MALAYSIAN
INTERIOR
INDUSTRYPARTNERS
A-RATED IN THE INDUSTRY CEO Agnes Ang & COO SL Tong of A & A Group shares business diversification plans & best practices of the firm TECHNICAL TALK ON HANDLING DELAY & PROLONGATION COST CLAIMS BUILDING INFORMATION MODELLING’S ROLE IN FIT-OUT SECTOR
Vol.5 No.1 / 2019 / RM10.60
KDN NO PP18721/04/2015 (034180)
ISSN 2289-9316
CONTENTS ON THE COVER 02 A-Rated In The Industry
MIIP Award winner A & A Group on its business diversification plans and best practices unique to the firm.
FEATURE 04 BIM’s Role In The Fit-Out Sector
CIDB e-Construct Services Sdn Bhd’s General Manager Mohammad Farid A. Hamid shares the benefits of BIM implementation with MIIP members.
06 Success Lessons from JK Rowling 08 Budget 2019 – What’s In Store For You?
The government announced programmes to help boost local SMEs.
EVENTS 09 Technical Talk on Handling Delay & Prolongation Cost Claim 10 Tour of WISDEC 12 A Visit to Dynamic Furniture Industries 14 A Visit to Hunter Douglas 16 Badminton and Ping Pong Tournament 2018
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VOL 5 NO 1 2019
/ COVER STORY /
A-Rated In The Industry MIIP Award winner A & A Group on its business diversification plans and best practices unique to the firm.
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ndustry veteran A & A Group recently bagged two Gold MIIP Awards in the Public Design and Residential categories. Prior to this, the company has also garnered several industry, business and entrepreneur awards over the years. Established in 1997, A & A Group provides a holistic and customised suite of design and contract services to commercial, residential and corporate clients. It also offers
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manpower and technical support for turnkey construction projects of any scale. In addition, the company is a qualified CIDB green card member and CIDB licensed contractor, as well as a registered interior designer company under Malaysia’s Finance Ministry. Overseeing daily operations and business expansion are CEO Agnes Ang and COO SL Tong. The duo shared that the company has always worked towards having 20% new
clients every year without compromising support for recurring clients. While the soft economy in 2017 and its spill over effect in 2018 have many clients on the wait-and-see approach, many have shown indication of bouncing back. “Although our clients have new business in the pipeline 2017, many decided to hold off. But since late 2018, we have seen many of them beginning to revive those plans. Now, it is the time to execute those plans.” Aside from recurring clients, the Group is also looking into more institution and education clients. “We are in the midst of carrying out work for institutions and campuses, which adds to our already diverse portfolio.” Both of them agreed that the Malaysian market is positive and recovering after the new government took over in May last year. “We foresee that compliance will be a talking point for government contracts. The tender and approval processes are more transparent and efficient. However, the sales and services tax (SST) remains a bugbear for business owners. Many proposed cost estimates were affected as prices of goods went up. So for us, we are required to bridge that gap,”
Currently, it is still more cost effective to import certain construction goods rather than procuring from local manufacturers. Perhaps the government can look into incentives for local manufacturers so we can look into working with Malaysian suppliers instead.
A & A LOOKS EAST As part of its business expansion plans, the Group has been making inroads to China and Vietnam. Much of its success in these markets depended on the company’s stellar experience, reliability, workmanship skills, pristine track record and financial strength. “The Chinese corporation has completely different compared to anywhere in the world. It has rigid pre-qualifying conditions that one must meet before even being considered. To then qualify and be chosen, you will then need to meet another set of highly stringent criteria. “In addition, preparation time for these criteria is very short. However, we are confident each time we tender for a project,” said Tong. Another challenge they had to work with is the local culture and working environment. “Each country has its own regulation, work culture and mindset. While some of them seem foreign to Malaysians, it is a matter of gaining better understanding through experience. “Moreover, the scale of work in these two countries are vastly different than Malaysia. Project scale is way bigger and more complex. However, this encourages us to meet the challenges and progress as a business.”
UNIQUE APPROACH Unlike many design firms, A & A found that by working in the early stages with the architect team has been fruitful. It has improved efficiency as troubleshooting and problemsolving are done before even going on site. “We find that designers add value by providing their perspectives on how the end product will look like. Architects can then take into account those issues and have open discussions together. That way, our designers have a sense of ownership as well.” “We can even support our client in terms of marketing collateral. In fact, this practice has allowed clients to market projects way ahead of schedule.”
TALENT NURTURING To support its design consultancy, the company has more than 15 designers. Agnes admitted that manning a design team is different compared to other departments. “Apart from technical know-how, we value creativity when hiring designers at A & A Group. Staffing a design team is very much different than other departments in an ID company. We need designers who are creatively different, with their own styles, so we can have a diverse team to meet client demands. Hence, we have longstanding internship programmes with notable universities and colleges. We are also on the judging panel for MIID’s university level competitions. “As part of our talent development programme, we take in interns, provide
them with ample exposure and training as well as hire. Our success really depends on talented and committed staff members.” Our design team are highly engaged in presenting ideas to clients as well as being exposed to customer service. “We have observed many newbies lack of good communication skills. How you communicate with clients is a large part of helping to market the creative ideas. So, as a company, we decided that the designers should not be stuck in their cubicles with their computers but rather taking ownership in marketing their ideas. We have included our designers in meetings so they can present their ideas and concepts to the clients. This also allows them to receive unfiltered feedback from the client to move forward in the project. After some time, we have seen them gain more confidence and enhance their soft skills.
FUTURE OF SMART TECHNOLOGY Both Agnes and Tong acknowledged the growing demand for lifestyle and technology advanced solutions will be part of the interior design evolution. “With the younger generation who now has buying power and technology savvy, they are looking into enhancing their homes. We have been actively working with solution partners to provide our team product knowledge. So, we can highlight the necessary solutions during our client advisory,” said Tong.
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/ FEATURE /
BIM’s Role In The Fit-Out Sector CIDB e-Construct Services Sdn Bhd’s General Manager Mohammad Farid A. Hamid shares the benefits of BIM implementation with MIIP members.
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n Malaysia, BIM (Building Information Modelling) is defined as a modelling technology and associated set of processes to produce, communicate, analyse and use digital information models throughout the construction project life cycle. It is an intelligent 3D model-based process that gives the architecture, engineering, and construction professionals insight and tools to more efficiently plan, design, construct and manage buildings and infrastructure. Malaysia’s construction regulatory body, Construction Industry Development Board
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(CIDB), had announced in late 2016 that government projects worth more than RM100 million are required to use the BIM system. Hence, MIIP invited CIDB e-Construct Services (CIDBEC) Sdn Bhd’s General Manager Mohammad Farid A. Hamid to its headquarters in KL on 19 December 2018 to give a presentation on BIM. CIDBEC is the reference centre for the construction industry, which in turn manages the CIDB myBIM Centre, which provides training on BIM and its technologies, as well as other services such as room rental facilities, studios and labs.
“Before something physical is built on site, BIM takes you through virtually in minute detail how a building is will done, a virtual design-to-construction process. It also includes a demolition and maintenance phase.” He said BIM reduces uncertainty, waste, cost and time as well as simulates and analyses potential clashes, issues and problems. Subcontractors from every trade can input critical information into the model before beginning construction, with opportunities to pre-fabricate or pre-assemble some systems off-site. Products and materials can then be delivered on a just-intime basis rather than being stockpiled on-site.
“BIM prevents errors via its design clash detection feature whereby the virtual model highlights parts of the building that are in conflict. “Since BIM is a collaborative platform, you can invite all partners and stakeholders of a project to facilitate transparent and efficient communications between architects, contractors, owners, finance, engineers, facilities managers and so on. Changes can be easily updated and communicated to all parties involved.” With the implementation of BIM, Farid said it solves a number of common issues such as project delays, additional costs and wastage. “3D modelling has long been used to in manufacturing of planes, ships, and vehicles. However, the construction industry in Malaysia is just getting started on BIM. It has been proven that with that right BIM implementation, the industry stands to benefit so much more.” Implementation of BIM in other parts of the world are well-known. For example, the US has mandated the use of BIM during the design stage for its public buildings while government projects in the UK are required to have BIM Level 2 accreditation since 2016. Meanwhile, in Hong Kong, its Housing Authority requires BIM in new projects since 2014 and South Korea’s Public Procurement Service made BIM compulsory for all public sector projects in 2016. Late last year, CIDB also announced its
“BIM prevents errors via its design clash detection feature whereby the virtual model highlights parts of the building that are in conflict.” – Mohammad Farid A. Hamid, General Manager of CIDB e-Construct Services (CIDBEC) Sdn Bhd’s
plans to establish an Industry Revolution 4.0 roadmap for the industry. Where BIM is concerned, the emphasis will be placed on the usage of cloud-based integration, which is highest form of adoption (Level 3 accreditation). However, adoption of BIM in Malaysia is slow. Industry experts have attributed the slow adoption to the lack of professionals that are trained in BIM as well as the high cost of its software and implementation. Hence, the MyBIM centre in Kuala Lumpur was established. Designed as a one-stop resource centre, MyBIM houses state-of-the-art facilities that enable users
to model and visualise building projects in a simulated environment with the help of the National BIM Library where users can download and use any of the BIM objects and materials. Currently, there are about 7,400 BIM components including pre-approved plans, industrial building systems and medical and manufacturing products. “The centre also offers subsidised trainings as well as subsidies for companies that purchase BIM software or have their employees trained. These subsidies from the BIM Transformation Fund are provided as a means of reducing the high-costs of BIM adoption, particularly for SMEs,” said Farid.
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Success Lessons from JK Rowling By Dr Victor SL Tan
Dr Victor SL Tan is the CEO of KL Strategic Change Consulting Group. His passion is to inspire others to bring out the best in themselves and hence contribute to make this world a better place. For more information please contact him at victorsltan@klscc. com or whatsapp him at 012 3903168.
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e have often heard many inspiring stories from business tycoons such as Warren Buffet, Bill Gates, Richard Branson and Jack Ma, but seldom do we capture the success principles from writers. In this article I would like to focus on the lessons of success from billionaire JK Rowling, creator of the popular Harry Potter series.
Rowling is a British novelist, screenwriter and producer who became famous for her Harry Potter novels. Forbes ranked her wealth at US$1.2 billion making her the first billionaire writer in the world. To get a real feel where this success story started, I recently took a trip to the place where she used to write her famed Harry Potter series of books – The Elephant House, in Edinburgh, Scotland. It was inside this cafÊ she wrote her series of Harry Potter books.
TAKE RISKS
Passion is a powerful motivator. It gives one the energy, the power and perseverance to continue doing what one loves and to prevail over challenges. She has the passion to write children fantasy novels. Her seven Harry Potter books have been translated into 79 languages, won multiple awards, and sold more than 450 million copies worldwide, becoming the best-selling book series in history. In the beginning she faced resistance and had doubts. Even her parents wondered how she would pay her bills and survive just by writing novels. Her first book, Harry Porter and the Philosopher’s Stone was rejected 12 times and she was told “not to quit her day job”. Her passion in writing helped her persevere until her book was eventually published by Bloomsbury in 1997. Her passion gave her the will and discipline to prevail over great obstacles and to succeed.
YOUR PASSION
AND DO NOT BE AFRAID TO FAIL
Go all out and pursue what you think you can and want to do. Do not let fear or let the opinions of others stop you. Take risks, experiment, fail if need be, but persevere until you succeed. JK Rowling said that seven years after her graduation, she had failed on an epic scale - a broken marriage, jobless, penniless and being a single parent raising her daughter in a cramped apartment. The value of failure strips you of all pretense and reality hits real hard – you cannot succeed unless you overcome the challenge and move on to better things. In JK Rowling’s case, she put her talent, effort and commitment into her work – writing novels. “It is impossible to live without failing at something unless you live so cautiously that you might not have lived at all, in which case you fail by default,” said Rowling.
PURSUE
WEALTH INSTEAD OF POVERTY In a speech to a Harvard graduation class of 2008, Rowling cautioned, “Poverty itself is romanticised only by fools. It means a thousand petty humiliations and hardships. It entails fear and stress, and sometimes, depression.” She knew what it was like to be poor. She felt the agony of not be able to provide adequately for her family and to depend on welfare when she was struggling as a single parent raising her daughter. She knew that desperation and despair could bring one to a point of being suicidal. We do not have to believe that we have to be poor to be good. There is nothing wrong of pursuing wealth. We owe it to ourselves and family to be financially strong to provide them the comforts of life. It is certainly more meaningful to live the good abundant life than to suffer an impoverished life.
THE MAGIC “We do not need magic to change the world, we carry all the power we need inside ourselves already: we have the power to imagine better.” JK Rowling advocates the use of our imagination and to put ourselves in the shoes of those who do not have the advantages that we have. We can use our knowledge, skills, talent, ability or resources to address the causes plaguing our world today. Rowling practices what she preaches. In 2011 she gave US$160 million – about 16% of her net worth - to various charities and causes, including multiple sclerosis and AIDS Foundation. She believes that one has a moral responsibility to give others when one has been provided more than one needs. Her charitable donations have transformed the lives of many underprivileged people. JK Rowling was awarded the 2016 PEN/Allen Foundation Literary Service Award for her work which embodies the PEN America’s mission to oppose repression in any form, and to champion the best of humanity. Indeed, JK Rowling is not only a successful novelist but a person with a caring heart. She is doing much to inspire, touch and help thousands of disadvantaged people and help make their world a better place.
OF CHANGE LIES WITHIN US
ROMANTICISE
Here are the lessons of success we can learn from JK Rowling:
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/ FEATURE /
Budget 2019 – What’s In Store For You? The government announced programmes to help boost local SMEs.
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n 2 November 2018, Finance Ministry Lim Guan Eng tabled the Budget 2019 in Parliament and there is a handful of financial encouragement for Malaysian SMEs. A RM4.5-billion SME Loan Fund with a 60% guarantee from Skim Jaminan Pembiayaan Perniagaan, including RM1 billion for bumiputera SMEs is set aside. In addition, corporate income tax rate for taxable income of up to RM500,000 and SMEs with paid-up capital of less than RM2.5 million is reduced from 18% to 17%. SMEs are to receive some RM2 billion worth of credit and takaful facilities for exports, via EXIM Bank. And RM1 billion SME Syariah-compliant Financing Scheme will be made available via Islamic financial institutions where the government will provide a subsidy of 2% profit rate. In response, SME Corp Malaysia commended Budget 2019 for its broad-based approach and supportive of SMEs. The Star reported SME Corp as saying the SME development allocation in the Budget next year was very much welcomed as a further boost, especially in the areas of access to financing which would continue to be given an important emphasis, export promotion, entrepreneurship and various programmes under the SME Masterplan. SME Corp added the estimated allocation of RM17.94 billion for SME development across all economic sectors was expected to generate an additional RM3.8 billion of SME-value added in 2019, which is an increase of 0.3 percentage point in share of SME GDP to total GDP. According to the SME Annual Report 2017/18, SMEs contributed RM435.1 billion to the economy in 2017, with a higher GDP growth of 7.2% against 5.2% in 2016. As a result, contribution of SMEs to GDP stands at 37.1% in 2017, with overall employment at 66% and total exports at 17.3%.
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Other Interesting Announcements Are: • Services Tax for imported services
(beginning January 2019) and imported online services (beginning January 2020) • Petrol subsidies to end • Real Property Gains Tax raised from 5% to 10% for companies • RM210 million (2019 to 2021) to support transition to Industry 4.0. Malaysian Productivity Corporation to help first 500 SMEs to undertake readiness assessment for such migration • RM2 billion under the Business Loan Guarantee Scheme to support SMEs investing in automation, with guarantees up to 70% • RM3 billion for the Industry Digitalisation Transformation Fund at subsidised 2% interest rate to support adoption of smart technology • Pioneer status (70%) or investment allowance (60%) for five years for companies producing environmentfriendly plastics • Public-listed companies to disclose key pay metrics in annual reports, including average wage per worker, lowest wage paid and highest-lowest wage ratio • Tax exemption on donations to upgrade
infrastructure at national schools and public institutions of higher learning • RM100 million for reconstruction of dilapidated schools via public-private partnerships • Tax relief for companies that help pay off the remaining PTPTN loans of their employees for the year ending 2019 • Mandatory EPF contribution by employers reduced from 6% to 4% beginning January 2019 for employees aged over 60 • Employers hiring workers over 60 to get additional tax deduction up to RM4,000 monthly pay to promote employment of elderly • RM20 million matching grant for apprenticeship and graduate enhancement programmes to boost employability of 4,000 youths • RM1.5 billion for the development of affordable homes • RM1 billion fund to help first-time homebuyers (monthly income of less than RM2,300) buy homes costing less than RM150,000 • Rehda agreed to reduce house prices by 10% for non-price-controlled units
/ EVENT /
Technical Talk on Handling Delay & Prolongation Cost Claims In the industry, delays are all too common but such delays can adversely affect a company’s cash flow, efficiency and overall business direction. Claims relating to the consequences of delay to construction/engineering contracts such as Extension of Time (EOT) and Acceleration, Loss & Expense, among others, are very common in practice. Most contracts do not give guidance to claimants on how to properly formulate their related claims so that they can be successful. And neither are contract administrators/evaluators of such claims given any such guidance. Given this state of affairs, most such claims are very poorly handled at all stages up to and inclusive at the final dispute resolution stage. To help MIIP members address these issues, a talk on “Handling Delay
& Prolongation Cost Claims” by Lam Wai Loon and Chung Sheuan Seen, was held on 18 August 2018 at the MIIP office. Lam is a founding partner of Messrs. Harold & Lam Partnership. He is a Chartered Arbitrator (CIArb, UK) and a qualified adjudicator for disputes under the Construction Industry Payment and Adjudication Act 2012. Chung has more than 15 years’ experience working on megainfrastructure engineering projects with a sound appreciation of such complex and large projects in the areas of project management specialising in time control (planning and programming) and on matters relating to preparation/evaluation of delays and disruptions (time aspect) and extension of time. Later, participants adjourned to Beta KL at Fraser Place in Jalan Perak.
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Tour of WISDEC Wood is only of the main raw material for the interior industry. Over the years, leading companies in the industry have highlighted the insufficient skilled manpower in wood skills. As part of an educational tour, MIIP members paid a visit to the Wood Industry Skills Development Centre (WISDEC) in Banting on 27 July 2018. WISDEC is under the purview of the Malaysian Timber Industry Board (MTIB). MTIB is a federal statutory body responsible for the development of the timber industry of the country. One of MTIB’s roles is human resource development. To carry out this mandate effectively, MTIB set up WISDEC in Banting (1995) and Kota Kinabalu in 2005. WISDEC’s main objectives are: • To provide an industry-oriented skills training; • To help improve the supply of skilled and knowledgeable workforce; • To provide technical advice in the production of furniture;
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• To expedite technology transfer through technical training to modernise the wood processing industry; and • To assist in the product development. The centre is also tasked with technical training, organising furniture design contests well as coordinating Malaysia Skills Competition. WISDEC also works closely with universities, relevant ministries and other training centres. The RM2.8 million facility in Banting is able to accommodate students and trainees for its various programmes. Under its Short Course, participants are able to receive training on levels of operators, technicians, supervisors and management. The centre is also able to conduct customised training in Wood ID, Wood Technology, Wood Anatomy, Machining and Furniture Making. Meanwhile, weekend courses are aimed at local entrepreneurs and to foster public interest in furniture-making. In addition, there are several certification programmes under its
youth training programme scheme. The Certificate in Furniture Design and Making is a programme that offers industrial skills training and knowledge of woodbased industry to young designers and fresh graduates. The Professional Management Development Programme offers structured practical training and exposure to relevant business practices. The Certificate in Timber Processing and Finishing Technology is an intensive hands-on training and structured skills enhancement programme designed to produce competent, effective and skilled workforce to support the nation’s woodbased industry. Under WISDEC’s Competency Based Training, interested parties are able to join the Wood-Based Industry Apprenticeship Scheme (provides excellent career opportunity) and Wood Drying Course (training given by MTIB, Forest Research Institute Malaysia and Universiti Putra Malaysia).
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A Visit to Dynamic Furniture Industries On 27 July 2018, a group MIIP members paid a visit to Dynamic Furniture Industries (M) Sdn Bhd’s office in Kampung Baru Subang, Shah Alam. The group was given a presentation by the company’s Founder and Group Managing Director Khoo Yeow Chong on the Dynamic Furniture Industries’ wide range of products and services as well as a tour of its show room. After the comprehensive presentation and tour, the group adjourned to a networking session and sumptuous dinner hosted by Khoo.
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Established nearly 30 years ago, Dynamic Furniture Industries is a manufacturer and distributor of high quality furniture, including its popular leather sofas and fabric sofas, arm chairs, dining chairs and bedding. The company has grown into a reputable and reliable organisation in Southeast Asia. It has expanded its market to Indonesia since 2012. Its regional headquarter and main production facility is in Banting. The facility comprises state-of-part production line, R&D, warehousing, regional procurements,
logistic and other business divisions. Another regional operation centre with a production facility is in Jakarta that caters to regional demands. Many of its products are sitting in hotels, restaurants, government buildings, residential building and others. Among its clients are the Alam Shah Palace, Star Cruises, Shangri-La hotel, Eastin Hotel, Grand Dorsett hotel, Genting Highlands and more. The company has also earned various industry awards as well as ISO:9001 Quality Management Standard certification.
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A Visit to Hunter Douglas On 28 July 2018, MIIP entourage visited Hunter Douglas (M) Sdn Bhd at its headquarters in Hicom Industrial Estate, Shah Alam. Established in 1979, Hunter Douglas Malaysia has an assembly and manufacturing plant and serves as a hub for the company’s Asian operations. The group was given a presentation by General Manager James Sia Geun Hea on the company’s wide range of products and services as well as a tour of its show room. Hunter Douglas offers a comprehensive portfolio of custom made window solutions such as blinds, shades and shutters as well as an array of innovative lifting systems for easy operation and enhanced child safety. The company also support its business partners with technical consulting and support services for architects, developers and installers. It helps architects and developers with recommendations regarding materials, shapes and dimensions, colours and finishes. Hunter Douglas helps create design proposals, visualisations and mounting drawings as well as provides detailed installation drawings and instructions to installers and on-site advisory. It boasts of innovative fabric designs that filter sunlight into a soft glow and help protect furnishings from damaging UV rays. These products can help channel light deeper into rooms, filling dark corners and reducing the need for electrical lighting. More interestingly, Hunter Douglas’ smart home automation solution, PowerView Motorisation, can adjust shades for optimal energy efficiency and lighting throughout the day. Lastly, MIIP members were introduced to the Hunter Douglas Designer Club, which is an exclusive loyalty programme for business partners.
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Badminton and Ping Pong Tournament 2018 As an effort to encourage healthy living, MIIP organised a badminton and ping pong tournament on 28 September 2018. The tournament is also a good way for MIIP members to get into the competitive spirit while improving working relationships with each other. Member companies participated in teams and winners went home with bragging rights and trophies. Congratulations to all.
WINNERS’ LIST Badminton
1st – Luxx Newhouse Furniture Sdn Bhd 2nd – Can.I Interior Fit-Out Sdn Bhd 3rd – Sika Kimia Sdn Bhd
Ping Pong 1st – IJM Construction 2nd – Archi-Foam Sdn Bhd 3rd – Can.I Interior Fit-Out Sdn Bhd
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