2017 scmp malaysia report

Friday, December 22, 2017

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SPECIAL REPORT ¢

INSIDE: 11-PAGE SPONSORED SECTION IN COOPERATION WITH DISCOVERY REPORTS

MALAYSIA BUSINESS REPORT ECONOMY

MESSAGE

BRIGHT OUTLOOK Economy has seen robust growth over the past year, while inflation has moderated and the ringgit continues to strengthen against the US dollar. Reports by NAZVI CAREEM

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alaysia’s economic outlook is looking brighter with better-thanexpected growth figures , providing a boost to Prime Minister Najib Razak ahead of general elections in 2018.

The controversy surrounding Malaysia’s state investment fund, 1MDB, which was reported to be 42 billion ringgit (HK$80.3 billion) in debt when the scandal first erupted in 2015, still lurks in the background as opposition forces led by former leader and ex-mentor Mahathir Mohamed seek to topple Najib.

However, on management of the overall economy, Najib has a strong hand as Malaysia enjoys robust growth over the past year.

The economy grew at a faster pace of 6.2 per cent in the third quarter, according to Malaysia central bank, Bank Negara, driven by domestic demand, particularly in the private sector.

In addition, headline inflation moderated to 3.8 per cent because of lower transport inflation – particularly petrol prices – while the ringgit continues to strengthen against the US dollar.

The 5.8 per cent growth recorded in the second quarter was already better than expected and the third-quarter results mean that Malaysia’s economy is growing at its fastest pace since the second quarter of 2014.

Bank Negara said the economy was expected to register higher growth for 2017.

“Given the continued strong performance in the third quarter, the Malaysian economy is on course to register growth that is close to the upper range of the official projection of 5.2-5.7 per cent,” the bank said.

“Domestic demand is expected to support this expansion. On the external front, exports will continue to benefit from the favourable global demand conditions.

“Headline inflation is expected to average at the upper end of the forecast range of 3-4 per cent for 2017 as a whole.”

The ringgit has been one of the best-performing currencies in the region over the past year.

The currency experienced a surge in November, appreciating 3.47 per cent month-on-month to around 4.09 to the US dollar by mid-December.

AmBank Economics Research said that the ringgit could expect to strengthen in

Malaysia’s economy is expected to register high growth for 2017, near the top end of the officially projected 5.2-5.7 per cent. Photo: Tourism Malaysia

[Malaysia’s] economy has grown vibrantly in 2017 NATIXIS

2018 on the back of improving macro fundamentals and fiscal position, along with healthy consumer and business sentiment, potential normalisation of the policy rate and the currency’s general undervaluation.

“With an undervalued ringgit – our fundamental analysis shows a fair value of 3.95 while the real effective exchange rate presents a fair value of 3.76 – there is still plenty of room for this laggard currency to gain momentum, it said..

“We expect Bank Negara Malaysia to consider reviewing its current monetary policy by factoring in a 25 bps [basis point] rate hike in January 2018 from its current rate of 3 per cent with

rates expected to normalise at 3.50 per cent,” it said.

Global market research firm Natixis said the Malaysian government made two important moves in helping to sustain vibrant growth in 2017 – allowing the ringgit to depreciate and constraining the deficit.

“Malaysia’s economic outlook has brightened, thanks to a rise of gradual oil prices and an uplift of global trade,” it said.

“The economy has grown vibrantly in 2017 [real GDP growth rates averaged 5.9 per cent in the first three quarters],” it said.

It added that the Malaysian authorities had committed the ringgit to depreciate, which would make exports far more attractive, but fuel inflation.

However, Natixis said there might be a price to pay for fiscal consolidation in terms of investment in future growth, with the revenue ratio unlikely to recover materially.

This may force the government to cut development expenditure further, though growth is expected to stay positive with Natixis projecting 5.4 per cent in 2018.

Natixis expects inflation to rise to 4.5 per cent in 2018 on the back of robust domestic demand and higher oil prices.

“We expect the ringgit to outperform the rest of Asian currencies,” it said.

“With robust growth along with inflation edging up, we expect the Bank Negara Malaysia to hike 50 bps to 3.5 per cent in 2018.”

The company also flagged the general election as a potential obstacle.

“Prime Minister Najib Razak is busy preparing for the general election – expected to be held in 2018 – by proposing a populous budget,” it said.

“This limits policy space for longer-term development.”

The central bank, too, is implementing several measures to curb capital flows.

“Although it will likely prove effective at shoring up the currency and sheltering the financial sector from spillovers of capital flows, foreign investors are likely [to be] deterred in the short-term from investing in Malaysian securities.”

In its quarterly reports, Bank Negara expressed concern about

the imbalances of the property market.

It said supply-demand imbalances in the residential and commercial property markets have increased since the problem was first flagged by the bank two years ago.

The bank said that there was an oversupply of non-affordable housing.

“History has shown that excesses in the property market can pose risks to the wider economy,” it said.

“Given that there are imbalances in both the residential and commercial property markets in Malaysia, this is a source of concern as the property sector has linkages to more than 120 industries, collectively accounting for 10 per cent of GDP and employing 1.4 million Malaysians.

“Currently, the property market is characterised by an oversupply of non-affordable housing and idle commercial space, and conversely, an undersupply of affordable homes.

“This situation could worsen if the current supply-demand conditions persist.”

It gives me great pleasure to be able to address you in the South China Morning Post’s “Malaysia Business Report”. This year was significant for Malaysia and Hong Kong, and publication of this report will help highlight areas of cooperation and opportunities that could be explored.

For one, we witnessed the signing of the Asean-Hong Kong Free Trade Agreement during the 31st Asean Summit on November 12.

This is a milestone for the Asean nations and Hong Kong as it is the 50th anniversary of the founding of the 10-member regional organisation.

In conjunction with Malaysia and Hong Kong’s 20 years of relations, the Hong Kong Trade Development Council’s 3rd edition of “In Style. Hong Kong” was successfully held in Kuala Lumpur on November 7 and 8, where more than 40 exhibitors showcased Hong Kong brands in home electronics, gifts and premium, fashion accessories and watches and ecofriendly products.

Malaysia’s Asian Strategy and Leadership Institute also successfully held the 9th World Chinese Economic Summit in Hong Kong on November 13 and 14, with participation of, among others, Malaysia’s Deputy Prime Minister Ahmad Zahid Hamidi and Minister of Transport Liow Tiong Lai. During the deputy prime minister’s keynote speech at the event he reiterated that Malaysia welcomes Hong Kong as a key investor for Asean.

From January to September 2017, Malaysia ranked 10th among Hong Kong’s principal trading partners. For the same period, Malaysia was fourth among Asean nations in terms of trade relations with Hong Kong.

In the “Belt and Road Initiative”, Malaysia is poised to become Hong Kong’s strategic partner in many areas, especially areas in which Malaysia excels, such as Islamic finance and halal food and products certification and logistics.

During the 13th World Islamic Economic Forum held in Sarawak, Malaysia, from November 21 to 23, Prime Minister Najib Razak highlighted that Malaysia was top for Islamic finance and secondplaced for halal travel and halal pharmaceuticals, and cosmetics in the Thomson Reuters report on the State of the Global Islamic Economy 2016/2017.

Malaysia was recognised as the “best developed ecosystem for Islamic finance” and having “the strongest regulatory framework”.

There is much potential for the development of Malaysia-Hong Kong trade and business relations.

One such opportunity is in the expansion of Malaysia’s infrastructure, in particular, for projects that are underway including the East Coast Rail Line, Pan-Borneo Highway, SingaporeKunming Highway, Singapore-Kuala Lumpur high-speed rail, Johor’s Iskandar Malaysia, Kuala Lumpur’s Bandar Malaysia, Malacca’s “Melaka Gateway” and the Kuala Lumpur International Airport’s “Aeropolis” Digital Free Trade Zone Park.

The KLIA Aeropolis DFTZ Park will be Alibaba’s first regional hub outside China and its groundbreaking ceremony in November was attended by Alibaba’s Jack Ma and Malaysia’s prime minister.

I am sure that Hong Kong businesses and investors can find suitable partners and avenues of investment in Malaysia.

I look forward to seeing further potential for partnerships and the deepening of engagement between Malaysia and Hong Kong and the Malaysian consulate in Hong Kong is always ready to help in this process.

I hope many more Hong Kong enterprises will seize the opportunities that are available while Malaysia continues to develop in the years to come.

Sirajuzzaman Mohamed Ariffin Consul-General of Malaysia to Hong Kong and Macau

POSITIVE PROSPECTS Business performance expectations in Malaysia, Oct 17 – Mar 18 Industry (agriculture, mining, manufacturing, and electric and water) +30.2 per cent Construction +24.0 per cent Wholesale and retail trade +26.1 per cent Services (hotels, transport, communications, finance, insurance, real estate, and information and communication technology) +32.1 per cent All sectors +29.9 per cent Note: Results obtained from quarterly Business Tendency Survey, covering 465 main establishments in Malaysia. Source: Department of Statistics Malaysia

CULTURE

Religious festivals mean ‘going home’ Malaysia boasts a diverse population in terms of ethnicity and the religions followed by its people.

The country of almost 30 million is majority Muslim Malay, but there is a large proportion of Buddhists, Hindus, Christians, Sikhs and others, along with various tribal traditions followed by the indigenous people in the peninsula and Borneo states of Sarawak and Sabah.

The different races live side by side in peace and, while they don’t always understand each others’ beliefs and lifestyles, there is one aspect – apart from their nationality – that every Malaysian is aware of whenever a major religious holiday approaches – traffic chaos.

The main religious holidays that afford the public two days off work are Eid-ul-Fitr, known as Hari Raya Eidal Fitri among the Malay Muslims, and the Lunar New Year that is followed by the Chinese and Buddhists.

The Indian festivals of Deepavali and Thaipusam both

enjoy their own one-day public holiday, but whatever the occasion, they invariably involve the concept of balik kampung, which means “going home to your ancestral village”.

With about 70 per cent of Kuala Lumpur’s 1.6 million population originating from other parts of the country, holiday time means massive traffic jams along the major highways and government roads, particularly when the days off are immediately before or after the weekend – which most of the time they are.

Millions of vehicles are involved and motorists who choose to travel during peak times often undertake journeys of 12 hours or more when it usually takes about four hours.

The government and police make regular announcements on social media about the latest traffic congestion points, while roadside rest stops do a thriving business.

Hari Raya Eidal Fitri falls one day after the end of the Muslim fasting month of Ramadan – the

ninth month of the Islamic calendar – during which adherents go without food and drink between sunrise and dusk.

Officially, two days of public holidays are provided but festivities usually last for a month. After people return from their villages, households traditionally host an “open house” at least once during the month when the doors of their homes are open to family and friends, or even passers-by, to enjoy an outdoor buffet meal.

The Lunar New Year is celebrated by the Chinese population of more than six million. Again, with two days of official holidays, it gives the entire population another reason for a balik kampung … and more traffic woes.

The two weeks of Lunar New Year celebrations feature plenty of fireworks displays, especially in areas that have large Hokkien populations.

While driving in Kuala Lumpur, or any other major city such as Johor Bahru or Penang, one can pass by colourful

mini-firework displays that spray into the night sky.

In the past, one of the key preparations for Lunar New Year, for all Malaysians, was stocking up on food items because, with most of the businesses owned by ethnic Chinese, cities would go into shutdown for a few days while people headed back to their ancestral villages.

However, with major hypermarkets such as Tesco, Giant and AEON Big staying open 24/7 all year round, it is no longer a tradition.

Deepavali and Thaipusam are celebrated by Malaysia’s ethnic Indian Hindus – mostly Tamils. Deepavali, or the Festival of Lights, is celebrated either in October or November depending on the cycle of the moon.

Thaipusam is held during the full moon of the 10th month of the Hindu calendar, which usually falls between midJanuary and mid-February.

On the opening day of Thaipusam, devotees gather in

Malaysians celebrate Citrawarna, or Colours of Malaysia, in Kuala Lumpur in October. Photo: Tourism Malaysia their thousands to make a procession along Kuala Lumpur’s streets to the massive statue of Lord Murugan in the Batu Caves on the outskirts of the city. Many are dressed in colourful costumes with some

choosing to pierce their skins with spikes.

Christmas is celebrated by more than 2.6 million people in Malaysia of various ethnic backgrounds, although unlike many other places, there is no

recognition of Boxing Day on December 26. Another one-day holiday is devoted to the birthday of the Buddha, with around 20 per cent of the country being Buddhists – the second biggest religion.

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Friday, December 22, 2017

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MALAYSIA BUSINESS REPORT ¢

Sponsored section in cooperation with Discovery Reports

KLIA AEROPOLIS: AN AIRPORT CITY AND SERVICE LEADER IN THE MAKING Outlet Park will explore a fresh ambient experience with its sky walk and river walk themes, which are in line with the “paradise village” architectural concept of Phase 1.

“We expect our locators to grow tremendously with the global market,” Ghazali says. “We have the track record as a government-linked corporation with more than 45 per cent of shareholding from the national treasury and pension fund. Foreign businesses trust us with a shareholding of approximately 36 per cent.”

In addition to this, KLIA Aeropolis comes with the full measure of tax and other financial incentives given to investors under the ETP. Business clusters at the city are all aligned with the government’s national agendas such as the National Logistics and Trade Facilitation Masterplan (2015-2020), National Aerospace Industry Blueprint (2015-2030) and many national key economic areas such as business services and tourism.

Reports by Cassandra Carothers and Mathilde Moree

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ffering businessmen and tourists everything they need within the vicinity of Kuala Lumpur International Airport (KLIA), KLIA Aeropolis has been master-planned by airport operator Malaysia Airports to seamlessly blend business and leisure.

Malaysia is emerging as a principal Asean partner in the Belt and Road Initiative, with hard and soft infrastructure, and connectivity being the key driving forces. In collaboration with the Malaysian government and Jack Ma’s Cainiao Network, Alibaba’s logistics arm, the airport city hosts the first electronic world trade platform (eWTP) outside China. The eWTP serves Asean and Oceania and is part of the Digital Free Trade Zone (DFTZ) initiative. Meanwhile, Tokyo-based global real estate developer Mitsui Fudosan is working with Malaysia Airports in constructing the Mitsui Outlet Park in KLIA Aeropolis. With the second out of three planned phases fully constructed, the outlet mall will be Mitsui Fudosan’s first commercial property investment in Southeast Asia.

“Malaysia Airports is undergoing an exciting transformation from an airport operator into an ecosystem manager. We are expanding the KLIA network hub into an integrated city,” says Badlisham Ghazali, Malaysia Airports managing director. “KLIA is evolving from a transport interchange into a maturing centre of global economic activity, and KLIA Aeropolis will stand as the airport’s multimodal business core.”

Spanning more than 100 sq km of aviation, business and leisure space, KLIA Aeropolis is at the heart of Asean. With more than 1,300 flights across the region, locators at the airport city can reach more than 600 million consumers and look forward to more than 20 township developments and double-digit population growth rates in the surrounding areas. In particular, the Asean Economic Community estimates the overall real value of Asean’s gross domestic product to reach US$5 trillion by 2020.

A strategic pillar in Malaysia Airports’ five-year business plan “Runway to Success 2020”, KLIA Aeropolis has three

Badlisham Ghazali, managing director clusters – air cargo and logistics; aerospace and aviation; and meetings, incentives, conferences and exhibitions (MICE), including leisure.

The air cargo and logistics cluster Malaysia Airports plans to expand KLIA to become a regional multimodal transhipment hub. Besides airfreight, infrastructure is also being set up to support sea freight and land transhipment such as cross-border trucking cargo. The company is committed to developing KLIA into a cargo and logistics hub in collaboration with up-and-coming regional transhipment and cargo feeder centres in other airports across Malaysia. These development plans are intended to capitalise cargo and e-commerce megatrends, underpinning trade growth and further supporting Asean international trade. One of the core vehicles in achieving these goals is the DFTZ. Malaysian Prime Minister Najib Razak and Alibaba Group chairman and founder Jack Ma last month launched DFTZ, a regional logistics hub aimed at serving small and medium-sized businesses in Asean and Oceania. At the ceremonies, Alibaba went live with its electronic trading hub to serve 1,972 merchants.

Malaysia Airports also announced during the launch the incorporation of Cainiao KLIA Aeropolis, a joint venture between Malaysia Airports’ wholly owned subsidiary MA eLogistics and Cainiao HK, Alibaba’s logistics arm. The joint venture will develop cargo terminals, sorting centres, warehouses, fulfilment centres and other facilities for the e-commerce industry.

Airport Central, Kuala Lumpur International Airport The strategic collaboration with Alibaba distinguishes KLIA Aeropolis DFTZ Park to be the first Electronic World Trade Platform hub outside of China. It is Malaysia Airports’ ambition and priority to ensure a successful collaboration with Cainiao HK to revolutionise the e-commerce and logistics sector in Malaysia.

The goal is to make KLIA Aeropolis DFTZ Park a regional fulfilment centre for the consolidation and distribution of ecommerce B2C and B2B merchandise within Asean and Oceania and later on catapulting to become a global hub. The project will consist of a single phase development, built on a land area of approximately 24 hectares.

Malaysia’s excellent flight connectivity and surplus capacity within Asean will facilitate the plan of the new joint venture to re-route Asean’s transhipment volume via KLIA. Designed as a regional multimodal transhipment hub, KLIA Aeropolis will support the movement of goods for DFTZ also through sea and land including crossborder trucking.

With additional business injected by Alibaba, Malaysia Airports expects these initiatives to double the cargo volume in KLIA to 1.25 million tonnes per annum

within 10 years. This significant volume growth will enhance airline profitability, making KLIA a highly feasible destination for airlines.

The aerospace and aviation cluster The aerospace and aviation cluster, on the other hand, comprises various government-favoured entry-point projects that include maintenance, repair and overhaul, original equipment manufacturing and aerospace engineering services.

Regional hubs for private jet aircraft and aero-manufacturing services will attract critical mass and help Malaysia become the region’s leading aviation business centre. This is also in line with the National Aerospace Blueprint (20152030), which aims to position Malaysia as Southeast Asia’s No 1 aerospace nation and an integral part of the global market.

“We are excited to create value through smart and synergistic collaborations. We welcome business partners to achieve mutual benefits and provide solutions in the areas of supply chain, human capital, infrastructure, equipment and technology,” Ghazali says.

The aerospace ecosystem in Subang, for instance, hosts GE Aviation, Global Turbine Asia-Safran Helicopter Engines, Spirit AeroSystems and Airbus Helicopters Malaysia.

Spirit AeroSystems is one of Boeing’s largest aircraft parts supplier that has been attracting a variety of tier-2 and tier-3 players to Subang since 2007. Operating on a 242,000 sq ft, built-to-suit manufacturing and assembly facility, Spirit AeroSystems also serves Airbus.

Parts are shipped from the main subassembly facility of Spirit AeroSystems in Subang to the final wing assembly unit of Airbus in Broughton, Britain.

Meanwhile, Subang Helicopter Centre hosts seven players including Airbus Helicopters Malaysia within an 8-hectare site. Airbus Helicopters operates on a 100,000 sq ft, built-to-suit facility complete with an office building, dedicated hangar and a simulator centre, which is the first of its kind in Asean.

The MICE and leisure cluster The MICE and leisure cluster, meanwhile, is committed to expanding KLIA’s service portfolio, thereby giving passengers a richer business and entertainment experience.

“We are creating airports as destinations in themselves,” Ghazali says.

“By incorporating business with leisure, we are extending the boundaries of KLIA Aeropolis.”

This development cluster is aligned with Malaysia’s Economic Transformation Programme (ETP) in the tourism sector, particularly with the Kuala Lumpur Tourism Masterplan (2015-2025) billed as “Initiative 10.14 – Expand Connectivity to KL”.

The Mitsui Outlet Park is Malaysia Airports’ first non-airport real estate development project under the MICE and leisure cluster. Malaysia Airports signed a joint venture with Mitsui Fudosan in 2013 to develop Mitsui Outlet Park. The development of Phase 2 is ongoing and is targeted to commence operations in February next year.

Being built on a 27,500-square-metre site near Mitsui Outlet Park, Phase 2 will host 60 more shops and 500 more car park lots to complement the existing 140 stores and 2,100 parking spaces.

The development project will introduce more premium brands to the outlet and is bound to increase the presence of luxury international and local brands in fashion, cosmetics, sportswear and accessories. Phase 2 of the Mitsui

Other future plans and developments Malaysia Airports is just warming up. On the planning board is the Airport Central, a central business district linking KLIA and KLIA2. As the animated core of KLIA Aeropolis, Airport Central will create a destination for locals and tourists. It will feature commercial amenities, attractions and spaces that create a robust work and play environment. Airport Central covers businesses, leisure, entertainment, hotels, offices, campuses, museums and other diverse cultural assets.

KLIA Aeropolis will also build a business park, grouping related commercial, business and industrial development components under one attractive address. The activities in the business park will be well connected through a multimodal transport hub and a network of pedestrian walkways and bicycle lanes. Equipped with modern and smart infrastructure, the park will boast a highly reduced carbon footprint.

“Capitalising on our strategic advantages and global market uptrends, KLIA Aeropolis will accelerate the realisation of Malaysia Airports’ vision of becoming a ‘global leader in creating airport cities’,” Ghazali says.

GREENFEED REVOLUTIONISING FARMING WITH MODERN AGRICULTURAL PRACTICES Sustainable farming begins in the soil, and advanced materials such as slow-release fertiliser are helping maintain ecological balance across Southeast Asia.

“We have successful results around the world showing that fertiliser applied once or twice is enough to sustain desired crop yields,” says Tan Yu Wea, managing director of Greenfeed Malaysia, manufacturer of palletised slow-release fertiliser that is revolutionising farming in the region.

Greenfeed is an advocate for reduced fertiliser use in commercial farming. It is a lone voice in the industry, but its proposition is backed by decades of research and development. Driven by a passion for innovation, the company has developed some 500 formulations to respond to different dynamics such as dry soil, pollination in mature farmlands, ancient or irrigation farming methods and diverse soil types across Southeast Asia.

To gain headway in transforming agricultural practices, Greenfeed reaches out to farmers in their own language. “We invest not only in the product itself, but also in technology to make it convenient for farmers to learn by themselves. We have a mobile application and video tutorials in localised languages that show them how it’s done,” Tan says.

Tan Yu Wea, managing director Greenfeed welcomes collaborations with research institutes and other industry players such as technology developers on, for instance, the application of sensors and automation in farm production. It is particularly keen on deepening partnerships in mainland China, Taiwan, Vietnam, Myanmar and the South Pacific over the next five years.

“We need to find a better approach to solve pollution problems. Everyone can see that the environment has changed

drastically. Why has it changed so much?

Perhaps conventional practices are a little off,” Tan says.

Developing state-of-the-art technology to promote soil and plant sustainability is Greenfeed’s contribution to the ecological imperative. Reducing fertiliser use directly impacts carbon mitigation. It also radically changes the future trajectory of commercial farming.

“Quality is better than quantity. That is fundamental,” Tan says.

DISCOVERY COMMUNICATIONS BETTER CONNECTS BUSINESSES THROUGH WRITING SERVICES Leading global media and campaign production company Discovery Reports Group (DRG) has told the stories of more than 3,000 companies worldwide.

From Fortune 500 companies and small- to medium-sized enterprises to government entities and trade organisations, these have been featured in DRG’s special country-focused business reports published in the South China Morning Post (SCMP).

Aspiring to provide a more comprehensive service offering, DRG has expanded to content writing services through its new unit, Discovery Communications.

“Clear, concise communication is a lasting tool that strengthens the connections between a company and its stakeholders, including employees, customers, investors, suppliers, the

community, and the world as a whole,” says Angela Gaspar, DRG’s managing partner.

“With Discovery Communications, we provide our clients with a distinctive voice that resonates with the target audience, whether to increase brand awareness, enhance human resources efforts, or encourage clients to take action.”

Discovery Communications guarantees editorial excellence, relying on a team of best-in-class journalists who have produced premium written content for the SCMP, the International Herald Tribune and Fortune Magazine.

It creates original content and edits existing corporate publications, from press releases and marketing materials to newsletters and company presentations.

In delegating writing services to DRG,

companies and organisations can focus more on their core operations, achieve higher sales and find perfect business partners.

DRG’s writing services unit was launched in Singapore earlier this year and has seen strong reception.

Singaporean companies have sought DRG for its expertise in content creation and editorial support for a wide range of requirements, from editing existing web content, brochures and company presentations to writing technical white papers.

“We are now extending our writing services to clients participating in our 2017 Malaysia Business Report,” Gaspar says.

“We serve as a strategic editorial partner to convey their messages to potential customers and partners in the most concise and effective way possible.”

Friday, December 22, 2017

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MALAYSIA BUSINESS REPORT ¢

PROMOTING A SUSTAINABLE WAY FORWARD FOR OIL PALM CULTIVATION

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s one of the earliest traded commodities, palm oil has undoubtedly provided many benefits to health, society, the economy and environment, and yet the ubiquitous use of the staple oil-bearing crop has earned a controversial reputation of late.

The palm oil industry is hit on disparate sides, from health risks due to the oil’s higher saturated fatty acid composition, to threats of deforestation from expanding plantations influenced by heightened demands from the food, oleochemical and bioenergy industries.

These issues continue to haunt palm oil producers and upholders despite numerous research studies that continue to disprove the negative impacts of producing palm oil.

For decades, the Malaysian Plantation Industries and Commodities Ministry (MPIC) and associated agencies, Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC) have been persevering to show the world the truth about palm oil.

Does palm oil cause grave harm, or is it nature’s gift to the world?

Mah Siew Keong, Malaysia’s minister of plantation industries and commodities, invites manufacturers, consumers and all who care to know more about the oil palm to look at the country’s journey, unravelling palm oil’s varied contributions to health, the economy and sustainability.

Malaysia’s global palm oil ambassador As the second-largest producer of palm oil, and a major exporter, Malaysia has greatly benefited from producing palm oil and its derivatives. Mah represents the interests of palm oil growers and small farmers, and is on a mission to promote a better understanding of the various economic, technological and environmental advantages of Malaysian palm oil and its products.

As the secondlargest producer of palm oil, and a major exporter, Malaysia has greatly benefited from producing palm oil and its derivatives “We speak based on available facts, and the information we disseminate are all verifiable,” Mah says. “Palm oil provides many benefits, but we are also the first to acknowledge if there are problems that need solving. We apply a policy of continuous improvement.

When an issue is pointed out to us, we do not sweep it under the rug. We take action and corrective measures to constantly improve the industry.”

To date, close to 20 million tonnes of palm oil are being produced in Malaysia each year. Valued at approximately 72 billion Malaysian ringgit (HK$133 billion) in 2017, the relatively inexpensive, golden-coloured edible oil is traded in 160 countries, and provides jobs and livelihood to more than half a million people in the country. More than 40 per cent of oil palm cultivation in Malaysia is owned by nearly 640,000 small land holders, and the industry has contributed to one of the largest poverty alleviation projects in the world.

Palm oil health benefits: truth vs myth Palm fruit oil is consumed in more than 160 countries worldwide. It is used generally as a refined vegetable oil that can be purchased in any local store and incorporated in everyday dishes. Many of today’s food products contain palm oil such as baked goods, instant noodles, cake mixes, protein bars, potato chips, chocolate and other snacks.

While healthy diet advocates sometimes discredit palm oil for its higher saturated fatty acid content, studies, however, show palm oil and its minor constituents are linked to several health benefits including protecting brain function, reducing heart disease risk factors and improving vitamin A absorption. The potential to prevent stroke through palm vitamin E tocotrienols is also a hot topic.

One large meta-analysis of human dietary studies found that individuals who followed palm oil-rich diets compared to diets high in trans fats exhibited lower total and low-density lipoprotein cholesterol levels. Moreover, palm oil, like olive oil, elicited blood cholesterol neutral effects in another set of studies.

“The outcomes of these studies demonstrate that if you consume palm oil at recommended levels of fat intake and in a well-balanced diet, palm oil does not trigger increases in blood cholesterol levels, and therefore does not

pose a risk for heart disease,” Mah says, emphasising that his administration continues to tirelessly expose only research-backed truths regarding palm oil, and urges consumers to be educated against myths.

Journey towards sustainability In recent years, the industry faced ethical concerns from various groups regarding palm oil production’s effects on the environment, wildlife and native communities. These groups have claimed that oil palm expansion is implicated in tropical deforestation, contributing to global warming and threatening tropical ecosystems and biodiversity. Notably, emotive campaigns with pictures of threatened orangutans have instigated strong negative reactions from consumers.

“To be accurate, our actions have ensured that the orangutan population in Malaysia is no longer compromised, and we have initiated plans to conserve the orangutans,” Mah says. “These efforts are our collective responsibility, and in the coming years, more will be done in collaboration with like-minded nongovernmental organisations towards wildlife conservation.”

Mah believes that neither economy nor environment needs to be compromised. Oil palm cultivation can be managed such that it preserves a significant level of biodiversity, especially with proper management of riparian reserves, peatlands, satellite-aided spatial planning and the ministry’s commitment to zero-burning and zero-deforestation of virgin forests.

Demonstrating this commitment, Malaysia retains about 56 per cent of its forests, including some of the world’s oldest virgin forests, despite the country’s reliance on agriculture and forest resources for livelihood.

Oil palm plantations also add to the country’s total tree cover. Together with rubber, coconut and cocoa, Malaysia’s green expanse covers more than 70 per cent of the country’s 32.86 million hectare land mass.

Observing strict regulations governing the expansion of oil palm plantations, Malaysia has instituted a land use policy that ensures economic development does not come at the expense of the environment and the nation’s biodiversity. The oil palm’s high yields ensure that Malaysian small farmers are able to prosper even with only 5.7 million hectares of land under cultivation.

These initiatives are also in accordance with certification standards and calls for the trade in certified sustainable palm oil (CSPO). Early this year, Mah took the bold measure to force the whole industry towards certified palm oil production by making the Malaysian Sustainable Palm Oil (MSPO) scheme mandatory. “By the end of 2019, Malaysia will meet demands such as the Amsterdam Declaration for CSPO through the mandatory MSPO certification,” Mah says.

“Over the years, we have created a very credible frontier for quality assurance, good agricultural practices and sustainable production of palm oil even before the talk of certified sustainable palm oil emerged,” Mah says. “Our response is not just marketing. We do a lot of overseas coaching through imparting technical and product formulation knowledge to the end-user, especially in developing countries. Apart from that, we also have environmental considerations, which we are rapidly putting into action.”

Backed by 100 years of responsible plantation practices on legally approved agricultural land, the Malaysian palm oil industry strives towards continuous improvement with annual investments of more than 250 million ringgit in research and development, and conservation through the MPOC-funded Malaysian Palm Oil Wildlife Conservation Fund.

“We actively collaborate with many leading institutions around the world and have a track record of many credible palm-based discoveries and innovations,” Mah says.

The way forward Despite its high productivity, the oil palm poses many challenges and opportunities.

One of Mah’s primary goals is to further improve yield per hectare from the current national average of four metric tonnes per hectare to at least six metric tonnes per hectare. Research has already mapped out the oil palm genome, and this knowledge will define the next generation of oil palm cultivars. Another challenge is mechanisation to reduce labour dependency on the field. The challenge has become tricky, and the ministry has offered a reward of US$1 million for viable mechanisation ideas and tools.

The large volume of biomass – more than 100 million tonnes annually – produced from palm oil processing presents another opportunity. In the past, these were mainly recycled as fertiliser for oil palms, but lately, new uses such as biochar and second-generation

biofuels are being discovered. These generate cleaner green energy and produce fewer emissions than traditional coal or fossil fuels.

Even waste by-products like palm oil mill effluent (POME) can be transformed into an industry boon.

Capturing POME and trapping methane emissions can power entire mill operations. The excess power generated can be channelled into local electricity grids while limiting greenhouse gas emissions. Plans to build nearly 400 methane capture facilities are underway.

“Overall, we are investing in technology that aims to better utilise biomass and optimise efficiency throughout the palm oil supply chain,” Mah says. “We need to put in the right technology, and the right industrial framework to efficiently implement that in Malaysia. We are investing in evidence-based solutions that will propel us forward.”

Mah Siew Keong, minister of plantation industries and commodities, Malaysia

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STRONGER LEADERSHIP GUIDING KFH MALAYSIA TOWARDS RESURGENCE AS LEADING ISLAMIC BANK Simpler, better, faster. These three key words form the cornerstone of a strategy that is seen to propel Kuwait Finance House Malaysia (KFH Malaysia) from its present level to a stronger position in the region.

Thanks to fundamental adjustments that demonstrate efforts of Kuwait Finance House (KFH) to grow its Malaysian subsidiary, the outlook for KFH Malaysia has never been rosier.

“After changes to the management structure in Kuwait, we came to bring the Malaysia arm in line with the group and to make sure that we drive forward to become the dominant player in Southeast Asia,” says CEO David Power.

Groomed as the regional hub for KFH in the Far East, KFH Malaysia had 18 vacant management positions when Power took over.

Within a short period, he took steps to make sure that the bank had the right people on board who could assess the problems and come up with short-, mediumand long-term solutions.

As the world’s oldest Islamic bank, KFH is preparing to dominate the most populated Muslim countries. Supporting this vision, KFH Malaysia is relying on its strengthened leadership and its parent’s heritage of ethical finance to provide sharia-compliant products and services to an even broader market.

While it is not KFH Malaysia’s stated aim to be the largest bank in Asia, its objective is to be the primary provider of Islamic banking to customers whether they are Muslims or non-Muslims.

“More than 70 per cent of all Islamic banks have branches in Malaysia, so there’s a huge market where we already have a lasting presence,” Power says. With its large Muslim population, China is also a favourable market for expansion.

“This will be the year for KFH Malaysia’s David Power, resurgence,” Power says. “We plan to be the largest, CEO purest Islamic bank in the world as opposed to others with only Islamic windows.”

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SABAH CONTINUES RISE AS GLOBAL HUB WITH ENHANCED LOGISTICS, INCUBATION PROGRAMMES

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ilton Kota Kinabalu opened its doors early this year, signifying a grand welcoming – but not only for tourists looking to experience Sabah’s thriving biodiversity, rugged mountain ranges and unspoiled beaches. The 305-room worldclass luxury hotel also ushered in a new era for Sabah’s evolving landscape, where local and international guests have something to look forward to, be it for business or leisure.

“Beyond being a testament of investor confidence in Sabah, emerging industries and businesses such as Hilton are reinforcing the state’s growing role as a global connectivity hub,” says Dr Mohd Yaakub Johari, president and CEO of Sabah Economic Development and Investment Authority (SEDIA). “Last year, Sabah recorded its highest number of visitors at 3.4 million. We aim to raise not only this number, but also the reasons why more people should come, return and stay here.”

SEDIA has overseen the state’s gradual transformation since 2008 when the state and federal governments jointly launched the Sabah Development Corridor (SDC) initiative, whose vision is becoming a prime business and leisure destination by 2025. Coinciding with the Eleventh Malaysia Plan’s final leg in the journey towards Vision 2020, the initiative entered the third phase last year, with a key focus on introducing measures and building facilities that enhance global connectivity.

At the forefront of the SDC initiative’s third phase is the Sapangar Bay Container Port (SBCP). Strategically located along the busy shipping routes between Northeast Asia and Europe, the port has taken over the container operations from Kota Kinabalu Port, and is positioned as the premier transhipment hub for the Brunei Darussalam-Indonesia-MalaysiaPhilippines East Asean Growth Area (BIMP-EAGA).

“Rivalling other international ports, SBCP’s state-of-the-art facilities can accommodate higher volumes with more efficient operations and competitive freight charges. Amid the continuing success of e-commerce, efficient shipping and distribution are becoming more vital

than ever,” Johari says. “This is why aside from developing SBCP, we are also looking at building an aviation and air freight hub that will complement the nation’s objective of becoming a true Asean and global logistics hub.”

Alongside infrastructure development, Sabah is also pursuing Industry 4.0 – the modern automation trend involving the integration of internet of things and cloud computing with stateof-the-art manufacturing technologies to create “smart” factories.

“In addition to enhancing agro-based technologies, Industry 4.0 is foreseen to help leverage Sabah’s natural resources in developing various wellness products,” Johari says. “With efficient, sustainable smart factories, we will not need heavy multinational investment. All we need are 3D printers and automated processes that can be done in smaller, environmentfriendly factories.”

This development, in turn, is anticipated to boost SEDIA’s other initiatives – particularly those targeting product innovation and the advancement of small and medium industries and entrepreneurs. Among these is an incubation programme designed to stimulate business start-ups, specifically in knowledge-intensive sectors. Now on its initial phase, the incubator programme leverages two support facilities: one dedicated to information and communications technology-based businesses, and the other focused on biotech and agro-based industries at Sabah Agro-Industrial Precinct.

“We organise road shows throughout the states, invite speakers, and spread awareness and the spirit of entrepreneurship to potential incubatees who aspire to grow alongside Sabah’s

prospering industries,” says Ynez Teo, senior executive of investment and business development division at SEDIA. “We start off with the business model canvass, encouraging them to create ideas then guiding them through other business elements such as marketing and financing.”

Open to the general public, the programme also covers industry opportunities, business assistance and advisory services. Since its launch, the initiative has reached more than 10,000 potential incubatees throughout Sabah’s districts.

“The path towards global connectivity may be long and formidable, but so is our commitment to seeing our vision – for Sabah and Malaysia – through to completion,” Johari says. “We hope to attract equally driven partners and investors who share our global aspirations.”

Dr Mohd Yaakub Johari, president and CEO

MFE FORMWORK TRANSFORMS ‘IMPOSSIBLE’ BUILDING PROJECTS INTO CONSTRUCTION MARVELS THAT ADORN CITIES’ SKYLINES Spiralling in a smooth curve achieving a remarkable 90-degree spiral over the course of its 306-metre height, the 80-storey Cayan Tower at the Dubai Marina opened as the world’s tallest twisting tower in 2013. As with many construction marvels, however, the skyscraper’s most extraordinary features are often unseen: in this case, the formwork that formed its unique shape.

MFE Aluminium Formwork ensured that every floor was identical, yet set exactly 1.2 degrees clockwise from the floor below – creating an innovative, efficient and repeatable structure that gave the Cayan Tower its distinctive helical form.

“Speed, quality and efficiency are key elements that MFE Formwork brings to these seemingly impossible projects, turning them into modern marvels of today – and touchstones for the future,” says Jim Robinson, group CEO of MFE Group of Companies.

Used globally in forming cast-in-place complete reinforced concrete structures, MFE’s aluminium formwork solutions

make it possible to cast building components in a single operation – from walls to floor slabs, columns and beams, stairs and balconies.

MFE Formwork can be used up to 500 times, and is 100 per cent recyclable even at the end of its usability. Weighing only 23kg to 25kg per square metre, it does not require heavy lifting and can be easily assembled without special tools.

“MFE Formwork’s systems result in structures that are extremely strong and highly accurate. Fast build cycles mean completing one floor every four to five days – or one single-storey landed property every day,” Robinson says.

“These translate into substantial direct and indirect reduction in construction costs and low carbon footprint.”

The first aluminium formwork company in Asia, MFE now has 1,750 employees and offices in Dubai, Mumbai, Nairobi and Malaysia, where MFE Formwork Technology produces 90,000 square metres of formwork monthly.

Among its latest innovations are

Jim Robinson, group CEO, MFE Group of Companies

safety platforms and an integrated friction stir welding process that helps improve automation for quality consistency and productivity. It is also looking into all-concrete construction methods and transforming designs from 2D into 3D. With global allies such as building materials giant LafargeHolcim and local partners in the 46 countries it is presently working in, MFE is also pursuing new markets such as high-quality affordable housing. It looks forward to broadening its presence in fast-growing markets including Thailand, the Philippines, Cambodia and Vietnam, and working with new partners, marketing agents and government institutions.

“We aspire to become a one-stop solution for high-rise and low-rise buildings, and to play a bigger role in the industry’s breakthroughs – whether it is developing the next tallest, most impressive tower or helping communities build low-cost, high-quality housing where they are needed the most,” Robinson says.

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BINASTRA LAND DEVELOPS SPACES FOR THE CITY’S DREAM CHASERS AND GAME CHANGERS

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Michael Tan, CEO and managing director

property boom is sweeping Asia’s emerging markets, and many projects claim to be game changers when it comes to design, location and affordability, but few actually deserve the accolade. Binastra Land has been successfully launching groundbreaking residential and commercial projects in Malaysia for decades, and it continues to build landmarks in desirable locations, while assuring buyers of its projects’ quality, workmanship and timely delivery.

While Binastra Land is not in the same league as bigger players in terms of development size and value, the boutique property developer boasts extensive experience and expertise in niche segments. It is sought after by young, upper-middle class investors – the city’s dream chasers and constant changers, including past buyers.

“Previous customers follow our property launches, and they buy from us repeatedly because they make good profit,” says Michael Tan, CEO and managing director.

Profitability without sacrificing quality is a principle Binastra Land takes seriously.

Founded in 1979 as a construction

AGROMATE ENHANCES ROLE IN SUSTAINABLE GLOBAL FOOD SUPPLY WITH HIGH-NUTRIENT FERTILISERS With global population forecast to grow by 2.3 billion people by 2050, the demand for food is expected to rise by as much 98 per cent in the same period.

Amid shrinking tillable lands and changing climates, this poses a daunting challenge, particularly to the agriculture sector, whose fate largely lies in a humble yet formidable ally: fertiliser.

“The global pursuit for food security and sustainability drives the demand for efficient, high-nutrient fertilisers,” says Tey Seu Ann, director of Agromate Holdings. “Among the biggest growth markets will be Southeast Asia, where the economy and population are booming.”

Agromate began its expertise as a fertiliser trader more than 30 years ago, from selling to dealers and farmers in its early years to distributing to oil palm plantations throughout Malaysia. It gradually diversified into speciality products, and is among the pioneers in bringing macronutrient, micronutrient, soluble and foliar fertilisers into the Malaysian market. It soon brought its know-how overseas, fulfilling various requirements from Thailand, Indonesia, Myanmar, the Philippines, Taiwan, mainland China, Papua New Guinea, Sri Lanka and Africa.

Treating each client as a partner, Agromate extends its family-oriented culture in providing long-term support and advisory services, while introducing new agricultural practices and fertilisation methods to enhance clients’ yield.

Drawing strength from joint ventures and strategic partnerships with global, regional and local companies, Agromate aims to create synergy and explore new opportunities.

“The principles that guided us through our incredibly challenging

Tang Quee Huang, CEO

Drawing strength from joint ventures and strategic partnerships with global, regional and local companies, Agromate aims to create synergy and explore new opportunities journey in the early days, trust and reliability, honour and courage, ambition and teamwork remain our creed today,” says CEO Tang Quee Huang. “These enable us to succeed and establish long-lasting relationships with our business partners and customers, and

maintain our business continuity. Our greatest asset is a team of loyal, dedicated and hardworking employees – without whom our success story could not have been written.”

While it plans to continue supplying basic single-nutrient/straight fertilisers as its main product in the next five years, Agromate also aims to enrich its role in the evolving global fertiliser market by developing multinutrient compound fertilisers such as nitrogen-phosphoruspotassium (NPK) varieties and soluble fertilisers.

“From importing, exporting, distributing, manufacturing and bulk blending fertilisers to warehousing and terminal handling, we will continue to grow by adapting our successful business model outside Malaysia, particularly in the competitive Asia market,” Tey says.

“Ultimately, we envision a future where Agromate is not only a fertiliser leader, but a global partner in feeding a healthy, sustainable world.”

PROPERTY DEVELOPER GRAND MERDEKA ENRICHES SABAH REAL ESTATE WITH EXCITING STREET MALL IN SANDAKAN As the first property developer to construct a multilevel office tower with an elevated car park in Sandakan city during the 1970s, Grand Merdeka Development has founded a legacy of ground-breaking projects in Sabah’s local real estate market – a trailblazing reputation it still carries today.

From building Wisma Merdeka, Sabah’s first certified shopping mall, to introducing condominiums to the North Borneo state, Grand Merdeka has three decades of proven industry-leading expertise as a subsidiary of its well-known parent Wisma Merdeka group.

Setting its sights on grander aspirations, Grand Merdeka is building a suburban mixed development project that will house Sabah’s first elevated water park – along with a community mall, a warehouse shopping centre for homeware and residential areas.

“At Grand Merdeka, we offer unique development investments at affordable prices,” says Chew Sang Hai, director.

“We always do something different by breaking away from the past and traditional business methods.”

An example of this is Bandar RamaiRamai, Sandakan’s first street mall modelled after Singapore’s

interconnected shop houses with residential or office spaces on the second floor and commercial spaces on the ground floor.

Whether it is establishing Bandar Ramai-Ramai, building the first commercial college in Sabah, or creating a buyer and developer supplementary agreement on property management that has since become local industry standard, Grand Merdeka is undeniably a first mover in Sabah real estate.

“We create a lot of value for investment. Our projects are delivered timely at a very competitive price that allows investors to make good returns,” Chew says. “The Segama Shophouses we built in Kota Kinabalu fetched around US$300,000 in the late 1970s. Today, they are valued at around US$6 million.”

With major property development projects planned in Sabah, such as the estimated US$1 million redevelopment of Kota Kinabalu Port, Grand Merdeka’s

latest developments are in line with Sabah’s ongoing modernisation.

“We’re very locally focused,” Chew says.

“Nobody does what we do.

That’s why we’re always ahead of the competition.”

Chew Sang Hai, director

company, Binastra Land is behind some of Malaysia’s iconic projects, including the CyberSquare at Cyberjaya – a distinct blend of SOHO towers, shop and signature offices.

Built as an integrated lifestyle development, CyberSquare is located within the heart of Cyberjaya. Surrounded by multinational corporations and universities, it enjoys seamless access to other hot spots in the Klang Valley.

“We only select land within the Klang Valley, within mature townships, so that demand is always there,” Tan says. “Our ability to deliver quality at reasonable prices and ahead of schedule has always been our trademark.”

As one of the country’s top contractors, Binastra Land builds properties with quality finishings. Its

ongoing project CitiZen@Old Klang Road targets urbanites or the young city dwellers in Kuala Lumpur and beyond.

The vibrant residential space is designed to be a chic home and a springboard for a hip and secure lifestyle.

With resort-inspired leisure amenities, scented greenery and ample lifestyle options, CitiZen complements the demands of city living with enough space for self-expression. To date, CitiZen is 80 per cent complete and 100 per cent sold. Plans are underway to build CitiZen 2@Old Klang Road, the second phase of the project that will showcase serviced apartments.

“As a niche player, we spend time on product development,” says Steven Ooi, project director. “We do our homework when we make the land acquisition. We

conduct our own market study and research in terms of pricing and product packaging.”

Keeping pace with the changes in markets today, all of Binastra Land’s projects are demand-driven. Its deep understanding of its market allows it to align projects and services auspiciously.

Matching the perceptions and lifestyles of its target groups, the company also offers a refined pricing strategy.

“We continue to improve,” Ooi says.

“In development, we have adopted e-marketing strategies and applications to reach the younger generation. For construction, we are streamlining our operation to use system formwork. We are improving our designs to speed up site operations, and to gain time advantage and cost-savings.”

Binastra Land is optimistic about growth in Malaysia, which has a very young population. It plans to launch 2.3 billion Malaysian ringgit (HK$4.2 billion) worth of properties this year and next year.

Aside from CitiZen 2@Old Klang Road, projects in the pipeline include Sinaran@Wangsa Maju, Puchong 1188 and Binastra Square.

With a strong management team, vast marketing knowledge and robust expertise, the company is on its way to becoming one of the top 10 developers in the country in the next five years.

“We have a clear vision and mission for each team member to perform excellently,” Tan says. “We invite buyers to see our fine-crafted projects in various art forms and diversified practicality.”

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PENFABRIC WEAVES SUSTAINABLE WAY TOWARDS BRIGHTER FUTURE IN FASHION

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or Penfabric Malaysia, creating innovations is more than a vital strategy to grow its business. It is also a meaningful way for the integrated textile company to contribute to society in sync with its corporate philosophy. As the textile arm of Toray Malaysia, Penfabric pushes the envelope in research and development to pioneer textile functionalities that could transform everyday life.

Penfabric draws its expertise from the diversified businesses of its mother company, the Japanese conglomerate Toray Industries – a world leader in advanced materials encompassing fibres and textiles, plastics and chemicals, life sciences and information technology-related products, and many more.

“Established in the early 1970s, Penfabric was at the forefront of the industrial revolution of Penang. Four decades later, we are still making a positive impact on the economic growth of Malaysia with our commitment to continuous innovations and sustainable practices,” says Penfabric managing director and Toray Industries senior director Teh Hock Soon.

Today, Penfabric operates four mills in Penang with ample capacity for spinning, weaving, dyeing, printing and finishing processes. Its diverse range of products includes heavyweight, lightweight, yarn-dyed, printed and grey fabrics. The company’s export reach spans the United States, Europe, Japan, China, and the rest of the Asian region.

Penfabric was the first company in the world to successfully manufacture pre-cured wrinkle-free polyester/cotton blended fabrics for dress shirts. Over the years, it has forged close collaborations with renowned fashion brands worldwide, notably with PVH, the owner of brands such as Calvin Klein, Tommy Hilfiger, and others. Uniqlo and Marks & Spencer are also the company’s well-known customers.

Partnering with Invista – one of the world’s largest integrated polymer and fibre producers, Penfabric developed the CORDURA NYCO fabric by blending 75 per cent cotton with 25 per cent of the high-strength Invista T420 nylon 6,6 fibre. Targeted at the global workwear market and especially workers facing harsh working conditions, the CORDURA NYCO fabric features exceptional abrasion resistance and excellent durability, yet has the comfort of cotton-rich fabric. It was a breakthrough that cemented Penfabric’s position as a market leader in heavyweight workwear fabric.

True to its pioneering spirit, Penfabric was the world’s first integrated textile company accredited with the Sustainable Textile Production certification by OEKO-TEX for eco-friendly practices in 2015. The company has also earned the OEKO-TEX Standard 100 since 1996, ensuring that its products are tested for potentially harmful substances. Together, these two internationally recognised certifications enable Penfabric to display the Made in Green by OEKO-TEX label – reflecting its commitment to product safety and sustainable textile production.

Penfabric even produces green fabric from polyethylene

Teh Hock Soon, Penfabric managing director and Toray Industries senior director terephthalate (PET) resins from recycled flakes of discarded PET bottles.

Penfabric also provides its clients added value with the one-of-its-kind Penfabric Aquarium. This is an innovation, creativity and fashion hub where Penfabric and its collaborators work to translate ideas into reality. Boasting a fully computerised sample inventory, this state-of-the-art system gives instantaneous access to sample images, fabric specifications, designs and stock availability at the touch of a screen. Obliterating the need to rummage manually through files and warehouses has led to speed and agility in responding to the ever-changing fashion trends.

Kaizen, or “change for the better” in Japanese, is the DNA of Penfabric. Many new products are in the pipeline, such as waterproof laminated fabrics for apparel and non-apparel uses.

Penfabric will continue on its trailblazing path, driven by creative innovations and prolific partnerships to discover the infinite possibilities of tomorrow’s textiles today.

“We are a team that believes in relationships – with customers, suppliers, employees, communities and even universities. By building on relationships, we establish the most important foundation of our business, which is the human element. Working together as a team, we believe that determination is the thing, impossible is nothing, result is everything,” Teh says.

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SW FOODS OPEN TO WHOLESALERS ACROSS ASIA AS BRAND EXPANDS EXPORTS OF KEDAH’S FINEST RICE Milling high-quality rice grown from Kedah – Malaysia’s “rice bowl” – Serba Wangi (SW Foods) continues to dominate the Malaysian market. Its brown rice brand, ecoBrown, has already been exported to Singapore for more than a decade – and to New Zealand in the past eight years. The company is now ready to set forth into the wider Asian market.

SW Foods has full control of its production and quality assurance processes since it purchases and grows its own rice paddies. “We ensure that what we deliver to the end consumer is nothing but good quality rice. This is our main purpose,” says Low Kok Kean, managing director.

The company operates mills around Malaysia and built the first biomass cogeneration power plant in the country to protect the environment by turning rice husks into useful energy and avoid any form of contamination by diesel carbon.

Launched in 2004 and marketed as the

SW Foods exports its wholesome ecoBrown product range across Asia. brand for health-conscious consumers, ecoBrown’s brown rice is enriched with vitamins such as B complex, B1, B2 and B6 and essential minerals. Apart from ecoBrown’s, SW Foods’ flagship brand

JATI is the best-selling local brand with more than 20 varieties, while its Carnation and SongHe Noble Pine Crane brands offer other types such as jasmine and white rice.

Invested in variety, SW Foods produces products such as low glycemic index brown rice vermicelli and ready-todrink, gluten-free instant brown rice beverages for people with busy lifestyles.

SW Foods is equipped to export to other countries such as Hong Kong, Australia, mainland China, and the Middle East. “In the international market, we are looking for wholesalers who share our ideals and can get the job done,” Low says.

Endorsed by Singapore’s Health Promotion Board, ecoBrown’s products have Hazard Analysis and Critical Control Points and Good Manufacturing Practice certification.

The company has received the Reader’s Digest Trusted Brand award, the BestBrand Award by BrandLaureate, Best Brown Rice by Women’s Weekly Domestic Diva Award 2016, and Reader’s Choice Best Brown Rice by Her World Kitchen Awards 2017.

BOOKDOC REDEFINES HEALTH CARE AT THE TOUCH OF A BUTTON When BookDoc was launched by founder Chevy Beh in 2015, the online platform radically redefined health care. By making information readily available in an easy-touse platform, BookDoc connected patient and health care professionals anytime and anywhere.

In a span of less than two years since its establishment, BookDoc once again transforms patient experience by bringing together navigation, transport, accommodations and leisure functionalities into one integrated online ecosystem.

Endorsed by Malaysia’s Ministry of Health, Ministry of Tourism and Social Security Organisation, BookDoc works with many health care institutions. These include Malaysia’s National Heart Institute and KPJ Healthcare, Singapore’s NTUC Unity Denticare and Q & M Dental Group,

and Hong Kong’s Quality HealthCare Medical Services and Town Health International Medical Group, among others. It also has an extensive network of health care practitioners in 10 Malaysian cities, Singapore and Hong Kong.

Partnering with game-changing companies such as Uber, Grab, Airbnb, TripAdvisor and Agoda, BookDoc not only secures appointments, but takes charge of a patient’s journey and all other potential activities connected to the visit, such as dining or even lodging for medical tourists.

“We aim to be the Amazon of health care. We’re trying to build the entire health care ecosystem. We want to be the trusted platform where people do not doubt the integrity and quality of the information we provide,” Beh says.

A believer that prevention is better

Chevy Beh, founder than cure, BookDoc even incentivises fitness activities and has launched the BookDoc Activ lifestyle deals programme.

Activ syncs with fitness trackers to tally the daily average steps monthly to determine corresponding rewards.

BookDoc aims to further extend its geographical scope to bring its revolutionary platform to the Philippines

and Indonesia. In this expansion, BookDoc seeks to build relationships with health care providers, insurance companies and government agencies.

“We want to optimise access to health care professionals and improve the wellbeing of the people in every country where we operate to reduce medical costs,” Beh says.

UUM NURTURES BUSINESS LEADERS AND WELCOMES TIES WITH UNIVERSITIES IN CHINA Producing workplace-ready graduates is something that Universiti Utara Malaysia (UUM) has perfected over its 33-year history. As a university that was established to specialise in management education, UUM has raised the bar for higher education in Malaysia, offering internationally recognised and accredited academic programmes designed to train tomorrow’s business leaders to successfully remain competitive in a global economy.

Considered a “young” university, UUM has proven that age is just a number.

UUM has successfully clinched the 137th position in the previous year’s QS University Rankings: Asia, and was listed at the 101-150 category of this year’s QS Top 50 Under 50, a noteworthy recognition given to the world’s fastestgrowing top young universities.

“UUM is a public university and an international university. We have received various international accreditations and have forged strategic partnerships with renowned universities worldwide. These substantiate the quality of international education we offer at the university,” says

Dr Mohamed Mustafa Ishak, vice-chancellor and president Dr Mohamed Mustafa Ishak, vicechancellor and president.

The university is a member of the elite Beta Gamma Sigma honour society. It has also earned the prestigious accreditation from the Association to Advance Collegiate Schools of Business.

To further enrich its students’

education experience, UUM has forged numerous academic partnerships with schools such as the Cambridge Judge Business School, Nanyang Technological University and Yulin University.

UUM offers its undergraduate and postgraduate programmes in English – a plus factor that attracts many international students to pursue their studies at the university. Out of its 30,000 student population, 3,000 are international students, of whom 900 originate from China.

The continuously flourishing diplomatic relations and business partnerships between Malaysia and China has emboldened UUM to groom its graduates to meet the demands of multicultural firms worldwide. UUM also requires its students to register for Putonghua language classes.

“We hope that in the near future, we can collaborate with universities in China to offer double-degree programmes or student-exchange programmes so that our students can get an even better understanding of Chinese culture,” Ishak says.

EVYAP SEEKS EXPANSION IN ASIA Evyap offers unparalleled price to quality ratio since it integrates its raw material production line with the end-product fast-moving consumer goods line

L.C. Saw, president As disposable income continues to rise in Asia, businesses globally are gradually recognising the region’s importance as a consumer hub. However, consumers today are more discerning with the products and brands they support as these reflect their lifestyles and personalities.

Evyap Sabun Malaysia aims to connect with consumers looking to transform dull personal care routines to enjoyable experiences as it gears itself for future growth in Asian markets.

“Our goal is to let consumers enjoy

the Evyap experience through our quality products. We study market needs and tailor our products around what consumers want,” says president L.C. Saw. Turkey-based oleochemicals and personal care company Evyap is more than ready to serve the international marketplace, with particular focus on Asia through a location very familiar to it – Malaysia, home to its 300,000-tonne per annum state-of-the-art production facility.

In its Malaysia plant, Evyap has the capacity to produce oleochemicals, which are exported globally. These products include various fatty acids and glycerine used across many industries, soap noodles and finished personal care products, particularly bar soaps. With steady demand for its products, Evyap plans to add another 80,000 tonnes to its factory capacity.

Evyap is renowned in Turkey, Middle

East and the Balkans through brands such as Duru, Fax, Arko, Evy Baby and more.

The company aims to create a strong brand presence in Asia’s business-toconsumer (B2C) market.

On the business-to-business (B2B) side, Evyap is open to sharing its expertise in personal care and hygiene products and is keen on offering contract manufacturing services. Evyap offers unparalleled price to quality ratio since it integrates its raw material production line with the endproduct fast-moving consumer goods line. This allows Evyap to cut down on logistical costs and lead time, consequently providing greater cost and supply chain advantage to clients.

“By adopting a two-pronged approach for B2C and B2B, we aim to be among the leading oleochemicals and personal care producers in the world,” Saw says.

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BINTULU’S STRATEGIC LOCATION AND MULTIPURPOSE PORTS A PLUS FOR MALAYSIA’S ECONOMIC GROWTH

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s one of five regional development plans aimed at transforming Malaysia into a high-income economy by 2020, the Sarawak Corridor of Renewable Energy (SCORE) – a hub for high energy-intensive industries – is vital to the country’s economic ambitions.

Central to SCORE’s success is Samalaju Industrial Port, a 393-hectare port serving the needs of SCORE’s heavy industries and one of three key projects spearheaded by world-class port developer and operator Bintulu Port Holdings.

By the end of 2013, SCORE attracted a total of US$10.49 billion in foreign investments for Samalaju Industrial Park, where Samalaju Industrial Port is located.

This, combined with Bintulu Port Holdings’ strategic geographic location in Borneo – the heart of Southeast Asia –

strong expertise in port management, years of extensive experience handling sensitive materials complemented by key partnerships with crucial stakeholders such as Petronas and major shipping lines have propelled the group’s integral role in the region’s industrial development.

Before developing Samalaju Industrial Port, which commenced phase 1 of operations in June this year, Bintulu Port Holdings started as Bintulu Port – eastern Malaysia’s largest container port noted as one of the largest liquefied natural gas (LNG) export terminals in the world.

“From starting as Bintulu Port relying previously on liquefied natural gas (LNG), which is still our largest single source of revenue, we have since diversified our service offerings – and with the implementation of SCORE we can expect an increase in cargo shipments,” says Mohammad Medan Abdullah, group CEO.

“We have stepped up a second time to meet the needs of the nation’s major industrial undertakings with Samalaju Industrial Port and have proven our capacity to develop new ports, the first time being in 1983 to meet the needs of the emerging Malaysian LNG industry in Bintulu.”

Geographically situated midway between Sarawak and Sabah along Asia’s busy sea trading lanes, Bintulu Port is the import and export gateway for Sarawak and the Brunei, Indonesia, Malaysia and the Philippines-East Asean Growth Area.

The deep seaport, also the third largest port in Malaysia, has built a reputation as one of the most efficient multipurpose ports in the region. It is strategically located to meet oil and gas industry demands and handle a growing volume of general, containerised, liquid and dry bulk cargoes and palm oil products.

(From left) Lim Li Sze, operations director, and Ariff Ismail, executive director

MEDIVEN CHANGES PARADIGM OF PERSONALISED MEDICINE WITH INNOVATIVE DIAGNOSTICS Infectious diseases such as tuberculosis conventionally take as long as two months to diagnose, by which time the infected individual may have already spread the disease to many others. This is one of the biggest reasons – despite the availability of vaccines that prevent it and drugs that kill it – tuberculosis remains a major challenge in modern medicine.

There is growing hope, however, that early detection can finally help eradicate such diseases.

“Early diagnosis means early patient management, which translates to fewer undiagnosed patients causing the spread of the disease,” says Ariff Ismail, executive director of Malaysia-based Medical Innovation Ventures (Mediven).

Among the leading manufacturers of in vitro diagnostic kits for tropical

diseases in Southeast Asia, Mediven offers early diagnosis for better patient care. Its breakthroughs include the GenoAmp Real-Time PCR Leptospirosis test, which detects the disease when other kits fail because of the multiple target genes it tests for. Another is the GenoAmp Real-Time PCR Malaria kit, which tests for and differentiates the five strains of malaria.

The company is set to launch the GenoAmp Trioplex Real-Time RT-PCR Zika/Den/Chiku kit – a multiplex diagnostic assay that screens for Zika, dengue and chikungunya in a single drop of a patient’s blood in about 2.5 hours. The kit is useful for screening donated blood, especially for transfusions to pregnant women.

With an in-house design and development expertise and partnerships

with research institutions and universities, Mediven also develops and localises assay designs according to clinical needs – an expertise that has earned the trust of a growing clientele including the Ministry of Health Malaysia.

Rapidly gaining customers in Myanmar, Brunei, Indonesia, Singapore, Laos, Thailand, Pakistan and other overseas markets, Mediven also expanded its network of distributors, particularly in the Middle East, South America and Africa.

“We look forward to working with experienced partners with extensive local networks and excellent aftersales support,” Ismail says. “Together, we aim to provide high-quality, cost-effective solutions that will change the paradigm of personalised medicine.”

ABLE PERFECT PURSUES ORGANIC GROWTH IN KEY MARKETS WITH SUSTAINABLE PALM OIL PRODUCTION The pervasiveness of readily available palm-based products for consumer and industrial use has considerably alarmed environmental groups, but leading palm oil supplier Able Perfect believes meeting the demand for affordable palm-based products without compromising quality and the health of the environment is possible.

“Palm oil is a sustainable edible oil,” says Ng Keng Hoe, president. “We can produce it while protecting the environment and conserving the forest.

We have been doing this as a responsible exporter for 13 years.”

Able Perfect exports various palmrelated products including containerised palm-based cooking oil and other soft oils, shortenings, milk fat, bath and laundry soaps and candle wax. Headquartered in Malaysia, the company is related to Able Food, which distributes dairy ingredients like milk powder, and Able Dairies which carries milkbased products such as creamer, infant powder, and condensed and evaporated milk.

With a robust distribution network, the company serves more than 100 markets globally supplying up to 45,000 tonnes of palm oil a month. Its

Ng Keng Hoe, president

innovative pricing system also provides partner-buyers with the latest information to make timely and strategic purchasing decisions.

“Our service time is unparalleled,” Ng says. “We have built a culture where our people are able to respond within the day, even on weekends and at night due to time differences. Our team is very responsive.”

Since palm oil is a basic commodity, Able Perfect assists distributors, importers and buyers by expanding its product line.

“We give them diversified products to increase their revenue, and to keep longterm customer support,” Ng says.

Garnering international food safety and quality accreditations from Europe, the United States and across Asia, Able Perfect adheres to global standards, going as far as providing hostel and proper living conditions for its foreign factory workers.

The company attributes its success to its people. Encouraging employees to stay and grow with the firm, Able Perfect ensures all of its achievements are translated to rewards for its people.

Pursuing organic growth, Able Perfect will open a new refinery in Indonesia this year, a speciality fats factory in Malaysia next year and a dairy factory in Mexico to reach markets in the US and Canada.

“We are bringing the group to a level that is world-class as we target niche markets where we are strong,” Ng says.

“We will continue to grow organically by buying businesses such as biodegradable plastics producer Sekoplas, and through collaborations. The key is to have a responsible local partner.”

Bintulu Port Holdings also owns and manages Biport Bulkers, an ideal bulking installation terminal for companies seeking superb facilities, faster vessel turnaround times and excellent operational safety. It is also the main export point for edible oil products in Sarawak, handling more than 95 per cent of Sarawak’s crude palm oil products.

“We try to understand exactly what clients want and respond as quickly and most efficiently as possible to meet their requirements,” Mohammad says. “We have the facilities, human resources and up-to-date operating systems – being the first to utilise the latest container terminal operating system – and take measures to provide the best service.”

Last year saw Bintulu Port Holdings strengthen its position as a growing world-class LNG and multipurpose port,

generating a total operating revenue of US$138.7 million – an increase of US$8.6 million over the group’s operating revenue of US$130.1 million in 2015.

With good business fundamentals, steady growth in cargo throughput and new contracts, the group continues to hone its commitment to deliver a strong operational and financial performance.

“Because of our position right in the middle of the Asean, we would like to work with other ports locally and regionally to see how we can all become more efficient.

We can achieve synergies and better opportunities,” Mohammad says. “We’re willing to engage, discuss and look for win-win opportunities with ports, ship liners, investors and partners where we can work together with transparency and openness and cooperate towards a common good.”

Mohammad Medan Abdullah, group CEO

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COCONUT PRODUCTS PRODUCER LINACO FOCUSES ON LEGACY OF BUILDING PARTNERSHIPS

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or generations, the humble coconut has been celebrated as the fruit of life. A highly nutritious source of fibre, oil, juice, milk, vitamins and minerals, it is a superfood with amazing medicinal and health-boosting properties – feeding and nourishing nearly one-third of the world’s population.

With global demand for coconut products such as coconut water and virgin coconut oil continuously soaring at the risk of outstripping supply, familyowned business Linaco Manufacturing – Malaysia’s largest manufacturer of coconut-based products – isn’t just after the bottom line.

Committed to Malaysia’s production of highquality coconut products along with its own growth, the company looks towards its 25 years of best practices and knowledge expertise for the betterment of the general industry. “‘He who builds will himself be built’ is the motto at the heart of our company. We focus on building ourselves while helping build others – our partners, our people and our community,” says managing director Joe Ling, son of Linaco’s founder and chairman Richard Ling.

“It is very important for the industry to make sure that everyone has the right information. No one wants a bad product, so advising others about best manufacturing practices, for example, actually helps stabilise the market. This is our value system and the

legacy we want to leave the following generations,” says Joe Ling.

An icon in Malaysia’s fast-moving consumer goods industry, Linaco is a respected producer of coconut-related products and easy-to-cook Chinese herbal recipes, pre-mixed spices, caramelised sugar and flavours exported to more than 40 countries.

Besides its original equipment manufacturing capabilities, the company has three main brands.

Rasaku offers a range of high-quality products derived from the finest mature coconuts such as coconut milk, coconut cream and cream powder, toasted coconut paste and low-fat desiccated coconut; Claypot specialises in traditional Chinese herbal soup mixes, while FKFF produces caramelised sugars, syrups, powders, toffee granules, mocha pastes and other seasonings.

Having grown 25 per cent in revenue year-onyear, Linaco has proven itself to be a strong Malaysian business and a reliable partner for food and beverage players in Southeast Asia and China. Upholding its value system while focused on expansion, Linaco donates 10 per cent of its profits annually to Malaysia’s impoverished communities – with plans to open three to four new factories by 2020. “We are never satisfied with what we do and focus on growth by improving ourselves – not by competing with others,” Joe Ling says. “We believe in building strategic partnerships with brand owners around the region.”

Joe Ling, managing director

U-PORT MANAGEMENT IS A GATEWAY TO ALL PORTS IN ASIA

(From right): Thomas Ng, CEO and managing director; and Ng Vui Chuan, business development manager

U-Port Management has been serving East Malaysia’s heartland, global gateways and vital transport corridors with intermodal solutions since its establishment three decades ago.

U-Port specialises in intermodal services including container trucking, container depot operations, warehousing and logistics, and operates a strategic depot network throughout Sabah, Sarawak and Peninsular Malaysia.

U-Port’s team of more than 150 intermodal experts, above 220 independent contract drivers and comprehensive intermodal services make the company a one-stop solution for transport, logistics and supply chain management.

The inland terminal services product has been one of the company’s core offerings to the shipping sector. Its stateof-the-art depot management system provides real-time updates and customised reports, while its network of

secure, full-service facilities offer loaded and empty container and trailer storage, repairs and container modifications.

U-Port leverages more than half a decade of market experience dedicated towards providing innovative cargo transport and freight services while delivering the industry’s highest level of customer service.

“Unlocking the full supply chain potential for our customers has been our focus,” says NCT’s managing director Thomas Ng. “Our trusted expertise and resources empower small and medium enterprises and the business community to achieve new levels of efficiency and service. Today’s global supply chains have become increasingly complex and fragmented. Markets are volatile, competition is intense, and customers require more comprehensive services.”

NCT’s integrated logistics experts develop, implement and manage

solutions that streamline the supply chain to make it lean, agile and demand-driven.

A strategic partner for local and international businesses, U-Port is the single point of contact for logistics execution and supply chain management.

Leveraging its standardised operations in seven logistics control centres, U-Port offers value-added services in six major vertical markets with integrated solutions.

It provides consultancy to exporters, importers, manufacturers, suppliers and buyers between China and Asean countries.

Its collaboration with mobile application Plusixty (+60) aims to cater to the logistical needs of tourists in Malaysia and boost the tourism industry through the exchange of ideas and goods. To establish the market, E-Post Worldwide partnered with U-Port to provide a systemic platform for individuals, businesses, tourists and start-ups to manage their logistics.

INNOVATIVE DEVELOPER INSTARMAC DRAFTS BLUEPRINT FOR BUILDING MEANINGFUL COMMUNITIES Amid the increasing number of Malaysians accepting the concept of managed communities, Instarmac Group commits to focusing on building cuttingedge properties to achieve a coherent and seamless environment.

Instarmac, a property development group composed of young and dynamic game changers, has invested in Kuching city, the most densely populated area in Sarawak, since 2009. It prides itself on synthesising the cultural heritage of Malaysia and modern concepts to create salient designs to better shape communities.

In cultivating its brand of authenticity and quality excellence, Instarmac takes a hands-on approach to each project, from planning to construction.

“Customers are more discerning now, which is a good thing for us because our products are distinctive,” says James Lau,

executive vice-chairman. Instarmac also pioneered in 2014 the Cube, whose added facilities include fibre optic internet connection in the entire building in partnership with telecom providers.

The company remains cautious about embarking on trendsetting developments. Its flagship project Tamu, a mixed property in a prime 4-hectare area of Kuching, will be the epitome of Instarmac’s dedication to enhance the standards of urban living. Tamu will also be the first physical platform for home-grown brands and a venue for local artists with its performing arts centre.

Leveraging its expertise cultivated over about 30 years, Instarmac conceptualises together with external consultants, such as mechanical engineering and music experts, to impart

knowledge and experience in different facets of the industry.

Having concentrated on the higher market segment, Instarmac intends to meet the requirements of broad consumers while maintaining comparable quality of building and design. The company aims to collaborate with government-linked corporations, private landowners and other partners that share its values and experience to develop high-quality products at reasonable cost.

Working with like-minded partners and operating business the same way a few listed companies do are essential to Instarmac’s success. Acknowledging the team’s diverse background, Lau says, “Very often, we do things that other developers didn’t explore to do. Our innovativeness and attention to detail are our main competitive advantage.”

James Lau, executive vice-chairman

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BLÖNDAL ASPIRES TO A WORLD WHERE EVERYBODY HAS ACCESS TO CLEAN WATER Access to clean drinking water is a basic human right, but with rising pollution levels, the fulfilment of this liberty becomes more challenging. Thanks to Blöndal Group, Asian markets are one step closer to living a hygienic and healthier lifestyle as they enjoy pure and filtered water.

The water purification company is on a quest to save lives. It is a lofty goal, but not impossible. With a legacy in providing high-quality and cost-effective water purification and filtration systems backed

by Swedish design and engineering, Blöndal is on track. Its unparalleled sales and marketing experience in Southeast Asia also goes back 40 years.

“Growing up in Sweden, we drink water from the tap or from small streams in the forest,” says Sophus C.C. Broberg, CEO. “Water is a resource we’ve taken for granted so our mission is to ensure that everybody gets access to clean water, and enjoy that human right.”

As a family-owned business, Blöndal is strengthened by the passion and loyalty of its people, many of whom have been with the company since its inception. With a vision to supply clean water to the region, Blöndal offers a wide range of water filtration solutions for residential and office use. Through the newly formed Blöndal Water Tech, which serves as the company’s research and development hub, Blöndal designs point-of-entry filters

Sophus C.C. Broberg, CEO using patented modular systems to expand its series of point-of-use water purification products. The result is a filtration system that is adaptable to local needs.

“We test the water so we understand the chemical and polluting component, and we know how it needs to be filtered,” Broberg says.

This localised solution opened up opportunities across the region. It has broadened Blöndal’s scope to include industrial waste water treatment and recycling such as its project with Top Glove in Malaysia. It welcomes global distributors and partners to provide markets with the best solutions.

Wong Eng Su, managing director

MMAG PROMISES TO COMMIT AND DELIVER WITH NEW TECHNOLOGIES AND PARTNERSHIPS The proliferation of new technologies and the implications for the future of domestic last-mile delivery have a direct impact on the way delivery providers interact with their customers. Last-mile delivery involves three main stakeholders – customers, merchants and delivery providers – each with their own set of expectations and challenges.

Capitalising on this understanding, MMAG Holdings, through its fully owned subsidiary Line Clear Express & Logistics, is set to disrupt the traditional courier services through technologies, partnership business models and other ways to create inroads into this interesting yet challenging industry.

“We work in synergy with our partners,” says managing director Wong Eng Su. “We’re focused on working with a growing number of likeminded companies who need to be dynamic and progressive. We will work together with partners to lower costs and maximise profit.”

Collaboration is important for MMAG as it moves forward into logistics and fulfilment through Line Clear. “There is a

huge demand in e-commerce and fulfilment. The demand for this service in Malaysia now is more than the supply,” Wong says.

Line Clear is in step with the continuing rise of e-commerce and Asean Economic Community (AEC).

“The beauty of Line Clear is that we have experienced teams with know-how from the courier industry in Malaysia. We give them sufficient training to prepare them for the AEC, where we talk about the free flow of professional labels and the single market,” Wong says.

While 70 per cent of Line Clear’s business is conventional courier services and 30 per cent e-commerce, Wong sees the latter eventually overtaking conventional services because of the increase in high-value items being transported.

“When it comes to security and proper handover of high-value shipments, there’s a strong demand from ecommerce service providers,” Wong says.

“Added to this is the desire of customers for immediate results and faster service.

But we are prepared for these challenges.”

BLUETOOTH-ENABLED DEVICE MAKER SALUTICA CONTINUES ITS MOVE UP THE VALUE CHAIN Malaysian consumer electronics manufacturer Salutica is well-positioned to benefit from the rapid adoption of Bluetooth technology in the personal computer, mobile consumer, health care, vehicle and connected home segments.

Founded in 1990, Ipoh-based Salutica has built a strong reputation as a vertically integrated player whose key competence is developing and manufacturing Bluetooth-enabled mobile communication products, wireless electronics and lifestyle devices for leading multinational corporations such as Plantronics, Jaybird and Sony.

“We’ve chosen the niche high-end segment of electronics manufacturing to make our mark,” says James Lim, managing director and CEO. Lim, who led the management buyout of Salutica in 2013, steered the company’s strategic direction towards the expansion of its Bluetooth and electronics businesses.

Unlike typical contract manufacturers with limited engineering capabilities, Salutica possesses deep technical know-how and state-of-the-art facilities to provide a full

James Lim, managing director and CEO integration service, from product design and development, product testing and prototyping through manufacturing and assembly.

As part of efforts to move up the value chain, Salutica has played a role in the release of AirBar, a universal serial bus-powered device that gives laptops

on-demand touch capabilities. Salutica serves as a key technology partner to AirBar developer Neonode and sees great opportunities with the expanding applications of the technology to any display.

Under the in-house brand FOBO, Salutica manufactures its own line of electronic sensors, tracking devices and beacon transmitters for monitoring loved ones and personal belongings. An acronym for “For Our Better wOrld”, FOBO gained international recognition with the launch of the world’s first Bluetooth-enabled tyre pressure monitoring systems for motorcycles, cars, light trucks, vans and heavy vehicles that are designed to promote improved vehicle safety and performance.

To expand the FOBO portfolio, Salutica plans to venture into health care and develop sensing devices for monitoring personal health.

“We strive to provide innovative and smart devices that deliver honest value to customers,” Lim says. “Our products are meant to make life better and easier.”

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MALAYSIA BUSINESS REPORT ¢

HISTOTECH DELIVERS EXCELLENCE IN MECHANICAL SOLUTIONS TO THE SEMICONDUCTOR INDUSTRY

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ounded in 1992, Histotech Engineering has been working closely with customers to craft mechanical solutions to meet the high precision and ever-changing needs of the semiconductor industry. As technology evolves, the company tailors its design-and-build process to meet the unprecedented precision requirements of customers.

“Histotech is building on its manufacturing roots and is scaling up to provide more engineering and valueadded services to its customers,” says managing director Teoh Jia Shyan. “Our team works closely with our customers during the design phase, lending expertise and design recommendations to assure that our customers achieve their goals.”

The company focuses on research, design and exploration of new materials to provide an optimal product.

Specialising in precision tooling, computer numerical control machining, metal stamping and sheet metal fabrication, Histotech works closely with Fortune 500 companies to deliver innovative and cutting-edge technology.

Headquartered in Penang, the company has additional manufacturing facilities in the Philippines and has been serving clients in the United States, Hong Kong, Singapore, China and Indonesia for more than 25 years.

Histotech is now focused on increasing its presence in the Chinese market. In the past few years, Histotech has been actively upgrading its

manufacturing facilities and engineering capabilities.

Vietnam is also a consideration for expansion and growth with two major manufacturing companies setting up in the country where trade is becoming more favourable.

As the global marketplace evolves, Histotech is looking to penetrate the mass market and add a business-to-consumer arm to complement its robust business-tobusiness core.

The company believes in partnering closely with customers to offer solutions that address challenges of today and possible future needs. Histotech strategically aligns itself to optimise cost, offer quality service and deliver a worldclass product to suit clients globally.

with a turnover of about US$125 million in the last financial year, AYS Ventures provides unmatched cost savings to clients as it bridges suppliers and buyers in the region. Nurturing long-term relationships, the company acts as a reliable platform for manufacturers to reach markets in Asia and beyond.

“Customers come to us for our comprehensive product range and reliable delivery,” Oh says. “We are pragmatic in our stocking policy and are able to meet customers’ needs by delivering the correct materials on time.

The confidence is there, and it’s something we’ve built through the years because we participate in the programmes of our customers and suppliers.”

Eyeing the free trade zone, AYS Ventures is keen on exporting to Southeast Asia. It welcomes new business opportunities by partnering with customers in the construction and infrastructure sectors.

“We are very flexible,” Oh says. “We offer products and services that generate savings to suit our customers’ projects, and we keep improving to sustain our growth.”

Sponsored section in cooperation with Discovery Reports

CONTINUED INVESTMENTS DEPICT LINDE MALAYSIA’S STRONG MARKET COMMITMENT

Teoh Jia Shyan, managing director

BRIDGING STEEL BUYERS AND SUPPLIERS, AYS VENTURES FOSTERS TRUST AND LOYALTY Decades of experience immersed in the trading of steel have lodged AYS Ventures at the vanguard of construction materials distribution and steel manufacturing developments, thanks to founder Oh Chiew Ho’s foresight and perseverance.

Starting as a general helper in the warehouse/ store department in the 1960s, Oh dreamed of having his own business after learning about the steel trade for many years.

Through diligence and exceptional engineering know-how, Oh co-founded Ann Yak Siong Hardware, a wholly owned subsidiary of AYS Ventures, in 1982. The company has since become one of Malaysia’s major steel traders today serving some of Asia’s top construction, fabrication and manufacturing players.

“I know how to sell any steel product to the market, and our teams have earned the trust of suppliers,” says Oh, who is also the company’s group managing director. “With that expertise, we are now expanding into manufacturing and other value added services.”

Primarily focused on structural steel trading

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(From left): Oh Yung Sim, deputy managing director; Oh Chiew Ho, group managing director; and Oh Pooi Foon, deputy managing director

Linde Malaysia, member of Linde Group – a world-leading gas and engineering solutions company – commissioned a modular automated industrial gases cylinder filling plant in Banting, Selangor in May this year.

This state-of-the art facility, which is the first of its kind in South Asia and the Asean, fortifies Linde’s track record of continued investments and commitment to bring the latest world-class technologies and innovative solutions into Malaysia.

In the past two years alone, Linde launched a series of investments worth more than €230 million (HK$2.15 billion) to expand its gas and liquid production capacities and support its customers’ growth plans.

“Malaysia is a key contributor to Linde’s growth strategy globally and particularly for Asia,” says Connell Zhang, managing director. “The country’s industrial growth is robust, with vast market opportunities particularly in the oil, gas and electronics sectors. We are wellestablished here and we intend to expand further and support the development of Malaysia’s industrial gases market.”

Leveraging its sales centres and plants nationwide, Linde provides total gas solutions to diverse industries, including oil and gas, petrochemicals, steel, glass, electronics, food and beverage, and health care.

Operating in Malaysia since 1960, Linde has established a deep understanding of local markets; that, together with its global expertise and resources in the areas of technology, engineering and best operating practices, allows Linde to deliver customised solutions of high quality and value.

One project that underscores Linde’s solid commitment to understanding and meeting local

customer requirements is a joint venture with PETRONAS Gas. The undertaking requires a custom-tailored technology for air separation units supplying to the world-scale Refinery and Petrochemicals Integrated Development project within the Pengerang Integrated Petroleum Complex in southern Malaysia.

“We have passion to innovate for our customers and to deliver the best solutions that take into account lifetime benefits, not just one-time cost,” Zhang says. “Our efforts to digitalise our production-related processes also exemplify how we strive to better serve our clients.”

Connell Zhang, managing director

CYBERJAYA’S MASTER DEVELOPER BUILDS TESS INTERNATIONAL EYES RAPID TO BOOST COUNTRY’S SMART CITY GROWTH FROM ASEAN EXPANSION Malaysia continues to drive its economic growth by attracting more investors through its digital endeavour MSC Malaysia, the country’s multimedia super corridor.

Strategically located within Greater Kuala Lumpur’s centre of gravity, Cyberjaya is situated adjacent to Putrajaya, the federal administrative centre, only 15 minutes from the Kuala Lumpur International Airport and 30 minutes to the city centre.

As the foremost constituent of this special economic zone, Cyberjaya is a smart city and living laboratory of innovative solutions anchored in a citywide high-speed broadband connectivity for offices and residences.

Responsible for Cyberjaya’s physical infrastructure is master developer Setia Haruman, which is focused on initiating tech-enabled buildings to appeal to high-impact companies looking to set up in Asia.

“We continue to work relentlessly with all stakeholders to elevate Cyberjaya as Malaysia’s first liveable and green smart city,” says executive chairman Ahmad Khalif. The 2,894-hectare development is the first in Malaysia to provide access to 1Gbps high-speed broadband to homes and free Wi-fi and 4G LTE high-speed mobile network within its populated areas.

Celebrating its 20th year, Cyberjaya aspires to grow its population of 102,000 to 200,000 by 2022.

Aside from 17,000 residential units, the city hosts

Ahmad Khalif, executive chairman educational institutions at all levels, more than 300 food and beverage outlets, a mini stadium, sports complex, 162-hectare lake garden, bike-sharing lanes, and 16 electric car charging stations at strategic locations.

Cyberjaya accommodates 26 local and international data centres, and 486 MSC companies of which 42 are multinational corporations.

“Over the past two decades, Cyberjaya has become a testament of growth and

transformation that is much needed in the current fast-moving world of technology and innovation,” Khalif says.

Setia Haruman has also constructed commercial and residential buildings to meet the demands of the smart town’s thriving community.

Cyberjaya’s pipeline projects include two mass rapid transport stations, accessibility to a highspeed rail station in eastern Putrajaya to enable a 90-minute travel time to Singapore, and an electric tram network within the city.

PRASARANA TRANSFORMS MASS PUBLIC TRANSPORT FOR BETTER MOBILITY Malaysia’s Vision 2020 paints a picture of an industrialised and a fully developed nation. In line with this goal, the government has devised the National Land Public Transport Master Plan to achieve a safe, reliable, efficient and affordable land public transport to enhance socio-economic development and quality of life.

Answering the call for an integrated system, Prasarana Malaysia has taken on the responsibility of managing and operating sustainable public transport systems that define Malaysia’s development today and in the future.

“Prasarana Malaysia believes that increased mobility is proportional to the growth of economic activities. We do not focus solely on profit, but we look for ways to assist the government in establishing an infrastructure framework that will benefit the public,” says Azmi Abdul Aziz, president and group CEO. Possessing extensive rail and bus services, Prasarana is one of Malaysia’s leading public transport providers. The public transport modal share in Kuala Lumpur is approximately 25 per cent and Prasarana aims to play a significant role to bring this number up to 40 per cent by 2030.

With its four lines, Rapid Rail serves

Azmi Abdul Aziz, president and group CEO more than 560,000 commuters daily.

Rapid Bus also serves more than 522,000 passengers daily across Kuala Lumpur, Penang, Kuantan, Kamunting and Sunway township.

Continuously evolving along with industry trends, Prasarana built its first green project in 2015 with the fully electric Bus Rapid Transit (BRT). The first BRT is being used as a basis for future lines in Kuala Lumpur.

The company’s achievements have not gone unnoticed in the industry.

Prasarana has been awarded as a World Class Mass Public Transport Provider by the Malaysia Canada Business Council for its works of international standard. The government has also been tapping Prasarana to lead joint venture projects with international companies – one of which is the Rapid Transit System connecting Johor Bahru to Woodlands in Singapore. Prasarana is in charge of the Malaysian side construction.

As Prasarana journeys through its growth path, the company is transforming itself to become financially independent from the government. To do this, Prasarana sets its sights on working with international partners.

“Part of the transformation programme is how we can best put ourselves in countries that are foreign to us. It’s time for us to be exposed to how others conduct themselves in a different way and appreciate the different environment,” Azmi says.

Prasarana aims to become a worldclass preferred transport provider and is open to partnerships with companies looking to enhance their transport infrastructure.

TESS International foresees rapid growth over the next few years as local banks harmonise their know-your-customer compliance processes, automated regulatory reporting and communications monitoring with global standards. It is expanding aggressively in the Asean region, and is taking steps to extend its reach and capture the markets of North Asia and the Middle East.

“The world is our market now,” says Liew Boon Yen, CEO and co-founder of the financial crime solutions provider.

TESS has a strong presence in Asean, where it is renowned for fast deployment of anti-moneylaundering (AML) and anti-fraud solutions that keep banks in step with regulatory protocols for fraud detection.

“Our platform is developed for speedy implementation,” says Peter Ong, chief technology officer and co-founder.

Liew and Ong founded TESS in 2000, leveraging decades of experience in investment banking and financial technology. The firm carved out a niche in AML compliance by providing flexibility to customers in configuring software to meet specific needs.

“We don’t mind taking the extra mile to help solve our customers’ pain points. All customers also enjoy the benefit of new features built into the solutions,” Liew says.

Earlier this year, TESS opened offices in Hong

(From left): Liew Boon Yen, CEO and co-founder; and Peter Ong, chief technology officer and co-founder Kong and Singapore. It will have two research and development teams – one based at the Hong Kong Science Park and another in Malaysia – in order to tune into the market needs of mainland China, Hong Kong, Taiwan and Southeast Asia. The firm’s Hong Kong office also covers Dubai and the rest of the Middle Eastern market.

TESS is also actively seeking a local partner in

Indonesia that is hungry for growth and can aggressively deploy the firm’s solutions to local banks’ compliance challenges.

“We understand the banking language. That’s why when we talk to banks, we can gauge which area needs to be addressed, and this is the valueadd we have compared to our competitors,” Liew says.

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Sponsored section in cooperation with Discovery Reports

TIMBER LAND TO REVOLUTIONISE SARAWAK RETAIL

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imber Land Group has big plans to revolutionise the retail experience in the state of Sarawak.

Leveraging Malaysia’s landmark Digital Free Trade Zone (DTFZ) project due for completion at the end of 2019, Timber Land Group intends to employ the boundless potential of e-commerce to revitalise the future of brick-and-mortar retail therapy.

The DTFZ is touted to play a crucial role within the ambitious Electronic World Trade Platform (eWTP). However, some economists have warned that the platform will signal the gradual demise of retail shopping malls.

Led by managing director Kevin Choo, Timber Land Group is confident that far from curbing shopping malls, the gateway provided by the DTFZ and eWTP will provide a platform of infinite possibilities for the evolution of retail.

“Although the change may mean a positive increase in online transaction volume, it does not necessarily suggest a fatal disruption in traditional supply chains if we are ready and equipped to utilise the opportunities such a network will bring,” Choo says. The entrepreneur known to push boundaries was awarded the Asia Pacific Entrepreneurship Award 2017 for the property development category in September for his broad-based experience in the development of

Kevin Choo, managing director residential and commercial projects, and his skill in navigating the uncertain terrain of property development in Sarawak.

Malaysia’s e-commerce market size for this year is pegged at about 24 billion Malaysian ringgit (HK$44.3 billion). From this figure however, about 20 per cent comprises products-only online sales. Although online shopping has undeniably

The Galleria shopping and hotel hub at City Square changed the way people fulfil their shopping needs, the nature of the digital world still poses sensory limitations to consumers concerned about product ergonomics.

Choo believes that there is a win-win way to boost online sales and in-store purchases. He hopes to achieve the balance through his latest brainchild, The Galleria, an integrated shopping

and hotel complex component of Timber Land Group’s multi-phased urban revitalisation project, City Square, set on prime land in Kuching, the heart of property investment in Sarawak.

Envisioned as Kuching’s lifestyle mall of choice, The Galleria will complete the emerging golden triangle shared with Kuching’s new central business district, The Isthmus, and Borneo744,

Malaysia’s first blue ocean entrepreneur township and arts district strategically located at the second bridge linking Kuching North and Kuching South.

Now at the design stage, the architecture of The Galleria is centred on a yin-yang balance between the digital and natural worlds. Choo understands that widespread use of e-commerce

will change the landscape of trade operations and consumer patterns, which in turn will affect the types of buildings required to cater to new demand. As such, The Galleria will be purposebuilt to cater to this shift.

Interested investors who appreciate that the one-of-a-kind combination of these factors will contribute to the success are invited to be a part of this flagship project. Sarawak boasts many distinctive advantages for foreign investors, namely an English-speaking state government, available workforce and natural resources. In addition, the state government is proposing new direct-flight routes to Australia, mainland China, Hong Kong and Taiwan.

Through The Galleria, Timber Land Group aims to create a springboard to launch a highly customised, surround-sound shopping experience through synthesising the best of online and offline retail therapy; an evolutionary “smart” shopping mall where algorithms can be set to personalise, propose and predict each shopping experience based on recognised buyer patterns and preferences.

“We are not seeking to replace traditional market channels or trying to create new market segments,” Choo says. “However, we do intend to drive and expand the boundaries of consumer enjoyment.”

ELCO JUMP-STARTS CLEAN, EASY AND EFFICIENT TRANSMISSION OF ENERGY IN REGION

MINOX’S VALVES AND TUBE FITTINGS STRENGTHEN SOUTHEAST ASIA’S FOOD AND BEVERAGE BACKBONE

Arguably the most dynamic and fastest-growing region on the planet, Asia constantly requires tremendous electrical power that is stable and reliable to sustain its growth. In Malaysia, Electrical Components (ELCO) ensures the transmission of this energy even as it looks towards leading the industry for power capacitors in Southeast Asia by 2019. It now exports electrical products to Myanmar, Thailand, Taiwan, the Philippines, Indonesia, Bangladesh, Vietnam and Dubai.

“We are looking to be an industry leader for power capacitors,” says Christopher Wong, managing director. Capitalising on its strong research and development and having a profound knowledge of customer requirements, ELCO is strengthening its Southeast Asian operations while preparing for future growth in China.

ELCO’s key strength has been in transmitting energy without hindrance by using reactive power compensation products and keeping harmonics in check. It possesses the necessary industry

Valves, tubes and fittings – these humble items form the backbone of food, beverage and pharmaceutical factories.

As the main supplier of sanitary and pharmaceutical-grade stainless steel valves, tubes and fittings to manufacturers across Southeast Asia, Malaysian company Minox Valves and Fittings continues to meet the highest hygiene standards of the food processing, medical and other industries.

Quality is paramount, and Minox has been ensuring that its products pass global standards.

“We started 20 years ago as a trading company selling materials from Europe and Asia,” says Minox managing director Cheong Chee Son. “So we understand the importance of branding and the significance of quality.

“We eventually started to create our own Minox brand and our own quality control department at our Malacca warehouse.”

Food and beverage accounts for 80 per cent of the company’s revenues, while pharmaceuticals make up 15 to 20 per cent. About 30 per cent of

Christopher Wong, managing director accreditations, raising its reputation for quality and reliability to previously untouched levels.

The competitive advantage of ELCO is its relationship with customers and its focus on

uncompromising quality. Invested in building a strong workforce, ELCO keeps itself ahead by being constantly prepared for technological advancements. For instance, it is studying developments and growth prospects in the transmission of power from various sources, such as solar power to grid.

ELCO is partnering with a Finnish company that specialises in providing efficient ways of generating power and rendering smooth energy flows from different power producers. It is looking at forging joint ventures in China with companies that are passionate about growing their business and expertise.

“We started teaming up with other partners that are more established players in power quality,” Wong says. “There is a need for us to learn from industry experts from all over the globe as we are taking steps to expand regionally.”

ELCO has also partnered with academia. This partnership exposes students to new trends and developments, while allowing the company to be close to groundbreaking research initiatives.

Cheong Chee Son, managing director total group revenues still come from Malaysia, while Indonesia is slowly overtaking markets such as Thailand and the Philippines. Minox is a

member of the European Hygienic Engineering & Design Group and the Food Processing Suppliers Association.

High inventory levels and strong local support are crucial for Minox, and the company has overseas branches to be near to customers. From Kuala Lumpur, the company has expanded operations to Thailand, Vietnam, the Philippines, Singapore and Indonesia. Its next branch will be in Myanmar as it plans to create an e-shop to serve Sri Lanka, Pakistan, Cambodia and Laos.

Minox is considering partnerships to serve the wider Asian market. It has received offers from various foreign companies that would like to build their presence in Southeast Asia. Among the company’s major long-standing customers are Del Monte, Dutch Lady Milk, Heineken and GEA Process Engineering Group.

“Relationships and reputation are very important to us,” Cheong says. “Our mission is to have a reliable brand name in Southeast Asia’s food and beverage industry. We want to be the best.”

PALM OIL MILLS BUILT BY BESTEEL OFFER HIGHER EFFICIENCY AND BIGGER PROFITS With experience spanning 40 years in the construction of complete crude palm oil mills, Besteel has been a world leader as a turnkey contractor in the industry. From plant concept to on-site delivery, the company has world-class project management and engineering, procurement, construction and commissioning capabilities.

Over the past 30 years, Besteel has expanded its market presence in Southeast Asia with clientele in Indonesia, Malaysia, Thailand and Cambodia, including Papua New Guinea. The company has also made inroads to West Africa, Latin America and India in the last 10 years.

“We have modernised our complete plant design and we are proud of the proven performance of our patented Tilting Steriliser System,” says Quah Ban Lee, CEO of Besteel.

The Tilting Steriliser System requires

Quah Ban Lee, CEO less maintenance and manpower, is easy to operate and possesses a more efficient and higher throughput. With its simple and brilliant design, the system has a reduced footprint and ensures the shortest steaming time in the industry. It promises minimum downtime due to lesser moving

parts, and has low capital, operation and maintenance costs. The steriliser also has a highly efficient oil extraction method that makes it even more cost effective.

With this proven system, the total investment cost of a palm oil mill with a capacity of 30 metric tonnes of fresh fruit bunches per hour can be reduced by 20 per cent. Installing the system in palm oil mills can provide a return on investment within three years.

The Tilting Steriliser System has been awarded the International Invention, Innovation & Technology Exhibition (ITEX) Gold Medal, the ITEX 2008 Best Invention for Corporate Category, and the Malaysia Innovative Product Award 2008, among others.

“The Tilting Steriliser System is indeed the best and most effective process system out there,” Quah says. “This innovative product proves Besteel’s leading position in this niche industry.”

TRL BRINGS MUSANG KING DURIAN AND OTHER EXOTIC FRUITS TO GLOBAL MARKET What started out as a side venture of sending fresh durian to Hong Kong by three friends of banking and investment background has now grown to a global enterprise. While providing consumers worldwide access to fresh and delicious tropical produce, TRL is also helping Southeast Asian farmers reap sizeable profits from their crops.

Harvested only seasonally, Musang King durian, dubbed the “King of Durian”, will soon be bought in most supermarkets and enjoyed any time of the year, thanks to TRL’s latest nitrogen freezing facility.

The company’s product is already available at grocery shelves from New York and Madrid to Shanghai and Jakarta.

In fact, frozen durian and other frozen products such as paste/ puree and pulp now account for 65 per cent of the company’s revenues.

Specialising in the exportation of fresh produce such as dragon fruit, soursop, mangosteen and sweet potato, TRL sources its products from joint-venture partner farms in Malaysia, Indonesia, Vietnam and Thailand. In Malaysia, the company Nicholas Loh founded five years ago has recorded vigorous growth as it holds strong to its principles of professionalism and honesty.

TRL’s foray into durian exportation began in Hong Kong, its second-largest market. “Around 65 per cent of our customers is from mainland China, while 15 per cent is from Hong Kong and Macau,” says Loh, who is also TRL’s managing director. “We are aggressively working to introduce our products to other markets as enquiries come in steadily.”

With demand for durian in China growing at about 15 per cent annually, TRL has started supplying to the country’s major supermarkets and food and beverage players. The company is

(From left): Nicholas Loh, founder and managing director; and Adrian Yoong, marketing director also watching developments in the e-commerce space amid the continuously growing international appetite for local delicacies.

TRL deals mostly with importers and distributors and welcomes business partnerships.

“We are seeking genuine partners that know the local market,” Loh says. “We also look for big-scale farmers with 40 to 100 hectares of land who can be long-term suppliers.”

Friday, December 22, 2017

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MALAYSIA BUSINESS REPORT ¢

ASIAN PAC’S DIVERSE AND ORIGINAL REAL ESTATE PROJECTS ATTRACT INVESTORS ACROSS ASIA-PACIFIC

T

outed as Kota Kinabalu’s onestop premier shopping destination and one of its largest retail establishments, Imago KK Times Square has set the bar for shopping centres in Sabah’s flourishing capital.

Encompassing 800,000 sq ft of world-class retail, entertainment and dining outlets, the four-level landmark mall forms part of KK Times Square – a modern, vibrant and strategically located 24-hectare mixed-use development project comprised of office, residential and commercial space.

It is Kota Kinabalu’s first non-stratified retail establishment with wholly management-owned and operated tenant stores. Since its opening in 2015, it has reached a tenant occupancy rate of 90 per cent with more than 300 retail outlets.

Imago shopping mall and KK Times Square would have been but invisible twinkles on the Kota Kinabalu horizon without the initiatives of industry-leading Malaysian real estate developer Asian Pac Holdings.

A company that is forging a reputation as the partner-of-choice among Asian and Chinese developers, consultants and contractors, Asian Pac is reputed for its first-mover advantage, strong local market knowledge and industry expertise honed over more than 100 years.

With a portfolio of projects ranging from landed real estate, strip malls and high-rise residential towers to township

Mustapha Buang, managing director

developments and niche projects such as industrial parks, Asian Pac’s generalist approach to property development is a key advantage.

“Being able to tackle a wide range of property types gives us strength in planning wider scale or stand-alone projects effectively,” says managing director Mustapha Buang. “Our differential edge is that we look into areas others tend to overlook with educated research. We focus ahead and look at what the potentials are. To a certain degree, we have a first-mover approach by looking into locations, themes and ideas that people have never tried before.”

Led by a strong management team of young multidisciplinary professionals, Asian Pac traces its expertise and origins back to 1913. The company entered Kota Kinabalu in the early 2000s through its construction of KK Times Square.

Apart from Imago, KK Times Square also houses The Loft Residences – Asian Pac’s premier residential address featuring an exclusive and integrated lifestyle experience.

Nestled within KK Times Square’s vast leisure and recreational space, The Loft Residences offers 631 highly soughtafter units ranging from US$413,898 to US$658,739 – and serviced apartments 1,834 to 4,192 sq ft in size.

Listed on the main board of the Bursa Malaysia exchange, the company’s business interests include investment

holdings, property development and investment, mall and carpark ownership and trading in building materials. By focusing on property investments with recurrent income such as the ownership and management of around 2,500 car parking bays in KK Times Square, Asian Pac keeps itself afloat through economic fluctuations.

“We are able to renew ourselves frequently because we are quite a small team – compact, agile and capable of quickly adapting to changes,” Buang says.

“We do everything in-house from leasing to facility management.”

Asian Pac’s upcoming projects include investments in off-the-radar land banks. It also envisions to expand beyond Malaysia in the future.

Driven to beget positive change in Malaysia through sustainable modernisation, Asian Pac has also earned the BCA Green Mark for its environmentfriendly projects. Certified by Singapore’s Building and Construction Authority, the BCA Green Mark scheme is an initiative to promote sustainability in the construction and real estate sectors.

“We always see how to make things work rather than see how things can’t,” Buang says. “We’ll still be looking at creating really sustainable projects that work long-term, and we’ll never say no to potential investors and partners who can bring added value to the table in terms of concepts and ideas – not just in the monetary sense.”

Sponsored section in cooperation with Discovery Reports

Fu Wing Hoong, group managing director

EITA ELEVATING TO NEW HEIGHTS EITA is a company with a clear-cut strategy for its business growth. Initially an electrical and electronics components distributor, EITA aspired early on to manufacture its own brand of products for the construction and manufacturing sectors. Leveraging its founders’ business background and technical know-how, EITA achieved phenomenal success – realising its milestone public listing in 2012. EITA’s manufacturing business contributed more than 60 per cent of the group’s revenue of 270.7 million Malaysian ringgit (HK$517 million) for fiscal year 2017.

Through its home-grown EITASchneider brand competing against established international players, EITA successfully installed lift and escalator systems for the Mass Rapid Transit (MRT) Line 1 for all underground stations. This was a major infrastructure project that had stringent technical requirements, challenging site conditions and tight deadlines. EITA has proceeded to secure a package for MRT Line 2. It further adds value by providing continuing lift maintenance and repairs.

“Not only does EITA deliver best practices in project execution, we also

have the flexibility and ability to customise to our different requirements,” says group managing director Fu Wing Hoong.

EITA also offers a suite of power distribution solutions from low-voltage products to sub-station level. It manufactures a line of bus ducts based on Japanese technology and EITA innovation under the Furutec brand. Another brand is Pyrotec, fire-resistant mineral insulated cables with the recognised KEMA-KEUR certification. This brand is fast gaining greater regional market acceptance.

With the ever-increasing demand for electricity, EITA acquired a local company specialising in the installation of power sub-stations that are able to handle up to 500kV. EITA aims to be a key regional player.

It continues to raise the benchmark with continuing product innovations, quality and safety improvements through unwavering commitment to research and development.

“With strong products, we want to become the market leader in the segments we are in,” Fu says. “We would like to capitalise on the opportunities in the Asean and Middle East, and to grow with the right partners.”

DML PRODUCTS LAUNCHES THEFT-PROOF, ECO-FRIENDLY HIGHWAY GUARDRAILS

HOUSEHOLD NAME SUN JIANG SYMBOLISES QUALITY AND AFFORDABILITY IN HOME CLEANING

In a move to diversify its business in Malaysia, DML Products is launching this year its innovative highway guardrails that feature eco-friendly materials, easy installation and anti-theft technology.

DML is known as a leading manufacturer of residential and commercial green sun protection solutions, which include metal ceiling and sun louvres.

This segment rakes in around

For Malaysian consumers, Sun Jiang Trading is more than a household name.

The group founded as small home-based bleach manufacturer five decades ago has come to symbolise the highest standards of quality and affordability in home cleaning and personal care products.

Boasting a roster of well-known brands, including Depex, Kiraw, Pipit, Tina & Biwoo, Lonkey, Toman and Liso, Sun Jiang is equally recognised as a partner of choice for original equipment manufacturers in the international space of fast-moving consumer goods. The company is expecting to grow its export arm by up to 15 per cent in five years through new opportunities, partnerships, and an expanded distribution service.

“My father and his business partner started manufacturing at home and going door to door to sell,” says Ting Young Kang, managing director.

Founded in 1967, the company attracted the attention of Colgate-Palmolive, which

25 per cent year over year, amid the challenges of a saturated market.

A key feature of doing business with DML is its custom-make services, wherein it accepts designs from clients and fulfils the product as a manufacturer and engineering consultant. “In this market, when people think of custom-made products they think of DML,” says CEO Jym Chong. “Our clients do not hesitate to do business with us given our engineering expertise.”

Jym Chong, CEO

DML’s new highway guardrails go through a powder-coating process instead of hot-dip galvanisation, which means they are safer for the environment and are cost efficient.

While the company launched the new product just this year, it has already bagged a few installation projects in Peninsular Malaysia.

On top of light and eco-friendly materials, the highway guardrails have been redesigned in cooperation with a company in Penang, to be fitted with anti-theft bolts and nuts.

“To improve our product, we started working together with our raw material supplier and with companies in South Korea, a country known for its quality standards,” Chong says.

Targeting local expansion in Malaysia to service state public works agencies and private contractors, DML will soon scale up in Southeast Asia as it continuously improves its products through an in-house research and development team, along with the expertise of external parties.

Following Malaysia, DML projects expansion in the Philippines, Singapore and Vietnam, where it houses some offices and a factory that runs 24 hours a day. The company hopes to launch an initial public offering in two years.

RIPI SEES GOLDEN OPPORTUNITIES IN ‘SUPER SWEET’ PINEAPPLE EXPORT The demand for natural and nutritious food continuously grows as more and more consumers make conscious decisions for healthier lifestyles.

Putting Malaysia on the map with its golden pieces of juicy and fragrant MD2 (ananas comosus) “super sweet” pineapples, Rompin Integrated Pineapple Industries (RIPI) answers the clamour for healthy food while providing a steady source of livelihood for the indigenous population and the local community in Pahang.

“Our brand name ROMPINE is synonymous to premium produce. We aim to showcase the premium quality of fruits from Malaysia to the rest of the world,” says general manager Patrick Teoh.

The East Coast Economic Region Development Council appointed RIPI as the anchor company in developing, operating and managing the 607-hectare pineapple plantation to help raise the standard of living in the state.

From sapling and planting research and development to upstream and downstream activities, RIPI oversees the operations to maintain the highest production quality. Other than pineapple, RIPI manufactures tropical fruit snacks such as dried papaya, guava and jackfruit.

RIPI exports 70 per cent fresh fruit and 30 per cent processed products such as fruit snacks and juices. The company primarily caters to China, Japan and South Korea – export markets where consumers have very discerning tastes when it comes to products.

RIPI is now preparing in earnest to serve the biggest consumer market in China as the company is the export permit

Patrick Teoh (left), general manager, and the sales team

Our brand name ROMPINE is synonymous to premium produce.

We aim to showcase the premium quality of fruits from Malaysia to the rest of the world Patrick Teoh General manager, RIPI

holder in Malaysia that complies with China’s stringent health standards and the requirements under the country’s General Administration of Quality Supervision, Inspection and Quarantine. With such accreditations, RIPI envisions greater brand and product awareness internationally.

As it builds its capacity for future growth, RIPI is expanding its plantation wherever feasible. With this development, RIPI plans to expand its pineapple plantation in Malaysia to 5,000 hectares within five years.

“We aim to unite the industry together by providing our know-how and standard operational procedure. In doing so, we hope we can help the industry grow together,” Teoh says.

(From left): Ting Young Kang, managing director; and Ting Young Nin, executive director bought two of its famous brands Kiraw and Pipit before being owned again by Sun Jiang.

Celebrating its 50th anniversary this year, the family-owned business has a

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network of 5,000 accounts across Malaysia, attracting deals from big league players such as Tesco and Giant. It has presence in Brunei, the Philippines, Thailand, Vietnam and Seychelles, and

ties with key supply partner Lonkey Industrial based in Guangzhou, China.

With an international reputation for service reliability backed by a robust distribution network, Sun Jiang is a top choice for global retail and wholesale brands. The company is actively engaged in representing other brands wishing to bring their businesses into Malaysia or venturing into partnerships in nonperishable goods.

Sun Jiang also provides advice to other companies on what types of marketing they can do, whether it be consumer education schemes or learning cultural nuances that consumers could accept.

“We welcome partners that understand our philosophy and share our mindset,” Ting says. “We seek distributorships; while in turn we offer networking. Our knowledge of the local market is the value we bring to our partnerships.”

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Friday, December 22, 2017

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MALAYSIA BUSINESS REPORT ¢

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PROPERTY GIANT GBG PLAYS IMPORTANT DEVELOPMENT ROLE IN NATION-BUILDING

A Azizan Jaafar, group CEO

zizan Jaafar sees great opportunities ahead for Gabungan AQRS (GBG) with construction and property development booming across Malaysia. Having seen tremendous successes since he became group CEO in April last year, Azizan expects further growth for the company, considering its significant involvement in the government’s ongoing infrastructure and property development programme.

From Sabah in the east to Pahang in the west, GBG is one of the country’s fastest-growing all-around construction and property development companies.

But GBG stands out in the industry because it has been successfully upgrading Malaysia’s property landscape using its own brand of excellent workmanship.

“It is an exciting time for the country and we are proud to be involved in many special development projects. These

engagements have enabled us to help the nation transform its dreams into reality,” Azizan says.

One cannot get a closer glimpse of Malaysia’s infrastructure development than from the vantage point of GBG. In only 18 months, the group managed to increase the overall value of its book orders and projects 15-fold to 2.9 billion Malaysian ringgit (HK$5.34 billion) from only about HK$366 million in April last year.

Some of GBG’s involvement is in building more than 3,000 units of affordable high-quality homes under the government’s PR1MA project in key urban centres in Malaysia’s Pahang and Selangor states. On the infrastructure side, the civil engineering expert is also involved in a HK$1.1 billion road project in partnership with China Communications Construction in Kuala Lumpur. One of the biggest investments made by the Chinese government, the collaborative venture will construct a 600km railway east of Kuala Lumpur.

Transformation on track When Azizan took over the management of GBG Group, he formed TEAM GBG. With his vision and leadership, the team has successfully gone through the group transformation.

In line with the group’s monetisation exercise to reduce its gearing ratio, profit after tax and non-controlling interests improved as a result of the reduction in finance cost due to gradual repayment of loans. Finance cost went down to 3.4 million ringgit in the second quarter this year compared to 3.9 million ringgit in the first quarter of the same year. Gearing dropped from 0.79 in the first half of last year to 0.73 in the first half of this year and is expected to further go down to 0.4 by the end of this year.

As part of measures taken to improve operational efficiency under the transformation, operating costs as a percentage of revenue dropped from 17.6 per cent last year to 16.3 per cent in the first quarter of this year and subsequently to 12.4 per cent in the second quarter of this year.

From Sabah in the east to Pahang in the west, GBG is one of the country’s fastestgrowing all-around construction and property development companies “We looked at the old business model and came out with a new direction for the group,” Azizan says. “We managed to create a strong team that is able to perform and deliver while creating value for the shareholders.”

After managing a turnaround last year, GBG is forecasting a 100 per cent earnings growth for all of this year.

Investors are quick to take notice of the company’s good showing. In only 12 months, shareholdings of institutions such as pension and insurance funds have grown from zero to 47 per cent of total equity.

“For a company of our size, that is a very big percentage share,” Azizan says.

“This is truly a big milestone for us.”

The goal of the group’s restructuring programme, however, goes beyond securing GBG’s long-term financial strength. Drawing on its rich experience and technical capabilities, the company also aspires to build a reputation for exceptional value creation through its infrastructure and property development projects.

Malaysian brand of excellence “We have been developing the company to have this particular complexion, or reputation for excellence and want the people to associate GBG with the creation of exceptional values,” Azizan says. “The whole organisation, from the board members and senior managers through to the employees, is focused on making that complexion or branding clearer to everyone.”

Azizan recalls a time when Malaysia did not yet have such engineering expertise to build skyscrapers and other complex structures.

“Take the Petronas Twin Towers. One of its buildings was built by the South Koreans, while the other was constructed by the Japanese,” Azizan says.

“Malaysian engineers and contractors, however, now have the capability to do all these demanding projects. As far as GBG is concerned, it has proven time and again that it is quite capable of delivering what is required by its business partners and clients.”

Such genuine commitment to quality will be one of the highlights of GBG’s One Jesselton Waterfront project. A mixed

residential and commercial property development in collaboration with Suria Capital Holdings with a gross development value of 1.83 billion ringgit, the undertaking includes a premier lifestyle mall, luxury hotel, serviced suites, condominium, the new Suria Capital corporate office and the Jesselton Point Ferry Terminal. Construction will commence in the second quarter of next year with completion slated for 2022.

“It will be a ‘destination within a destination’,” Azizan says. “We welcome high-net-worth individuals and other property buyers from Hong Kong, mainland China, Taiwan and elsewhere around the world to experience fine living by the Kota Kinabalu seafront.”

Designed partly by globally renowned architects and urban planners JERDE of the United States and GDP Architects of Malaysia, GBG envisions One Jesselton Waterfront as the new city centre of Kota Kinabalu. GBG will complement the condominium and luxury hotel complex with other support infrastructure. One Jesselton Waterfront will be strategically located between the international cruise terminal and the regional ferry terminal.

These segments will showcase a 30-metre wide waterfront boardwalk overlooking South China Sea and will offer a panoramic view of Kota Kinabalu’s renowned sunset.

GBG has entered into a memorandum of understanding with Tera Capital on a strategic partnership in July of this year.

The two companies will invest, construct and develop the hotel, serviced suites and condominium within the 2.5-hectare One Jesselton Waterfront mixed integrated development. Tera Capital is a Singaporebased investment firm with interests in hotel, real estate, and technology businesses. Together with the Frontier Group of Companies, Tera Capital operates Days Inn China with a portfolio of more than 190 hotels across more than 102 cities in 23 provinces in China. Its brands include the five-star Days Hotel and Suites.

Accredited under the Tourism Oriented Development and Transport Oriented Development of the Ministry of Tourism and Culture Malaysia, One Jesselton Waterfront will be only 400 metres from the proposed light railway transit. Further 800 metres north within the integrated Jesselton Masterplan will be the Sabah International Convention Center (SICC). Upon completion, SICC will be the main venue for meetings, incentives, conferences, and events in Southeast Asia.

Across the sea on the west side of Malaysia, GBG is also being awarded a 362 million ringgit design-and-build contract for the state administrative centre Pusat Pentadbiran Sultan Ahmad Shah in the new city centre Kota Sultan Ahmad Shah (KotaSAS), in Kuantan, Pahang. Covering more than 600 hectares, the KotaSAS township project forms part of the government’s East Coast Economic Region Master Plan, which centres on Kuantan.

“We are first movers in lesser-known areas that nonetheless possess strong underlying growth potentials,” Azizan says. “This was our reason for choosing Kota Kinabalu and Kuantan, which exhibit highly promising business outlooks.”

More promising opportunities ahead Such an optimistic business development strategy seems feasible. For one thing, the local construction industry is expected to continue expanding in real terms through to the year 2020. The uptrend would likely develop as the government further improves on the country’s transport network and tourism infrastructure while addressing the housing shortage.

To capture these opportunities, GBG is embarking on the second phase of its business plan. Aimed at further expanding its book orders, the company will continue to systematically work to acquire a strong pipeline of construction projects, grow its landbank for property development and explore collaborative partnerships to develop property products designed to capture the market’s attention and imagination.

GBG welcomes partners with vast underlying potentials. Its investment in SEDCO PRECAST, for instance, is well aligned with GBG’s long-term goal of becoming a one-stop centre in the construction and property development verticals. As a leading precast concrete provider in Sabah, SEDCO PRECAST has been enabling GBG to pass on to clients the competitive advantages brought on by having among the best and most efficient facilities and processes for fabricating a whole range of precast concrete products. It will be a direct beneficiary of the Pan Borneo Highway Sabah starting next year.

“We are always open to engaging with organisations and people who share our core values and who are willing to grow with us for the long term,” says Ow Chee Cheoon, GBG’s deputy group CEO. “GBG is a company that does not only look after its own interests, but also after those of its partners. It is always a win-win.”