Malaysia Retailer|Vol 6|No 4|2018|Sunsuria

Vol 6 No 4 2018

SHINING BEACON ON THE HILL

Sunsuria Bhd Founder and Executive Chairman Tan Sri Ter Leong Yap shares his views on the retail industry and integrated development Sunsuria Forum in Setia Alam

MIRF 2018

MRCA Installation Dinner Promise of Greater Growth

WM RM9 / EM RM11

Catalyst for Retail & Franchise Industries

MRCA Corporate Patrons

Event

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A-5-2, 3, 3A, Level 5, Block A, Sky Park One City, Jalan USJ25/1, 47650 Subang Jaya, Selangor.

Tel: 603-5882 4333 Fax: 1 700 810 950 Website: www.mrca.org.my PRESIDENT Datuk Seri Garry K.S. Chua ROTOL FOOD-CHAIN (M) SDN BHD IMMEDIATE PAST PRESIDENT Dato’ Liaw Choon Liang, JP FOCUS POINT HOLDINGS BHD DEPUTY PRESIDENT Dato’ Vincent Choo Kok Leong URBAN IDEA SDN BHD VICE PRESIDENTS Dato’ Liew Bin BRILLIANT MERCHANDISING SDN BHD Valerie Choo Yoke Shiem Simply Awesome Sdn Bhd Shirley Tay Bee Koo SUNRIDER INTERNATIONAL (M) SDN BHD Datuk Seri Dr. Chai Kee Kan KK SUPERMART & SUPERSTORE SDN BHD SECRETARY GENERAL Ken Phua Cheng Chuen BENTLEY MUSIC SDN BHD DEPUTY SECRETARY GENERAL Dato’ Bruce Lim Aun Choong SKILLS JOHOR SDN BHD TREASURER GENERAL Dato’ Alex Wong Che Sing HAP SENG STAR SDN BHD DEPUTY TREASURER GENERAL Dato’ Winnie Lim Yoke Chin SOLUTION RISK CONSULTANTS SDN BHD COUNCIL MEMBERS Seak Thean Pow BAGUS CURTAIN SDN BHD Dato’ Choi Wei Yee SUNLIGHT TAXI SDN BHD Dato’ Syed Kamarulzaman Dato’ Syed Zainol Khodki Shahabudin PERBADANAN NASIONAL BERHAD Dato’ Dr Edmund Lee Kim Hock KLUANG STATION F & B SDN BHD Datin Flora Tan Joo Hua TRANSTEL TECHNOLOGY (M) SDN BHD William Tang Chee Weng The Store Corporation Berhad Brian Tham Jee Ping WATATIME (M) SDN BHD Nicholas Chong Kah Yean YFS CORPORATE (M) SDN BHD Jeff Yong Chun Loong KIMMA SDN BHD Raymond Woo ARORI (M) SDN BHD Sharan Jethanand Valiram Valiram Trading Sdn Bhd FOUNDER PRESIDENT Dato’ Eddie Choon POH KONG HOLDINGS BHD Malaysia Retailer Vol 4 No1

PRESIDENT COUNCIL Dato’ Eddie Choon POH KONG HOLDINGS BHD Datuk Albert Chiang BONIA CORPORATION BHD Datuk Lee Hwa Cheng KACHING NETWORK SDN BHD Dato’ Tay Sim Kim OSIM (M) SDN BHD H.E. Datuk Seri Nelson Kwok, JP HONORARY CONSUL OF THE REPUBLIC OF MOZAMBIQUE TO MALAYSIA NELSON’S FRANCHISE (M) SDN BHD Dato’ Liaw Choon Liang, JP FOCUS POINT HOLDINGS BHD Datuk Seri Garry K.S. Chua ROTOL FOOD-CHAIN (M) SDN BHD BOARD OF ADVISORS Dato’ Dr. Jennifer Low, JP GROUP MANAGING DIRECTOR, QUILL GROUP OF COMPANIES Tan Sri Dr Lim Wee Chai CHAIRMAN, TOP GLOVE CORPORATION BHD Tan Sri Dato’ Sri Leong Hoy Kum GROUP MD, GROUP CEO, MAH SING GROUP BHD Tan Sri Dato’ Sri Barry Goh Ming Choon CHAIRMAN OF MCT BHD Tan Sri Datuk Tee Hock Seng JP GROUP MANAGING DIRECTOR OF BINA PURI HOLDINGS BHD Tan Sri Ter Leong Yap Executive Chairman Sunsuria Bhd PRESIDENT’S ADVISOR Tan Sri Dato’ Sri Tang Yeam Soon THE STORE CORPORATION BERHAD PRESIDENT’S ADVISOR FOR EVENT & PR Tan Sri Datuk Danny Ooi D’TOUCH INTERNATIONAL SDN BHD LEGAL ADVISORS Ringo Low RINGO LOW & ASSOCIATES Dato’ Dr Manjit Singh MANJIT SINGH SACHDEV, MOHAMMAD RADZI & PARTNERS HONORARY AUDITOR Dato’ Sri Raymond Liew Lee Leong MCMILLAN WOODS OTHER FOUNDING MEMBERS Dato’ Chin See Keat Wong Chee How

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President’s Message Greetings fellow MRCA members,

Datuk Seri Garry KS Chua, President, 2016-Present, Malaysia Retail Chain Association

We are coming to the end of this year and I am proud to say that we are reaching the 500 member target for 2018.

For the past 4 months we have been having many events such as the MIRF 2018, Installation Dinner, CEO Talk and the Anniversary Dinner. I would like to thank all the Organising Chairman of the various events who has work very hard to put up a great event. In particular I would like to thank Raymond Woo and his team for dedicating their time and effort to make MIRF 2018 a great success. It was the biggest show ever for MRCA. Credit also goes to our Anniversary Dinner joint OC’s Dato’ Winnie Lim and Sharan for making it a full-house event, thank you to Dato’ Dr Edmund and Jason Woo for putting together the CEO Talk, Dato’ Bruce Lim and William Tang for organising the Installation Dinner and also to Dato’ Vincent Choo for successfully publishing the Who Is Who MRCA Directory 2018 which was launched during the Anniversary Dinner.

I would also like to thank the Minister of Domestic Trade and Consumerism Datuk Seri Saifuddin Nasution Ismail for officiating the MIRF 2018, and representing the Deputy Prime Minister Dato’ Seri Wan Azizah for the Installation Dinner, and the YB Deputy Entrepreneur Minister Mohamad Hatta Ramli for being the Guest of Honour for the Anniversary Dinner. YB Mohamad Hatta Ramli had a fruitful dialogue with the MRCA Council members during the MIRF 2018 event. We also had the honour of having the Deputy Minister of International Trade and Industry, YB Dr. Ong Kian Ming, grace the MIRF Networking Dinner.

During the Anniversary Dinner we honoured all our long standing MRCA members who have been with us for more than 10 years. We thank them for their contribution and support and being a faithful member of MRCA. I am pleased that our Cabinet Ministers are supportive of MRCA and have given their assurance that they will always look into ways and means to help the retailers. I am also pleased to inform you that the Ministry of Domestic Trade and Consumer Affairs has appointed me on its Nasional Cost of Living Action Council to draw up policies that will benefit the people.

As I have said before, we hope the government will look into bringing more tourists, especially for China, to Malaysia to help grow the retail industry. Chinese tourists should not be overlooked as they are the biggest spenders and also the largest in terms of consumers’ numbers.

As the year draws to a close, we will be having our Annual Charity Run to raise funds for selected charity homes. I hope all our members will participate for a worthy cause.

I would like to wish all members Merry Christmas and a Happy New Year.

“ENRICHING MEMBERS FOR THE FUTURE”

Malaysia Retailer Vol 6 No 4

CONTENTS / VOL. 6 NO. 4

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MRCA Council Installation: Promise of Greater Growth

DEPARTMENTS 3 President’s Note

41 MRCA President’s Selected Activities

42 Monthly Meeting

ON THE COVER

Tan Sri Ter Leong Yap, Sunsuria Bhd Founder and Executive Chairman Photography: Song @ Picture This

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COVER STORY 6 Shining Beacon On The Hill

Sunsuria Bhd Founder and Executive Chairman Tan Sri Ter Leong Yap shares his views on the retail industry and integrated development Sunsuria Forum in Setia Alam.

FEATURES 12 MRCA Council Installation: Promise Of Greater Growth 18 MIRF, Catalyst For Retail & Franchise Industries 24 Taiwan Expo 2018 In Malaysia Ends On A High Note 26 Alibaba Business School Initiates Global E-commerce Talent Network 28 Franchise Support 30 Larkin Junction, Everything Within Reach 34 Outlook Of The ASEAN Retail Market 37 GINTELL Launches REST N GO Application Nationwide 38 MRCA Charity Run 2018

39 Rolls-Royce Hosts Black Badge Weekend 40 Glitz & Glam At Stylo Gentlemen’s Weekend

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Taiwan Expo 2018 in Malaysia Ends on a High Note

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Glitz & Glam at Stylo Gentlemen’s Weekend

Cover Story

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Shining Beacon On The Hill

Sunsuria Bhd Founder and Executive Chairman Tan Sri Ter Leong Yap shares his views on the retail industry and integrated development Sunsuria Forum in Setia Alam.

Photography Song @ Picture This

espite growing up in a family of teachers, Tan Sri Ter Leong Yap showed a strong entrepreneurial streak even as a young boy. Tan Sri Ter who received The Edge Malaysia Outstanding Property Entrepreneur Award 2017, said in an interview with The Edge Malaysia Weekly last November that he saw an opportunity to make money when he was in Standard 5 by organising trips for friends.

He did give teaching a try but his father influenced him to take the entrepreneur route.

In 1989, Tan Sri Ter started Sunsuria to develop various residential, commercial and industrial property projects in Klang Valley. Today, the

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company has grown into a multifaceted and well-established property developer, delivering innovative, high quality properties in Malaysia.

Over the years, Sunsuria has gained recognition as one of the leading property developers in Malaysia, winning accolades such as Property Insights Prestigious Developers Awards (PIPDA) 2018 for Best Office Development, Best Small Homes Development for Bell Suites

by Starproperty.my Awards 2018, CHT Pursuit of Excellence Developer Property Award 2018, Highest Returns to Shareholders Over Three Years (Property) at The Edge Billion Ringgit Club Corporate Awards 2017, The Edge Top 30 Property Developers Award 2016-

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2017, Best Township Development by iProperty.com Malaysia People’s Choice Awards 2016 and Best Sustainable Township Development 2016 by Property Insights.

One of Sunsuria’s latest project, with an estimated GDV of RM1.4 billion, is Sunsuria Forum in the township of Setia Alam. Phase 1 of Sunsuria Forum consists of retail shops and small offices, while Phase 2 comprises a lifestyle mall, serviced apartments and SOHO Suites.

Sunsuria Forum’s commercial component includes a 31-storey tower of 346 corporate office units that features a unique creative working space called The Forum (6,200 sq ft in size), with facilities such as business lounge, open spaces for community activity and facilities such as a BBQ area, yoga deck, community pod, jogging track and swimming pool, with hopes to facilitate more community sharing, interaction and socialising among all occupants of the development.

WORKING RELATIONSHIP WITH MRCA

In addition, Sunsuria Forum’s Street Mall is poised to tantalise tastebuds with the presence of F&B retail partners such as anchor tenant Village Grocer, Baskin Robbins, Subway, Secret Recipe, Tokyo Teppan, Tokyo Don, Alibaba & Nyonya, Tealive, Double Happiness Sekinchan, Artelier Coffee and LN Fortunate Coffee.

The Street Mall will also house a Forum Food Hall, offering more varieties of food to satiate the palate.

Besides F&B outlets, other retailers set to open at the Street Mall include Focus Point, Caring Pharmacy, Signature Kitchen, 19 Hair Lounge and Nufa Aesthetic. The completed Street Mall is currently in the process of being handed over to lot owners, with retailers set to open for business by Q1 2019.

In securing some of the retailers, Sunsuria has worked with MRCA, which ties in with the developer’s philosophy of customer success; to ensure that the place thrive as a well-planned location with guaranteed decent cost maintenance to the owners.

“As a developer, we look into conceptualising and looking at the future of the possibilities and outcome of the location in order to make the place more appealing to customers.

“Sunsuria Forum lifestyle street mall aims to be the new up and coming

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F&B hub in Setia Alam. It carries good and strong F&B retail choices for the community of Setia Alam and also for the upcoming residents of our launching residentials (SOHO and serviced apartments) and corporate office workers,” said Tan Sri Ter. On the collaboration with MRCA, he said: “We are privileged to have a good relationship with many key members of MRCA who are also smart and sharp investors in property.

Therefore, some of the big retailers who believed and envisioned the proposition of Sunsuria Forum actually invested in our properties. We are confident with MRCA’s good and reputable brand and through our relationship with MRCA, we gained experience and knowledge sharing in making the Forum a better place for the community.

“In line with the philosophy that we believe in which is ‘creating customer success’, we are confident by working hand-in-hand with MRCA members who are also smart investors and businessman, Sunsuria Forum shall be a successful commercial hub in Setia Alam.”

The retail lifestyle mall will be offering child enrichment centres and day care services to fulfil the convenience and peace of mind of the working professionals and young families in the surrounding neighbourhood communities including occupants and potential working population in Sunsuria Forum Office development. The lifestyle mall will also be bringing in contemporary F&B dining, banquet hall, shopping amenities and more.

SUCCESSFUL PARTNERSHIPS

For the retail industry, having a great partnership with mall management is vital to ensure success in the long term.

To do that, Sunsuria believes in the power of place-making – investing in promoting the place as a place-making spot, driving footprints and awareness to sustain the tenants’ operations and businesses in a long run.

The team at Sunsuria has conducted studies and research with place-making consultants (i.e. place-making consultant from Project for Public Spaces based in New York) to ensure the places the company develops can drive foot traffic in a sustainable manner.

According to Tan Sri Ter, active collaboration with retailers in all forms of partnership depends on the themes and objectives of its retail marketing campaigns.

Among the points are: • To engage with the community as venue host sponsorships, providing an opportunity for the community to share, showcase and network.

• To plan and curate attraction / engagement towards the organic behavioural and lifestyle of today’s youth by adapting towards their new lifestyle patterns. In short, a signature “hotspots” or “hangout” space for the youths.

• Adopt the culture in celebrating success and sharing case studies to promote motivation and encouragement through active communication and engagement with the retailers.

STANDING OUT IN SETIA ALAM

“We believe that there are still ample of opportunities for F&B expansion in Setia Alam, apart from the popular and famous F&B retailers, Sunsuria Forum is angled to provide different and unique mix of food varieties and cuisines to pamper the taste buds of the surrounding communities.

“The retail lifestyle mall will be offering child enrichment centres and day care services to fulfil the convenience and peace of mind of the working professionals and young families “The malls and retails in Forum are also to serve the upcoming occupants and potential working population in Sunsuria Forum office development.

We believe the concept of Forum is different from the usual malls in Setia Alam to provide a different experience,’ said Tan Sri Ter, when asked on the feasibility of his project in Setia Alam.

ENGAGEMENTS OUTSIDE OF WORK

As a prominent figure in the Malaysian business community, Tan Sri Ter holds many leadership positions in business associations. He is the President of the National Chamber of Commerce and Industry Malaysia (NCCIM), The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and The Chinese Chamber of Commerce & Industry of Kuala

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“As a developer, we look into conceptualising and looking at the future of the possibilities and outcome of the location in order to make the place more appealing to customers.�

- Tan Sri Ter Leong Yap, Sunsuria Bhd Founder and Executive Chairman

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SUNSURIA’S TALENT DEVELOPMENT

Lumpur & Selangor (KLSCCCI). He is also a member of the Malaysia-China Business Council, Director of the Xiamen University Malaysia, Honorary President of the Young Malaysia Movement (YMM), Committee Member of the China Overseas Exchange Association, Member of the World Chinese Entrepreneurs Convention (WCEC) Advisory Committee, Vice-Chairman of Hin Hua High School, Vice-Chairman of Pin Hwa High School, Director of Kuen Cheng High School and Chairman of the Board of SJK(C) Sunsuria.

“I do it simply out of my love for the country that has enabled me to contribute to the business community.

It also gives me an opportunity to work closely with government bodies in making our country better.

“It is not all shop talk. You are able to have genuine friendships through shared interests and hobbies,” he said.

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Seeing that the events organised by these business associations are geared towards networking opportunities, being a member helps “build relationships with partners across many industries; help each other succeed”.

“You get to be constantly updated with latest developments, especially from key decision-makers and industry experts. Through this associations, we fund a think tank group that provides continuous analysis report every quarter in order to summarise views to the government.

“And lastly, it lets me make an impact and contribute to causes greater than ourselves (e.g. national unity, helping the needy, etc). CSR contribution to the society such as scholarship, education funds, flood relieve to help the flood victims and so on,” said Tan Sri Ter.

Since Tan Sri Ter sees education as an important aspect in life and his business, he takes talent development seriously. He said that the focus of talent development should not only be on work-related competencies, but also on behaviour and character (e.g. integrity, reliability, committed, progressive, respectful).

“One of the examples we have for talent development is cultivating the habits of self-improvement and continuous learning through a monthly training which we called it Learning Saturday (happens one Saturday in a month),” he shared.

“Succession planning – emphasis on grooming and coaching secondliners, is crucial in building a sustainable business.”

At Sunsuria, the top management plans, reviews and lists down action plans to achieve a dream team, which then leads to being a progressive company that the employees can take pride in; to be valued and respected by all stakeholders.

Recently, Sunsurias has signed an MOU on internships and industrial placements with Xiamen University Malaysia, which will provide students with work experience and prepare them for their future career.

“We also would like to cultivate values of giving that especially impacts the underprivileged groups such as orphans, United Nation School students and providing donation to the needy,” he said.

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Promise of Greater Growth

The MRCA 2018-2020 council members were sworn in amid great fanfare and formality,

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lthough there were no fireworks that night, the Imperial Ballroom at One World Hotel, Petaling Jaya, lit up many times, thanks to the singing, dancing and, the highlight of the night, the awards ceremony and the swearing in of the new MRCA 2018-2020 council members.

Themed An Evening at the Musicals, the soiree was graced by Datuk Seri Saifuddin Nasution bin Ismail, Minister of Domestic Trade and Consumer Affairs who represented Deputy Prime Minister Datuk Seri Dr Wan Azizah.

In his speech Datuk Seri Saifuddin said the government is committed to creating a business-friendly environment for the retail fraternity.

He also stressed on the importance of digital technology in retail, and

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members embrace this technology in their businesses.

More than 1000 guests from the various retailing and retail-related industries attended the celebration.

Other VIP guests included the various patrons, advisors, and members from the previous term.

There was an air of optimism in the room conveyed by the promise of a new Malaysia coupled with the solid line-up led by Datuk Seri Garry Chua, who was elected as MRCA President for a second term based on his sterling achievements and contributions towards the retail and franchise industry.

The new council members pledged to work for the growth of the retail and franchise industry, focusing on retail digitalisation. “The previous years have been an enormous journey for all members and the Council who have achieved tremendous success. The exco and council members have worked hard to set high standards and benchmarks to ensure that MRCA will always be on top in serving our members,� said Datuk Seri Garry.

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“I am honoured to be re-elected as the president, and I believe that with the expertise and effort from the new line-up of council members, MRCA will achieve growth in the near future.”

Between 2016 and 2018 MRCA membership increased from 290 to 450. In a recent interview Datuk Seri Garry said the association is targeting a 30% growth for the retail and franchise industry by 2020. This is to be driven by the worldwide expansion of local Malaysian brands.

Datuk Seri Garry said the MRCA also has close collaboration with various associations such as PIKOM, or the National ICT Association of Malaysia, Malaysia Digital Chamber of Commerce, the Association of Chain Franchise Promotion Taiwan, Malaysia Business Council of Cambodia, Malaysia Business Chamber of Vietnam and Hong Kong Malaysia Business Association.

“These organisations are related to MRCA in a way and in case any member wishes to explore business opportunities in these countries, our relationships can help in terms of connectivity,” he said.

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GUESTS LAUD MRCA’S GALA EVENT “It is good to meet up with friends of the industry in an event such as this.

This is a good place for networking.

There are many high profile people and well-known brands here.”

- Bernard Hay, CEO/Internet Coach, Asia Internet Marketing Academy Sdn Bhd “I have always looked forward to this event. It is well-planned. We are like family members here, no status.”

- Lisa How, Corporate Sales Manager, Manage Cards Sdn Bhd “This year’s event is a little different from the previous events. There are more categories for the awards. Also, the installation ceremony is more formal. We had a smooth elections and the members are happy with the new team. Besides this, the night is all about meeting new people and catching with old friends of the industry.”

- Dato Bruce Lim, Executive Director, Skills Johor Sdn Bhd

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“A very glamorous event. There is a good mix of guests from the youth to senior corporate people. Here the young meets the old and vice versa. The council members were not just sitting down and dining, they were on their feet singing and entertaining the crowd. The Who’s Who in business is present but tonight we are all friends.”

- Fione Tan, President and CEO, eOneNet.com Sdn Bhd “We look forward to this yearly gathering. The focus is on celebrating our entrepreneurs.

Where the new committee is concerned, we expect more activities, and more collaboration with our sister chapters in other states. Besides this, we are looking forward to working with the new government for a wellrounded retail sector.”

- Michael Liew, Business Director, Marrybrown Sdn Bhd

Special Awards for MRCA Members

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COMPANY NAME

AWARD TITLE

Bentley Music Sdn Bhd

Professional Sound Specialist

Bonia Corp Bhd

Prestigious Retailer Award

Caring Pharmacy Retail Management Sdn Bhd

Most Sterling Achievement Retailer Award

Ecart Services Malaysia Sdn Bhd (Lazada)

Largest E-market Place Award

Focus Point Holdings Bhd

Largest Optical Chain in Malaysia

Gintell (M) Sdn Bhd

Most Pinnacle Retailer Award

Golden Scoop Sdn Bhd (Baskin Robbins)

Most Absolute Retailer Award

Hai-O Enterprise Bhd

Leading Traditional Chinese Medicines

Hap Seng Star Sdn Bhd

Most Prime Retailer Award

Manjit Singh Sachdev, Mohammad Radzi and Partners

Longest Serving Advisor

Maxis Bhd

Most Limelight Retailer Award

Mydin Mohamed Holdings Bhd

Largest Hypermarket Chain in Malaysia

Osim (M) Sdn Bhd

International Healthcare Brand

Quill Group of Companies

Most Commercial Buildings

Senheng Electrical (KL) Sdn Bhd

Largest Distribution of Electronics in Malaysia

The Store Corp Bhd

Largest and Oldest Supermarket and Department Store Chain in Malaysia

Sushi King Sdn Bhd

Most Impactful Retailer Award

99 Speed Mart Sdn Bhd

Most Outstanding Retailer Award

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MIRF, Catalyst for Retail & Franchise Industries The 3rd instalment of the Malaysia International Retail and Franchise Exhibition (MIRF 2018) staged at the Kuala Lumpur Convention Centre reflected a growing retail industry that saw a 20% increase in exhibitors participation.

ailed as a success, the country’s biggest retail and franchise expo saw150 exhibitors taking part in the exhibition comprising 300 booths for local and 35 booths for overseas exhibitors. During the opening ceremony MIRF was awarded by the Malaysia Book of Records as Malaysia’s Largest Retail and Franchise Expo.

The three-day event, from July 26 to 28, was officially opened by the Datuk Seri Saifuddin Nasution Ismail, Minister of Domestic Trade and Consumer Affairs. It attracted more than 25,000 visitors from 11 countries and targeted a revenue of RM70 million.

Datuk Seri Saifuddin said that business confidence in Malaysia leapt 24 percentage points to 52% in the second quarter of this year, from 28% in the first quarter.

“We have a highly competitive business and retail scene,” he said at the opening of the MIRF. “The franchise industry, meanwhile, offers a lot of opportunities for entrepreneurs. The franchisor’s experiences and solutions are documented, the products are

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Datuk Seri Saifuddin Nasution Ismail, Minister of Domestic Trade and Consumer Affairs launching MIRF 2018.

known, the franchisee has only to learn and implement the system.”

He said the franchise industry is expected to contribute RM35 billion to the gross domestic product (GDP) by 2020. Last year it contributed RM27.7 billion or 3.4% to the GDP. Until May 30 this year, there were 863 franchise companies registered with the Ministry.

About 40% of these were from the food and beverage sector.

The government’s role, he stated, is to create business-friendly policies and to be a facilitator to the industry. “The industry players are the enforcement agents for government policies. The government creates policies but these policies will not go anywhere without industry players.”

MRCA President Datuk Seri Garry Chua said that MIRF’s aim is to help develop business opportunities in

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Southeast Asia, particularly Malaysia, through the profiles of franchise, retailer, technology and e-commerce.

MIRF acts as an excellent avenue for businesses to meet and match. “We have raised the bar by hosting MIRF 2018 at KLCC and we are expecting a positive growth for the retail and franchise industry. MIRF is a driving factor for the industry,” he added.

The exhibition served as a platform for local and international exhibitors to interact and explore business matching opportunities locally and globally. It was also an opportunity for cross-border retail expansion especially for those seeking to expand their business overseas.

MIRF 2018 Organising Chairman Raymond Woo concurred. “Themed Platform for Growth, the expo is a catalyst of growth for retail and franchise businesses to expand in terms of revenue, and also to shape and cultivate new business models and innovative strategies,” he said.

Moving with the times, the event also saw a sharp focus on digitalisation with ways of transaction and customer engagement. The emergence of e-commerce industry recently has revolutionised the traditional brick-andmortar businesses globally as well as bridging the gap between business and technology.

“We are venturing into digitalisation which goes hand-in-hand with the current purchasing trend from the consumers. It also looks at manpower issues which require innovation. We are blessed to be witnessing the evolution of technology by utilising various functionalities and I am positive that the platform we are creating will ensure a positive growth for the industry,” he added.

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The MIRF international pavilion participants from 11 countries were Taiwan, the US, Chile, Indonesia, Philippines, Singapore, Australia, New Zealand, Finland, the UAE and South Korea. Raymond Woo also thanked the sponsors of the event and said that MIRF 2019 will be held at KLCC on July 18-20.

Exhibitors from various sectors took the opportunity to showcase their latest innovations. Fusionex launched its latest e-commerce solution, “SME for You�, which targets small business owners. This application is aimed at helping the small business owners gain a footing in the diverse and competitive e-commerce marketplace.

Mah Sing Group reinvented customer experience by introducing the Sensa Residence@Southville City via a walkthrough video where customers were able to experience the development even before it was built while TM showcased its vast array of connectivity offerings such as the Internet of Things and Smart Services.

Also included in the expo was a Business Matchmaking event which was jointly organised by MRCA and the Association of Chain and Franchise Promotion, Taiwan (ACFPT). The Biz Matchmaking served as a trade link between Malaysian suppliers and

buyers and top-rated Taiwanese suppliers.

It was aimed at providing more effective business opportunities for both parties as well as develop a more convenient platform to create a winwin business opportunities. Several Taiwanese companies took part in the session where they introduced a range of products such as machinery equipment for soy mile, homemade drinks, Taiwanese fried chicken, shaved ice and snacks, among others, to potential Malaysian clients.

MIRF 2018 was sponsored by Mah Sing (Platinum sponsor), RHB (Gold sponsor) and TM (Gold). Supporting partners were Malaysia Convention & Exhibition Bureau, Ministry of Tourism and Culture, Secretariat for the Advancement of Malaysia Entrepreneurs, Commerce Development Research Institute, Hong Kong Trade Development Council, The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM), The National ICT Association of Malaysia (PIKOM), Asiawide Franchise and Global Creative Media Agency (GCMA).

The exhibition was endorsed by the Ministry of Domestic Trade, Cooperatives and Consumerism and Malaysia External Trade Development Corporation (MATRADE).

NETWORKING NIGHT

In conjunction with MIRF 2018, MRCA also organise a networking dinner on at Ballroom 2, KLCC. This event was a catalyst for exhibitors to interact and explore business opportunities locally and globally.

The event kicked off with a special tour of Hall 5 and 6 by Guest-of-honour Deputy Minister of International Trade and Industry, YB Dr Ong Kian Ming. The party was then led to the ballroom where MIRF 2018 Organising Chairman Raymond Woo made his welcome speech.

During dinner the guests comprising more than 150 local and international exhibitors including Maxis, RHB Bank, Mah Sing Group, Old Town White Coffee, Marrybrown and others, were entertained with live band performances.

The event was hailed as a success and guests had ample opportunities to further mingle and seek retail and franchise prospect in a relaxed atmosphere.

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EXHIBITORS HAIL MIRF 2018 A SUCCESS

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MARRYBROWN

NUVEND

Marrybrown Sdn Bhd Group CEO Dato Joshua Liew, who has participated in every MIRF exhibition to date, said this year’s event is a much bigger show.

“The visitor profile is different in KLCC compared to the previous location at MidValley. At MidValley we saw many shoppers walking in. Here we are seeing more business and international people. So I would say the response is good this year,” he said.

He also gave the exhibition a thumbs up because of the variety of exhibitors. “Besides retailers and franchisers, there are also businesses that support these industries such as backend and frontline solutions. So for us it is not only a one-way flow of traffic but two ways. We can meet potential franchisees as well as our partners, such as Coke and menu screen supplier LG, for meetings.

Marrybrown has 152 restaurants in Malaysia. It also has 500 restaurants in 15 countries.

Nuvend is a turnkey solution for the food vending business.

The company does hot box such as ready meals, frozen food such as ice-creams, cheese cake and milkshakes as well as high technology vending machines that use QR codes and are cashless.

“Vending machines are a growing trend. Businesses do not require staff or a large overhead to run this business compared to a restaurant,” said Jess Lin, Director.

Nuvend provides the option to rent or buy a vending machine. It also allows free on-site vending machine at workplaces, shopping malls, fitness centres, university and office building. “This is at no cost, they just need to provide space and power point, while machines sales in on a profit sharing basis.”

CAFE CAFE GLOBAL

GLORIA JEAN’S COFFEES

Based in Ontario, Canada, Cafe Cafe Global is a premium coffee vending dealership. Unlike other coffee vending machines Cafe Café’ freshly grinds the coffee beans when making a cup of coffee.

It offers fully customisable programming, 10 direct selection buttons, separate whipper chambers to eliminate cross-contamination of products, automatic rinse and cleaning cycle and programmable advertising display.

The company’s sales and marketing personnel were on hand to introduce the vending machine to visitors. They also offered visitors a place at a free seminar to learn more about the business.

Gloria Jean’s Coffees is growing at a rate of 10-12 outlets yearly. By mid-2018 it had already achieved half of its target.

Che Ishak Che Khalib, Head, Support Division, said the company was invited by MRCA to participate in the exhibition.

“Many of our franchisees are Bumiputra. This is an excellent venue to meet a wider pool of potential franchisees,” he said.

“We expect to receive many queries and meet new entrepreneurs. We encourage interested parties to come to our coffee university. After 2 weeks of training they will be certified.” He said that it takes about two months, after enquiry, before a store can be set up. It is important, however, to secure a good location.

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SATO

HERFY FOOD SERVICES COMPANY

Barcode printers Sato Malaysia Sdn Bhd finds the MIRF exhibition a good show as it houses a large number of retailers. “Retail, and food and beverage are our main industry. We supply software as well as a technical support to this industry,” said Marketing Executive Kalaivani.

Barcodes store many useful information for producers, retailers as well as consumers. According to Kalaivani, barcodes can record a lot of information in a very small space - production time, frozen, chill and cook time and time to discard, among others.

Herfy Food Services Company is expecting brand exposure from its participation at the MIRF 2018. Based in Riyadh, Saudi Arabia, the company is the top burger chain company in the kingdom. Herfy is also known for its meat processing and bakery businesses.

“We provide support for our franchisees. They may source the burger patties locally, provided we approve the production plant. They also have to buy our sauces,” said Louay Ajam, Marketing and Advertising Assistant Director. The company produces BBQ, mayonnaise, ketchup and garlic sauces.

MAXIS

THE TAIWAN PAVILION

Maxis Berhad displayed its easy-to-use range of eCommerce, payment, inventory and marketing solutions called ONERetail at the exhibition. “These are solutions for SME businesses,” said SME Sales Enterprise Affalina.

The solutions can help entrepreneurs expand into digital channels, reach more customers and make smart data-driven decisions. “Our solutions are in demand at the moment at companies strive to digitalise their businesses.

Another area where ONERetail can support customers is our mobile portable payment system which runs on Bluetooth technology,” she said.

The Taiwan Pavilion returned this year after a resounding success at last year’s exhibition. Taiwan External Trade Development Council, Project Manager, Yvonne Lee, said this year’s pavilion hosted 10 companies and more than 10 wellestablished brands including desserts, teas, fried chicken, point-of-sales manufacturers, pastry, dim sum, croissant and cereals.

“Some of these brands are already well-established in the US, UK, Singapore and Indonesia. Also Taiwan is known for its teas, sweets and fried chicken. Because of this we get a lot of enquiries from interested parties,” she said.

HASSANI GROUP OF COMPANIES Hassani may not sound familiar to most Malaysians but the company has been working with Mydin, the hypermarket and supermarket chain, for two years.

Based in Dubai, the family-owned company produces and retails pasta, ketchup, chilli sauce, tomato puree, canned beans, juices and cake mixes. Managing Director, Mahmood Hassani said, “We were here at last year’s exhibition and found it to be very good. So we are back for more interaction with Mydin. We are also receiving lots of queries.”

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Taiwan Expo 2018 in Malaysia Ends On A High Note The three-day Taiwan Expo 2018 in Malaysia ended successfully attracting more than 230,000 visitors and generated about RM202.4 million (NT$1.5 billion) in business opportunities. eld at the Kuala Lumpur Convention Centre, the Expo, themed “Connect Taiwan, Connect the World” featured 12 theme pavilions and eight exhibit areas such as Smart City, Green Tech, Healthcare, Halal Taiwan, Taiwan Lifestyle and Tour Taiwan.

There were 250 booths by 200 Taiwanese companies that showcased an exciting mix of products including Taiwan’s internationally renowned bicycles, intelligent robotic arms, exquisite gifts, delicious food and halal products, among others.

This year’s event also received the

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support from 17 trade organisations in Malaysia as stakeholders looked forward to bringing the best of Taiwanese technologies and products to Malaysia to form strategic partnerships with Malaysian counterparts.

Taipei Economic and Cultural Office in Malaysia representative Anne Hung said Taiwanese investors view doing business in Malaysia to have several advantages such as market openness, sound infrastructure and investment policies, multi-lingual workforce, political stability and a gateway to the rest of the region, all of which have attracted them to invest in Malaysia since the 1990s.

International Trade and Industry Ministry Senior Director of Bilateral Economic and Trade Relations Datuk Bahria Mohd Tamil said that last year, Taiwan was Malaysia’s sixth largest trading partner with a total trade of US$18.3 billion. Among ASEAN countries, Malaysia was also Taiwan’s second largest trading partner. This trend continued from January to August, where exports to Taiwan rose by 21.2% to US$15.5 billion. Taiwan is also Malaysia’s fifth largest investor in the manufacturing sector. As at June 2018, a total of US$5.8 billion worth of investments have been implemented

At the Taiwan Expo 2018: Datuk Albert Chiang, former President of MRCA, (seated at right) with representatives from Taiwan.

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Nur Khairunnisa Abd, the 200,000th visitor to Taiwan Expo receiving her new Giant bicycle.

Taiwan’s halal cosmetic products were a big hit with visitors.

from 1,600 manufacturing projects, which generated 221,319 employment opportunities.

Cultural exchanges between Malaysia and Taiwan is strong and the Taiwan Tourism Pavilion was swamped with visitors who snapped up brochures. As expected, food sampling was a huge hit with visitors and the response to the Taichung World Flora Exposition to be held in November was overwhelming.

The Taiwan green products pavilion was tailored to the needs of Malaysia’s green industry development and companies such as Queen Yun Green Power Technology Co Ltd managed to

attract buyers to their energy-saving and heat-insulating tiles.

The Brizon bicycles also caught the eyes Datuk Bahria Mohd Tamil and Malaysia-Taiwan Trade Federation Association president Datuk Seri Tang Ying Lik. Also popular among the visitors to the expo was the Halal Taiwan Pavilion which saw many participating companies doing brisk business.

A total of five seminars and five peripheral events were held in conjunction with Taiwan Expo 2018.

The e-commerce seminar attracted 50 Malaysian e-commerce operators, including influential companies such as

MCIL Multimedia Sdn Bhd and popular platform 11 Street to discuss potential future working relationship with Accupass. The highlight of the event Taiwan Excellence, brought together many of Taiwan’s most prominent ICT companies and received a steady stream of visitors. The e-sport arena, on the final day of the Expo, attracted 30 competitive gamers as they battled it out in the cyber arena.

The 200,000th visitor to Taiwan Expo, Nur Khairunnisa Abd, was presented with a new Giant bicycle. The Expo was co-organised by the Bureau of Foreign Trade and the Taiwan External Trade Development Council.

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Alibaba Business School Initiates Global E-Commerce Talent Network Network will enhance teaching and skills developments around e-commerce to increase opportunities for young entrepreneurs and SMEs. libaba Group Business School recently set up the Global E-Commerce Talent (GET) Network in collaboration with universities and training institutions from Malaysia and around the world with the aim to educate and equip individuals with the skills needed for e-commerce success in the digital economy.

The GET Network builds on Alibaba’s GET program to offer a full education ecosystem to network members.

Malaysia is one of the founding members and makes up the largest

A

number of educational institutions from a single country which includes the Ministry of Education Malaysia, MDEC and 18 public and private universities, colleges and training agencies within the network.

The initiative was formalised recently at a ceremony officiated by Yang Jun, Counsellor of the Ministry of Foreign Affairs, PRC, Shen Yiqin, Governor of Guizhou Province, Dato Lim Jock Hoi, Secretary-General of ASEAN and Brian Wong, Vice President of Alibaba Group representing Alibaba Business School.

The founding members of the

network also signed an Article of Authorisation. Witnessing the event were representatives from participating universities as well as Abdul Aziz How Abdullah, Counsellor, Embassy of Malaysia in Beijing, Brian Wong of Alibaba Group and Dr. Sophon Napathorn, Deputy Minister for Education, Thailand, as well as other dignitaries.

Alibaba Business School is a university established by the Alibaba Group and Hangzhou Normal University of China in October 2008. It is currently focused on implementing

Brian Wong, Vice President of Alibaba Group (6th from left), at the Article of Authorisation signing ceremony of Global E-commerce Talent Network with founding members. From right are: Dr Charoen Chinwanit, Vice President of BUU (Thailand) , Dr Pantitra Putamanonda, Executive Assistant to the President of UTCC (Thailand), Prof Dr Choong Chee Keong, Vice President of UTAR (Malaysia, 4th from right), Dr. Joseph Lee, Vice-Chancellor of INTI (Malaysia) and Dr. Haryani Haron, Associate Professor of UTiM (Malaysia) (4th from left).

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“We are committed to addressing the shortage of e-commerce talent in important markets and, by empowering educators around the world, we have created a platform for youth and SMEs to understand and learn how to succeed in this dynamic industry.”

– Brian Wong, Vice President of Alibaba Group

Alibaba Group’s e-commerce training system which has nurtured millions of e-commerce practitioners and entrepreneurs in China and overseas.

In driving the initiative, Alibaba Business School gathered renowned universities and training institutes from across the region to jointly establish the network which will develop high-quality courses, grow teaching platforms and train teachers to empower their educational institutions to participate in the construction of the future digital economy. While the network is initially made up of institutions who have already taken part in the GET program, plans are in place to bring further members on board from across ASEAN and beyond.

The GET Program has benefitted 65 education partners and have trained more than 260 lecturers, 1,600 SMEs and almost 7,000 students. The beneficiaries are from countries such as Australia, China, India, Israel, Mongolia, Singapore, South Korea, Thailand and Turkey. The strongest demand so far is from Malaysia and Thailand where apart from Universiti Tunku Abdul Rahman (UTAR) and Burapha University (BUU), other leading universities such as INTI

“GET has helped us enhance our offering to ensure students are receiving the most relevant, up-to-date courses and learnings for e-commerce and digital business success.”

– Professor Dr. Choong Chee Keong, Vice President of UTAR.

International University, Universiti Teknologi MARA, and University of the Thai Chamber of Commerce are also among founding members of the network.

Brian Wong said that Alibaba’s mission is to make it easy to do business anywhere and the GET Network is a natural extension of that.

“We are committed to addressing the shortage of e-commerce talent in important markets and, by empowering educators around the world, we have created a platform for youth and SMEs to understand and learn how to succeed in this dynamic industry.”

Professor Dr. Choong Chee Keong, Vice President of UTAR, a founding member of the GET Network stated that as the first GET member in Asia, UTAR recognised and understood from the very beginning that the program could make a big difference for e-commerce businesses and talent in Malaysia.

“GET has helped us enhance our offering to ensure students are receiving the most relevant, up-to-date courses and learnings for e-commerce and digital business success. Given how dynamic the industry is and how quickly demands for new skills are emerging, this will be an ongoing process – particularly as Malaysia’s Digital Free Trade Zone continues to grow in importance. The GET Network will bind us even more closely together with Alibaba Group and other forwardlooking partners who understand the new e-commerce context.”

Dr. Charoen Chinwanit, Vice President of BUU added that the university has worked with both Alibaba Business School and the Government of Thailand on various initiatives to accelerate that level of digital proficiency. “The GET Network will ensure our faculty and students remain at the forefront of e-commerce

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NETWORK MEMBERS WILL HAVE ACCESS TO:

• Advice and assistance in setting

up a GET Start-up System Incubator • GET Online Learning Platforms (including course materials and multimedia learning assets) and Simulation Platforms • GET’s online community of experts • Online and offline teacher training • A chance to visit Alibaba’s headquarters

developments, and that Thailand has the talent it needs to meet the changing demands of consumers and businesses alike.”

Conducted by experts from Alibaba Business School and industry practitioners, the GET Program includes up to date theoretical and practical training for local education professionals on ecommerce ecosystem, operation and entrepreneurship, while offering a holistic view on the global e-commerce system and the digitization of national economies. Certified trainers then use the resources and knowledge acquired to integrate their learnings into e-commerce courses available at their respective institutions.

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Franchise Support The Malaysian franchise industry continues to achieve healthy growth, but not without its challenges.

ne of the challenging responsibilities of a franchise is how to develop and implement effective franchisee operational support programs. These programs have the added responsibility of meeting, and exceeding, franchisee support needs in a cost-effective and efficient manner.

This challenge is compounded by the differing needs of franchisees based on the complexity of the concept, their experience and organizations. These circumstances are also impacted by the basic tenant that “one size does not fit all”.

Enter Perbadanan Nasional Bhd (PNS), a company owned by the Ministry of Finance, but under the purview of the Ministry of Domestic Trade, Cooperatives and Consumerism. PNS provides financing, education, and advice for entrepreneurs wishing to expand the franchise business.

Even though PNS mainly focuses on encouraging home-grown franchise concepts, they are open to exploring collaboration with foreign franchise concepts. The agency’s function is to identify, acquire, launch, facilitate and encourage both local and international franchise brands.

According to its Managing Director,

O

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Dato Syed Kamarulzaman Syed Zainol Khodki Shahabudin, PNS is in existence to support the development of the franchise industry in Malaysia.

“The systems composition, industry focus, geographic dispersion, franchisee experience level, among other factors, will affect the specific nature of an effective franchisee support system.

All this needs to be taken into consideration before someone decides to franchise,” he says.

“The most effective and efficient franchisee support programs are formulated, executed and evolve based on two important factors: the franchisor’s corporate culture and the structure of the support program itself. If the franchisor focuses on the franchisee, the chances of succeeding are very high. But, if the franchisor focuses on themselves only, it can all come tumbling down.”

Effective franchisee operational support programs begin with a sense of ownership from all the disciplines that affect the development and execution of these programs.

“Firstly, select the right franchisee.

Franchisors must create an environment that establishes support programs as a priority for the organization.

The corporate culture must support

both a sense of responsibility and accountability in the execution of these support programs,” Dato’ Syed Kamarulzaman states.

The organization, he says, needs to be focused on the impact of these support programs to the success of the franchisees, the system itself and the brand.

PNS has seen more than 60 brands under its tutelage, stamping its existence in more than 60 countries.

“We are trying to take our local boys out. The Prime Minister has said that he would like to see more Malaysian food overseas,” says Dato’ Syed Kamarulzaman.

“We do not want to reinvent the wheel. There are many success stories out there, take McDonald’s for example.

Copy their franchise structure and modify it according to your needs.

You must evolve to ensure you are relevant. So, localise your product.”

Dato’ Syed Kamarulzaman promises that PNS is a place for you to achieve your dreams. Having said that, he explains that it is up to the franchisor and franchisee to take their advice and participate in the programmes offered.

“We are not in the business of forcing it down their throats, we are advisors. Many people come in with

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“Franchisors must create an environment that establishes support programs as a priority for the organization.”

– Dato Syed Kamarulzaman Syed Zainol Khodki Shahabudin, Managing Director of PNS

no capital but want to run multimillion Ringgit businesses. There are other options. Pick the right business.

Although F&B is the most lucrative, if you get it right, there are other service businesses that can yield successful incomes as well,” he says. He cites LaundryBar as an example, for winning Emerging Franchisor of the Year at the 2018 Malaysia Franchise Awards.

“The world is your marketplace.

We are here to ensure the success of Malaysia, by encouraging Malaysian businesses to strengthen themselves and do well abroad. Those who really try to localise their products, make it,” he adds.

Besides acting as a “bank” by providing loans to entrepreneurs, PNS is vested in property development and property management business. Some of its notable investment properties include Bangi Gateway in Selangor, and Betaria Business Centre in Negeri Sembilan.

The company is also invested in private companies, including listed companies such as Caring Pharmacy Group Bhd, Bioalpha Holdings Bhd, and Magni-Tech Industries Bhd. Despite being owned by the government, PNS is a self-sustaining company with resilient earnings.

“Franchising is all about sharing wealth. If you are not willing to share, then don’t do it. Wealth does not only mean money, but also experience and knowledge,” he says.

“The Prime Minister has said that if you want a business to succeed, you must have the ability to learn. It is true, we must be willing to gain knowledge at every step. And at PNS we believe that

with the right attitude, everything can be franchised, from cradle to grave.”

PNS was set up in 1969 as a wholly owned government company to carry out the resolutions at the Second Bumiputera Economic Congress. The company was put under a solid footing under the chairmanship of Tengku Razaleigh Hamzah (1970–1974) who had been the Minister of Finance from 1976 to 1984.

With the background of poor and very low participation of Bumiputeras in the private sector and industries at that time, PNS’s principle were to enter undertakings which would bring high economic returns, and when entering into joint ventures, PNS was to be the majority stockholder with controlling interest over operations.

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Larkin Junction

About SKS Group

Everything Within Reach arkin Junction is an upcoming shopping mall located beneath the 646-unit SKS Habitat serviced apartments in Larkin, Johor Bahru, Johor. With close proximity to Larkin Sentral transportation hub, the shopping mall offers superb ease of access while benefits from the ready catchment of its surrounding matured neighbourhoods.

Developed by SKS Focus Sdn. Bhd., a member of SKS Group, Larkin Junction has a lettable area of about 258,000 sq ft spreading across 5 levels. Soon to be open in 2019, Larkin Junction will deliver diverse experiences from fashion to dining and entertainment. It will be the epitome of quality shopping with exciting offerings ranging from everyday conveniences, entertainment to fast fashion, books, gadgets and F&B, a carefully curated mix of over 150 shops that will cater to working executives and neighbouring residents alike through the week.

The possibilities at Larkin Junction will never cease to amaze. This is where you can look forward to an ever-changing line up of events, celebrations and festivities at the heart of Larkin.

L

regional transportation hub with the establishment of Larkin Sentral, the largest terminal of its kind in Johor Bahru, offering bus services to not only locations within the city but also other states, as well as Singapore and Southern Thailand.

The suburban city is also equipped with plenty of public amenities such as schools, hospitals and a library. There are more than 26 different schools in the area, including Foon Yew Primary School 2, Foon Yew Primary School 3, Sekolah Kebangsaan Tanjung Puteri, SMK Saint Joseph-B and Temenggong Ibrahim Teachers’ Training Institute.

Larkin has also been earmarked for development of sports infrastructure.

The RM350-million Arena Larkin project covering 104 acres will comprise a new Johor Bahru City Council’s 7,000-capacity indoor stadium with badminton and sepak takraw courts, an aquatic centre and the Tan Sri Dato’ Hassan Yunos football stadium. It is expected to be ready by the next SUKAN Malaysia, to be hosted by Johor in 2020.

LOCATED IN HIGH CATCHMENT AREA Larkin is a matured and highly populated area with more than 16 residential precincts at the vicinity of the mall. Larkin has been long known as a key Artist’s impression of Larkin Junction shopping mall and SKS Habitat serviced apartment.

Artist’s impression of Larkin Junction mall entrance.

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Founded in 1983, SKS Group is a multidisciplinary organisation with core businesses spanning across property development, hospitality, investment holding and credit finance in Johor, Malaysia, and Perth, Australia.

SKSand Group firstofventured into Owner founder ZÉLL-V Wellness Hubmall Dato’business Sharon Foong. the with the opening of SKS City Mall Bandar Penawar in Desaru Utama, Kota Tinggi in April 2017. Stretched across 6-acre of prime land bank, the two-storey SKS City Mall comprises a food court, a wet market, anchor tenant lots, and a wide range of retail and F&B choices, to fulfil the needs of the local residents as well as business and leisure travellers during their relaxing gateway in Desaru.

SKS Group became a member of MRCA recently and its Director, Lester Ng, said that by being a part of the MRCA family will enable the company to keep abreast with what is happening in the retail environment in Malaysia. “It also gives SKS Group the opportunity to capitalise on the collective experience and resources that MRCA has achieved over the years.”

MALL OF MALAYSIA GROUP FULFILLING THE NEEDS OF RETAILERS IN MALAYSIA. CREATING ONE-STOP SHOPPING HAVENS ACROSS MALAYSIA. Mall of Malaysia Group is the creator of landmark one-stop shopping malls in Malaysia. The Group portfolio of assets include, seven shopping malls conveniently located across seven states in Peninsular Malaysia. The seven malls are KB Mall in Kelantan, Alor Star Mall in Kedah, Batu Pahat Mall in Johor, Taiping Mall in Perak, KTCC Mall in Terengganu, SB Mall in Selangor and BM Sentral Mall in Penang. This impressive portfolio has a net lettable area of over 3.5 million square feet.

The group owns, develops, manages and leases prime retail properties to prominent national retail brands in Malaysia.

Primarily, all the malls are strategically located in the central business district area of the city centre of each respective state.

These various malls were built with the objective to provide convenient and sophisticated one-stop shopping mall destinations in Malaysia. The retail tenants and anchor tenants in these malls are made up of an array of reputable brand leaders in the retail industry.

Tenants represent from a variety of categories including Hypermarket and departmental store, fashion and jewellery, cafĂŠs and restaurants, beauty and healthcare, I.T. and electrical, leisure and entertainment and others. In a bid to support small to medium entrepreneurs, Mall of Malaysia Group invites these businesses into the malls to promote local and traditional wearable and consumable products to shoppers and tourists.

In the near future, there are plans to open more one-stop shopping malls in other states. KTCC Mall in Kuala Terengganu is all set to open in 2019. Mall of Malaysia Group is working towards being the largest developer of one-stop shopping malls in Malaysia, with more plans in the pipeline to build and operate more landmark shopping malls all over Malaysia.

KB MALL

BATU PAHAT MALL

ALOR STAR MALL

TAIPING MALL

THE LANDMARK ONE-STOP SHOPPING MALL DESTINATION IN MALAYSIA

No. 328, Jalan 51A/223, Seksyen 51A, 46100 Petaling Jaya, Selangor Darul Ehsan, Malaysia.

leasing@mallofmalaysia.com.my

+603-7960 3219 ext 105

www.mallofmalaysia.com.my

+603-7960 3218

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Outlook Of The ASEAN Retail Market Despite some challenges, there are positive aspects that make the retail sector in this region one of the most remarkably flexible and exciting sectors. ecently, Sears, one the largest retailer and well known department stores in the US with a history of more than 100 years, filed for bankruptcy. Against this backdrop from the US, plus the heightening trade war between the US and China, how is the outlook for the ASEAN retail market?

Overall, despite some challenges, the outlook is positive for the retail market in the region.

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RETAIL POWERHOUSES OF ASEAN ASEAN consists of 10 countries and the retail industry powerhouses of this region are Singapore, Malaysia, Thailand and Indonesia. The focus will be mainly on these countries as the retail industry in other ASEAN countries are still at a nascent stage.

ASEAN as a Retail Bub:

1

ASEAN IS A POWERHOUSE OF ECONOMIC POWER

ASEAN with a population of more than 600 million people, is the seventhlargest economy in the world with a

combined GDP of $2.57 trillion in 2017.

It is predicted to rank as the fourthlargest economy in the world market by 2050. Its population is larger than the European Union (EU) and the United States of America (USA).

ASEAN also has a large youthful population, which makes it an ideal place for retail segments that specialise in areas such as education, fashion and lifestyle products.

2

ASEAN IS NOT A MONOLITHIC MARKET. ONE STRATEGY DOESN’T FIT ALL

One strategy fits all will not work for ASEAN as it is a very diverse market.

Each country is different and each market needs different strategy. For example, the GDP per capita in Singapore is more than 30 times higher than in Laos and more than 50 times higher than in Cambodia and Myanmar. While Malaysia and Thailand are seeing positive growth in the retail market, Indonesia and Brunei are slowing down. For a fact, the standard deviation in average income among ASEAN countries is more than seven times that of EU member states.

There is also diversity in terms of cultural, language and religion.

These factors have to be taken into consideration before any retailer enters the ASEAN market, Indonesia, for example, is almost 90 per cent Muslim while the Philippines is more than 80 per cent Roman Catholic and Thailand is more than 95 per cent Buddhist.

Malaysia is also largely Muslim with nearly 60% of its population being Muslim. Therefore, it is important for investors in the retail sector to be aware of local preferences and cultural sensitivities.

3

E-COMMERCE IS BIG IN ASEAN

One of the biggest challenges facing the brick-and-mortar stores and retail in general in ASEAN is the rise of e-commerce which will prove a formidable challenge to traditional retail segment. While e-commerce is highly-evolved in the US, Europe, and Japan, it is beginning to rapidly alter the consumer landscape in the ASEAN region.

Frost & Sullivan published a white

Some facts about the ASEAN retail market: • Retail sales in

Thailand, Singapore, Malaysia, and Indonesia is estimated to grow by an average rate of 6%.

(The Edge Market, 2018).

• These four countries

constitute about 58% of the 629 million ASEAN population in 2015. Singapore, Malaysia, Indonesia and Thailand together also accounted for 76% of the US$ 2.45 trillion ASEAN economy in 2015. Hence, the four countries together make up a significant portion of the region in terms of population and economy.

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• For these four

countries, domestic consumption is expected to increase to 75% of GDP by 2025.

(World Bank, 2016).

• Singapore,

Malaysia, Thailand and Indonesia’s GDP per capita figures are expected to achieve compound annual growth rates (CAGRs) of 5.4%, 9.8%, 5.0%, and 5.0%. (IMF, 2018).

•Countries such

as Vietnam, Laos, Myanmar and Cambodia have the lowest labour cost.

35 Left: MRCA Deputy President Datuk Vincent Choo, was one of the panelists who discussed the topic “Where is Retail in the Region Heading?” at the Sri Lanka Retail Forum 2018 held in Colombo, Sri Lanka.

Below: Alyssa Choo, Datin Cynthia Cheong, Datuk Vincent Choo and Mr Infiyaz Mohammed at the Sri Lanka Retail Forum.

Datuk Vincent Choo with the panel speakers and members of the Sri Lanka Retailers Association and Ceylon Chamber Of Commerce council members.

paper titled Overview of the Retail Sector in ASEAN in June 2016 which covers Singapore, Malaysia, Indonesia and Thailand. It states that, “The accelerated pace at which consumers are adopting digital technologies to purchase products and services online continue to confront major retailers with the challenge of aligning online and brick-and-mortar businesses.

“With a relatively young population, growing internet and smartphone penetration and a wide array of payment options, the ASEAN region offers lucrative opportunities for e-commerce growth. In 2014, the region had 199 million Internet users (39% penetration), and is forecast to rise to 294 million users (48% penetration) by 2017.”

• According to this report, Indonesia is the largest e-commerce market in ASEAN, driven by its huge population (fourth largest in the world) and increasing internet connectivity.

According to DBS, Indonesia overtook Singapore and Thailand in 2014 to emerge as the largest e-commerce market in ASEAN recording online sales worth US$1. 1 billion. E-commerce is expected to expand the fastest in

Indonesia, driven by the rising middle class in the country. By 2018 Indonesia is projected to be home to more than 100 million mobile users further enabling the growth of e-commerce in the country.

• The reason for the huge popularity of e-commerce in Indonesia compared to countries with better Internet connectivity like Singapore and Malaysia is due to its large land mass which is fragmented. This acts as a hindrance for consumers to access retail points which is why they prefer to shop online.

• Singapore on the other hand, despite having a very high internet penetration, only 3 to 4% of total retail sales were done online. This may be due to the convenience of well-developed conventional retail stores which are easily accessible through a convenient public transport.

Although e-retail is expected to grow in Singapore, the expected growth is the slowest in the region.

• Malaysia is embarking on an aggressive programme to expand high speed broadband among its population especially in the urban areas. This is expected to increase the

growth of e-commerce among the population.

4

ASEAN IS HOME TO MANY GLOBALLY COMPETITIVE COMPANIES

ASEAN is home to 227 of the world’s companies with more than $1 billion in revenue, or 3% of the world’s total income. Singapore for instance, ranks fifth in the world for corporateheadquarters density and first for foreign subsidiaries. Consistent with this growth, foreign direct investment in ASEAN has boomed, surpassing the levels of EU. In fact, Indonesia, Malaysia, the Philippines, Singapore, and Thailand attract more foreign direct investment than China and India. In addition to attracting multinationals, ASEAN has become a launching pad for new companies; the region now accounts for 38 per cent of Asia’s market for initial public offerings.

5

ASEAN IS UNITED HENCE EASIER TO PENETRATE THE MARKET

Despite their distinct cultures, histories and languages, ASEAN countries share a common goal. It focuses on

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prosperity and development as a whole rather than just one nation. In 2015, ASEAN launched the ASEAN Economic Community (AEC) which promotes a seamless goods, services, capital, skilled labour and communication.

The urbanisation and consumer growth in ASEAN’s cities are booming.

With 22 per cent of ASEAN’s population living the in metropolitan cities.

Consumers are increasingly moving online, with a heavy mobile penetration and Internet penetration across the region. Its member states combined makes up the world’s second-largest community of Facebook users, behind only USA. All these make ASEAN the hub for retail venture.

Meanwhile, MRCA Deputy President, Datuk Vincent Choo represented the association at the recent Sri Lanka Retail Forum 2018 in October, held in Colombo, Sri Lanka.

He was one of the five panelist who discussed the topic “Where is Retail in the Region Heading?” at the event. Other panelists were Kumar Rajagopalan, CEO, Retailers Association of India; Patrick Chong from the Singapore Retailers Association; Komsan Kwunchaithunya, Vice President,

Above: Datuk Vincent and Datin Cynthia Cheong with former Prime Minister of Sri Lanka, Ranil Wickremesinghe.

Right: Datuk Vincent with Mr Hussain Sadique, Founder President of Sri Lanka Retailers Association.

Thailand Retailers Association; Rajan De Silva and CEO Success Coach & Team Leadership Specialist. The moderator was Shiran Fernando, Chief Economist, The Ceylon Chamber of Commerce.

They provided valuable insights into the region’s retail spending, changing consumer preferences and

CHALLENGES AHEAD

Despite the positive outlook, there are some challenges ahead.

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Rise in Operating Costs

This is a problem especially in highly urbanised and developed economy like Singapore. The Frost & Sullivan report states that the rental costs for prime retail space in Singapore have continued to grow by a compound annual growth rate (CAGR) of about 1.2% in the past 2 years.

This is also a problem faced by retailers in Malaysia and Thailand in the prime shopping areas of their cities like Kuala Lumpur, Penang and Bangkok. Retailers are also grappling with the rising business costs such as high rentals or labour costs.

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Drop in Number of Tourists

Tourists are one of the major factors that boost the retail sector of any country.

Thailand and Singapore are known to be popular shopping havens in the region, with visitors to these countries contributing substantially to the retail spend in the respective markets. In 2015, as per Singapore Tourism Board, tourists coming to the country spent about S$4 billion on retail shopping.

Tourism Malaysia revealed that in 2017 Malaysia received around 25.9 million tourists who

how structural industry shifts are taking place and their impact on the future of the industry in their respecting countries and the region as a whole. The forum also provided an opportunity for them to share innovative best practices and forge collaborations to take the retail industry to greater heights.

contributed RM82.2 billion to the country’s revenue. This number showed that tourist arrivals dropped by 3% in terms of numbers. Thailand remained the number one visited country in the region with 35.3 million tourists in 2017.

In recent years, Malaysia has seen a plateauing in the growth of visitors.

Thailand and Singapore had experienced a dip in tourist arrivals in 2009 and 2014 due to economic slowdown in the world and China.

have bigger disposable incomes. It is the urbanised population which is the main indicator of the demand base in city malls.

Rural population, which also contributes to consumption, is unable to contribute to organised retail demand because it has lesser buying power. Among ASEAN countries, Singapore is the only fully urbanised economy while Malaysia, Thailand and Indonesia continue to experience rapid urbanisation.

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Lack of Urbanisation In Some Countries

Urbanisation is one of the major drivers for organised retail sector demand. This is because those who work in urban areas generally earn higher salaries and

Rise of E-Commerce

E-commerce has the potential to be the rival for physical stores and this is something retailers need to be aware of before they find themselves becoming irrelevant.

In line with shaping retail digitalization initiatives for the nation and region, GINTELL (M) Sdn Bhd officially launched the Rest N Go application recently. he event was officiated by the Minister of Domestic Trade and Consumer Affairs, Datuk Seri Saifuddin Nasution Ismail accompanied by the Managing Director of GINTELL (M) Sdn Bhd, Dato’ Goh Cheh Yak, the President of MRCA, Datuk Seri Garry Chua, the President of ARFF, Dato’ Dr. Jayles Yeoh and The Director of Lifestyle And Life Sciences of MATRADE, Abu Bakar Yusof.

The launch was aimed at leveraging on the advancement of technology by venturing out to E-wallet system where the users of the Rest N Go stations are now able to download the apps and perform ‘cashless’ transactions nationwide.

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Users can also enjoy the massage with quick and easy payment methods via credit card, debit card, internet banking, Boost and others. The new Rest N Go app will enrich customers’ experiences by adapting the latest innovation of technology. Users can enjoy over 8000 units of massage chairs in various locations including shopping malls, hypermarkets, airports, bus terminals and cinemas all across Southeast Asia.

“We are moving towards digitalization hence this will be a great start for us to support the government’s effort in cultivating digitalization in business practices.

Datuk Seri Saifuddin Nasution applauded GINTELL for its efforts in reshaping digitalization and

incorporating it in daily business practice.

“In recent years, I have witnessed local enterprises that have invested in the advancement of technology and their businesses have bloomed tremendously. This will synergise well with current global trends as well as create a more stable digital economic landscape in Malaysia.”

With this new milestone, GINTELL has been accredited by the Malaysia Book of Records by being the first Malaysian Digital Vending Massage Machine and the brand with the Most Number of Digital Vending Massage Machine. The recognition was given by Tan Sri Danny Ooi, Founder of Malaysia Book of Records to Dato’ Goh for historic records set by GINTELL (M) Sdn Bhd.

“With this new endeavour, I strongly believe that our customers will be able to perform ‘cashless’ transactions to more than 3,000 Rest N Go stations.”

– Dato’ Goh, Managing Director of GINTELL (M) Sdn Bhd

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Feature

GINTELL Launches REST N GO Application Nationwide

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Feature

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MRCA Charity Run 2018 Themed “Aim For The Best”, the fifth edition of the MRCA Charity Run is targeting 3,000 runners.

RCA is all set to organise its Charity Run for the fifth time this year on 18th November at The Place, One City, Subang Jaya. The theme for this year is “Aim For The Best” and about 3,000 runners are expected to take part. Each runner will be receive the “A” finisher medal to add to their collection.

MRCA Charity Run was initiated by former MRCA President Datuk Lee Hwa Cheng in 2014. Last year it attracted more than 2,000 runners and successfully raised RM100,000 for 10 charity homes.

The Charity Run which is a public event, consists of two categories – 10.8km and 5.3km. The 10.8km is a competitive run which consists of four sub-categories, Men’s Open, Men’s Veteran, Women’s Open and Women’s Veteran, while the 5.3km category is non-competitive and is open to both

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men and women. Registrations have officially begun and so far 1,500 runners have signed up.

William Tang, the Organising Chairman, emphasised that the Charity Run strives to raise funds for the needy.

Selected charitable bodies will be receiving cash donations from the MRCA Branding Education Charity Foundation,” he said.

The foundation was established in 2010 by for former MRCA President Dato’ Tay Sim Kim, and its objective

is to provide educational and financial assistance to those in need and to also assist other charitable activities for the betterment of the community.

William Tang also thanked the venue sponsor, eCity Hotel Sdn Bhd, and Corporate Patrons Maxis Bhd, Fusionex, Mastercard Asia Pacific Pte Ltd and Quill Automobiles Sdn Bhd for their continuous support and contributions in this event.

Interested runners can register via the RaceXAsia portal.

“Charity Run strives to raise funds for the needy. Selected charitable bodies will be receiving cash donations from the MRCA Branding Education Charity Foundation.”

– William Tang, the Organising Chairman

Super luxury brand Rolls-Royce Motor Cars recently presented a showcase of Black Badge cars at a specially prepared pavilion located in Puteri Harbour, Johor.

n public display for the first time in Malaysia was a rarely-seen trio of Black Badge cars comprising two Wraith Black Badge cars (fastback coupe) – the most powerful Rolls-Royce ever built – and Ghost Black Badge (saloon). Both models are powered by 6.6 Litre V12 twin turbo engines producing effortless power (624hp/603 hp respectively) and performance (0100km/h in 4.5 and 4.8 seconds). The presence of the Ensign Red car was a reminder that Black Badge cars need not be black.

O

The introduction to Malaysia by Rolls-Royce Motor Cars Kuala Lumpur of a permanent Bespoke family of motor cars called Black Badge is in response to the differing lifestyle requirements of an increasingly younger, more dynamic patron of luxury in the country. The Black Badge cars differ from standard models with a bolder styling, use of contemporary materials such as carbon fibre and subtle engineering enhancements, providing added performance. Customers can order from over 44,000 different colours.

Anas Zawawi Khalid, Director, Quill

A rare trio of Rolls-Royce Black Badge motor cars. L-R: Wraith Black Badge in Ensign Red, Wraith Black Badge in Dark Indigo and Ghost Black Badge in Black.

Malaysia Retailer Vol 6 No 4

39 Feature

Rolls-Royce Hosts Black Badge Weekend

Motorcars Sdn Bhd, “We are confident of a positive response to Black Badge as Malaysia offers good driving conditions and a growing customer base of successful people who are younger and dynamic.

“Malaysia has a vibrant luxury and car culture. The development of Johor’s luxury ‘hot spots’ such as Puteri Harbour and the Iskandar region, along with interest from potential customers, contributed to our decision to launch this exclusive range of cars here for the first time in Malaysia,” he said.

The Rolls-Royce Pavilion was the hub of attention for many who were new to the brand. The event was an opportunity for enthusiasts to view some highly exclusive super-luxury cars.

Feature

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Glitz & Glam at Stylo Gentlemen’s Weekend Puteri Harbour was transformed into a fashion runway filled with glitz and glam during the STYLO Gentlemen’s Weekend. he event, which ran from October 26 to 28 featured a host of seaplanes, luxury yachts, supercars, classic cars and superbikes, and a line-up of gentlemen’s lifestyle brands, including men’s fashion, accessories and many more.

The first day was marked with the Malaysia debut of Rolls-Royce’s Black Badge range which is the alter ego of the brand: edgier, darker, more assertive, bolder and more powerful.

The following day, the grand opening was filled with much glitz and glam with two fashion shows “Gentlemen of the World” by Habitat of Man, and “Saloma meets Suzie Wong” by a bevy of beauty queens.

“Our Gentlemen of the World show will be unique because it showcases a wide range of men’s fashion from rugged gear, suits, resort wear and batik by the people in the industry, apart from the male models.

“The show is meant to support and uplift our local designer brands to the international platform. They include Bon Zainal, Style Soldiers, Tarik Jeans, Rasta Batik, Carro, Amniq, Absolute Opulence, Benua, Gavroche, Havana Club, Kronoz Jeans and Kompound Goods,” said Bon Zainal, founder of Bon Zainal menswear and President of Bumiputra Designer Association (BDA).

The showstopper of the night was “Saloma meets Suzie Wong” featuring

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over 40 beauty queens from the STYLO Style Icon awardees, Miss Malaysia Kebaya, Mrs Malaysia Tourism Queen, Miss Tourism Queen International, Mrs Malaysia Superstar and other pageants.

With big hairdo’s and ponytails as well as sequined kebaya gowns and qipao gowns, all the beauty queens brought back the glamour of the 60’s.

Donning The MOD House designer wear, they slayed the runway with poise and grace.

Singing performances were provided

by UK supermodel, Sydney Jo Jackson with her smash hit, “Boogaloo” and Mrs Asia International All Nation 2017, Chilla Cha with her mellifluous rendition of popular “Shanghai Bund” song.

“It is a good headstart for STYLO because we intend to make STYLO Gentlemen’s Weekend an iconic event and boost the potential and marketability of Puteri Harbour as a

tourism destination,” said Datuk Nancy Yeoh-Reissiger, Founder and CEO of STYLO International in her welcome speech.

A key highlight of the event was the opening of the USA-based International Seakeepers Society in Puteri Harbour.

Malaysia is the second office of the society in Asia after Singapore.

Among the Guests of Honour at the grand opening were Dato Dr Ammar Abdul Gapar, Senior Director Domestic and Events, Tourism Malaysia; Tuan Haji Adib Azhari bin Daud, Mayor of Iskandar Puteri; Encik Abdul Malik bin Haji Ismail, Director of Tourism Johor; Dato’ Michael Ong, Managing Director of Rolls-Royce Motor Cars Kuala Lumpur; Professor Dr Jimmy Choo and Julian Chang, Board Member and Asia President of International Seakeepers Society.

Other activities during the 3-day STYLO Gentlemen’s Weekend included exhibitions showcasing men’s lifestyle brands, business networking for dealers, brokers and manufacturers of big boys toys as well as a forum on conservation of the seas and fashion shows.

The event was organised

by STYLO International along with Malaysia Fashion Week partnered by the Maritime International Showcase Malaysia.

Event

41

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6

2

4

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President’s Activities and Officiating Members’ Events 1. Press conference prior to the 11th edition of the MRCA CEO Night with David Morey, a world-leading strategic consultant.

2. Launch of STYLO Gentlemen’s Weekend in Johor. 3. At the launch of GINTELL Rest N Go application. 4. Distributing ang pow to residents of Rumah Ozanam Batu Arang in Rawang during Deepavali charity home visitation. 5. Giving a speech at the launch of Sunsuria Forum@7th Avenue.

6. China Wushu Association visit to MRCA office. 7. Press conference for the Charity Run 2018.

Malaysia Retailer Vol 6 No 4

Monthly Meeting

42

AUGUST 2018 Venue: 25.7 Property GalleyGamuda Land, Persiaran Oleander, Telok Panglima Garang.

SEPTEMBER 2018 Venue: Hap Seng Star, Puchong South Showroom.

Malaysia Retailer Vol 6 No 4

43

OCTOBER 2018 Venue: TM Convention Centre, Jalan Pantai Baru, Kuala Lumpur.

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BUILDING MORE THAN HOUSING

Tan Sri Dato’ Sri Leong Hoy Kum, Group Managing Director, Mah Sing Group Berhad

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Tan Sri Dr. Lim Wee Chai, Chairman and Founder of Top Glove Group of Companies

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The new and improved MALAYSIA RETAILER highlights, informs and introduces readers to trends and strategies within the retail, franchising and branding disciplines.

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FLYING IN A V-SHAPE FORMATION

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NEW MPAY-MRCA CASHBACK CARD A BOON FOR RETAILERS

MRCA-KPDNKK Charity Run 2016

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Exciting Week at MIRF 2017

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Establishing a Southern Chapter & Realising Expansion Plans

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STRENGTHENING RELATIONSHIPS

A Runaway Success

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MRCA 24th Anniversary & Crown Awards Winners

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Challenges of Globalisation & Technology and Impact On Businesses

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