Malaysia Retailer I Vol 9 No 3 I Vanilla Crepe's Nelson Liew

MALAYSIA

Vol 9 No 3 2021

WM RM9 / EM RM11

RETAIL I FRANCHISE Malaysia’s 2022 Retail Outlook Positive: Industry Report Businesses Focus on Customer Experience to Thrive Against The Pandemic

Vanilla Crepe’s

Layers of Love Nelson Liew, Chief Executive Officer & Founder of Vanilla Crepe

Products Signage Shops Displays Shelving Fully knock down fixtures & furniture

Services Design Construction Renovation Project management

Digital LED and display screens with content management and all supporting services

e l g n i s rce u r o e s pli p u s

www.pcagroup.com

CONTENTS / VOL. 9 NO. 3

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29

IOUpay–Premier Digital Banking In South East Asia

AmBank AmBank Supports Supports Malaysia Malaysia Fashion Fashion Industry Industry at at Kuala Kuala Lumpur Lumpur Fashion Fashion Week Week 2021 2021

COVER STORY 4

Vanilla Crepe’s Layers of Love Like the lovely layers of the crepe cake all stacked up neat and tall, CEO and Founder of Vanilla Mille Crepe Kitchen Sdn Bhd and Ezzybucks Sdn Bhd NELSON LIEW has been adding retail outlet over retail outlet even in the thick of the pandemic.

MARKET INFO 12 Budget 2022, What’s In It For You & I?

18 IOUpay – Premier Digital ON THE COVER

Banking In South East Asia

20 EKTECH – Connecting and Securing Business Through Managed Networks and Digital Surveillance

22 Ikano Centres Continues to Expand in Malaysia and Thailand

24 Mystical Christmas at Pavilion KL 25 Leading Live Streaming Provider Nelson Liew, Chief Executive Officer & Founder of Vanilla Crepe

Partners Valiram to Power Live Shopping Experiences

26 MR TOY opens 50th Store at IOI City Mall, Putrajaya

27 Dr. Ko Dermaceutical’s Opens Its 5th Retail Clinic in Mid Valley, Kuala Lumpur

28 Sunway Pyramid Welcomes Shoppers To Be Together For Good with Innovative AR Experience

29 AmBank Supports Malaysia Fashion Industry at Kuala Lumpur Fashion Week 2021

30 Malaysia SMEs Achieves Growth as Economy Recovers

31 KLCC Closes 2021 with Over 300 Successful Events and Best Customer Satisfaction

32 Malaysia’s 2022 Retail Outlook Positive: Industry Report

35 Businesses Focus on Customer Experience to Thrive Against the Pandemic

4 Cover Story

VANILLA CREPE’S LAYERS OF LOVE Like the lovely layers of the crepe cake all stacked up neat and tall, CEO and Founder of Vanilla Mille Crepe Kitchen Sdn Bhd and Ezzybucks Sdn Bhd NELSON LIEW has been adding retail outlet over retail outlet even in the thick of the pandemic. He shares with RACHAEL PHILIP what worked.

enerally, when one has succumbed to the gentle promptings of the heart and is already indulging in a generous slice of dessert, one does not spoil the moment by counting calories. But that was not to be.

Nelson Liew, CEO and Founder of Vanilla Crepe™, is eager to do the math for me. However, like well whipped cream, the numbers do not break the mood but hold up and add to the crescendo that is swelling within me.

“A slice of a regular cheese cake is about 400 calories but the Vanilla Crepe™ Original Flavour packs in just 220 calories. You can burn off the 220 calories by doing 25-30 minutes on the treadmill,” he offers.

Not sinful after all! This nicely compliments the next two facts he shares: ‘Desserts’ is stressed spelled backwards; and, it has been proven that in times of crisis people eat more desserts.

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CRISIS-PROVEN BUSINESS At the time of the interview, some 500 days into the pandemic, Vanilla Crepe™ has grown to 35 outlets, opening Malaysia Retailer Vol 9 No 3

roughly one outlet per month during the pandemic. At the start of the pandemic, however, things certainly didn’t look this sweet.

“On March 17 2020, when the government announced the first lockdown, we were extremely worried. This meant that overnight we would see our business crumble as 70% of our outlets were located in shopping malls,” says Nelson.

“If we counted on the courier companies for delivery of our products, we stood to lose a hefty 30% of our revenue. At the end of the day, we would be losing profit from every single slice of cake we sold.”

The outcome of a quick brainstorming session with his team showed that, in order to move forward, they had to overhaul their strategy and introduce new marketing initiatives.

“What was our big, blue ocean?

We decided to capture new market share by putting our products online.

We were not just selling cakes and desserts but emotions and moments of love.

“We received positive response.

The people in the service industry for instance, insurance and real estate agents, who wanted to remain

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“More people are IT savvy, they are more health conscious. We have to look at calories and GMO, halal and HACCP certifications.

We secured shuttler and Olympic silver medalist Goh V Shem to be the face of the brand.”

– Nelson Liew, CEO and Founder of Vanilla Mille Crepe Kitchen Sdn Bhd and Ezzybucks Sdn Bhd connected with their clients during the lockdown, approached us to deliver our products with some form of personalisation such as ‘stay safe’ messages.”

He also used social media platforms to launch their digital content such as videos and short films that tug at the hearts of their fans.

“If previously we hesitated spending money on content creation, now we don’t mind hiring professionals to do our videos for us.” Needless to say, their digitalisation efforts have paid off with hypnotic videos of pancake making in slow-mo.

PERFECT PAIRINGS Another creative strategy launched by the team are crossovers. In the last two years, Vanilla Crepe™ has paired with over 20 enterprises, both local and international players, to complement their business.

It has done crossovers with ingredient makers such as whipping cream producers Debic, Elle & Vire, famous food labels such as Nestle’s Milo and KitKat, food brand

Penang Chendul, Vanzo, Blackwhale, Samonyu, Penny Essential’s Collagen, Café Richard and even a cross over with hair salon Philo Vanilla in Johor.

“Customers come in for a haircut and styling, after that they sit down to catch up over our coffee and crepe cakes,” he explains.

In the Subang SS15 outlet where we are at, Vanilla Crepe™ has partnered with Wok It, a food brand that makes stir-fried meals in minutes. Their customers here have the option of filling their tummy with a savoury course and ending the meal with some moodimproving dessert.

“The pandemic has made us look at a lean model. We are now considering to expand our Grab and Go kiosk model which requires just two staff a day. We are out from the price war. We are looking at a unique positioning of our products for better value.”

Their themed crepe cakes also bring a spike in business. In 2020, the company sold out 2,000 boxes of its Mid-Autumn Mooncakes, the Mille Moon crepes, to Malaysians

within the first few weeks. The following year some 11,000 sets of moon crepes were flown out to Hong Kong and Singapore, and sold in their supermarkets.

NUTS AND BOLTS Nelson says that even if you have the most fantastic product, it takes hard work in ensuring that the products remain appealing to their customers.

Here is where team work comes in.

“I am not in the game alone; my family and my staff are my backbone. When I started on this journey, I didn’t know the power of a great team. In the early days I was frequently exhausted because I was trying to do many things, from marketing to graphics and networking.

“Then I learned the art of delegation and empowering my staff. The secret is to trust your staff.

Trust that this person can do a better job than you and empower him or her to do it. At the end of the day, you will find that you can achieve more because of this person.”

This employee strategy of empowering every staff was gleaned Malaysia Retailer Vol 9 No 3

Cover Story

6 from Zhang Yong, the founder of hot pot restaurant HaiDiLao. During this time, Nelson also harnessed the power of networking, turning to associations like the MRCA for support. He says it’s all about knowing the right people.

“Even our competitors are healthy competitors, and we can motivate each other.”

In business, more so during pandemic times, he says it is

important to remain adaptive, versatile, not to stay complacent.

“In the first three years of my business I was complacent. The numbers were growing organically and I was happy. But one of my mentors stopped me in my tracks.

He said I have a good product but I am getting too comfortable. I must always keep upgrading, not be satisfied with being average but aim to be a champion, the best in what

I do.” He names Datuk Seri Garry Chua, Dato’ Winnie Loo, Datuk Irwin Cheong and Dato’ Seri Raymond Liew as his mentors.

This piece of advice has taken him on a journey which began at

the foundations of the F&B industry – food science, the psychology of customer behaviour and optimising customer experience. He says, however, that for the next norm this is not enough.

“More people are IT savvy, they are more health conscious. We

MILESTONE • Top 3 Winner of JCI Creative Young Entrepreneur Award (CYEA) • Top 100 Talents Award accredited by Tourism Malaysia & Finas • Outstanding Business Growth Award by Portman Education Group & MoneySave

2021

2020

• Awarded The 100 Most Influential Young Entrepreneurs (MIYE) Nominated as Best Dessert Cafe by World Gourmet

2019

• The Star Outstanding Business Award (SOBA) Best in Retail 2020 • Malaysian Book of Records for the Largest Mille Crepe Retail Chain • Best Brands Award 2019 by BrandLaureate Malaysia Retailer Vol 9 No 3

• Sold over 400,000 slices of mille crepe in Malaysia (2 years) • Top Pick Mille Crepe Cake in KL by editor Sue Anne

2018

• Awarded by Elle & Vire Paris as the only endorsed authentic mille crepe manufacturer in Malaysia

2017

2016

• Won the Best Mille Crepe Cafe in Malaysia by Food Advisor • Nominated as Best Dessert Cafe by Timeout KL

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Malaysia Retailer Vol 9 No 3

Cover Story

8 have to look at calories and GMO, halal and HACCP certifications. We secured shuttler and Olympic silver medalist Goh V Shem to be the face of the brand.

“We will create a healthy series featuring premium ingredients and a lower calorie count to complement our regular series. Our R&D team is already looking at plant-based ingredients and a dragon fruit flavoured crepe.”

TRICKS OF THE TRADE As an entrepreneur, Nelson admits that he has come a long way. In 2015, he bought over a café in Paradigm Mall called Vanilla. His IT background helped him with the back end of the cafe but not in monetizing the new business, mall strategy and dealing with business on slow days.

“There were many challenges in those early days but the owner of the business saw the potential in me. Back then I was the founder of Wax-Hand Union, a company I created in 2006. I am the Master Franchisor with more than 60 outlets in Malaysia. I have also franchised out to more than 14 countries. We also cater to major events.

“This friend suggested that I take over his company. He will supply the cakes while I handle the marketing.

With this strategy, we found that the business was scalable. I could see the numbers growing organically.

“We then decided to scale it up.

We opened our second outlet in Sunway Pyramid. Then telephone calls started coming in for licensing opportunities. Our next two outlets were opened in Ipoh SoHo, IOI City Mall. Within two years, we had eight outlets – just through word of mouth.

“In that year we took over the central kitchen and trademarked our products. We were able to do more with our own kitchen in Ara Damansara.”

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NEW BEGINNINGS The new year will see some big changes for the company. After years of renting the central kitchen in Ara Damansara, and recently doubling its size by leasing a second space next to the first, Nelson is now aiming for his own building in March 2022 in Sunway Subang’s industrial zone.

To be called Wisma Vanilla Crepe, the plant will be halal and HACCPcertified, and will double the size of his current space to 6,000 sq feet.

The expansion plan will also be seen in Sabah where he will be launching his first three outlets in the first quarter of 2022, in City Mall Kota Kinabalu, Suria Sabah Shopping Mall and IITC Mall. This prompted him to secure a central kitchen in the state as well.

“Each kitchen can cater to 60 outlets. All these expansions are happening simultaneously. It is massive work but it means more mileage for our expansion activity.”

OPPORTUNITY KNOCKS Nelson says his talent lies in spotting opportunities and acting on them almost immediately.

“Some people think, over think and delay – and the opportunity passes. Opportunity knocks on the

door, especially when we least expect it. We have to be ready to open the door.”

An avid reader of self-help books, Nelson used his lunch time as an IT executive at the start of his working life to read life-changing books such as Stephen Covey’s 7 Habits of Highly Effective People, Rhonda Byrne’s The Secret and Sun Tzu’s The Art of War. “Currently I’m reading Principles

by Ray Dalio. I also listen to audiobooks on Spotify on my runs. It fuels me up and keeps me going,” he says.

“The pandemic has changed everything. As SMEs, we must stick together, share secrets, best practices and help each other,” he says when asked about his willingness to share his secrets in entrepreneurship and his business’ competitive advantage.

“In the social media era, team work and transparency are the new norm of doing business.

That, and being approachable. In the digital age, we have lost the art of connecting with others.

Through my cakes I want to facilitate connections and as an entrepreneur I also want to be more adaptive and approachable to my customers.”

PCA Group Delivering Engineered Solutions Globally HQs in Malaysia, established in 1991 with four main factories : Nilai Malaysia; Zhongshan China; Ahmedabad India, Mexico City Mexico, with 14 service centres around the world. 75% of products is exported to 105 countries in all continents around the globe.

Single Source Solution Provider From design, conceptualisation, manufacturing, supply, installation, construction, renovation, to maintenance.

Clientele Global super major multinational, regional brands to local multiple sites retail chains. Covering Petrol Retail, QSR, Automotive, Telecommunication, Health & Beauty, Multiple Retail Chain Stores.

Made For Retail Brand equities elements(signage), shops and display, POP, shelving & fixtures, furniture, LED light source, digital screens, all other elements to enhance customers journey and experience.

Export Awards Winning Company Gold award Export Excellence(mid tier) year 2018; Gold Award for Best Global Market year 2019; Asian Export Award by Asia Business Review Year 2020.

Value propositions General construction & renovation for retail outlets; Brand Equity Elements (Signage); Total shop fit out; Modular building & shop furniture systems; energy saving LED light source; Nationwide installation & maintenance; End to end single source provider.

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24/09/2021 3:30 PM

Core Strengths Total Retail Solutions : Conceptual design, manufacturing, project management, construction, installation and maintenance.

Manufacturing: Design, Value engineering, R&D from conceptual design to detailed engineering, prototyping and manufacturability.

Certification: ISO 9001:2000, ISO 14001, UL and CE compliance. TNB Grade A Electrical Contractor.

Innovation: Sustainability applications using energy conservation solutions including LED, Solar and advanced materials.

Proprietary flat pack fast assembly furniture systems.

Customer Journey & Experience Total solution involves creation of innovative retail solutions focused on the customer journey and experience in all retail outlets, shops, restaurants and kiosks. Our services include conceptual design, prototyping, submission drawings, roll out documentation, project management, construction, renovation, installation and maintenance.

Operation Efficiency Latest design and supply of kiosks, modular buildings, containerised fuelling kiosks and flat packed, fast assembly store furniture for best operation efficiency.

Digitalisation We help our customers to compete with latest digital technologies. . PCA supply LED and digital screen display products, with our software, integration, CMS and content development, relevant and effective in the retail environments.

Sustainability We provide EV charging stations to retail outlets sites; modular buildings, kiosks, containerised fuel stations and packed fast assembly furniture with minimum time on site location, capable to be refreshed and re-located to other sites in future; environmentally friendly construction materials and methodologies; high efficiency energy saving LED light source.

00_MRCA_Vol 9 No2 AD.indd 8

Malaysia is our base, the world is our home.

Contact Mr. Kalvin Ooi Executive Director kalvinooi@pcagroup.com +6017-876 7727

Contact Mr. Keith Brljevich Creative Director keithbrljevich@pcagroup.com +6012-369 5360

PT 3266 Jalan Mutiara Arab - Malaysian Industrial Park 71800 Nilai Negeri Sembilan, Malaysia

GENERAL : enquiry@pcagroup.com

24/09/2021 3:30 PM

12 Market Info

BUDGET

What’s In It For You & I? udget 2022 was tabled in Parliament on 29 of October 2021 with the theme “Keluarga Malaysia, Makmur Sejahtera” and the focus was on 3 key objectives, namely: 1. Rakyat’s wellbeing; 2. Building business resilience; and 3. Creating a prosperous and sustainable economy The Malaysian economy is forecasted to continue its recovery with GDP expected to grow at a slightly faster pace of 5.5% to 6% for 2022 compared to 3% to 4% projected in 2021.

Budget 2022 is the largest ever Malaysian Budget, with a record spending of RM332.1 billion – an increase of 3% compared to the allocated budget in 2021. Of this, RM233.5 billion was set aside for operational expenses, RM75.6 billion for development expenses, RM23 billion for the Covid-19 fund, and the balance of RM2 billion for contingencies. Government revenue is predicted to rise 5.9% to RM234 billion in 2022, up from RM221 billion in 2021, with the budget deficit falling to 6% of GDP in 2022, down from 6.5 percent in 2021. Overall, the budget is comprehensive and inclusive in line with the “Keluarga Malaysia” spirit in ensuring that no one is left behind in Malaysia’s development.

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WHAT’S FOR INDIVIDUALS?

SPECIAL TAX EXEMPTION FOR DOMESTIC TOURISM

The following are key tax changes affecting individuals in Malaysia arising from Budget 2022:

To further encourage domestic tourism, it is proposed that the special tax exemption up to RM1,000 be extended for domestic tourism expenses incurred from 1 January 2022 to 31 December 2022.

TAX RELIEFS It is proposed that the scope of tax relief of RM4,000 for voluntary contributions to EPF is to include individuals who are self-employed and employed in the gig sector. In addition, there is an extension of the minimum contribution rate for employees of 9% to EPF until June 2022.

For lifestyle relief, the special tax relief of RM2,500 for the purchase of mobile phones, computers and tablets will be extended for one year to 31st of December 2022. This will enhance the scope of income tax relief for lifestyle.

It is proposed that the tax relief from the total education fees relief of RM7,000 be increased from RM1,000 to RM2,000 for Year of Assessment 2022 and Year of Assessment 2023 for fees paid for upskilling or selfenhancement courses recognised by the Department of Skills Development, Ministry of Human Resources. This is to encourage individuals who are affected by the pandemic to enrol for upskilling, re-skilling and to build up new skills.

CHILDCARE CENTRE A ND KINDERGARTENS There will be an extension of tax exemption up to RM3,000 for 2 years for Year of Assessment 2022 and Year of Assessment 2023 for fees paid to childcare centres and kindergartens. This will alleviate the childcare centre and kindergarten expenses incurred by taxpayers.

TAX RELIEF FOR MEDICAL CHECK-UP EXPENSES The existing tax relief of RM1,000 for full medical check-up expenses for self / spouse / child have been expanded to include medical expenses involving registered psychiatrists, clinical psychologists, counsellors, etc.

This will reduce the medical expenses burden for the taxpayer, their spouses and children.

PERSONAL TAX RELIEF FOR SOCSO It is proposed that the personal tax relief for SOCSO be increased

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from RM250 to RM350 effective from Year of Assessment 2022.

This will result in tax savings for the taxpayers in relation to their income tax liability.

DEFERRED ANNUITY SCHEME The current tax relief of up to RM3,000 for the contribution to the deferred annuity scheme has been proposed to be extended for another 4 years to Year of Assessment 2025.

REAL PROPERTY GAINS TAX The RPGT rates on individual citizens, permanent residents other than companies had been proposed to be reduced from 5% to 0% in relation to the disposal of real property and shares in real property of the company in the 6th year onwards. This will result in RPGT savings for taxpayers.

DISCOUNTS FOR PTPTN Lastly, it has been proposed that discounts will be offered for PTPTN Loan Repayments from 1st of November 2021 until 30 April 2022 and the rates are 15% discount on full settlement, 12% discount for at least 50% on a single payment, and 10% discount for repayment through salary deductions or direct debit according to the repayment schedule.

WHAT’S FOR COMPANIES? The following are key tax changes affecting companies in Malaysia arising from Budget 2022:

ENHANCED POWER FOR DGIR Effective 1 January 2022, the Director-General of the Inland Revenue Board (DGIR) will be empowered to require banks to furnish taxpayer’s bank account information for the application to Court for a garnishee order. In this event, banks are not allowed to disclose to anyone that the DGIR has requested for the taxpayer’s bank account information.

DIGITAL ECOSYSTEM ACCELERATION SCHEME It has been proposed that Activities under the Digital Ecosystem Acceleration Scheme (DESAC) where applications had been made to MIDA from 30 October 2021 to 31 December 2025 will be eligible for income tax exemption from 0% to 10% for 10 years. This proposal aims to support the development of a comprehensive national digital ecosystem.

RELOCATION OF OPERATIONS FOR MANUFACTURING AND SERVICES COMPANIES It is proposed that a tax rate of 0% for 15 years for manufacturing and services companies that relocate their operations and have applied

to MIDA will be extended for one year up to 31 December 2022.

WINDFALL PROFIT TAX A windfall profit tax threshold price for planters increased to RM3,000 per tonne from RM2,500 per tonne.

Levy rates for Sabah and Sarawak will be adjusted to 3% as is the levy rate in Peninsular Malaysia.

SERVICE TAX FOR BROKERAGE CHARGES Effective 1 January 2022, there will be no service tax for brokerage charges involving listed shares.

The purpose of this proposal is to enable Malaysian stock market activities to remain competitive.

STAMP DUTY It has been proposed that a 100% stamp duty exemption will be given on the loan or financing agreement between Micro, Small and Medium Enterprises (MSMEs) and investors for 5 years and this exemption is applicable for P2P financing platforms registered and recognized by the Securities Commissions (SC) executed from 1 January 2022 to 31 December 2026. This enables SMEs to obtain alternative financing methods and reduce funding costs.

It has been proposed that the stamp duty exemption for

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Market Info

14 taxable earnings will be taxed at 24% with the remainder being tax at 33% for the Year of Assessment 2022. This proposition is a drive to increase tax collections from organisations making exceptional profits to provide financial help to parties impacted by the COVID-19 pandemic.

POSTPONEMENT OF INCOME TAX INSTALMENTS Perlindungan Tenang Products be increased from RM100 to RM150, Individual insurance policies or takaful premium not exceeding RM150 and MSME purchase of insurance policies or takaful with premium not exceeding RM250.

This proposal is applicable for insurance policies or takaful certificates issued from 1 January 2022 to 31 December 2025 and are in line with the Government’s efforts to improve the access to insurance and takaful products at a lower cost for the low-income group (B40) and SMEs. For trading of shares listed in Bursa Malaysia, it has been proposed that the rate of stamp duty charged on the contract note will be increased from 0.1% to 0.15% and the limit of RM200 for each contract note will be abolished.

The 100% exemption for restructuring or rescheduling loan/financing as well as the stamp duty exemption for merger or acquisition approved by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) has been extended for another 1 year to 31 December 2022.

INCOME TAX EXEMPTION FOR TOURISM SECTOR For the tourism sector, it has been proposed that an income tax exemption up to 50% on statutory

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income for organisers of artistic and cultural activities, as well as sports competition and international-level recreational activities be extended for 3 years until Year of Assessment 2025. Accelerated Capital Allowance (ACA) with initial 20% allowance and 40% annual allowance for purchase of new locally assembled excursion buses for tourism is extended for 3 years up to Year of Assessment 2024.

Lastly, the existing tourism tax exemption on Malaysian residents and permanent residents will be extended for another one year until 31 December 2022. These proposals aim to support the resilience of Malaysia’s tourism industry affected by the COVID-19 pandemic.

INCENTIVES FOR EMPLOYERS For employers, it is proposed that an incentive of 20% to 30% from monthly salary be provided to employers who recruit those who are not actively working. Besides that, an incentive of 30% to 40% from the monthly salary of RM1,200 to employers who hire persons with disabilities (PWDs), Orang Asli and Prisoners. Lastly, employers will receive tax relief and exemption on COVID-19 booster shots.

Effective 1 January 2022, all SMEs are allowed to postpone their income tax instalment for six months until 30 June 2022 in order to enable SMEs to recover from the effects of the COVID-19 Pandemic.

In addition, all companies are allowed to revise their income tax estimates in the 11th month of the basis period until 31 October 2022.

SPECIAL TAX DEDUCTION FOR RENTAL REDUCTION It is proposed that the existing special tax deduction on rental reduction of at least 30% is to be extended for another six months from 1 January 2022 to 30th June 2022. This proposal aims to reduce operating costs for companies affected by the COVID-19 pandemic.

SPECIAL TAX DEDUCTION FOR RENOVATION COSTS Besides that, special tax deduction for renovation costs up to RM 300,000 will be extended to 31 December 2022. This proposal aims to improve a company’s cash flow and encourage companies to upgrade their operations in line with the COVID-19 Standard Operations Code.

WINDFALL TAX

FOREIGN SOURCE INCOME

Introduction of “Cukai Makmur” (Windfall tax), a special tax on a one-off basis for large companies where the first RM100 million in

Effective 1 January 2022, foreign source income earned

by Malaysian Tax Residents and received in Malaysia will

INDIRECT TAXES be taxable. The IRB will offer a Special Income Remittance Programme (PKPP) for Malaysians who have overseas income from 1 January 2022 to 30 June 2022 and a gross tax rate of 3% will be imposed on income remitted back to Malaysia. There will be no audit review, investigation or penalty on income received during the PKPP period as it will be received in good faith by the IRB.

EXTENSION OF CARRYING FORWARD OF BUSINESS LOSSES It is proposed that companies can carry forward business losses for up to 10 years instead of 7 years. The above proposition is applicable effective from Year of Assessment 2019 and will offer further aid to loss-making companies as they recover.

INCOME TAX REBATE FOR MSME For Micro, Small and Medium Enterprises (MSME), it was proposed that the income tax rebate of up to RM20,000 for each Year of Assessment for the first 3 Years of Assessment be extended to include MSMEs that commence their operations on 31 December 2022 and MSMEs that perform business through online platforms.

EXCISE DUTIES It is proposed that excise duties will be imposed on nicotine-based gel or liquid products for vape and electronic cigarettes. This is part of a broader strategy to control the use of electronic cigarettes and vape in Malaysia, as well as to ensure that all cigarettes and tobacco products are taxed equally.

The current scope of excise duties on sugary beverage products had been proposed to be expanded to include sweetened drinks in the form of premixed with chocolate or cocoa, malt, coffee and tea such as 2-in-1 or 3-in-1 pre-mixed beverages from 1 April 2022 onwards. This proposal is intended to aid Malaysia’s National Plan of Action for Nutrition III (2016-2025) in combating obesity, diabetes, and other non-communicable diseases.

SALES TAX It is proposed that sales tax will be imposed on low value items below RM500 sourced from overseas, sold by online sellers and sent to Malaysia via air courier on 1 January 2022. Under this provision, both Malaysian and overseas sellers of low value items who sell these goods to Malaysian consumers are required to register and charge sales tax. At present, further clarification is required for this new provision.

REINVESTMENT ALLOWANCE

ELECTRIC VEHICLES

For Additional Reinvestment Allowance (RA), it has been proposed that the Special RA period for 3 years given for Years of Assessment 2020 to 2022 for companies that exhausted their 15 years RA be extended for 2 years to Year of Assessment 2024. This proposal is part of an initiative under the national economic recovery agenda.

It is proposed that a full exemption on import, excise duties and sales tax for electric be imposed from 1 January 2022 onwards. This idea is part of an effort to boost domestic demand in accordance with the Low Carbon Mobility Blueprint (LCMB),

the Electric Vehicle Roadmap, and the National Automotive Policy (NAP 2020).

EXTENSION OF SALES TAX WAIVER It is proposed that the existing 100% sales tax waiver on CKD Passenger Vehicles and 50% Sales Tax Exemption for CBU Passenger Vehicles including MPVs and SUVs be extended for 6 months to 30 June 2022.

SPECIAL VOLUNTARY DISCLOSURE PROGRAMME FOR INDIRECT TAXES Lastly, effective Year of Assessment 2022 the Royal Malaysian Customs Department will introduce Special Voluntary Disclosure Programme (SVDP) for indirect taxes in phases, with a remission penalty of 100% in Phase 1 and 50% in Phase 2 and may also be considered on a case-to-case basis. The SVDP gives an opportunity for taxpayers to move forward in a clean state via regularizing their indirect tax positions and also pay reduced or no penalties.

SUMMARY CONCLUSION In terms of tax revenue, 2021 was a challenging year with less income than expected. Budget 2022 proposed various measures to improve tax compliance and increase tax revenue, including the aforementioned indirect tax SVDP. The introduction of tax compliance certificates, as a prerequisite for bidders to participate in public procurement motivates taxpayers to ensure that tax compliance requirements are met and that the theme “Keluarga Malaysia, Makmur Sejahtera” is meant for ll Malaysians.

Dato’ Seri Dr Raymond Liew is a Tax Practitioner & the President of McMillan Woods, a global business advisory network.

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IOUpay – Premier Digital Banking in South East Asia OU Pay (Asia) Sdn Bhd is a subsidiary of IOUpay Limited (ASX:IOU) listed in Australia since 2014.

The company strives to empower businesses and consumers through innovation with their provision of fintech and digital commerce software and services in Malaysia and South East Asia (SEA).

The company has structured its operations into three business divisions: mobile banking, digital payments and digital services. The service is extended to 20 leading Malaysian banks, insurers, telcos and corporations in Malaysia and Indonesia.

More recently, the company has expanded with a new product – myIOU app that provides “Buy Now Pay Later” (BNPL), an alternative payment method to cater the booming cashless market. BNPL is a new payment idea that splits consumers’ purchases into small affordable payments. With myIOU, consumers can get more out of their budget by splitting their purchase into two, three or six monthly payments at zero-interest. The app is currently available at both Google Play and App Store. Malaysians aged 18 years and above who have access to any local credit or debit card can sign-up with myIOU and receive instant credit approval of RM1,000 for purchases from IOUpay approved merchants. myIOU sets itself apart from other BNPL providers by offering up to 6 months of instalment plan and credit limit up to a maximum of RM10,000.

The Head of Marketing from IOUpay, Gwen Khor said, “myIOU

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was designed to accommodate the ever-growing cashless market in Malaysia with its Buy Now Pay Later offering to both online and in-store retailers. Joining as a member of MRCA enhances our business mission to deliver uplifting shop, purchase and payment services through innovation”.

IOUpay has established strategic partnerships with leading industry players which are EasyStore, GoBiz

by U Mobile, and Razer Merchant Services. Some of the prominent merchants on myIOU are Brooks Malaysia, Buffalo Malaysia, Kapten Batik, Klingen & Erlesen, Manuka Australia, and Teppanyaki Malaysia.

The company has also recently onboarded Senheng, Gintell, Petsmore, Jurlique and Box of Bricks to extend their reach to consumers.

As IOUpay continues to expand its business ecosystem via

continuous merchant onboarding, the service extends support in web API integration and e-commerce shopping cart integration for web browsers, Android and iOS apps.

IOUpay remains to empower both B2B and B2C; encouraging sales conversion for businesses via BNPL and facilitating bill payments while offering a payment solution via credit in advance with zero interest for consumers.

All business entities are eligible to sign up with myIOU as long as they are registered with SSM or relevant business registration bodies. The onboarding process consists of assignment of dedicated account managers by IOUpay to guide merchants through the application and submission of required documents. Once the documents are approved, account managers will assist them with account setup and integration.

Merchants who are keen to sign up with myIOU Buy Now Pay Later service may visit www.myiou.com or contact 03-7733 5500 for more information.

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EKTECH – Connecting and Securing Business Through Managed Networks and Digital Surveillance KTECH is an established technology company that specialises in providing end-to-end advanced networking and security solutions.

Founded by a team of IT professionals, EKTECH has grown to be a leading hybrid, fixed and wireless, managed network service provider in Malaysia.

EKTECH also connects your business through fixed and wireless solutions, designing and building highly reliable hybrid multitelco networks. They are also an experienced electronic engineering company providing CCTV, Access Control, Intrusion Detection Systems, deploying integrated security solutions for retailers’ outlets for central control and monitoring.

The company provides ICT solutions and services for telecommunications, networking and electronic security. They are a leading managed services provider with over 20 years of experience servicing enterprise clients in the retail, finance, oil & gas, property and plantation industries.

EKTECH’s 24x7x365 Network Operations Center manages and monitors the network communications for retailers, petroleum companies, banks and many others, connecting their outlets, kiosks, vending machines, offices, branches, and self-service terminals to the cloud or Headquarters via their EKTECH Hybrid SDWAN. The EKTECH Hybrid SDWAN network is a combination of either wired or wireless 4G networks and using either broadband or private network to connect your businesses.

They provide SLAs, guaranteeing uptime so that your business operations are not disrupted.

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VOICE OF THE MALAYSIAN TECH INDUSTRY

my VOL. 4 • NO. 2 • 2021 RM10

A NOBLE ENDEAVOUR OPTIMISES ENTERPRISE APPLICATIONS ON CLOUD IaaS PIKOM MEMBERS MEET 2021

CONNECTING AND SECURING BUSINESSES THROUGH MANAGED NETWORKS AND DIGITAL SURVEILLANCE Datuk Teoh Eng Kee, Managing Director of EKTECH Holdings

00_MY.IT Cover EKTECH Vol4 No 2 .indd 3

11/10/2021 10:40 PM

The engineering division provides the latest Smart Solutions such as Facial Recognition Systems, Contactless Access Control and Smart Surveillance using Artificial Intelligence to provide 24/7 Video Surveillance Central Monitoring as a service, to detect thefts, frauds and break-ins.

With their wide range of solutions and their vast experience as a leading systems integrator, they count many happy retailers as their clients, providing reliable connectivity to over 7,000 stores, branches and self-service machines nationwide.

EKTECH Managing Director, Datuk Teoh Eng Kee said, “As a service

provider to retailers, I find MRCA is an association that truly represents its members and have noticed over the years, the association’s activities for the members and representation in the press on matters related to the industry, hence I was keen to join and network with its members.”

Currently recognised as a leading wireless 4G/LTE solutions provider, in the future, EKTECH hopes to progress from a niche player to cover all angles of communications and to be a valueadded independent service provider of choice for all companies.

“We hope to continue our journey as an innovative solutions provider to deliver creative solutions to solve real-life business problems for our clients especially with our solutions for and using 5G, IoT and AI,” added Datuk Teoh.

With its innovative solutions and state-of-the-art offerings, EKTECH is actively involved in Malaysia’s digital footprint. In fact, the company is the first to introduce and use cellular data networks for enterprises between 2007 and 2008.

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Ikano Centres Continues to Expand in Malaysia and Thailand Ikano’s shopping centres are spearheading futureproofing strategies driven by an omnichannel approach and strategic commercial developments kano Centres, part of Ikano Retail, continues to accelerate its omnichannel approach to retail amid a year marred by Covid-19 closures for its shopping centre business. As shoppers begin to return to physical visits, a key priority remains to enhance its IKEAanchored destinations to adapt to evolving consumer expectations.

With five meeting places under its portfolio – IPC, MyTOWN, Toppen, and Batu Kawan in Malaysia, as well as Megabangna in Thailand, Ikano Centres have maintained a healthy lease rate of 92% at its shopping centres throughout the past 18 months. During this time, the group introduced enhancements to address safety, improve customer experience, pilot digital partnerships, and create innovative shopping platforms for customers to connect, engage, and learn.

“We are optimistic about our

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Development of Shopping Centre Multi-Storey Carpark with the lifestyle RoofTopp.

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McDonalds at Ikano Centres Batu Kawan.

recovery as we see more visitors returning to our centres,” said Adrian Mirea, Ikano Centres’ Shopping Centre and Mixed-Used Director.

“To strengthen the shopping experience across our centres, we continue to sustainably invest in both physical developments to our assets and also digital platforms to elevate the experience that shoppers

have at our centres, all this while ensuring that our centres continue to be safe meeting places for our customers.”

Ikano Centres introduced digital innovations aimed to support its tenants throughout closures while giving its visitors multiple ways to engage with their favourite centres.

Initiatives include personal shopper services through GoGet, livestreams supported by social commerce, campaigns powered by GrabFood and Foodpanda, and optimising its shopping centre apps to facilitate convenience to shoppers through the order and collect services.

As community-centric shopping destinations, each meeting place is growing through sustainable means, with each development plan designed to cater to the needs of its surrounding community: IPC Shopping Centre: Damansara’s favourite neighbourhood shopping centre strengthens its familyfriendly offers At the heart of Mutiara Damansara,

IPC is finalising upgrades to its facilities to increase convenience, accessibility, and family-friendly services to its visitors. With a new escalator to improve traffic flow throughout the centre, it is also improving its family amenities including its family rooms and playgrounds.

MyTOWN Shopping Centre: Introducing a new socialising and lifestyle hub in the heart of Kuala Lumpur Targeted to launch in December 2021, MyTOWN is excited to introduce MyGround, a vibrant new socialising hub for its city-centre based visitors to connect and co-create shared experiences. More than 145,000 sq ft of its former department store location is being redeveloped into unique retail spaces, with selected units created with a flexible model for F&B tenants featuring built-in fit-outs to offer low start-up costs and easier entry into the shopping centre market.

Toppen Shopping Centre: Championing social enterprise with Soulmates, a flexible spacebooking platform to support small businesses and entrepreneurs To help small Johorean businesses recover from the impact of COVID-19, Toppen introduced Soulmates, a platform that provides fully prepared, flexible spaces that can be booked

Soulmates at Toppen Shopping Centre.

by the hour or day. Designed to be a one-stop solution, Soulmates is ideal for beauty and wellness, fitness, and other skills-based service providers to share their services with customers in a comfortable and professional environment.

Ikano Centres Batu Kawan: Introducing the next phase of its meeting place in North Malaysia with the opening of an F&B drive-thru concept In line with expanding new retail experiences to the growing township of Aspen Vision City, Ikano Centres recently launched phase two of its shopping centre with the opening of a new McDonald’s drive thru. In the coming months, KFC, Tealive, and

Coffee Bean will be new additions to create many convenient food options across 200,744 sq ft gross leasable area.

Megabangna Shopping Centre: Welcoming new partners Central Pattana (CPN) Plc. Hailed as one of the largest Southeast Asia malls, the Bangkokbased shopping centre is now proud partners with Central Pattana (CPN) Plc, which recently purchased 56 per cent of Siam Future Development Plc (SF), Ikano Centres’ joint venture partner in Bangkok over the past ten years. New tenant additions include Topgolf, which will bring together exciting entertainment offers for visitors in East Bangkok in Q2 2022.

Decathlon at MyTOWN Shopping Centre.

MyGround at MyTOWN Shopping Centre.

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Mystical Christmas at Pavilion KL avilion Kuala Lumpur is celebrating this Christmas by presenting the exclusive Coach ‘Give A Little Love’ Bespoke Holiday Installation as part of the mall’s ‘Mystical Christmas’ celebrations.

The largest Coach Bespoke Holiday Installation is set up at Pavilion KL’s main entrance and features numerous adorable Coach animals walking along a snowy landscape in front of Coach’s store and around the iconic Pavilion Crystal Fountain.

Inspired by a snowy winter park in New York City, the luxury fashion house’s hometown, the magical set-up celebrates the brand’s legacy of play and wonder. The installation also features a tunnel of twinkling lights along the park’s arch and an impressive 40-foot festive holiday tree and Coach’s Holiday polar bear as the centerpiece.

Throughout the month of

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December, shoppers will also be able to take in the stunning 3D animation on Pavilion KL’s giant LED screen at the main entrance that features Coach’s beloved mascot Rexy and Holiday polar bear.

Shoppers can also meet Coach’s holiday animals in-store, including Belle the penguin, Holly the deer, Ginger the fox, Paddles the goose, Luna the owl, Spike the hedgehog, and Robin the bird. At the store, shoppers can admire the holiday collection, including its Studio bag in Signature and metallic Coach Qualities.

Indoors, shoppers step into an enchanting ‘Mystical Christmas’ at Pavilion KL’s Centre Court where they can explore the snow village featuring quaint stalls, jolly snowmen, festive reindeers and mystical fairies. Stop to admire the stunning 30-foot fairy Christmas tree, nestled between lush poinsettia gardens and glittering trees.

Shoppers can also look forward to the return of Pavilion KL’s RM1,000,000 Cash Voucher Bonanza, the mall’s biggest shopper reward programme. With Pavilion KL’s official banking partner Maybank, cardholders will receive additional dining and shopping vouchers.

Treat your loved ones to a shopping staycation at Pavilion Hotel, KL. Guests will be treated to an exclusive Christmas gift worth up to RM150 with every RM300 spent in a single receipt at the hotel from 1 until 31 December, 2021.

Both Coach’s ‘Give A Little Love’ Bespoke Holiday Installation and Pavilion KL’s ‘Mystical Christmas’ decorations will be on display from now until 2 January 2022.

For more information on ‘Mystical Christmas’ activities and promotions, visit pavilion-kl.com or check for real-time updates via Facebook, Instagram, or contact Pavilion KL’s Concierge at 03-2118 8833.

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New Valiram partnership with BeLive Technology launches with livestreaming event featuring global lifestyle brand TUMI, enabling consumers to purchase luxury travel and lifestyle essentials in real-time. ive streaming solutions provider BeLive Technology announced a new partnership with luxury retail specialist Valiram to revolutionise the way products are bought and sold through real-time interaction showcasing the latest collections.

The collaboration has launched with a live streaming event featuring global luxury travel and lifestyle brand TUMI. Anchored by a host, the live streaming event arrives in time for the holiday season and will enable avid shoppers to purchase their favourite TUMI Fall/Winter 2021 products across backpacks, premium luggage, and lifestyle accessories in real-time.

The leading provider of live streaming solutions in Southeast Asia with operations in Singapore, Vietnam, and Shenzhen, BeLive Technology has previously powered solutions for brands such as Zalora, Rakuten Group, and Bukalapak.

This year, BeLive Technology has delivered over 90 million minutes of live video to over 1.5 million viewers in Malaysia, and this number is set to increase with this latest partnership with Valiram.

Founded in 1935 within the traditional realm of retail, Valiram was created with the goal of finding the best brands and locations and giving customers an exceptional experience in physical stores.

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With the current push into digital transformation powered by BeLive Technology, the Valiram business is in motion to expand its mission into the connected world.

This new platform allows for direct live shopping, real-time customer engagement, and sentiment analysis among shoppers across Southeast Asia. It enables direct engagement with viewers opening up two-way communication between shoppers and the premium retailer. By providing this platform for real-time interaction, the brand can capture shoppers anytime, anywhere, and engage with them in a more meaningful way than ever before.

The partnership launches with a live stream event featuring TUMI, one of the many internationally renowned brands in Valiram’s portfolio. With Valiram being Southeast Asia’s leading luxury and lifestyle retail specialist, the new live streaming event is the first in a series of Valiram projects in partnership with BeLive Technology. Valiram expects to roll out more live shopping solutions for other brands under its umbrella, with Bath and Body Works already in the pipeline.

Following months of lockdown and social distancing as a result of COVID-19, consumers have been forced to shop differently with an intent to shop online continuing to increase. According to Statista, the e-commerce market in Malaysia is

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Leading Live Streaming Provider Partners with Valiram To Power Live Shopping Experiences

Kenneth Tan, CEO and Founder of BeLive Technology.

projected to reach USD6,297 million by the end of 2021, and fashion accounts for the largest segment having an estimated market volume of USD1,924 million. A report by iPrice Group also revealed that during the pandemic, Malaysia witnessed a surge of 17 percent in website traffic from online shopping platforms.

“We are delighted to be partnering with Valiram to provide a live streaming platform that will undoubtedly help build brand advocacy and increase customer loyalty for brands, starting with TUMI. Live streaming can help retailers increase sales while maintaining brand awareness. With the rise of e-commerce and consumer behaviour shifting to browse-and-buy since the COVID-19 pandemic, live shopping solutions can be a gamechanger for businesses across Southeast Asia,” said Kenneth Tan, CEO, and Co-founder of BeLive Technology.

“This partnership with BeLive Technology comes at a perfect time for us. As the world embraces digital transformation, we are delighted to provide a powerful live commerce platform for customers. Through the combination of great content and secure online shopping features within this platform, TUMI and other brands in our portfolio will be better able to deliver a personalised and seamless retail journey to the customer,” added Mukesh Valiram, Executive Director of Valiram Group.

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MR. TOY Opens 50th Store at IOI City Mall, Putrajaya MR. TOY, a subsidiary of MR D.I.Y. Group, opened its newest store at IOI City Mall, Putrajaya, bringing the total number of stores in the country to 50.

aunched in 2019, MR. TOY is the country’s first homegrown toy store chain. The brand currently offers a diverse range of good quality toys across 9 categories – Vehicles & Remote Control; Pretend Play & Costumes; Craft & Activities; Sports & Outdoor Play; Action & Adventure; Building Sets & Blocks; Learning, Fun & Games; Party Supplies; and Infant & Dolls – all at low prices and great value for money.

To provide better convenience to its customers, the retailer also launched MR. TOY’s products on its e-commerce website, https:// www.mrdiy.com.my starting from November 2021.

Bringing cheer to children and parents alike through reasonablypriced and quality toys is what MR. TOY strives to achieve, said Andy Chin, Vice President of Marketing, MR D.I.Y. Group, while announcing the newest store addition.

“MR TOY’s brand motto – ‘Always Low Prices, Always Fun’ is reflective of our aim to help parents stretch their Ringgit further. We want to provide Malaysian parents, children, and toy enthusiasts with easy access to safe and fun educational toys, without burning a hole in their pockets “We launched our first store in Rawang, back in May 2019. In just a little over 2 years, we are opening our 50th store! Just like MR DIY, MR. TOY is yet another way for us to deliver our ‘Always Low Prices’ promise to more Malaysians. With

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the products now available on our e-Commerce website, we hope to provide better convenience to parents as they can even now shop for toys anywhere, anytime. We look forward to continuing growing our network of stores, filling them with quality and affordable toys,” added Chin.

In conjunction with the grand opening of the new store in IOI City Mall, MR. TOY is offering an exciting grand opening event between December 10 – 12, 2021, during which the retailer offers a 30% discount on selected products storewide, as well as free gifts with purchase.

Other interesting activities include the “Shopping Spree” and “Claw Machine”. MR. TOY is also organising a Nationwide Promotion, with a 30% discount on an exciting range of

more than 50 products at its stores nationwide.

To celebrate the year-end festive season, MR. TOY will be hosting multiple activities for family fun and frolics such as ball toss and Plinko games. In conjunction with the Christmas celebrations, all MR. TOY stores are also offering a complimentary Gift-Wrapping service with no minimum purchase.

Santa Walkarounds will also be hosted at selected MR. TOY stores for an additional festive cheer children can receive free balloons from Santa Claus!

For more information and updates, visit MR. TOY’s website, https://www.mrtoy.com.my/, or its social media handles – Facebook and Instagram @mrtoyMY and @ mrtoy_malaysia respectively.

Dr KO Dermaceutical is expanding to become the largest homegrown professional skincare chain in the Asian market.

ecretary-General of the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), Datuk Seri Hj Hasnol Zam Zam HJ Ahmad, graced the launch of Dr KO Dermaceutical’s fifth retail grand opening in Mid Valley Megamall, as they work towards becoming the largest homegrown professional skincare chain in Southeast Asia.

Being a brand under the Malaysia Book of Records “Largest Skin, Laser and Aesthetic Clinic in Malaysia” – Dr KO Skin Specialist, with over 37 clinics across Malaysia and four more in Indonesia, its skincare products are widely recognized and proven effective in resolving acne, skin brightening, anti-aging, dry skin, and hyperpigmentation problems, among others.

With the launch of its new retail store in Mid Valley Megamall, Dr KO Dermaceutical has established its presence in a total of five malls, the others being located in Sunway

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Pyramid, Mid Valley Southkey (Johor Bahru), Pavilion Bukit Jalil, and Gurney Plaza (Penang).

Consumers can expect more retail outlets to be launched in all major malls nationwide beginning with Terengganu, Pahang, Sabah and Sarawak.

Dr KO Dermaceutical aspires to capture a significant market share within the skincare retailing business in the next five years, establishing a foothold in both Malaysia and Indonesia markets as the skincare of choice when it comes to problematic skin conditions. The retail brand will go on to establish 15 outlets in Malaysia within the next five years, and progressively expand throughout Southeast Asia beginning with Indonesia and Vietnam. The company’s stockkeeping unit (SKU) is currently at 53 and will continue to grow to an additional 50% in the next five years.

“I’m thrilled to see the

expansion of our fifth retail store, bringing Dr KO Dermaceutical’s products and services closer to you. We have aspired to create professional skincare products that are specifically tailored to local skin conditions and over the years, it is rewarding to see smiles and the confidence many of our customers attain after consulting with us and using our products. Maintaining our dermatological health is vital especially when the pandemic has brought added stress as well as mask acne from the constant use of face masks. We are delighted to be able to aid those struggling with issues of the skin by broadening our reach during the pandemic,” said Dato’ Dr. Ko Chung Beng, Founder and CEO of Dr KO Dermaceutical.

DR KO Dermaceutical skincare products utilize only the highest quality, medical-grade skincare ingredients. Dr. Ko believes that with consistent use of skincare products tailored for your skin, a smooth, radiant complexion will not be just a dream. To date, DR.KO Dermaceutical has 4 ranges of skincare products, namely, Dermax Clinicare, Ko Dermacare, Three Series, and Ko Perfect. Muslim consumers need not worry; Dr KO Dermaceutical caters to all, offering a range of Wudhu-friendly products that are Muslim-friendly.

These would include – Bio Hydro Gel Moisturizer, Vitality Purifying Essence, Clarifying Mist & more.

Kindly visit https://drkoskincare. com/ or http://koskinspecialist.com for more information.

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Dr Ko Dermaceutical Opens Its 5th Retail Clinic In Mid Valley

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Sunway Pyramid Welcomes Shoppers To Be ‘Together For Good’ with Innovative AR Experience unway Pyramid is inviting all shoppers to be ‘Together for Good’ this Christmas, as the year draws to a close, with a little sprinkling of digital magic.

From 19 November to 26 December 2021, Sunway Pyramid’s LG2 Blue Concourse and selected portions of the mall will bring shoppers on a journey that encapsulates both online and offline elements to provide them with a new, interconnected way to experience the joys of the festive season.

Five special Augmented Reality (AR) stations will be set up throughout the malls for the shoppers to experience and be rewarded for their efforts. They will have to find each station and scan the corresponding QR code to launch a mini game.

Once shoppers have completed all five games at the various stations, they can redeem a special gift at the Rewards Booth in the LG2 Blue Concourse, and immediately be in the running for a lucky draw.

Prizes from tenants include Michael Kors, Kiehls, Kate Spade, JD Sports, TOUS, Watatime, Sulwhasoo, L’Occitane, Origins, Clinique and more.

Sunway Pyramid General Manager, Jason Chin shares, “Our theme this year revolves around coming together to give back to the community. We may have been

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GIFTING FROM THE HEART

kept apart throughout most of the year but the experience of being apart has inspired us to be closer to one another, especially in times of celebrations such as Christmas” As a token of gratitude for spending within the mall, shoppers who spend RM350 (RM250 for HSBC cardholders) in two receipts can redeem a Bath & Body Works Pocketbac Hand Sanitizer Set. Those who spend RM1,500 (RM1,400 for HSBC cardholders) in two receipts can redeem a Diamond and Platinum Sparkle of Whimsy pendant made from 925 silver and natural gemstones to add some sparkle to their celebrations!

Instead of the grandiose décor in Sunway Malls that shoppers have become accustomed to and look forward to seeing each year, Sunway is channelling its festive budget towards CSR efforts instead.

This year, shoppers can give back by purchasing a teddy bear from the CSR booth at the LG2 Blue Concourse for RM10. After making the purchase, they will be able to press a button to light up the Christmas tree in the concourse as a sign of gratitude for their contribution.

All proceeds from the teddy bear adoption will be channelled to those in need through Sunway Pyramid’s official charity partner, MyKasih, a non-profit organisation that seeks to help impoverished families and students throughout Malaysia.

For more on Sunway Pyramid’s ‘Together for Good’ Christmas campaign, visit sunwaymalls.com/ together-for-good-christmas.

mBank is delighted to support art and culture like the Malaysian Fashion Industry as the Official Banking Partner. The Kuala Lumpur Fashion Week 2021 (KLFW) ran for five days from 3-7 November 2021 at Pavilion Kuala Lumpur. The event featured designs and the latest collections from over 48 local designers throughout the five daily runway shows.

Group Chief Executive Officer of AmBank Group, Dato’ Sulaiman Mohd Tahir, said “We are honoured to be part of this event as a sponsor, supporting and uplifting our talented local fashion designers.

Throughout the years, KLFW has grown to become one of the most prestigious events in Malaysia which aims to showcase and promote our local heritage, creativity and diversity through fashion. It has also become an excellent platform to propel the local fashion industry to a global reach, especially after a tumultuous year.”

Aaron Loo, Managing Director, Retail Banking added “As business sectors are gradually opening up while we navigate through the National Recovery Plan, it is especially crucial to support local business and traders. AmBank has been one of the key players in driving the growth of Malaysian SMEs. Our efforts go beyond providing financial assistance as we also offer SMEs opportunities to improve their capabilities and help them thrive in the post pandemic economy through our strategic partners.

“For example, our collaboration with organisations from various sectors help to ensure SMEs stay

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ahead of the game by actively participating in the digital economy and transformation, which will open up a larger potential pool of customers. We are committed to continuously provide avenues and opportunities for local businesses to thrive in this challenging new era.”

In conjunction with Fashion Night Out on 6 November 2021, AmBank has unveiled “The Metal” card exclusively for its Signature Priority Banking clientele. “The Metal” card offers unparalleled privileges and features that meet the financial and lifestyle needs as well as feature curated experiences

that will enhance the lifestyle of AmBank’s Signature Priority Banking customers.

“The introduction of “The Metal” card is really about recognising our most valued customers and ensuring that their unique needs are met,” Aaron added.

Throughout the duration of KLFW 2021, AmBank cardholders enjoyed attractive deals including a 15% discount for curated runway collections and pieces, along with fresh new collections from various homegrown designers which will debut on a monthly basis during KLFW’s pop-up stores from January 2022 onwards.

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AmBank Supports Malaysian Fashion Industry at Kuala Lumpur Fashion Week 2021

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Malaysian SMEs Achieves Growth as Economy Recovers 126 Malaysian SMEs wins SME100 Awards. uala Lumpur, 22 December 2021: 2021 is a roller coaster year for Malaysian SMEs; with the extended lock down deeply impacting growth. As the economy gradually reopens, SMEs are once again hopeful for a strong recovery.

Despite the challenging environment faced by SMEs throughout the year, an astounding 126 Malaysian SMEs have emerged as winners of the 2021 SME100 Awards jointly organised by Business Media International and Small and Medium Enterprises Association of Malaysia (SAMENTA). They are among the 700 Malaysian companies that were in the selection of becoming the SME100 Fast Moving Companies of 2021.

On top of SMEs winning the prestigious SME100 Awards, there are also four other awards which have been awarded to several SMEs, including the iconic SME100 CTOS Credit Excellence Award and SME100 Affin SME Icon Award. The BMI VISA Sustainable Brand Awards return for the second year and the inaugural BMI Affingem Women Entrepreneur Awards were introduced this year to recognise women in leadership of SMEs. This year, SME100 continues to adopt one of the most stringent evaluation criteria for all nominees.

The five-step process included both qualitative and quantitative analysis, as well as a 100 percent interview requirement with a focus on growth (turnover, profit, and market share) and resilience (best practices, sustainability, and vision). CTOS is the official credit reporting agency

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of SME100, and Baker Tilly is official auditor with Affinbank and VISA sponsoring the 2021 SME100 Awards as platinum sponsors.

“As SMEs tend to be more vulnerable to economic cycles, we can see from the award recipients that they have demonstrated resilience, strength and growth despite the challenges,” said Datuk William Ng, group publisher and editor-in-chief of Business Media International and chairman of SAMENTA. Malaysia’s largest electrical products retailer Senheng and leading university HELP University

received the SME100 Affin SME Icon Award.

The SME100 Awards serve as a pinnacle of trust and benchmark of reliability for business owners. Be it for business ventures or attracting investors and clients in both foreign and domestic markets alike, the SME100 Awards have become the beacon of attention on all platforms that matter across all industries.

Malaysia is one of the four ASEAN member countries to organise SME100 Awards, besides Singapore, Vietnam, and Indonesia.

For more information, please visit http://sme100.asia.

More than 60% of events in KLCC were held in the last quarter of 2021. alaysia’s premier purpose-built venue, the Kuala Lumpur Convention Centre (KLCC) ends a challenging 2021 on a positive note having successfully hosted over 300 national and regional business events, with more than 60% held in the last quarter of the year, following the industry reopening in October.

In total, 94% were small and large meetings and functions, 3% exhibitions and 3% conventions.

General Manager of KLCC, Alan Pryor, said that “Despite the industry being closed for most of the year, we are pleased to have ended 2021 strongly. We are delighted that our re-opening was met with our clients’ enthusiasm for in-person events to return on a national level.

“We were well-prepared with dedicated safety and health guidelines for each segment, new normal quality assurances and accreditations, well-trained and experienced workforce, infrastructure and solution investments, and attractive incentive packages. All these combined with our flexible and client-centric approach have contributed to the successful delivery of events and increased customer satisfaction, with higher scores than pre-pandemic times.”

“In 2021, KLCC was also recognised as “Malaysia’s Best Convention Centre” and “Best MICE Event Venue – South East Asia” by World Mice Awards 2022 and APAC Insider respectively.

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Pryor shared, “We couldn’t be more elated to receive these awards, which reinforce our multi-purpose space, expertise, quality and service standards. Being the first Malaysian venue to obtain the ‘MySafe BE’ certification was also a great achievement that we are proud of and further emphasises our market leader position. Most recently, we have successfully obtained the ‘MyTrust Catering’ certification from the Ministry of Health that accredits our food handling practices and allows us to provide food and beverage services to events outside the venue.”

KLCC’s catering and culinary team members are also wellequipped with the world-class City & Guilds ‘Competent Food & Beverage Professional in Business Events Industry’ skills certification to enhance the efficiency, standards, and service delivery of our food and beverage offerings. Ultimately, ensuring a smooth and seamless journey for our customers and visitors.

“Food and beverage are a big part of our differentiated

offerings and we are currently enhancing our Signature ‘Malaysia on a Plate’ offering and consolidating new innovative products that have been developed during the pandemic, to provide a more holistic and varied cultural experience. Be on the lookout for more updates on this front in the coming months,” added Pryor.

Some of the key trends the Centre noticed this year were a high interest level to return to in-person meetings; increased demand for hybrid events as an alternative model for improved participation and reach, and cost-containment strategies; and a decreasing appeal amidst organisers for fully virtual events.

“With a successful end to 2021 in the books, and 90 events or 40% of our target secured for next year, we look forward to building on this positive momentum into 2022. We are confident that the Standard Operating Procedures (SOPs) in place will continue to drive the industry forward and contribute to Malaysia’s economic recovery,” Pryor concluded.

For the latest news and highlights at the Centre, visit the Centre’s Newsroom at www. klccconventioncentre.com or follow on social media (Facebook – @klccconventioncentre, LinkedIn – Kuala Lumpur Convention Centre, Twitter – @ klccconvention and Instagram – @ klccconventioncentre).

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KLCC Closes 2021 with Over 300 Successful Events and Best Customer Satisfaction

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Malaysia’s 2022 Retail Outlook Positive: Industry Report Compiled by Retail Group Malaysia

hile 2021 saw disappointing retail growth due to the stayhome order for shoppers and the close-shop ruling for store owners, most retailers have risen to the occasion. They have upped their game by moving online, providing the unexpected and meeting customers eye-to-eye.

The country’s retail industry report released in November 2021 and published by the Retail Group Malaysia projects 6% growth rate in retail sale for 2022. Are we on the road to recovery after almost two years of poor growth caused by the pandemic?

Retailers gave a resounding yes, but challenges still remain.

They cite high daily positive cases as a worrying factor. There is also the possibility of a fourth-wave of pandemic that is haunting the local retailer sector.

“Malaysian non-essential retailers cannot afford another forced closure of physical stores,” the report noted.

Omicron, the new COVID-19 variant classified as a variant of concern by the World Health Organisation on November 26 and first detected in Malaysia on December 3, is now spreading rapidly across the world. This will have an effect on the economic recovery around the world as well as in Malaysia.

The Malaysian government’s decision to delay the country’s transition into the endemic phase due to uncertainty of the virus

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pandemic will likely strain the country’s economic progress in the months ahead.

Another factor that could affect the retail industry are foreign tourists arrivals, which could see lackluster growth due to the current virus development. This will affect retail businesses that have been dependent on leisure travelers.

The country’s retail industry report also foresees the spike in the prices of consumer goods to continue in 2022. Rising cost of living will also affect the purchasing

power of Malaysian households in 2022.

REVIEW OF 2021 Malaysia’s retail performance for the third quarter of 2021, recorded a disappointing growth rate of -27.8% in retail sales, as compared to the same period in 2020 (Table 1). This quarterly result was much lower than what was expected by members of MRA and MRCA in September 2021.

This was in part due to the enhanced movement control order

Table 1 : Year-on-Year Percentage Change In Retail Sales by Retail Sub-Sector, 2021 Retail Sub-Sector

1st Qtr 2nd Qtr % 3rd Qtr

Department store cum supermarket

-14.5

-7.5

-41.9

Department store

-24.3

+18.2

-43.6

Supermarket and hypermarket

-11.9

-12.3

-12.5

Mini-market, convenience store & cooperative

-3.7

+2.6

+2.6

Fashion and fashion accessories

-23.4

+2.6

-63.6

Children and baby products*

-12.2

+2.6

-48.4

-6.2

+10.0

-10.3

Personal care** -17.7 Furniture & furnishing, home improvement +35.3 as well as electrical & electronics Other specialty retail stores -0.1

-36.1 -1.1

-51.7 -28.5

41.4

-20.7

Pharmacy**

Notes: *- children and baby products include apparel, accessories, equipment, school uniform and toys **- pharmacy and personal care stores were grouped under one category in Year 2020 Source: MRA/ MRCA/ Retail Group Malaysia

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Table 2 : 3-Month Retail Sales Forecast by Retail Sub-Sector, October-December 2021 Retail Sub-Sector Overall (weighted) Department store cum supermarket Department store Supermarket and hypermarket Mini-mart, convenience store & coop.

Fashion and fashion accessories Children and baby products* Pharmacy Personal care F&F, home improvement and E&E# Other specialty retail stores

% Growth Rate 18.3 35.9 -2.6 0.9 8.8 50.4 12.8 10.0 16.5 9.7 -15.6

Notes: *- include apparel, accessories, equipment, school uniform and toys #- furniture & furnishing, home improvement and electrical & electronics Source: MRA/ MRCA/ Retail Group Malaysia

(EMCO) that was enforced in large parts of Selangor and selected areas in Kuala Lumpur from July 3 2021 to July 16 2021. This forced shutdown saw badly hit.

Subsequently, from August 16 2021, some retail businesses under the National Recovery Plan (NRP) Phase 1 were allowed to open. They included the sub-sectors such as fashion, jewelry, electrical and electronic, furniture, sports, car accessories, hair salon, barbers and car showroom.

When the government relaxed restrictions on the number of passengers in a vehicle as well as the limit of travelling distance on August 21 2021, shoppers gradually returned to malls.

September 9 2021 saw cinemas, entertainment centres and beauty salons open for fully vaccinated individuals. However, most of these businesses only began opening to the public a week or so later after finalising their SOPs with the relevant government departments.

Recreational centres were allowed to resume their operations from September 10 2021 for their fully vaccinated customers while gyms were allowed to open the following week for their fully vaccinated members.

Klang Valley (Kuala Lumpur, Selangor and Putrajaya) moved to NRP Phase 2 on September 10 2021.

More relaxations, including dine-in, were allowed for fully vaccinated individuals.

From September 17 2021, more retail businesses were allowed to open for states under Phase 1 of NRP. They included personal care shops, toys stores, antique shops, outdoor shops, tobacco shops, carpet shops, used items stores, photography shops, souvenirs and craft shops, nursery as well as florists.

For the first nine months of 2021, the retail sale growth rate contracted 11.9% compared to the same period a year ago.

RETAIL SUB-SECTOR SALES COMPARISON The growth rates of retail subsectors during the third quarter of 2021 were similar to the second quarter of 2020 when the first movement control order (MCO) in Malaysia was implemented.

The sale turnover of the Department Store and Supermarket sub-sector dipped sharply with a negative growth rate of 41.9% during the third quarter of 2021, as compared to the same period a year ago.

Similarly, retail business of Department Store sub-sector dived during the third quarter of 2021, contracting by 43.6%.

Despite being allowed to open during the recent lockdowns, the Supermarket and Hypermarket sub-sector was still faced with declining retail sales with a negative growth rate of 12.5% seen during the third quarter of 2021.

On the other hand, the Mini Market, Convenience Store and Cooperative enjoyed a small growth rate of 2.6% in retail sales during the same period. This is the best performing retail sub-sector during the quarter.

During the third quarter of 2021, the Fashion and Fashion Accessories sub-sector registered the worst quarterly growth rate in terms of percentage. Business declined by 63.6%, as compared to the third quarter of 2020.

The Children and Baby Products sub-sector suffered a drop in retail sales by 48.4% during the third quarter of 2021.

In the same period, the Pharmacy sub-sector reported a negative growth rate of 10.3%, as compared to the same period a year ago. This sub-sector was one of the few retail trades that remained open throughout this period.

Malaysia Retailer Vol 9 No 3

Market Info

34 The Personal Care sub-sector recorded another poor retail sale with -51.7% in growth rate during the third 3-month period of last year. Its physical stores stayed shut for almost the entire period of the quarter under review.

The Furniture & Furnishing, Home Improvement as well as Electrical and Electronics sub-sector reported another decline in growth rate of 28.5% during in the third quarter of 2021.

The Other Specialty Stores subsector (including photo shop, fitness equipment store, secondhand goods’ store as well as store retailing musical instrument) suffered another drop in retail sale by 20.7% during the third quarter of 2021, as compared to the same period last year.

FOOD AND BEVERAGE SECTOR From August 10 2021, dine-in was allowed for all foods and beverages outlets under NRP Phase 2 or higher states. Ten days later, dine-in was allowed for fully vaccinated individuals in states under Phase 1 of NRP. Fully vaccinated parents were allowed to take under 17-yearold children with them.

On September 23 2021, this sector was allowed to open from 6am to 12 midnight daily for all phases under the NRP. The Food and Beverage Outlets (Café and Restaurant) recorded a negative growth rate of 0.8% in the third quarter of 2021, as compared to the same quarter a year ago.

The businesses of Food and Beverage Outlets (Take-Away, Kiosk and Stall) plummeted 11.1% during the third quarter of 2021, as compared to the same period a year ago.

Table 3 : Malaysia Retail Industry Quarterly Growth Rate, 2021 Quarter First Second Third Fourth Whole year

Growth Rate % -9.9 +3.4 -27.8 (e) +18.3 (e) 0.5

(e)- estimate Source: Retail Group Malaysia

During the fourth quarter of 2021, almost all F&B establishments have been able to operate as normal with social distancing measures in place.

With Malaysians allow to visit families and friends as well as tourist attractions in other states of Malaysia, F&B outlets dependent on tourists saw service returning.

Another factor lending a boost to the sub-sector was the return of workers to their work places.

Food and drink outlets in city centres, business districts and major commercial areas received office workers for breakfast and lunch.

Face-to-face business meetings also boosted sales at cafes and restaurants.

Cafe and restaurant operators as well as food and beverage kiosk and stall operators are hopeful their businesses will recover in 2022.

Comparison of retail sales with other economic indicators In the third quarter of 2021, the local economy contracted by 4.5% (Table 2, at constant prices), as compared to -27.8% for retail sales (at current prices).

The national lockdowns under the National Recovery Plan (NRP) affected economic activities during

this quarter. All economic sectors registered contractions. The movement restrictions led to lower consumption and investment.

The average inflation rate during the third quarter of 2021 slowed down to 2.2%. Consumer Price Index (CPI) remained positive for the 8th consecutive month since February 2021 due to the lower base effect in 2020 as a result of the decline in fuel prices for private vehicles.

During the third quarter, average price of Transport rose 11.0%.

Private consumption dropped by 4.2% during the third quarter of 2021. This was a sharp contrast as compared to the double-digit expansion of 11.7% during the preceding quarter.

Unemployment rate during the third quarter of 2021 slowed down slightly to 4.7%.

Consumer Sentiment Index (by MIER) jumped to 101.7 points in the third quarter of 2021. This was after 11 consecutive quarters below the 100-point threshold level of optimism. When almost all economic sectors had been allowed to open in stages since August, consumers’ outlook turned positive.

Note: The Retail Group Malaysia comprises members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA). They were interviewed on their retail sales performances for the second half of 2021.

Malaysia Retailer Vol 9 No 3

17 Malaysian brands win CXP Best Customer Experience Awards 2021. s the market continues to be disrupted due to the COVID-19 pandemic, businesses are focusing on their customers’ experience to thrive against the pandemic.

This includes the 17 Malaysian brands and businesses that are voted by consumers for the CXP Best Customer Experience Awards 2021.

Between March and September this year, some 30,000 Malaysian consumers were surveyed through the proprietary CXP Velocity Model to understand their purchasing journey and the level of customer experience they have received, as well as the ease with which their complaints were. Businesses rated the highest by their own customers across all parameters are then recognised with the CXP Best Customer Experience Awards.

“In the past decades, customer experience has become transactional as ‘marketing’ has eclipsed the customer as the focus of a company.

The internet changed that.

Customer experience is seeing a

A

rebound in importance as businesses shifted their focus to providing customers with the attention, time, and value-added service they deserve. Forging an emotional bond by engaging and understanding the customers on a more personal level is crucial for brands and businesses moving forward”, says Datuk William Ng, managing director of Business Media International, the company behind CXP Asia, a leading portal for customer experience professionals.

The survey has also offered some insights into the state of customer service in Malaysia with 82% of the respondents saying they would recommend a brand or company they like to their friends or colleagues, 81% will patronise businesses more often if their employees are friendly and approachable when solving problems or complaints.

On the flip side, 80% of the respondents say they are not getting sufficient feedback from businesses despite actively seeking answers. 75% of respondents stated

that brands do not actively seek for their business post-purchase which caused them to not repeat purchase.

“We are seeing a rapid surge in investment by businesses into customer analytics, real-time feedback, and recovery processes to drive repeat purchase and word-of mouth. Customer experience takes patience and persistence, but is an excellent investment given the changing behaviour of consumers and the resurgence of customer experience as a sales- and loyaltydriver”, Ng added.

The CXP Best Customer Experience Awards is organized by Business Media International with the support of research firm Smith Zander, Everise and Marketing Magazine.

For more information, please visit http://cxp.asia.

Malaysia Retailer Vol 9 No 3

Market I Market Info

Businesses Focus on Customer Experience to Thrive Against the Pandemic

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