Malaysia Retailer I Vol9 No3 I Solution Risk Group Dato Winnie Lim by Harini Management Services Sdn Bhd

MALAYSIA

Vol 9 No 3 2021

WM RM9 / EM RM11

RETAIL I FRANCHISE Increase Revenue with e-Commerce Best Practices How The Government’s 2022 Budget Can Help You Rebuild and Drive Your Business Forward

DATO’ WINNIE LIM Managing Director

SOLUTION RISK GROUP

on her latest – an insurance plan for parcels during delivery

MRCA Corporate Patrons

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 Shirley Tay Bee Koo SUNRIDER INTERNATIONAL (M) SDN BHD IMMEDIATE PAST PRESIDENT Datuk Seri Garry Chua ROTOL FOOD-CHAIN (M) SDN BHD DEPUTY PRESIDENT Dato’ Liew Bin BRILLIANT MERCHANDISING SDN BHD VICE PRESIDENTS Datuk Seri Dr. Chai Kee Kan KK SUPERMART & SUPERSTORE SDN BHD Valerie Choo Yoke Shiem SIMPLY AWESOME SDN BHD Ken Phua Cheng Chuen BENTLEY MUSIC SDN BHD Sharan Jethanand Valiram VALIRAM HOLDINGS SDN BHD SECRETARY GENERAL Jit Singh A/L Santok Singh IRONHORSE ASIA SDN BHD DEPUTY SECRETARY GENERAL Raymond Woo Hai Shiang VENDPAYS SDN BHD TREASURER GENERAL Dato’ Winnie Lim Yoke Chin SOLUTION RISK CONSULTANTS SDN BHD DEPUTY TREASURER GENERAL Dato’ Alex Wong Che Sing HAP SENG STAR SDN BHD COUNCIL MEMBERS Dr. Affendi Dahlan DR GROUP HOLDINGS SDN BHD Alex Chong Weng Wah SAKURA KRISTAL SDN BHD Brian Tham Jee Ping WATATIME (M) SDN BHD Christine Tan Gaik Lin CT F&B HOLDINGS SDN BHD Kevin Lee Guan Keong MAXIS BERHAD Liang Foo Kuan BIG ONION FOOD CATERER SDN BHD Michael Liew Fong Tzer MARRYBROWN SDN BHD Seak Thean Pow BAGUS CURTAIN SDN BHD William Tang Chee Weng THE STORE CORPORATION BERHAD Jordan Ng Kim Leong BANNERKING SDN BHD Datuk Henry Yip Choong Hung DRAGON-I RESTAURANT SDN BHD Aiveen Wong Choy Ching CHIN SWEE FOOD SDN BHD

TRUSTEES OF MRCA FOUNDATION Dato’ Tay Sim Kim Foundation Founder Chairman Datuk Lee Hwa Cheng Foundation Chairman 2020-2022 Dato’ Eddie Choon Trustee Datuk Albert Chiang Trustee Datuk Seri Nelson Kwok T. T., JP Trustee Dato’ Liaw Choon Liang, JP Trustee Datuk Seri Garry Chua Trustee BOARD OF ADVISORS Tan Sri Dato’ Sri Leong Hoy Kum GROUP MD, MAH SING GROUP BHD Tan Sri Dato’ Sri Barry Goh Ming Choon CHAIRMAN, MCT BHD Tan Sri Dr Lim Wee Chai CHAIRMAN, TOP GLOVE CORPORATION BHD Tan Sri Datuk Ter Leong Yap EXECUTIVE CHAIRMAN, SUNSURIA BHD Tan Sri Dato’ Sri Tang Yeam Soon MANAGING DIRECTOR, THE STORE CORPORATION BHD Dato’ Dr. Jennifer Low, JP GROUP MANAGING DIRECTOR, QUILL GROUP OF COMPANIES PRESIDENT’S ADVISORS Dato’ Sri Dr. How Kok Choong CO-CHAIRMAN, VETTONS SDN BHD Dato’ Vincent Choo Kok Leong URBAN IDEA SDN BHD LEGAL ADVISORS Dato’ Dr Manjit Singh MANJIT SINGH SACHDEV, MOHAMMAD RADZI & PARTNERS Datuk Ringo Low RINGO LOW & ASSOCIATES HONORARY AUDITORS Dato’ Sri Raymond Liew Lee Leong MCMILLAN WOODS Datin Yap Shin Siang YYC GST CONSULTANTS SDN BHD

MALAYSIA RETAILER is produced for MRCA by

HARINI MANAGEMENT SERVICES SDN BHD (609031-W) W-9-12, Menara Melawangi, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya, Selangor. Tel: 603-7932 3259 Email: harini.mservices@gmail.com www.harini.com.my

Publisher/CEO V.S. Ganesan Senior Editor Vimala Seneviratne Editor Rachael Philip Contributing Editor Khaw Chia Hui Creative Designer Goh Wei Lee Advertising Consultant Faridah Ismail Marketing Manager Karthik Ganesan Operations Manager G. Revathi PRINTER UNITED MISSION PRESS SDN BHD (755329-X) No. 15, Perindustrian BS 9, Jalan BS 9/10, Taman Bukit Serdang, 43300 Seri Kembangan, Selangor. Tel: +603-8958 0186 Fax: +603-8945 5168 All articles featured in Malaysia Retailer magazine represent the personal views of contributors and are not necessarily those of MRCA & Harini Management Services Sdn Bhd. All writers automatically agree to indemnify MRCA and Harini Management Services Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. All rights reserved. Copyright © 2021 by MRCA and Harini Management Services Sdn Bhd. No part of this publication may be reproduced in any form without prior written permission from the publisher. MRCA and Harini Management Services Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.

CONTENTS / VOL. 9 NO. 3

MRCA Year-End Members Meeting

Taste Of Angkor, A Cookbook That Promotes The Best Of Cambodia

DEPARTMENTS 1

Glory Page

President‘s Message

COVER STORY 4

A Winnie Solution for Parcel During Delivery Process Dato’ Winnie Lim, Founder of Solution Risk Group of Companies has made a name for herself as a specialist in the insurance sector. She dives into an industry, learns its risks and puts together clever solutions that deliver peace of mind. The Smart Parcel is her latest offering. It provides insurance protection for parcels during the delivery process.

ON THE COVER

MARKET INFO/MRCA EVENT 9

New Myvi Launched With 4,303 Units Booked

E-Commerce Best Practices

18 MRCA Women Division: Malaysia’s Future Economy Outlook

20 How The Government’s 2022 Budget Can Help You Rebuild or Drive Your Business Forward

23 MRCA Sponsored RM10,000 as Deepavali Charity Giving At Rumah Kebajikan Karunai Illam

24 MRCA Sharing Christmas Joy with “GIFT of Hope “for Children

26 Restructuring Today For A Rapid Recovery Tomorrow

28 Smart Retail Webinar: Embrace To Survive The Digital Storm

32 Taste of Angkor, A Cookbook That Promotes The Best Of Cambodia

34 Mah Sing Recognised as BCI Asia’s Top Ten Developers

10 MRCA Year-End Members Meeting

35 New Members

12 MRCA F&B Chapter Hosts

36 MRCA News That Appeared in The

Christmas & New Year Bash

13 MRCA Organises Engagement Dinner With Trade Associations Dato Winnie Lim, Managing Directorof Solution Risk Group

16 Drive More Revenue with

14 Your Digital Move – Business & Funding

Media Recently

37 2022 MRCA Event Calendar

President’s Message Dear Members, 2021 has just concluded and it has been eventful, but not without its challenges. The year has tested our resilience, strength and perseverance in navigating tough times, with many businesses adversely impacted while some have been boosted in unprecedented ways. Despite the several Shirley Tay restrictions faced President, 2020-2022 in 2021, MRCA has Malaysia Retail Chain successfully conducted Association 188 activities, with 47 activities held in Q4. On that note, I am pleased to share with you that we held our first face-to-face members meeting on 13 December 2021. It was very meaningful to finally get to meet and interact with our members personally. To address our members’ health concerns and to curb the further spread of the COVID-19 virus, we conducted self-tests at the registration counter, making our session an enriching “COVID-19-free” meeting. Since the pandemic started, many MRCA members have faced various struggles in keeping their businesses afloat. Recognising that, MRCA has been actively engaging government agencies, trade associations and industry leaders in strategising possible measures to help retailers bounce back. In fact, we engaged Retail Group Malaysia (RGM) to conduct a survey on growth projections. According to RGM, the growth rate estimate for 4Q2021 can be revised upwards from 12.7% to 18.3%. Bearing this outlook in mind, let’s continue to be vigilant, especially with the emergence of the new Omicron variant. We must act responsibly and make every effort to curb the spread of COVID-19. In lobbying the government to act on challenges faced by retailers, MRCA has been participating in many dialogues and discussions with government agencies, other trade associations and the private sector such as the Ministry of Tourism, Arts and Culture, the Ministry of Higher Education, the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), the Ministry of Entrepreneurial Development and Cooperatives, HRDCorp, EPF, banks and Industry Unite.

Our reach also goes beyond Malaysia – we had the opportunity to engage with the Royal Embassy of Cambodia, British-Malaysian Chamber of Commerce and Industry, and the Taiwan Trade Development Council to drive business collaborations. We also held various webinars on e-Commerce, funding, Budget 2022, Employment Act, Transfer Pricing and other salient topics to help our retailers navigate trying times. Just to highlight several latest events. The Smart Retailer webinar themed “Embrace to Survive the Digital Storm” discussed smart shops, customer analytics, omnichannel shopping experiences, enterprise-wide inventory visibility, fulfilment agility, and building effective customer loyalty. We also had the privilege of hosting Tan Sri Rafidah Aziz, former Minister of International Trade & Industry to share her insights on Malaysia’s future economy. The webinar entitled “How the Government’s 2022 Budget Can Help You Rebuild or Drive Your Business Forward” showcased prominent industry leaders with insights on SME financing, the government’s stimulus packages, efforts to rebuild the SME landscape, problems on the ground, digitalisation, and pivoting businesses – all in relation to Budget 2022. The “Drive More Revenue with e-Commerce Best Practices” webinar explored best practices for e-Commerce entrepreneurs in building their brand’s digital presence. As we continue to reach out to the less fortunate, I am pleased to announce that our charitable activities are bringing relief to impacted communities. Todate, we have brought festive cheer to homes for the underprivileged through cash and kind, such as Trinity Community Children’s Home Society, and Rumah Kebajikan Karunai Illam, among others. I am humbled and thankful by CIMB Foundation’s gesture in contributing RM100,000 towards our Women’s Division charity projects. In January 2022, we are hosting the MRCA Charity Golf event to raise RM50,000 for five selected charitable bodies. So, let’s do our part in reaching out to the needy in our community. My heartiest congratulations to winners of the prestigious KPDNHEP Awards – keep up the good work. As we welcome 2022, let’s thrive, recoup our losses and go beyond to achieve greater milestones. Enjoy our latest publication and let’s meet again in 2022. Thank you for your continued support. Wishing everyone a bountiful and happy new year!

Cover Story

A ‘WINNIE’ SOLUTION FOR PARCELS DURING DELIVERY PROCESS Dato’ Winnie Lim, Founder of Solution Risk Group of Companies has made a name for herself as a specialist in the insurance sector. She dives into an industry, learns its risks and puts together clever solutions that deliver peace of mind. The Smart Parcel is her latest offering. It provides insurance protection for parcels during the delivery process, RACHAEL PHILIP writes.

echnology has kept up with the boom in online shopping making e-Commerce swift and seamless, and keeping both retailers and shoppers happy. But there has always been one area that could well zap this joy from us – receiving a parcel with damaged goods. That last mile of delivery – sometimes the riskiest – now has an insurance protection plan, which covers damage and loss to your parcel due to delivery vehicle accidents, flood, theft, robbery and other unforeseen events. The wide-ranging product, developed by Solutions Risk Consultants Sdn Bhd, is the answer the e-Commerce sector has been waiting for. “I feel it is a timely product,” says Dato’ Winnie Lim, Founder of Solution Risk Group of Companies. “With the pandemic and the various lockdowns imposed on people in the last two years, consumers were forced to go online to make purchases. Many first-time buyers learned of the convenience of online shopping, while many regular online shoppers ventured to buy bigticket items online, such as bicycles, television sets, laptops, handphones and cars etc. “There is a certain amount of

Malaysia Retailer Vol 9 No 3

anxiety when you shop online. You can’t blame them. What happens if my purchase arrives damaged, broken or, worse, lost?” Courier companies have a basic insurance plan which provides a maximum coverage of between RM100 and RM300, depending on the company, regardless of the weight and value of the parcel. This does little in terms of comfort what more compensation if a parcel is damaged or lost. Dato’ Winnie is familiar with the logistics sector. She has been working with a number of courier companies these last two years. “I first created this product for a particular courier company. This company was seeing many cases of loss and damage parcels, especially big-ticket items. We rolled out the plan and it turned out to be a winwin for all stakeholders.” Seeing that this could benefit the logistics industry as a whole, Dato’ Winnie firmed up the insurance solution plan for parcels and in December 2021 launched a brandnew platform that would cater to the logistics players. “I figured that if I wanted big volume, I need a user-friendly platform that links us up with all the courier companies. These are our

clients. If a shopper wants to ship a bicycle from KL to Penang, they can opt for the insurance at the checkout point. This is where our platform kicks in. It facilitates both sales and claims.” The insurance premium is based on the value of the consignment multiplied by the surcharge rate. Dato’ Winnie assures that it is very affordable. A business-to-business company, Solution Risk deals with a large number of logistics players. This keeps the premiums low, she explains. The maximum liability is RM5,000 per consignment note or the value of the consignment, whichever is lower. For sum insured above RM5,000, a special approval is required. Generally, the claim process is not complicated, and the duration of coverage is 14 days.

TAILOR-MADE PRODUCTS A maverick of sorts, Dato’ Winnie has founded many businesses but her heart and expertise lie in insurance. “I may have done many things in life but I’ve never moved away from the insurance service industry. I have some very loyal staff here, some who have been with me for three decades. We enjoy coming up with new products and solutions for our customers.”

Cover Story

“I first created this product for a particular courier company. This company was seeing many cases of loss and damage parcels, especially big-ticket items. We rolled out the plan and it turned out to be a win-win for all stakeholders.” – Dato’ Winnie Lim, Founder of Solution Risk Group of Companies

Malaysia Retailer Vol 9 No 3

Cover Story

While the company mainly services corporate clients, it also handles a small percentage of individual accounts. Their principals are Allianz Malaysia, Tokio Marine Insurance, Great Eastern General & Life Insurance, Zurich Malaysia, Etiqa Malaysia, MPI General Insurance, Lonpac Insurance, Chubb Insurance and AmBank insurance. All these insurance companies have their regular policies, says Dato’ Winnie, but Solution Risk creates specialised products for the Malaysian market by bundling 10, sometimes 15 liabilities or risk exposures into one purposeful and affordable product. Over the years, Solution Risk has become well-known for these all-inone products, which have benefitted many, including MRCA members. Despite the lockdown, Dato’ Winnie has stayed in touch with the various industry leaders. This has continued to open doors for her team, in terms of venturing into new industries. “I create exclusive products for the market or a whole industry after learning about it and becoming familiar with it. For instance, when I was with a particular insurance company, I created a good product for pawn shop owners. This is doing well.” Malaysia Retailer Vol 9 No 3

SPECIALISED PRODUCTS The Cyber Risk Solutions and the Smart Retail Solution are two other popular products from the company. The former is a customised policy aimed at protecting SMEs from the risks arising from the digital space such as network security and privacy exposure. “The lockdown saw a rise in the number of cyber attacks stemming from the many loopholes in the online world. We have come up with an exciting plan which features quick response time – within 10 minutes our insurance consultants will initiate a local Response Manager to the case; within an hour the manager will contact the client and initiate the relevant response team. “I am not worried when big companies get hit. They have formidable cyber walls and large teams to handle the crisis but when SMEs are hit, it worries me because they are unable to handle the risks and the financial losses it entails,” she said. The Smart Retail Solution, meanwhile, packs 20 coverages into one product, from business losses sustained from Covid-19 to fire insurance, machinery breakdown, deterioration of stock, group personal accident, public liability, etc.

It is a well-thought-out and practical plan that reflects the needs of retailers in these pandemic times. It features no-claim discounts, emergency relief benefits, event liability cover and free renovation insurance, also known as Contractor All-Risk insurance, among others. “The Contractor All-Risk insurance is a must-have if you want to do even minor works of renovations at outlets in shopping centres.” Renovation works are also a hazard at areas of dense population such as condominiums. Dato’ Winnie has your back with her Smart Condo Insurance. The policy covers both minor and major renovation as well as maintenance works. It includes public liability coverage and damage to the tenant’s and the joint management body’s property, among others. “There have been cases of third-party body injury, loading and unloading site damage, and such. In fact, this is one area which I feel the government must step in and make compulsory for contractors to have before they embark on renovation works,” she asserts.

GOING DIGITAL Dato’ Winnie says that in the last few years she has sold some of her other

SMART RETAIL SOLUTION THE ALL-IN-ONE PACKAGE Smart Retail Solution is a customizable product with up to 17 types of covers for small and medium-sized enterprises (SMEs) providing the most comprehensive protection for your business. The coverage options consists of: • • • • • •

• • • • • •

Fire / Commercial Fire Fire Consequential Loss Terrorism Burglary Money Machinery Breakdown

Goods in Transit Personal Accident Public Liability Employer’s Liability Deterioration of Stock Glass

• • • • •

Mobile Plant Electronic Shield All Risk Product Liability Fidelity Guarantee

Customers can choose to insure under: Flexi Plan or Combined Single Limit Plan

Value added benefits includes: No Claim Discount (NCD)

Renewal Bonus

NCD up to 20% subject to no claims recorded (Except Fire & Con Loss)

Auto increase up to 20% of the principal amount (Except Fire & Con Loss)

Emergency Relief Benefit

First Loss Without Average Cost

An immediate lump sum cash disperse as supporting funds after a loss has occurred.

For all miscellaneous classes of insurance

No Excess Nil excess for all miscellaneous classes

Inconvenience Relief Benefit* Up to RM1000 per day for income loss during duration of repairs after a loss has occurred.

Construction / Renovation Benefit Enjoy Free Contractors’ All Risks coverage up to RM500,000 per location and include Public Liability insurance as per existing policy limit.

* Additional premium required. Please refer to the policy wording for the full terms and conditions

Authorized Agent: Solution Risk Consultants Sdn Bhd (213521-X) No. 165, Jalan Maharajalela, 50150 Kuala Lumpur, Malaysia. Tel: +603-2148 3811 (Hunting Line) Fax: +603-21459896 Email: src@solutionrisk.com Website: www.solutionrisk.com

Underwritten by:

businesses and now hopes to focus the next few years with Solution Risk as she plans her succession. “We have digitised our business and have put in new systems. We now store our files in the cloud. During the lockdowns our staff could work seamlessly and efficiently from home. In fact, we were busy gathering data from our clients and storing them on our platform.” These efforts proved useful as it allowed the Solution Risk team to provide swift compensation claims to policy holders who were positive Covid-19. Those quarantined at government-designated centres received RM2,000 while COVID-19 related deaths saw claims of RM20,000. Her corporate clients, whose staff were not policy holders, were also entitled to death and medical claims. “The sum may not be much, but we do all the leg work and they receive the benefits.” She also encourages her clients to get their businesses covered for COVID-19 interruptions. “Many signed up for this. So, if there is a COVID-19 case at their outlet and they have been ordered to shut down for 10 or 14 days, the

policy pays them RM2,000 per day. In these two years my staff and I have been busy processing many claims.”

POSITIVITY OUT OF THE PANDEMIC Suffice to say Dato’ Winnie and her team have not been sitting still. The events of 2020 and 2021 have not all been negative. “I just want to encourage business people that even during a downturn we can use the time to do something that can benefit our businesses, things which we cannot do during normal times. As an example, we managed to do a

lot of housekeeping, training and even virtually connecting with our customers. “One good thing that came out this are e-documents. Before the pandemic, many of our customers would insist on hardcopies but, because of the lockdown, customers now accept e-documents. “The pandemic has taught us that we must always be ready for challenges, we must be open to new things, even new ways of doing business. I believe we did the right thing by going digital. Our customised products have helped many. We had the opportunity to educate many.” Malaysia Retailer Vol 9 No 3

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9 Market Info

New Myvi Launched with 4,303 Units Booked Perodua launched the New Myvi with a total of 4,303 bookings collected within a 9-day period with deliveries made immediately. he New Myvi, which cost RM50 million to develop, has advanced technology, enhanced intelligent safety features, improved fuel economy, sporty new looks and a new colour. “We are thankful to our customers and to all Malaysians for the support shown to both Perodua and the New Myvi,” said Perodua President and Chief Executive Officer Dato’ Zainal Abidin Ahmad. He stressed that Perodua is expecting to register 6,000 units monthly, which would enable the compact car company to maintain sales interest in the Myvi moving forward. The New Myvi variants include the 1.5 litre AV (Advance Variant), 1.5 litre H variant, a 1.5 litre X variant and 1.3 litre G. The New Myvi is priced from RM45,700 to RM58,800 and is only applicable for Peninsular Malaysia. The launch of the New Myvi was within the same week as per the launch of the third generation Myvi on 16 November 2017. The Myvi, which was first introduced in May 2005 have sold some 1.3 million units so far and of that number, the third generation Myvi sold 277,329 units. Notable changes to the Myvi include an upgrade to its safety system, which features the Perodua Smart Drive Assist (PSDA) system

which was designed with the safety of the driver and pedestrian in mind. The PSDA has four features; the Advance Safety Assist (ASA); Driving Assist; Parking Assist; and Head Lamp Assist. The full suite of these features can be found in the AV variant, which qualifies it as a car with Autonomous Level 2 technology. “The increased fuel efficiency of the New Myvi is our commitment towards reducing carbon impact on the environment and working towards our goal of becoming a carbon-neutral organisation,” added Dato’ Zainal. The New Myvi also features new colour, Cranberry Red, which is only available for the AV. Other colours include Ivory White, Glittering Silver, Lava Red (not available for the AV), Granite Grey, and Electric Blue. On the overall industry outlook this year, Dato’ Zainal said the challenges brought upon by the COVID-19 pandemic is still present

and is impacting vehicle production with intermittent halts to curb the spread of the virus. The semiconductor chip supply shortage is still an issue for manufacturers worldwide as chipmakers struggle to keep up with the demand. Meanwhile, Perodua is also introducing another value-added allinclusive vehicle subscription service called Perodua EZ MOBi whereby this service will assist companies in managing their vehicle fleet from the time of procurement, servicing and fleet replacement. “In essence, EZ MOBi represents Perodua’s value contribution towards its customers’ growing mobility needs. The overall package includes vehicle registration, insurance renewal, servicing cost, part replacement cost, courtesy car, vehicle disposal and replacement under one subscription plan. For more information, please visit Perodua’s website at www. perodua.com.my. Malaysia Retailer Vol 9 No 3

MRCA Event

MRCA Year-End Members Meeting MRCA held its first face-to-face members meeting at Wisma Bentley Music on 13 December 2021.

RCA members came together for a muchawaited face-to-face meeting for the first time since the start of movement restrictions due to the COVID-19 pandemic. The session, which is the final meeting for the year, began with much excitement as members got to see each other in-person after a long hiatus. In an effort to comply with standard operating procedures (SOPs) to curb the spread of the COVID-19 virus and to safeguard the health of members, all attendees had to undertake a self-test thus ensuring a “COVID-19free” session.

PRESIDENT’S ADDRESS In her welcome address, Shirley Tay, President of MRCA expressed her sincere gratitude to Bentley Music for sponsoring the venue. She highlighted that originally the plan was to organise a largescale Christmas party for all members, however considering the on-going pandemic situation, it was decided that a smaller scale event sufficed. Updating members on MRCA’s latest activities, Shirley shared that since the last members meeting in October 2021, MRCA has carried out 47 activities, bringing the total number of activities for the year to 188. “I feel that the various phases of MCOs had caused a lot of damages to our businesses and to human lives as well. It has been tough for many of us but with the lifting of the restrictions, I noticed that we are coming out of the quagmire,” she said. Shirley added that during her Malaysia Retailer Vol 9 No 3

recent trip to Pavilion Mall in Bukit Jalil on its second day of opening, she was blown away by the presence of a large crowd. Talking to retailers at the mall, she was pleasantly surprised to learn that more than 80 percent of retail spaces were taken up. MRCA engaged Retail Group Malaysia (RGM), who conducted a survey revealing that with the opening of various economic sectors in the last quarter, the growth projection can be adjusted to 18.3 percent due to greater demand for retail during upcoming festive seasons. “So, for retailers and supporting industries, I am sure you will be able to gauge that things will get better,” she pointed out. In making projections for the year 2022, RGM predicted a growth rate of 6 percent, however Shirley expressed that the retail sector is prepared to do even better. Despite the positive prognosis, Shirley reminds retailers to be vigilant of the new variant and to take the necessary precautions as well as adhere to the SOPs. Meanwhile, the

shortage of staff is a key concern among many retailers currently. She reminded the members that MRCA has to continue to work in collaboration with other associations to address the disruption of the supply chain, and to continue to pressure the government to act on it. Shirley highlighted that in attending a dialogue chaired by the Prime Minister, with several senior ministers in attendance, it was encouraging to note that problems faced in the market were being analysed. “Hopefully the

Market Info

government acts fast to address them, and when the issue of staff shortage was raised, the verdict was that foreign workers will soon be allowed to enter the country for employment,” she explained. She assured that MRCA will continue to lobby for retailers in various areas. In her concluding words, she thanked all MRCA council members for fulfilling their responsibilities in their respective roles, and called for all members to provide more suggestions and ideas to do better. Shirley took a few moments to welcome all new members to the association. “With the year to come, 2022, I wish everyone the best year ever. Continue to persevere, remain steadfast and resilient so that you will do well again. Not only recoup what was lost but go beyond,” she advised.

KEY ACTIVITIES FOR Q4 Stan Singh, Secretary General of MRCA, highlighted the activities carried out by MRCA in the last quarter which included webinars on e-commerce, and funding, among others. Meanwhile, MRCA has had the opportunity to have dialogues with several government agencies and industry groups. Notably, Datuk Seri Dr KK Chai led the session with the British-Malaysian Chamber of Commerce and Industry (BMCCI), to open doors for business

collaborations between British and Malaysian companies. MRCA also participated in the launching of Dasar Kebudayaan Negara (DKN) and the Tourism Malaysia Marketing Plan 2022-2025 held in Putrajaya with a focus on retail tourism. Shirley represented MRCA at the roundtable meeting with the Ministry of Higher Education where she delivered inputs from MRCA on the development of higher education syllabus together with other industry leaders. As part of Industry Unite, Shirley represented MRCA at a press conference to voice out concerns of retailers such as rental relief, COVID-19 Act, shortage of manpower, and the distribution of alcohol. MRCA also participated in the Genting Highlands Skyworld Outdoor Themepark Review for a preview of the facilities and its offerings. Shirley joined the line-up of panellists at a dialogue to discuss Budget 2022. MRCA participated in a dialogue for trade associations organised by the Ministry of Entrepreneurial Development and Co-operative to lobby key concerns of retailers to the minister. MRCA participated in an engagement session with the Taiwan Trade Development Council to form alliances and drive future collaborations with Taiwan’s business community. The Corporate Tea-Talk jointly organised by HRDCorp and EPF was aimed at

driving employers to enrol with HRDCorp for employee development opportunities. MRCA was invited to the ASEAN Tourism Technology International Conference and Exposition which highlighted several technology platforms for future use; as well as the Angkor Event, hosted by the Royal Embassy of Cambodia, aimed at driving future collaborations on F&B between Malaysia and Cambodia. Several members did MRCA proud at the recent KPDNHEP Retail Awards Night, by winning prestigious awards – Congratulations to 99 Speedmart, Marrybrown, Parkson, Mydin and Giant. An engagement meeting was held with the CIMB Foundation CEO, which discussed challenges faced by the bank in the take-up of loans by retailers. Facts and figures were provided to CIMB on the reasons for companies not taking up financing facilities, such as concerns on credit ratings for restructuring. Additionally, CIMB also pledged RM100,000 towards MRCA for charity projects under the Women’s Division. Other activities included webinars on driving e-commerce best practices, a panel discussion on franchising outlook and opportunities in Malaysia, Maxis governing committee retail F&B session, a restaurant grand opening and the Malaysian Deepavali Open House 2021, among others. Malaysia Retailer Vol 9 No 3

MRCA Event

MRCA F&B Chapter Hosts Christmas & New Year Bash

RCA’s F&B Chapter hosted a Christmas & New Year party themed “FnB Together” on 10 December 2021 at the Imperial Chakri Palace restaurant at the Dorsett Hartamas Rooftop. The casual social event was attended by members of MRCA and guests. In her welcome address Shirley Tay, President of MRCA said that this gathering was indeed meaningful considering the long hiatus from social gatherings due to the pandemic. She said that this was an excellent opportunity to catch up with each other and strengthen friendships as well as working relationships. Shirley hopes that there will be more opportunities in future to meet up and socialise with each other. MRCA’s F&B Chapter head Datuk Seri Garry Chua said the Chapter is targeting to double its membership over the next 2 to 3 years. He added that the F&B Chapter is continuously helping retailers by offering advisory and guidance during these trying times. It was a fabulous night of meaningful interactions and networking amongst members and guests amidst festive celebrations, complemented by a sumptuous spread of Thai cuisine.

Malaysia Retailer Vol 9 No 3

RCA organised a networking dinner for trade associations on 14 December 2021 in an effort to drive business collaborations within the retail sector. The event was attended by representatives from various trade organisations who shared insights and their outlook for 2022. The trade association representatives also introduced their respective functions and roles for the knowledge of the attendees. MRCA members and guests present at the dinner were also invited to

participate in an open dialogue to share experiences, provide feedback and seek clarifications. Appreciation mementos were presented to the

MRCA Event

MRCA Organises Engagement Dinner with Trade Associations trade representatives for their support towards MRCA. The night continued with a casual tea session and more networking.

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ADVERTISING ENQUIRIES HARINI MANAGEMENT SERVICES SDN BHD (609031-W) W-9-12, Menara Melawangi, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya, Selangor. Tel: 603-7932 3259 Malaysia Retailer Vol 9 No 2 Email: harini.mservices@gmail.com

MRCA Event

Your Digital Move Business & Funding MRCA hosted a webinar to keep retailers informed on obtaining funding through the right channels and how to digitalise their businesses.

he webinar, which was moderated by Stan Singh, Secretary-General of MRCA, featured two distinguished speakers – Nicholas Tan, Senior Director of SME and Enterprise Development, Fusionex Group, and Chin Kah Leong, Head of Regional Business Development for SMEs, RHB Banking Group.

NICHOLAS TAN To the question of how the pandemic has impacted the consumer, Nicholas cited McKinsey & Company’s study which revealed that consumers have resorted to digital means for consumption. “Digital transformation has taken the world by storm. Telemedicine and virtual appointments increased 10 times, e-commerce achieved 10 years’ traction in 8 weeks, and what Netflix took to build in 7 years, took Disney Plus only 5 months to achieve; 250 million students went online with Malaysia Retailer Vol 9 No 3

remote learning in just 2 weeks,” he says. He adds that remote working has increased by 20 times in just 3 months. Nicholas stresses that any organisation that aspires to move forward has to embrace digitalisation. He explains that Fusionex believes that digital transformation is premised on four key pillars namely, engaging customers, internal collaboration, optimising operations, and changing the way you sell. He reminds retailers that consumer activities are going to take some time to return to normal, therefore digitalising business is a necessity to move forward. He advises retailers to constantly be ready for changes in the business landscape and that retailers should be prepared with digitalisation. “Don’t forget that with digitalisation, your customers can reach you 24 hours a day, and

therefore they expect more from you, and therefore you should be faster, optimise all your operations and change the way you sell,” he stresses. He continues to advise that retailers should leverage on digitalisation to update processes and empower customers to interact with retailers digitally. Nicholas points out that retailers need to take stock to ascertain where they are in terms of their digital roadmap, evaluate where they are in their digital journey, and to take action by reaching out and starting the journey. He proposes retailers to explore the full suite of digital solutions that Fusionex has to offer to make digitalisation a success in their organisations. “You have partners like Fusionex and RHB to help you in your digitalisation journey,” he reminds retailers. To Stan’s questions on retailers who are unaware of where to start, Nicholas explains that many retailers equate digitalisation with just selling online. He shares that retailers have the misconception that having an online store is digitalisation, however the full process involves re-looking at internal processes and engaging talents to run the digital business. He adds that digital business is all-encompassing and goes beyond just buying and selling, because it involves delivery, logistics, after-sales service and customer service. Nicholas also points outs that retailers often think that digitalisation requires large funds, but he explains that in going digital, retailers can start with small steps.

CHIN KAH LEONG In addressing funding, Chin explains that retailers need to first understand what their options are and what banks are offering them. These include the current 6-month moratorium, Bank Negara Malaysia’s (BNM) repayment

Market Info

assistance initiatives, and to engage with their respective banks on whether a financial restructure is needed. He advises all SME business owners, “If you are really not sure, do talk to your respective bankers on repayment assistance that is available.” He highlights that RHB has provided many retailers extended moratorium periods based on their requests to ease their financial burden during these trying times. “It is based on specific justifications provided by the SMEs,” he adds. In explaining restructuring and rescheduling, Chin says that retailers need to identify whether the current stress is expected to be long-term or just temporary. He adds that retailers should identify their current repayment source and projected cash flow based on current conditions. Based on these findings, Chin advises retailers to discuss with their respective bankers on fresh repayment plans that will effectively match debt repayment against cash generation estimates. This can be achieved through short-term or extended moratoriums, payment rescheduling, step-up repayment plans, and conversion of overdrafts or trade line into term loans with lower monthly repayments, among others. Chin explains that the targeted relief and recovery fund (TRRF) initiated by BNM is available to all retailers affected by COVID-19 containment measures, spanning various industries such as personal services, F&B, health and social work,

arts, entertainment and recreation, wholesale and retail trade, as well as business services. Recipients of the Special Relief Facility and the PENJANA SME Financing are eligible for the TRRF up to an aggregate limit of RM500,000 per SME and up to RM75,000 per micro enterprise. In highlighting the benefits that RHB offers to SME businessowners, Chin explains that the bank is offering retailers financing amount of up to RM500,000, with a low rate of 1.95% per annum, for a tenure of up to 7 years. Up to 80% of the financing amount will be covered by government guarantee provider, Credit Guarantee Corporation (CGC) and Syarikat Jaminan Pembiayaan Perniagaan (SJPP). In addition to this, RHB offers businessowners the SME e-Solution Ecosystem and the RHB #JomSapot platform with no extra cost for RHB customers. Chin points out that RHB has an SME e-Solution (SES) package – an integrated business account for SMEs across various segments which can be customised with all the API software encompassing features such as accounting software, HR management system, merchant card terminal/ MPOS, customised insurance, commercial credit card and cloud-based electronic point of sales/ ePOS to manage sales orders, inventory and CRM. “RHB #JomSapot is an initiative by RHB amidst the pandemic and economic crisis, to help advertise businesses for free for RHB customers. The aim is to support these SMEs to sustain, create more

jobs, and to drive rapid economic recovery,” says Chin. He explains that becoming part of this initiative is simple – retailers just need to open an RHB business current account, and RHB will help to promote their business on this platform providing retailers with visibility on various channels. Chin explains that RHB’s in-house relief financial programme offers retailers financing up to RM1million without asking for a guarantee fee or collateral. Retailers can apply for the RHB in-house financing programmes using the RHB Financing (SME) Mobile app. The bank’s in-house financing programmes cover relief financing for mall tenants; receivable financing for FMCG, pharmaceuticals and F&B; start-up financing for companies established between 1 to 3 years; and, financial supply chain ecosystem financing.

CONCLUSION On Stan’s question to the quantum of funds disbursed to-date, Chin shares that more than RM1billion was disbursed last year in relief funding to SMEs, with 2,000 applications received online. He explains that SME businessowners need to be able to articulate to bankers their business recovery plans for the future in order to obtain relief financing. On moving businesses forward for their clients, Nicholas explains that Fusionex will need to explore historical business data, business information and processes to plan for the future. Malaysia Retailer Vol 9 No 3

MRCA Event

Drive More Revenue With e-Commerce Best Practices Moderated by Stan Singh, Secretary-General of MRCA, the webinar featured Robin Choong, Head of Digital Strategy & Planning, Maxis e-Commerce, who expounded on best practices for e-Commerce entrepreneurs to start building their brand’s digital presence.

peaking about how to manage a profitable and sustainable online store, Robin explains that the 3 key success factors are to craft the ultimate shopping experience on webstore, acquiring new customers, and winning loyalty and retaining repeat customers. Robin says that the million-dollar question is “what do customers want from you?”

CRAFTING THE ULTIMATE E-COMMERCE SHOPPING EXPERIENCE Robin highlights that there are several questions that customers tend to ask, which entrepreneurs should address in driving more revenue via e-commerce. Why should I consider visiting your webstore? To address this question, Robin explains that entrepreneurs need to craft a strong value proposition on their webstores that include conducting a thorough brand audit, establishing a unique value proposition, and showcasing unique selling points for products offered by the store. Do I get a smooth shopping experience? Robin points out that a smooth shopping experience is achieved with easy webstore navigation. He adds that 88% of customers are less likely to return to a site after a Malaysia Retailer Vol 9 No 3

bad experience; while 90% of users reported they stopped using an app due to poor performance. Robin also highlights that up to USD2 billion in lost sales is recorded annually due to slow-loading websites. He advises that since 60% to 80% of website traffic is usually from mobile users, e-commerce entrepreneurs

should design webstores that ensure a great experience for customers. He explains that other success factors would be to understand the flow of customers’ attention, ensure products are easily found, make browsing the webstore a breeze, and understand customers’ preferences or sorting conventions.

What’s so great about your products? In addressing this question, Robin advises to win customers with great product presentations. To do this, he suggests a few tips which include providing all the necessary viewing angles; showcasing all available colours and designs; observing the basics of branding and consistency; and, using videos where possible. He pointed out that studies indicated that 22% of reasons cited for products returned were due to “product received looks different”; while 33% of customers indicated that they prefer to see multiple photos of a product. He added that 85% of customers are more likely to buy a product after viewing a product video. Can your product do what I want it to do? Robin advises to use compelling product copy to seal the deal. In essence, he recommends the use of bullet points to create clear and concise write-ups of product highlights, making sure to call out product features and benefits. He adds that persuading customers with the use of ‘power words’ is helpful in hyping up the product offerings. Acquiring new customers Delving into the acquisition of new customers, once again Robin reflects on a few compelling questions that customers may potentially ask. Should I try buying from you? He advises entrepreneurs to resolve and address any purchase barriers such as shipping, delivery, try-instore, and returns. Robin highlighted that 80% of customers indicated that they would buy a product from Amazon if they get free shipping. What do I get if I buy from you? For this, Robin recommends to craft purposeful promotional offers such

as first-purchase incentives, gift with purchase, and limited time discounts. Do I want what you are showing me? To address this, Robin advises to tap into customers’ desires by crossselling and upselling. He highlights that in 2006, when Amazon introduced cross-selling, their sales increased by 35%. Can I trust you? In gaining customers’ confidence and trust, Robin advises e-commerce entrepreneurs to enhance website security, drive product reviews, and establish live chats. He adds that showcasing security badges and trusted/authorised payment gateway integrations work wonders in boosting customers’ trust and confidence. Robin highlights that 90% of customers’ claim that positive online reviews influence their buying decisions. Product reviews are integral because they provide assurance to potential customers, help to increase conversions, and improve Search Engine Optimisation (SEO) as well as page visibility. Three ways to increase online reviews is by creating attractive incentives, making it quick and simple to post reviews, and using social media. Winning loyalty and retaining repeat customers Driving the point of winning loyalty and retaining repeat customers, Robin suggests reflecting on two key thoughts. Why you should pay attention to repeat purchases? He explains that a 5% increase in customer retention can increase a company’s profitability by 75%. Robin adds that it can cost 5 times more to acquire new customers than to retain current ones. On average, loyal customers are worth

up to 10 times as much as their first purchase. Why should I go back to you? Robin advises to use emails to re-engage and drive returning customers; and, send reminders to customers on products that they have abandoned in their carts and encourage them to complete the purchase. He highlights that 29.9% of cart abandonment email clicks lead to recovered purchases. Robin encourages peer-to-peer sharing with referral programmes as people are 4 times more likely to purchase if referred by a friend or family members. Navigating the e-Commerce landscape On a question about videos taking up too much time and bandwidth thus disengaging customers, Robin explained that videos pose a lower chance of customers getting disengaged. Instead the use of videos result in increased customer engagement due to its dynamic nature by capturing the attention of customers. As for bandwidth issues, Robin explains that it will definitely disrupt the shopping experience but that is a matter of network coverage, hence there is no significant impact on the use of videos. In essence, the rewards of using videos outweigh the setbacks. Touching on the onboarding rate of e-commerce entrepreneurs in Malaysia, Robin says e-Commerce adoption is accelerating at an unprecedented rate, for both shoppers and sellers. He adds that this phenomenon is poised to continue to grow in the years to come. Addressing a question on how to win back a lost customer, Robin advises to reconnect with the customer and remind the customer of the presence of your brand, which is why top-of-mind is so important. Malaysia Retailer Vol 9 No 3

Market Info

MRCA Event

MRCA Women Division: Malaysia’s Future Economy Outlook Moderated by Ms Debbie Choo, Executive Director of Social Enterprise Projek57, the webinar featured the distinguished Tan Sri Rafidah Aziz, former Minister of International Trade & Industry, speaking about the outlook for Malaysia’s future economy. s Malaysia emerges from the pandemic and battles towards economic recovery, Tan Sri Rafidah says that the country’s hope for recovery depends on the long-term vision of the leadership, the resilience of the people and the focus on addressing real issues. Despite that, she advises all parties to take stock as there has been tremendous collateral damage across various sectors as a result of the pandemic.

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She highlights future economic planning should take into consideration the realities of the damage done to the Malaysian economy. “Now the foundation of Malaysia is being eroded already. One thing is because of COVID-19 and its impact, and secondly because of policies that are not coherent. We have to rebuild that foundation,” says Tan Sri Rafidah.

IS MALAYSIA READY FOR OPPORTUNITIES AND TO DELIVER? She says that there are many opportunities for Malaysia to harness, however the question remains, is Malaysia in a position to optimise those opportunities and deliver as the country still reels from the impact of COVID-19. She points out that there is no coherent report

19 on the impact of the pandemic on Malaysia, and instead just piecemeal reports. Tan Sri Rafidah states that to-date close to 150,000 SMEs have closed down and this has impacted many families who have lost jobs and are unable to tide over.

REBUILDING MALAYSIA’S ECONOMIC FOUNDATION On rebuilding the foundation of the economy, Tan Sri Rafidah advises to look at how the new normal relates to one’s particular business and how that business dynamics have changed. She highlights that the “one-size-fits-all” concept cannot be applied for all businesses, and just advising all businesses to go digital is not the answer to the problem. “Not all businesses can go online,” she stresses. She advises to look at things from a broader spectrum yet considering the smaller sub-sectors for relevance. “Do your analysis properly before you even talk about future plans. Now is the time to analyse before the year ends,” she cautions. “Relook where you stand in the value chain, look at what other markets are open, or if you are too small to service a bigger market would it be time for you to get partners?” she adds.

DRIVING BUSINESSES FORWARD IN THE NEW NORMAL Tan Sri Rafidah advises businesses to consider collaboration in moving forward because it gives the business strength. Talking about the main lessons learnt, Tan Sri Rafidah highlights that from a micro-level, it is time to consider strengths and weaknesses amidst the opportunities and threats. Build on strengths and think about what to do further to grow the businesses, how to manage and plan in crisis while also continuing to have a practical viewpoint, she advises.

“It’s a time for businesses to prepare and not to moan and groan,” says Tan Sri Rafidah. She points out that the new normal is not only about SOPs but it also concerns the ways of doing things that have changed. There are many ways that people can change their business models to suit postpandemic conditions, she adds. “The imperatives in the market place are continuing to change. We now have the 3Ps bottom line, meaning Profits, People, and Planet,” says Tan Sri Rafidah. She adds that key concerns involve wages, labour conditions, sustainability and environmental issues, among others. If these are not addressed, then competitors can take over because they take these issues seriously. She stresses that the traceability factor is a very important business and market driver. Tan Sri Rafidah stresses that all business owners need to do a SWOT (Strength, Weaknesses, Opportunities and Threats) analysis in order to survive the aftermath of the pandemic and the new normal.

ADDRESSING ECONOMIC ISSUES On a question about unemployment, Tan Sri Rafidah says that with unemployment at approximately 5%, it is important to analyse the underlying issues of unemployment. “It’s not about new employment, it’s about getting people re-employed. The unemployed and the retrenched – that’s what we should be catering for,” she stresses. She adds that there have been no thorough analyses on the issues in the business, education and healthcare sectors. “How can you look at the future without knowing what the present really looks like?” she asks. “Young Malaysians have a lot of things going for them because

they are living in an era where the support facilities are available to them – ICT for instance. they have the whole spectrum. It’s a matter of whether they want to learn or not; and, apply optimally. This puts them at a better place,” explains Tan Sri Rafidah. Tan Sri Rafidah advises that entrepreneurs have to adopt whatever the market demands of them in their business, in terms of technology. She adds that first of all, entrepreneurs need to understand how specific technology is relevant to their businesses. On a question about electric cars, Tan Sri Rafidah says that these vehicles have always been in the market for a long time, however currently, technology has made them more efficient, high-tech and environmentallyfriendly. Addressing a question on the correlation between ESG and investments returns, Tan Sri Rafidah advises to think about the future and reflect on the long-term effects as well as consequences of not safeguarding the environment and upholding responsible business practices. “Ultimately the ‘rakyat’ suffers and there will be a boomerang effect on businesses. As a business owner, your license may be revoked due to noncompliance, or your reputation may be damaged,” she cautions. On the strengths of youths today, she adds that youths should have the motivation to work, enhance their workplace skills and build their marketable skills. She adds that entrepreneurs should groom these youngsters and coach them, especially on digitalisation, and harness their talents for industry. “Give them a head start and guide them,” she advises. In essence, Tan Sri Rafidah says that the SWOT analysis is sufficient to guide business owners in driving their businesses forward. Malaysia Retailer Vol 9 No 3

MRCA Event

How The Government’s 2022 Budget Can Help You Rebuild or Drive Your Business Forward Naz Rahman moderator of the session, speaks to a panel of experts on the dynamics of Budget 2022 and how it impacts micro-SMEs and SMEs.

PANEL SESSION 1 The first panel session featured 3 distinguished speakers namely, Datuk Dr A. T. Kumararajah, Secretary-General of the Malaysian Associated Indian Chambers of Commerce & Industry (MAICCI), Jenny Hoh, Vice President of SME Advisory and Marketing, Credit Guarantee Corporate Malaysia Berhad (CGC), and Yip How Nang, Head of SME Banking, RHB Banking Group. The panellists shared their thoughts and insights on SME financing, the government’s stimulus packages available to SMEs, and the efforts to rebuild the SME landscape with Budget 2022.

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DATUK DR A. T.KUMARARAJAH, MAICCI Talking about the incentives provided by the government in Budget 2022, Datuk Kumararajah says most SMEs are happy and relieved; however, certain areas need more focus with clearer narratives to move from a pandemic to an endemic stage, and to actually anchor the growth story. Despite the government’s efforts, it is uncertain whether SMEs can recover as fast as it is organically needed. Datuk Kumararajah points out that the disruptions that have happened in the last 20 months have either accelerated SMEs’ problems to an unmanageable level, or have pivoted them

into new business models or digitalisation which has enabled them to survive. However, the primary issues of access to credit and cashflow have especially plagued the micro-SMEs. From the RM530billion stimulus packages provided by the government, only 38,000 micro-SMEs and SMEs have benefitted from around RM12.5billion in the last 20 months. Datuk Kumararajah explains that this is because conventional financial and development financial institutions (DFI) are not having any different approach to the credit risk of customers. They are still taking into consideration cash flow and the ability to pay back. He pointed out that another issue that’s not taken into consideration in the new budget is that 30% of the SMEs have shut

down, while a large number are still struggling to navigate the market despite the government’s efforts. Datuk Kumararajah said that the government’s targeted wage subsidy programme and the PENJANA Tourism fund are good efforts. However, these efforts have not reverberated well in the market as the take up rate has been low with only 11% disbursement of financing. He adds that this is due to credit evaluations being done using pre-pandemic approaches. Datuk Kumararajah stresses that this should be considered as a ‘war-time’ effort, and should be placed under a single institution guaranteed by the government in line with its commitment to protect businesses under the SJPP scheme with funds allocated for capitalisation or recapitalisation. He suggests that the government step in to establish that risk mitigation can be done for certain industries under a single institution. “We did it in Danaharta and Danajamin, why don’t we extrapolate that experience and expertise that is still within the market,” he stresses. He advises SMEs to explore the Ministry of Finance’s (MOF) portal which lists several initiatives for access to financing and grants as well as digitalisation.

on the government’s provision and treat it as an added advantage. Even before the pandemic, CGC realised that SMEs were not getting sufficient access to financing, so CGC decided to customise its products differently. It set up our advisory team and matched SMEs with alternative financiers. CGC also has programmes for customers to gain market access such as e-commerce and digital marketing workshops, among others. Jenny explained that micro-SMEs especially are fearful of going digital but CGC managed to broaden their mindset to embrace digitalisation. She added that to-date, enquiries for assistance coming into CGC’s call centre has increased by 13 times compared to 18 months ago. Over the last 50 years, CGC has built a strong name in guaranteeing, however, it has also embarked on direct-financing. Jenny points out that CGC is not a competitor among its banking partners, instead it complements them by bridging any gaps with innovative ideas to help entrepreneurs and business owners. As the market moves towards sustainability, Jenny explains that it is best to consider this early and to raise awareness among SMEs to curb long-term business losses.

JENNY HOH, CGC

YIP HOW NANG, RHB BANK BERHAD

Having dealt with many SMEs in the past, Jenny is optimistic about the new budget and expects it to spur the economy. With SMEs employing 70% of the country’s workforce, one of the key elements in the budget is the focus on getting people employed. The GDP is expected to grow around 5.5%, however what is important now is to address social issues. As for SMEs, they have to plan for their own resources and capacity. When it comes to Budget 2022, it is about how to capitalise

Yip says that it has been tough in 2021, however, RHB’s in-house economists point to a very sharp rebound in 2022. GDP is expected to be at 4% which is a stark contrast to last year. He adds that there will be a lot of opportunities to harness not just next year but even after that. He predicts that OPR is expected to remain unchanged for the rest of the year with interest rates being largely accommodative. As a banker, Yip said it is very

important to have alternative ways to evaluate customers and not just base credit evaluations on financials. Generally, banks have been slow in adapting to the new environment, but RHB had figured this out even before the pandemic crisis. Yip explained that today, RHB has the ability to judge and gauge the financial flexibility of a particular borrower even without looking at their financials. RHB relies on data collected from borrowers to make credit decisions, and at times the bank also works together with partners and uses their insights to facilitate their credit decisions. Responding to a question on educating entrepreneurs, Yip explained that RHB conducts digital workshops on its SME e-Solution on a regular basis to share business knowledge and experience with its customers. Yip reminisces that when the Special Relief Facility (SRF) was first introduced in 2020, many businessmen assumed that despite the pandemic situation in China, Malaysia would be shielded from the situation. RHB was one of the first to participate in this effort and got the first case approved. That particular customer, who was in the tourism industry, got the disbursement within the same month. Yip added that as a commercial bank, RHB is one of the biggest supporters of government grant schemes, and to-date has disbursed more than RM1.1 billion in SRF, and will continue to do so for all Bank Negara Malaysia-funded schemes. On the question of sustainable business financing, Yip explains that RHB is poised to grow its ESG (Environmental, Social and Governance) loan books by RM1 billion by the end of 2022. RHB is one of the first banks to put together renewable energy packages for SMEs as early as February 2020, before the pandemic began. Malaysia Retailer Vol 9 No 3

Market Info

MRCA Event

PANEL SESSION 2 The second panel session featured 3 industry stalwarts namely, and Shirley Tay, President, MRCA, Kevin Lee, Head of SME, Maxis Business, and Pang Kong Chek, Chief Financial Officer, PKT Logistics Group Sdn Bhd. The panellist shared their thoughts on problems on the ground, digitalisation, pivoting business and Budget 2022.

for 6 months, and another 30% for the subsequent 6 months,” she added. Shirley also mentioned that the MyStep initiative to help people get employed was very encouraging. Amidst these initiatives, Shirley highlighted that the rental subsidies remain disappointing, which is adversely affecting SMEs because they owe huge outstanding amounts to landlords. Presently, SMEs are protected by the COVID-19 Act, however this is a temporary measure, which comes to an end in December 2022. On that note, she hopes that the government will be able to provide direct subsidies for rental relief. Shirley expresses her appreciation of the RM1.6 billion stimulus given to the tourism industry by the government, alongside the RM33 million to boost the production and purchase of local goods; and, the RM250 million for shopping online and e-commerce onboarding.

KEVIN LEE, MAXIS SHIRLEY TAY, MRCA Sharing her thoughts on Budget 2022, Shirley said that she appreciated the continuing incentives and financial assistance provided to SMEs. She highlighted that one major incentive that is encouraging is the targeted wage subsidy programme whereby RM600 million will be used to benefit 6,000 employers and 300,000 employees. “The government with its umbrella of Jamin Kerja and Keluarga Malaysia will create another 600,000 jobs, which is very important as SMEs are in shortage of workers,” Shirley explained. “There is also an incentive given to Malaysians to hire jobless people, whereby they stand to receive assistance of 20% of workers’ salary Malaysia Retailer Vol 9 No 3

Speaking about the importance of digitalisation for Malaysian SMEs, Kevin explains that the market is now an even playing ground with digitalisation. He adds that Malaysia has been a very conducive business environment for many years, that is why there are many entrepreneurs in Malaysia. “It is easy to start a business and the barrier of entry is low, and to sustain a decent business revenue is actually not too difficult in Malaysia,” Kevin explains. He shares that Maxis has entered a partnership with the Malaysia Digital Economy Corporation (MDEC) and Ministry of Finance (MOF) to help the government reach out to SMEs in Malaysia to bring them onboard government grants. It is targeted to help up to 100,000 Malaysian businesses,

primarily micro-SMEs, to kick-start their digitalisation journey. Todate, through this initiative, Maxis together with MDEC and MOF have helped more than 15,000 Malaysian SMEs to embark on digitalisation, from front-end solutions to other back-end and operational solutions. Maxis has stepped up its support for SMEs by collaborating with world-class IT companies such as Microsoft, Amazon and Cisco as well as Malaysian digital solutions provider, to deliver end-to-end digital solutions to SMEs embarking on digitalisation, encompassing, digital marketing, point-of-sales, Internet of Things (IoT), logistics, track and trace, and digital remote working solutions, among others.

PANG KONG CHEK, PKT LOGISTICS Sharing about PKT’s digitalisation journey, Pang explains that the company was already digitally ready pre-pandemic. However, when the pandemic hit the country, it further accelerated PKT’s digitalisation journey alongside its transformation programme. PKT was impacted because their customers were unable to operate during the pandemic. In mitigating business disruptions, the company diversified its business in the education and e-commerce sectors. The company is working towards its aspirations to derive its revenue from the online platform by 2025. Pang highlights that PKT deployed AI and robotics into its customs declaration system whereby it not only reduced the resources required to perform certain activities, but also channelled larger resources to more value-creating business operations. He advises to start small steps and gradually expand digitalisation throughout the business operations of SMEs.

alaysian Retail Chain Association (MRCA) Branding Education Charity Foundation brought lights and festive cheers to the lives of residents at Rumah Kebajikan Karunai Illam located at Kepong by donating RM10,000 worth of cash donation, groceries, kitchen equipment and utensils, electrical appliances and money packets. The donation was handed over to Mr S. Muthiah, Committee Member of the said NGO along with other official representatives in the presence of MRCA Branding Education Charity Foundation Chairman, Datuk Lee Hwa Cheng; MRCA President, Ms. Shirley Tay; Head of MRCA Charity, Mr. Jordan Ng and MRCA Council Members, with strict SOP compliance. Mr Muthiah said “The pandemic poses many challenges not only to

the children, but also to the staff and home’s sustainability.” He also shared that the MRCA’s donation arrived in time to bring festive mood to the home. Children were thrilled by the festive gifts. With the continuous effort and initiative to provide financial assistance and relief to the underprivileged group by The MRCA Branding Education Charity Foundation currently led by Foundation Chairman Datuk Lee Hwa Cheng, MRCA also embarked on several new charity projects initiated by its president, Ms. Shirley Tay in year 2021, which includes “A Good Deed A Week”; “MRCA Sungai Buloh Hospital Relief Fund”; “Spare Your Coins for Charity”; and “MRCA & DSAM Support White Flag Charity” campaign. Whilst many SMEs are still reeling from heavy financial losses

incurred in the past 19 months of prolonged lockdowns, MRCA has always strived to advocate good deeds through simple acts of kindness.

ABOUT THE MRCA BRANDING EDUCATION CHARITY FOUNDATION As the leading retail chain association in the nation, MRCA achieved tremendous breakthrough in the year 2010. Under the initiatives and leadership of its President Dato’ Tay Sim Kim, the MRCA raised RM1 million for the set-up of the MRCA Foundation. With the set-up of this Foundation, the MRCA started to work on giving back to the society through visitations and donations to Charitable Homes during Malaysia’s main festive seasons – Chinese New Year, Hari Raya, Deepavali and Christmas. The objectives of the MRCA Branding Education Charity Foundation are to act as trustee, administer funds for medical, educational and charitable purposes, to recognise academic achievement excellence from Members’ children, to assist, aid, provide relief and render financial assistance to the poor and needy. MRCA also provide education assistance to the needy and to deserving students. It also provides medical and surgical facilities and services and organise, implement and support schemes for the relief of human sufferings and treatment of sicknesses and diseases. Malaysia Retailer Vol 9 No 3

MRCA Event

MRCA Sponsored RM10,000 as Deepavali Charity Giving at Rumah Kebajikan Karunai Illam

MRCA Event

MRCA Sharing Christmas Joy with “Gift of Hope” For Children RCA Branding Education Charity Foundation brought some Christmas joy and gifts to Trinity Community Children Home at Petaling Jaya along with a donation worth RM10,000 comprising cash, grocery items, electrical appliances and Christmas gifts. The Charity visit was welcomed by Pastor Wendy, the Trinity Community Children Home’s Manager. The donation handover ceremony was attended by the MRCA Branding Education Charity Foundation Chairman, Datuk Lee Hwa Cheng, MRCA President, Shirley Tay; MRCA Deputy President, Dato Liew Bin; MRCA Charity Committee and Council Members with strict adherence to SOP guidelines and regulations.

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Shirley Tay highlighted the importance of goals set in life to inspire young people and in turn for them to learn and put every opportunity to the task so that they can unleash their full potential for the future and be successful in all they do. The children were thrilled to receive their Christmas gifts which had been prepared based on their wish list. In return, the children gave a wonderful performance to celebrate the joyous occasion that left the MRCA entourage impressed with their talents. It was certainly a memorable and meaningful event for all and especially for the children who have had an equally difficult time since the start of the pandemic. With the continuous

effort and initiative to provide financial assistance and relief to the underprivileged group, the MRCA Branding Education Charity Foundation has also embarked on other charity projects which were initiated by Shirley Tay, including “A Good Deed A Week”; “MRCA Sungai Buloh Hospital Relief Fund”; “Spare Your Coins for Charity”; and “MRCA & DSAM Support White Flag Charity” campaigns. Whilst many SMEs are still reeling from heavy financial losses incurred in the past 20 months of prolonged lockdowns due to the pandemic, MRCA has always strived to advocate in forwarding good deeds through the simple act of kindness, considerations and remembering those in need and reaching out to them in every opportunity and means.

BUSINESS BANKING #JomSapot 2020

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MRCA Event

Restructuring Today For A Rapid Recovery Tomorrow Recognising the challenges faced by retailers, MRCA’s F&B Division hosted a webinar on preparing for future crisis, improving retailers’ knowledge on working capital and business cashflow position, as well as how to sustain a business in the long-term, among other key concerns faced by retailers. he webinar featured Lim Ben-Jie, Head of e-Commerce, AirAsia and K L Boon, Director of Advisory, YYC Advisors Sdn Bhd, who share insights on challenges faced by businesses during the pandemic and how to sustain effectively.

LIM BEN-JIE Ben-Jie explained that a significant number of retailers have been struggling over the last 2 years and have downsized their operations, with some even closing their businesses down permanently, caused by low demand and supply chain issues, among other reasons. He adds that a survey conducted by MRCA on its members’ businesses revealed that 55% of retailers have downsized, 72% have reported a workforce reduction, and 40% have terminated at least more than 10 staff. Ben-Jie highlighted that a total of 36% of MRCA’s members’ businesses have been unable to operate beyond 3 months with their cash flow position.; while another survey conducted indicated that 52% of businesses required financial assistance. He noted that changes in consumer behaviour has also been observed in terms of purchasing habits and the switch to online e-commerce platforms.

K L BOON Boon shared that since the pandemic started in 2020, Phase 1 of the Movement Control Order (MCO), between March and June 2020, witnessed 10,000 SMEs closing their operations; while the RMCO period Malaysia Retailer Vol 9 No 3

saw nearly 30,000 SMEs close down. In August 2020, close to 20,000 companies ceased their operations. FCMO 2021 saw approximately 580,000 or 49% of micro, small and medium enterprises closing down by October this year. Citing research conducted by SME Corporation, Boon said that key factors leading SMEs to fail included lack of financial and business planning; poor cash flow management; lack of updating accurate financial information; the absence of competitor analysis; funding and financing issues; challenges with internal management; and, lack of effective delegation of responsibilities. He added that the pandemic had impacted businesses with supply chain disruptions, bankruptcy and soaring shipping costs, among others. According to Boon, specifically F&B businesses were impacted in several areas from a financial perspective that included, a deterioration of GP margin; excessive staff cost and rental of restaurants; lack of clarity on company valuation; and, over-reliance on bank borrowings resulting in a highly geared position. From an operational

perspective, F&B businesses were impacted by the increase of the presence of e-commerce and the shift in consumer behaviour; business digitalisation; and, food supply chain disruptions. The market outlook for the F&B industry in 2022 revealed that the services industry is expected to experience a year-on-year growth rate of up to 7%, and F&B and Accomodation is expected to increase by 7.3%. Boon advised that this is a good time to harness the opportunities to cash out on missed sales over the past few months. Statistics revealed that only up to 54% of SMEs can sustain up to 2 to 3 months with their current cash flow position. Boon advised business owners to assess how long their cash flow is able to sustain and what is their cash burn-rate. Several strategies on how to prolong cash flow was highlighted during the session, which included clearing excess inventory and turning them into cash; assessing how to reduce capital expenditure; quantifying cost savings; reducing rental; cutting sponsorships and ineffective marketing costs; deferring unnecessary operating expenses; identifying alternative

Working Capital/Cash Conversion Cysle CCC = STD + DTD – CTD • STD = Stock/WIP Turnover Days (Stock/COGS x 365 days)

• DTD = Debtor Turnover Days (Debtor/Sales = 365 days)

• CTD = Credit Turnover Days

Common Company Valuation Method Method 1:

Method 2:

Price Earning

Net Tangible Assets Total Assets – Intangible Assets – Total Liabilities

Profit After Tax x PE Multipls

(Creditor/Purchases x 365 days)

suppliers with cheaper or better terms; invoicing as soon as product or service is done; and, plugging bleeding business units. Sharing about the Cash Conversion Cycle, Boon explained a few equations that would be helpful for business owners. For the knowledge of business owners, he pointed out a few financial ratios to measure the ability of the company to repay debts and shared the formula to calculate this. He said that a financial gearing of less than 100% is recommended for companies, while gearing of more than 200% is not acceptable and needs immediate intervention. He added that there are 2 common methods for company valuation which include Price Earning Ratio and Net Tangible Assets. The PE multiple depends on business valuation, and whether future business partners are able to perceive the future value of the business. Boon shared that when Tealive was taken over, the PE Multiple was more than 20 times. The reason for sharing the two methods is to enable business owners to know the base line when negotiating price during a merger and acquisition.

CASE STUDY Sharing a case study of an F&B business operating in the Klang Valley Boon explained that the company, which comprised 100 staff, was adversely affected by the pandemic. With existing 5 outlets,

the company was planning to open up 2 new outlets right before the MCO started. The company’s pain point was the deteriorating GP margin. Key recommendations to remedy this was to embark on a drastic cost optimisation, to target a 20% cost savings and source for new suppliers with more favourable terms. Recovery measures advised were to scrutinise the existing payment cycle process and conduct a costing analysis by the business segment. Another pain point experienced by the company was excessive staff cost and rental due to the newly opened outlets right before the FMCO. Key recommendations to address this was to reshuffle existing staff to help online food delivery preparation; a pay cut with letter of consent in compliance with Jabatan Tenaga Kerja PK requirements; and, negotiation of rental rebates with landlords for all their premises. Recovery measures advised included assessing revenue per staff and rental per month per outlet. Yet another pain point was the lack of knowledge of the business owner about determining the company’s valuation. Key recommendations provided were to leverage on YYC’s Power of Cash solution to gauge the company’s valuation and price range; and, apply YYC’s Power of One strategy and improvement plan; and, negotiate better price, and terms and conditions with investors. Recovery measures included price earnings,

How’s Your Company Latest Financing? Balance Sheet ①

②

Cash at Bank Fixed Deposit Bank Borrowings Net Cash

Net Debt

Equity Solvency

Gearing Debt Equity =

Total Debt Total Equity

net tangible asset approach and assessing the discounted cash flow of the company. The company was also overreliant on bank borrowings resulting in a highly geared position. Hence, they were advised to seek government support and subsidies; constantly monitor profit improvements; and, cancel unutilised and costly bank facilities. Recovery measures advised included interest cover, gearing ratio and debt service coverage.

CONCLUSION Boon offered retailers a free 1-to-1 consultation, worth RM10,000, for business owners who are struggling to sustain their businesses. Contact YYC consultants at their Hotline 011-6186 0887. Malaysia Retailer Vol 9 No 3

Market Info

MRCA Event

Smart Retail Webinar: Embrace To Survive The Digital Storm Organised by TM ONE in collaboration with Huawei and MRCA, the webinar addressed the dynamics of the digital economy and adapting to a new retail attitude as well as the role of cloud-based solutions transforming the retail sector. icking off the webinar, Joshua Lim of MRCA said that the pandemic has pushed the retail sector from evolution to revolution, transforming the dynamics of the retail sector. He added that currently online purchases have increased to 72 percent compared to a decrease of 44 percent of shopping at physical stores in Malaysia. The webinar features topics on smart shops, customer analytics, omnichannel shopping experiences, enterprise-wide inventory visibility and fulfilment agility as well as building effective customer loyalty.

THE NEXT FRONTIER BY STAN SINGH, SECRETARYGENERAL OF MRCA Stan shared about the progress of the digital age amidst the pandemic storm and the storm of digitalisation. He adds that the dilemma with retailers currently is where to start the digitalisation journey. Stan explained that despite the size of the business, the retail cycle never changes for all businesses – it comprises sales, analysis, planning, buying, receiving, warehousing, distribution and in-store. Stan highlights key internal challenges businesses face today include lack of overall business visibility, from end-toend, misaligned business and IT processes, the movement of inventory, unknown shrinkages or loss of stocks, fraud detection, systems reliability, and lack in Malaysia Retailer Vol 9 No 3

vendor’s service and industry. Other key concerns include data management, security and controls, data collection, people management, decision-making, and launching effective strategies. Key external challenges faced by retailers include the increasing complexity of business, shifting demographics, household spending and downsizing, changes in social and lifestyle behaviour, and more educated customers. Other key areas of concern include new channel formats, trends and lifestyle changes, targeting selected customers, borderless retail landscape, manpower management and competition, brand building and regulatory compliance. He reminds retailers that digitalisation is not for the future, but is happening now. Stan explains that currently the world, especially the retail industry is experiencing four types of revolution, namely a digital revolution, knowledge revolution,

social revolution and information revolution. With internet capabilities available to the masses, information is available to the general public. Stan says that there are 10 technologies impacting the retail industry namely artificial intelligence (AI), facial recognition, cyber security, augmented/ mixed reality, big data analytics, robotics and automation, voice and video technology, blockchain, internet of things, and Trust architecture. He encourages retailers to embrace the disruption and do it the new way. Stan reminds retailers that customers have unlimited choices today, and knowing customers’ buying habits is a key success factor in the retail industry. He also points out retailers’ need to embrace omnichannel retailing to provide customers with easy access to purchase products and services. In foraying into e-commerce, Stan advises retailers to understand the business terrain, have an idea of

the land mass, consider connectivity infrastructure as well as cost of delivery and cost retention, among others. He adds that five retail trends to consider in the coming years include brand experience, new shopping technologies, chatbots, as well as leveraging on cognitive computing and augmented reality. Stan shares that digitalisation has rocked the foundation of every industry, rewriting the rules of engagement, removing many barriers to entry, widening competition, and overturning business models. He adds that this disruption, which exists at the intersection of widespread sociological, technological and economic change, have been swift and at times ruthless. “The future of business of retail will not be about having a large variety of products, as it has been in the past; rather, it will involve winning over consumers with thoughtful curation of products and experiences and innovations through the eyes of the consumer,” he highlights.

SMART FASHION WORTH BUYING BY DATIN PATRICIA PEE, CHIEF STRATEGIST, AFAB GROUP OF COMPANIES Datin Patricia says that the pandemic has accelerated the digital revolution. She adds that with the retail industry facing challenges to stay in business, the use of technology has helped businesses and consumers to stay afloat and stay in touch. “With the ‘fear of missing out’ (FOMO), the easiest way was to go into e-commerce. But those companies who have gone down the digital road have realised that whatever they envisioned did not come to fruition as expected,” she highlights. That is because consumers are now more sophisticated and business has now gone beyond

Market Info

just e-commerce. “You have to go beyond e-commerce to engage with customers. The reality is that retail digitalisation, because of the sophistication of consumer behaviour, is going to be all about content and engagement,” she adds. She shares that over the last 3 years, AFAB has been developing an innovative application, coupled with global strategies and strong partnerships and alliances with strategic organisations, to ensure that AFAB’s application is able to scale globally. Known as REKA, the application is actually a digital fashion channel with the tagline “Smart Fashion Worth Buying”. The technology in REKA includes an artificial intelligence-driven (AI) virtual tailor which enables consumers to take their own measurements and get their clothes tailored by designers of their choice. “REKA goes beyond e-commerce and has a complete network solution,”

explains Datin Patricia. This technology is meant to reduce waste in the fashion industry. “When people pre-order, fashion labels do not have to mass produce, and there will not be any unsold inventory, and this helps eliminate textile waste,” she adds. “We empower designers to do their business more efficiently, and we enable customers to have their clothes individualised and customised,” says Datin Patricia. She reminds retailers that collecting data is useless unless they know how to make sense of it and use it to make business-sense. She cautions retailers that when engaging customers on a daily basis, it cannot just be all about sales. Therefore, AFAB’s strategy is to provide consumers with the latest news and developments in the fashion industry within the mobile application. REKA is now a trusted Malaysia Retailer Vol 9 No 3

MRCA Event

30 digital platform partner of the Commonwealth Fashion Council and the Council of ASEAN Fashion Designers. Through these partnerships, REKA has access to sellers and buyers in 62 countries across ASEAN and the Commonwealth.

PANEL SESSION: ADAPTING A NEW RETAIL ATTITUDE AND HOW CLOUD-BASED SOLUTIONS ARE TRANSFORMING THE RETAIL SECTOR The session featured Maznan Deraman, Head of Innovative Solutions & Cyber Security Services, TM One, and Eng Chew Han, Business Development Director at Huawei Cloud & AI APAC. MAZNAN DERAMAN In sharing about TM One’s Smart Retail Solutions, Maznan started by touching on the traditional, modern and next generation retail. The traditional retail was manual, while the modern retail comprises some form of automation. However, in the next generation of retail, there is hybrid integration. He added that the next generation of retail will be internet-based and omnichannel as well as AI-driven on an integrated platform with cloud-based solutions. He pointed out that consumers are increasingly embracing digital retail, with a total of 50 percent of Asian population or 16.5 million online shoppers. Brick and mortar stores sales are affected with only 8% growth year-on-year. In charting the digital journey of retailers with TM One’s solutions, Maznan explained that the new generation of consumers would use multiple shopping mediums. He added that having a single integrated platform will enable superior customer experience and allow retailers to offer the latest and on-demand products to their customers. He points out that integrated solutions Malaysia Retailer Vol 9 No 3

hosted on the Cloud is able to help retailers to access comprehensive information of their customers, inventory levels, and operational transactions based on customers’ demands. Maznan shares that in order to ensure a successful digital retail plan, retailers must know their customers, and catch the attention of customers with superior experiences. He adds that the key elements in transforming the brick and mortar retail business into e-commerce centric digital retail includes traffic, cost, users, and technology enablement. On how Cloud can help transform retail into digital retail, Maznan explains that retailers will be able to better manage end-to-end retail operations more efficiently, while improving customer experience driven by data obtained online and offline. He highlights that TM One Smart Retail Platform Ecosystem empowers customers to do targeted marketing activities based on data obtained throughout their user journey. All these data-driven solutions are Cloud-ready and can be easily scaled up and integrated with third-party retail ecosystems. He advises that Robotic Process Automation (RPA) can also be used in the retail industry to improve processing time and reduce human involvement in labour intensive

processes, such as invoicing. With RPA, there is a potential to reduce processing time from 5 minutes to 30 seconds per invoice. ENG CHEW HAN Eng explained how the retail industry has evolved since 1850 to the current landscape. He elaborated that from Huawei’s experience in China’s retail industry, it has entered into the second half of the third sweeping wave of development, which comprises an integration of online and offline retail formats. To leverage on AI and extract information that is useful, Eng explained that Huawei helps e-commerce enterprises to build an accurate user model for individualised recommendation and achieve precision marketing based on in-depth mining and analysis of data such as massive user access and transactions. Key services offered by Huawei include MapReduce Service (MRS), Machine Learning Service (MLS), Deep Learning Service (DLS), Data Ingestion Service (DIS), and Cloud Data Migration (CDM). “The solutions we have today are trackable as long as it is placed in a proper manner,” says Eng. He reminds retailers that when everything is online, consumers are also able to share their experiences with other consumers.

Market Info

Taste of Angkor, A Cookbook That Promotes The Best Of Cambodia alm sugar from Kampong Speu. Pepper from Kampot. The world’s best rice awarded by international judges from 2012 to 2014. These were some of the exports the Royal Embassy of Cambodia in Kuala Lumpur promoted at a luncheon in Pavilion Hotel. Guests were feted to dishes made from the recipes featured in Taste of Angkor, a cookbook launched by the Kingdom’s Foreign Affairs and International Cooperation Ministry in October last year. The event was held in conjunction with its 68th independence day celebrations and its takeover of the ASEAN chairmanship for 2022 — its third time since becoming a full-fledged member of the 10-country bloc in 1999.

Malaysia Retailer Vol 9 No 3

The event also saw the signing of Memorandums of Understanding (MOU) with the Malaysian Retail Chain Association, Malaysian Franchise Association, Small and Medium Enterprises Association of Malaysia and GenYouth, which provides platforms for industry exposure to youths. The signing essentially paves the way for collaborations and opportunities that will mutually benefit its participants. One of them is to facilitate business matching between members of the associations and entrepreneurs in Cambodia. But the main objective is to promote Cambodian cuisine. In preparation for the luncheon, a spokesperson from GenYouth revealed that the embassy’s resident chef had worked with the hotel’s

kitchen team to come up with the menu. The ambassador did the food tasting to ensure the authenticity of flavours were preserved. In a three-course menu, guests were feted to Cambodian favourites such as na tang (rice crackers with peanut and chicken dipping sauce); sach kor sloek ka plu (beef rolls in betel leaves); slab moan bok (stuffed chicken wings); chha kroeung sach kor (beef stir-fried in lemongrass) and sang kya l’pov (pumpkin custard tart). These were eaten with Cambodian Jasmine rice, which the Kingdom exports 50,000 tonnes annually. Two other main ingredients used in the dishes were pepper and palm sugar — they are two of the country’s popular products that have received Geographic Indication

Market Info

Certification from the European Union. “The wheels of popularising Cambodian cuisine has been put in motion, said Cambodia’s Ambassador to Malaysia, Cheuy Vichet. “The hotel’s top management is in the midst of discussing the possibility of featuring a few dishes in their weekend buffets with the embassy chef,” he said. Apart from winning over stomachs, Cheuy added that further encouragement was being given to attract more foreign direct investments by exempting fully vaccinated travellers who are tested negative in 15 minutes Rapid tests on arrival without quarantine, but requires a negative certificate of PCR tests valid for 72 hours before arrival. He encouraged Malaysian entrepreneurs and investors to explore and expand into Cambodia,

particularly in agriculture, food processing, manufacturing, infrastructure and tourism. “If the local market can accept Japanese, Thai and Vietnamese cuisine, they should have no problem with Cambodian dishes,” said Dragon-i Group adviser Datuk Henry Yip. Yip added that palm sugar would be a good ingredient to incorporate into local cendol, as well as the possibility of introducing Cambodian dishes in the company’s industrial catering menu. Eciatto Group executive director Nicole Low said a fusion approach could be employed by cafes. “For example, the chicken dipping sauce in na tang can be combined with pasta or put into a croissant,” she said. Uncle Lim’s Cafe co-owner Goh Kah Lyn said as most of the ingredients used were similar to

those used in Asian cooking, they could be easily incorporated into a menu and packaged as a promotion to diners. For more information, call 03-4257 1150 (Mala Boneary) at the Royal Embassy of the Kingdom of Cambodia or email boneary@ gmail. com.

Malaysia Retailer Vol 9 No 3

Market Info

Mah Sing Recognised as BCI Asia’s Top Ten Developers Mah Sing Group Berhad achieved another significant milestone as the Group was named Building and Construction Asia’s (BCI Asia) Top 10 Developers in Malaysia in 2021, marking the tenth victory for the Group. he coveted award honours the top ten development firms that contributed significantly to the country’s structural growth in the previous year. The winners were chosen based on the total value of their projects from the pretender stage (concept, design and documentation) to the post-tender stage (construction), as well as their efforts to include sustainability into their developments. At the BCI Asia dinner, Kevin Lew, Mah Sing’s Chief Design Officer, accepted the award, saying, “It’s gratifying to be named one of Malaysia’s top ten developers for the tenth time. Mah Sing has established its aim and pillars, and it is totally committed to achieving environmental, social, and governance (ESG) objectives and reaching the United Nations Sustainable Development Goals through its detailed roadmaps (SDGs). Understanding Total Development Lifecycles, from feasibility studies to product development, design planning and optimisation, customer experience, branding and marketing, to final product launching, construction, and vacant possession, is critical to our property business’s longterm viability.” Moving forward, Mah Sing is committed to developing more affordable range development in strategic locations. Mah Sing’s Founder and Group Managing Director Tan Sri Dato’ Sri Leong

Malaysia Retailer Vol 9 No 3

Hoy Kum said, “We will continue to focus on an affordable range of high rises in CBD like M Luna and M Adora, and affordable landed products in suburban/outskirts like M Aruna. We will continue to focus on our M Series items, which are in a lower price range and hence more accessible to the people.” BCI Asia’s award is measured by the efforts from developers in shaping the positive social and environmental impact in

development, as well as the healthy Gross Development Value (GDV) of the project. As such, the three projects (M Oscar, M Luna and M Adora) from the M Series have been shown to have a healthy take-up rate. M Oscar has a 79% take-up rate, with an RM505 million estimated GDV; M Luna has a 90% take-up rate, with an RM705 million estimated GDV; and M Adora has a 90% take-up rate, with an RM378 million estimated GDV.

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MRCA News

36 A MRC

Malaysia Retailer Vol 9 No 3

MRCA NEWS THAT APPEARED IN THE MEDIA RECENTLY

2022 EVENTS CALENDAR JAN 21

JAN 11 CHINESE NEW YEAR CHARITY VISITATION (FOUNDATION) VENUE: TBA

JAN 12 CEO GETTOGETHER VENUE: STAR MEDIA GROUP

MRCA CHARITY GOLF 2022 VENUE: TROPICANA GOLF & COUNTRY RESORT

FEB 18 MRCA’S 30TH ANNIVERSARY – A REJOICING CELEBRATION VENUE: ONE WORLD HOTEL

APR 5 MAR 25 MRCA MEMBERS MEETING

CEO NIGHT 2022 VENUE: TBA

APR 21 MRCA AGM 2022 VENUE: TBA

VENUE: TBA

Malaysia Retailer Vol 9 No 3

MRCA Calendar

Malaysia Retailer I Vol9 No3 I Solution Risk Group Dato Winnie Lim

Articles inside

Mah Sing Recognised as BCI Asia’s Top Ten Developers

Smart Retail Webinar: Embrace To Survive The Digital Storm

New Members

Restructuring Today For A Rapid Recovery Tomorrow

MRCA Sponsored RM10,000 as Deepavali Charity Giving At Rumah Kebajikan Karunai Illam

MRCA F&B Chapter Hosts Christmas & New Year Bash

How The Government’s 2022 Budget Can Help You Rebuild or Drive Your Business Forward

Drive More Revenue with E-Commerce Best Practices

New Myvi Launched With 4,303 Units Booked

President‘s Message

MRCA Women Division: Malaysia’s Future Economy Outlook

A Winnie Solution for Parcel During Delivery Process

Your Digital Move – Business Funding