead of presenting us by ourselves, because of the image of EU in Green Technology and we would like to be seen combined with technology from other EU companies.”

170 X EU Matchmaking 170 pre-arranged meetings were set up between EU exhibitors at the pavilion and Malaysian companies. An elaborate screening, based on the profiles of all companies, which preceded the matchmaking session 6 weeks before IGEM led to a very beneficial process for all companies involved. Carlos Moura, Managing Director, Aicep Portugal Global: “The matchmaking session gave us very good results, we met local business partners which are already represented in Jakarta and Vietnam so the sales perspective is very good.” The matchmaking lunch was sponsored by TNT.

Malaysia is aggressively promoting renewable energy

Wolfgang Erbe, General Manager Hoppecke, Germany

Since 1927 Hoppecke have been developing and producing batteries and systems ‘Made in Germany’. Mr. Wolfgang Erbe, General Manager: “Joining the EU pavilion was a choice of convenience to us: everything is arranged, there is some funding from EU and joining as a group makes sense as well. I am also very positive about the presentations on the first day where everyone could present their product. The quality of the visitors is good, although the diversity of people makes it somewhat hard to find the persons that are really interested in your industry. In any case, showing our presence here is the main thing and next time, I think we will even have a bigger booth.”

Sukha Chew, Chan Swee Hua from TNT and David Jones, EUMCCI.

“Renewable energy started to be an interesting field not so long ago, so in the next 10 years, we should be doing well in business. Malaysia is a base to expand in the region as Malaysia is now the biggest in renewable energy in this region. The government is pushing this very well, and puts money in it. Other than Australia, I don’t see another country being so aggressive in this.”

170 Pre-arranged Matchmaking Sessions

October

EUMCCI Review

Many high quality Malaysian enterprises and also the international society is here

Green Technology from Europe

‘Green Technology from Europe’ Publication Distributed 2000 booklets, containing the program of the EU presence to IGEM, profiles of the EU companies but also the position paper of EUMCCI’s Energy, GREEN TECHNOLOGY Environment and EUROPE Green Technology Committee (EEGT) were given to the high quality audience of IGEM. FROM

35 EU exhibitors Portugal, Poland, the Netherlands, Italy, Greece, Germany, France, Denmark and Austria were represented as EU member states in the three EU Pavilions. Big companies, well known in the field and in Malaysia presented themselves at the exhibition, such as Q-Cells, Siemens, Alstom and Phillips. Also SMEs, the entrepreneurial heart of EU, joined the common initiative from Portugal, Denmark, Germany and many more besides.

Rafal Szczepkowski, Second Secretary, Trade and investment Promotion Section, Embassy of the Republic of Poland

“Our participation in IGEM is very good, there are many high quality Malaysian enterprises and also the international society is here, I met people from Pakistan and Turkey. One of the Polish companies met a Malaysian organization who would sell technology to Poland to save energy in heavy industry.”

IGEM is a true kick start for the sector Carlos Moura, Managing Director, Aicep Portugal Global: “IGEM is here for the first time and I think it is beyond expectations. In one word: Fantastic. We were also happy to see that the bigger companies joined the exhibition and our pavilion; I think that that improved the quality of the exhibition and of the visitors. I think IGEM is a true kick start for the sector, a steppingstone, showcasing that Portugal has really done a lot in the past 15 years, especially in Green and Renewable Energy. Portugal is a small country and presenting us as EU together will enlarge our visibility and credibility.” “Next year, we hope to get more Portuguese companies in, and it would be great is other EU countries would join too, plus SMEs as they benefit most from this event.”

EUMCCI Review

October

IGEM 2010

The EU workshop showcased the most cutting edge and pioneering SMEs from all around the European Union and attracted attention from many visitors to the exhibition. His Excellency, Vincent Piket, the EU Ambassador to Malaysia opened the workshop by stating that “today is a high point in the EU’s green tech cooperation with Malaysia.” His Excellency stressed the importance of EU business engaging with developing countries and the importance of the presence of EU companies at IGEM. He said, “We are ready to support their climate actions and their technological development. And we want to promote green business dynamics. Because one thing is clear: if business doesn’t buy into green growth, if the consumer does not understand the advantage of green consumption, then government policy will fail.”

Rafal Szczepkowski, Second Secretary, Trade and investment Promotion Section, Embassy of the Republic of Poland: “We like to join and support EU activities and find it important to be present here. Poland joined EU in 2004, after waiting for a long time and now we are EU, we have to be here at IGEM as well. As EU, I believe we have to talk one voice with each other and Malaysia. On the forum, we have our own opinion; we can support ideas here and persue trendy innovations. Also, together with EU we are able to present ourselves without minimizing our independency.”

Malaysia Legislates for a Green Economy

hotels, transportation and electricity supply are currently being subjected to green procurement by the government.

IGEM 2010

Distribution and Cooperation Agreement Signed at IGEM 2010 Aura-Lite (M) Sdn Bhd, a major distributor of green products for the sustainable home, and U.K.-based manufacturer of innovative eco-products RainWater Harvesting Ltd signed a long term distribution and cooperation agreement. Under this agreement Aura-Lite will distribute rainwater harvesting equipment, across ten countries in the ASEAN area, from the British company and will cooperate in the development of new products and services. Aura-Lite launched at the IGEM show a range of products from RainWaterHarvesting.co.uk including underground tanks, filters, pumps and rain management systems.

From l. to r.: Oliver Harrison, John Pearson, Vivien Life, HE Simon Featherstonem, Marcus Bicknell En. Mohd Jamil B. Abd., Rachel Koh and Kelvin Lau at the siging of the contract

Rachel S.C. Koh, Business Development Director of Aura-Lite said “We are excited by the prospects in the Asian market for products for the sustainable home. We are pleased to have these excellent rainwater products from RainWaterHarvesting.co.uk to add to our existing eco-offering and we look forward to developing them in cooperation with our new British partners.”

DANIDA Pavilion with 16 years of MalaysianDanish cooperation At IGEM 2010, 17 Danish and Malaysian partner companies show cased greentech solutions, services and know-how at the at one of the largest pavilions under the DANIDA programme. Further, Denmark was also present with 3 companies at the EU Pavilion. In the pavilion, the presented technical solutions were centred on Waste Water Treatment, Biodiversity, Landfill Gas &

October

Opportunities for Malaysian SMEs in biomass products

Biogas, Waste to Energy, Solid Waste Management and Planning & Mapping. The DANIDA Pavilion displayed the past 16 years of cooperation between the Danish and Malaysian government on environmental development. During the years various greentech projects have spurred innovative solutions and technology for the benefit of the environment, people and companies. The projects are now carried out on commercial terms and in the DANIDA Pavilion visitors have the opportunity to gain insight on the technologies applied and developed throughout the years of cooperation. In addition to the strong promotion at the exhibition, the Danish Embassy planned networking receptions, matchmaking meetings and technical seminars for the Danish companies.

The Race of Green Technology in Asia

One of the exhibitors under EU Pavilion was Biomass SP. Their role is to help Malaysian small- and medium-sized enterprises (SMEs) planning to tap regional as well as international markets for biomass products but lacking skills and expertise in pursuing their ventures to apply for training and coaching under a €1 million (RM4.1 million) European Union(EU)- funded project. Provided under the SWITCH-Asia Programme, the EU-funded project aims to develop the biomass industry based on the principle of consumption and production via the enhancement of supply chain and uptake of biomass utilisation by local SMEs. The project aims to improve biomass supply chain in the country by promoting tie-ups among the industry, research institutions and universities to address the inconsistent biomass supply in Malaysia and unlock its wealth creation potential. At the same time, the project will help selected SMEs implement sustainable production models to achieve economic growth, social well-being and address the issues of industrial pollution. Towards this end, Biomass-SP will be launching a significant four-year initiative called the EUMalaysia Biomass Entrepreneurs Nurturing Programme which offers complimentary coaching services to 50 selected biomass SMEs from all around the country.

The United Nations, European Union, North America and countries such as Japan and Korea have enacted legislations and regulations to support green purchasing. These countries are also the world’s largest consumers of goods and services, and their consumption preference will severely impact on the way that goods are manufactured in Asia.

The Biomass-SP secretariat will be holding briefing sessions to introduce Biomass-SP to Malaysian SMEs and outline how they can benefit from the project. The secretariat (reachable at www.biomass-sp.net) will be holding briefing sessions in seven states, namely, Perak, Kedah, Pahang, Johor, Kuala Lumpur, Sabah and Sarawak between now and September.

In realization of this new trend, Asia is also in the race to produce low carbon green technology and eco-products. Products such as paper, office supplies, motor cars, office automation equipment (computers, printers etc.), furniture, clothing, food, lighting equipment and household appliances; as well as services including banking, construction, cleaning, printing,

The Biomass-SP is jointly organised by the Malaysian Industry-Government Group for High Technology, Association of Environmental Consultants and Companies, European Biomass Industry Association and Danish Technological Institute with the support of the Ministry of Science, Technology and Innovation, and the Ministry of Energy, Green Technology and Water. Source: Business Times

EUMCCI Review

IGEM 2010

EU Climate Change Priorities Since the 1970s, the European Union has put in place a network of measures to protect the environment. The European Union policies have led to a steady improvement in a number of areas, such as the quality of air and water. Sustainable development, climate change and renewable energy are all enshrined in the EU’s most recent policies. Tackling environmental issues is a priority for the EU. For example, December 2008 saw the formal adoption of the historic climate change and energy package, whereby the EU has committed to the most ambitious mandatory climate and energy targets in the world:

The EU’s fight against climate change goes hand-in-hand with an ambitious energy policy. The goal is to spark a new industrial revolution that will deliver a sustainable, low-carbon economy whilst increasing Europe’s energy security by reducing reliance on energy imports. This will strengthen the EU’s competitiveness, boost the economy and create new jobs. The most convincing leadership that the EU can show is concrete and determined action to become the most environment-friendly region in the world. The Europe 2020 Strategy has defined sustainable growth – promoting a more resource efficient, greener and more competitive economy – as a priority.

The EU’s fight against climate change goes hand-in-hand with an ambitious energy policy. The goal is to spark a new industrial revolution that will deliver a sustainable, low-carbon economy whilst increasing Europe’s energy security by reducing reliance on energy imports. This will strengthen the EU’s competitiveness, boost the economy and create new jobs. reducing its greenhouse gas emissions 20% from 1990 levels, improving its energy efficiency by 20% and meeting 20% of its energy needs from renewable sources, all by 2020. The EU plays a leading role in the fight against climate change and will continue to strive for a legally binding and robust international agreement as well as provide fast-start funding for developing countries’ actions on climate change. The EU has enacted stringent

Such action will need to have a strong focus on policies to accelerate innovation and early deployment of new technologies and infrastructure, creating a competitive edge for European companies in key sectors of the future, including energy efficiency, green cars, smart grids, carbon capture and storage (CCS), and renewable energy. The EU is committed to a new energy strategy to encourage the development of carbon-free energy technologies such as wind power, solar power, hydropower, geothermal energy and second generation biomass.

environmental standards and ambitious goals in areas ranging from biodiversity conservation to industrial chemicals. In March 2010 the “EU target for biodiversity beyond 2020” was adopted. The EU was

However, much more remains to be done and the EU is raising the bar in all relevant fields, domestically and internationally.

also the first to introduce the Emissions Trading Scheme (ETS) – the

Source: www.ec.europa.eu

largest, multi-national emissions trading scheme in the world.

EUMCCI Review

October

IGEM 2010

3rd Place for EU for Most Creative Pavilion The EU Pavilion is awarded the third prize for Most Creative Pavilion at IGEM 2010. Business came to a standstill for a moment at Friday 14th October when exhibitors and visitors at IGEM made beeline to the Awards Ceremony and Welcoming Cocktail to know who had won the awards for Best Booth, Most Creative Pavilion and Dare to Dream Challenge. The first and second prize winners were Japan and the Danish DANIDA.

Andrew McFarlane, Diana Gonzalez, Mary Lopez, Ai Li Koch, Paul Kelleher, Annika Figaj, Schvonne Choo and Timmy Quasem.

EUMCCI - a true team! We would like to take the opportunity here to thank our partner MGCC, who did a tremendous job in arranging the business Matchmaking sessions, the EUMCCI team, a job very well done and our sincere thanks to all of you!

Snapshots from IGEM

October

EUMCCI Review

The VIP Table

Question and Answer Session prompted a lively discussion

In Conversation with Tan Sri Dr Koh Tsu Koon For example, he revealed a 36.9% decline in street crime, a comprehensive ranking of all primary and secondary schools and the online publishing of 3,680 Government contract awards, all in the first Tan Sri Dr Koh Tsu Koon (l.), Jean Francois Jadin (r.) six months of this year. But success Speaking to an doesn’t come easily – audience comprised much of Tan Sri’s speech related to how this largely of those from the business is more a ‘journey’ of transformation that community with an interest in the future of involves multiple aspects, such as reversing Malaysia, he outlined the Government the trend of the currently declining FDI Transformation Programme, its successes so inflows, identifying the Rakyat’s views and far, its aims and the meaning behind the needs and learning from the successes or slogan: ‘people first, performance now’. failures of past initiatives and experience. The real success, outlined Tan Sri Dr. Koh would be not just in setting clear targets and plans for delivery, but in seeing rapid results.

INTRADE 2010 is the gathering of almost all segments of industries at one interactive destination. No matter which industry sector you specialize in, you can be one of

Following the talk, there was a Q & A session, during which a number of challenging questions were posed by members of the audience. Overall, it was a very enjoyable discussion and undoubtedly, all present will look forward to seeing the plan he spoke so clearly about, come to fruition and continue to bring the rapid results that we’re already coming to expect. by A. McFarlane

Aside from merely identifying the needs and requirements of Malaysia and its

INTRADE Malaysia

INTRADE Malaysia 2010 is an international marketplace for enhanced networking, business matching, exchange of ideas and inspiration amongst the trade community of different countries, especially those who are seeking to venture into the global export market.

people, and then trying to go about fulfilling them, Tan Sri made sure to emphasise how much importance he places on transparency and measurability – taking steps such as implementing a GTP roadmap, a special ‘Delivery Task Force’, and Key Result Areas for each Minister aside from the overall six National Key Result Areas.

the quality international exhibitors at INTRADE Malaysia 2010 to meet trade buyers from all parts of the world, strengthen your networking and explore business opportunities through direct interaction with your trade counterparts here. The recent years has produced advancements in global trade, with hew complexity in understanding future trends, negotiating, business arrangements, establishing relationships with new government and private sector leaders, and developing strategies to ensure long-term success and prosperity for businesses. Now more than ever, global businesses need to meet as one big

EUMCCI Review

9-11 November marketplace, as cross-border trade becomes the norm of business. Traditional trade ventures are now prepared to venture into modern day global trade, and new trade ventures are constantly evolving. INTRADE Malaysia fills this need for a good global trade platform so that global trade leaders, small and medium enterprises as well as new entrants to the global market converge to share, to network, to exchange ideas, and to strengthen linkages as they collectively response to market changes. For more information: www.intrademalaysia.com

October

Events

Lots done, lots more to do – that was the message being put across by YB Senator Tan Sri Dr. Koh Tsu Koon at a recent event organised by EUMCCI coorganised with bilateral chambers.

Hi-Tea Panel Discussion: Broadband as an Enabler for Growth The Hazel Room of One World Hotel was fully booked when His Excellency, Mr Vincent Piket, the EU Ambassador, held the opening speech for this event which was co-funded by the EU and part of a broader EU initiative to promote cooperation with Malaysia in the services sector.

EUMCCI took the lead in hosting a roundtable discussion with industry players, exploring the business impacts and opportunities that result from this strategic direction. This session aimed to stimulate ideas on new ways to encourage take-up, generate revenue and benefit communities from the Broadband rollout. It also served as a platform for dialogue with regulators over challenges of the Broadband programme and potential opportunities for local Malaysian and foreign companies. The dialogue included key industry players who have international experience in economies that are more mature in relation to Broadband penetration and were able to share industry experiences where the efficiency and penetration of broadband has enabled significant GDP growth for the economies concerned. Why does Malaysia need Broadband? That depends on from what angle you are looking at this issue. Mr Henrik Clausen – DIGI’s Telecommunications CEO – reminded the audience that for a better and more efficient cooperation within governmental institutions – for example between the EU and Malaysia – the exchange of very large data files is needed. Broadband ensures a fast and stable connection and would hence shorten the time of transmission such large data files.

H.E. Vincent Piket, the EU Ambassador

How can Broadband be defined? The OECD * defines Broadband as “having download data transfer rates equal to or faster than 256 kbit/s” while the United States (US) Federal Communications Commission The panel discussion (FCC) as of 2010 **defines ‘Basic Broadband’ as data transmission speeds of at least 4 megabits per second (Mbps). These are just two of a variety of definitions existing. Down to the present day there is no standard definition available. The panel was asked to give its own definition of broadband independent from the already existing official perspectives mentioned above. A consensus is having a certain speed level which is at least fast enough to provide the user with a stable and reliable connection. Mr Afzal Rahim, CEO of Time.Dot spoke about affordability of rolling out fiber and costs related to infrastructure, which is linked also to the lack of local content. To invest in infrastructure is a huge challenge and not many are able to afford such enormous investments. Malaysia must find a way to regulate this issue if it does not want to face the risk of creating monopolies. There could be a lack of competition and the reason for that is simply the extraordinary costs of construction. Which areas will be developed first? The digital

EUMCCI Review

Events

The Malaysian government strongly believes Broadband is an important driver of the economy and has set a 50% Broadband household penetration target by end 2010 among key initiatives of the National Broadband Agenda. This ambition was also expressed by Datuk Badlisham Ghazali, CEO MDeC in a breakfast talk organized by the EUMCCI ICT Committee in August.

From a consumer perspective panel member Dato’ Dr Nirmala Menon, CEO and President of ING, raised the question, whether a consumer has the choice to get a certain speed-level paying a certain amount or will there be just one speedlevel or nothing? In Europe consumers usually have the choice between a couple of packages whereas they can decide which one fits their personal needs.

Dato Dr. Nirmala Menon, CEO and President of ING

divide is quite wide in rural areas and hence the development at the beginning will be in more urbanised areas. Another question was raised, related to competition; is there enough competition present to guarantee a fair progress? Based on the high costs of rollout only two or three big players having the financial power to invest in infrastructure. Right on time Malaysia is awaiting a new Competition Act which will come into force in January 2012, which will have a positive effect on a fair competition in this sector. After these controversial issues one thing is determined for sure: High speed Broadband rollout is coming and Malaysia is getting ready for it. Mr Heinz Luck, Senior VP of DHL in Malaysia stated from a logistical point of view that “Our system cannot exist without reliable connection”. Enlightened by the panel discussion this evening, one could take the view that no system at all exists without connection. by T. Quasem

October

Recruiting and Beyond A network event by KellyOCG, co-organized by EUMCCI’s HR Committee

Events

Hiring the right employee with the most perfect skill sets and retaining them is the challenge every organisation faces. And what about the challenges Malaysia itself is facing? EUMCCI HR Committee was the coorganiser of the event in Park Royal hotel, instigated by Kelly Outsourcing and Consulting Group (KellyOCG). Candy Lewandoswki, Vice President - Global Practice Lead,Kelly OCG, presented the Global RPO report, a report about trends in the global talent market and its impact on Asia. Also, Mr Anthony Raja Devadoss, Regional Senior Director APAC, KellyOCG, held his presentation and Q & A with the audience, most of them members of EUMCCI, either working in HR companies or in HR departments. Trends in recruitment and HR After the economic downfall, there have been signs of stability in the employment market but as yet, there is still no upswing. Globally, more than half of the hiring managers are still experiencing difficulties in recruiting staff, a number that is virtually unchanged from last year. In Asia Pacific, there has been a significant improvement

over the past year, but still 50 percent report difficulties. One of the trends and big challenges in HRM today is retainment, as more HR departments are focusing on keeping the talent inside instead of external recruitment. However, the top recruiting challenge is a shortage of skilled staff, cited by 58 percent of respondents of a survey. The quality of candidates is the biggest factor slowing the hiring process. There is no fit between skills and new jobs offered today and unfortunately, the jobs that are lost, many of them are lost for good. Emerging markets feel this with greater pain than some of the developed markets. Upgrading skills in Malaysia Malaysia is moving its focus from manufacturing to the services sector. This requires an upscale of the local education and the workforce. Meanwhile, as long as Malaysia’s current workforce is not ready for that, the country can only attract foreign professionals and needs to retain these high quality professionals. Malaysia tries to get in 700,000 foreign professional workers and meanwhile, thousands of Malaysian graduates are going to work abroad.

Minna Saneri, General Manager EUMCCI, Anthony Raja Devadoss, Regional Senior Director APAC, KellyOCG and Candy Lewandoswki, Vice President - Global Practice Lead,Kelly OCG

To get more balance in the professional workforce in Malaysia, among other things, wages should be raised to meet the wages abroad. Apart from the higher income in other countries that attracts local professionals to other economies, barriers in this market is the regulation which prohibits foreign employment locally. Other trends With the Q&A session after the presentation, several other trends were discussed. For example, the introduction of Recruitment Proces Outsourcing; the impact of social media; the salary pressure in Malaysia and generation Y entering the market. A very interesting presentation with many thanks to the guests who asked questions you wouldn’t get answered elsewhere.

Business Opportunities in Regional Establishments in Malaysia Doing Business in Malaysia becomes more and more attractive. On September 28, the Malaysian Industrial Development Agency (MIDA) informed the audience composed of MFCCI members about business opportunities in Malaysia to be globally competitive. Malaysia as pillar for doing business in Asia – MIDA is encouraging foreign companies to invest in Malaysia by having joint ventures with local companies or via FDI. Therefore MIDA has strategic centres in many parts of the world, e.g.: New York, Frankfurt, Paris, London, Shanghai, etc. where everyone will be informed about business opportunities in Malaysia. MIDA – as an Agency under the Ministry of International Trade and Industry (MITI) has

October

been established in 1967 under the Act of Parliament, 1965.

• Intended for administrative

In order to achieve the mentioned aims and objectives MIDA established three different institutions; • Operational Headquarters • International Procurement Centre • Regional Distribution Centre

Secondly, A Regional Distribution Centre (RDC) intended for a Group of companies establishing a regional collection and consolidation centre for finished products, components and spare parts produced by its related companies for its own brand to be distributed to related and unrelated companies.

An operational Headquarter is a locally incorporated company that carries on a business in Malaysia to provide at least 3 of qualifying services to its offices or related companies in and outside Malaysia. • This scheme is designed to attract multinationals to set up regional or global headquarters in Malaysia

EUMCCI Review

companies

providing

Finally, the International Procurement Centre (IPC) intended for companies establishing procurement and sale of raw materials, components and finished products from companies (related and unrelated)

‘The ICT sector bedrock in Malaysia’ Breakfast talk with Datuk Badlisham Ghazali, CEO MDeC

EUMCCI is the co-organizer of the BMCC’s Corporate Christmas lunch, which you are invited to join, to kick off the festive season in style at the 5-star Crowne Plaza Mutiara Hotel in Kuala Lumpur. We are bringing you all the delights of a traditional British Christmas without the dreary weather. Come along for a gourmet Christmas lunch experience…think turkey, roast potatoes, stuffing and traditional Christmas pudding….. Will you find the silver penny and win a prize? Have your first mince pie of the season and toast this Christmas with a cup of mulled wine, straight out of Delia’s (Smith’s) cook book. We may not be able to give you the Queen’s speech but put on your party hat and join us for an unforgettable afternoon of fun with your colleagues and team mates. The event will start with a mulled wine reception at 12.30pm followed by a three course seated festive lunch with free flow wine and beer included in the price. Date:

10th December 2010 from 12.30pm onwards

Venue:

Crowne Plaza Mutiara Kuala Lumpur

Members price: RM150 Non-members: RM 220 Book a Table of 10 with your company branding; Members:

RM1,400, non-members: RM2,100

Registration:

www.eumcci.com/events2. html

The Multimedia Development Corporation (MDeC) advises the Malaysian Government on legislation and policies, develops Malaysia-specific practices, and sets standards for multimedia operations in the country. The role of MDeC is acting as both a strategic driver and a strategic advocate and facilitator, towards providing an ICT based platform for reaching the goals of Malaysia in the next 10 years. Investments in Malaysia will be in ICT instead of manpower, which is part of the aim for growing into a knowledge-based economy. Datuk Badlisham explained that ICT will help bring more remote parts of the country closer to each other and will help to develop them, together with the areas that are developing at a rapid pace already. In August 2010, 37% of the country had broadband availability; Datuk Badlisham hopes to make that 50% by the end of this year, and up to 75% within the next 5 years. Malaysia will promote ICT in all industries. Datuk Badlisham: “ICT is the backbone in all National Key Results Areas and I would also like to see SMEs be involved more in ICT.” This way they can communicate and expand their business by doing business with more companies than the ones in their immediate surroundings. In order to make online business easier, Datuk promotes

Datuk Badlisham Ghazali

creating a virtual mall, an online platform for information sharing, collaboration and doing business. Following a question from one of the attendees of this breakfast talk, Datuk agrees that education is necessary to be able to use the ICT tools in Malaysia properly. It will take time to create an accredited university level programme. The many private and governmental universities can develop a programme here in Malaysia and even compete in providing the best course, according to Datuk Badlisham. However, there are already educational programmes to fill the gap in the short term, and talent can be recruited from other industries, not only the technical sector. Short term ‘Braingain’ also needs to be supported from abroad with foreign knowledge workers, Datuk said. Datuk Badlisham encourages the private sector to clearly articulate their issues and invest in communication with the government for a better mutual understanding and collaboration. The Breakfast talk was hosted by EUMCCI’s ICT Committee at Grand Millennium Kuala Lumpur.

EU Upcoming Events: ICT Green Panel Date: 4 November Venue: Double Tree by Hilton Time: 09:30 am - 12:30 pm Registration and breakfast commerces at 08:00 am

EUMCCI Review

Do’s & Don’ts of doing business in Europe Date: 16 November Venue: TPM Bukit Jalil Time: 09:00 am - 11:00 am

October

Events

Christmas Corporate lunch with BMCC and EUMCCI

On 28th August, interested guests of EUMCCI’s ICT Committee attended the breakfast talk with Datuk Badlisham Ghazali, CEO MDeC. The 10th Malaysia Plan (10MP) clearly prescribes the role of ICT as the bedrock for the nation to develop into a high-value economy. ICT is one of the national key economic areas contained in the 10MP. The imprint of ICT can be seen in the entire blueprint of the plan.

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Talk on Counter-Terrorism and Democracy

Events

by Professor Wyn Rees co-organised by University of Nottingham in Malaysia and EUMCCI Defence & Security Committee Professor Wyn Rees, a Professor in the School of Politics and International Relations for Nottingham University, recently gave a lecture on Counter-terrorism and Democracy to a audience at the University of Nottingham Malaysia Campus. The talk was one in a series of lectures planned by the University this year to celebrate their ten years of existence in Malaysia and part of the EU-funded MY-EU Link project. Professor Rees commented that since 9/11 and the subsequent US led ‘war on terror’, the word ‘terrorism’ has become a part of everyday life. No longer is it used alone as an effective tactic by weak and disillusioned minorities to inspire revolutions and create political change, it has now become the talking point on every street corner, in every bar and café, and lecture hall from Washington to Baghdad and beyond. As an asymmetric form of conflict, it confers coercive power with many of the advantages of military force at a fraction of the cost. Due to the secretive nature and small size of terrorist organizations, they often offer opponents no clear organization to defend against or to deter. Professor Rees talked about the nature of contemporary terrorism and whether contemporary democracy is more, or less, vulnerable to it than other forms of government. The challenge, according to Professor Rees, which has been put forward by many

people, is that democracies are inherently weak and vulnerable and therefore not equipped to deal with terrorism. However what Professor Rees, a specialist in International Security, argued was quite the opposite. He suggested that democracy was in fact the most effective way to deal with what he called the ‘age of sacred terror’ that we now live in. The Professor acknowledged that the very nature of democracies – plurality of choice; freedom of expression and assembly; the separation of the executive from the legislature and judiciary along with an independent media and a proper rule of law – would seem to allow terrorist organisations to get their message out more effectively than they would otherwise be able to be in non-democratic states. Professor Reese then highlighted the key area in which democracy was better equipped to deal with terrorism - namely legitimacy. Legitimacy is the key in a smoothly run, well functioning democracy. Without legitimacy a democracy cannot and will not function properly. The Professor used the example of the creating of extra judicial powers by the US government in the wake of 9/11, with particular reference to Guantanamo Bay, an act which created massive problems and a loss of legitimacy for the US in terms of its worldwide credibility in light of torture claims at the US prison on the island of Cuba.

Professor Rees highlighted the international cooperation between democratic states as another key factor in the fight against terrorism in the twenty-first century. The ability of a democracy to work with like minded states has become increasingly important as terrorism does not know boundaries or borders – it can, and invariably does, move fluidly across international borders with relative ease. Professor Rees finished his interesting lecture by concluding that democracies are in fact the best and only effective way to deal with terrorism. Although democracies are cumbersome, they are also resilient. Counterterrorism must be patient. It is not a problem, according to the Professor, that can be fixed overnight. Success in this area will be small, but will come over time. It is a battle of ideas that civil societies, religious communities, political leaders, and education all have a huge part to play. The Professor concluded with a line from a famous speech delivered in the House of Commons by Winston Churchill in 1947; “Democracy is the worst form of government, except for all those other forms that have been tried from time to time.” The Talk was attended by the head and the deputy and the members of the EUMCCI Defence & Security committee, diplomats, academics and the general public. edited by P. Kelleher

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October

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EUMCCI Review

Members’ Corner

New Governance Centre Established in ICLIF Bank Negara Malaysia has announced that the Financial Institution Director’s Education program (FIDE) will now be fully managed and delivered by the International Centre for Leadership in Finance (ICLIF), under its newly formed Governance Centre. With this development, ICLIF will be renamed The ICLIF Leadership and Governance Centre. The FIDE program has been developed under a collaborative effort between Bank Negara Malaysia, Perbadanan Insurans Deposit Malaysia (PIDM) and ICLIF and was

launched in November 2008 with a vision to promote high impact boards within the financial sector specifically, and to develop world class directors who are advocates of best practices and excellence in corporate governance. To date, more than 200 directors of Malaysian financial institutions have benefited from the FIDE program and have become catalysts for change in boardroom practices within their organizations. FIDE is

currently the only governance initiative in the region that focuses exclusively on the financial sector. Under the Governance Centre at ICLIF, FIDE will expand its outreach to include participation of directors of financial institutions from outside Malaysia, covering Asia Pacific countries, Middle East and African regions.

Taylor’s University College is now Taylor’s University Taylor’s University is upgraded to university status by the Ministry of Higher Education, Malaysia. Formerly known as Taylor’s University College, it is one of Malaysia’s oldest and most reputable private higher education institutions with a track record dating back to its inception in 1969. The certificate was presented by YB Dato’ Seri Mohamed Khaled Nordin, Minister of Higher Education to Professor Dato’ Dr Hassan Said, President and Vice Chancellor of Taylor’s University in Putrajaya on 29 September 2010. Also present were Emeritus Professor Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim, Taylor’s Chairman and Dato’ Loy Teik Ngan, Group CEO of Taylor’s Education Group.

Professor Dato’ Dr Hassan expresses, “We are happy to receive University status which will further enhance our standing and enable us to better compete globally. It is indeed a mark of recognition and trust from the Ministry of Higher Education and further reiterates our acceptance as a respected institution of higher learning. As one of Malaysia’s oldest and most reputable private education institutions, Taylor’s plays a strong role in developing our nation’s human resource capital. Currently, we have a 65,000-strong alumni which continues to grow annually, and many of the graduates are now leaders in their respective fields. We will continue to work closely with the Ministry of Higher Education towards placing Malaysia as the

Presentation of the certificate by the Minister of Higher Education

Regional Hub and Centre of Excellence in Education.” According to Professor Hassan the Malaysian education system must continue to be re-evaluated and improved to create the workforce of the future. This will ensure that excellence is rewarded and talented graduates who excel in strategic and creative thinking as well as entrepreneurial and leadership skills are nurtured so that they can drive success in the decades ahead.

Konecranes Lifting Business Konecranes has been in the lifting business over 80 years and has been established in Malaysia since 1976, offering various productivity-enhancing lifting solutions to many different industries worldwide. As of 1st September 2010, Konecranes combined the current SAP and NEA regions to one. The new Asia-Pacific (APAC) Region will be headed by Mr. Ryan Flynn who has been Senior Vice President and Head of Konecranes’ operations in Northeast Asia (NEA) region since 1st September 2009, and also a part of Konecranes Extended Management Team. Recently Konecranes Malaysia has secured a level 2 Service Maintenance Agreement with Bluescope Steel. This agreement con-

October

tinues to develop our partnership with Bluescope Steel as a key account throughout the region. Konecranes is constantly developing evolutionary technologies to provide solutions for customers. Our recent innovations include: SMARTON (Industrial Crane): - Combining exactly the right features (e.g., sway control) for client’s application, SMARTON will make ordinary cranes obsolete. RopeQ and RailQ: - Ground-breaking technology of RailQ makes inspection more accurate, requires 75% less time to conduct and provides a customized 3D report.

EUMCCI Review

Konecranes Smarton Solutions

RopeQ technology increases safety, lowers rope cost and, using our magnetic-inductive inspection method, ensures wire ropes are safe for jobs.

RXH electric chain hoist: - Easy maintenance and provides good value. Its efficient single speed lifting fulfills all basic lifting needs.

Malaysia News

EU and Malaysia kick off FTA talks The future EU-Malaysia Free Trade Area will provide a long-term, stable legal framework for the relations between two equal partners. It will remove tariffs on the near totality of goods, will open up trade in services (beyond the level of commitment undertaken by both the EU and Malaysia in the WTO), will boost bilateral investment by providing a legally secure framework for our trade relations, thus providing legal certainty and predictability to our respective economic operators.

USA). Malaysia is the EU’s second individual trade partner in ASEAN (behind Singapore, but ahead of much larger and more populous countries like Indonesia, Thailand, Vietnam and the Philippines). Bilateral trade in goods reached 23 billion euro in 2009. Although EU exports grew by 1.2% on average per year between 2005 and 2009, Malaysia has consistently recorded a trade surplus of about 5bn Euros with the EU over the same period. Bilateral trade in services was approximately 4.5 billion euro in 2008.

Bilateral FTAs must be compatible with and supportive of the rules of the World Trade Organisation. This means that they must be trade creating, not trade diverting.

What are the benefits to Malaysian companies and industries, once the FTA is concluded? The FTA will give Malaysia preferential access to the EU, the world’s largest market. The EU with its half a billion of largely prosperous consumers is without doubt an attractive destination for Malaysian exports. Trading with the EU gives access to this immense, closely-knit market, in which goods, services, capital and people roam freely without borders.

The EU remains a staunch supporter of ASEAN integration. Negotiating bilateral FTAs with individual ASEAN members is a way to pave the ground for an EU-ASEAN Region-to-Region FTA. It is like producing the bricks, the building blocks that can later form a bridge. In this spirit, bilateral FTA negotiations with Singapore were launched in December last year. Malaysia is thus the second ASEAN country to open FTA negotiations with the EU. The EU is Malaysia’s fourth largest trading partner (behind Singapore, China and the

The FTA would provide a long-term, stable trade relation between Malaysia and the EU as two equal partners. The gains of an FTA can be huge. A study conducted in 2006 indicated that Malaysia would be a clear winner. Malaysia’s GDP would be boosted

by 8% by 2020 with an ambitious and comprehensive FTA. The wider the scope of the FTA and the deeper the liberalisation is, the more the gains, especially in the services area are. What are the priority areas the EU would like opened up under the FTA? Bilateral trade deals must be compatible with and supportive of the multilateral trading system (WTO). This means that they must be trade creating, not trade diverting. To make sure that this is the case, FTAs must cover “substantially all trade” and bring about a real integration of the economies of the negotiating parties. This means that they must cover also sensitive areas where liberalisation and opening to competition are more difficult, for political and economic reasons. This is all to say that the EU priority is negotiating an ambitious, far reaching FTA, covering trade in goods, technical standards, services, investment, rules on intellectual property and competition and gradual opening of the public procurement markets. Moreover, the concept of sustainable development will be factored into all aspects of the agreement. Source: www.delmys.ec.europa.eu

Implementing the Feed-in-Tariff Mechanism The Government announced that it will implement the Feed-in-Tariff mechanism under the Renewable Energy Act, to allow electricity generated from renewable energy by individuals and independent providers to be sold to electricity utility companies.

period of time from the day the system is connected to the grid,’’ an analyst said. ‘’The utility would be authorised to pass on this cost to all electricity consumers through their regular electricity bills.’’

The Feed-in-Tariff forms part of the Act that is expected be tabled before the Parliament in November. It is part of the Government’s plan to boost renewable energy contribution to Malaysia’s electricity-generation mix from less than 1% in 2009 to around 5.5% by 2015 and to 11% of all electricity generated nationwide in 2020.

OSK Research head Chris Eng said certainly, Tenaga Nasional Bhd (TNB) would not want to pay and the higher tariff would probably be passed on to the consumer. It would probably be cost-neutral to TNB as higher fees collected would be utilised by the national utility company to pay producers who uses renewable energy to produce electricity.

“The national utility would be obliged to buy renewable electricity at above-market rates set by the Government over a specific

To a question, Eng said consumers may need to pay an additional 1% to 3% more for electricity. Eng said the excess electricity

October

EUMCCI Review

produced by individuals who had solar panel installed in their homes would flow back into the TNB grid. He said TNB may have to change the electric meter at individual houses going forward to facilitate such power generating capability. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said: “Once the act is passed, we will be setting up a new agency, Sustainable Energy Development Authority (SEDA), to oversee the implementation of renewable energy and then only we can make decision on the Feed-in-Tariff mechanism.” Source: www.thestar.com

Economic Transformation Programme – A Roadmap for Malaysia

Malaysia, like most nations around the world, is facing an economical slowdown. This is mainly based on sluggish economic performance throughout the last decade, primarily due to Malaysia’s slow labour productivity growth, it’s current market position, an unsustainable fiscal position and the increasing global competition for markets, capital and talents. THE ETP is the Government economic agenda in response to these challenges. Targets to achieve until 2020 • GDP per capita from USD6,700 in 2009 to more than USD15,000 in 2020 • 3,3 million new jobs • Transformation of Kuala Lumpur/Klang Valley into world class city • 131 Concrete Entry Point Projects • 6% Growth rate until 2020 The starting point of the ETP will be the implementation of concrete changes in

specific sectors and areas of the economy. That is why the 12 National Key Economic Areas (NKEAs) were selected. The 12 NKEAs are the core of the ETP. These NKEAs are expected substantial contributions to

to make Malaysia’s

EPPs and other business opportunities identified under each NKEA are anchored to how much they contribute to GNI; they were selected based on rigorous economic and financial analysis. Any public spending will be allocated on the basis of maximising GNI per ringgit expenditure.

12 National Key Economic Areas (NKEAs)

Finally, the ETP was designed to be rigorous and transparent, with a new ETP unit under PERMANDU (Performance Management and Delivery Unit within the Prime (a) Largest NKEAs Minister’s Department) being tasked to monitor and report progress to economic performance, and they will Government leaders, the business commureceive prioritised public investment and nity and the rakyat. policy report. In conclusion, the programme focus on A bold new approach has been taken to how to become a high income nation and develop the ETP. It is the first time that any what steps has to be undertaken to reach effort of this kind has been undertaken in this target. By 2020 all necessary steps the history of Malaysia, or of any other should have been taken to lead Malaysia to developed nation. be a strong economic nation. Based on the World Bank’s current definition of highThe ETP will be led by the private sector; the income nations, Malaysia must achieve per Government will primarily play the role of a capita income of about RM48, 000 or USD facilitator. Most of the funding will come 15,000 by 2020. Therefore, achieving high from the private sector (92 percent) with income status by 2020 will require an public sector investment being used as a annual real growth rate of about 6 percent catalyst to spark private sector participation. in the next 10 years. 1) 2) 3) 4) 5) 6)

Oil, Gas and Energy (a) Palm Oil (a) Financial Service (a) Tourism Business Services Electronics and Electrical

7) 8) 9) 10) 11) 12)

Wholesale and Retail (a) Education Healthcare Infrastructure Agriculture Greater KL/Klang Valley

The effectiveness of any transformation programme often lies in the details. The ETP presents a departure from norms because it is focused on actions – rather than theoretical principles and ideas. The Government has identified 131 entry point projects (EPPs) that concretely outline actions required to grow the economy. The

After the PM’s ambitious presentation there is no doubt that the Government is focused on reaching their targets within the next 10 years. Source: www.bernama.com edited by T. Quasem

Study on the controversial ‘Cabotage’ Policy The Transport Minister will head a study group tasked to determine whether the controversial ‘cabotage policy’, in force for 29 years, should be removed. The cabotage policy, introduced in 1981, mandates that only Malaysian flagships can carry cargo between domestic ports. Exporters and importers in Sabah and Sarawak, led notably by the Federation of Sabah

Manufacturers (FSM), want the policy removed, blaming it for the higher prices of goods in the two states compared to the peninsula and arguing that the policy is stifling the two states’ economic growth, particularly in the manufacturing sector. FSM claims that the price difference of goods between Sabah and the peninsula was as much as 20%, blaming the cabotage

EUMCCI Review

policy as a key contributing factor. The Minister announced that he will meet representatives from shipping and freight forwarding firms, manufactures, as well as government agencies officials and business groups before making a decision on a review of the national cabotage policy.

October

Malaysia News

“Malaysia should be proud of their previous achievements”. PM Dato’ Sri Mohd Najib proudly declared that Malaysia is one out of 13 countries worldwide that maintained an annual growth rate of 6% over the last 25 years. Since 1970 Malaysia has reduced hardcore poverty by a substantial amount and has also become an important trading partner both inside and outside Asia. To sustain this level of economical development, the PM came up with Malaysia’s new Economic Transformation Programme. The ETP builds on the direction outlined in the tenth Malaysia Plan to develop a markedly different approach to delivering Governmental objectives. One of the most important objectives Malaysia is focusing on is its desire to transform into a high-income nation by 2020.

New Members

Belga-Zone Production Sdn Bhd

17-2A, Jalan Perdana 4/8 Pandan Perdana Cheras, 55300 Kuala Lumpur Tel: +603-9281 9698 Fax: +603-9286 1628 Email: belgazone@gmail.com Website: www.belgazone.com

Chief Executive in Malaysia Mr Lucien De Prycker Director/Professional Photographer

Berjaya Times Square Hotel, Kuala Lumpur

No.1, Jalan Imbi, 55100 Kuala Lumpur Malaysia Tel: +603-2117 8000 Fax: +603-2143 3352 Email: bth@berjayahotel.com Website: www.berjayahotel.com/kualalumpur

Chief Executive in Malaysia Mr Adrian Chung, General Manager

Emergent Ventures Malaysia Sdn Bhd

33-01, Level 33, Menara Keck Seng 203 Jalan Bukit Bintang 55100 Kuala Lumpur, Malaysia Tel: +603-2116 5888 / +6017 206 6659 Fax: +603-2116 5999 Email: sunil@emergent-ventures.com Website: www.emergent-ventures.com

Chief Executive in Malaysia Mr Sunil K Tripathi, Country Manager

No.12, Jalan SS26/13, Taman Mayang Jaya 47301 Petaling Jaya, Selangor, Malaysia Tel: +603-7880 3100 Fax: +603-7880 3200 Email: stephane.sene@konecranes.com Website: www.konecrances.com

Chief Executive in Malaysia Mr Jason Thomas General Manager, Maintenance Services, SEA

Lot 3831, Kuantan Port Industrial Area 26080 Kuantan, Pahang Darul Makmur Tel: +609-583 5505 Fax: +609-583 5506 Email: logomalaysia@logoplaste.com Website: www.logoplaste.com

Chief Executive in Malaysia Mr Luis Lampreia, Technical Director

Konecranes Malaysia Sdn Bhd

Logoplaste

October

EUMCCI Review

Brief Company Profile BZone provides all kinds of industries high grade commercial and industrial photography, and on request, specialized DI (Digital Imaging) service for technical assignments to clients all over the world. Besides the commercials, our Find Art Photography is sold and distributed worldwide.

Brief Company Profile Berjaya Times Square Hotel, Kuala Lumpur, a five-star hotel under the hospitality arm of the public listed Malaysian conglomerate Berjaya Corporation, is a prominent landmark strategically located in the heart of the cityâ&#x20AC;&#x2122;s banking, commercial and vibrant shopping district. With a total of 650 suites complete with international-standard amenities Berjaya Times Square Hotel, Kuala Lumpur is definitely an excellent setting where business complements leisure.

Brief Company Profile Emergent Ventures (EVI) is one of the leading advisory firms in the field of Climate Change Mitigation (Compliance-CDM, Voluntary). We work across a number of sectors such as Renewable Energy (bio-mass, hydro, wind), Waste to energy, Energy Efficiency, Waste Heat Recovery, Plantations etc.

Brief Company Profile Konecranes has started its presence in lifting businesses for over 80 years, dealing with lifting equipments and services that significantly improve productivity to a wide range of industries worldwide.

Brief Company Profile Logoplaste is an industrial group manufacturing rigid plastic packaging for the food and beverage, personal and household care and oil and lubricants sectors. The most up-to-date technologies in plastic conversion and competences in packaging design and engineering are used to deliver optimized industrial solutions.

M+W High Tech Project Sdn Bhd

The University of Nottingham Malaysia Campus

Chief Executive in Malaysia Mr. Simon Burley, General Manager

Level 24, Main Block, Dataran Kewangan Darul Takaful, No.4, Jalan Sultan Sulaiman 50000 Kuala Lumpur Malaysia Tel: +603-2263 3888 Fax: +603-2263 3855 Email: clientstrategy@iclif.org Website: www. iclif.org

Chief Executive in Malaysia Mr Rajeev Peshawaria, Chief Executive Officer

Jalan Broga, 43500 Semenyih Selangor Darul Ehsan, Malaysia Tel: +603-8924 8000 Fax: +603-8924 8013 Email: enquiries@nottingham.edu.my Website: www.nottingham.edu.my

Chief Executive in Malaysia Prof Ian Pashby, CEO and Provost

Brief Company Profile We are a leading global provider of integrated facility engineering services for high technology manufacturing facilities and systems. We provide facilities engineering services including consulting, facility and clean room design, construction and project management, process equipment hook-up, upgrades and retrofits, as well as facility operation and maintenance services to a number of industries such as microelectronics, scientific and research, life sciences and photovoltaic.

Brief Company Profile ICLIF is a full service provider of usable leadership development, organizational performance, corporate governance programs and advisory services that are designed to enable sustainable and responsible business growth.

Brief Company Profile The University of Nottingham is globally recognised as one of the world’s leading universities, celebrated for its commitment to the highest quality teaching and internationally renowned, world-class research.”

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October

New Members

The Iclif Leadership and Governance Centre

20th Floor, Unit A, Gurney Tower No. 18 Persiaran Gurney 10250, Penang Tel: +604-370 4500 Fax: +604-370 4510 Email: info.my@mwgroup.net Website: www.mwgroup.net

GLOBAL BUSINESS ADVISORY (GBA) is a one-stop solution provider specializing in human capital development, company formation & company secretarial, employment permits, corporate advisory, tax & accounting, intellectual property, property marketing & ﬁnancing, strategic business alliances, joint-venture partner search and mergers & acquisitions. GBA specializes in company set-ups in Malaysia including partner search and mergers & acquisitions and we ensure a sound platform for them to succeed. We provide exceptional personalized and quality services with clients ranging from SMEs to MNCs across all industries. Our consultants possess multi-dimensional skills and experience from myriad exposures. At GBA we are always sensitive towards securing the best for our clients. “Our sincere thanks to you for your commendable efforts in successfully providing various services to Petrolink recently, such as executive search, company formation, company secretarial, payroll administration & accounting services. Your collaborative effort has helped us prepare a good platform for the start-up of our operations in Malaysia & this region” – Petrolink, Oil & Gas.

“We are happy with GBA’s services in helping us set up our ofﬁce in Malaysia and will be pleased to recommend them to others” – Carlos Lopez Montero, GMV Innovating Solutions. Our contact information: 1.02A Level 1, Menara LYL, No.12 Jalan 51A/223, 46100 Petaling Jaya, Selangor. Tel: +603 7955 3970/012-213 6688 Fax: +603 7958 8972 E-mail: vivia@gbadvisory.com.my