EUMCCI Review|Vol 5|No 1|2017|PKNS by Harini Management Services Sdn Bhd

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VOL 5 / NO 1 / 2017

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PKNS GOES ALL NATURAL & ECO-FRIENDLY Contemporary Homes & Work Spaces Built To Sync With Nature

Strengthening Synergy between the EU and Malaysia Tan Sri Dr. Rebecca Fatima Sta Maria, Chairperson, EUMCC

Europa Awards for Sustainability 2017 Nominations open until 3rd November 2017

Malaysia, an Attractive Destination for FDI Tan Sri Irwan Serigar Abdullah, Secretary General, Ministry of Finance

SAFE, COMFORTABLE & FRIENDLY Jambatan Kedua Sdn Bhd (JKSB), a wholly owned company by Minister of Finance Incorporated, is the appointed concessionaire to design, construct, manage, operate and maintain the Jambatan Sultan Abdul Halim Mu’adzam Shah (JSAHMS), a second bridge connecting the mainland to Penang Island. It is an ISO certiﬁed organisation in Quality Management Systems (QMS) 9001, Environmental Management Systems (EMS) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001. JSAHMS was oﬃcially opened on 1 March 2014 by the Honourable Dato’ Sri Mohd Najib bin Tun Abdul Razak, the Prime Minister of Malaysia. Launched under the Ninth Malaysia Plan, the bridge will not only be providing an alternative route linking the mainland to Penang Island, but also a catalyst for the rapid socio-economic development and growth in the Northern Corridor Economic Region (NCER).

Jambatan Kedua Sdn Bhd 4th Floor, Bangunan Setia 1, 15 Lorong Dungun, Bukit Damansara, 50490 Kuala Lumpur. Malaysia Tel: +603-2084 5000 Fax: +603-2084 5103 Hotline: 1300-30-2828

www.jambatankedua.com.my aduan@jambatankedua.com.my /jsahmsoﬃcial @jsahmsoﬃcial

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CONTENTS 03

From the CEO

PKNS Goes All Natural & Eco-Friendly In Selangor: Contemporary homes & work spaces built to sync with nature

Tan Sri Dr. Rebecca Sta Maria, Chairperson, EUMCCI: Strengthening Synergy between the EU and Malaysia

EU Trade and Investment Forum

Europe Day 2017

Malaysia, An Attractive Destination for Foreign Direct Investment

Marine Energy, Powering the Future

Europa Awards for Sustainability 2017

Why Malaysia is Critical for Singaporeâ&#x20AC;&#x2122;s Continued Success

Harmonising Food Safety Standards Across the EU and ASEAN

28 Country Focus: Czech Republic 31 Chamber News 33

Corporate Partner News

New Corporate Partners

40 Lifestyle: Spanish Flavours at Cava Restaurant & Bar

08 2

EUMCCI REVIEW

VOL 5 / NO 1 / 2017

From The CEO Dear EUMCCI Members and Review Readers,

ROBERTO BENETELLO CEO

We kicked off 2017 armed and ready for a new phase of growth. We have renewed our commitment to reshape ourselves as the “Chamber of Chambers” with an array of events that not only benefits us, but also the platform that we promote and support. In recent months EUMCCI has been further strengthened with the election of our new Chairperson Tan Sri Dr. Rebecca Fatima Sta Maria who has brought to the Chamber valuable experience and unmatched standing, together with the opportunity of getting closer to Malaysian policy makers, stakeholders and society. We look forward to the new course that EUMCCI will take under the leadership of Tan Sri Rebecca and I take this opportunity to welcome her to our association. Our commitment towards sustainable development for EU businesses in Malaysia will be realised with the return of the Europa Awards for Sustainability initiative with a more comprehensive range of categories consistent with the EU’s sustainable development values. We anticipate participation not only from EU-related companies but also from Malaysian companies aiming to create an affiliation with the EU that would strengthen EU-Malaysia relationships. The success of the soft launch held recently, further solidifies our stance on this initiative and we look forward to highlight this with several events that will eventually lead up to the Europa Awards Gala event in November. Building up to our commitment as the “Chamber of Chambers”, we began a series of VIP Luncheons, a series to further foster the EU-Malaysia relations and an opportunity, not only for EUMCCI, but also for our members from all the bilateral Chambers to reinforce their commitment in being a long term strategic partner and aid in the expansion of the Malaysian economy. And mixing it up, we look to close the year with celebrating all that we represent with one of our favourites – the Tastes of Europe. What better way to end the year! With that, I thank you for your support and look forward to seeing you at our events!

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Cover Story

PKNS GOES ALL

NATURAL & ECO-FRIENDLY

IN SELANGOR

Experience the perfect fusion between nature and modernisation with PKNS creating homes and work spaces that ooze contemporary charm while in sync with nature. Photos by Mazlan Mohamad

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Cover Story

ealising the importance of a sustainable future, the Selangor State Development Corporation (PKNS) has embarked on a mission to create sustainable and eco-friendly housing and commercial developments. With a 53-year track record, PKNS which is synonymous with quality and reliability, will launch 12 projects this year in the established townships of Petaling Jaya, Kelana Jaya, Kota Damansara, Bangi, Shah Alam, Alam Nusantara, Antara Gapi and Bernam Jaya. The projects include 10 residential and two commercial developments. This emphasis on a sustainable future is seen in its latest projects Puteri Daffina 3 and Puteri Elaisha in Kota Puteri, a contemporary suburban township in Batu Arang, Selangor, that is complemented by excellent accessibility via the Latar Highway, Guthrie Corridor Highway and the Shah Alam-Batu Arang Highway. The residential precincts are set within a mature neighbourhood with modern infrastructure and conveniences. Both developments will be launched in August and scheduled for completion in December 2017. PKNS is offering buyers attractive perks such as a discount of up to 12 per cent under the Smart Ownership Program and free legal fees for SPA.

PUTERI DAFFINA 3 Located within the scenic enclave of Seksyen 2 in Kota Puteri is the Puteri Daffina development comprising 42 units of double-storey link houses spread across 204.77 acres. Designed to exude modern charm with its sleek lines and simple elegance, the homes boast vibrant architecture to suit the bright tropical environment. The horizontal and vertical elements of the home are carefully blended with sloped and concrete flat roofs to provide a conducive living environment. Earth tones and subdued colour schemes are used on faรงades of the homes to create a picturesque portrait of the enclave. The leasehold development, targeted at young adults and families, features homes with built-up sizes ranging from 2,066 sq ft to 2,151 sq ft with dimensions of 24ft x 65ft The homes offer a beautiful and serene setting with broad

boulevards and well-lit surroundings, complemented by lush greenery.

PUTERI ELAISHA Seksyen 8 of Kota Puteri has an elegant development of 161 doublestorey link houses spread across 10.2 acres, called Puteri Elaisha. Featuring contemporary tropical and modern facades, the homes boast a unique combination of flat roofs and attractive pole designs. The homes that come with a tropical themed faรงade present doublepitched roofs, combined with the use of earthy colour tones that go well with the environment. The homes offer spacious built-up sizes ranging from 1,993 sq ft to 2,109 sq ft with dimensions of 20ft x 70ft.

PKNS HEADQUARTERS AWARDED PLATINUM IN GBI On track with its sustainability focus,

EUMCCI REVIEW

Cover Story

PKNS unveiled its new headquarters in Section 14, Shah Alam, Selangor, which won the Platinum rating in the Green Building Index (GBI). The Platinum Certificate was awarded for Design Assessment (DA) for office and retail on the ground floor, on 30th April 2014. Furthermore, the PKNS new headquarters also won an award in the "Best Office Development Malaysia" category of the Asia Pacific Property Awards 2013-2014, by the international property media of the United Kingdom. In May 2017, the head office also received the "Best GBI Rated Corporate Office" award in the Prestigious Developer Awards 2017. It also won the Malaysian Institute of Architects (PAM) Gold award 2017 in the "Commercial Low Rise" category. The development is set to be a prominent venue where people can enjoy the view and work in a healthy environment. Officially opened by the Sultan of Selangor in August 2017, the glistening new icon at the heart of the state’s capital is the first landmark by PKNS in Selangor to incorporate the green and eco-friendly concept. The building is set on 1.86 hectares of land and has a gross development value of RM170 million. This monument of sustainability in Shah Alam boasts low energy consumption and is purposed to optimise the use of renewable resources such as rainwater and solar

EUMCCI REVIEW

energy. The PKNS Corporate office was conceptualised to optimise the use of natural sunlight, thus reducing the need for electricity, complemented by rainwater harvesting system for irrigation of its landscape, greywater recycling and water efficient fittings which contribute to reduction in potable water usage. Set to deliver long-term savings in utilities of up to 60 per cent, Laman PKNS uses solar tubes, lowemissivity glass to offset radiant heat, energy saving LED lights in offices and a breath-taking rooftop garden. Consisting of 553,000 sq ft of floor area within four building blocks, with half of the space allocated for offices, Laman PKNS also comprises an auditorium, a multi-purpose hall and rooftop recreational space. One of the highlights of the building is the sweeping profile of the roof which flows ever so naturally.

Rising from the lakeside, the oversailing roof doubles back towards the lake again and connects the lakeside garden on the ground floor to the rooftop garden without compromising the “walk in the garden” experience. Due to the high elevation, the viewing decks offer a panoramic view of Shah Alam’s Lake Garden, the state mosque, Selangor State Secretariat Building and the surrounding areas. The lush green landscaping with its 15 species of trees and 27 species of shrubs, was conceptualised to reflect the design of the aerial roots of mangrove trees seen in the way the winding pathways, the flowing pattern of the paved walkways and the water features. In the same way, the oval shaped planters and shelters are a reflection of the leaves and seeds of the mangrove tree. For more information on PKNS projects, visit www.pknsproperty.com. 

Feature

STRENGTHENING SYNERGY BETWEEN THE EU AND MALAYSIA Tan Sri Dr. Rebecca Fatima Sta Maria, who was recently appointed Chairperson of the EUMCCI, speaks about the need for greater synergy between EU businesses and Malaysian businesses and the factors that will drive this synergy.

s an emerging economy, Malaysia today plays an important role in the EU’s efforts to reach out across the globe. With its cultural, ethnic and religious diversity, Malaysia reflects European diversity and makes for a good partner on the global stage. Cooperation in trade and economic issues have been the driving force for closer ties between the EU and Malaysia. In speaking about her new role in the EUMCCI, Tan Sri Dr. Rebecca sees herself as a bridge between the government and the chamber, which she believes is a more important role. “When I was in MITI (Ministry of International Trade & Industry), I saw engagement with the private sector as very important, especially in making policies,” she explains. “The chamber has to go beyond just engaging with MITI as there are other parts of government that are equally important. Therefore, it’s not only about engaging the Ministry of Domestic Trade, Co-operatives and Consumerism, MIDA (Malaysia Investment Development Agency) or MATRADE (Malaysia External Trade Development Corporation), it’s also about engaging the Home Ministry, the Immigration Department, among others, in order to address issues that pertain to the business community,” adds Tan Sri Dr. Rebecca. Tan Sri Dr. Rebecca stresses that it is important to build confidence between government and the business community. “When people think of government, they think of inefficiency and bureaucracy. Therefore, both the government and the business community need to understand and trust each other. To achieve that, we need structured engagement efforts and not just ad-hoc initiatives,” she shares. Relationships have to be built and once that is done, she explains, the promotion of the country is synergised.

MALAYSIA’S EXCELLENT INFRASTRUCTURE Touching on Malaysia’s infrastructure, Tan Sri Dr. Rebecca notes that Malaysia has excellent infrastructure. “It is not only about physical infrastructure but also about regulatory infrastructure as well as the connectivity between Malaysian and EU businesses.”

EUMCCI REVIEW

Referring to the various facets of infrastructure which include people and ICT among others, Tan Sri Dr. Rebecca says, “We are doing quite well in the region and we have a value proposition in that context, and companies that are here are happy to be doing business in Malaysia.” She adds that despite that, there is still room for improvement, “Regulations need to be transparent, predictable and consistent – areas which need further improvement. “Thus far, we have done well – there is a framework for engaging businesses when making changes to regulations, such as the budget dialogues with businesses and the MITI annual dialogues, among others. This has established coherence across business communities and government agencies, and that helps,” she noted. To a question on the ‘friendliness’ of Bank Negara Malaysia’s (BNM) regulations for EU companies operating in Malaysia, Tan Sri Dr. Rebecca said, “In the past, all the different chambers have engaged with Bank Negara and got a better understanding of the regulations. At the end of the day, it is about understanding what the intention is and how it is going to be administered. The measures taken subsequent to engagement by BNM has worked out quite well,” she states. She notes that when an announcement is made before engaging with the people, people get upset and raise concerns, because they are only looking at the dark side of things. “However, when there is engagement and explanations on the rationale and outcomes hoped for from the regulatory change, and people are given the opportunity to voice their concerns, that’s what helps,” she elaborates.

CHALLENGES FACED BY EU COMPANIES DOING BUSINESS IN MALAYSIA AND VICE VERSA On challenges faced by EU companies doing business in Malaysia and Malaysian companies conducting business activities in the EU, Tan Sri Dr. Rebecca explains that it is important for the chamber to engage with Malaysian and EU businesses. “There needs to be an understanding of the regulations and to know what to do about it,” she shares. Stressing that Malaysian businesses operating in the EU

Feature

“WE HAVE GOOD MODELS HAPPENING IN PENANG WHERE UNIVERSITIES AND INDUSTRIES WORK TOGETHER TO BUILD SKILLS AND PREPARE THE YOUNG PEOPLE TO BE ABSORBED INTO THE INDUSTRY.” ~ TAN SRI DR. REBECCA FATIMA STA MARIA

create jobs in those countries and likewise, EU companies operating in Malaysia create jobs for Malaysians, Tan Sri Dr. Rebecca iterates that, “It is not only about fixing our regulations, it is also about the EU side helping Malaysians, especially SMES, to understand EU regulations. “For example, when we were undertaking the EU FTA, in the early days of the negotiations, one of the biggest red flags for us was the issue with market access for palm oil. What we did was, we took them to a plantation, a mill and had the dialogue with industries so that they were able to understand how sustainable our palm oil production is,” she explains. On Malaysia’s strengths and our ability to compete alongside neighbouring countries, Tan Sri Dr. Rebecca stresses that Malaysia has its strengths, some of which include cost competitiveness and our linkages across the region. “We have strong resource-based industries and a business-friendly government,” she points out.

INDUSTRY 4.0 In talking about Industry 4.0, Tan Sri Dr. Rebecca expresses disappointment that people often tend to think that Malaysians are just producing widgets, “That’s not true. In fact, if you go down to the Kulim Hi-Tech Park and observe what’s going on there, you will realise that they are doing some very interesting hi-tech work.” She stresses that there are companies that are under the radar who are doing extensive research, biotech and biomedical engineering, and stem cell research. “We are in it,” she says referring to Industry 4.0.

In drawing companies into Malaysia, there is a need to have that balance between education, skills training and industry, notes Tan Sri Dr. Rebecca. “We have good models happening in Penang where universities and industries work together to build skills and prepare the young people to be absorbed into the industry,” she adds. She reminds that there is a need to keep progressing and building capacity for the country as well as to keep drawing on these types of investments, referring to Industry 4.0. “What we need to do more is to get big businesses to meet with SMEs so that these SMEs can tap into the value chain of these bigger companies,” she says. The key to success is to encourage Malaysian SMEs operating overseas to form links to suppliers as well as with EU MNCs in order to create a robust business environment. 

EUMCCI REVIEW

Feature

EU-MALAYSIA TRADE & INVESTMENT FORUM 2017 The forum brought together members of the local and European business communities together with industry players and Malaysian government agencies to discuss innovation and productivity as well as Industry 4.0.

UMCCI held its annual EU-Malaysia Trade & Investment Forum 2017 themed “Innovation and Productivity” in Kuala Lumpur on 27 April 2017. It was aimed at improving productivity and competitiveness for Malaysia’s manufacturing and services sectors by encouraging businesses to adapt and embrace innovation and the diffusion of new technologies. In conjunction with the forum, EUMCCI also launched the EUMCCI Trade Issues and Recommendations 2017 publication, in line with the Chamber’s mission to facilitate and improve business relations and investments between the EU and Malaysia. The publication is a collaborative project by the EUMCCI committees, summarising the work of the committees from nine sectors, presenting the most pressing issues and recommendations for improvements to the Malaysian authorities.

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H.E. Maria Castillo Fernandez, Ambassador and Head of Delegation of the European Union to Malaysia and Datuk Chua Tee Yong, Deputy Minister of the Ministry of International Trade and Industry (MITI), officiated the event. Datuk Chua said that forums can serve as platforms for foreign businesses to raise concerns and highlight challenges they face in doing business here. “We take this as an opportunity to share the government’s plans and strategies in moving the industry forward, apart from understanding the recommendations to further facilitate ways of doing business in the country.” Innovation and productivity are closely linked to Industry 4.0, which has become the recent buzzword. Malaysia has also joined the bandwagon by focusing on innovation-driven, technology-oriented and high-value added industries, in moving towards an advanced economy and to stay globally competitive.

From left: H.E. Dag Juhlin-Dannfelt, Ambassador of Sweden to Malaysia, Mr. Roberto Benetello and Tan Sri Dr. Rebecca Sta Maria.

From left: H.E. Rudolf Hykl, Ambassador of Czech Republic, H.E. Attila Kali, Ambassador of Hungary and H.E. Carlos Domínguez Díaz, Ambassador of Spain to Malaysia.

“We hope, by employing automation and smarter ways of manufacturing, it would eventually open new markets, drive economic growth and provide high income jobs for the country,” said Datuk Chua. MITI, together with the Malaysian Investment Development Authority (MIDA) is also embarking on several measures including undertaking an industrial study titled “Future of Manufacturing: Industry 3+2 Sectors”. The government has identified innovation and productivity agenda under various programmes within Malaysia, including the Eleventh Malaysia Plan. Among them are 2017 being earmarked as the year of Internet Economy for Malaysia, the establishment of the world’s first Digital Free Trade Zone (DFTZ) championed by the Malaysia Digital Economy Corporation (MDeC), and the National Internet of Things Roadmap led by MIMOS.

The DFTZ,which was launched in March, is designed to provide physical and virtual zones to facilitate SMEs to capitalise on the convergence of exponential growth of the internet economy and cross-border e-commerce activities. It will act as a microcosm to support internet companies in trading, services, innovation and creation of solutions. In 2015, Malaysia rolled out the National Internet of Things (IoT) Strategic Roadmap which serves as a guide to move Malaysian into becoming a premier regional IoT hub and to boost the country’s innovation competitiveness. Malaysia’s digital economy contribution to the Gross Domestic Product was 17.8 per cent in 2015, and is expected to hit 18.2 per cent, the target set for 2020. Mr. Roberto Benetello, Chief Executive Officer of EUMCCI said that EUMCCI is determined to be the goto-platform for the EU business community “where we can

Tan Sr Dr. Rebecca Sta Maria (centre) and Mr. Roberto Benetello (left) with the panel of speakers.

EUMCCI REVIEW

Feature

MALAYSIA-EU TRADE RELATIONS • Malaysia has a long-

standing relationship with the EU. In 2016, trade with the EU increased by 0.4 per cent to reach RM149.1 billion. Malaysia’s exports to the EU grew 1.2 per cent to RM79.8 billion, with the top five export destinations being Germany, the Netherlands, the United Kingdom, France and Italy.

• In terms of investments,

Launch of EUMCCI Trade Issues and Recommendations 2017 publication. From left: H.E. Maria Castillo Fernendez, Mr. Roberto Benetello, Datuk Chua Tee Yong and Tan Sri Dr. Rebecca Sta Maria.

aggregate business critical issues into recommendations for our stakeholders to make Malaysia a friendly business environment for EU businesses”. He explained that the EUMCCI's role as a Chamber of Commerce will streamline the EU business community’s advocacy efforts towards improving the regulatory environment in Malaysia by creating an ecosystem for businesses to flourish. During the forum, EUMCCI also announced the appointment of Tan Sri Datuk Dr. Rebecca Sta Maria as its new Chairperson. She was formerly the Secretary-General of the Ministry of International Trade and Industry. Tan Sri Datuk Dr. Rebecca said that she strongly endorsed “the Chamber’s vision to be the advocacy platform for its members, other EU Bilateral Chambers and the EU business community to facilitate communications of business critical issues with local authorities and stakeholders.” 

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as at December 2016, significant investments were approved from the EU region in the manufacturing sector. About 2,235 manufacturing projects were approved with total investments of RM113.1 million, which will potentially create 262,118 job opportunities.

• Germany, the Netherlands, the United Kingdom, France, Spain and Italy are Malaysia’s top six foreign investors.

• Malaysia looks forward to

resuming the Malaysia-EU FTA negotiations.

HIGHLIGHTS OF PANEL DISCUSSION Dato’ Steven Wong • Gaps should be considered when going into automation and Industry 4.0. • Commercialisation must support innovation and productivity. • It is important to keep up with technology and its evolution as well as the movement in the digital economy. • Intellectual property must be preserved.

Dato’ Mohd Razali Hussain • In driving innovation and productivity, benchmarking is important in quality of life and infrastructure, which also contributes to Malaysia’s competitiveness rankings. • Collaboration and engagement among industry players is vital in fuelling innovation. • Both hard skills sets and soft skills sets are required in driving Industry 4.0.

Mr.Thomas Zimmerle • Malaysia offers excellent support and policies by the government in supporting businesses in the country. • The role of the government is increasingly under the microscope in terms of driving Industry 4.0 because the technology business is growing fast. • Malaysia has a good environment for business. However, the competitiveness of the country needs to be at a certain level in terms of language, skills and other aspects.

Mr. David Jones The key issues that need focus in Malaysia are • Development of human capital with the right skills sets to cater to the needs of the industry. • A focus on development is important in terms of process and efficiency improvements, among others. • Collaboration and team work between industries is needed to build strength among industry players in Malaysia. • Access to good capital/ loans for business is crucial in driving economic growth. • Automation is critical in reducing the dependency on foreign labour. • Building on the ease of doing business is the right step in drawing and attracting investors.

Dato' Wan Hashim Wan Jusoh • MIDA promotes investment into the country and coordinates industrial development, manufacturing and services. • It formulates strategies and policies, and works closely with MITI and other relevant government agencies. • MIDA pledges a strong commitment to supporting entrepreneurs and investors who are interested in doing business in Malaysia. • MIDA provides evaluation and assessment on the business proposal and brings it up to the relevant committees for approvals.

QUESTIONS FROM THE FLOOR

To a question by a representative from the Belgium Trade Commission on whether there are any Malaysian companies that focus on improving productivity and driving Industry 4.0, Dato’ Wan Hashim said that certain manufacturing companies in Malaysia are moving towards that direction, a significantly positive move towards Industry 4.0. To another questions on how crucial government policies, interventions and deregulation are in moving the industry forward, Dato’ Steven responded that deregulation and regulations should not hamper progress in the industry and instead should complement it. On whether the government is able to keep up with the “one-size-fits-all” policy where Industry 4.0 is concerned, Dato’ Razali pointed out that initiatives carried out and measurements used in evaluating progression need to be complemented by other measurements, “It is not possible to look from one aspect alone.” Dato’ Wan Hashim explained that MIDA has formed a special task force to study and participate in the implementation of Industry 4.0. He said that MITI is organising consultation sessions with relevant government agencies to create awareness and significance of Industry 4.0.

INNOVATION AND PRODUCTIVITY TO DRIVE MALAYSIA’S ECONOMY A panel of speakers discussed innovation and productivity in the Malaysian economy. The session was moderated by Kamarul Bahrin, Deputy Editor-in-Chief, TV journalist and anchor from Astro Awani. The Panellists Comprised: • Dato’ Mohd Razali Hussain, Director General of Malaysia Productivity Corporation. • Mr. David Jones, General Manager of RUAG Aviation Malaysia. • Dato’ Steven Wong, Deputy Chief Executive, Institute of Strategic & International Studies (ISIS) Malaysia. • Mr. Thomas Zimmerle, Chief Financial Officer of Infineon Technologies. • Dato’ Wan Hashim Wan Jusoh, Deputy CEO III of Malaysia Investment and Development Authority (MIDA).

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Feature

Datuk Paul Low and H.E. H Maria Castillo Fernandez, together with ambassadors of EU countries to Malaysia, raising a toast.

Europe Day 2017 was celebrated with an exciting showcase of European cuisine and culture, drawing together the diverse European communities in Malaysia. Photos by V. Chanthiran

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Some of the invited guests who attended the event.

H.E. Dr. Mabaphuthi Moorosi-Molapo, High Commissioner of Lesotho to Malaysia (right) and a guest.

H.E. Maria Castillo Fernandez with Datuk Paul Low, H.E. Petri Puhakka, Finaland's Ambassador to Malaysia (right) and a guest.

Mr. Allan Jensen (second from right), Director EUMCCI, and his wife Dora Chu Jensen flanked by Mr. Joakim Larsen (right), Deputy Head of Mission, Danish Embassy, and his wife Cathrin Larsen (left).

ore than 300 invited guests, including several EU Ambassadors in Malaysia, joined the celebration to mark the 60th anniversary of the European Union’s founding Treaty of Rome. This treaty was an agreement between six founding countries to create the European Economic Community, the forerunner of the EU. The event, themed Rasa Europah and held at the JW Marriot Hotel, was hosted by Her Excellency Maria Castillo Fernandez, EU Ambassador and Head of Delegation of the European Union to Malaysia. Datuk Paul Low, Minister in the Prime Minister’s Department graced the event and raised a toast to the success and prosperity of the European Union, its member states and its people. H.E. Maria Castillo Fernandez welcomed guests and fellow EU representatives to the event and expressed hope for a stronger bilateral partnership between the EU and Malaysia. She stressed the importance of breaking down barriers and working together to achieve greater traction for both the EU and Malaysia. It was a gastronomical fare as guests got to savour a wide range of European food and wines. There were also 17 booths presenting information and delicacies from European countries. The festive atmosphere was further brightened with the splash of colours at the exhibition booths, elegant native attire worn by some of the exhibitors and the mouthwatering display of finger food, fine delicacies and delicious colourful desserts. A wide variety of wines and cheeses were also provided at the various booths, demonstrating the important role of wine and cheese in most European delicacies. The guests from Malaysia and international

H.E. Karin Mössenlechner, Ambassador of the Netherlands to Malaysia (second from left) and H.E. Carlos Domínguez Díaz, Ambassador of Spain to Malaysia (second from right) with guests.

communities mingled freely while savouring the food and drinks from across Europe. The event also provided an excellent opportunity for the local business community and distributors to get to know authentic European cuisine and to forge business ties. H.E. Dr. Mabaphuthi Moorosi-Molapo, High Commissioner of Lesotho to Malaysia who attended the event, said, “This is a great event. It’s a united effort of the EU member states in working together for the development of their respective countries. The special focus on building a relationship between Malaysia and the EU is very good.” Mirjam Hager, German Capacity Building & Intercultural Coordinator from the German-Malaysian Institute, who was there to showcase one of the institute’s industrial communications equipment said, “This event shows a united front among countries in Europe. It’s a great way to communicate, form new partnerships and to showcase our offerings. Today, we received quite good response from the crowd for our industrial communications equipment.” 

H.E. Eamon Hickey, Ireland's Ambassador to Malaysia (second from left) and guests.

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MALAYSIA, AN ATTRACTIVE DESTINATION FOR FDI Tan Sri Irwan Serigar Abdullah, Secretary General of the Ministry of Finance recently addressed a group of business leaders and entrepreneurs on whether Malaysia is an attractive destination for FDI. Photos by V. Chanthiran

ith the Malaysian government’s strong emphasis on attracting foreign direct investment (FDI) into the country, Tan Sri Irwan Serigar Abdullah said that the Malaysian Treasury is ready and willing to work with the business community to establish a win-win environment. “I believe in engagement, and in receiving ideas from various parties. Often we at the policy side overlook certain aspects and we welcome feedback. We believe that the people on the ground know better so sessions as such are needed in garnering workable solutions,” he said at a luncheon dialogue organised by the EUMCCI at the Sheraton Imperial Kuala Lumpur recently. More than 50 people from Malaysia’s multinational business community attended the event. Malaysia, he said, is still an attractive option for FDI, and that was why the government had undertaken various initiatives and interventions. “We are currently ranked 22nd in the world as a good destination to do business. We believe in an open economy and hope to be as liberal as we can, which is why we have regular discussions with the business community.” Despite the global economic turmoil, Malaysia achieved 4.2 per cent in growth against the country’s target of 4.5 per cent. “The FDI has been growing 5 per cent over the last several years which is a good indication,” he explained.

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The session also featured a panel of speakers headed by Dato Khodijah Abdullah, Under-Secretary of Treasury, Mr. Tan Hooi Beng, International Tax Leader of Deloitte Malaysia, Mr. Tan Eng Yew, Country GST & Customs Leader of Deloitte Malaysia, and Mr. Ong Guan Eng of KPMG. The panel addressed the issue of Withholding Tax policy.

Withholding Tax Policy On a question posed by Mr. Roberto Benetello, Chief Executive Officer of EUMCCI, on concerns in relation to the definition of technical service fees, Dato Khodijah said that the tax treaty has a definition of what comes under the technical fees. “We are guided by this definition. As far as the domestic law is concerned, we do define in detail because, for example, in the case of e-commerce, we have to be quite detailed. When there is no comprehensive Double Tax Agreements, the domestic law applies.” To a question on losses suffered by companies in their home country during the course of doing business in the Malaysian environment in view of the Witholding Tax policy, Dato Khodijah clarified that the Malaysian government is not inclined to forgo taxing rights because of losses incurred by the treaty partner. She stressed that the government wants to incentivise companies that have a business presence here, hence there are attractive tax exemptions for them. She added that for those not covered under the treaty, renegotiations are encouraged. Dato Khodijah explained, “For those jurisdictions where we do not have treaties, we would like to establish them. It has to be balanced in order to sustain further economic development.” On the subject of GST, Mr. Tan from Deloitte Malaysia said, “Payments to overseas are subject to GST reverse charges according to Malaysian law. The tricky part is that the amount upon which the reverse charge is incurred can be uncertain. While Witholding Tax has no cash implications on a company, however, if a company does not get it right, it might incur penalties.” The Witholding Tax came into effect from January 2017. However, there are many who still do not comprehend its implications. On what happens if a company is non-compliant and what are the implications or

“Payments to overseas are subject to GST reverse charges according to Malaysian law. The tricky part is that the amount upon which the reverse charge is incurred can be uncertain. While Witholding Tax has got no cash implications on a company, however, if a company does not get it right, it might incur penalties.” ~ MR TAN ENG YEW FROM DELOITTE

“I believe in engagement, and in receiving ideas from various parties. Often we at the policy side overlook certain aspects and we welcome feedback. We believe that the people on the ground know better so sessions such as this are needed in garnering workable solutions.” ~ TAN SRI IRWAN SERIGAR ABDULLAH.

MALAYSIA.

“When it comes to individual cases, SMEs do not have the same negotiation power as larger corporate entities. SMEs have to be able to calculate their margins well in order to operate profitably." ~ MR. DANIEL BERNBECK FROM THE MALAYSIA-GERMAN CHAMBER OF COMMERCE AND INDUSTRY.

penalties, Dato Khodijah clarified that the penalty applies according to the laws set. “The penalty is in line with what the law says,” she said. Mr. Daniel Bernbeck from the Malaysia-German Chamber of Commerce and Industry commented that when it comes to individual cases, SMEs do not have the same negotiation power as larger corporate entities. He explained that the SMEs have to be able to calculate their margins well in order to operate profitably. In response to this, Dato Khodijah clarified that when measures are taken to mitigate, there are studies that have been undertaken to support these measures. “We know we have to act faster and be agile to the needs of the industry. We have been given a mandate by the Minister that if there is valid justification, we should look into it on a case-to-case basis to solve the problem.” She assured that the government intends to take a comprehensive look at long-term solutions as well. “We promote SME businesses, thus the rates are lower for SMEs

“As far as possible, we want to incentivise those operating from Malaysia. We are open for discussion – just write to us, email or call us to seek clarification.” ~ DATO KHODIJAH ABDULLAH.

and the eligibility criteria is much more relaxed. We want the SMEs to have a stronger presence in Malaysia.” She advised, “Make sure that the cost you bear in Malaysia only pertains to your operations in Malaysia and do not take on unnecessary costs. As far as possible, we want to incentivise those operating from Malaysia. We are open for discussion – just write to us, email or call us to seek clarification.” 

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MARINE ENERGY, POWERING THE FUTURE

A recent seminar on Aqua Powering the Future, organised by EUMCCI, in partnership with Universiti Teknologi Malaysia and Business France, provided a platform for European and Malaysian SMEs to better understand available marine energy technologies and facilitate business partnerships within the green technology sector. By Fanny Bucheli-Rotter Photos by V. Chanthiran

s Malaysia moves towards a higher income status, it faces the challenge of creating a sustainable environment to support long term growth and development. Since the country is surrounded by water, it makes sense to harness energy from the ocean. Mr. Roberto Benetello, EUMCCI chairman, pointed out in his opening remarks that EUMCCI supports the Government’s effort to establish the country as a green technology hub in ASEAN. “We are not going green, we are going blue this time”, he said in jest. In this spirit, Professor Dr. Durrishah Idrus, Campus Director of UTM expressed her hope that such a seminar could be repeated on a yearly basis. She stated that the “meeting and broadening of minds” will greatly benefit the

university as an academic institution as well as Malaysia as a whole. “We are looking forward to more research and collaboration with the industry,” she said. With the government having made a clear commitment to push this topic ahead via the 11th Malaysia Plan 2015-2020, Dato' Seri Dr. Mohd Azhar Bin Hj Yahaya, Secretary General of the Ministry of Science, Technology & Innovation (MOSTI), who officiated the event, explained that it is essential that efforts toward sustainable energy are doubled. “I’m optimistic,” he said, “that participants will benefit tremendously from this introductory seminar, thereby enabling us to make better use of the sea as a significant source of energy for sustainable development, and make sure the cost is very cheap!”

Mr. Roberto Benetello (third from right) with Dato' Seri Dr. Mohd Azhar Hj Yahaya. (centre), Professor Dr. Durrishah Idrus (third from left) and other officials and conference speakers.

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Prof. Dato' Ir. Dr. Abu Bakar Jaafar of UTM.

Mr. Laurent Albert of DCNS.

Professor Dr. Omar bin Yaakob of UTM, Johor.

Mr. Nicolas Dross of EU Delegation to Malaysia.

Mr. Francisco García Lorenzo of the Marine Renewable Energies Association of Spain.

Dr. Sulaiman O. Olanrewaju of University Malaysia Terengganu.

Concepts and Devices Participants learned about fascinating methods of harvesting sustainable and renewable marine energy. Professor Dr. Omar bin Yaakob of the Marine Technology Centre, UTM, Johor Bahru, explained a highly complex and technical subject in layman’s terms. Existing concepts include Ocean Thermal Energy Conversion (OTEC), gaining energy from the difference in temperature between various depths under water, or the Tidal Range concept, taking advantage of the water’s kinetic energy caused by high and low tide. A third idea is the Ocean or Tidal Stream model, in which an axis current turbine is lowered into the water and functions like a wind turbine, converting its rotary motion into energy. The mere movement of waves on the ocean surface can be transformed into sustainable energy through Wave Energy Converter systems. An Ocean Salinity Gradient concept favours Reverse Electrodialysis (RED) or Pressure Retarded Osmosis (PRO) to produce clean green, or rather blue, energy. Different countries concentrate on different concepts, as not all systems are compatible with local geographical conditions such as tidal flow velocity, sea depth and conflicting area usage in respect to fishing, shipping lanes or protected areas.

Dr. Omar stated that the first power plant to harness tidal energy was built in La Rance, France, as early as the 1960s. Since then, many more projects have been undertaken such as Sihwa Lake in South Korea and Annapolis Royal in Nova Scotia being the most notable. Norway is leading the experimentation phase of salinity, or osmotic energy, while the UK and France are leading the general research efforts in ocean energy. The Ocean Thermal Energy Centre at UTM in Kuala Lumpur and Johor Bahru concentrate exclusively on these research areas.

The Political Aspect Mr. Nicolas Dross, Head of Trade with the EU Delegation to Malaysia, illustrated impending political implications. Opportunities within the EU include fighting climate change and greenhouse emissions, job creation and economic growth as well as reduction of fossil fuel dependency. Challenges include excessive initial capital needs, uncertainties regarding environmental impact and very difficult underwater testing conditions necessary for further technological development. “Malaysia,” he said, “will have to address these same opportunities and challenges.” Similar to the EU, ASEAN too will have to coordinate blue energy efforts by inviting stakeholders such as the private, EUMCCI REVIEW

Feature technology to offshore and near-shore oceanic farming. So called “green biomass” has to grow to 70 per cent in order to feed the world population by mid-21st century, said Dr. Sulaiman. Seaweed can be used for food, fodder, water filtering, preventive medicine, cosmetics, biofuel; the opportunities are endless. The relevant department of UMT has done deployments in Pulau Bidong for testing purposes.

Commercial Perspective

Mr. Roberto Benetello presenting a token of appreciation to Dato' Seri Dr. Mohd Azhar Hj Yahaya. Looking on is Professor Dr. Durrishah Idrus.

governmental, industrial and scientific communities to a round table of sustained communication.

Different Vantage Points Another interesting aspect was presented by Mr. Francisco García Lorenzo of the Marine Renewable Energies Association of Spain, who pointed out that energy is traditionally more expensive on an island as opposed to the mainland, due to the need for transporting oil to offshore power generators. Therefore, islands are optimally situated to be operating on the forefront of marine energy technology since they are surrounded by the relevant energy source. Malaysia and ASEAN with their many islands are ideal locations to deploy new ocean energy technologies. Associate Professor Dr. Sulaiman O. Olanrewaju of University Malaysia Terengganu, spoke on the impact of cultivated seaweed. “The Malaysian government believes in seaweed,” he said, “it might well be the next palm oil.” There is need for a socioeconomic plan to provide marine

Group photo with conference speakers and officials.

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On the core subject of tidal energy and its commercialisation, current and tidal waves are the only predictable sources of energy, said Mr. Laurent Albert of DCNS, a European leader in naval defence and a major player in marine renewable energy. Predictability is the main asset for commercialisation; consumers want energy at their fingertips when they turn the switch on. DCNS is the first company to feed hydro tidal power to the French grid in 2016, despite its need to be harvested, harnessed and stored in the middle of the ocean. “A historical event,” said Mr. Albert. On the other hand, Professor Dato’ Ir Dr. A. Bakar Jaafar of UTM OTEC supports ocean thermal energy as it is most abundant in weaker economical regions such as the Tropics. While temperate regions in the Atlantic Ocean have wind and waves, the Pacific generates heat, which makes OTEC the technology of choice here and could well enable Malaysia to bypass nuclear energy completely. Another interesting aspect of OTEC is the commercialisation potential of its byproducts such as mineralised water or lithium; a factor that can reduce electricity costs to nearly zero. Overall, the general consensus was that ocean energy is one of the few feasible, sustainable and renewable energy sources of the future. However, more public and private funding is needed in order to see marine energy technology take hold of a new environmentally conscious generation of consumers. 

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T EUROPA AWARDS FOR SUSTAINABILITY 2017 Driving sustainability between the EU and the Malaysian business landscape.

he EUMCCI is organising the EUROPA Awards for Sustainability 2017 aimed at identifying, qualifying and promoting business excellence in Malaysia from companies that have demonstrated extraordinary performance in the area of sustainability. This is in line with creating value and bringing benefits to the Malaysian society and economy in tandem with the EU’s sustainable development values. The event, which is envisioned as a yearly affair, will culminate with a gala dinner and an award ceremony, accompanied by entertainment. The event is scheduled for 24 November 2017 at the Grand Ballroom, Connexion @Nexus Bangsar South, Kuala Lumpur. Set to be a high profile event with a turnout of 1,000 distinguished guests, EUROPA Awards has been designed to reinforce sustainability in the context of social responsibility. EUMCCI is partnering several reputable organisations in Malaysia to add credibility and authoritative standing to the initiative. It has the patronage of the EU Delegation to Malaysia in the person of H.E. Maria Castillo Fernandez, EU Ambassador and Head of the EU Delegation to Malaysia. The EU Delegation in Malaysia will also work with participants, sponsors and partners to strengthen the image of the EU as a strategic long-term partner to Malaysia in business and sustainability. KPMG Malaysia will play a key role in devising award categories and winning criteria as well as shortlisting winning entries and nominating the winners. EUMCCI will also engage with the EU Bilateral Chambers, Embassies and Trade Counsellors to promote the awards and ensure that each EU member is equally represented. MATRADE’s support and assistance will also be sought to identify Malaysian companies championing sustainability values, and to promote participation of local companies in this award. The EUROPA Awards will feature seven categories, namely: • Best Sustainability Reporting • Best Innovation in Sustainability • Best Social Impact (awarding large companies & SMEs) • Best Environment Impact (awarding large companies & SMEs) • Best Sustainability Leader (awarding individuals) The screening parameters include sustainability reporting practices, the adoption of innovation, product and services that contribute to the community and track record on the advocacy of sustainability-related initiatives. EUMCCI has provided an online platform for data collection and submission of entries through www. europawardsmalaysia.eu. Companies are allowed to participate in a maximum of two award categories per company. Nominations are open from 1st July to 3rd November 2017.  EUMCCI REVIEW

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WHY MALAYSIA IS CRITICAL FOR SINGAPORE’S CONTINUED SUCCESS Business leaders came together to discuss the promising future of cross-border collaboration between Malaysia and Singapore and how it contributes to the sustained success of the island nation.

ver the last few decades, Singapore’s economy has skyrocketed, leading to the island nation being ranked the fourth most prosperous nation by Gross Domestic Product (GDP) per capita. Inevitably, experts foresee a challenge in longterm sustainability. The strategic location of Malaysia’s southern growth corridor, Iskandar Malaysia, aims to positively impact the long-term sustainability of Singapore’s economic competitiveness. On 13 April 2017, five distinguished panelists came together to discuss Malaysia’s critical role in Singapore’s continued success. The event was sponsored by GBS. The panelists were Mr. Azlan Ramli, Senior Vice President (Investor Solutions), i2M Ventures Sdn Bhd , Mr. Cheah Ping Yean, Senior Vice President, Investment Incentives, Iskandar Regional Development Authority (IRDA),Mr. Chris Burton, Managing Director, Corporate & Private Clients, Vistra Singapore and Mr. Simon Song, Managing Director, Robert Bosch Malaysia. The panelists shared initiatives for economic integration

Mr Roberto Benetello with the panel of speakers.

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between both countries. Mr. Cheah noted that since 2003, the government to government relations has improved tremendously, and several issues have been resolved. “We have resolved issues pertaining to the railway line; and also signed a bilateral agreement for the high speed railway (HSR). These are two key events that will set the pace for improved relations,” he said. He noted that IRDA is looking at more enriching trade investment and commercial relationships with Singapore. “This will indirectly help establish a more integrated ASEAN economy. The movement of people and services can be enhanced through infrastructure, like HSR, to boost overall economic performance of both countries,” he added. Mr. Azlan noted that due to geographic proximity, culture and trade, it is expected that further engagement programmes will be undertaken both directly and indirectly – either government-sponsored or induced by the private sector. Closer collaboration in terms of sectors and logistics is anticipated. Responding to EUMCCI CEO Mr. Roberto Benetello's

question on whether cross-border collaboration will trigger any political implications, Mr. Song explained that Singapore and Iskandar bore resemblance to Hong Kong and Shenzhen in China, whereby from being just a fishing village, Shenzhen has blossomed into an economic hub today as a result of leveraging on its close proximity to Hong Kong. “By looking at Shenzhen’s development, it gives me a good idea of how this kind of advantage can leverage on Hong Kong and its development. “Hong Kong and Singapore have lots of similarities as a financial services hub in their regions, among others. However, they need some sectors to move to bigger land spaces,” explained Mr. Song, indicating that Iskandar is able to fill the gap for Singapore. He expressed that there are very promising expectations for the region. Mr. Roberto noted that cross-border collaboration is interesting when there is opportunity and that the gap is filled when cross-border collaboration happens between two areas. In response to this, Mr. Song noted that as long as people see opportunities, there will be growth. Mr. Burton explained that where Singapore is concerned, the population is increasingly ageing. “In order for the country to continue its strong economic growth, it has to increase the productivity of its workforce,” he explained. IRDA is actively pushing for the mass rapid transit (MRT) services to take place fast between Malaysia and Singapore to drive economic integration between both countries. 

THE PANEL OF SPEAKERS

Mr. Cheah Ping Yean, Senior Vice President, Investment Incentives, Iskandar Regional Development Authority (IRDA).

Mr. Azlan Ramli, Senior Vice President (Investor Solutions), i2M Ventures Sdn Bhd.

Mr. Chris Burton, Managing Director, Corporate & Private Clients, Vistra Singapore.

Mr. Simon Song, Managing Director, Robert Bosch Malaysia.

QUESTIONS FROM THE FLOOR A member of the floor raised the issue of safety in Iskandar Malaysia, where crime rates is a cause for concern. In response to this, Mr. Azlan said “There are three layers of security in Iskandar which is the Royal Malaysian Police, the private police escort services and private security at each residential precinct.” Mr. Cheah added, “Efforts are ongoing to address crime. We are monitoring the situation. We found that some areas are more prone to crime than others. Nevertheless, in IRDA, we have propagated and secured police beat bases in certain housing areas that used to be crime hotspots.” He explained that crime in these specific areas have reduced and that IRDA is working closely with the police to address the issues.

Mr Sheriza Zakaria of Big Dataworks Sdn. Bhd.

Mr. Marco Winter of Malaysian Dutch Business Council.

On a question on the management of congestion at the causeway for travelers and workers crossing the border daily, Mr. Azlan explained that the land transport authorities of both countries are working on systems to address this and that the HSR is a major step in resolving this issue.

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HARMONISING FOOD SAFETY STANDARDS ACROSS THE EU & ASEAN With the food and beverage industry in Malaysia growing rapidly, safe production and harmonising testing and reporting standards are of utmost importance in order to make the country an attractive trading partner for European SMEs. By Fanny Bucheli-Rotter Photos by V. Chanthiran

ith a focus on harmonising food safety standards across the EU and ASEAN, the EUMCCI recently partnered with over 20 chambers and embassies to host the 3rd annual EU-ASEAN Forum on Food Safety. Mr. Roberto Benetello, Chief Executive Officer of EUMCCI in his opening remarks, stated the importance of not only food safety, but its standardisation in the region. He also emphasised the importance of mutual recognition and collaboration between ASEAN and the EU on food safety standards. He also reiterated the EUMCCI’s continuous efforts to support and promote business opportunities between Europe and Malaysia. The forum was officiated by Dato’ Seri Dr. Hilmi bin Haji Yahaya, Deputy Minister of Health Malaysia while the Ambassadors of the EU, Italy, the Netherlands and Hungary were in attendance. Her Excellency Maria Castillo Fernandez, the Ambassador and Head of European Union Delegation to Malaysia, touched on Europe’s long history of regulatory governance of the food industry. She further elaborated on future benefits on knowledge and expertise exchange in order to further dialogue between the two trading blocs.

L-R: H.E. Mario Sammartino, Ambassador of Italy to Malaysia, Mr. Roberto Benetello, Ms. Noraini Dato’ Mohd Othman, Mr. Daniel Pans, H.E. Maria Castillo Fernandez, Dato’ Seri Dr. Hilmi bin Haji Yahaya, H.E. Karin Mössenlechner, Ambassador of Netherlands to Malaysia and H.E. Attila Kali, Ambassador of Hungary to Malaysia.

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Trade can be more effective and progress can be made thanks to fruitful forums such as this one, she stated. Her Excellency illustrated her point by mentioning the ‘from the farm to the fork’ concept that is a trend today, but which necessitated even more stringent food safety standards and responsibilities. “A forum such as this brings important progress; one example being the new ASEAN guidelines on food control requirements,” she said. Dato’ Seri Dr. Hilmi bin Haji Yahaya applauded the close collaboration of policy makers in ASEAN towards strengthened food safety standards and their harmonisation. He also mentioned the contribution of programs such as the EU-ASEAN Regional Integration Support System and congratulated the EU on their role as a major development partner of ASEAN and their crucial support. He expressed hope that the forum would advance and facilitate better understanding of food safety standards and policies in the region.

THE EU EXPERIENCE An impressive list of experts in the field of food safety and food standards were on the podium to illuminate the issue at hand from different vantage points. Dr. Patrick Deboyser,

Left: Some of the speakers and attendees at the forum. Below: Mr. Paul Mandl, responds to questions from the floor.

Minister Counsellor for the Delegation of the European Union to Thailand shared his expertise by stating that food safety and hygiene goes much further than the mere victuals on our dinner plates. In order to achieve better standards for food safety and health, we need to be concerned about aspects such as plant and animal health, pathogens, microbes, environmental health, waste management, food packaging, transport and much more. “A holistic approach has to include pollinating procedures which necessitates healthy bee populations, fruit propagating materials, or seeds and seedlings, into which the highly controversial topic of GMOs falls too.” The EU has longstanding experience with food safety issues on a wide-reaching scale given the fact that the European trade bloc is by far the biggest importer of food and agricultural products in the world. Sixty-five per cent of fish and fishery product consumption in the EU is imported from more than 50 countries from around the world. In fact, the EU imports more agricultural goods from developing countries than the US, Canada, Australia, Japan and New Zealand together. This makes the EU not only ASEAN’s most valuable, but also strongest partner in food safety. According to Dr. Deboyser, the EU has established the necessary rules and regulations. They are implemented and evolve in accordance with new technologies and necessities in partner countries within ASEAN. Today, he stated, the biggest job remains the enforcement of said set of rules and regulations. Other experts, especially those the biosecurity and bio lab community confirm that, while standards are harmonised within ASEAN, methods are not standardised in labs. As biosecurity is not always a bilateral effort, pests travelling with food imports and exports can cause big problems. In other words, the aim is not only to provide traceable food safety between the EU and ASEAN, but also within ASEAN member states – an effort in which ASEAN and the EU must be partners on equal terms.

MARKET INTEGRATION Another aspect that shared the limelight of the forum was EU’s support to ASEAN in terms of market integration within the food sector. As Mr. Paul Mandl, Team Leader of ASEAN Regional Integration Support from the EU (ARISE) programme explained, food regulations lag behind

non-consumable goods like pharma and cosmetics. “This is not only regrettable, but quite disconcerting, as one would expect comestibles to get top consideration over say, makeup or shower gel,” he said. Mr. Mandl further pointed to the issue of mutual trust which is important in scenarios of interdependent, global trade. Food safety typically involves the cooperation of government regulators, multinational corporations, SMEs and end consumers. As food safety policies and regulations have been adopted in the past five years, both the ASEAN and EU regulating bodies must enhance their efforts to report and communicate their successes within the food industry. The private sector and regulators need to work closer together in order to achieve the all important transparency and communication crucial to trust building and benevolence toward rule implementation and enforcement.

THE REGULATORY FRAMEWORK Ms. Sylvia Laksmi Sardy, Senior Officer – Standards and Conformance, ASEAN Secretariat, was in agreement with Mr. Mandl on the issue of mutual trust and the necessity of regulatory framework. The formulation of the ASEAN Food Safety Policy, adopted in 2015, has provided common principles for future initiatives, which have since been implemented by ASEAN member states. As a consequence, the ASEAN Food Safety Regulatory Framework (AFSRF) has been adopted by South East Asian leaders in 2016, EUMCCI REVIEW

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Dr. Patrick Deboyser, Minister Counsellor for the Delegation of the European Union to Thailand.

Mr. Paul Mandl, Team Leader of ASEAN Regional Integration Support from the EU (ARISE) programme.

providing the trading bloc with the necessary means to pursue a coherent approach to link the initiatives of ASEAN on risk assessment, a rapid alert system, reference testing labs and food control systems in the long run. The ASEAN Food Safety Regulatory Framework is, as Ms. Sardy pointed out, not a legally binding document. “It is more of an outline,” she said. The ASEAN Food Safety Coordination Committee invites stakeholders to engage in deliberation and work through protocols, towards the implementation of legally binding documents. In order to achieve greater integration in the food sector within ASEAN, the region needs food safety policies to complement the AFSRF. The finalisation of the mutual recognition arrangement for prepared foodstuff will provide the first available, legally binding instrument designed to significantly reduce trade barriers, while ensuring health protection for the end consumer. Food safety however, is even more relevant with a free flow of comestible goods within ASEAN. The cargo and trading route between Singapore, Malaysia and Thailand being the most clearly manageable, a pilot project of reduced trade barriers and increased free food forwarding has been launched in order to test and ultimately boost market integration within the region.

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Ms. Noraini Dato’ Mohd Othman, Senior Director Food Safety & Quality, Ministry of Health, Malaysia.

IMPLEMENTATION AND ENFORCEMENT Such initiatives on harmonisation will lead to the achievement of market integration when the voluntary guidelines progress into obligation. Both Mr. Mandl and Ms. Sardy agree that, for now the gaps in infrastructure and capacity in member states provide a challenge in harmonisation and mutual recognition of regulatory actions. While implementation and enforcement are important, appropriate tools need to be at every stakeholder’s disposal. The ASEAN Trade Repository, for instance, has published a comprehensive database of harmonised standards, which is readily available online. ASSIST, another such tool, is an online platform on which a company can make a complaint about a member state failing to follow the relevant ASEAN regulations.

THE MALAYSIAN POINT OF VIEW In a more local perspective, Ms. Noraini Dato’ Mohd Othman, Senior Director Food Safety & Quality, Ministry of Health, Malaysia, presented relevant aspects featured in the ASEAN Economic Community (AEC) Blueprint 2025. The AEC 2025 has been developed to facilitate a highly integrated and cohesive economy within ASEAN, similar to the European Economic Community (EEC) in Europe.

Ms. Sylvia Laksmi Sardy, Senior Officer – Standards and Conformance, ASEAN Secretariat.

Ms. Suzanne Mooney, Founder and Chairwoman of The Lost Food Project.

The document aims at promoting principles of good governance, transparency, and responsive regulatory regimes through active engagement with the private sector, community-based organisations, and other stakeholders of ASEAN; a prospect that will prove highly beneficial to enhanced food safety harmonisation in the region. Measures relating to tariff elimination and trade facilitation will contribute to more free flow of goods and reduced border and behind-the-border regulatory barriers in order to achieve competitive and efficient movement of goods within the region. The pilot project between Singapore, Malaysia and Thailand, as introduced by Ms. Sardy, is an example on which the AEC is building its expertise. For Malaysia, issues of excessive heat affecting food processing as well as transportation and storage, pose additional challenges. Also, the Ministry of Health and the Ministry of Agriculture and Agro-based Industry are giving special consideration to the issue of GMO’s, regulations and harmonisation. In addition, the question of hala production, regulation and certification are an important aspect of food safety and its harmonisation, since both Malaysia and Indonesia are concerned trade partners within ASEAN. In order to give this topic the attention it deserves, the entire afternoon of the forum’s day two was dedicated to the halal perspective. Ms. Ahlami Abdullah Akhili of the Department of Islamic Development Malaysia spoke on behalf of the Director of the Halal Hub Division and Ms. Norhariti Jalil, Vice President at the Halal Industry Development Corporation elaborated on initiatives executed under the Halal Industry Master Plan. This important strategy aims at strengthening integrity and capabilities across the Halal food industry sector.

TRANSPARENCY AND COMMUNICATION Panel dialogue and Q & A sessions brought to light many aspects of this highly intricate topic, such as details of the principles of the ASEAN Food Safety Policy or various elements of effective communication relevant to food safety measures. Members of the audience were particularly interested in learning more about possible involvement of consumer groups at the stage of policy making and the private sector’s potential participation in regard to

Professor Jørgen Schlundt, Nanyang Technological University, Singapore.

Mr. Roberto Benetello presenting a token of appreciation to Dato’ Seri Dr. Hilmi bin Haji Yahaya.

blueprint development. The need for transparency and open communication was made very apparent by interest groups in attendance.

THE PRIVATE SECTOR’S EFFORTS Besides experts from the EU and ASEAN regulatory contingent, the crowd also witnessed highly informative and insightful presentations from the private sector. DPO’s Daniel Pans spoke on the importance of waste management to food safety and hygiene, and how a food regulatory framework can contribute to the considerable reduction of food waste. On a similar topic, Ms. Suzanne Mooney, Founder and Chairwoman of The Lost Food Project, elaborated on ‘The Lost Food Project’, an initiative aiming at rescuing surplus food from being wasted, and redistributing it to those in need. Safety and hygiene standards are a top priority for entities intending to reallocate comestibles as the tropical temperatures and local infrastructure pose critical challenges. Professor Jørgen Schlundt, of Nanyang Technological University, Singapore, also expertly led professionals and stakeholders of the ASEAN food industry sector through the third installment of the EU-ASEAN Forum on Food Safety. Professor Schlundt has conducted vital work in the areas of risk assessment related to food safety. His knowledge of the issues at stake and his uplifting personality lent significant support to the event.  EUMCCI REVIEW

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COUNTRY FOCUS

CZECH REPUBLIC

he Czech Republic has a long democratic tradition, a highly-developed industrial economy and a rich cultural heritage. Having emerged from 40 years of Communist rule in 1990, the Czech Republic was the first former Eastern Bloc state to acquire the status of a developed economy. The nation has a 10.5 million population with its capital and largest city being Prague. A member of the EU since 2004, the country’s historical territories include Bohemia, Moravia and Czech Silesia. This nation gave the world some of the most recognisable brands such as Tatra and Skoda (automotive), Aero (aviation), Bata (footware) or Avast (internet security applications) and contributed to the international usage of words such as robot, tolar (dollar) and pistol.

RAPID GROWTH OF THE SERVICES INDUSTRY Although the Czech Republic is largely a manufacturingbased economy due to its long industrial tradition, the services sector is rapidly growing, and today, makes up 60 per cent of the nation’s GDP. “This is the result of the talent pool in ICT and R&D which has been created by the long-standing tradition and expertise in the mechanical engineering, precision engineering, aviation industry, electronics, chemical industry and other technical areas,” explains H. E. Rudolf Hykl, the Czech Republic’s ambassador to Malaysia. “The quality and availability of technical education is a part of this ecosystem and it plays a role in supporting growth of technology based service industries,” he adds. The development of the country’s state-of-the-art digital infrastructure in 1990s has given rise to various successful business ventures such as Avast, Trustport and Kiwi.com, among others. This has resulted in the inflow of foreign investments which are seeking to capitalise on the workforce, robust system of investment incentives and good infrastructure. Furthermore, the country’s unique geographical location makes it an ideal hub of European and global operations for many multinational businesses. The symbiosis between technical education and foreign hightech investment is evident, e.g. in Brno, the Czech Republic’s

CZECH REPUBLIC AT A GLANCE Capital: Prague Official language: Czech Currency: Czech Koruna Government: Parliamentary Republic President: Milos Zeman Prime Minister: Bohuslav Sobotka Legislature: Parliament

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H. E. Rudolf Hykl

second largest city, where companies such as Honeywell and Red Hat have a large presence.

TRADE WITH ASIA & MALAYSIA Czech Republic’s trade with Asia stands at 13 per cent, with Malaysia being an important Asian trading partner. The mutual trade turnover of Malaysia and the Czech Republic in 2016 was USD1.16 billion. Czech exports to Malaysia was USD186.7 million, while imports from Malaysia was USD975.8 million. “Our trade volume with Malaysia remains more or less the same over the last two years. Before that, it was growing by 2-10 per cent annually,” says H.E. Hykl. Trade with Malaysia is mainly dominated by technological components which include computer components, electronics and semiconductors, among others. Imports from Malaysia are mainly electronic products, machines for automated data processing, telephone sets, diodes and natural rubber. Czech Republic’s exports to Malaysia in 2016 are mainly electronic integrated circuits, automated controlling instruments, chemical compounds, and tires, among others. “The range of our trade exchange is much wider, comprising items such as transport equipment, food, commodities, chemicals and other products. We also observe in our trade with Malaysia the growth of Czech advanced technologies with high added value. They include both physical and cyber security applications, electronics, and optics, among others,” H.E. Hykl shares. The Czech Republic’s embassy actively supports the growth and diversification of the country’s trade. Business missions have been initiated and organised in the fields of ICT, biotechnology and biomedicine, medical devices, green technologies, food industries, traditional defence and security industries. “We put a lot of emphasis on supporting research and development cooperation with a mission of rectors from Czech universities to Malaysia visiting their partners from Penang all the way to Johor.” “In addition to the business mission, we try to develop collaboration in the educational and research area which I consider one of the best investments for any bilateral relationship. I also try to enhance the people to people understanding between the Czech Republic and Malaysia through several large scale public diplomacy projects such as exhibitions on Czech castles and glass and Czech film festival in Malaysia.”

Some Famous Czechs JOSEF CAPEK invented the word robot which was introduced into literature by his brother, Karel Capek. JOSEPH LUDWIG FRANZ RESSEL designed one of the first working ship's propellers. Among his other inventions belong pneumatic post and ball and cylinder bearings. He was granted numerous patents during his life. OTTO WICHTERLE AND DRAHOSLAV LIM, are Czech chemists responsible for the invention of the modern contact lenses and silon (synthetic fibre). CHRISTIAN MAYER, an astronomer and teacher, noted for pioneering the study of binary stars. In 1777-78 he compiled a catalogue of 80 double stars, which he published in 1781. STANISLAV BREBERA, a chemist who developed the plastic explosive known as Semtex, which was put on the market in 1964. In the field of literature, novelist and short story writer FRANZ KAFKA, is widely regarded as one of the major figures of 20th-century literature. His best known works include The Metamorphosis, The Trial, and The Castle. In classical music, BEDRICH SMETANA, composer of operas and symphonic poems, is widely regarded as the father of Czech music while LEOS JANACEK was an exponent of musical nationalism of the 20th century. ANTONIN DVORAK and BOHUSLAV MARTINU also achieved worldwide recognition. In sports, MARTINA NAVRATILOVA is considered the greatest female tennis player for the years 1965 through 2005. She won 18 Grand Slam singles titles, 31 major women's doubles titles (an all-time record), and 10 major mixed doubles titles. IVAN LENDL, a former world No. 1 professional tennis player, was one of the game's most dominant players in the 1980. He won 8 Grand Slam singles titles. These two inspired the whole new generation of Czech tennis players such as Karolina Pliskova, Tomas Berdych and Petra Kvitova, among others. Czech football players such as PETR CECH or PAVEL NEDVED are wellknown all over the world.

Czech Nobel Prize Winners

• JAROSLAV HEYROVSKY, known as the father of the electroanalytical method, won the Nobel Prize for Chemistry in 1959 for his discovery and development of the polarographic methods of analysis. • JAROSLAV SEIFERT, a writer, poet and journalist won the Nobel Prize in Literature in 1984.

INVESTMENT OPPORTUNITIES FOR MALAYSIANS The Czech Republic offers opportunities for a closer cooperation in areas such as power engineering and the use of renewable energy sources, the development of transport infrastructure, water and waste management projects, production of medical equipment, supplies of food processing technologies, as well as biotechnology and biomedicine, nanotechnology, manufacture of new materials, information and communication technologies and aircraft industry. “There are not many manufacturing sectors which would not be represented in the Czech Republic. We make cars, airplanes, machine tools, transport equipment, power plants, medical equipment, food processing lines, firearms as well as sophisticated radar systems. We also provide engineering services, public transport control systems, water management projects, including research and development in technology intensive areas. All these can be of direct relevance to the Malaysian business partners,” stresses H.E. Hykl. Also, Malaysian businesses seeking technical and research expertise in nanotechnology, especially in nanofabrics, can find great opportunities and partners in the Czech Republic. “Our strong tradition of renewable energy, especially hydropower, can help Malaysian businesses expand in this dynamic field,” he adds.

There are 20 Czech companies operating in Malaysia in the form of a local representative, a local office or even a joint-venture. “They are supplying products in such varied areas – machine tools, food & beverage, firearms, radar technology, water treatment, outdoor equipment, ruggedized communication systems and many others,” he notes. Czech companies have also been involved in providing solutions for the construction of the new MRT and LRT control centres in Malaysia, a smart electric grid for Berjaya Times Square, among others.  EUMCCI REVIEW

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EUMCCI PRESENTS

PALM OIL SUSTAINABILITY

EU-MALAYSIA INTERNATIONAL DISCOURSE In conjunction with IGEM 2017

wednesday 11th october, 2017 | 9Am - 1pm | Kuala Lumpur convention Centre Widely used as a basic ingredient for food products from margarine to cream cheese, from cosmetic items to bakery products, palm oil is, to this day, one of the most utilised edible oils in the world. Palm oil is a controversial topic due to its implications on society, environment and economic growth of developing countries. Malaysia is committed to finding ways to ensure palm oil’s sustainability. More than ever before, it is important to guarantee sustainability at every level of the supply chain, for large and small producers. Hence the need for a balanced dialogue aimed at promoting best practices and uncovering critical success factors, such as: • Better understanding of the different points of views and perceptions of the issues of sustainable palm oil (in the countries where palm oil is produced and in the markets where it is consumed). • Sharing success stories that have led to better sustainability in the palm oil industry (scientific advancement or best practices based on technological inputs by companies, initiatives by NGOs and others).

what to expect? Special address by

Mr. Roberto Benetello, CEO, EUMCCI H.E. Maria Castillo Fernandez, Ambassador & Head of EU Delegation to Malaysia

Guest of Honour

YB Datuk Seri Mah Siew Keong Minister of Plantation Industries and Commodities (MPIC) - *TBC

PANEL 1

Better understanding of the diﬀerent points of views and perceptions of the palm oil in foreign market Moderator: Mr. Thomas Brandt, General Manager of Malaysian-German Chamber of Commerce and Industry (MGCC)

PANEL 2

Examples of good practices leading to a more sustainable palm oil supply and demand chain Moderator: Datuk M. Nagarajan, Chairman of the Malaysian Palm Oil Certiﬁcation Council (MPOCC)

Meet our International Speakers

Dr. Alain Rival

Resident Regional Director for Southeast Asia French Agricultural Research Centre for International Development (CIRAD), Jakarta, Indonesia

Mr. Thomas Brandt General Manager of Malaysian-German Chamber of Commerce and Industry (MGCC)

Dr. Helena Varkkey Senior Lecturer, Department of International and Strategic Studies, University of Malaya

Mr. Fitrian Ardiansyah

Country Director of IDH Indonesia

Ms. Khor Yu Leng

Head of Research for South East Asia, LMC International Ltd.

Dr. Simon Lord

Group Chief Sustainability Oﬃcer of Sime Darby

Ms. Denise Westerhout

Lead for Sustainable Markets Programme, Malaysia, WWF Malaysia

and many more speakers... Oﬃcial event by IGEM, with mandate by KeTTHA

conference fees EUMCCI Members Price: RM 400.00

Non-members Price: RM 500.00

Networking lunch and coﬀee breaks are included

Mr. James de Caluwe

Managing Director of UniOleon Sdn Bhd and President of Malaysia Belgium Luxembourg Business Council (MBLBC)

Chamber News

IMPLICATIONS OF THE FOREIGN EXCHANGE ADMINISTRATION RULES On 24 January 2017, the EU Malaysia Chamber of Commerce and Industry (EUMCCI) organised a dialogue session focusing on the Implications of the Foreign Exchange Administration Rules. The high-level session, attended by EUMCCI members and bilaterals, provided a comprehensive perspective on Bank Negaraâ&#x20AC;&#x2122;s (Malaysiaâ&#x20AC;&#x2122;s Central Bank) new ruling on the Foreign Exchange Administration Rules which requires exporters to convert 75 per cent of their proceeds into Malaysian ringgit. The session was facilitated by Mr. Adnan Zaylani, the Assistant Governor of Bank Negara. Industry insights and experiences were related by Mr. James de Caluwe, Managing Director of Oleon Asia Pacific Sdn Bhd, Mr. Bo Pedersen, Chief Financial Officer of Cong Podan Rubber (M) Sdn Bhd and H.E. Maria Castillo Fernandez, Ambassador of the EU Delegation to Malaysia. The session was beneficial to the participants in that it provided a clear idea

of the implications of the foreign exchange administration rules. Among the topics discussed were the measures to balance demand of foreign currency in the FX market, supported with incentives and flexibilities. The measures include exporters retaining up to 25 per cent of export proceeds in foreign currency for payment of import and loans; conversion of ringgit up to 6 months of import and loan obligations; and all payments among residents to be made in ringgit. Incentives under this measure include special deposit

rates of 3.25 per cent per annum converted export proceeds. The implementation flexibilities include immediate reconversion based on the same conversion rate on the spot or on a forward basis entered on the same day. Also discussed was the policy on investment in foreign current assets, for which key principles include equal treatment for investment in foreign currency assets onshore and offshore; and equal treatment on resident exporter and non-exporters with domestic ringgit borrowing.

AEROSPACE COMMITTEE VISITS AIRFOIL SERVICES AND RUAG AVIATION MALAYSIA The EUMCCI Aerospace Committee held two recent committee meetings at Airfoil Services Sdn. Bhd. in March 2017 and RUAG Aviation Malaysia Sdn. Bhd. in July 2017. At the meetings, top aerospace industry players discussed issues such as how to gain access to government procurement opportunities, adopting European best practices in quality leadership and

encouraging adoption of European practices in training and education. The committee also discussed the challenges in registering foreign companies in Malaysia and the need to create a friendlier climate to attract more foreign investment. One of the proposed suggestions was to produce a handbook on the best practices in the aerospace industry which can be

a reference point for new investors or companies. During the site visits, Mr. Derrick Siebert, Chief Executive Officer and Managing Director of Airfoil Services Sdn. Bhd, and Mr. Tong Koon Chye, Operations and Logistics Manager, RUAG Aviation Malaysia Sdn. Bhd, presented their respective company's operations and services to the committee members.

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Chamber News

SITE VISIT TO MACC HQ IN PUTRAJAYA Thirty EUMCCI members were taken on a tour of the MACC headquarters in Putrajaya in May. The entourage was given a private tour of the Video Interviewing Room, Identification Parade Room, MACC Gallery where case studies are documented. They were also taken through a short recording stint at MACCfm studio, where live streaming was done. MACC Chief Commissioner, Datuk Dzulkifli Ahmad spoke about the continuing mission to eradicate corruption, abuse of power and malpractice in Malaysia and to strengthen integrity and enhance expertise through human resources development programmes to create a corrupt-free Malaysian society. He stressed that “there is an urgent need for Malaysian companies and businesses to put in place preventive measures that reinforce ethical leadership, good governance, transparency, accountability and respect for the rule of law in their traditional procedures”. In keeping with the integrity pledge,

EUMCCI unveiled a proposal for a new Committee on Business Integrity that will seek to invite relevant policy makers and the business committee. This committee pledges to promote

business integrity of companies in Malaysia, assist and provide tools to companies to improve their business integrity practices and drive for change in policies and procedures to counter corruption.

EU-MALAYSIA LEVERAGES FTA TO BOOST ECONOMIC OPPORTUNITIES In view of the talks on resuming EU-Malaysia FTA, EUMCCI spearheaded a new committee on trade facilitation. To kick off this initiative, a panel discussion was organised on June 13 to raise awareness on the benefits of the FTA and on the issues and provisions it should include, especially non-tariff barriers and measures. The panellists were Puan Wan Suraya

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Wan Mohd Radzi, Deputy Secretary General, Ministry of International Trade & Industry, Mr. Nicolas Dross, Counsellor, Head of Section, Trade & Economic Relations and Dato’ Dr. Steven Wong, Deputy CEO, Institute of Strategic & International Studies Malaysia. The moderator was Tan Sri Dr. Rebecca Sta Maria, Chairperson, EUMCCI.

Mr. Dross shared with the audience the history of FTA, issues that will be discussed in the EU-Malaysia FTA and how the EU-Malaysia FTA will involve the business community and civil society. Puan Wan Suraya advised that bilateral links with EU is important and the link grows stronger despite the lapse in negotiations. MITI is seriously looking into resuming the negotiations as indicates by the MITI Minister earlier this year. Dato’ Dr. Steven Wong added that with the FTA, Malaysia hopes to see the development of SMEs which comprise 90% entrepreneurs. Tan Sri Dr. Rebecca Sta Maria reiterated that continuous series of discussions will bring together more engagement with the private sector. Since negotiations are back on the tables, all parties were confident that the process would be successful.

IMPACT OF NEW EUROPEAN DATA PROTECTION LAW ON BUSINESS & EU SUBSIDIARIES IN ASEAN More than 30 EUMCCI members gathered the Sheraton Imperial hotel in early May to attend a half day talk on the Impact of the New European Data Protection Law on Business & EU Subsidiaries in ASEAN. Led by Mr. Ken Chia, Principal of law firm Baker & McKenzie, and Mr. Kevin Shepherdson, CEO of Straits Interactive, a

specialist Governance, Risk Management & Compliance (GRC) and data protection and privacy firm, the talk helped attendees make sense of the compliance regulations, impending new EU General Data Protection Regulation (GDPR) laws and threats in cyberspace. With the new regulation coming into effect on 25th May 2018, companies are

taking steps to ensure plans are in place to comply with the regulations. Many questions were asked during the session as members were keen to understand how these laws would also cut across their immediate regional jurisdictions that included ASEAN and the rest of Asia. Non-compliant to the regulation could potentially see organisations being imposed with fines (€10-20 million or 2-4% of the entity's global gross revenue for violations).

Corporate Partner News

MDEC DRIVES MALAYSIA’S DIGITAL LANDSCAPE As the world embraces a digital economy, Malaysia is also on par with this focus through the Malaysia Digital Economy Corporation (MDEC). The 11th Malaysia Plan is targeting to achieve an 18 per cent contribution from the digital economy by 2020. With this in mind, Dato’ Yasmin Mahmood, Chief Executive Office of MDEC reiterated its commitment to further boost the digital economy which is now contributing 17.8 per cent to the country’s GDP. MDEC set in motion several initiatives in 2016 which revolves around key objectives. They are: • Contributing to the country’s digital economic by attracting foreign direct investments (FDIs) and domestic direct investments (DDIs); • Building local technology champions by creating a digital ecosystem that promotes innovation and creativity • Catalysing the digital innovation ecosystem. This resulted in the blueprint of Malaysia’s Digital Hub, an initiative that supports tech and digital co-working spaces, their start-ups and communities, supported by the government with greater connectivity to ASEAN and the global digital ecosystem, and • Propagating Digital Inclusivity. One of the five catalysts of the Digital Economy is the development of local talent pool and the #mydigitalmaker initiative aimed at creating a nation of digital makers. This initiative is in partnership with Ministry of Education with the support of private sectors and academia. It set to expose Malaysian youths to the creative and innovative aspects of digital technology. #mydigitalmaker will be carried out by integrating Computational Thinking and computer science into the formal school curriculum, as well as getting industry and universities to help nurture and groom talented young digital makers.

In March, Prime Minister Dato’ Sri Mohd Najib Tun Razak launched the world’s first Digital Free Trade Zone (DFTZ) in Kuala Lumpur, to provide physical and virtual zones to enable SMEs, start-ups and scale-ups to capitalise on the rapid growth of the internet economy as well as cross border e-commerce activities. Alibaba, as the strategic partner to the DFTZ, has invested heavily into making Malaysia an e-commerce and logistic hub in the region. An e-fulfillment hub located in KL Aeropolis (the former LCCT) will act as a centralised custom clearing area to handle high volumes of goods from the expected larger number of transactions in the region. At the same time, this is expected to shorten the processing time for fulfilment of orders. But it is not just physical changes that DFTZ will bring to Malaysia, it is also about readying the platform and preparing Malaysian SMEs to think out of their local markets and go global. “Malaysia is a trading nation, and as trade goes into e-commerce, if we don’t make sure that we’re on board, then we’ll be marginalised. We have a National E-Commerce Strategy Roadmap that aims to double the growth of e-commerce; it covers SME adoption, e-procurement, lifting non-tariff barriers, etc. It’s multidisciplinary, covering both the private sector plus public sector,” Dato’ Yasmin said. Apart from improving their efficiencies, the other big incentive for retailers to bring their business online is that they would be able to access new markets as the world continues to be increasingly connected online. “The two goals of the DFTZ are to increase SME cross-border trade, and to position Malaysia as a regional hub for e-commerce logistics,” she added.

Dato’ Yasmin Mahmood, Chief Executive Officer of MDEC.

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Corporate Partner News Corporate Partner News

DB SCHENKER IN MALAYSIA EXPANDS ITS CONTRACT LOGISTICS FOOTPRINT IN TANJUNG PELEPAS PORT, SOUTHERN JOHOR DB Schenker in Malaysia is planning its fifth facility named Johor Logistics Centre ( JLC7) in the Tanjung Pelepas Port, Southern Johor. This facility will provide warehousing, distribution and value-added services. Construction began in Q2 2017 and is expected to be completed in Q2 2018. The state-of-the art logistics center with feature a built-up space of 224,000 square feet and a total storage capacity of 27,000 pallet positions, plus a 9,500 square feet office space. This facility will provide temperature-controlled and ambient areas to suit the requirements of different customers. The facility is located in PTP Free Trade Zone, Southern Johor with excellent multi-modal linkages: 38km/50 minutes to Port of Singapore Authority (PSA); direct access to Senai International Airport Johor Bahru; 62km/65 minutes to Changi International Airport of Singapore – and to the land side of the free zone allowing access to the major sea ports where the confluence of main shipping trade-lanes are. Services offered combined with the optimal location of the facility will enable a smooth and accelerated flow of sea-to-air and air-to-sea cargo transportation, as well as cross-border trucking, thus facilitating our customers’ goods movement in their global supply chain. DB Schenker in Malaysia offers integrated solutions

in Supply Chain Management, operating 25 warehouses in Peninsular Malaysia with footprint of more than 2.4mil square feet in 16 strategic locations. The company holds all required licenses for customs clearance, transportation, warehousing and recently was officially accredited for its halal logistics operations under the international halal standard for logistics IHIAS 0100:2010, which covers both storage and transportation. In 2016, the Malaysian Industrial Development Authority (MIDA) has granted Schenker Logistics (Malaysia) Sdn Bhd the status of International Integrated Logistics Services (IILS) Provider. For more information, visit www.dbschenker.com.my

NEW GMS FOR FRASER PLACE KUALA LUMPUR AND FRASER RESIDENCE KUALA LUMPUR Mr. Tan Jin Seng has been appointed as the new General Manager for Fraser Residence Kuala Lumpur effective 20 February 2017. With over 40 years’ experience in various industries including serviced residences , he will be in charge of the overall administration and revenue generation of Fraser Residence Kuala Lumpur with a focus on continuous improvement in the guests’ experiences offered at the 5-star property. “My mission is to continuously position this awardwinning property as the preferred and leading serviced residence in Kuala Lumpur while emphasising on the fivestar warm Asian hospitality that Malaysia is known for,” he said. Ideal for business executives and their families, Fraser Residence Kuala Lumpur provides a myriad of business and leisure facilities for seamless work-life balance. Meanwhile, Fraser Place Kuala Lumpur has appointed Mr. Thompson Shieh as its new General Manager with effect from 1 April 2017. He will be responsible for the daily operations of this award-winning property. Mr. Thompson has more than 20 years’ experience in the hospitality. He joined Fraser Place Kuala Lumpur in 2009

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as the Pre-Opening Executive Assistant Manager and was promoted to Resident Manager in 2014. Comprising 291 fully-furnished contemporary serviced hotel apartments ranging from studios to penthouses, Fraser Place Kuala Lumpur offers 5-star facilities and is ideal for both business and leisure travellers desiring long or short stays. Featuring an eye-catching “bird-cage” centrepiece in its foyer, the property is within walking distance to KLCC Suria Mall and is well-served by an extensive public transport network that offers easy access to the city’s business and shopping malls.

1. Mr. Tan Jin Seng, General Manager for Fraser Residence Kuala Lumpur. 2. Mr. Thompson Shieh, General Manager of Fraser Place Kuala Lumpur.

PHILIPPINE AIRLINES RESUMES SERVICE TO KUALA LUMPUR After a three year absence, Philippine Airlines (PAL) resumed its service to Kuala Lumpur in June. PAL offers daily flights between Manila and Kuala Lumpur. Operating the route is Airbus A321, considered as one of the most efficient singleaisle jetliners. The 199-seater aircraft has 12 seats in business class, 18 in premium economy and 169 in regular economy. “The resumption of PAL flights between Manila and Kuala Lumpur will help foster economic and cultural ties between the Philippines and Malaysia. Most importantly, it addresses the clamour for a direct service between the two capital cities,” said PAL President and COO Jaime J. Bautista. “Through PAL flights and code-share partners, we can carry passenger traffic from Kuala Lumpur to China, Japan, South Pacific and North America and thus enhance our ASEAN network,” he added. PAL's decision to operate daily flights between the two cities comes amidst the airline's fleet modernisation and route expansion program. The non-stop service will enable travellers from KL to enjoy Manila for several days and connect to other domestic and international points PAL flies to. PAL is Asia's first airline with a flight route network covering 31 domestic and 44 international destinations. Malaysia provides a favorable investment climate to individuals and organisations. With investment opportunities in Malaysia's service and manufacturing sectors, the

PAL route will provide direct access to new business opportunities. Close to 800,000 Overseas Filipino Workers are employed in Malaysia. Malaysia Airports Senior General Manager Zainol Mohd Isa said, “As the airport operator, we are always committed towards building a strong relationship with our partner airlines to support its growth, not only in Malaysia but globally. Our mission here at Malaysia Airports is to create joyful experiences for all our stakeholders. Therefore, we will ensure that Philippines Airlines operations will receive Malaysia Airports’ fullest support for any airport facilities and services needed at the terminal.”

KPJ TAWAKKAL SPECIALIST HOSPITAL & KPJ TAWAKKAL HEALTH CENTRE WIN THE PLATINUM AWARD FOR MEDICAL TOURISM CATEGORY FOR KUALA LUMPUR MAYOR'S TOURISM AWARDS 2017 KPJ Tawakkal Specialist Hospital & KPJ Tawakkal Health Centre won the Platinum Award for Medical Tourism Category for Kuala Lumpur Mayor's Tourism Awards 2017 held on May 23. Tuan Hj Mohamad Farid Salim, Executive Director and Dr Chan Kheng Kim, Medical Director from KPJ Tawakkal Specialist Hospital & KPJ Tawakkal Health Centre respectively, received the award from Dato’ Seri Nazri Abdul Aziz, Minister of Tourism and Culture of Malaysia, Datuk Seri Hj Mohd Amin Nordin bin Abd Aziz, Mayor of Kuala Lumpur and Tan Sri Dr. Ong Hong Peng, Chairman of KLMTA 2017.

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New Corporate Partners

BUSINESS INTEGRITY ALLIANCE

Business Integrity Alliance, a non-profit company, is a private sector initiative that brings together companies committed to doing business with integrity to overcome corruption challenges in the Malaysian commercial environment. The Alliance's main activities are: • Corruption focus area mapping sessions • Representation to government on integrity issues, and • Best practice sharing amongst partner companies.

THINKREEL STUDIOS Thinkreel Studios is a production and post production audio & visual studio based in Kuala Lumpur, Malaysia. We aim to provide the highest quality output in the realm of videography and animation for our clients. We are also running as a social business with the aim to providing job opportunities for underprivileged youths in the film-making industry.

Person-in-charge: Dr. Mark Lovatt Address: Unit 1320, Level 13, Lift 4, Block A,

Person-in- charge: Mr. Syed Hanif Address: Block B-3- 30, Dataran Cascades, No 13A,

Damansara Intan, 47400 Petaling Jaya Tel: +603-7611 7610 Email: ask@business-integrity-alliance.org Website: www.business-integrity-alliance.org/

Jalan PJU 5/1, Kota Damansara, 47810, PJ, Malaysia Tel: 012-669 3551 Email: thinkreelproject@gmail.com

ALL1KL SDN BHD ASIA CAREER MANAGEMENT

JUNGHEINRICH LIFT TRUCK MALAYSIA

All1KL Sdn. Bhd, created in 2009, is a consultancy services company in the areas of human resources and career management in Asia. All1KL provides assistance to companies in outplacement services (redundancy situations) and expatriate spouse programmes such as group and individual outplacement support, career continuation workshops and job search tools. All1KL also helps individuals optimise their job search which includes career assessment and positioning, CV and online profile review, elevator pitch, interview preparation and local job market information. Person-in-charge: Elisabeth Laubel, Managing Director Address: Unit 23-1, Premier Suite, One Mont Kiara,

No 1, Jalan Kiara, 50480 Kuala Lumpur, Malaysia Tel: +603 2785-6829 E-mail: contact@all1kl.com Website: www.all1kl.com

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Jungheinrich Lift Truck Malaysia Sdn Bhd is a subsidiary of Jungheinrich AG Germany which is one of the world's four largest suppliers of industrial trucks, warehousing technology and materials flow technology. In Europe, Jungheinrich is the leading supplier of warehousing technology. Since 1953, the Group, which has its headquarters in Hamburg, has been offering forklift-based products and services designed to get things moving for industrial customers. Jungheinrich has about 15,000 employees in its own sales and service offices worldwide. The company’s corporate mission is to maintain the leadership in the Lift Truck industry, providing customers with all the complete solutions related to their logistics needs. Person-in-charge: Mr. Jet Ong Address: 22A, Jalan Anggerik Mokara 31/47,

Kota Kemuning, Seksyen 31, 40460 Shah Alam, Selangor Tel: +603-5525 9888 Website: www.jungheinrich.com.my/

New Corporate Partners

JASA INTEGRITAS (M) SDN BHD INTEGRITY MALAYSIA Integrity Malaysia, established by Edouard Helfand in October 2001, offers corporate risk prevention, detection and investigation services to its clients. The company has since evolved into a regional player with offices in Indonesia, Thailand, Malaysia and Singapore. Its business involves Prevention, Detection and Investigation and its services are organised around three divisions: Governance & Compliance, Business Investigation and Brand Protection. Person-in-charge: Mr. Edouard Helfand / Ms. Lim Li Jin Address: V Square Unit 5-5-1, PJ City Centre, 5-B1-1,

MYDATA-SSM MYDATA-SSM was founded in 2016 to provide users with a single, direct electronic access point to the official company registration offices in Malaysia. Big Dataworks Sdn Bhd was appointed by the Companies Commission of Malaysia (CCM) - Suruhanjaya Syarikat Malaysia (SSM) as its Technology and Service Provider for the supply of legitimate and legal source of information on companies and businesses incorporated and registered in Malaysia. Person-in-charge: Mr. Sheriza Bin Zakaria Address: Big Dataworks Sdn Bhd, Level 4,

Jalan Utara, Petaling Jaya, Selangor Tel: +603-7931 1323 Email: contact@integrity-asia.com / lim.lijin@integrity-asia.com Website: www.integrity-asia.com

Wisma Commerce Dot Com No. 15, Jalan Tandang, 46050 Petaling Jaya, Selangor Tel: +603-7985 5200 Email: sales@mydata-ssm.com.my Website: www.mydata-ssm.com.my

SARAIVA + ASSOCIADOS

PACIFIC WORLD TRAVEL

Since its founding in 1996, the atelier has been growing structurally. Led by architect Miguel Saraiva, the Group has strengthened its areas of expertise and today has several companies devoted to Architecture, Urban Planning, Interior Design, Sustainability and Global Design. S+A offers a clear competitive advantage and market recognition and the S+A Group has its own offices in 14 countries in 4 continents. The know-how gained by designing buildings in various locations allows the team to share experiences and knowledge, which is an asset to the team as well as the clients. The S +A Group, with its multidisciplinary and global presence, combined with a team of over 100 professionals, is currently ranked 109th in the worldâ&#x20AC;&#x2122;s major architecture firms by WA100.

With over 30 years of experience in the travel and tourism industry, Pacific World Travel (PWT) has become the preferred partner of several leading travel industry organisations from around the world, seeking to expand into Malaysia and Southeast Asia. PWT is the first Tourism Representation company in the region that have been awarded with ISO 9001 certification since 1997. As such, services and consistence can be assured. PWT is also the General Sales & Services Agency for Aeroflot Russian Airlines, Alitalia, Hawaiian Airlines, Jet Airways, Kuwait Airways, Philippine Airlines, South African Airways, United Airlines, Europcar, Cunard, Holland America Line, Scenic Cruises, Seabourn Cruise Line and Rail Europe. It also offers Marketing Representation Services to the Macao Government Tourism Office and McArthurGlen Designer Outlets.

S+A Malaysia: Saraiva & Associados Person-in-charge: Mr. Arch. Rui Carvalho Address: C-1-3-3 Solaris Dutamas, No 1, Jalan Dutamas,

50480 Kuala Lumpur, Malaysia Tel: +603-6211 1568 E-mail: my@msa.com.pt Website: www.saraivaeassociados.com

Person-in-charge: Ms. Cherry Lee Tel: +603-2141 3899 Email: pwtkul@pacificworld.travel Website: www.pacificworld.travel

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New Corporate Partners

CYBERVIEW SDN BHD

EVENTBANK

Cyberview Sdn Bhd is a Malaysian government-owned company under the Ministry of Finance mandated to spearhead the development of Cyberjaya to create a Global Tech Hub. This is to empower the technology community with a holistic ecosystem to enable creation, innovation and worldwide business expansion of the technology industry. Cyberjaya is fully equipped with resources, infrastructure, knowledge workers and many other services to mould Cyberjaya into the preferred investment hub for technology companies, and increase economic growth and high-value job provision for Malaysia.

EventBank is a leading cloud-based engagement management technology company that provides chambers of commerce, associations, event organisers, marketers, and businesses around the world with solutions designed to streamline operations, modernise processes, and eliminate engagement challenges. EventBank’s innovative products combine the best event management, membership management, email marketing, CRM, and mobile apps into one all-inclusive cloud platform.

Person-in-charge: Ms. Azrita Kadir Address: Block 3750, Persiaran Apec Cyber 8,

63000 Cyberjaya Tel: +603-8315 6111 Email: azrita@cyberview.com.my Website: www.cyberview.com.my

Person-in-charge: Mr. Stewart Phillips, APAC Business

Development Director Address: Unit 901, Hong Kong Club Building 3A Chater Road Central, Hong Kong Tel: (+86) 185-4890-6930 Email: stewart.phillips@eventbank.com Website: https://www.eventbank.com/

P&P SINGAPORE PTE LTD

STRAITS INTERACTIVE SDN BHD

P&P Singapore Pte Ltd is an advisory firm established in Asia in 2005. People & Projects (P&P) assists European and International companies and entrepreneurs in their operations in Singapore, Malaysia and other South East Asia jurisdictions, Hong Kong and China. P&P’s team, composed of foreign and local professionals, facilitates businesses worldwide to tap into the Asian markets by ensuring that statutory and regulatory compliance of the companies are met. Its services include • Corporate Establishments, nominee services • Payrolls, Social Contribution, Immigration • Accounting • Tax planning and Advisory • Project Management for Southeast Asia, among others.

Straits Interactive provides end-to-end solutions that enable companies to achieve systematic Data Privacy & GRC (Governance, Risk Management & Compliance) so they can build trust with their customers and stakeholders. The company helps organisations achieve operational compliance and manage risks through a combination of information technology and professional services. Straits Interactive adopts a life-cycle approach to operational compliance and risk management so that organisations are able to: • Assess risks and compliance status • Protect against these risks and implement policies/ practices • Sustain compliance efforts through audits, training and ongoing monitoring • Respond to queries or incidents

Person-in-charge: Ms. Marta Giordano Address: 342B King George’s Avenue Singapore, 208575 Tel: +65 6298 0624 Email: marta.giordano@pndp.net Website: www.pndp.net

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Person-in-charge: Mr. Benjamin Shepherdson Address: B-5-8 Plaza Mont Kiara, Mont Kiara,

50480 Kuala Lumpur Tel: +603-2630 8358 Email: benjamin@straitsinteractive.com Website: www.straitsinteractive.com

SHERATON IMPERIAL KUALA LUMPUR For the last 15 years, Sheraton Imperial Kuala Lumpur Hotel has held court as Kuala Lumpur's premiere hotel, a stately landmark inspired by the finest elements in Asian heritage. Nestled in the city center and just steps away from the city monorail and LRT lines, the hotel offers seamless access to Kuala Lumpur's main attractions making it just minutes away from the city's best shopping and dining venues. Offering panoramic city views, the elegant rooms are equipped with WIFI/broadband connectivity and a hospitality port which enables guest to connect personal laptops and other entertainment units to be viewed on the 40" LED television, among others. Person-in-charge: Ms. Winnie Choo Address: Jalan Sultan Ismail, 50250 Kuala Lumpur Tel: +603-2717 9900 Email: winnie.choo@sheraton.com

i2M VENTURES SDN BHD

MIT ACADEMY SDN BHD

i2M Ventures Sdn Bhd was established in 2013 as a company that focuses on the development of strategic investment promotion initiatives for the Global Business Services (GBS) and Shared Services & Outsourcing (SSO) sector in Iskandar Puteri, Iskandar Malaysia. It is a whollyowned subsidiary of Khazanah Nasional Berhad, the strategic investment fund of the Government of Malaysia. GBS ISKANDAR is an initiative by i2M and it is a specialised programme to facilitate businesses to locate GBS Operations in Iskandar Puteri, Iskandar Malaysia. With GBS ISKANDAR, companies will be able to enjoy expert facilitation in order to meet their GBS location requirements, covering key areas such as talent, infrastructure, liveability and incentives. Additionally, qualified companies will enjoy privileged access to customised incentives provided by GBS ISKANDAR.

Malaysian Institute of Technology Academy (MIT Academy) is accredited by the Department of Skills Development (DSD) and appointed licensed training institution from Human Resources Development Fund (HRDF) under the Ministry of Human Resources for providing Technical Vocational Education & Training (TVET) Programmes towards Industry 4.0 and Industrial Internet of Things (IoT). It is also the first vocational institute since 2012 to provide Mechatronics and Mechanical Machining Programmes for vocational education. MIT Academy provides up-skilling/re-skilling TVET training programmes for new workforce and assists in the manpower solutions to MNC companies or manufacturers with up-skilled/re-skilled trainees, graduates and existing workforce that cover Industry 4.0 / Smart Manufacturing / Automation Sectors.

Person-in-charge: Ms. Grace Liew Address: A-FF-01 First Floor Block A, Medini 6,

Person-in-charge: Mr. Anthony Ng Mun Sun Address: No. 26, Jalan Anggerik Vanilla Y31/Y, Section 31,

Jalan Medini Sentral 5, Bandar Medini Iskandar, 79250 Iskandar Puteri, Johor, Malaysia Tel: +607-509 5416 Email: grace.liew@i2m.com.my Website: www.gbs-iskandar.my

Kota Kemuning, 40460 Shah Alam, Selangor, Malaysia Tel: +603-5122 0703 Email: anthony@mitacademy.edu.my Website: www.mitacademy.edu.my EUMCCI REVIEW

Lifestyle

SPANISH FLAVOURS

Cava Restaurant & Bar offers cuisine expressed in bold and defined flavours. By Kanchana Nanda Kumar

rawing inspiration and flavors from Spain’s culture, Cava Restaurant & Bar offers an experience that is both unique yet characteristic to the country of its origin. Nestled within the leafy neighborhood of Jalan Bangkung in Bangsar. Cava which is noted for its traditional and modern Spanish cuisine, is no stranger to the local culinary world. Ambience was softened by candelabras, fresh flowers and romantic lighting, with framed pictures of happy patrons mounted on the wall. A well-stocked bar not out of place, no doubt contributing to the happy memories. The cuisine overall was satisfying, expressed in bold and defined flavours. Presentation of the dishes managed to hark back to long-established tradition yet showcasing a modern appeal. We started with three dishes, a mushroom and walnut tapas, sizzling prawns and crispy baby squid. The mushroom and walnut was silky but firm, a light touch

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on the tastebuds built to strong and pleasing flavour. The squid was accompanied by a garlic aioli which proved to be the perfect accessory to a well-prepared dish. The prawns, a speciality of the house, did not disappoint. It came sizzling, fresh from the kitchen – the prawns were firm in texture and rich in flavour with the rosemary, garlic and chili oil bringing life to the tapas. The first of the main dishes chosen was a baked Gaelician-styled cod accompanied by an olive tapenade cream source, mashed potatoes and baked vegetables. The fish was cooked beautifully, firm to both touch and taste, the mash potatoes light and delightful and the vegetables cut in small manageable bite sizes. The creamy sauce enriched the various components of the dish bringing it all together. The second was a seafood squid ink paella strong in flavour with chilli padi sauce on the side giving it a local twist. The final main dish was baked suckling lamb, (recommend for sharing), similar in accompaniments as the cod. This was a generous satisfying serving. For dessert we selected a Spanish crème brulee which was light and easy to polish off. All of these were washed down with Cava’s original white Sangria which I would definitely recommend. Overall Cava Restaurant & Bar lived up to its reputation with a repeat visit in order. 

HIGHLIGHTS 2017

e developm inabl en sta t su

Supp ort in

CSR seminar leading to Europa Aw ards 2017

Sustainable Business Growth Through Strategic CSR 7th Sept | 09h00 – 15h30 | Renaissance Hotel

EUMCCI PRESENTS

PALM OIL SUSTAINABILITY

EU-MALAYSIA INTERNATIONAL DISCOURSE In conjunction with IGEM 2017

wednesday 11th october, 2017 | 9Am - 1pm | Kuala Lumpur convention Centre

In conjunction with IGEM 2017 • KeTTHA Networking Breakfast • Ambassadors Cocktail

Supp ort in

Europa Awards Preview Conference g

e developm inabl en sta t su

23rd Nov

Supp ort in

11th -13th october, 2017 | Kuala Lumpur convention Centre g

e developm inabl en sta t su

24 Nov th

Gala Event at Connexion @ Nexus Bangsar South

EU ASEAN

Forum on Food Safety and Food Logistics

5th – 6th Dec 8 th- 9 th December 2017 The Square & The Black Box @ PUBLIKA

*Tentative Programme

Jambatan Kedua Sdn Bhd 4th Floor, Bangunan Setia 1, 15 Lorong Dungun, Bukit Damansara, 50490 Kuala Lumpur. Malaysia Tel: +603-2084 5000 Fax: +603-2084 5103 Hotline: 1300-30-2828

www.jambatankedua.com.my aduan@jambatankedua.com.my /jsahmsoﬃcial @jsahmsoﬃcial