SME MALAYSIA 2014 (13th Edition)

SME MALAYSIA 2014

Contents <<<<<<<<<<<<<<<<< Messag e 5 Prime Minister of Malaysia

YAB Dato’ Sri Mohd Najib bin Tun Abdul Razak

6 Minister Of Domestic Trade, Co-operatives & Consumerism Dato’ Hasan Bin Malek

8 Minister of International Trade and Industry Dato’ Sri Mustapa Mohamed

9 Chief Executive Officer of SME Corp Malaysia Dato’ Hafsah Hashim

10 President of Small and Medium Enterprises Association (SAMENTA) Malaysia Koay Chiew Guan

E dit or ia l

11

Overview of SMEs in Malaysia

12

SME Masterplan 2012 - 2020

15 18

Malaysia SMEs At A Glance Incentives & Fundings for SMEs Initiatives, Incentives & Support - Malaysia External Trade Development Corporation (MATRADE) - National SME Development Council (NSDC) - SME Corporation (SME Corp) - SIRIM Berhad - Selangor State Investment Centre Berhad (SSIC) - Small and Medium Enterprises Association (SAMENTA) Malaysia

21 24 25 26 28 31

36 37 42 45 48 51 56 60

Starting Up Starting A New Business What Is Business Plan?

Getting Your Business off the Ground: - Financial For Starting Up - Right Location & Setting Up Your Office - Intellectual Property - Managing Waste - Education & Training

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SME MALAYSIA 2014

63 64 68 71 76 79 81 83 88

89 90 92 94 96 100 104 107

112 113 116 120 121 123 127 129 132 135

Expanding SME Loans & Grants For Business Expansion Human Capital - Powerful Asset For Business Growth Risk Management Brand Your Business Supply Chain Management Cloud Computing: Cost Saving & Effective Productivity Labour Customer Relationship Management (CRM) For SMEs

Globalisation Going Global SME Loans & Grants for Export Market The World Is Your Market: - Embracing Business Tourism - Franchise Your Business - E-Commerce Is Emerging Business - Innovative in Business For Competitive Edge What is ISO?

Special Focus Going For A Halal Business - Funding, Support & Assistance For Halal Businesses Business in Agriculture - Agribusiness - Funding, Support & Assistance For Agribusiness Green Technology - Supporting Green Technology All About Biotechnology - Supporting Biotechnology Budget 2014 Highlights for SMEs

P roduc ts & Se rv ic e s S e c t i o n 140

Products & Services Listings

U seful C o n ta cts 251 251 251 252 252 252 254 256

Ministry of International Trade & Industry (MITI) Malaysia External Trade Development Corporation (MATRADE) SME Corporation Malaysia (SME Corp) National Chamber of Commerce & Industry of Malaysia Port Authorities Shipping Associations and Institutions Funds & Advisory Services for Small and Medium Enterprise Advisory Services for SMEs

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SME MALAYSIA 2014

MANAGEMENT Executive Director

Edwin Ng Kit Keong

BUSINESS DEVELOPMENT Manager Officer

Jeralyn Tan Hui Shing Masni Md Noor

SALES Director of Sales Senior Manager Manager Executive

Dawson Kan Lawrence Lim Tee Hoon Tiong May Koh

FINANCE & CREDIT Manager Executive

Anne Quah Ang Lai Kim

EDITORIAL & CREATIVE Writer Designer

LEGAL ADVISORY Legal Advisor

The SME Malaysia features practical articles and news in fresh, easy to read articles - capturing and delivering the moments in businesses; Insightful and useful knowledge which entrepreneurs can leverage on to compete successfully and distinguish effectively the business and news for an exciting breed of SMEs & SMIs in Malaysia.

Jessica Low Hanny Hamid Choy Wai Ling

SME Malaysia is the only business annual that reach to SMEs in both Malaysia and Singapore.

GET YOUR COPY NOW!

Gary Ng Kit Min

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is published by Tourism Publications Corporation Sdn Bhd. Tourism Publications Corporation Sdn Bhd is a subsidiary of Integrated Information Sdn Bhd. All rights reserved. No part of this publication may be reproduced in whole or in part without the written permission of the publisher. While every care is taken in gathering information for this book and ensuring its correctness, the publisher disclaims responsibility for any inaccuracies, errors or omissions.

The publisher is not responsible for responses or non-responses to any party mentioned in this book, nor with regard to any changes in details made, or any additions or corrections made after the closing deadline for copy and editorial, or changes requested after the closing deadlines by buyers of listings or their representatives.

Permit No. PP 14463/05/2013 (032722)

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SME MALAYSIA 2014

Prime Minister of Malaysia

Small and Medium Enterprises (SMEs), being the backbone of the country’s economy, can contribute significantly towards the Government’s aspiration in becoming a high income nation by 2020. SMEs are encouraged to be more dynamic and make optimum use of all the opportunities provided by the Government to expand and strategies their businesses.

The Government’s new definition for SMEs, taking effect on 1 January 2014, will see an increment in the number of SMEs from the present 97.3% to 98.5%. This new definition also involves a ‘breakout strategy’ for micro enterprises which will be streamlined further.

The Government’s track records in SME development, assistance and support have always been strong. This panel is in tandem with objectives to raise the SMEs’ contribution to GOP to 40% from the present 33%.

Change can only happen if efforts by the Government are fully embraced and enhanced by the private sector such as SMEs. In addition to Government’s continuous support, SMEs also need to improve their efficiency through the reduction in production costs while lifting the brand image of their products and services, particularly in times of economic turbulent and a highly competitive world economy.

I urge SMEs to rise above and go beyond their comfort zone by exploring opportunities that are abound.

My heartiest congratulations to Tourism Publications Corporation Sdn Bhd for the 13th edition of this publication.

YAB Dato’ Sri Mohd Najib bin Tun Abdul Razak

Message <<<<< A National Smalland-Medium Enterprise (SME) Advisory Panel will also be established to give relevant inputs and formulate entrepreneur strategies in efforts to create world-class SMEs.

1Malaysia “People First, Performance Now”

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SME MALAYSIA 2014

Minister of Domestic Trade, Co-operatives and Consumerism SMEs, including start-ups form an important pillar of the country’s economy. They are one of the main drivers of employment and GDP growth of our country, playing an important role in the diversification of our nation’s economy. SMEs need to reinvent themselves as failure or reluctance to do would risk being driven out of business.

KPDNKK, in realising and recognising the importance of adapting has helped more than 1,000 local sundry shops through the Small Retailer Transformation (TUKAR) initiative which began back in 2011. TUKAR is one of the 131 Entry Point Projects under the Economic Transformation Programme to modernise traditional retail stores thus enhancing their competitiveness. TUKAR is expected to contribute an estimated amount of RM5.56 billion to the GNI and create a total of 52,500 job opportunities by the year 2020.

Dato’ Hasan Bin Malek

>>>> Message The support and assistance to SMEs are aimed to help them strengthen their business competitiveness and expand globally so that they are able to contribute significantly to the country’s economic agenda.

The Ministry has been consistent in supporting our nation’s Small and Medium Enterprises as can be seen from our various initiatives like the Buy Malaysian Products Expo, MalaysiaIndonesia Business Expo in Jakarta which is a franchise programme and the Taste of Malaysia Programme conducted in South Korea. These initiatives are geared to open opportunities for our local companies to market their products and services overseas and at the same time act as an exposure to our SME’s in preparation for them to be globally competitive.

Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) is also helping SMEs to market their products to hypermarkets based here in Malaysia. The main objective of this programme is to provide a platform for SMEs to market and promote their products directly to Malaysian consumers with the assistance of local and foreign hypermarkets based here. To be part of this programme SMEs would have to first fulfil the criteria set by the “Guidelines on Listing of SME Products into Hypermarkets” which is made available at KPDNKK. Additionally, the Government are also committed to the development of intellectual property especially amongst SMEs to expand and innovate their businesses and products. The Ministry in cooperation with the Intellectual Property Corporation of Malaysia (MyIPO) plans to organise a global Intellectual Property Valuation Conference to discuss and share best practices in the field.

I urge all SMEs to invest in upgrading their workforce in terms of skills, enhancing their innovation processes and to fully harness on all the schemes and programmes that the Government, notably KPDNKK has provided, to step up on their productivity and expand their businesses.

The Ministry is making every effort and initiative to promote and develop home-grown businesses like franchising, we believe that given the right incentives and ecosystem, local businesses have the huge potential and capacity to export their business and evolve into internationally recognised brands. The testament to our commitment would be the setup of the Franchise Development Assistance Fund which provides financial assistance as an incentive for businesses to jump into the franchising industry and making it as the platform to expand their businesses locally and internationally.

Last but not least I would like to congratulate Tourism Publications Corporation Sdn Bhd for the successful publication of this magazine which is specifically dedicated to SMEs in the country.

It is my hope that SME Malaysia can serve as an information provider for all SMEs and act as a bridge between our ministry to the industry.

Once again congratulations and Assalamualaikum.

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SME MALAYSIA 2014

Minister of International Trade and Industry SMEs are crucial to the development of the Malaysian economy. As we forge ahead on the path to becoming a developed nation, it is imperative that SMEs take measures to enhance their efficiency and productivity so that they can strengthen their position in local and international markets.

While improving profitability should be the goal of any company, organizations should also pay attention to human capital development as its workforce is the key to their success.

The government has come up with various programmes to help SMEs improve their competitiveness. The Business Accelerator Programme (BAP) and the Enrichment and Enhancement Programme (E2) are designed to help SMEs develop their potential.

Datoâ&#x20AC;&#x2122; Sri Mustapa Mohamed

>>>> Message A highly skilled and competent workforce is integral to Malaysiaâ&#x20AC;&#x2122;s economic growth.

The Skills Upgrading Programme focusses on developing a wide range of skill for SME employees, including technical and managerial skills. We have established training centers nationwide. This programme is based on a Tokyo SME University model and seeks to enhance the management skills of entrepreneurs and senior management of SMEs. The course is also designed to help SMEs improve their overall competitiveness and break into the export market.

Together I urge everyone to strive forward in our transformation journey towards becoming a high-income nation.

Thank you.

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SME MALAYSIA 2014

Chief Executive Officer of SME Corporation Malaysia Congratulations to the Tourism Publications Corporation Sdn Bhd for successfully publishing the SME Malaysia 2014.

SME Malaysia is one of the platforms that significantly serve as a reference for both the public and private sectors, in identifying relevant companies for possible market expansion and joint ventures both domestically and/or internationally. It undoubtedly provides a platform of endless potentials and possibilities for SMEs to seize the opportunities that are abound beyond boundaries.

In 2012, SMEs continued to record an encouraging performance, with real GDP growth of 6% amidst a difficult external environment, thus raising further the contribution of SMEs to the economy to 32.7% of GDP. Prospects are for SMEs to expand further by 5-6% in 2013. The SME growth trend which supersedes the overall GDP growth of the country is a testimony that Malaysian SMEs are indeed more resilient, agile and capable of adapting to changes in the market place as compared to their larger counterparts. Hence, the importance of SMEs cannot be underestimated, moreover as they are expected to assume an ever increasing and important role for Malaysia to make the quantum leap growth that is essential for the country to achieve a high-income nation status by 2020.

The implementation of new policies - Minimum Wages, Competition Act, Minimum Retirement Age and the recently announced GST - is underway as the nation prepares itself for a more competitive environment to achieve a high income nation. The new policies would necessitate SMEs to make appropriate adjustments in their business operations in order to unleash their full potential for greater possibilities. The focus is on adopting technology and innovation, as well as, enhancing productivity through process improvements and greater mechanisation, in line with the aspiration of the SME Masterplan (2012-2020).

An important recent development pertaining to SMEs is the new SME definition which will come into effect on 1 January 2014. The revision takes into account changes that have taken place in the economy since 2005 and to ensure that the definition is relevant as the Masterplan is being rolled out. In addition, the review was also to support the countryâ&#x20AC;&#x2122;s transition to a services-based economy, whereby the share of services sector to GDP is expected to rise to 65% by 2020.

The upward revision in the definition has enabled more businesses to have accessed to SME programmes. Following the revision, SMEs will comprise 98.5% of the total establishments in the country, compared to 97.3% currently.

At the same time, we need to ensure that the ongoing economic reforms and cyclical factors do not bring about undesirable effects and destabilise the growth of SMEs. I, therefore, urge all SMEs to change their mind set and way of doing business to rise to this challenge and welcome every aspect of growth through positive transformation!

Congratulations once again and may SME Malaysia 2014 continue to serve as an enabler for SMEs and entrepreneurs to find many business opportunities that are available out there, with the fervent hope that they will achieve greater heights of growth and success, and ultimately, enhance their contribution to the overall economy of the nation by the year 2020.

Thank you.

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Datoâ&#x20AC;&#x2122; Hafsah Hashim

Message <<<<< The Governmentâ&#x20AC;&#x2122;s commitment in driving SME development is evident through its catalytic and facilitative role in creating a more conducive environment for business to thrive.

SME MALAYSIA 2014

President of Small and Medium Enterprises Association (SAMENTA) Malaysia We welcome everyone to a Happy and Prosperous 2014 Horse Year.

At the local front, despite the announcement in implementing the Goods and Services Tax (GST) and recent increase in petrol pricing, electricity tariff as well as other products and consumables, there are still signs of an improved global outlook in 2014. The projected growth rate is expected to be stronger with a growth of 5% to 5.5%, led by private investments and private consumptions, being projected to expand by 12.7% and 6.2% respectively. As for the construction and services sector, it is expected to continue to outperform other sectors and to grow by 9.6% and 5.7% respectively. The export sector will observe a slow recovery pace of 2.5%.

Koay Chiew Guan

>>>> Message The ASEAN Economic Community (AEC) will be the goal of regional economic integration by 2015 which is similar to what is found in the European Union (EU).

The implementation of GST is expected to take place on 1st April 2015. SMEs must practice proper book keeping, invest in accounting software and at the same time understand that the Government is providing financial assistance amounting RM150 million for the necessary purchase and upgrading of software in 2014 and 2015.

At present, a large portion of SMEs are still not prepared or might have very limited knowledge on the complication of GST and it is greatly appreciated if the Government could organize more dialogues and talks with trade associations and their members.

Through these sessions, the members will be given a channel to voice out their concerns and at the same time to allow the Government to further educate and build up the confidence of the SMEs in using the GST system.

SMEs must accept the reality that Malaysia will be part of an economic community with free trade areas, therefore SMEs must be prepared for stiffer competitions from the neighbouring countries. SAMENTA will be organizing several trade missions to the ASEAN Region and will be arranging business matching session for SMEs to establish strategic partnerships to enhance and expand their businesses.

SAMENTA will also be organising trade missions to India, Taiwan, South Korea, Japan and Europe, at the same time arranging business matching sessions with business people of relevant trade to establish a platform for SMEs to exchange their business ideas, cooperation and possible business tie-ups or technology transfer to our local companies.

We, at SAMENTA sincerely hope that more SMEs will support our programs and looking forward to your active participation in our future activities.

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SME MALAYSIA 2014

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • SME Masterplan >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Overview of SMEs in Malaysia

   

SME Masterplan 2012 - 2020 Malaysia SMEs At A Glance Incentives & Fundings for SMEs Initiatives, Incentives & Support - Malaysia External Trade Development Corporation (MATRADE) - National SME Development Council (NSDC) - SME Corporation (SME Corp) - SIRIM Berhad - Selangor State Investment Centre Berhad (SSIC) - Small and Medium Enterprises Association (SAMENTA) Malaysia

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p12 p15 p18 p21 p24 p25 p26 p28 p31

SME MALAYSIA 2014

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • SME Masterplan >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

SME

Masterplan 2012 - 2020 The SME Masterplan signifies a new beginning in SME development in Malaysia. ...........................................................................................................................................

The SME Census 2011 revealed that there are 645,136 SMEs in Malaysia, making up about 97.3% of total business establishments in the country. SMEs contribute significantly to Malaysia’s gross domestic product (GDP) and employment market; 59% to employment and 32% to the country’s GDP.

Hence the birth of the SME Masterplan (2012-2020). It is a modern approach to steer SMEs to the next level through growth acceleration in productivity gains and innovation. The goal is for SMEs to achieve an average GDP growth of 8.7% per annum for the period 2012 – 2020. This is aptly depicted in the theme of the Masterplan itself, “Catalysing Growth and Income”.

While these figures and data look impressive on their own, SMEs’ contribution to the overall economy still lags behind those in developed nations.

KEY CHALLENGES FACED BY SMEs As outlined in the Masterplan, these are the key challenges faced by SMEs:• Innovation & Technology Adoption • Access To Financing • Legal & Regulatory Environment • Human Capital Development • Market Access • Infrastructure

Larger companies may leverage on their financial strength and capacity to grow but SMEs usually do not find it easy to expand their businesses, mainly due to their limited resources and constraints. Spoon-feeding is never a sustainable and viable solution. There has to be a concerted effort to boost and help local SMEs to grow and successively, not only increase their contribution to the country’s economy but to improve their own production and efficiencies.

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SME MALAYSIA 2014

THE NEED FOR A SME MASTERPLAN

The SME Masterplan focuses on developing high growth SMEs that are resilient towards the effects of globalization. SMEs are hoped to be self-enabled to spearhead the economy.

Micro enterprises which make up the bottom 40% shall be developed and formalized.

SMEs have performed well in recent years. The GDP of SMEs expanded at an average annual growth rate of 6.8% which was far above the average overall annual GDP growth rate of 4.9% for the period 2004 – 2010. The decision by the National SME Development Council (NSDC) was made after seeing that SMEs made a 32% contribution to the Gross Domestic Product (GDP) and recording an annual growth of 9.2% which was higher than the growth of the national GDP.

The vision to create globally competitive SMEs is executed and accomplished through these four strategic goals:• To increase business formation to facilitate business dynamism through a continuous flow of new entrants into the market.

• To expand the number of high growth and innovative firms as they generate substantial share of employment and output in the country as well as having the scale and potential to be globally competitive.

• To raise labour productivity of SMEs to boost incomes and raise standards of living.

• To intensify formalisation to encourage innovation, growth and promote fair competition.

Instead of being complacent and cocooned in a comfort zone, the country needs to transform the economy in order to achieve a high income status nation by 2020. SMEs’ role is crucial as they not only form the largest number of business establishments in the country, but are also the source of growth of private sector activities.

Successful implementation of the SME Masterplan will see, by 2020: • An increase in the GDP to 41% from 32% in 2010.

• An increase in employment from 59% in 2010 to 62%.

• An increase in exports to 25% from 19% in 2010.

• A Masterplan specifically targeting these small and medium companies will give a shot in the arm to a significant number of businesses in the country.

It was also proposed that there is a need to strengthen the institutional support to ensure successful implementation of the SME Masterplan. This includes: • Realiable Database • Monitoring & Evaluation • Effective Coordination • Effective Business Services

INSIDE THE SME MASTERPLAN 2012 – 2020

GOALS & TARGET OF THE SME MASTERPLAN

The SME Master Plan is divided into two phases:• The First Phase comprises of a new SME Development Framework as well as broad policies and strategies to achieve the goals of the New Economic Model (NEM).

• The Second Phase undertakes to look into the specific action plans and the monitoring mechanism.

• To increase business formation from 2.4% (2005 – 2010) to 6% (2012 – 2020).

• To expand the number of high growth and innovative firms with a targeted annual increase of 10%.

• To raise productivity from RM47,000 per worker in 2010 to RM91,000 in 2020.

• To intensify formalization and reduce the informal sector from 31% of Gross National Income (GNI) in 2000 to 15% in 2020.

The Masterplan also identified new growth opportunities for SMEs in these areas:• Tourism • Wholesale & Retail • Financial Services • Healthcare • Palm Oil • Communication Contents & Infrastructure • Business Services • Oil, Gas & Energy • Electrical & Electronics • Education • Agriculture

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<OVERVIEW OF SMES IN MALAYSIA • SME Masterplan <<<<<<<< 13

SME MALAYSIA 2014

6 HIGH IMPACT PROGRAMMES (HIPs) • HIP 1 - Integration Of Registration & Licensing Of Business Establishments To create a single registration point through interfacing the current National Business Registration System (i.e.

MyCoID) and the National Business Licensing System (i.e.

BLESS). This move will simplify procedures and reduce the time and costs in starting a new business. Formalization will also be enhanced as registration is mandated as a prerequisite for licensing.

• HIP 2 - Technology Commercialization Platform

(TCP) To establish a national network of privately-managed platform to promote innovative ideas from proof of concept to commercialization. TCP seeks to remove market barriers to innovation by providing linkage to services like infrastructure support, financing, technical assistance, market information and capacity building.

• HIP 3 - SME Investment Programme To provide early stage financing through the establishment of investment companies to invest in potential SMEs in the form of debt, equity or a hybrid of both. This aims to accelerate the growth of the venture capital industry that can support start-ups, especially innovative SMEs.

MEASURES ACROSS 4 THEMES • • • •

• HIP 4 - Going Export Programme To offer customized assistance to new exporters and SMEs venturing into new markets. Export-ready SMEs can benefit from a comprehensive support which includes bonding with market experts and buyers and compliance to standards to expedite internationalization of products and services.

Resource pooling & shared services Create demand for SME products Reduce information asymmetry Building capacity & knowledge

MEASURES FOR EAST MALAYSIA • Improve connectivity & basic amenities • Review restictive laws & policies • Ease market access

• HIP 5 - Catalyst Programme To create homegrown champions through a targeted approach with relevant support in the area of financing, market access and human capital development. The programme will have a transparent selection criteria and exit mechanism.

OTHER MEASURES • Completion of Integrated trade clearance and facilitation system (single window) • Bankruptcy Law to give entrepreneurs a second chance Synchronise measures on productivity enhancement technologies with other relevent labour policies

• HIP 6 - Inclusive Innovation To empower the bottom 40% of the income group to leverage on innovation. The programme will promote the transformation of rural communities through a hand holding approach as well as financial, technical and management support.

(Source: SME Corp. Malaysia)

SME

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • SME Masterplan >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 14

SME MALAYSIA 2014

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • Malaysia SMEs At A Glance >>>>>>>>>>>>>>>>>>>>>>

Malaysia

SMEs At A Glance There are over 640,000 SMEs operating in Malaysia, representing 97.3% of total business establishments in the country. ...........................................................................................................................................

In 2005, the Malaysia SME Development Council has defined SMEs based on two criteria, either the annual sales turnover or the number of full-time employees of a business.

Previously...

Annual Sales Turnover

Number of Full Time Employees

Micro

less than RM250,000

less than 5 persons

Small

between RM250,000 - less than RM10 million

Medium

between RM10 million - RM25 million

Category

5 - 50 persons 51 - 100 persons

In July 2013, the Prime Minister, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak announced a new definition for SMEs effective 1 January 2014.

The National SME Development Council’s decision to raise the qualifying threshold for sales turnover and employment of SMEs for all economic sectors is seen as timely given the changes that have taken place since 2005. These changes include price inflation, structural shifts in the economy and changing business trends. The new definition is more comprehensive to cover all sectors including construction as well as mining and quarrying sectors.

New...

Category

Micro

Small

Medium

Manufacturing

Services & Other Sectors

Sales turnover of less than RM300,000; OR Employees of less than 5

Sales tumover of less than RM300,000; OR Employees of less than 5

Sales turnover from RM300,000 to less than RM15 million; OR Employees from 5 to less than 75

Sales turnover from RM300,000 to less than RM3 million; OR Employees from 5 to less than 30

The review of the definition is in tandem with proposals under the SME Masterplan to ensure that the definition still remains relevant as the Plan is rolled out. The definition across the various sizes of establishment namely micro, small and medium has also been adjusted upward. For instance, micro enterprises which make up close to 80% of the total SMEs, the new definition is expected to result in more business entities being classified as SMEs, especially from the services sector.

The new definition was decided based on a comprehensive review that took both the top-down and bottom-up approaches which included technical stimulations, global benchmarking and stakeholder engagement.

Sales turnover from Sales turnover from RM3 million RM15 million to not exceeding to not exceeding RM50 RM20 million: million: OR OR Employees from Employees from 5 to not exceeding 200 30 to not exceeding 75

Consequently, the share of SMEs to total establishments is expected to increase from the current 97.3% to 98.5%.

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SME MALAYSIA 2014

• Small numbers of high growth firms contribute the most to the economy. Findings showed that the fastest growing firms accounted for 70% of the additional GDP and 46% of the additional employment created during the period 2000 – 2005.

• Material share of informal sector in the economy. It is estimated that the informal sector accounts for 31% of Gross National Income whereas in developed countries such as Singapore and US, they stand at 13% and 9% respectively.

• Businesses are managed and operated by owners. The founder often leads the company and acts as both manager and worker. Decision making and development of the business are made mostly by the owner or entrepreneur.

• Resources are often limited especially for new start-ups due to a lack of track record on business to convince potential investors and financier. As such, they are highly dependent on owners’ abilities to generate resources.

This new approach has also resulted in better clarity in the definition of SMEs in the country. SMEs are defined as business entities registered under the Companies Commission of Malaysia (SSM) or equivalent. Subsidiaries owned by holding companies, either public-listed or large, are not considered as SMEs due to the strong support from their parent companies in terms of access to financing, technology, management, markets etc.

• The organisational structure is often informal, simple and flat. The owner has to do almost everything, lending to the phrase “one leg kick” among industry players. Workers are normally relegated to a supporting role as generalists since there is seldom clear demarcation of tasks or duties.

A large percentage of SMEs in Malaysia are micro-enterprises which means that only a very small number of SMEs actually make significant economic contribution to the country. Of the total number of SMEs in the country, about 20% of them are in the medium segment and they provide up to 80% of the contribution from SMEs in Malaysia. These telling data speaks volume about the actual economic contribution of SMEs in ratio to their large numbers.

SMEs IN MALAYSIA The study for the SME Masterplan 2012 – 2020 has revealed the following facts about SMEs in Malaysia, some which also form part of the basic characteristics of Malaysian SMEs. • Lower productivity as compared to larger firms in Malaysia, which is about one-third the productivity of large domestic firms. In contrast, SMEs in Singapore are four times more productive than Malaysian SMEs. The low productivity is mainly due to current economic structure where there is a high concentration of micro enterprises in the distributive trade services sub-sector which is seen as dampening the overall productivity in the services sector.

The current SME landscape in Malaysia warrants greater effort in implementing plans that have been laid out for them to ensure that companies do not just grow in size and numbers but can ultimately contribute to the country’s revenues.

According to the Census too, some 14% of the medium-sized companies that existed in 2000 grew to become large firms by 2005. However, a comparable share of large companies also fell back into the small and medium category.

• Relatively low business formation compared to high income countries. Malaysian businesses comprise mainly of sole proprietorships and partnerships as compared to private limited companies. According to statistics by the Companies Commission of Malaysia (SSM), the majority or 78% are sole proprietorships and partnerships. This is opposed to large enterprises where a majority 94% is private limited or public listed companies.

The SMEs in Malaysia is commonly distracted by regular hindrances that affect their operations, incomes and in many instances, their very existence. Rising raw material and input costs, cash flow restraints as well as increasing overhead costs are plaguing th. established and what more the new generation of emerging SMEs. These limitations deter further

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • Malaysia SMEs At A Glance >>>>>>>>>>>>>>>>>>>>>> 16

SME MALAYSIA 2014

expansion of their businesses. As such, many find themselves just tag and drag along with the waves rather than make ambitious or drastic changes to their business nature. This is much prevalent in sectors like agriculture, manufacturing and services.

SMEs in Malaysia must be aware of and have to embrace changes that are happening every moment, not only in Malaysia but across the world. Ride the tide, as the saying goes. Making the most of technology and innovation is a start, such as using the social media. Companies must be accessible through social media to engage with customers openly as this encourages consumers to spend money with them. If you do not connect with your customers, their money will not connect with you too.

Hence, the use of technology is still relatively low and slow.

This poses another problem in productivity. The dependence in manual labour, especially in hiring cheaper foreign labour is still evident in most SMEs which hamper business growth and sustainability. This presents a challenging situation to SMEs to adjust and adapt their operations for the inception of the minimum wage for foreign workers which comes into effect on 1 January 2014 as announced by the National Wages Consultative Council (NWCC). In addition, SMEs are not allowed to deduct any levies, accommodation and other allowances from the salaries of their foreign workers. With a minimum wage set at between RM800 to RM900 per month for private-sector employees, SMEs indeed have a lot of adjustments and adaptation to consider.

SMEs are, as seen by these government-led incentives, a high priority group. Government wise, there are clear initiatives reflected in the current national development agendas.

• The Economic Transformation Programmme (2011– 2020) where the governmen. identified 12 National Key Economic Areas (NKEAs) to bring out the potential of SMEs in areas where Malaysia has comparative and competitive advantages. A total of 131 Entry Point Projects have been allocated under the NKEAs of which an estimated 60% of the initiatives are poised to benefit SMEs across all economic sectors.

SMEs have long been advised and encouraged to enhance workers’ knowledge and skills, their competitiveness and embrace innovation as the “rule of thumb” for continued success.

• Third Industrial Master Plan (IMPO3) 2006–2015 aims to achieve long-term competitiveness through transformation and innovation of the manufacturing and service sectors to become globally competitive. A total of ten strategic thrusts categorized into three broad spectrums have been developed. It also involves the identification of 12 target growth industries in the manufacturing sectors and 8 services sub-sectors for further development and promotion.

• The 10th Malaysia Plan (10MP) 2011–2015 has been formulated in line with the New Economic Model. 10MP contains new approaches to transform Malaysia to become a high income, high productivity and developed economy by 2020. It aims to encourage private sector investments growth at 12.8% annually.

• SME Master Plan 2012–2020 has been launched through the 13th National SME Development Council meeting.

The Plan sets to define the policy direction of SMEs in all sectors by implementing 32 initiatives that include 6 high impact projects which will promote the SME sectors.

(Source: Performance Management & Delivery Unit, Prime Minister Department & SME Corporation Malaysia) SME

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SME MALAYSIA 2014

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • Incentives & Fundings for SMEs >>>>>>>>>>>>>>>>>>

Incentives

& Fundings for SMEs Small and medium enterprises (SMEs) are often portrayed as having lack of capital and often unable to access the same kinds of funding available to larger enterprises. ...........................................................................................................................................

Results from the SME Census 2011 showed that; • 55.9% of SMEs sourced their finance from internally generated funds or from shareholders to finance their operations.

• 47.7% of medium-sized firms were able to source their funds from financial institutions, including commercial banks, micro-credit organizations and development financial institutions.

• For micro enterprises and small-sized firms, their main source of funding was from their internally-generated funds.

SMEs across all sectors face more or less the common obstacles or constraints when seeking financing from banking institutions. Top of the list should be the lack of collateral, followed by insufficient loan documentation and lack of financial track records as well as business viability. Many of the grouses from SMEs are related to long processing time as their major deterrent and hurdle.

PARTNER – A SME INITIATIVE PARTNER is a phased SME initiative by the Association of Banks in Malaysia (ABM) and its member banks to support the growth and development of Malaysian SMEs.

The Census results indicated that the smaller the size of the business entities, the greater the working capital requirements.

About three quarter (75.6%) of SMEs financing was for working capital; 34% of micro enterprises, 23% of small enterprises and 18% of medium enterprises require capital financing.

Other main activities cited for the main purpose of financing were the purchase/lease of equipment and machinery, vehicles, computer hardware and software, and land and buildings. More medium enterprises require financing for project financing and improvements or upgrade of production processes compared to small and micro enterprises.

Phase 1 which was launched on 1 November 2010 aims to streamline and simplify the processes and procedures of applying for a SME loan.

Phase 2, launched at the end of 2012 sets to further refine or pursue other areas of improvement in providing access to financing like; • Shortening the time line in Phase 1 for straightforward cases.

• Simplifying and streamlining the processes and procedures for non-straightforward cases which require CGC’s approval.

• Addressing the purported lack of transparency of banks in disclosing reason(s) for loan rejection.

At the same time, the financing needs of SMEs are generally the same with micro-enterprises at 74.6%, small-sized firms at 77.8% and medium-sized firms at 77.8%.

Under Partner 2, a timeline has also been set for SME loan applications endorsed by the Credit Guarantee Corp Malaysia Bhd to not go beyond a maximum of 52 days, thereby allowing SMEs to plan ahead.

In order to reduce the instances of loan rejection due to insufficient prior homework done by SMEs, business owners are advised to at least know the basic documentation required for their loan applications. The following are some standard documents generally required by banks for submission for SME loan applications. The list is not exhaustive as different banks may require different documentation (additional) on a case to case basis.

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SME MALAYSIA 2014

Additional documents may be requested by the banks to support the application, mostly on a case to case basis depending on the types of loan, amount and purpose of financing, repayment option, etc.

• Projected cash flow for the next 3 years • Relevant tax returns and tax receipts of directors / partners / guarantors, etc • Product brochures • For CGC loans, a copy of the CGC application form • Relevant permits or licences • For property financing – where applicable, applicants may have to produce copies of Sale and Purchase Agreement (in absence, a copy of the booking receipt), valuation report, title deed, insurance policy, latest quit rent and assessment, tenancy agreement, etc • For project / construction / bridging financing - where applicable, applicants may need to furnish copies of letter of awards / contracts / dealerships, list of completed, ongoing and tendered projects, construction costs, feasibility report, relevant approvals and licenses, etc

Where the applicant is a private limited company (Sendirian Berhad) • Certified true copy of the Certificate of Incorporation • Certified true copy of the Memorandum & Article of Association • Copies of Return on Allotment of Shares (Form 24) • Copies of Return of Particulars of Directors (Form 49) • Photocopies of NRIC of directors and/or guarantors, where applicable • Profiles of company, key management and company organization chart • Information on subsidiary / parent company • Personal financial and credit information of directors / shareholders / guarantors and evidence of income i.e.

Form J for the past 2 years • Audited company accounts for the last 3 years • Management accounts for the period between last audited period to current • Bank statements for the last 6 months • List of securities and facilities from other financial institutions • Current Debtors and Creditors Aging Report • List of top 10 suppliers / purchasers • List of major competitors

Where the applicant is a sole proprietor / a partnership / an individual • Certified true copy of the Business Registration Form (Form A for sole proprietorship or Form B for partnership) and Business License (Form D) • Copy of Partnership Deed, if applicable • Photocopy of NRIC of proprietor / partners / guarantors • Profiles of company and key management • Information on other business, if applicable • Personal financial and credit information of directors/ shareholders/guarantors and evidence of income i.e. Form J for the past 2 years • Audited company accounts for the last 3 years • Management accounts for the last 3 years • bank statements for the last 6 months • List of securities and facilities arrangement from other financial institutions • Current Debtor and Creditor Aging Report • List of top 10 suppliers / purchasers • List of major competitors, where applicable It is worth noted that most financial institutions are agreeable in general to lend and continue to extend financing to viable businesses, SMEs or otherwise. Criteria such as management strength, financial standing and exposures, business risks, repayment capability and capacity are all contributing factors in influencing financial institutions in their consideration.

Banks, like anybody else, are willing to lend if they are assured that repayments can be made.

(Source: Bank Negara Malaysia & The Association Of Banks Malaysia)

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SME MALAYSIA 2014

WHERE TO BORROW FROM? SMEs can look for financing from various legal and official public and private channels.

• • • • •

Banking Institutions Development Financial Institutions (DFIS) Leasing And Factoring Companies Venture Capital Companies Government Funds For Smes

More than half of the SMEs surveyed in the census of Establishments and Enterprise 2011 used either their own money or monies borrowed from shareholders, friends and relatives to finance their business operations. This reflects the old-fashioned but deep-rooted practice of SMEs who are reluctant to borrow from official sources. For example, hawkers and petty traders have been traditionally regarded as ‘risky business’ by lending institutions and often encounter difficulties in gaining access to financing. This was shown in the Census as only 16.2% of micro establishments indicated that they relied on financial institutions to solve their funding problems, as compared to medium-sized enterprises. Other sources, like grants from the government and co-operatives accounted for 30% of SME financing.

being rejected by participating commercial banks. To accommodate SMEs’ request, participating banks would adopt a template consisting of a checklist which would clearly identify the areas which the SMEs had failed to comply to.

This move will help SMEs a lot in knowing what is lacking in their application and be better prepared in their next loan application.

A copy of the checklist may be downloaded from ABM’s website @ www.abm.org.my.

As SMEs contribute significantly to GDP, employment and wealth creation, having the right financial policies for them is essential to support their competitiveness and continuous growth. In short, equal financing opportunities for all and not for only the “top notch” SMEs only.

BASEL 111 & SMEs Basel 111 is a global regulatory standard imposed by the Basel Committee on Banking Supervision in December 2010. It requires banks to hold an increased 4.5% of common equity and 6% of Tier-1 capital of risk-weighted assets.

Funding is and will always be a big issue for SMEs. For many, like the micro enterprises, to keep on producing what they are producing is already a challenge in itself.

Bank Negara Malaysia supports the implementation of these reform measures and will strengthen the existing capital and liquidity standards for banking institutions in the country. It shall be implemented in accordance to the globally-agreed levels and implementation timeline beginning 2013 until 2019.

Bankers need to be more than lenders or financial providers that make money off the SMEs. They need to listen and advise them on their financial needs as well like how to grow.

Otherwise, as with in the past, many SMEs would just left to wither away upon inability to repay loans.

Government support for SMEs is categorized into two segments;

There are concerns that SME financing will get costlier and harder with the implementation of Basel 111 as banks need to have more capital and liquidity. The impact of these additional costs shall either be absorbed by the banks or pass on to the customers.

• Financial support like property loans, working capital and grants • Non-financial support like advisory, marketing, management, networking, technical support, research and development

The worry is that SMEs may turn to ‘unofficial” institutions or sources if they cannot borrow from regulated or ‘official’ institutions. It is vital that banks continue to be able to support SMEs by ensuring that capital provisions to this segment are still available and exist. SME

Recently the Association of Banks in Malaysia (ABM) has announced that small and medium enterprises or SMEs will now be able to know the reasons for their loan applications

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SME MALAYSIA 2014

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Malaysia External Trade

DEVELOPMENT CORPORATION (MATRADE) Export opportunities are abundant for SMEs. They only need to be proactive to seek out the wealth of opportunities in going beyond borders for themselves. The first step is to get in touch with MATRADE, the one-stop centre for export information and assistance. ...........................................................................................................................................

MAIN ACTIVITIES OF MATRADE

MATRADE was established in March 1993 as an external trade promotion arm of the Ministry of International Trade and Industry. As the national agency for trade promotion, MATRADE is often the first reference point for enquiries and visits by foreign importers. The agency’s role is to match them with compatible local partners who can produce the products or services required. Along this line, MATRADE also organises business matching programmes for Malaysian companies and foreign importers.

• To promote, assist and develop Malaysia’s external trade with particular emphasis on the export of manufactured and semi-manufactured products and on a selective basis, imports • To formulate and implement a national export marketing strategy to promote the export of manufactured and semimanufactured products • To undertake commercial intelligence and market research and create a comprehensive database of information for the improvement and development of trade • To organise training programmes to improve the international marketing skills of the Malaysian exporters • To enhance and protect Malaysia’s international trade interests abroad • To represent Malaysia in any international forum in respect of any matter relating to trade • To advise government on matters affecting or in any way connected with trade and to act as the agent of the government or for any person, body or organisation on such matters

MATRADE assist Malaysian companies to establish their presence overseas and raise their profiles in foreign markets through different promotional drives such as participation in trade missions, specialized marketing missions and international trade fairs.

MATRADE EXHIBITION & CONVENTION CENTRE (MECC) MECC is a trade centre, exhibition hall, and convention centre established by MATARDE and is located in Kuala Lumpur.

MECC has been in operation since 2 January 2007.

MECC provides convention facilities, exhibition halls and meeting rooms besides a permanent exhibition space for 400 local companies at the exhibition hall.

Some facts about MECC:• Total exhibition area is 32,888 sq m (106,000sq ft).

• Indoor exhibition area consists of Hall A, B, C, Matrade Hall, 8 collapsible and movable partitions for meeting rooms and a theatrette.

• Outdoor exhibition area includes an amphitheater and a 20,000 sq m car park.

• The building encompasses the podium, tower block, amphitheater and outdoor exhibition area.

•

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SME MALAYSIA 2014

MATRADE’S BUSINESS STRATEGIC PLAN (BSP) 2011 - 2015 About MATRADE’s BSP MATRADE’s BSP provides a 5-year strategic plan to govern the organisational direction of MATRADE to transform it into a credible, client centric and value creating Trade Promotional Organisation. The BSP is used as a tool to position MATRADE as an effective trade promotion agency. It is also to provide an important platform for MATRADE to improve its core business areas and operational processes including identifying appropriate measures to remedy any weaknesses.

Vision & Mission The aims of the BSP are to position Malaysia as a globally competitive trading nation and promote the country’s enterprises to the world.

What does the BSP cover?

Over the next five years, MATRADE will adopt and implement Six Strategic Pillars (SP) containing 20 Strategic Initiatives.

These strategic initiatives cut across various areas of the organization, ranging from exporters development and export promotion, information and communication technology, human capital development and processes improvements.

Through this grant, companies can apply for a reimbursable grant on the eligible export promotional activities undertaken.

Applicants can claim up to a maximum grant of RM100,000 per company per year, subject to a yearly review and availability of funds.

SP1 - Adoption of a hybrid account management approach SP2 - Creation of a competitive and sustainable exporter community SP3 - Leveraging and optimising strategic alliances SP4 - Adoption of one dedicated marketing strategy SP5 - Enhancing MATRADE’s online presence SP6 - Cultivation of effective initiatives and operational improvements

Under the 10th Malaysia Plan, an exit mechanism is implemented whereby the cumulative grant that an applicant is entitled to throughout the 2011-2015 period is limited to a maximum of RM300,000 per company.

Detailed information about the Market Development Grant can be obtained from www.matrade.gov.my.

MATRADE MEMBERSHIP

Besides MDG, Certificate of Free Sale (CFS) is issued by MATRADE to facilitate Malaysian exporters in exporting local household products to countries which require such certificate.

Malaysian exporters or export ready companies are encouraged to become MATRADE members. Registration can be done online or submitting the Malaysia Exporters Registry brochure to Export Advisory and Client Services Unit.

Registration with MATRADE is free.

Contact Details: Malaysia External Trade Development Corporation (MATRADE) Tel : 603 - 6207 7077 Fax : 603 - 6203 7037 E-mail : info@matrade.gov.my Website : www.matrade.gov.my

MARKET DEVELOPMENT GRANT The Market Development Grant is one of the assistance programmes by MATRADE to assist SMEs, service providers, trade and industry associations, chambers of commerce and professional bodies in undertaking promotional activities.

SME

< < < < < < < < < < < < < < < < < < < < < < < O V E R V I E W O F S M E S I N M A L A Y S I A • Initi ativ es , Incentives & Support < < < < < < < < 22

SME MALAYSIA 2014

> > > > > > > > O V E R V I E W O F S M E S I N M A L A Y S I A • Initiatives , Incentives & Supp or t > > > > > > > > > > > > > > > > > > > > > >

National SME

Development Council (NSDC) NSDC is the highest policy-making body that sets the strategic direction for Government policies on SME development to ensure coordination and effectiveness of Government programmes. ...........................................................................................................................................

NEW DEFINITION FOR SMES

The Government established the National SME Development Council (NSDC) in 2004 with Bank Negara Malaysia appointed as its Secretariat.

The NSDC meeting in July 2013 also approved a new definition for SMEs to facilitate the transition to a high income economy. The move, taking effect on 1 January 2014, will bring about an expected increase in the number of SMEs in the country from 97.3% at present to 98.5%. With the new definition, the qualifying threshold for annual turnover and number of workers for all SME sectors will be enhanced.

NSDC is chaired by the Prime Minister, with representation from 16 Ministers and Heads of four key Agencies involved in SME development. NSDC provides the framework for a cohesive national policy and programmes as support for SMEs in the country.

NSDC convenes bi-annually to deliberate on strategies and new policies to support SME development across all sectors, to monitor and evaluate the progress of SME policies and programmes in promoting the growth and development of SMEs.

MICRO ENTERPRISES BUSINESS HUB The NSDC in its 14th Meeting in July 2013 also approved a proposal by Kuala Lumpur City Hall (DBKL) to set up a pilot project to transform existing (ineffective) hawker centres into a Micro Enterprises Hub. It hopes to turn these hawker centres into a more attractive business premises to attract more customers.

NSDC’s scope of work includes:• The formulation of broad policies and strategies to facilitate the overall development of SMEs across all sectors.

• The review of the roles and responsibilities of Government Ministries and Agencies responsible for SME development.

• To enhance collaboration, coordination to ensure effective implementation of SME development policies and action plans.

• To encourage and strengthen the role of the private sector in supporting the overall development of SMEs. • To provide emphasis on the development of Bumiputera SMEs across all sectors of the economy.

The strategies to be adopted include the privatization of centre management, appointing anchor tenants and equipping the centres with ICT infrastructure. These efforts and changes are set to give the hawker centres a new lease of life, at the same time assisting the affected micro enterprises to improve their businesses and standard of living.

A total of six hawker centres have been identified to participate in this pilot project. Each centre will be different from each other. The new approach shall project a model which is better than existing ones, based on the development concept such as that for the mini Urban Transformation Centre with the presence of Kedai Rakyat 1Malaysia. SME

SME BUSINESS ADVISORY PANEL In July 2013, the National SME Development Council through its 14th meeting announced the establishment of a National Small and Medium Enterprise (SME) Advisory Panel which would give relevant inputs and formulate entrepreneur strategies in a move to create world-class SME companies.

The Panel comprises of NSDC members, successful entrepreneurs who have excellent track records and the time to serve as well as subject matter experts. It is chaired by the Minister of International Trade and Industry.

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SME CORP

SME Corporation Malaysia On 2 May 1996, a specialised agency was established to spur the development of small and medium enterprises (SMEs) in Malaysia. This special agency was known as the Small and Medium Industries Development Corporation (SMIDEC). ...........................................................................................................................................

Small and Medium Industries Development Corporation (SMIDEC) was set up to provide infrastructure facilities, financial assistance, advisory services, market access and other support programmes to SMEs in the country. Its aim is to develop capable and resilient Malaysian SMEs, able to be competitive globally. In 2007 when the National SME Development Council (NSDC) decided to appoint a single dedicated agency to formulate overall policies and strategies for SMEs and to coordinate programmes across all related Ministries and Agencies, SMIDEC was tasked to assume the role. That began its official transformation into the Small and Medium Enterprise Corporation Malaysia, popularly known as SME Corporation Malaysia or SME Corp. Malaysia with effect from 2 October 2009.

companies and multinational corporations can also display parts and components that they would like to procure from the SMEs. SMEs participating in the event can also exchange ideas and information and technology and innovation.

VISION & MISSION OF SME CORPORATION MALAYSIA

ONE REFERRAL CENTRE (ORC)

An important highlight of the annual event is the Business Matching sessions to provide SMEs with global market supply chain opportunities through business linkage with large corporations, multinationals or government-linked companies. Besides providing a channel for SMEs to network and forge strategic business partnerships, the Business Matching sessions also enable local SMEs to learn from them on the criteria to be their vendors and suppliers.

Services offered by ORC are:• Business advisory services on business matters by qualified business counselors, business coaches and industry experts under the SME Expert Advisory panel (SEAP).

• ORC Link which provides advisory services by representatives from relevant ministries, agencies, banks, development financial institutions and associations (on a pre-set schedule).

• Resource Centre where SMEs can source for information on various and latest books, articles, magazines, reports and news on SMEs. • Pocket Talks are organised monthly to smaller interested groups, covering topics such as starting a business, sales and marketing, technologies, etc. One to one session with the speakers can also be arranged after the talks.

• SME Product Gallery is where SMEs can visit and keep abreast of the various products by SMEs, make inquiries or register interest to display their own products at the gallery.

• To be the premier organisation for the development of progressive SMEs to enhance wealth creation and social well-being of the nation.

• To promote the development of competitive, innovative and resilient SMEs through effective coordination and provision of business support.

SME WEEK SME Week, launched in 2012, is an institutionalised annual event organised in the fourth week of June. This is a time when all related Ministries and agencies align their SME programmes and activities in support of the campaign.

It is a pioneering initiative to encourage the spirit of entrepreneurship and demonstrate the potentials of SMEs by showcasing their products and services to the public. It also seeks to create a bigger vision on the capabilities of local SMEs and dispel the connotation that local products are inferior with unattractive packaging and inconsistent deliveries.

SME ANNUAL SHOWCASE

Contact Details:

The SME Annual Showcase began 16 years ago. This annual event is designed to showcase the capabilities and capacities of Malaysian SMEs in producing products, services and technologies for both local and international markets. Large

Tel Fax E-Mail Website

25

: 03 – 2775 6000 / 1-300-30-6000 (ORC) : 03 – 2775 6001 : info@smecorp.gov.my : www.smecorp.gov.my

&

A Premier Total Solution Provider

in Quality and Technology Innovation SIRIM is a premier industrial research and technology organisation wholly-owned by the Malaysian Government under the Ministry of Finance Incorporated. With over 40 years of experience and expertise, SIRIM is mandated to serve as a catalyst for the growth of technology and promoting solutions in quality and technological innovation for the industry.

SIRIM offers unique advantages to the industry and end-users in providing total solutions in research and technology innovation, technical services and conformity assessment capabilities, all under one roof. SIRIM’s priority technology areas are essential to the nation’s industrial competitiveness, which are Energy and Environment, Medical Technology and Plant and Machinery.

In the fields of technical services, SIRIM provides services in standards development, calibration, vendor development and consultancy, WTO/TBT enquiry point and quality training. In the fields of conformity assessment, SIRIM provides a comprehensive range of certification, inspection and testing services to the industry which are accredited to international standards.

Research & Technology Innovation • Energy & Environment - Energy Generation - Energy Storage - Eco-Product Development - Environmental Technologies

• Medical Technology - Drug delivery system - Implants/prostheses - Medical equipment

• Plant and Machinery - Design & Modelling - Machine design - Plant engineering - System design - Tooling and component development

Technical Services • Standards research and management • Product certification • Calibration services • Security and packaging design • Technology commercialisation services

Conformity Assessment • Certification • Inspection • Testing services

SIRIM adopts a multidisciplinary approach to its technological solutions by integrating various technology platforms. Whatever the market sector, SIRIM will be able to provide the necessary competencies to serve industry needs.

For more information, visit www.sirim.my or contact: Tel: 603 5544 6000

Toll Free: 1-300-88-7035

Fax: 603-5544 6694

Email: web@sirim.my

SME MALAYSIA 2014

Invest • Connect • Succeed - Invest in Selangor

SELAMAT DATANG KE SELANGOR! Therefore, you can rest assured of experiencing top class facilities and a favourable investment climate here. Selangor also has the most extensive infrastructure and facilities, such as:

Welcome to the most progressive state in Malaysia - Selangor.

Being located at the Straits of Malacca and embracing the capital Kuala Lumpur, Selangor is truly the heart of Malaysia’s economy. Contributing 23% of the Malaysian gross domestic product, Selangor offers the most developed and diversified industrial landscape of the country.

Extensive Infrastructure and Facilities • Telecommunications • Water • Energy • Housing Facilities • Education • Transportion - Sea - Rail - Air - Road

The government of Selangor, through the SSIC Berhad (Selangor State Investment Centre) plans to be a regional hightechnology centre, employing the most latest sophisticated technology for more convenient and efficient business in Selangor. The government of Selangor is fully committed to provide the best support to all investors in order to ensure maximum achievement return on their investment in Selangor.

Promoted Industries • Electrical & electronics industry a. Consumer electronics b. Electronic components c. Industrial electronics d. Electrical products

You may be wondering, what makes Selangor so special?

Selangor has a variety of attractive attributes, which help to DISPEL all your investment concerns. Selangor offers: • • • • • •

Developed Infrastructure Investment Opportunities Strategic Location Political Stability Economic Strength Leadership & Efficiency

• Life sciences industry a. Biotechnology b. Pharmaceuticals c. Medical devices

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SME MALAYSIA 2014

What else can you expect?

Selangor continues to be an economic powerhouse in a recovering global economy and crucial to Malaysia’s impressive development. Whenever Malaysia’s international rankings improved, Selangor was at the core of it. In 2012 Malaysia ranked 10 in the FDI Confidence Index, 18 in the World Bank’s Ease of Doing Business Index and 14 in the World Competitive Yearbook. Furthermore, A.T. Kearney’s Global Services Location Index saw Malaysia finishing 3rd, which consolidated Selangor as the leading service hub with more than 60% of all related companies located here.

• Green technology industry (Solar and renewable energy industry) • Machinery & equipment industry • Transport equipment industry • Marine-based industrial & port-related activities and services - Shipyard activities • Aerospace industry • Services industry a. Business & professional services b. Integrated logistic services c. ICT services d. Distributive services e. Education and training services f. Health services • Halal industry a. Raw materials - Flour mills - Cocoa powder processing

In other words, you can expect the best of Malaysia in Selangor including an advanced network of highways, the biggest sea- and airport as well as reliable internet, energy and water supply. Our B2B services are globally competitive and regionally leading, making Selangor the perfect bridgehead connecting you to Malaysia and ASEAN. Invest in a stable, export-oriented and investment- friendly environment.

We will do our best to make your investments grow with our vision to transform Selangor as the ultimate choice to do business and to enjoy life.

For more information, please visit our website: www.ssic.com.my or e-mail your enquiry to: enquiry@ssic.com.my

b. Food & Beverages - Soft drinks - Confectionery products - Frozen food processing

Company Name Email Web Address

: SSIC Berhad : Hasan Azhari Idris : hasan@ssic.com.my : www.ssic.com.my : No. F1-2-G, Jalan Multimedia 7/AG, CityPark, i-City, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia Telephone : +603-5510 2005 SME

c. Dairy Products - Milk - Yogurt - Ice Cream

d. Non-food products - Pharmaceuticals - Cosmetics - Herbal supplements - Leather e. Packaging, storage, distribution

Selangor State Investment Centre

< < < < < < < < < < < < < < < O V E R V I E W O F S M E S I N M A L A Y S I A • Initiatives , Incenti ves & Suppor t (Pr i vat e) < < < < < < < < 29

SME MALAYSIA 2014

Invest • Connect • Succeed - Invest in Selangor

SELAMAT DATANG KE SELANGOR! Therefore, you can rest assured of experiencing top class facilities and a favourable investment climate here. Selangor also has the most extensive infrastructure and facilities, such as:

Welcome to the most progressive state in Malaysia - Selangor.

Being located at the Straits of Malacca and embracing the capital Kuala Lumpur, Selangor is truly the heart of Malaysia’s economy. Contributing 23% of the Malaysian gross domestic product, Selangor offers the most developed and diversified industrial landscape of the country.

Extensive Infrastructure and Facilities • Telecommunications • Water • Energy • Housing Facilities • Education • Transportion - Sea - Rail - Air - Road

The government of Selangor, through the SSIC Berhad (Selangor State Investment Centre) plans to be a regional hightechnology centre, employing the most latest sophisticated technology for more convenient and efficient business in Selangor. The government of Selangor is fully committed to provide the best support to all investors in order to ensure maximum achievement return on their investment in Selangor.

Promoted Industries • Electrical & electronics industry a. Consumer electronics b. Electronic components c. Industrial electronics d. Electrical products

You may be wondering, what makes Selangor so special?

Selangor has a variety of attractive attributes, which help to DISPEL all your investment concerns. Selangor offers: • • • • • •

Developed Infrastructure Investment Opportunities Strategic Location Political Stability Economic Strength Leadership & Efficiency

• Life sciences industry a. Biotechnology b. Pharmaceuticals c. Medical devices

> > > > > > > O V E R V I E W O F S M E S I N M A L A Y S I A • Initiatives , Incentiv es & Support (Pr ivate) > > > > > > > > > > > > > > > 28

SME MALAYSIA 2014

What else can you expect?

Selangor continues to be an economic powerhouse in a recovering global economy and crucial to Malaysia’s impressive development. Whenever Malaysia’s international rankings improved, Selangor was at the core of it. In 2012 Malaysia ranked 10 in the FDI Confidence Index, 18 in the World Bank’s Ease of Doing Business Index and 14 in the World Competitive Yearbook. Furthermore, A.T. Kearney’s Global Services Location Index saw Malaysia finishing 3rd, which consolidated Selangor as the leading service hub with more than 60% of all related companies located here.

• Green technology industry (Solar and renewable energy industry) • Machinery & equipment industry • Transport equipment industry • Marine-based industrial & port-related activities and services - Shipyard activities • Aerospace industry • Services industry a. Business & professional services b. Integrated logistic services c. ICT services d. Distributive services e. Education and training services f. Health services • Halal industry a. Raw materials - Flour mills - Cocoa powder processing

In other words, you can expect the best of Malaysia in Selangor including an advanced network of highways, the biggest sea- and airport as well as reliable internet, energy and water supply. Our B2B services are globally competitive and regionally leading, making Selangor the perfect bridgehead connecting you to Malaysia and ASEAN. Invest in a stable, export-oriented and investment- friendly environment.

We will do our best to make your investments grow with our vision to transform Selangor as the ultimate choice to do business and to enjoy life.

For more information, please visit our website: www.ssic.com.my or e-mail your enquiry to: enquiry@ssic.com.my

b. Food & Beverages - Soft drinks - Confectionery products - Frozen food processing

Company Name Email Web Address

: SSIC Berhad : Hasan Azhari Idris : hasan@ssic.com.my : www.ssic.com.my : No. F1-2-G, Jalan Multimedia 7/AG, CityPark, i-City, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia Telephone : +603-5510 2005 SME

c. Dairy Products - Milk - Yogurt - Ice Cream

d. Non-food products - Pharmaceuticals - Cosmetics - Herbal supplements - Leather e. Packaging, storage, distribution

Selangor State Investment Centre

< < < < < < < < < < < < < < < O V E R V I E W O F S M E S I N M A L A Y S I A • Initiatives , Incenti ves & Suppor t (Pr i vat e) < < < < < < < < 29

SME MALAYSIA 2014

> > > > > > > > O V E R V I E W O F S M E S I N M A L A Y S I A â&#x20AC;˘ Initiatives , Incentives & Supp or t > > > > > > > > > > > > > > > > > > >

Small & Medium Enterprises

Association (SAMENTA) Malaysia Small and Medium Enterprises Association (SAMENTA) Malaysia [Persatuan PengusahaanPengusahaan Kecil dan Sederhana (SAMENTA) Malaysia] was registered on 12th November 1986 with the Registrar of Societies. ...........................................................................................................................................

Small and Medium Enterprises Association (SAMENTA) Malaysia is a non-profit organization and hereinafter known as SAMENTA in the market.

(d) (e) (f)

SAMENTA was founded in 1986 by a group of local entrepreneurs to represent the interests of the SMEs with the following aims and objectives:(a) (b) (c)

(g) (h)

To assist, promote and develop small and medium enterprises from the Northern Region of Malaysia.

To provide human resource development for small and medium enterprises.

To collect and disseminate information on products, technology, machinery, government guidelines and the economic environment for its members.

(i) (j)

31

To provide consultation and advisory services on financial, technical, marketing and management issues.

To identify new business opportunities for local investors.

To serve as an effective communication channel for small and medium enterprises.

To instill local and international awareness of Malaysian services and products.

To inculcate an entrepreneurial spirit amongst the university graduates.

To organize trade fairs, exhibitions, trade missions for the small and medium entrepreneurs and business matching.

To establish ties with similar type of associations locally and internationally; e.g. ASEAN, Japan, Europe and the USA.

SME MALAYSIA 2014

Samenta endorsed MetalTech 2013 at PWTC

Today, SAMENTA is recognised for its role in fostering the development and promotion of SMEs especially in the State of Penang and in the Northern Region. They have also established Liasion offices in Selangor, Kuala Lumpur and Johor Baru and will be expanding their network nationwide.

SAMENTA caters to a wide spectrum of enterprises ranging from medium-sized hi-tech and precision oriented manufacturing concern to small-sized food processing cottage industry and from service-oriented companies to those involved in trading activities.

SAMENTA is also represented in several key public and private sectors committees which formulate plans and recommendations for the development and promotion of SMEs.

Mission • Create a bilateral / multilateral exchange platform for SMEs • Enable mutually beneficial collaborations SMEs • Assist, promote and develop SMEs • Promote healthy and sustainable development of SMEs • Provide opportunities for business matching

Vision To enhance the business and invest opportunities for the SMEs Be the member of SAMENTA!

Be the member of SAMENTA! Member fee: RM120 per year RM100 (entrance fee) RM1,200 (Life Member) Join us today!

Please login to www.samenta.org.my/join-us.htm to register as a member of SAMENTA.

> > > > > > > > O V E R V I E W O F S M E S I N M A L A Y S I A • Initiatives , Incentiv es & Support > > > > > > > > > > > > > > > > > > > > > > 32

SME MALAYSIA 2014

13th Term of SAMENTA Committee (2011-2013) Position President Vice President Vice President Honorary Secretary Honorary Treasurer Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member

Name

Company

Dr. David Gan Eng Hin Kam Lian Hooi

Koay Kah Seng Enterprise Sdn Bhd Mogul Water Management Sdn Bhd VA Partners Sdn Bhd

Yeoh Seng Hooi

Finex Resources

Koay Chiew Guan

Raymond Teh Ah Lin

Metfab Engineering Sdn Bhd

Tan Han How

Wcas Management

Haja Maideen Anwar Kabir

Kumpulan Barkath

Tan Waing Huat Tan Wei Keat Ed Kiew Tang Chin Teik Calvin Kwan Tan Beng Chye Kenny Koay Leslie Lai Kee Teong Hin Eric Chew

Business meeting at Chungbuk with Korea International Trade Association on 29th Nov 2012

Alpha Master (M) Sdn Bhd Inneta Corporation Sdn Bhd Knowledge Energy Solutions Sdn Bhd Lokeman Products Sdn Bhd Nuko Marketing (M) Sdn Bhd Jeenhuat Foodstuffs Industries Sdn Bhd Global Connect Resources Pen Events Sdn Bhd Tepsco Printers Sdn Bhd Pintas Solutions Sdn Bhd

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SME MALAYSIA 2014

SAMENTA Past Activities - 2013 l

Visit 16th Taipei International Machine Tool Show 2013 (TIMTOS)

5th - l0th March 2013

2

Visit to Industrial Engineering Sources Show (lESS) Venue : Mumbai

14th - 17th March 2013

Endorsed Industrial Expo (EX2013) and catalog

28th - 30th March 2013

3 display at SAMENTA Booth Venue: PISA

Visit to the Precision Engineering Industrial Event

4 (MTA 2013)

Venue : Singapore Expo Trade Mission to Osong Beauty Expo and Arrange

5 Business Matching

Venue : South Korea Business Matching at Subcon Thailand and

6 lNTERMACH 2013

Venue : Bitec, Bangkok Endorsed MetalTech 2013 and display catalog at

7 SAMENTA booth Venue : PWTC

Endorsed Nepcon 2013 and display catalog at

8 SAMENTA Booth Venue: PISA

9

Endorsed SME Business Conference 2.0 Venue : G.Hotel Sembcorp briefing on manufacturing opportunities

10 in Vietnam

Venue : FMM Penang

Seminar on Business Opportunities for E + E sector 11 by MIDA Venue : Hotel Equatorial

12

Business matching with MNC Venue : Hotel Equatorial Business Matching at Foodtech & Phannatech

13 2013

Venue : Taipei (TWTC)

9th - 13th April 2013 8th May 2013 15th -19th May 2013 21st - 25th May 2013 l0th - 12th June 2013 13th June 2013 13th June 2013

VIPs at SME Award and Silver Jubilee dinner

17th June 2013 18th June 2013 26th - 29th June 2013

14

Endorsed 5th Malaysia SME Congress Venue : Setia City Convention Centre , Shah Alam

3rd July 2013

15

Tax Incentives for Angel investor Venue : SMART CENTRE

7th July 2013

Endorsed Manufacturing Industrial Trade Fair Venue : PWTC

9th - 12th October 2013

Booth participation at 4th International Green Tech & Eco Products

l0th - 13th October 2013

16 (MITF 2013)-PWTC 17

18 Trade Mission to Myanmar Participate in Intrade 2013 - Catalog display@

20

26th - 28th November 2013

Co-organized SME 100 Awards 2013 Venue : Palace Of Golden Horses

16th December 2013

Endorsed the conferences “Crowd Sourcing New

19th December 2013

21 Emerging Trend”

Venue : G. Hotel

Subcon Thailand 2013 and business matching with Thai business people

23rd - 30th November 2013

Venue : Matrade Building

19 Samenta booth

Samenta jointly organized with Cradle Fund on Angel Tax Incentive at InvestPenang on 9th July 2013

Crowd sourcing conference officiated by CM of Penang Mr Lim Guan Eng on 19th Dec 2013 with several speakers at G Hotel

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SME MALAYSIA 2014

SAMENTA New Activities - 2014 GST Seminar : Introduction to Good & Service Tax 16th January l Venue : Kompleks Kastam Seberang Jaya, 2014 Butterworth Visit Industrial Engineering Sources Show 2 (lESS) 2014 and Business Matching Venue : Mumbai, India

22nd - 24th January 2014

Visit to SIMTOS 2014 4 ( Seoul International Machine Show ) Venue : KINTEX

9th - 13th April 2014

Taipei Manufacturing Technology Show 5 2014 Venue : TWTC Nangang Exhibition Hall

8th - 11th May 2014

6

Visit to Austech 2014 - Sydney Olympic Park

Visit to Intermach 2014 and arranging 7 business matching at Subcon Thailand 2014 - BITEC Bangkok Endorsed Metal Tech 2014 8 (Malaysia Machine Tool Show) Venue: PWTC 9

Visit to BIEMH 2014 - Bilbao, Spain and arranging business matching

15th to 17th May 2014 21st - 24th May 2014 2nd - 7th June 2014

Visit to Subcon Expo UK and arranging 10 business matching - NEC Birmingham, UK

3rd - 5th June 2014

Endorsed NEPCON 2014 and Catalog 11 display at Samenta booth Venue : Spice Arena

10th - 12th June 2014

Visit to METEF 2014 12 (Aluminium Finishing Show) Venue : Verona Italy

11th - 13th June 2014

13

Tapei International Food Show 2014 Venue : TWTC Nangang Exhibition Hall

Endorsed 6th Malaysia SME Congress 14 2014 Venue : Selangor 15

Endorsed SME Solution EXPO Venue : Mid Valley Exhibition Hall

Participate in Intrade 2014 - Catalog 16 display @ Samenta booth and Business meeting with foreign buyers

Businessmatching at INTRADE 2013 organized by Matrade at Matrade Building

13th - 16th May 2014

25th - 28th June 2014

SME Business Conference 2013

2nd July 2014 September 2014

For more information, you may refer:

• Alpha Master (M) Sdn Bhd pg224

26th -28th November 2014

• Axis Industrial Machinery Sdn Bhd pg218 • Knowledge Energy Solution pg184

SME

• Koay Kah Seng Enterprise Sdn Bhd pg187 • Kumpulan Barkath pg199 • MH Multipack Sdn Bhd pg219 • Nuko Marketing pg232 • VA Partners Sdn Bhd pg221

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SME MALAYSIA 2014

>>>>>>>>STARTING UP • Starting A New Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Starting Up

 Starting A New Business  What Is Business Plan?  Getting Your Business off the Ground: - Financial For Starting Up - Right Location & Setting Up Your Office - Intellectual Property - Managing Waste - Education & Training

p37 p42 p45 p48 p51 p56 p60 36

SME MALAYSIA 2014

>>>>>>>>STARTING UP • Starting A New Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Starting

A New Business Starting a new business has long been considered a risky proposition. ...........................................................................................................................................

Today, becoming an entrepreneur is not only a safe and manageable career prospect but perhaps it is also the best, or only way, to achieve what you want professionally. Although daunting enough, there are many people out there who have ventured out and succeeded in making their dreams come true.

the business no longer makes you happy, you have the power to make the necessary changes so that you are able to be happy again.

•

The challenges are challenging. Running your own business exposes you to obstacles or situations you would otherwise never face if you are working for someone else.

They could be managing finances (both business and personal), hiring and managing staff, market research, selling, customer services, the adrenalin kicking, etc. all lumped into one.

•

Every day is a new day. In learning to overcome the challenges you face in your business, you pick up new skills and enhance existing ones. These are like organizational skills, communication, accounting, time management, brand development or business presentations

•

I am my own boss and my own employee. Some people do not like to work for others simply because they do not agree with their bosses’ decisions or management styles.

Some simply do not like being told what to do. It is rather true that “once you are a boss, you could never go back to working for someone else”.

•

A great idea. If you have a great idea that can satisfy a market need or readily have a substantial number of customers, you have the potential and niche to establish a business quickly. A brilliant, original idea can also attract would-be investors and customers easier.

•

Variety is the order of the day or almost every other day. An entrepreneur wears many different hats. He is the boss, the financial controller, the planner, researcher, salesman, etc. Job variation can be a fulfilling experience as one prepares to learn all the skills and knowledge required to run a business.

•

Money makes friend with everybody. Not only multinational companies or conglomerates can make huge profits. Many entrepreneurs make millions on their own through hard work, lots of determination and plenty of luck too. The greatest benefit is financial independence

There are thousands and one reasons for wanting to be your own boss. Why do people follow this path?

•

•

There is no job security any more. Gone are the days when one believed that there is a ‘golden rice bowl’ job.

One can no longer commit to a well-trodden or planned career in the corporate world. Globalization, borderless communication, advancement in transportation have all make industries evolve so quickly that jobs can appear, change, disappear or made redundant overnight, even in good economy.

The satisfaction matter. Would-be entrepreneurs are looking for self-satisfaction, a rewarding and fulfilling daily life. When you are the boss, you get to do the work you want on your own terms. If further along the road,

37

SME MALAYSIA 2014

WHEN TO START A BUSINESS?

because you create your own wealth through your own industriousness rather than relying on your bosses for a promotion, raise or bonus.

•

There are no definite good or bad times to go into business on your own. In both good and bad times there are always successes and failures.

A passion for your subject. In order to be successful at what you do, you have to like what you do. Doing something one loves is an attractive encouragement. If you have a well-constructed business plan, product or service that you think the market has a gap for, it is worth taking the leap. Enthusiasm drives motivation.

In good times the market share is probably bigger but shared by more people; in bad times the share is perhaps smaller but shared by less people. The answer is you. An economic downturn can be a great time to start a business. More talent is available due to layoffs and redundancies. Customers are more likely to try out new providers who can help them cut costs and increase their competitiveness. Established businesses are more focused on cutting costs instead of increasing market share. It is a time to zoom in.

BECOMING AN ENTREPRENEUR There could be quite a distance between a great idea and a great start.

Do you have what it takes to become an entrepreneur? Are you ready to start a business? Points to ponder for would-be entrepreneurs:•

STARTING A BUSINESS IN MALAYSIA It is only natural that every business owner aims to grow his business. Starting right is almost as crucial as doing it right throughout. Many people want to set up their own business, many want to succeed but many also do not possess the proper know-how to do it.

What are the reasons for starting a business? Being an entrepreneur involves a lifestyle change. There are no fixed working days, working hours or pay day; and it is absolutely not a way to get rich quick or escape from the problems of the current job. Starting a business is hard work; the learning curve is long and perhaps only pays off in the long term. Look before you leap. Make sure you do not fall for the “the grass is always greener at the other side of the fence” trap.

•

Supplying what the market needs and what customers would buy are totally different. Your products may be well liked but generally customers would only pay for what they need. Seek out the hidden requirements and challenges.

•

Are you venturing into a too crowded space? Do not be tempted to branch out into an area which seems to be the current fad or trend but may not last. Too many existing competitors crowding a limited market may not be an option worth exploring.

•

Make sure your idea or concept does not already patented by someone else. Otherwise, intellectual property is a good way to defend against competitors.

•

What are the business goals, aims and plans? Do you have a business plan where you can convert all your passion into tangible business values?

Businesses in Malaysia are required to be carried out by either two types of business organizations - business firms and registered companies. Choosing a business structure is important, weigh each option carefully.

Choosing and deciding on the types of business set-up depend much on one’s business requirements, costs, tax issues, liability, et cetera. It is important to understand the costs and benefits of the most appropriate business form most suitable for the intended business.

>>>>>>>>STARTING UP • Starting A New Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 38

SME MALAYSIA 2014

BUSINESS FIRMS Business firms in Malaysia are governed by the Registrar of Business Act 1956. They can be either a sole proprietor or a partnership.

Sole proprietor is a business wholly owned by a single individual using the name of the individual as per his identity card or a trade name. If the latter is preferred, it is required to apply for business name approval. Business name approval is done according to the Rules of Business Registration 1957(Rule 15). Business registration can be made for a period of one year and not exceeding 5 years.

Partnerships are governed by the Partnership Act 1961. A partnership is a business owned by two or more individuals but not exceeding 20 persons. The name in the identity card cannot be used as a business name.

The most common type of registered company in Malaysia is a company limited by shares or popularly known by its abbreviation “SDN BHD” (private limited). A company has its own legal rights similar to a natural person under the law.

Only a Malaysian citizen or a Permanent Resident can register a sole proprietorship or partnership in Malaysia. Secretarial firms are also not allowed to register sole proprietors or partnerships on behalf of the owners or partners. The owners or partners are required to personally visit the Companies Commission of Malaysia Office (SSM) to register their business, close the company or change business details.

CO-OPERATIVE This is for you if you plan to operate a business that is owned and controlled by the people who use and benefit from your services. You have to apply to the Co-operative Societies Commission of Malaysia for the approval of the RegisterGeneral.

The requirements for opening a sole proprietorship or partnership are:• • •

Name and business activity A photocopy of the identity card Payment - RM60 per year for trade name - RM30 per year for personal name - RM5 per year for each branch

More information on co-operatives can be obtained from Suruhanjaya Koperasi Malaysia @ www.skm.gov.my.

DO YOU KNOW THAT…

The registration of a new business must be done within 30 days from the date of business commencement. Registration can be performed at any SSM counter or through the SSM e-Lodgement Services online.

•

The Malaysian Corporate Identity Number (MyCoID) is a unique corporate incorporation number for registering and dealing with relevant Government agencies to start a business. It saves time, reduce bureaucratic red tape and improve efficiency.

•

Starting a business in Malaysia is also improved with the use of e-Stamping which allows the Memorandum & Articles of Association (M&S) to be lodged via the MyCoID portal.

•

A limited liability partnership is an alternative business vehicle introduced by the Companies Commission of Malaysia to provide more choices for businessmen and entrepreneurs in structuring and carrying out their business operations to be more competitive. The formation, registration, maintenance and dissolution for the new entity are simpler compared to a company.

(Source : Companies Commission Of Malaysia)

REGISTERED COMPANIES Registered companies are governed by the Companies Act 1965.

A registered company is an artificial person created by the law. It is legally independent from its owners. A company can use the name of the company to buy or sell property, sign contracts by using its common seal or can sue and be sued in its own name.

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SME MALAYSIA 2014

BUSINESS FIRMS

COMPANY LIMITED BY SHAPES Legally separated from owners and individuals who run the business.

Limited to remaining unpaid amount on membersâ&#x20AC;&#x2122; shares.

1

Legal Standing

Not separated from individual/individuals who own the business.

2

LiabiIity

Not limited - the owner/partners have to be personally liable responsible for all the debts of the business.

Succession

If the identity of the individual participants changes, for example; i - Partners die, resign or new partner; ii - Sole proprietor dies or bankrupt; the sole proprietorship or partnership is dissolved

3

There is perpetual succession.

The company continues to exist unless it is liquidated or deregistered.

Interests can be transfered to other parties by executing the share transfer forms.

Incorporate under the Companies Act 1965 Statuory forms, memorandum and articles of association are lodged with the Companies Commission of Malaysia.

Set up fee is usually more than Rm2,000 aside from other secretarial fees, etc.

4

Formation

Register with the Registrar of Business.

Some partnership may have partnerships may have partnership agreements.

Set up fee is less than RM100.

5

Owner

1 for sole proprieter 2 to a maximum 20 for partnership

2 to a maximum 50 (there is however no limit for public limited company)

6

Ownership of properties

Jointly owned by the individual/s who own the business.

Owned bu the company and not the shareholders.

7

Management

Managed by the individual/s who own the business.

Managed by the Boards of Directors.

Every company must have at least 2 directors who are principally residing in Malaysia. Directors may or may not be shareholders of the company.

There must be at least one company secretary.

8

Annual Returns

Not required to submit any reports to the Registrar of Business.

Returns lodged with Company Commission of Malaysia.

Annual Returs and Audited Accounts to be lodged annually.

Taxation

Profits made are added to the individual/s personal income tax.

Individual/s is/are personally liable for the profits under personal income tax.

The company is subjected to corporate income tax at prevailing rate.

9

>>>>>>>>STARTING UP â&#x20AC;˘ Starting A New Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 40

SME MALAYSIA 2014

WHAT YOU SHOULD DO OR KNOW BEFORE YOU START

New employers are required to register with the EPF by filling the relevant forms and sending the appropriate documents i.e.

Copies of Form 49 or business registration certificate.

Social Security Organisation (SOCSO) An employer is required to register all employees with a monthly wage lower than RM3000 with, and contribute to the Social Security Organization (Socso), regardless of employees’ employment status i.e permanent / temporary / part time.

Company Seal A company seal is necessary for the use of official matters pertaining to the business i.e. the purchase of property, stamping of legal documents, etc.

The monthly contribution rates for employers and employees are shown in the Contribution Schedule based on 34 salary categories.

DOING BUSINESS IN MALAYSIA Malaysia achieved the 12th position among 185 countries in World Bank’s Doing Business Report 2013. This is an improvement from 18th the previous year. The result saw Malaysia moving ahead of countries like Taiwan (16th), Japan (24th), Switzerland (28th), Germany (20th) or Thailand (18th).

The top twenty countries in the list represented the top 10% of 185 countries which are easiest to do business in.

There are two categories of contributions. First Category (Employment Injury Scheme and Invalidity Pension Scheme) is for workers aged 60 years and below. Second Category (Employment Injury Scheme Only) is for employees aged 60 years and above. It is also for employees who join the workforce when they are above 55 years of age and have never contributed to Socso. (See Advertisement - Inside Back Cover)

The Doing Business 2013 is the tenth in a series of annual reports published by the World Bank and the International Financial Corporation investigating regulations that enhance business activities and those that constrain them. The report represents quantitative indicators on business regulations and the protection of property rights that can be compared across 185 economies.

(Source: Social Security Organization @ www.perkeso.gov.my)

Inland Revenue Board An employer has to register with the Inland Revenue Board of the employment of workers by presenting a list of taxable employees and to update the list as and when needed.

Today, everything is revolving and nothing stays for long. To stay on in business, you have to adapt and keep changing with the business environment to survive. There is no more ‘the older the company, the more established it is’. Business is a money game where profitability rules. SME

Employees Provident Fund (EPF) According to Section 41 (1) of the EPF Act 1991, an employer must register with the EPF within 7 days from the date an employer becomes liable to contribute, that is as soon as an employee is hired. Monthly rates of contributions by both employer and employee are stated in the Third Schedule of the EPF Act 1991.

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>>>>>>>>STARTING UP • What is Business Plan >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

What is

Business Plan?

A business plan provides direction and guidance for your business’s future and it is also one of the most fundamental requirements in applying and attracting funding.. ...........................................................................................................................................

Many may have heard of the old adage that failing to plan is planning to fail. This is most true when it comes to business.

Investing time and energy in creating a well-structured business plan is one of the most valuable steps a would-be entrepreneur can undertake.

marketing and operational strategies and future expansion plans. A business plan brings your main idea into focus, in writing, and helps you to work out what you want to achieve and how you are going to achieve it.

Regrettably, most people think business plans are only for starting a new business or used for applying bank loans.

Business plans are vital for running a business regardless new or established, loans or otherwise. They help you to prioritize your growth optimization and development.

A business plan is a must when you ask for financing. It is the first thing that banks ask. No Plan, No Money. Most banks or investors will not entertain the thought of talking with you without a proper business plan, what more financing it. A rock-solid business plan may not guarantee success but for would-be entrepreneurs, it helps a lot.

Those sheets of paper are not trivial records. More importantly, an effective business plan incorporating a feasibility study can: • Help you identify if there is a market for your products, services or ideas.

• Identify your competition and advantages.

• Give you a direction if your business idea is worth pursuing.

• Help in the application for funding from financial institutions.

• Secure investors, sponsors, suppliers, etc.

• Outline your goals and long-term vision.

• Be a reminder of your commitment and be a motivation.

• Help to identify a business’s strengths, weaknesses and opportunities.

• Communicate your ideas or concepts to others, acting as a selling tool.

• Determine the amount and type of financing required, the ability and time frame to repay debt.

• Forecast profitability and investor returns on the investment.

What then, is a business plan?

A business plan is a comprehensive description of a business.

A business plan, among others, gives information about the company, products and services, financial forecasts,

A business plan is a blueprint to a business’s future.

Types of Business Plans There is no “one-size-fits-all” type of business plan.

Business plans have been called many name - strategic plans, investment plans, annual plans, et cetera but they are all business plans. Their different names indicate their various purposes and usages that match the specific situations.

Specific case differences lead to different types of plans.

42

SME MALAYSIA 2014

The types of business plans are not exhaustive but some of the common ones are:-

Start-Up Plan The start-up plan is perhaps the most standard and conventional of all business plans. It defines standard information including the company, products and services, market, forecasts, implementation process, management team and financial analysis. Its focus is to effectively introduce the business concept to the specific reader i.e. bankers or investors.

Internal Plan This plan is not meant for third parties investors, bankers or customers. The contents are usually presented in bullet points in slides rather than detailed texts on paper. It typically targets an audience within the business itself. It lists down the company’s direction without the crucial information on company background and various analysis like market research. An internal plan is often used as a motivational tool for employees and helps to define strategic goals for the company’s future.

opening of new branches/offices. Hence, expansion plans rely heavily on description of the management team to convince investors or bankers alike on the efficacy of expansion.

Contents include past performance charts and records.

Operation Plan

Feasibility Plan

This is normally an internal plan too as it is meant for internal distribution only. It contains details on deadlines, implementation processes, dates and responsibilities of team members and managers. An operation plan is one type of internal plan that list elements related to operations of a company like earmarking implementation processes and deadlines for the coming year or employees’ job descriptions and responsibilities.

A feasibility plan is a simple start-up plan which is good for deciding whether or not to proceed with a plan or if a business is worth pursuing. It combines the elements of a start-up plan and an internal plan. It is useful for indicating to an entrepreneur whether he should go ahead with the business idea. Its contents are simple and in summary, highlighting the key aspects of the plan, concept and financial projections.

Equity Funding Plan Strategic Plan

An equity funding plan is commonly used to persuade potential venture capitalists, angels, corporate investors or private funders to have a look at your company. Its objectives are to get potential investors “interested and keen enough” to have a face-to-face meeting with them, nothing more. It delivers opportunity and competence officially, it is beautiful to look at. Equity investors never miss an opportunity and you need to help them not to miss it.

A strategic plan is also an internal plan but it focuses on the setting of priorities and options rather than dates and responsibilities. It may be in point form than text. A strategic business plan provides a detailed map of a company’s goals and how to achieve them by laying out a foundational plan for the entire company. A strategic business plan typically includes five elements like business vision, mission statement, definition of critical success factors, strategies for achieving objectives and an implementation schedule.

Bank Funding Plan A bank funding plan is used to obtain bank loans. Bankers are generally conservative and prudent. To get your desired funding, you need a plan that shows you can get their money back plus the interests at the end of the loan tenure. It needs to be highly persuasive. Bank funding is often only available if you have a solid history, positive cash flows or are able to provide some form of collateral to cover the loan, even for start-ups. A good bank funding plan may not provide the ultimate persuasion but it helps to polish your business image.

Expansion / Growth Plan This type of plan focuses on specific areas of a business. It is part of an internal plan too if it is used to set the pace and phase for growth or expansion funded internally. A growth plan is commonly linked to loan application, funding or new investment. It can be written for intenal or external purposes.

Entrepreneurs use expansion plans when they require further financing for specific purposes like adding a new product or

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SME MALAYSIA 2014

are reflected in paper. A simple SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis enables you to fill up with honest lists of answers.

•

Know your competitors and know them well. A thorough competitor analysis can help you to address customers’ needs and allow your products and services serve better than your competitors.

•

Revenue projections must be realistic. There is nothing wrong to aim big but make sure you have the unique products or services. A patent or an angel investor on board can give a lot of credibility. Explain how you are going to reach those big numbers and not depend on cliched answers.

HOW TO WRITE A BUSINESS PLAN There are many professional business writers who specialize in writing business plans. However, nothing beats the one who knows best and will be involved in the business. No one knows better your goals, vision or target more than yourself.

No two businessmen or businesses are alike.

HOW TO RUIN A BUSINESS PLAN Errors, whether accidental or man-made will undermine the credibility of a plan, more so if it is used for funding application.

No matter which type of business plan or who to write it, there is definitely one that is tailor-made for you.

•

Hiring or delegating someone else to write your business plan can sometimes result in an inferior plan especially if the writer does not understand your business concept or your ideas. An inferior plan is almost as bad as having no plan at all.

• •

Be clear about what you are offering, the target market and how to build a niche for your business. Be wary of being a jack of all trades but master of none.

• •

WHAT IS INSIDE A BUSINESS PLAN? A lot of business plans fail to impress potential investors or bankers. The shortcomings are evident even in the executive summary primarily because the readers know whether ‘real work’ has gone into the preparation of the plan. It doesn’t matter if it is an internal or official plan, detailed consideration must be exercised as to the contents of the plan.

•

Be clear about what you are selling by defining precisely and concisely what you intend to sell.

•

Theodore Roosevelt’s “Keep your eyes on the stars, and your feet on the ground” can best outline the need to be practical. Excessive window dressing or unrealistic goals can come across as boastful and insincere.

•

You are what you write, most of the time anyway. Be honest with your strengths and weaknesses as they

• •

A ‘rough copy” with typographical errors, stains or untidy content presentation gives the impression that you are not serious about the plan.

Unsubstantiated estimations or assumptions resulting in you having to explain the ‘whys’ in every point.

Overly optimism indicate a failure to consider prospective pitfalls.

Outdated financial information or industry comparisons leave doubts about your planning.

A plan with no concrete, detailed strategies but includes a lot of general statements like “We will provide the best service” will be dismissed as fluff.

Unrealistic proposed loan amount or terms.

Lack of understanding on financial information; even if someone else prepares it, you must be ready and able to explain them.

TO START OR NOT TO START Investing time and effort into proper planning is quintessential to turning your dreams into reality. Starting and running a business are more than just working for and on your own.

They are also about acquiring and having the necessary management skills, industry expertise, technical skills, financing and long term vision to grow and succeed.

Understanding what the stakes are will help to confirm if you are suited to business and self-employment or stick to simply, working for others. SME

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>>>>>>>>STARTING UP • Financial for Starting Up >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Financial

For Starting Up Can you start or run a business with little or no money? ...........................................................................................................................................

PERSONAL SOURCES - FORK OUT YOUR OWN MONEY

No matter how groundbreaking the business ideas, many cannot get past the starting gate without some form of funding.

One of the reasons for the failure of many small businesses is that they under-capitalized their business. Knowing how much you need to start until you reach the break-even point is crucial to your business sustainability.

Most start-ups make use of the personal savings,cash sources or other “nest-eggs’ of the founder. This type of investment, also known as bootstrapping, maximizes an entrepreneur’s control over the business. It can later be a strong signal to potential investors or funders of the entrepreneur’s commitment. When you use your own money, you tend to tread carefully.

• • • •

How much money is required to start the business?

How much you have and how much to borrow?

How long is the finance needed?

What security or collateral can you or are willing to provide?

• Do you have any planned resources to get extra or balance funds i.e. family members, friends, banks, assets, etc?

• In lieu of return for investment, are you willing and prepared to give up control or ownership of the start-up?

BORROWING FROM FRIENDS AND FAMILY This may seem old school but is common. Friends or family may provide money directly to the entrepreneur. It is quicker and cheaper compared to applying for a bank loan. The interests (if any) and the repayment terms can certainly be more flexible and negotiable.

Professional advice, like drawing up a formal agreement, is advised if the sum involved is substantial to avoid future disagreements and offer a solid basis for the business relationship.

The finance needs should take into account some key areas like:• Set-up costs - costs that incur before the business starts to operate and trade.

• Start-up costs - assets that the business needs before it starts to trade.

• Working capital - for payment of stocks, credit to customers, operational expenses, etc.

• Growth and development costs.

RE-MORTGAGING Re-mortgaging is a popular way to raise loan-related capital.

An entrepreneur takes out a second, often larger mortgage on a private property (i.e. usually house for start-ups, factory or building for established ones) and then invests some or all of this money into the business. It may be considered low-cost financing but the risk is, if the business fails, the property will be gone too.

Financing is often the hardest hurdles in starting a business, more so if from the ground. A would-be entrepreneur must have a great and clear idea of how to turn it into a successful venture. More than ever, if the required finances cannot be raised, the business is unlikely to get started.

BANK BORROWING Yes, bank borrowing is possible. There are many forms but the most common are bank loans or overdrafts. An overdraft is a short-term finance widely used for start-ups and small businesses. Bank overdrafts are excellent for handling seasonal fluctuations in cash flow. A bank loan provides a longer-term kind of financing for a start-up but banks usually request for some form of collateral or security. Bank loans are good for financing investment in fixed assets as the interest rate is generally lower than that of an overdraft. Always bear in mind that a bank loans money based on the borrower’s ability to pay.

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BANK RAKYAT Bank Rakyat was established on 28 September 1954 under the Cooperative Ordinance 1948. Today, Bank Rakyat is the biggest Islamic cooperative bank in Malaysia with assets totalling RM84.70 billion as at September 2013.

Bank Rakyat is the first Development Financial Institution (DFI) that introduced Islamic Banking to the industry in 2003.

The transformation in 2003 of the Bank from a conventional banking system to a banking system based on Syariah has enabled the Bank to record encouraging profits year after year.

We continue to expand our product lines and customer facilities that are varied and innovative. The products and facilities include consumer banking, commercial financing, savings and investments as well as products of financial planning to satisfy the many demands of a wide spectrum of modern day customers.

Efficient delivery channels continue to be expanded and continuously improved. We will also continue to maintain the friendly corporate image, putting us on a sound footing as Your Choice Bank.

We have received various recognitions as an industry player and as an outstanding cooperative organization in Malaysia as well as internationally.

As an entity under the control of the Ministry of Domestic Trade, Cooperatives and Consumerism, Bank Rakyat is committed to support the mission of the Ministry to consolidate the cooperative sector as the mainstay of economic growth of the nation via all the efforts and steps that we have put together.

To date, we have 144 branches with more than 600 automated teller machines (ATMs) and cash deposit machines (CDM), and 77 Ar-Rahnu Xâ&#x20AC;&#x2122;Change including 10 Rakyat Xcess nationwide. Bank Rakyat also operates our call centre, teleRakyat that can be reached at 1-300-88-1BANK (12265) and the iRakyat internet banking at www.irakyat.com.my. We can be reached at our official website at www.bankrakyat. com.my of visit us on our Facebook or Twitter page at / myBANKRAKYAT. SME

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EQUITY FINANCING Equity finance is raising finance from external investors in return for handling over a share of your business. A business may be suitable for equity financing if:• • • •

It has fast growth potential.

It has innovative product(s).

It has a strong management team.

It has strong intellectual property.

GOVERNMENT PROGRAMMES Grants are one of the most common assistance provided by the Government. A grant is a sum of money given for a specific project or purpose. A grant usually covers only a part of the total costs but as along as the terms and conditions attached are adhered to, the recipient do not have to repay it or give up shares in the business. As such, grants are not counted as debt.

However, the application process can be time-consuming and there is also a lot of competition especially for popular grants.

At times, the applicant may need to show proof of progress of the project to the grant body.

FIND AN ANGEL Business angels are private, professional and high net-worth investors who usually invest in start-ups or young businesses that need to fund activities for product development or market expansion, but with high growth prospects. They can make investment decisions quickly but will still need to see that you have a good business plan before they commit. They also seldom request for any collateral, repayments or interests.

Some business angels may take an active role in the business and can be a useful source of knowledge and mentoring.

become outdated or obsolete, or is only used occasionally.

Lease agreement has three types - finance leasing, operating leasing and contract hire.

BUSINESS PARTNERS Business partnering is a choice if the business cannot sustain the total capital requirements, needs additional funds for expansion or product development, the needs for specific skills and knowledge contribution or simply because the new partner has excellent business networks to bring into the partnership. Partnerships are ideal when the partners are all in the same fields such as lawyers or doctors where they can share the duties.

Then again, suitable business angels are not easy to find and when found, you must be prepared to give up a share of your business. As angel investors are becoming more popular and sophisticated, they have also become choosy and tend to focus more on later-stage companies with established records and performance.

A partnership agreement is a good way to make things official no matter who your partner is. A basic partnership agreement should be written to include crucial areas like percentage of share between partners, roles and responsibilities, exit clauses, compensation and payments. If you can’t start right, it is better not to start at all when less is at stake. SME

LEASING Leasing allows a business owner to acquire the equipment or assets he needs that he might otherwise be unable to afford on his own such as furniture, computer equipment, vehicles, plant or machinery. It can also free up the working capital to be used in other areas of the business and save from having to take out a large loan to buy outright. Leasing generally is used on equipment that has high maintenance costs, can quickly

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>>>>>>>>STARTING UP • Right Location & Setting Up Your Office >>>>>>>>>>>>>>>>>>>>>>>>>>>

Right Location

& Setting Up Your Office Most people know that a good location matters to business but choosing the right one can sometimes be time consuming and daunting. ...........................................................................................................................................

• Space and size. Look beyond square footage to evaluate how space can be efficiently maximised to suit your business needs so that you can avoid paying for space you cannot use or don’t need.

Ideally, a business should be located at some place convenient to customers, employees and suppliers with the right price tag.

The three most important factors when choosing or investing in real estate have always been the three old cliché – location, location, location.

• Brand and image. Think of your location as a physical representation of your brand. Having a prestigious address could increase your credibility.

Although location is not always the only factor when deciding on a place to run your business, it is certainly near the top of any plan. In many nature of business, such as retail, it can mean success and failure. The chosen location not only should work for you but your customers, suppliers or potential investors. More than often, it should also be helpful in attracting and maintaining the employees. However, factors to consider when choosing a location also depend on many situations such as:-

• Security and safety are important for both employees and customers.

• Zoning requirements. Although remote, sometimes you have to make sure that your nature of business is allowed in a particular area before you sign the lease.

• Cost is costly. Is the chosen location within your budget?

The accompanying or indirect costs like parking fees must be affordable for your employees and customers

• Visibility and accessibility. Being close to targeted clientele is a plus. Sometimes, being at different side of a street in the same area can make a huge difference. If customers need to go far for a U-turn to reach you, chances are they may bypass you altogether.

• Convenience. Is the location easy to locate, with parking facilities, or daily conveniences and local amenities like cafe/restaurants, shops, banks, etc?

• Delivery restrictions can cause inconvenience for your suppliers so you need to ensure that your premise is accessible if you have regular deliveries.

• Your competitors are competitive. Although some businesses can benefit from being located in a cluster of similar businesses, many find that being in a highly competitive area can have a severe impact on sales and profitability.

• Local government/council rules and regulations such as charges for waste collection, sewage services, etc can add greatly to the ongoing costs of locating in a particular area.

As your business grows and expands, so are your real estate needs. You may have to decide whether to remain in the existing space or move, and whether to lease or purchase.

For business owners who already have a steady income and proven business model, property ownership can offer significant benefits. Monthly payments/rental costs are predictable as there are no longer risks or worries of any rental increases. You can enjoy tax benefits and the ability to use the property as an income-producing asset. However, ownership does come with other stakes too such as the need to come

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Serviced Office A serviced office is ideal for a new business. floor or building is fully furnished and the leasing terms are normally flexible which may be as short as 3 months or more typically, 6, 9 or 12 months. This convenience provides many businesses the much needed flexibility to shrink or expand as their businesses dictate.

The service office ‘landlord’ or service provider takes responsibility for all services to the building/floor and offers a wide range of business services including reception, telephone answering services, secretarial support, conference and meeting facilities, video conferencing, high-speed internet access, mail boxes, etc.

Many new and existing businesses are opting for serviced offices as part of their property strategy. These businesses, not necessarily small may choose serviced offices where they will be able to take additional space when needed or when they cannot accurately predict their headcount figures for the short term. There are also companies who take up projects in varied locations and serviced offices are the best solution. Serviced offices offer total office solutions and virtually eliminate real estate capital expenditure. It is also a perfect choice in times when the traditional property market is so overheated that suitable offices are either hard to find or way beyond the projected budget of companies, especially start-ups.

Virtual Office A virtual office allows you to be on the move and yet working full time in the office.

up with a significant amount of capital for down payments and other legal expenses. As such, many entrepreneurs prefer the flexibility and lower-risk nature offered by leasing.

If a business size changes, a lease provide the option to move spaces without the concern of selling or renting out.

Complications in selling or renting out may affect business liquidity too.

Virtual offices are ideal for small businesses, start-ups or simply any entrepreneurs who do not want a long-term lease contract or the price of a traditional office. They are great for companies wanting to open in new market but with minimal risks while they ‘test the waves’ before taking the plunge.

Whatever the use or reasons for choosing a virtual office, cost is a major factor why virtual office is a viable business solution.

TYPES OF PREMISES The nature of business determines very much the choice of location and the need of a location. The types of premise you choose to rent and the location are influenced by the type of business you are running.

Virtual offices are also suitable for small business owners like SMEs that work from home but wish to build and maintain a professional image, or those who have a main office but are also establishing a satellite office for a regional presence. Most virtual offices offer national and international locations, giving business owners places to do business around the world. More so when virtual offices are mostly located in prime business districts or locations, allowing small business owners to build and maintain a professional image with a professional address.

These are good ‘go green’ option for promoting environmental sustainability.

Warehouse A warehouse is suitable for businesses which need a large amount of storage with minimal office space. A warehouse can be anywhere and most of all do not need to be in high traffic, well-known area. Accessibility is also not a concern as it is mainly for storing stocks, equipment, furniture etc.

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Nonetheless, these are minor drawbacks which are also experienced with any traditional office setting. It is how you choose the virtual office and take control of the dynamics of its operation that will ensure the smooth running or success of your business.

Retail Shop

Home Office

Factory

A home-based business is a small business that operates from the owner’s home office. A home office usually does not have any shop frontage, customer parking or advertising signs.

Aside from location, a home office is ideal if you have a small number or no full-time employees.

Factories are good choices for business such as manufacturing, industrial sales, electrical repairs, furniture makers, etc. A business owner can choose a location appropriate for his business type and have it fitted out to suit the required needs.

A retail shop can also be an office, allowing you to display your goods and services. A stand-alone retail shop may have a lower rent than one in a shopping centre but less passing traffic.

Mobile

• A separate, clean and well-lighted place for the owner to run the business free from distractions and other mundane household arrangements.

• A place to store information about your business i.e. computer, filing cabinet, etc.

• A place to communicate with your customers i.e. telephone, fax machine, internet connection, etc.

Mobile locations are suitable for businesses on the move such as plumbing, gardening, electrician, etc. who do not need to lease or purchase premises.

Technology Incubators Technology incubators can offer accommodation, business support, laboratory and office facilities for start-up technology businesses. SME

Home offices are now a rising trend as they can compete with small commercial businesses and save on many overhead costs, rent being the most obvious. Household expenses like electricity, water and phone bills can be shared across the household and the business.

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>>>>>>>>STARTING UP • Intellectual Property >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Intellectual

Property Intellectual property (IP) refers to creations of the mind - inventions, literary and artistic works, symbols, names, images and designs. ...........................................................................................................................................

Protecting intellectual property is crucial to the success of your business. Intellectual property includes items that you have created or designed which can provide you with an economic benefit.

Malaysia is a member of the World Intellectual Property Organization (WIPO) and a signatory to the Paris Convention and Berne Convention which govern these intellectual property rights.

For innovative SMEs, intellectual property is one major asset which can be both a boon and hindrance. It is because intellectual property rights allow a company or owner to benefit from their own creation or investment in a creation.

At the same time, it can also be a deterrent for SMEs as many tend to be followers rather than pioneers in creating intellectual property.

Malaysia is also a signatory to the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) signed under the auspices of the World Trade Organization (WTO).

WHY INTELLECTUAL PROPERTY NEEDS PROTECTION & IS WORTH PROTECTING Intellectual property which is protected under the Malaysian laws are patent, trade mark, copyright, industrial design, geographical indication and layout-designs of integrated circuit. Plant variety is also another component of IP which is under the purview of the Ministry of Agriculture (MOA).

Intellectual property is divided into two categories:• Industrial property consisting of patents for inventions, trademarks, industrial designs, integrated circuits and geographical indications.

• Copyright and related rights consisting of literary and artistic expressions like novels, poems, films or architecture and the rights for performing artists in their performances, broadcasters, producers of phonograms, etc.

Strategies need to be developed so that you do not put your business at risk by not protecting your intellectual property rights.

The power and privilege of intellectual property no longer belong exclusively to big businesses. The revolution of the internet and other digital technologies are making intangible assets such as intellectual property a much more powerful device for all businesses.

The first key is always not to make your idea or creation known publicly before you have had a chance to protect it. Once the competition starts learning about it, or replicating it, it may be too late and you lose the legal right to make it exclusively yours and enjoy its economic and commercial benefits.

As the same with properties, products and services, intellectual property can be bought, trade, licensed to others, owned, sold or bequeathed. This is useful in times of financial needs such as extra capital. It can also provide important and constant revenue through royalties. Intellectual property is valuable that many businesses list it among their assets on the balance sheets.

Intellectual property rights enable the creators, inventors or businesses prevent unauthorized exploitation of their creations, products or services.

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SMES & INTELLECTUAL PROPERTY Malaysian SMEs are still not widely exposed or concerned about the importance of intellectual property protection, more so its relevance in meeting the challenges posed by globalization. Many still place emphasis on informal methods to protect intellectual property which they find more familiar, cheaper, less time-consuming, less-hassle and equally effective. As such, many SMEs find the formal or legal channels of registering any intellectual property rights as uneconomical, troublesome and time wasting.

Despite the importance of SMEs being the driving force of national economy through employment creation, investments and exports, and the potentials offered by intellectual property for enhancing SMEs competitiveness, SMEs often underutilise the benefits offered by intellectual property protection.

Many SMEs understand the need to protect their intellectual property ...but many would like to be able to do it in a cost effective way. Hence, setbacks are common when large corporations and big companies take over the rights or have a head start...

There is a need to raise awareness of the relevance of intellectual property for SMEs and promote efforts to make intellectual property more accessible, friendly, more affordable but less cumbersome for SMEs.

In accordance with TRIPS, the Patents Act 1983 and the Patents Regulations 1986 stipulates a protection period of 20 years from the date of filing an application. The patent owner has the right to exploit the patented invention, to assign or transmit the patent and to conclude a licensed contract.

PATENT The Patents Act 1983 and the Patents Regulations 1986 govern patent protection in Malaysia.

The average time for grant is between 24 to 36 months after filing the Request for Examination. An applicant may file a patent application directly if he is domicile or a resident in Malaysia. A foreign application can only be filed through a registered patent agent in Malaysia acting on behalf of the applicant.

Patent is an exclusive right granted for an invention. An invention is patentable if it is:• Novel, meaning it is new.

• It involves an inventive step .

• It is industrially applicable.

Non-patentable subject matters are:• Discoveries, scientific theories and mathematical methods.

• Plant or animal varieties, essentially biological processes for the production of plants and animals other than manmade living microorganisms (In Malaysia, plant varieties are protected under the Plant Variety Act).

• Microbiological processes and the products of such.

• Schemes, rules or methods for doing business, performing purely mental acts or playing games.

• Methods for the treatment of the human or animal body by surgery or therapy and diagnostic methods practised on the human or animal body.

TRADE MARK Trade mark protection in Malaysia is governed by the Trade Marks Act 1976 and the Trade Marks Regulations 1997.

A trade mark is a mark which distinguishes the products and services of one from another. It can consist of words, logo, pictures, letters, device, label, brand, heading, signature, numbers, names or a combination of these.

A trade mark is also a marketing tool to differentiate the product of a particular trader from the rest.

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INDUSTRIAL DESIGNS

The owner is allowed to insert the ™ or ® symbols to the registered trade and can exercise control over the use of the trade mark in relation to the goods and services like dealing, assigning as well as to license its use.

Industrial design protection in Malaysia is governed by the Industrial Designs Act 1996 and Industrial Designs Regulations 1999. The Acts provide the rights of registered industrial designs as that of a personal property capable of assignment and transmission by operation of the law.

The period of protection is 10 years, renewable for a period of every 10 years thereafter.

An industrial design is the ornamental or aesthetic aspect of an article. The design may consist of three-dimensional features such as the shape and configuration of an article, or twodimensional features, such as pattern and ornamentation. The design features must be applied to an article by any industrial process or means of which the features in the finished article appeal to eye.

Malaysia acceded to these agreements which were signed on 28 June 2007 and are significant in facilitating trade mark registration:• The Nice Agreement concerning the International Classification of Goods and Services.

• The Vienna Agreement which establishes a classification for marks which consist or or contain figurative elements.

Registered industrial designs are protected for an initial period of 5 years, renewable for another two 5-year terms, bringing to a total of 15 years of total protection.

To be eligible for registration, industrial designs must be:• New and do not include a method of construction or design that is dictated solely by function.

• The design of the article must not be dependent upon the appearance of another article of which it forms an integral part.

As with patents, local applicants may file applications on their own while foreign applicants will have to do so through registered trade mark agents.

The average time for grant is 12 to 24 months.

The term of protection is 5 years from the date of application, extendable to a period of 15 years. The owner shall have the rights to assign and transmit the design of article and said registered design is considered as personal property.

Local applicants can file registrations individually or through a registered industrial designs agent. Foreign applicants will need to seek the services of a registered industrial designs agent.

COPYRIGHT The Copyright Act 1987 provides comprehensive protection for copyrightable works. The Act outlines the nature of works eligible for copyright (including computer programmess), the scope of protection and the manner in which the protection is accorded. There is no registration for copyright works.

A unique feature of the Act is the inclusion of provisions for its enforcement. The amendment of the Copyright Act 1987, which enforced on 1 October 2003 confers power of arrest (including arrest without warrant) to Enforcement Officers of the Ministry of Domestic Trade and Consumer Affairs. A special team of officers of the MDTCA were appointed to

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GEOGRAPHICAL INDICATIONS The Geographical Indications Act 2000 provides protection to goods following the name of the place where the goods are produced, where a given quality, reputation or other characteristic of the goods is essentially attributable to their geographical origin. This protection is applicable to goods such as wine and spirit, or natural or agricultural products or any product of handicraft or industry. Geographical indications which are contrary to public order or morality shall not be protected under the Act. The period of production is 10 years and renewable for a period of 10 years thereafter.

UTILITY INNOVATION Utility innovation provides an alternative for Malaysian SMEs to protect their invention. A utility innovation must be new or novel and industrial applicable. It, however, does not have to fulfill the mandatory requirement for inventive step as in patents.

enforce the Act and is empowered to enter premises suspected of having infringing copies and to search and seize infringing copies and contrivances.

There are times when SMEs may not be able to meet the stringent requirements set out for the grant of a patent especially when it involves only a minor improvement of an existing product or process. The registration for utility innovation is relatively less rigid. Registration procedures are also faster, acquisition and maintenance fees are generally lower than that of a granted patent.

Copyright protection for literary, musical or artistic works is for the duration of the life of the author and 50 years after his death. In sound recordings, broadcasts and films, copyright protection is for 50 years after the works are first published or made.

The average time for grant is 24 to 36 months after the filing of the Request for Examination.

The Act also provides protection for the performer’s rights in a live performance which shall continue to subsist for fifty years from the beginning of the calendar year following the year in which the live performance was given.

The term of protection of utility innovation is 10 years from the date of filing an application for utility innovation. It can be extended for another 5+5 years upon proof of use.

LAYOUT DESIGN OF INTEGRATED CIRCUIT The Layout Designs of Integrated Circuits Act 2000 provides for the protection of layout designs of integrated circuits based on originality, creator’s own invention and the fact that the creation is freely created. There is no registration for the layout design of an integrated circuit.

IP FINANCING SCHEME The Government is also setting up a RM200 million intellectual property financing initiative to bankroll SMEs in putting up their patents as collateral, as well as offering a 2% interest rate subsidy to help them expand their businesses. In addition, the Government is also offering a 50% guarantee through the Credit Guarantee Corporation (CGC) to assist SMEs wishing to develop their intellectual property, in increasing opportunities to bring them to a higher level of commercialization.

The duration of protection is 10 years from the date of its commercial exploitation or 15 years from the date of creation if not commercially exploited. The Act also allows for action to be taken by the owner if such rights recognized under the Act have been infringed. The right can also be transferred either partly or wholly by way of assignment, licence, wills or through the enforcement of law.

The IP financing scheme is offered through Malaysian Debt Ventures Bhd.

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This initiative is timely for SMEs to develop their IPs into a source of new wealth creation which can be used to improve their competitive edge, generate alternative but good revenues and improve access to financing.

Aside from the tax relief, there are also various grants and incentives provided for research and development by different organizations. The grants are:-

On the other hand, Malaysia is also the first country in South East Asia to carry out intellectual property valuation through the Valuation and Property Services Department (JPPH). This unit is managed with the cooperation of MyIPO and operates under the Domestic Trade, Cooperatives and Consumerism Ministry.

• IP Grant Scheme by MSC Malaysia GlobinMed Seed Fund by the Institute of Medical Research, Ministry of Health Malaysia.

• TechnoFund by the Ministry of Science, Technology and Innovation.

• Brand Promotion Grant by SME Corporation Malaysia .

• Cradle Investment Programme.

• University Crade Investment Programme.

MyIPO has been mandated to drive the intellectual property valuation initiatives which focus on 4 categories:• Training of local IP valuers.

• Valuation of IP rights for suitable local SMEs .

• Developing a national IP valuation model that is ‘Malaysian’ in nature.

• Creating an IP market platform for IP rights to be transacted.

NATIONAL INSTRUMENTS ACADEMY & INNOVATION NUCLEAR (NI-AIN) NI-AIN is the result of a tripartite agreement between engineering tools firm National Instruments (NI), SME Corp Malaysia and Technology Park Malaysia Corporation (TPM) to drive talent and intellectual property development among SMEs in the country.

The valuation carried out includes for designs, trademarks, lyrics and copyrights.

IP INCENTIVES FOR SMESs

Announced on 13 September 2012, the NI-AIM innovation nucleus initiative was derived from the national Performance Management Delivery Unit (PEMANDU) Electrical & Electronics 2.0 Lab and is one of the Entry Point Projects (EPP) under Malaysia’s Economic Transformation Programme (ETP), which supports the building of a test and measurement innovation hub.

The Government’s incentives to incentive the IP sector can also be seen from tax deductions given to SMEs on expenses incurred in the registration of patents and trademarks in the country. The tax relief is effective from 1 January 2010 until the year of assessment of 2014.

Apart from protecting the invention in Malaysia, SMEs can also consider protecting their inventions overseas via several routes such as national route, Paris Convention or the Patent Cooperation Treaty (PCT). This is particularly beneficial to SMEs as they can enjoy an important competitive advantage in their export markets.

SMEs in Malaysia should generate intellectual property rather than getting IP to come. Currently, the top filers for intellectual property in the country are universities and government-linked companies although the awareness among SMEs is improving.

SMEs should see intellectual property as an investment and not as an unnecessary cost or obstacle. It is important to venture into knowledge-based products and investing in research and development. In fact, IP portfolio can be used as leverage when seeking funds for your business. The idea is to be always on the lookout for information and ideas on how to create and maximize wealth with your intangible assets. SME

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>>>>>>>>STARTING UP â&#x20AC;˘ Managing Waste >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Managing

Waste Solid waste is useless and unwanted products in the solid state discarded by society. ...........................................................................................................................................

Solid waste is one of the major environmental problems in Malaysia. The amount of solid waste produced in Malaysia is expected to rise to 30,000 tonnes daily by 2020. The figures continue to increase due to the increasing population and development. Only less than 5% of waste is being recycled.

The waste produced in Malaysia is influenced by local conditions. Understanding the nature of waste generated can determine the efforts towards reducing, eliminating and managing solid waste in the country. For example, compared to other developed countries, wastes in Malaysia have a lower content of paper, glass, plastic and metal and a higher percentage of food waste. Food waste has comparatively high water content; coupled with the high humidity and temperatures accelerate the decomposition of organic waste.

This makes daily collections a necessity due to health and safety.

At present, the per capita generation in Peninsular Malaysia is nearly 1.2kg municipal waste amounting to 19,000 tonnes of waste per day. This amount is set to rise to 30,000 tonnes daily by 2020, proportionate with the population growth.

We throw and dispose a massive amount of waste and yet the standards of waste management in the country are relatively poor. Companies and individuals alike still possess poor knowledge about solid waste and waste management. These include inefficient storage and collection systems, municipal wastes mixing with hazardous waste, insufficient sanitary landfills, etc. One of the biggest polluters of rivers is improper solid waste management. Solid waste affects climate change.

Landfills methane and GhG emissions are produced when organic waste is left to decay.

Many do not know that food waste has the potential to be turned into a business opportunity. One of them is composting.

The capital required and operational costs are generally lower than other waste treatment options available right now.

Producing compost as a soil conditioner is also a potential avenue to generate revenue.

Business-as-usual is not sustainable. In order to have an efficient solid waste management, bad practices and norm must be discarded.

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TYPES OF WASTE & WHAT THEY ARE

SOLID WASTE & PUBLIC CLEANSING MANAGEMENT ACT 2007 (ACT 672)

Solid waste, in simplified terms, is referred to in the following items:• Garbage - usually refers to food waste but may include other degradable organic waste.

• Rubbish - refers to combustible and non-combustible solid waste aside from food waste.

• Refuse - a collective term for solid waste including both garbage and rubbish.

• Litter - the odds and ends left lying around in public places.

In 2007, the Malaysian Parliament passed the Solid Waste and Public Cleansing Management Act (Act 672), SWPCM, and the Solid Waste and Public Cleansing Management Corporation Act (Act 673). They were enforced on 1 September 2011. In the process the Parliament also amended the Local Government Act 1976 to remove the power of local councils regarding these activities.

The SWPCM provides the Federal Government legal powers to manage public cleansing and solid waste disposal. The enactment ensures the uniformity of law relating to the management of solid waste and public cleansing throughout Peninsular Malaysia and the Federal Territories of Kuala Lumpur, Putrajaya and Labuan.

Controlled solid waste in Malaysia refers to any solid waste of the following categories of solid waste:• Municipal solid waste which is predominantly household or domestic and commercial wastes.

• Construction and demolition waste which is waste from demolition and construction activities.

• Hazardous and toxic solid waste which is waste that poses threats to public health or environment.

• Bio-medical or clinical waste which is waste products that are produced by healthcare premises.

• Electronic waste or e-waste which is waste consisting of any electrical or electronic appliances.

What are the key points in Act 672?

• It is mandatory for all operators of solid waste and public cleansing management services and facilities to apply license from the Director General of the National Solid Waste Management Department.

RECYCLING IS A THRIVING INDUSTRY The recycling industry was estimated at RM476mil in 2005 but increased to more than RM600mil in 2011.

The prices of recyclables are highly market-driven and dependent of commodity prices which are highly seasonal in nature. As such, the uncertainty of demand prices and fluctuations leads to a lack of incentives to end customers.

Collectors and middleman traders tend to hoard recyclables until the selling price is right. This practice leads to feedstock problems for recyclers. All these in turn hamper recycling efforts.

SOLID WASTE MANAGEMENT UNDER THE 10th MALAYSIA PLAN • The Federal Government assumes full responsibility of solid waste management from local authorities/councils.

• The collection of household solid waste to be privatised to three concessionaires .

• Other private operators to be licensed to operate solid waste management and public cleansing services.

• Waste collection for households twice a week and daily for wet markets.

• The existing 112 unsanitary landfills to be closed and rehabilitated, some to be upgraded to sanitary landfills.

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SOLID WASTE AND PUBLIC CLEANSING CORPORATION The Corporation was established under the Solid Waste Management and public Cleansing Corporation Act (Act 673).

It commenced operation on 1 June 2008 under the purview of the then Ministry of Housing and Local Government.

It complements and ensures the successful implementation of the National Solid Waste Management Policy which aims to provide a comprehensive, integrated, cost-effective and sustainable solid waste management system in line with society’s demand for environmental conservation and public well-being.

Its functions:• Implement policy, plan and strategies.

• Monitor compliance with the standards, specifications and codes of practice.

• Implement measures to promote public participation and improve public awareness.

• Maintain and improve the standard and level of the SWPCM services.

• Any construction, alteration or closure of prescribed solid waste management facilities must obtain a prior written approval from the Director General of the National Solid Waste Management Department.

• All works on solid waste and public cleansing management is fully undertaken by Perbadanan Pengurusan Sisa Pepejal dan Pembersihan Awam (PPSPPA).

• PPSPPA takes over the jurisdiction from local councils over the collection and disposal of garbage, cleansing of public roads, public places, public toilets and drains.

• PPSPPA assumes the management and operation of all landfill sites under local councils including identifying and evaluating sanitary landfills, transfer stations, incineration technologies and plant management.

In addition, Act 672 also deals with the:• Control of solid waste generator and persons in possession of controlled solid waste • Enforcement • Reduction and recovery of controlled sold waste (Source: Soild Waste & Public Cleansing Management Corporation @ www.ppsppa.gov.my)

NATIONAL SOLID WASTE MANAGEMENT DEPARTMENT This department is under the Ministry of Urban Wellbeing, Housing and Local Government.

Its functions:• Propose policy, plans and strategies.

• Formulate plans for solid waste management facilities (location, type and size).

• Set standards, specifications and codes of practices.

• Exercise regulatory functions.

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REDUCE, REUSE, RECYCLE Preventing and managing waste form an important part of sustainable development. Waste implies unnecessary depletion of natural resources, unnecessary costs and environmental damage. Sustainable waste management is about using resources more efficiently.

The 3R principles of reduce, reuse, recycle were introduced for this matter.

MALAYSIAN SOCIETY OF WASTE MANAGEMENT AND ENVIRONMENT (MSWME) The society was registered with the Akta Pertubuhan 1966 on 4 January 2010.

It is an affiliation of waste management experts comprising members from the academia, industry, government and nongovernmental organizations dedicated to the contribution towards the progress of waste management and the environment. MSWME is also affiliated with the Society of Solid Waste Management Expert in Asia and the Pacific Islands (SWAPI).

The objectives of MSWME are:• To establish a network, foster working relationships and further encourage knowledge/information sharing at the national and international level.

• To evolve and improve current waste management practices in Malaysia via scientific exchange, technical support, educational programs and publications.

PRIVATISATION OF SOLID WASTE MANAGEMENT The privatisation of solid waste management under the Solid Waste and Urban Cleansing Management Act 2007 (Act 672) came into effect on 1 September 2011.

• To represent Malaysian Waste Managers at the international and the international level and provide waste management expertise tailored to local and foreign requirements.

All solid waste collection and urban cleansing services are under the purview of three concessionaires overseeing three zones.

Contact Details: Malaysian Society of Waste Management and Environment

By 1 September 2012, new enforcement was in place to ensure a systematic and efficient solid waste management such as:-

Tel Fax

: 603 - 7967 6739 : 603 - 7967 4178

• A 2+1 collection system – twice a week for organic waste and non-recyclable waste and once a week for bulky and green waste and recyclable • New standards on waste bins and garbage collection trucks • Enforcement of KPI on collection schedule • Enforcement on leachate spillage and cleansing (Source: National Solid Waste Management Department, Ministry of Housing and Local Government)

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>>>>>>>>STARTING UP • Education & Training >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Education

& Training SMEs in the country enjoy many levels of training, learning or upskilling either internally or from external sources, both consisting combinations of formal and informal learning. ...........................................................................................................................................

“I have what it takes to run my own business. I have been running it like this since my father’s time, who also run it as his father and grandfather did before him.” This is a typical response of the average SMEs, especially indigenous ones, with regard to education and training. A lot of SMEs are not proactive in learning and training. This is worrying as they need to adopt a learning environment if they want to prosper and not merely surviving.

How can the country continuously upskill the SMEs workforce so that it can continue to contribute to enterprise growth and expansion but at the time still maintains flexibility within the workforce by supporting transitioning where and when required.

Studies conducted by SME Corporation Malaysia showed lack of knowledge and information was among the issues affecting SMEs operations. The tendency to access information to improve operations is low among local SMEs. One of the factors contributing to the low utilisation of education and training is the low level of awareness about services offered by public or private service providers in these areas. Lack of knowledge and limited resources are barriers for SMEs to gather information about Government advisory services.

Workforce education is an important contributing factor to future economic growth of SMEs in Malaysia; without education business innovation will stagnate and progressively becoming irrelevant as time passes.

Parties that are involved in education and training, expressly for SMEs, have a central role in helping SMEs maintain competitiveness. These service providers must gear up to meet the specific needs of SMEs adult learners and their learning capacities, at all level of all industries especially skills in innovation, customer interaction and research and development.

SMEs, in particular the micro-sized business owners are unaware of the existence of business advisory services.

DEVELOPMENT PROGRAMMES FOR SMES BY SME CORPORATION MALAYSIA SME Competitive Rating For Enhancement (SCORE) SCORE, developed by SME Corp. in 2007, is a diagnostic tool used to rate and enhance the competitiveness of SMEs based on their performance and capabilities which are measured based on 7 parameters across all sectors.

The 7 parameters are:• Business Performance • Financial Capability • Technical Capability • Production Capability • Innovation • Quality System • Management Capability

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Ratings 0 - 2 Star

3 Star

4 Star

5 Star

Characteristics Very basic with manual / semi automated processes • High Level of automation • Able to implement quality systems • Undertakes product and process improvements • Intellectual property registered • Ready for export compliance certification • Fully automated • lnvest in process / product improvements • Most likely exporting • With certification for export • Good branding • Currently exports with compliance to export requirements

Types of Assistance Integrated, handholiding assistance

Recommend measures for improvements

Link with LSIs / MNCs / MATRADE

women entrepreneurs who make it into the league will be selected to attend the Female Entrepreneur Programme at the University of Oxford’s Business School.

SME - University Internship Programme

(Source: SME Corporation Malaysia)

SME Corporation Malaysia started this programme in 2008 as an initiative to link SMEs to universities as part of the Government’s efforts to enhance the synergy between the industry and universities in efforts to upgrade SME’s capacity and capability. This programme provides a structured learning opportunity to SMEs’ owners / CEOs or managers.

SCORE & E50 Winners SMEs with a SCORE rating of 4 stars and above will receive an exclusive invitation by SME Corporation Malaysia to join the Enterprise 50 (E50) programme. At present, there are 274 SMEs with four-star ratings. This move is to encourage SMEs to improve their efficiency, capability and management to improve their visibility to penetrate and stay in the global market.

This programme hopes to develop capable human capital to drive diverse management innovation and creativity in developing business acumen of new and existing entrepreneurs. It is based on the SME University of Japan’s hands-on approach, model for participants to learn on what it takes to become a world-class CEO.

The E50 programme, commenced in 2007, has seen the participation of 1726 homegrown companies across various industries and sectors. From this figure, 550 companies have won the award, some winning more than once.

Micro, small and medium enterprises, preferably those with SCORE rating of 2 stars and above, are eligible to participate.

The programme duration is 3 months (1 mini semester comprising of 8 common modules).

This move is in line with SME Corporation Malaysia’s target to have 15% of SMEs listed on the local bourse by 2015.

Currently there are 60 companies listed on the local bourse, 46 companies on the Main Market and 14 on the ACE Market.

SME Skills Upgrading Programme The aim of the SME Skills Upgrading Programme is to enhance the skills and capabilities of the employees of SMEs in the technical and managerial levels, especially in critical areas such as electrical and electronics, information technology, industrial design and engineering fields. There are 47 appointed training centres to undertake technical and soft skills training for SMEs. The current grant of 70% on the training fees for SMEs is for Technical and Soft Skills.

The top 50 are chosen from this pool of two hundred plus SMEs based not necessarily on the SCORE rating but on how the companies position themselves for the future and progressively move from one level to another. One of the attractive privileges of being an E50 winner is that the top 10 winners will be invited by SME Corporation Malaysia to join the Oxford Advanced Leadership Programme in which the corporation will bear 70% of the costs. At the same time,

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Business Accelerator Programme The Business Accelerator Programme provides advice and direction for SMEs through an integrated approach with guidance where participants will receive business and technical advisory services aimed at enhancing their business potentials.

In order to qualify, an SME must be incorporated under the Companies Act 1965 and possesses the criteria below:• Has at least 60% Malaysian equity • Venture Capitals / Co-ops shareholding of not more than 30% • Large Scale Institutions shareholding of not more than 20% • Valid business operating in a valid business premise • Acquire business license from the local authority • Full time business operator • At least 6 months in operation • Must undergo SCORE assessment and pass qualifying rating of 2 stars and above • Priority will be given to companies with good financial track record with financial institutions

The training is proposed to be conducted by SME Bank’s Centre of Entrepreneur Development and Research (Cedar) to equip SME owners and young entrepreneurs with relevant ICT and entrepreneurship skills. These courses are offered to potential SMEs who are interested to take advantage of the loans offered by SME Bank under its SME Development Scheme Fund.

DEVELOPMENT PROGRAMMES FOR SMES BY OTHER PRIVATE INITIATIVES

The Ministry of Human Resources’ Manpower Department

Sustainable Supplier Development Programme Japan’s biggest retailer, AEON, and the United Nations Industrial Development Organization (UNIDO) have launched a Sustainable Supplier Development Programme (SSDP) in Malaysia that aims at increasing safe and sustainable sourcing, and business linkages between AEON and its suppliers in Malaysia. The programme builds on the UNIDO partnership programme and competence in SME development and trade capacity through upgrading to increase food safety, productivity and sustainability. This partnership, supported by the Japanese government, will benefit Malaysian SMEs by providing suppliers access to new markets, improvements in quality and food safety, increase productivity and implement best international practices of corporate social responsibility and sustainability in their daily operations.

MOHR, through its Manpower Department is one of the major providers of skill training programmes in the country. Its training programmes range from craft skill level to advanced technical skill level which are conducted through various institutions:• Industrial Training Institute provides formal skills training for school leabers and industrial workers so that they can acquire specialized skills in specialized areas as well as upgrade the skills of industrial workers.

• Japan - Malaysia Technical Institute, established in 1993, acts a cooperation project between the governments of Malaysia and Japan to produce skilled industrial technologies in advanced technology manufacturing, electronics, computer and mechatronics.

INTEL Malaysia & SME Bank A Memorandum of Understanding (MoU) has been signed between Intel Malaysia and SME Bank to explore and make available two training programmes by Intel to SME Bank to complement its existing SME community training and development programmes. They are the Intel Learn Easy Steps and Intel Entrepreneurship Basics Programmes.

• Advanced Technology Training Centre provides training opportunities at the pre and post-employment levels as well as produces skilled manpower in the area of advanced technology. SME

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>>>>>>>>EXPANDING • SME Loans & Grants for Business Expansion >>>>>>>>>>>>>>>>>>>>>>>>>>

Expanding

       

SME Loans & Grants For Business Expansion Human Capital - Powerful Asset For Business Growth Risk Management Brand Your Business Supply Chain Management Cloud Computing: Cost Saving & Effective Productivity Labour Customer Relationship Management (CRM) For SMEs 63

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>>>>>>>>EXPANDING • SME Loans & Grants for Business Expansion >>>>>>>>>>>>>>>>>>>>>>>>>>

SME Loans / Grants

For Business Expansion SME financing has increased from 31.15% to 38.5% between 2000 and 2010 but the total SME loans given to the SME sector as compared to loans given by financial institutions is still at below 10%. ...........................................................................................................................................

MARKET DEVELOPMENT GRANT BY MATRADE

SMEs rely more on banks for financing as compared to large corporations and multinationals which have the option through equity and bond markets. Therefore, SMEs financing requirements need to be addressed thoroughly in order to nurture more local businesses to grow and create more employment opportunities.

• A company, trade association and professional body are eligible to claim for a maximum grant of RM100,000 per applicant for eligible export promoting activities. Applicant must first be a registered MATRADE member.

• Under the 10th Malaysia Plan, an exit mechanism will be implemented whereby the cumulative grant entitled throughout the period 2011 - 2015 is limited to a maximum of RM300,000 per company.

• Applicants must be incorporated under the Companies Act 1965 with at least 60% equity owned by Malaysian.

The Credit Bureau Malaysia was set up in 2008 to provide comprehensive and credible credit information and ratings for SMEs. Credit reports are generated to facilitate access to financing. SMEs with limited collateral or track record are also able to benefit from the credit guarantee facility offered

by Credit Guarantee Corporation.

INNOFUND BY MOSTI

Bank Negara Malaysia and the Association of Banks in Malaysia have also introduced PARTNER 1, a simplified application form and documentation checklist. Subsequently, PARTNER 2 has also been introduced where reasons are provided for unsuccessful loan applications. This initiative is introduced so that SMEs have the opportunity to know and address the weaknesses in getting financing. Accordingly, SMEs under financial stress can also seek assistance from the Central Bank’s Small Debt Resolution Scheme.

• InnoFund is a grant scheme funding the development or improvement of new or existing products, processes or services with elements of innovation. Projects must have economic values and improve the social well-being of the community.

• There are two types – Enterprise InnoFund (EIF) and Community InnoFund (CIF). i) EIF is open for sole proprietors and micro or small enterprises. Quantum of funding is RM50,000 for sole proprietors and RM500,000 for micro or small companies. Project duration is up to 12 months. ii) CIF is open to registered associations, non-government organisations, cooperatives and community groups.

Quantum of funding is RM500,000 per project for up to 18 months.

The Government provides a range of programmes through various Ministries and Agencies to support SMEs in their business expansion. Assistance can be in the form of financial or support services.

The types of financial assistance can be in the forms of grants, soft loans, equity financing, venture capital, guarantee schemes or tax incentives.

SEED-CIP 500 BY CRADLE FUND SDN BHD (MINSITRY OF FINANCE) • CIP 500 is a commercialisation fund for budding companies.

• Conditional grants of up to RM500,000 to local start-up companies with innovative, technology-based products or services aimed at achieving commercialisation.

A maximum of two consecutive approvals per company.

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FACILITIES OFFERED BY EXIM BANK CONVENTIONAL BANKING FACILITIES

CREDIT INSURANCE FACILITIES

• Buyer Credit It is a chance for Malaysia exporters and contactors to bid for overseas’ contracts and tenders. This credit will be given directly to the foreign buyers or finance institution to make it more convenient for Malaysian goods and service importers. Loan disbursements will be made directly to the local exporter or contractor.

• Exporter Trade Credit Insurance (ETCI)(E) It is an insurance policy that acts as an “umbrella” protection for exporters, who make regular exports to overseas importers, from losses incurred due to buyers’ failure to make payment.

• Bank Letter Of Credit Policy (BLCP) BLCP will assist in securing payments of the Irrevocable Letter of Credit (ILC) to your bank. It covers participating banks that negotiate ILC issued by foreign banks against the foreign issuing bank’s failure to reimburse payment to the beneficiaries (i.e. Malaysian exporters) under the ILC.

• Project / Contract / Investment Fund This facility is available to locally owned and controlled companies, as well as Malaysian joint venture companies abroad, who bid and carry out projects/contracts or investments in another country. The facility provides financial support to Malaysian investors/contractors undertaking project overseas such as infrastructure, manufacturing and other development projects.

• Specific Policy It is a form of credit insurance that insures Malaysian exporters who undertake contracts or export of capital goods, or turnkey project, or construction works, or rendering services abroad, against the risk of non-payment by the overseas buyer. Minimum credit is from one to ten years.

• Bank Guarantee Made available to facilitate the issuance of bonds or surety for overseas contracts (i.e. advance payment bonds and performance bond) undertaken by Malaysian contractors, this allows said contractors to raise funds overseas.

• Buyer Credit Guarantee It helps Malaysia’s exporter in assisting overseas buyers to secure a long-term financing with a lender using the Buyer Credit Guarantee programme. With this programme, the Malaysian exporter is paid as if he has a cash contract, whilst the overseas buyer has time to pay the contract through the financing secured from the lender, which is backed by EXIM Bank’s guarantee. Minimum credit is from one to ten years.

• Supplier Credit Facility Malaysian manufactures, exporters and suppliers of locally made goods, can take advantage of this facility to support their export trade financing requirement through EXIM Bank’s trade financing facility. The facility offers Pre-Shipment and Post-Shipment Financing. The former finances working capital for production of goods, while the latter finances the export bill after shipment has been made.

• Overseas Investment Insurance (Political Risk Insurance) A policy to cover the risk of non-commercial losses or businesses established abroad by Malaysia’s companies - such risks include restrictions, transfer, war, civil disturbance, and breach of contract, as well as the right of ownership.

• Export Of Services The Export of Services facility can be used by Malaysian owned and controlled companies engaged in the provision of services for the global market, such as Information Technology Services, Construction, Telecommunication, Management or other technical professional services.

SHARIAH CONCEPT OF ISLAMIC BANKING

BY EXIM BANK: • • • • • • • • • •

• Export Credit Refinancing (ECR) As the name suggests, this scheme provides an alternative short term pre- and post-shipment financing to direct/ indirect exporters to promote the export of manufactured products, agriculture products and primary commodities. It is available at a competitive interest rate to a manufacturer or trading company with ECR credit line duly established with any participating commercial bank.

Overseas Project / Contract Financing-i Buyer Financing-i MalaysiaKitchen Financing-i Term Financing-i Supplier Financing-i Import Financing-i Export Credit Refinancing-i Bank Guarantee-i Letter of Credit-i Forward Foreign Exchange-i SME

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SOFT LOANS BY MALAYSIA INDUSTRIAL DEVELOPMENT CORPORATION (MIDF) SME Emergency Fund (SMEEF)

• Financing amount from minimum RM50,000 up to a maximum of RM500,000 for IT hardware and software, RM3 million for working capital financing and RM5 million for fixed assets and project financing.

• Various financing percentages and repayment schedules for different categories of financing purposes.

• The term of financing is up to 3 years including a grace period of up to 6 months.

• Fund is channeled by the Government via SME Corporation Malaysia to MIDF for implementation.

• To assist SMEs, of all economic sectors, which had their businesses adversely affected by natural disasters such as flood, storm, drought, beach erosion or landslide.

• Soft loan financing for purchases of machinery and equipment, refurbishment of premises and working capital such as purchased of raw materials and consumables.

• Financing amount is minimum RM50,000 up to a maximum of RM100,000.

• The percentage of financing is up to 90% of the cost of new machinery or equipment and up to 65% of the costs of used/reconditioned machinery or equipment which are not more than five years old.

• For refurbishment of business premises and working capital, the percentage of financing is up to 90%.

• Period of financing is up to 5 years excluding a grace period of up to 5 months.

FUNDS FOR SMALL & MEDIUM INDUSTRIES 2 (FSMI2) BY COMMERCIAL BANKS & ISLAMIC BANKS • Funds provided by commercial banks and Islamic banks to assist SMEs in export and domestic oriented sectors, growth and expansion.

• Minimum loan amount is RM50,000 up to a maximum of RM5 million (maximum amounts vary according to respective banks).

SCHEMES BY PERBADANAN USAHAWAN NASIONAL BERHAD SME Scheme

Soft Loan Scheme For SMEs • Fund is channeled by the Government via SME Corporation Malaysia to MIDF for implementation.

• The Scheme assists new and existing enterprises in projects, fixed assets and working capital financing.

• Sectors covered are manufacturing and manufacturingrelated services and services except insurance and financial services.

• For Bumiputera SME entrepreneurs keen to set or grow their manufacturing or service businesses with high growth and export potential.

• The scheme offers Syariah compliant financing products with funds ranging from RM500,000 to RM5 million.

• Repayment period is up to 7 years.

Pemborong PROSPER Scheme • A scheme for Bumiputera entrepreneurs who are keen to venture into or expand their wholesale distribution or supply businesses.

• It offers Shari’ah compliant products with financing from RM250,000 to RM5 million.

• Repayment period is up to 7 years.

PNS EQUITY INVESTMENT SCHEMES BY PERBADANAN NASIONAL BERHAD Investment In Pre-IPO Schemes • This is for companies with listing potential or capital raising initiatives to support business expansions; and has a listing potential within one year on Bursa Malaysia Securities Berhad.

• Maximum investment is RM10 million for up to 3 years.

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Investment In Mezzanine Companies

SDRS aims to provide assistance to SMEs that are constrained by non-performing loans and distressed SMEs with performing loans under multiple participating financial institutions through restructuring or rescheduling and where appropriate provide new financing. New financing is sourced from existing SME funds and schemed established by Bank Negara Malaysia.

• This is for companies with proven business models and growth potential to support their business expansions.

• Possess profit after tax for the last two years of audited accounts + current year profit after tax forecast of at least RM1 million.

• Shareholders funds of at least RM2 million.

Investment In Franchise Scheme

The maximum funding per customer is RM1.5 million. Since its inception in 2005, SDRS has assisted a total of 894 SMEs. Business owners are advised to seek assistance when they are in financial distress. This is because by addressing the problems at an earlier stage, there is a much positive chance of containing the deterioration and in turn enhances the prospect for a viable solution.

• For both local or foreign based franchise businesses with proven franchise model to support growth and expansion.

• Maximum investment is RM5 million.

MARITIME FUND BY BANK PEMBANGUNAN MALAYSIA

Detailed information in SDRS can be obtained from Bank Negara Malaysia @ www.bnm.gov.my.

• For shipping, shipyard and maritime related activities such as to finance acquisition of new or second hand vessels, lands, construction of shipyards and related maritime infrastructures or working capital. Loan refinancing is not allowed.

• Margin of financing is up to 90% while the tenure of financing is up to 10 years excluding 2 years grace period.

(For secondhand vessel, age of vessel must not exceed 20 years at the end of repayment period).

• Total amount of financing is from a minimum of RM1 million for working capital, RM5 million for acquisition of fixed assets to a maximum of RM500 million.

GRANT SCHEMES BY MSC MALAYSIA The MSC Malaysia Research and Development Grant Scheme is designed to help companies develop their ICT/multimedia products to full commercial potential. For companies that are locally owned and has MSC Malaysia status, MSC will provide a non-repayable grant of up to 50% or up to RM1.2 million of the approved total project cost to develop the R&D programmes.

ICT FINANCING BY MALAYSIA DEBT VENTURES BERHAD

For local companies with MSC Malaysia Status, the MSC Malaysia Intellectual Property Grant Scheme will subsidise up to 70% of the initial costs incurred for filing applications to register trade / service marks, patents (including utility innovations) and industrial designs.

• All financing by Malaysia Debt Ventures Berhad is based on Islamic principles.

• Small Contract Financing caters for companies with secured contract with reputable contract provider or sponsor. Loan amounts are between RM250,000 to RM2 million per group of companies. A maximum of 5 projects may be funded subject to an aggregate limit of RM2 million.

• Small Project Financing caters for companies possessing a commercialisable product or service with an existing demand. Financial quantum is between RM250,000 to RM2 million per group of companies.

MSC Malaysia’s Technopreneur Pre-Seed Fund Programme is set up to catalyze the creation of local technopreneurs and k-SMEs in ICT, in an effort to promote greater growth of the local ICT Industry. This programme addresses 2 issues, namely narrowing the funding gap at pre-seed stage and to boost the development of commercially viable ICT projects and kick off a chain reaction in the creation of new local K-SMEs in ICT. SME

SMALL DEBT RESOULTION SCHEME (SDRS) SDRS is a scheme initiated by Bank Negara Malaysia via:• All commercial banks and Islamic banks • Bank Rakyat • Bank Pembangunan Malaysia • Agro Bank • SME Bank • EXIM Bank

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>>>>>>>>EXPANDING • Human Capital - Powerful Asset for Business Growth >>>>>>>>>>>>>>>>>>>

Human Capital

- Powerful Asset For Business Growth ...a collective value of an organization’s intellectual capital which is a constantly renewable source of creativity and innovativeness...something not reflected in the balance sheets. ...........................................................................................................................................

There have been endless calls for the need for Malaysian SMEs to expand and become knowledge-based in order to continue to stay relevant and competitive globally. One important factor to achieve this is to develop human capital.

Every year the Government has always kept human resource development in its planning and development agenda.

SMEs are also faced with human capital-related issues and challenges like labour shortage, the minimum wage policy and new retirement age for the private sector. Recent regulations and developments in human capital related matters will definitely leave impact on SMEs. In today’s business conditions, although money is still the cause of many successes and downfalls of businesses, it is no longer the only important asset. Human capital is also critical area but unlike money, companies cannot borrow or save employees. Nor can it be bought. As such, companies need to retain what they have and use them to train other new ones.

The following, while not exhaustive, are some of the challenges in developing human capital:• Attract talent and retaining it.

• Improve productivity and effectiveness of workforce.

• Training and development for staff and matching them with industry requirements.

• Enhance competence and innovativeness of staff.

Employees leave their jobs and the companies they work for when they feel there is no room for growth or learning. This is apparent in SMEs where there is a deep-rooted tradition of handling over the business to the next generation which usually comprises of family members. This hinder the ability to source, retain and develop talent. Employees feel there is no opportunity for career advancement no matter how much effort they put into their work as they would not rise above certain ranks. Hence, many try to gather as much experience as they could and set out on their own or jump hop to another firm. This trend is not good for business.

TACKLING HUMAN CAPITAL TACTFULLY Labour costs have been increasing and will continue to be so; as such the cost of manufacturing is also getting higher.

There is a need to be more productive capable and opt for automation. This area of human capital development is important to defray the increasing costs of producing products and services.

On the other hand, if SMEs cannot handle the minimum wage policy well, they can go bust within a short time. This step, termed long overdue, require SMEs to learn to adjust and adapt their operations when the payment of minimum wage to foreign workers comes into effect on 1 January 2014. The Minimum Wages Order 2012 (the Order) requires employers with 6 employees and above to pay minimum wages of RM900 a month in Peninsular Malaysia or RM800 a month in Sabah, Sarawak and Federal Territory of Labuan with effect from 1 January 2013.

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NATIONAL HUMAN RESOURCES CENTRE

The new retirement age for workers in the private sector has been increased from 55 to 60 under the Minimum Retirement Age Act passed in June and gazetted in August last year. The new ruling took effect from July 2013. Whether this will also translate to higher costs albeit lessening the human resource problems of SMEs remain to be analysed.

The National Human Resources Centre (NHRC) was established on 1 August 2011. NHRC is specifically established for Small and Medium Enterprises (SMEs). For Malaysia to achieve a developed nation and high income status, SMEs are expected to be an important driver of growth.

Building human capital capabilities in these SMEs would be one of the key determinant factors. Its function is to be an effective and productive human resource department to SMEs.

All these new developments necessitate action on the part of SMEs to rearrange their human capital needs and requirements to move with changing times.

NHRC will provide strategic and operational human resource support to SMEs. The centre will play the role of effective HR department with a strong focus on strategic and change management processes covering the following areas: • Recruitment and Assimilation • Performance Appraisal and Development • Training and Development • Compensation (including Productivity Linked Wage System) • Skills Structure & Succession Planning • Supporting Policies (including workplace flexibility & work environment)

There is a need for SMEs to change the way they operate.

Talent must work hand in hand with technology to increase productivity. Investing in human capital does not mean one has to rely on cheap labour to increase production. SMEs must make the necessary adjustments by putting real values on labour or else there would be no motivation to automate or train. Minimum wage can be seen as a step to raise productivity.

The Government has also identified SMEs as a key enabler in developing, retaining and attracting employees. To fully capitalise on this role and to achieve the long-term goal of creating globally competitive SMEs, Malaysia’s SMEs must transform their human resources management processes and capabilities. This, in turn, requires the SMEs to institutionalise HRM, scale up their HR personnel capability and adopt HR best practices to create a conducive and productive workplace.

HUMAN CAPITAL DEVELOPMENT (HCD) The Human Capital Development’s Strategic Reform Initiative (SRI) is a critical component of the Economic Transformation Programme (ETP) cutting across all NKEAs. It follows recommendations proposed under the New Economic Model.

The goal of this SRI is to enhance and address human capital capabilities and needs of the 12 NKEAs as well as strengthening the skills of the country labour force in contributing towards Malaysia’s aspiration of achieving high-income nation status by 2020.

However, SMEs face several challenges in maintaining productivity and managing their workforce. These include: • Micro SMEs perceiving HR as a cost rather than as an investment.

• High staff turnover and recruitment issues, such as hiring the right employees.

This SRI takes a two-pronged approach which addresses workplace and workforce transformations.

The Grant Thornton International Business Report reveals that 62% of businesses in Malaysia are finding it hard to source skilled workers, just ahead of Singapore (61%). The figure is however well above the global average of 39%. The survey also revealed that in the ASEAN region, the shortage of specific or technical skills is the most significant factor for businesses in Vietnam (86%), followed by Philippines (76%) and thirdly in Malaysia at 68%. This is closely followed by Singapore (66%) and business owners globally (64%).

Workplace transformation addresses 3 main areas:• Modernising Malaysian labour laws in line with the needs of a high-income economy • Enhancing the labour safety net to ensure workers are protected during times of economic transition • Strengthening the human resource management of Malaysian SMEs Workforce transformation on the other hand focuses on these 3 areas:• Upskilling and reskilling the workforce • Leveraging women talent • Labour market analysis

The survey highlighted other factors that hinder recruitment in Malaysia such as the lack of appropriate work experience (63%) and shortage of general employability skills, particularly teamwork and communication in English (62%).

(Source: Performance Management & Delivery Unit, Prime Minister’s Department)

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MODERNISING LABOUR LEGISLATION This is advocated by the Ministry of Human Resources (MoHR) to transform local existing laws in line with modern economies to create a more globally competitive domestic economy and ensure continued economic growth.

Amendment proposed focus on two objectives: • The reduction of labour management cost to business • Ensuring effective worker protection Examples of the changes undertaken by MoHR are the introduction of two new Acts on minimum wage for all workers and the minimum retirement age.

The existing Acts currently under internal review are:• Industrial Relations Act (IR Act) 1967 • Employment Act (EA) 1955

NATIONAL TALENT ENHANCEMENT PROGRAMME (NTEP) The NETP was launched in June 2011 to accelerate the development of the skilled workforce in Malaysia. It is targeted at boosting the employability of engineering graduates as well as technical and vocational certificate holders. The 12-month attachment programme cuts across the NKEAs and nonNKEAs for the Corridors.

Costs related to this programme can be claimed under the Human Resources Development Fund (HRDF).

The MyProCert Programme provides employees international professional certification at a very affordable rates.

LEVERAGING WOMEN TALENT

The programme places particular emphasis on supporting the skills requirements in each of Malaysia’s Regional Economic Corridors. As such, the programme is implemented via nine different entities:• Iskandar Regional Development Authority • East Coast Economic Region Development Council • Northern Corridor Implementation Authority • Sabah Economic Development and Investment Authority (SEDIA) • Workforce Development Unit (Sarawak Chief Minister’s Department) • Akademi Technology Hijau (a Malacca state agency) • Selangor Human Resource Development Centre • MIGHT-METEOR • Construction Industry Development Board Malaysia (CIDB)

According to Malaysia Higher Education Statistics (2011), 60 percent of students at public universities are women. In public universities, women dominate fields of study such as education, healthcare and welfare, social sciences, and business and law.

The plan is to have over 600,000 women in the workforce by 2015. The increasing number of employed women is expected to reduce the number of poor households in the bottom 40 percent. According to the World Bank Report, as at 2011, the female labour force participation rate in Malaysia was 47.9 percent, which was below average of other East Asia and Pacific countries.

The 10th Malaysian Plan has outlined several targets related to women in the workforce:-

MSC MALAYSIA MyProCert PROGRAMME

• Increase female labour participation rate to 55%.

• Have 30% women on the boards of public-listed companies (PLCs) by 2016.

• Advocate the establishment of a holistic structural social support system to contribute. SME

The goal of this programme is to upskill the Malaysian workforce to international certification standards. It targets 7,500 participants in three years. Initially offering SAP certification, the programme has expanded after partnering with other certification partners to include more skill sets.

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>>>>>>>>EXPANDING • Risk Management >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Risk

- Management Risks appear everywhere. In fact, starting a business is one of the biggest risks of all. ...........................................................................................................................................

Regardless of whether you are a businessman or not, everything we do involves risks. Business owners often rely on his experience or intuition to manage risk. The more complex the business, the more important it is to identify the risks that may prevent the business from achieving its full potential and to manage them to minimize adverse outcomes.

Risk management is one important part of business planning.

Although risky, risks are what make a business grow and thrive. The aim of risk management is to reduce or eliminate where possible the risks of certain event happening to the business.

WHAT IS RISK MANAGEMENT? Risk management is a process for identifying, assessing and prioritizing various types of risks. Once identified, a plan shall be created to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the types of risk and the types of business. A business faces risks from all areas like operational failures, environmental disasters, regulatory violations or financial failures.

Risk is also the chance of something happening which is often negative.

Risk Management helps companies to understand, evaluate and take action on all their risks with a view to reduce the likelihood of failure or losses.

BENEFITS AND NECESSITIES OF RISK MANAGEMENT Risks in business can have minimal or devastating impact. The former can be managed easily with few precautionary steps while others may threaten the very existence of the business.

Risk management is an essential business practice that gives comfort to stakeholders such as shareholders, investors, customers, employees, etc. It indicates that the business is being effectively managed, complied in accordance with corporate governance requirements.

Therefore, a risk management strategy involves minimizing those elements that negatively impact the business. Identifying those elements will help to achieve the goals of the business.

Risk management should not be taken as a tool to eliminate or prevent risks but to help you to identify the risks detrimental to your business growth and minimize the downside.

While it is impossible to remove all risks, it is important that companies understand and manage risks. The risk scenario is changing and no longer confined to the boundaries of traditional or common risks because companies today are operating in an increasingly globalized, complex and demanding business environment that is riskier than ever.

There are now stricter regulatory requirements and demands for business transparency and sustainability as a result of people’s attitude towards ‘zero tolerance for failures’, Besides that, new and sophisticated technologies are emerging from all corners of the world – new technologies, new risks.

An effective risk management system should contain these basic functions:• One that helps you to identify a weakness or failure before it becomes a loss.

• One that can identify the weaknesses before an adverse event happens.

• One that provides a framework to gather data than can be used to improve future outcomes.

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TYPES OF RISKS Each type of risk has its own distinct characteristics which may require special management or analysis. There are risks many can recognize due to the ‘obvious or apparent’ factor like one of the risks of a petrol station is fire or burglary. Others may not be easily recognizable.

The list of risks is non-exhaustive. The common ones faced by SMEs are as follows:-

Opportunity-based Risk Opportunity-based risks may or may not be visible with positive or negative outcomes. They are often financial related with either short-term or longer-term results. For small businesses opportunity-based risks include moving to a new location, acquiring a new property, business expansion, expanding a product line, introduction of new product, etc.

Uncertainty-based Risk Uncertainty-based risks are risks associated with unknown and unexpected events. This type of risk has attracted more recognition as a result of unpredicted events such as natural disasters such as the Asian tsunami. Uncertainty-based risks are unknown or extremely difficult to quantify; catastrophic in nature and are usually associated with negative outcomes which are not possible to control or influence.

Human Capital Risk As the name denotes, human capital risks are risks associated with people. A large number of SMEs are family-run businesses with more or less the same organisational set-up such as the founder, the offspring or sibling as the managing director and other extended family members or children working in various departments in the company. This kind of traditional set-up is exposed to risk in term of succession planning. As most senior positions are occupied by family members, such SMEs find it tough to recruit and retain talent since there is limited or absolutely no possibilities of progression (such as promotion) for non-family members.

For small businesses, uncertainty-based can be damage to buildings by fire or flood, financial loss, loss of market share, loss of vital customers or suppliers, etc.

Hazard-based Risk Hazard-based risks are risks associated with a source of potential harm or a situation with the potential to cause harm.

These risks are the most common associated with business risk management.

Financial Risk Cash is the life line of almost all businesses and without it survival is tough and almost unlikely. Many SMEs run on a tight ship where cash flow is concerned. Many do not do enough or do not do at all cash-flow planning like forecasting, projection or budgeting which can be useful instruments to identify non-essential expenditures. Increasing labour costs, operation costs, intense competition and globalization contribute to thinning margins.

Hazard-based risks for small businesses include: • Physical hazards such as noise, temperature or other environmental factors.

• Chemical hazards such as storage, use of flammable, poisonous, toxic or carcinogenic chemicals.

• Biological hazards such as viruses, bacteria, fungi and other hazardous organisms.

• Ergonomic hazards such as poor workspace design, layout or activity and equipment usage.

• Psychological hazards which may result in physical or psychological harm such as bullying, sexual discrimination, workload or mismatch of job specification to employee capability.

SMEs which trade globally or transact with overseas customers or suppliers are exposed to foreign-exchange fluctuations.

Another familiar financial risks faced by SMEs is obtaining financing from financial institutions. Direct financial risks are often reflective of how businesses handle money, for example, credit given to customers, bad debt load or bad paymasters.

This category of risk also refers to interest rates such as foreign exchange rates.

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Credit Risk

Operational Risk

Many SMEs are dependent on a handful of major customers due to limited resources. A default or delay in payments by one or two such customers could add immense pressure to their already tight cash-flow situation.

Operational risks are internal risks that are related to your employees, systems, properties, or production line. Unlike other risks, there are no returns on operational risks.

They can also come from unforeseen external events such as supplier failing to deliver your goods or the transportation system breaks down.

Hence, small businesses need to be more stringent in managing credit risks. Before credit is given to a potential customer, a company has to be diligent in performing credit assessment on the customer’s ability to make payments. This can be done through references made to credit ratings and business information that is readily available from sources such as Bank Negara Malaysia Credit Bureau or CTOS.

Reputational Risk A good reputation takes ages to build but can be lost in a second, more so in today’s era of social networking where news can spread in a flash. Loss of company’s reputation could result from product failures, product recall, lawsuits or negative publicity.

Strategic Risks Strategic risks come directly from operating within a specific industry at a specific time. An example is when a competitor enters your market, offering more or less the same products or services. This shift or changes in consumer preferences, the emergence of new technologies which make your products obsolete and other drastic market forces can put your company in danger. Business owners need to counteract strategic risks by staying in tune with market changes and make the appropriate adjustments so that the risks are identified earlier and their impact can be reduced or minimized.

External Risk External risks can be a result of non-human source and beyond human control. They are unexpected but happen regularly enough to be broadly predictable such as natural disasters.

External risks can also be risks in the greater business environment which may not be easily predictable but understanding what drives them can help business owners to manage threats and minimize the downsides. These can be the economy, whether the country you sell in or where you obtain your raw materials or stock from. Changes in government or government policies can impact on business too.

Compliance Risks Compliance risks are related to legislative or bureaucratic rules and regulations such as employee protection regulations or environmental concerns.

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Risk management does not make decisions for the business, it only assist a business owner to make decisions.

• Risk management does not guarantee a business free from all risks, it only prepares a business owner for adverse consequences and reduce or minimize their effects.

• Risk management cannot guarantee that accidents or untoward incidents would not happen as when there is human involvement, there will be accidents.

• Risk management is not fail-proof as risk assessments, while attempting to identify all significant risks, are limited by available resources and information, time and budget.

INSURANCE - TAKING RISK THE SAFE WAY Risk transfer is one of risk management and control strategies involving the contractual transfer of a risk from one party to another. Risk transfer is mostly accomplished through insurance. Insurance is an effective and popular tool to safeguard businesses against potential losses in the occurrence of risks.

An insurance policy is a voluntary arrangement between two parties, the insurance company (insurer) and the policyholder (insured). The insurer promises to compensate the insured for specific potential future losses. In return, the insurance company charges a fee, known as an insurance premium for accepting this risk. Additionally, there are deductibles, reserves, reinsurance and other financial agreements that modify the financial risk the insurance company assumes.

IP Risk Intellectual property (IP) rights should be a key consideration for SMEs. In many cases, SMEs do not fully exploit their innovative and creative works simply because they are not aware of the intellectual property rights system or the protection it can provide or a lackadaisical attitude towards proper.

LONPAC INSURANCE Lonpac has been awarded the Chubb Multinational Solutions Outstanding Affiliate World-Class Service Award 2013 in recognition of Lonpac’s commitment towards efficient services and continuous support of Chubb Multinational Solutions. This is the seventh consecutive year that Lonpac won the award since 2007.

SMEs often overlook or are ignorant of the risks that they are facing as making sales and bottom lines are usually their priorities. They should be aware of the risks they are facing and establish an appropriate risk-management framework to address them.

Lonpac’s primary focus is to provide innovative insurance products supported by customer-centric service excellence.

They aim to provide their insured an easy channel for all their insurance needs. SME

LIMITATIONS OF RISK MANAGEMENT There are no perfect or ideal risk management systems, only effective and efficient ones. There are only so much risk planning and managing can do. These limitations are used to dispel some myths as to what a risk management system can do so that business owners do not misinterpret risk control and management as solutions to risks rather than instruments to manage risk.

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>>>>>>>>EXPANDING • Brand Your Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Brand

Your Business SMEs need to strengthen their branding to better position themselves to penetrate new market opportunities and compete globally. ...........................................................................................................................................

What is in a name? A lot, in this time when quality alone is not enough. People buy brands and names, not just merely products and services. Hence, brand plan is one of the top new challenges faced by SMEs. To be eligible to compete with foreign, bigger companies, SMEs must develop a contemporary image that reflects their products and target markets. Embrace this new rule or be left out.

Your brand is what sets you apart from your competition in the minds of customers. Brand recognition is vital in securing business; a buyer can’t purchase your product if he can’t remember who you are or how to find you. The best companies are those whose brands are easy to remember and instantly recognizable.

WHY IS BRANDING IMPORTANT? SMEs can penetrate the market and compete effectively with larger counterparts through effective, positive branding. In the long run, they can even become multinational companies through the adoption of best strategies in branding their products and services.

communicating the same messages using your brand elements like logo, colours, packaging and graphics can help customers to recall, recognize and remember your brand easier and quicker. Your brand is considered successful when customers actively seek out your products and will not accept a substitute albeit the lower price.

Branding gives you preference over your competitors’ products. When consumers are faced with so many choices, they typically will favour a brand that they trust and rely on.

This is a great advantage if you sell products that are purchased frequently such as food or household products. Brand creates loyalty. And loyalty creates sales and income.

When you want to launch new products, enter new markets or launch a complementary product, a strong brand makes your work simpler and more effective. Customers already associate the new products with the existing brand qualities and reliability and will not seek out less.

A good brand allows you to command a price premium over your competitors. Consumers will buy your brand due to their preference and trust in it, in preference to other similar but lower-priced products.

A brand sets you apart from the competition, enabling you a stronger platform for growth through new products or markets and retailer distribution. Your marketing plans are easier to arrange because your customers do the marketing for you through word-of-mouth recommendations, repeat business or through the social media such as online endorsements or media sharing.

A brand can offer some level of protection in the event of production mistakes. Customers are more willing and quicker to forgive strong brands, believing that the error can be rectified immediately and effectively. A strong brand can weather economic uncertainties better than weaker or unknown brands.

Good brands must be honest too. Good brands must be able to stand over the authenticity of the claims made by being consistent in their quality, dependability and value. That is why brand strategy is important.

Brand building can improve your returns on advertising and marketing. Brand reinforcement activities such as

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SMES & BRANDING Get your company ready for branding.

A majority of the respondents in the Survey were able to recall global brand names easily but hesitated when it came to Malaysian brands, more so for SMEs. For example, respondents were able to name an average of 9.3 global brands but only 5.4 Malaysian SME brands.

The Internet has revolutionised the way businesses are performed. Customers today can determine the brands and reputation of businesses. Conventional business practices such as hierarchy and rigid systems have to give way to more direct, open approaches because customers are king and they build brands, not discounts or mass communications or fancy taglines. Huge and eye-catching billboards may still create awareness but are no longer the determinant of branding, possible in the past but not in an era where there are so many avenues consumers can refer to and so many competitors offering more or less the same offerings using more or less the same platforms.

While many Malaysian SMEs acknowledge the values of branding and lament the lack of support for them, many also do not know of any existing Government initiatives or programmes in this area. The National Brand Certification Scheme was launched in 2009 but as shown by the Survey, only 42% of SME owners are aware of its existence. Thus, SMEs should be proactive in researching information on governmental support programmes or advisory assistance which are relevant to them. At the same time, SMEs also need to understand that part of a brand strategy is to deliver what customers want to hear instead of wanting customers to accept what they deliver. Yes, financial support is helpful but it is also about how best to budget existing resources to achieve the desired branding results.

Reaching yes, awareness yes. But brands today are defined by the economic, experiential and emotional values they are able to deliver.

An online survey titled “Malaysian SMEs’ Brand Potential” released by Bizsphere Brand & Marketing Group, an integrated brand and marketing management company which focuses on SME branding, revealed some interesting facts about local SMEs and branding.

An inherent trait is that SME owners still tend concentrate or give priority to sales rather than branding; in fact anything else that requires them to spend money or incur additional costs which do not produce returns in the short term. Therefore, branding is pushed to the back of the queue.

Although it is widely known that most SME brands are not well known or possess low brand awareness even locally, up to 62% of SME owners are confident that their brands will be known regionally or globally in the next five years. This confidence showed that SMEs understand and acknowledge the importance of branding in international market liberalization and intense competition.

RELATED INFORMATION Branding Association Of Malaysia The Branding Association of Malaysia, established in July 2000, caters mainly to the need of brands across Malaysia in achieving success both in the domestic and International arenas. The association reaches out to local SMEs to bring out their potential as a valuable brand through sharing of ideas, strategies and branding tactics.

The Association helps SMEs to introduce, develop and differentiate Malaysian brands into global markets everywhere.

The fee for lifetime membership is RM6,000. Membership to the Branding Association of Malaysia is by invitation or recommendation only.

Branding Association of Malaysia Tel Fax E-mail Website

: 603 – 5611 7266 : 603 – 5636 6009 : secretariat@brandingmalaysia.com : www.brandingmalaysia.com

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For a brand to qualify, the company must be a registered enterprise, holds an ISO or equivalent certification and achieve at least three out of a possible 5 stars under the SCORE assessment tool. On the other hand, to retain the Mark, auditing and monitoring measures will be performed periodically to ensure adherence to the criteria set. Brands which have been awarded the Mark can enjoy various trade promotion activities and the recognition of the National Mark of Malaysian Brand itself.

Initiatives under the Programme are: • The National Mark of Malaysian Brand • Annual Branding Entrepreneurs Conference (BEC) • Workshops on Brand Manual for Malaysian Brand Certification • Branding Innovation Centre at Limkokwing University of Creative Technology (LUCT) • Branding and Packaging Mobile Gallery.

The National Mark Of Malaysia Brand The National Mark of Malaysian Brand is an accolade designed to raise the visibility of quality Malaysian products and services in the local, regional and global markets.

NEW WEBSITE ON NATIONAL MARK OF MALAYSIAN BRAND

The National Mark of Malaysian Brand depicts quality, excellence and distinction of products and services by Malaysian companies

In early 2013, SME Corporation Malaysia launched a new website that is dedicated to providing information and updates on the National Mark of Malaysian Brand certification scheme.

The Mark was launched in March 2009. It is a certification scheme under the SME Brand Development Programme that promotes the entrepreneurial spirit of innovation in Malaysia and encourages companies to strengthen their brands.

www.nationalmark.gov.my.

The new website will publish information on the benefits of certification, participation criteria, evaluation and audit processes and list the successful brands that have been awarded rights to use the National Mark of Malaysian Brand on their product packaging and marketing communications.

Brands earn the coveted seal of approval after going through a rigorous auditing and monitoring process by SIRIM QAS International Sdn Bhd. SIRIM WAS processes the applications and submits its report to a panel consisting of representatives from SME Corp. Malaysia and SIRIOM QAS for the final approval.

SME Brand Manual Workshop This workshop, organised by SME Corporation Sdn Bhd, aims to increase awareness on the importance of branding among SMEs as well as to educate them on guidelines and principles to develop a brand manual. The workshop also prepares companies to be better equipped to participate in the global market and qualify for the National Mark of Malaysian Brand Certification Scheme.

Brands that carry the seal have to prove that their standards are equal top those of international companies in the areas of management commitment and capability, financial acumen, brand management and marketing, operations management, quality and standard of products and services, management best practices and social responsibility.

(Source: SME Corporation Malaysia)

Qualified companies will gain the right to carry the Malaysian Brand for 2 years after which they are reassessed to ensure they are maintaining the same standards of quality, excellence and distinction. For the past 4 years, a total of 59 SMEs have been certified with the National Mark of Malaysian Brand (out of a total of 109 applications). In 2013, 24 more companies are expected to receive the Mark while 50 others are in the process of certification.

SME

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>>>>>>>>EXPANDING • Supply Chain Management >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Supply

Chain Management Amidst the call for SMEs to be proactive and compete globally, SMEs need to determine where and how to compete too as they face unique challenges compared to other business institutions. Supply chain management is a competitive positioning SMEs can undertake to achieve this. ...........................................................................................................................................

What can SMEs benefit from supply chain management?

Plenty. First, it helps SMEs to compete globally. Secondly, cash flow, a critical headache for SMEs, can be improved due to inventory reduction in a supply chain. Then there is also improve responsiveness and reduction in lead time due to improvements in on-time delivery and distribution costs.

SMEs often lack the supply chain management expertise found in larger corporations. This situation is attributed to their lack of resources, insufficient funds and capabilities to design a supply chain system.

A better understanding on the needs of SMEs and their behaviour can help to facilitate these businesses. Some of these supply chains are managed manually and there is a need to train these entrepreneurs to use and apply IT tools to ensure they run their businesses profitably.

the management of materials, and financial information involving all parties.

An increasing numbers of companies are turning to websites and web-based applications for their supply chain solutions.

Some major websites offer e-procurement market places where manufacturers can trade and even make auction bids with suppliers.

WHAT IS SUPPLY CHAIN MANAGEMENT Supply chain management is the streamlining of a business’ supply side activities to maximize customer values. Supply chain management represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed.

BENEFITS OF SUPPLY CHAIN MANAGEMENT

Supply chain management flows can be divided into three main flows: • The product flow includes the movement of goods from suppliers to customers and returns.

• The information flow involves transmitting orders and updating the status of a delivery.

• The financial flow consists of credit terms, payment schedules and other consignment arrangements.

In order to remain competitive, SMEs have to offer quality products and services at the lowest price possible. Minimizing product costs needs effective supply chain management.

Costs must be kept low so the company can pass along these savings to the consumers. Keeping costs at a minimum is one of the most efficient ways to increase profits. The use of supply chain management leads to cost reductions because wasteful processes are got rid of. As they are operating costs such as transportation, warehousing and packaging, these savings reflect increased profits of the company.

There are two main types of SCM software: i) Planning applications use advanced algorithms to determine the best way to fill an order. ii) Execution applications track the physical status of goods,

Supply chain management enables a company to foster better relationships with its suppliers and customers as it can practise timeliness and responsiveness. Operational expenses can be lowered as there is timelier planning for processes

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RELATED INFORMATION Malaysian Institute Of Supply Chain

such as procurement and transportation. Margins can also be improved through better communication and coordination with business partners.

The Malaysian Institute of Supply Chain is the only institute in Malaysia that actively fosters and promotes professional development of purchasing, materials and logistics management. One of the Institute’s objectives is to secure a wider recognition and promote the importance of efficient materials management in commercial and industrial undertakings.

Other benefits include:• Reduces the use of fixed assets in the supply chain.

• Improves customer satisfaction and service.

• Improves process integration.

• Improves manufacturing strategies.

• Reduces inventory costs, increases performance and profitability.

MISCM also defines the code of conduct and purchasing ethics to ensure high standards of business ethics and guide practitioners in performing their daily duties. One is required to consider first the total interest of one’s organization in all transactions without impairing the dignity and responsibility of one’s office. Furthermore, one is required to buy without prejudice, seeking to obtain the maximum ultimate value for each dollar of expenditure.

INSIDE A SUPPLY CHAIN Supply Chain Management is a branch of management that involves suppliers, manufacturers, logistic providers, and most importantly, the customers.

The Institute is committed to educate, train and develop personnel engaged in the field of purchasing and materials management by providing a wide range of structured professional development programmers in this field; in line with its objectives to increase professional knowledge of purchasing and materials management.

The supply chain management process works through the implication of a strategic plan that ensures the desired end product leaving a customer with maximum satisfaction levels at the lowest possible cost.

The activities or the functions involved in this type of management process are divided into three levels: the strategic level, the tactical level and the operational level. A conventional supply may contain the following phases or more depending on their business operations and requirements.

(Source: Malaysia Institute of Supply Chain)

Contact Details: Malaysian Institute Of Supply Chain Tel Fax E-mail

: 604 – 6593793 / 6594793 : 604 - 6563775 : ck@mipmm.org.my francisseow@mipmm.org.my albertcheah@mipmm.org.my Website : www.mipmm.org.my

SMEs IN SUPPLY CHAIN MANAGEMENT It is frequent that most SMEs lack skilled personnel who have knowledge of sophisticated supply chains. SMEs’ tendencies to focus on local efficiencies rather than on cross-enterprise opportunities leads them to higher total corporate costs - lower overall efficiencies resulting in higher costs per unit because of low volumes.

Malaysia Institute For Supply Chain Innovation (MISI) MISI is the fourth centre in the MIT Global SCALE (Supply Chain and Logistics Excellence) Network. MIT Global SCALE is an international alliance of leading edge research and educational organisations dedicated to the development and dissemination of global innovation in supply chain and logistics.

The problem becomes more acute when SMEs decide to work with outsourced supply partners. Inconsistent product data and IT & communications systems make it difficult to match all the manufacturing and distribution activities. Another area of concern is the lack of detailed process documentation.

SMEs are also stay in the shadows of large public companies in terms of finance options and this limits their ability to fund large investments.

MISI, launched in 2011, is a joint initiative between the Government of Malaysia and the Massachusetts Institute of Technology (MIT).

(Source: Malaysian Institute for Supply Chain Innovation) SME

However, SMEs are also fast in adopting strategic changes in comparison to large organizations and this gives them advantage. SMEs can reduce cost and increase operating efficiency by fully leveraging supply chain concepts.

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>>>>>>>>EXPANDING • Cloud Computing - Cost Saving & Effective Productivity >>>>>>>>>>>>>>>>

Cloud Computing

- Cost Saving & Effective Productivity Living ‘in the cloud’ is becoming increasingly essential for most of us. Many services we use in our daily lives are actually residing somewhere in ‘the cloud’. ...........................................................................................................................................

WHAT IS CLOUD COMPUTING?

Many businesses are actually starting in the cloud; either they are beginning to realise the power of cloud computing, whether to take advantage of its ability to spread IT capabilities effectively, whether to create new ways in serving customers or whether to operate beyond traditional IT.

Cloud computing is a type of computing that relies on sharing computing resources to handle applications rather than having local servers or personal devices. The word ‘cloud’ is used as a metaphor for ‘the internet’ to mean a type of internet-based computer, where different services like servers, storage and applications are delivered to a computer and device via the internet. The word cloud is inspired by the cloud symbol that is often used to represent the Internet in diagrams or graphics.

Cloud computing is one of the focus areas in Malaysia’s ICT Roadmap. At present, Malaysia has only RM140 million in cloud. Malaysian share in cloud income is expected to increase to RM2.8 billion in 2020, generating more than 11,000 jobs compared to only 3,000 now. According to a Frost & Sullivan report on the State of Cloud Computing in Malaysia 2011, a total of 34% organisations in Malaysia said that cloud computing would be their current number one priority.

Cloud computing can be categorized into Software As A Service (SaaS), Platform As A Service (PaaS) and Infrastructure As A Service (IaaS).

Cloud computing can also be divided into two parts; the front end and the back end. Both are connected to each other through a network, usually the internet.

According to the Ministry of Science, Technology and Innovation, the market size for cloud is expected to increase to RM723 billion in 2020. SMEs should be more proactive in order to benefit from fantastic solutions on par with larger companies but with affordable costs.

• The front end is what the computer users or clients see.

It includes the clients’ computers and the application required to access the cloud computing system.

A survey conducted by Microsoft Trustworthy Computing Group and conducted by research company, comScore between March – April 2012 polled companies in the US, Singapore, India, Hong Kong and Malaysia on the usage of cloud computing among Malaysian SMEs revealed that;-

• The back end refers to the ‘cloud’ section of the system.

It consists of various computers, servers and data storage systems that create the ‘cloud’.

• 38% of SMEs reported that they were able to employ more staff because of savings from the adoption of cloud computing while 70% of the respondents said that they increased their investments in product development and innovation.

• 70% of those surveyed said that cloud has enabled them to add new products and services to their business, quicker and more secure while 44% have experienced improved agility and competitiveness.

• Malaysian SMEs which use cloud also spend 56% less time each week managing security than those not using cloud.

They are also two times more likely to reduce what they spend on managing security as a percentage of overall IT budget.

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WHAT MAKES CLOUD COMPUTING DIFFERENT?

PRIVATE CLOUD

Cloud computing has a few characteristics that differentiate it from traditional hosting and attract individuals and businesses to the cloud.

• It is available on demand, by the minute or the hour (a ‘pay-as-you’ or subscription basis). Sometimes cloud computing is free or paid for in other ways i.e. subsidised by advertising. It is great as you do not have to purchase a complex computer system that you do not even need or use infrequently.

• It is elastic, service is given as and when required at any given time.

• It is fully managed by the provider, all you need are a personal computer and internet access. You do not have to worry about paying any licensing fees for word-processing or anti-virus software. Cloud computing enables you to do your own job and leave the problem of providing trusted computing to someone else.

Private cloud is dedicated to a particular company or organization. It allows businesses to host applications in the cloud with covered security and control. It is not shared with others and can be hosted internally or externally.

There are two variations of private clouds: i. On-Premise Private Cloud is hosted within an organization premise, usually under the IT department.

It is best suited for applications that require complete control and configuration of infrastructure and security. ii. Externally Hosted Private Cloud is also used by one organization but is hosted by a third party specializing in cloud infrastructure with guaranteed privacy. It is a choice for organisations that prefer not to use public clouds due to the risks of sharing resources.

Private cloud is the choice if you want consistency across services or you want to provide private cloud services.

PUBLIC CLOUD A public cloud network enables users to distribute and access data from anywhere at any time and can be shared with third parties. The service providers own and operate its applications, storage and other resources available to the public over the internet. Examples of public cloud are Amazon’s EC2 and Google AppEngine. Public cloud is easy and inexpensive to set up as it is operated on a “pay-as-you-go” model. On the other hand it has limited security protection, configuration and availability variances.

COMMUNITY CLOUD Community clouds are a hybrid form of private clouds built and operated specifically for a targeted group which have similar cloud requirements and business objectives.

The goal of community clouds is to have participating organizations realize the benefits of a public cloud with the added level of privacy, security, and policy compliance usually associated with a private cloud. Community clouds can be either on-premise or off-premise.

People normally choose public cloud when their workload for applications is used by a lot of people such as e-mails or when they are doing collaboration projects.

Situations where a community cloud is chosen are government organizations within a state that need to share resources or a private cloud for a group of hospitals or schools.

HYBRID CLOUD Hybrid cloud is a combination of two or more clouds, either public, private, or community. It occurs when an organization provides some in-house cloud services and has others provided externally. The set-up requires on-premise resources and off-site serves based cloud infrastructure.

The advantage to this approach is that you can keep each aspect of your business in the most efficient environment possible. But at the same time you also have to keep track of multiple cloud security platforms and make sure that all sections of your business can communicate with one another.

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>>>>>>>>EXPANDING • Labour >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Labour Employees are crucial to a business especially many small businesses like the SMEs, which could even be their only investment. Recruiting the correct people for the correct jobs is almost as imperative as investing in the correct business ventures or strategies. ...........................................................................................................................................

LABOUR LAWS

TRADE & INDUSTRIAL DISPUTES

In Malaysia, the employer-employee relationships are regulated by a number of labour laws, the most prominent are the Employment Act 1955, Industrial Relations Act 1967 and Trade Unions Act 1959. The Employment Act 1955 provides minimum terms and conditions of services to certain category of workers stated in the First Schedule while the Industrial Relations Act 1967 provides for ways for settlement of trade disputes. The Trade Unions Act 1959 on the other hand regulates trade union registration, memberships and usage of union funds.

The Industrial Relations Act 1967 governs the relationship between employers and employees and their trade unions. It generally deals with trade disputes.

What are the cases that can be referred to industrial relations?

• Any trade disputes, unfair labour practices or trade union activities that are unlawful and constructive dismissal, retrenchment, transfer, promotion, unilateral change in terms and conditions of service and victimisation in connection with trade union activities.

• Part X, Section 59 of the Industrial Relations Act 1967 makes it an offence to dismiss an employee or injure or threaten to injure an employee during employment or alter or threaten to alter the position of the employee to prejudice under certain circumstance. Employers contravening is liable on conviction to imprisonment for a term not exceeding one year or a fine not exceeding RM2,000 or both.

These Acts were enacted to protect the rights and interests of employees. They also provide avenues for dispute resolution in the event of breach of employment contract or service between employers and employees. Regardless of employers or employees, these Acts are important Acts related to employment and recruitment.

Pursuant to these Acts are two courts which are established to deal with employment disputes. They are the Labour Court and Industrial Court.

Labour Court The Labour Court is established to resolve disputes between employers and employees. Jurisdiction is limited to disputes relating to payment of wages, benefits entitled to the employee under the employment contract, under the Employment Act or under any regulations made under the Act, such as overtime pay, maternity allowance, salary in lieu of notice of termination and termination benefits. The Labour Court also hears any disputes relating to any disciplinary sanctions imposed by employers for alleged misconduct. Employers have the right to appeal to the High Court.

The Labour Court is termed a quasi-judicial system which is an alternative to civil claims. Its objective is to provide a just and fair labour system that is also inexpensive for workers to lodge claims on wages or other financial benefits owed to them.

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Direct applications to the Industrial Court • Section 56(1) Industrial Relations Act 1967 (noncompliance of Award/Collective Agreement • Section 33(1) Industrial Relations Act 1967 (interpretation of Award / Collective Agreement) • Section 33(A) Industrial Relations Act 1967 (points of law) • Section 33(2) Industrial Relations Act 1967 (variation of Award / Collective Agreement) The Industrial Court hears disputes arising from employeremployee relationship (dismissal, etc.) and trade disputes between trade unions and employers (transfers, collective agreements, etc.), and breaches of rights and obligations imposed under the Industrial Relations Act 1967. It also hears cases where the grievance of the individual employee is taken up by the trade union against the employer and disputes over collective agreements.

The Industrial Court has the power to reinstate the employees.

Its awards are final and will be enforceable in the same manner as a Court order and there are no appeals. However, on points of law, the industrial court may refer the case to the High Court (for instance, an error of law or lack or excess of jurisdiction by way of certiorari).

For dismissal cases, they are heard by the President or Chairman of the Industrial Court sitting alone. For trade disputes, cases are heard by a panel comprising of the President or Chairman, an employer’s representative and an employee’s representative.

(Source: Ministry of Human Resources, Malaysian Bar Council & Industrial Court of Malaysia)

Industrial Court The Industrial Court, a statutory tribunal established under Section 21 of the Industrial Relations Act 1967, is established to create a harmonious industrial environment through the process of arbitration. The decisions of the Court (award) is consistent within the Industrial Relations Act 1967. Its functions are to hear and hand down decisions or awards in industrial disputes referred to it by the Minister or directly by the parties concerned. It also grants cognisance to the collective agreements which have been jointly deposited by the employers / trade union of employers and the trade union of employees.

SOCIAL PROTECTION FOR EMPLOYEE Social Security Organisation (SOCSO) was established in 1971 under the Ministry of Human Resources to implement and administer the social security schemes under the Employees’ Social Security Act 1969, namely Employment Injury Scheme and Invalidity Scheme.

Health quality of employees is the main key to improve a company’s business productivity. In January 2013, the Social Security Organisation (SOCSO) launched its Health Screening Programme (HSP) with a RM200 million budget allocated by the government, which essentially provides free health screening to all employees aged 40 and above who are registered with SOCSO. The HSP is an early intervention programme designed to curb the alarming rise of noncommunicable diseases (NCD) among Malaysians. SME

The types of cases which are referred to the Industrial Court are:Cases referred to by the Minister of Human Resources • Section 20(3) Industrial Relations Act 1967 (dismissal) • Section 26(1) Industrial Relations Act 1967 (trade dispute) • Section 26(2) Industrial Relations Act 1967 (trade dispute) • Section 8(2A) Industrial Relations Act 1967 (victimisation)

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BP Healthcare Group BP Healthcare, established in 1982, is Malaysia’s largest private healthcare provider committed to academic healthcare in research, education and clinical care. We provide a onestop integrated healthcare solution through interlinked support from the companies within the Group.

BP Healthcare Group comprises of more than 20 companies serving various medical needs of the people with capabilities covering the entire spectrum of healthcare services. The Group employs over 1000 employees with over 70% comprising of professionals while active recruitment is still ongoing as part of our efforts to serve the people effectively by improving patient outcomes and lower overall health costs.

Working on the believe that everyone deserves quality healthcare, BP Healthcare has undertaken innovative and creative solutions for the convenience of the people such as online ordering service and drive-through pharmacy facilities, mobile applications, mobile diagnostic units, kiosks for hearing test, dental services as well as new medical services covering dental, ENT, CT Scan, mammogram, Healthy Inside, Beauty Outside Wellness Programme, DEXA, Gastroscopy, hearing, eye screening and Quit Smoking Programme.

towards education through training and sharing of experience.

This enables undergraduates from respective medical streams to obtain invaluable practical experience during their internship with us.

BP Healthcare connects people to make life better. We have a range of medical services and centres to cater to the medical needs of the people, by bringing quality healthcare to the people through our expansive network of:-

• • • • • • • • •

The companies under the BP Healthcare Group are:-

• • • • • • • • • • • • • • • • •

70 laboratories 50 diagnostic centres 50 hearing aid centres 50 dispensaries and pharmacies 50 food and industrial testing centres 5 specialist centres 3 dental specialist clinics 1 BP eye clinic 1 Garvy Restaurant, the first outlet was set up in BP Specialist Centre, Ipoh

BP Healthcare Group actively seeks out corporate responsibility as part of our business responsibilities to contribute to the community. We provide medical support through our various roadshows, health talks and campaigns, and free health screening services throughout the country. As part of our corporate social responsibility, we donated RM1 million to the Penang Adventist Hospital in 2012 to build a fund for their hospital facility.

BP Diagnostic Centre BP Specialist Centre BP Clinical Lab BP Business Solutions BP Food & Environmental Testing BP Ambulatory BP Hearing Solutions LABPRO BE-P Pharmacy Lovy Pharmacy BP Dental BP Wellness Centre BP Eye BP Aesthetics Mobile DC BP Polo Club Garvy’s Restaurant

The Group was awarded winner of the 2013 Excellent Eagle Award for Golden Eagle Award. The Frost & Sullivan Award 2013 also named BP Healthcare Group as Malaysia Health Screening Company Of The Year.

We have also signed a few Memorandums of Understanding with local universities as part of our continuous support

For a full list of the services offered by BP Healthcare Group, please visit our website at www.bphealthcare.com. SME

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KKLIU 1978/2013

SME MALAYSIA 2014

>>>>>>>>EXPANDING • Customer Relationship Management (CRM) for SMEs >>>>>>>>>>>>>>>>>>>>

Customer Relationship Management (CRM)

for SMEs Customer Relationship Management (CRM) has acquired quite a reputation for being overly technical, theoretical, arduous and difficult to implement. This in a way is true for some services, in particular for owners of SMEs who lack funds or resources to customize CRM. ...........................................................................................................................................

Customer relationship management (CRM) refers to a strategy used to learn more about customers’ behaviour and their needs. It is done to develop a stronger, more effective and most of all a more profitable relationship with them.

• Improves sales and marketing operations.

• Promote loyalty among customer through closely monitoring of enquiries and purchasing records as offers can be made more appropriately.

• CRM helps the sales personnel to manage priorities, follow up on sales enquiries or identify new selling opportunities.

CRM is managed through a software in which companies input the information of their customers such as name, contact details, address, purchasing preferences, modes of payment, average spending, etc. Companies use the information gathered to better focus on their customers i.e. by sending brochures, discount coupons and services that meet their needs.

In an age of social networking, it is important to stay connected with customers via social platforms such as Facebook, Twitter, Weibo, etc. A lot of CRM software already have this functionality integrated.

CRM allows business owners to:• Make quicker decisions through information on customers at your fingertips.

• Identify valuable or profitable customers through their spending patterns.

• Create a database of customer profiles to increase the lifetime value of customers.

• Forecast and predict customers’ demand to be able to meet demands more closely.

• The integration of finance and CRM systems enables automated billing.

In the early days, CRM was the domain of multinationals and large corporations as they were the ones who could afford it then. That changed with the emergence of CRM as an ondemand or Software as a Service (SaaS) product without the previous infrastructure overheads.

CRM is beyond software and systems. It is about helping a customer-centric practice to be absorbed into your business so that you can understand your customers better and increase sales. Retain more customers, make more sales. SME

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>>>>>>>>GLOBALIZATION • Going Global >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Globalization

 Going Global  SME Loans & Grants for Export Market  The World Is Your Market: - Embracing Business Tourism - Franchise Your Business - E-Commerce Is Emerging Business - Innovative in Business For Competitive Edge  What is ISO?

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>>>>>>>>GLOBALIZATION • Going Global >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Going

Global Globalization is a popular catch phrase in recent times – from going global to being globally competitive and to survive globalization. SMEs too have not been left by this tide although many are of the opinion that Malaysian SMEs lack the resources, courage or guidance to succeed globally. ...........................................................................................................................................

For the regular SMEs that are just trying to stay above the water, international expansion is unlikely to be a priority, let alone up for consideration at all. More so during challenging economic times where cutting costs and increasing productivity are dayto-day survival headaches.

• Adequate resources and capabilities. Moving into new markets, particularly in a foreign country should not be at the expense of one’s local market. Core market is very important to support overseas expansion. Most of the time, if it is not working locally, chances are they may not do as well in foreign soil. In another way, it is also like buying insurance; protecting the local business from possible failures overseas.

However, resilient businesses will realise the importance of striking a balance between navigating current waves and developing strategic plans for future growth. Newer geographic businesses can offer SMEs business opportunities to create new revenues as businesses that export are more productive and employ more people.

• It takes both time and timeliness, patience, aptitude and loads of business acumen to build a global enterprise.

Invest in time and don’t expect immediate success from the word `go’.

But where and how to start? For companies that have not an inkling on how to spread their wings beyond local shores, it can be daunting. There are some questions a business can ask itself before taking the leap.

• A market survey can point to where in the world your products are in highest possible demand. Market research can help entrepreneurs to identify the most penetrable markets so that you do not need to spend huge amount of funds to start from the scratch such as advertisements.

Once the target market is identified, it pays too to identify your potential customers. No customers, no international market.

• To go global, the company needs to look like one too.

Companies should expect to adopt and adapt certain degrees of modification and change in producing for foreign markets. One of the crucial ones is packaging and branding. The country you are exporting to may have special requests for content packaging that you need to adhere to. Imported products tend look better on the shelves.

• Rope in the professionals to join you on board. A banker, a good lawyer or an effective logistic provider are all specialists who can lessen your burden in going international.

The internet is an effective channel for Malaysian small and medium enterprises (SMEs) to go global and reach millions of consumers overseas. Malaysian SMEs have a fantastic opportunity to reach out to millions of consumers globally and aggressively expand into overseas markets through crossborder e-commerce.

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SMEs & GLOBALIZATION The Government too has always encourage Malaysian SMEs to spread their wings. SME Corporation Malaysia (SME Corp.

Malaysia) has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored

by SIRIM, as part of its efforts to encourage SMEs to go global. The National Mark is extensively promoted by SME Corp. Malaysia’s sister agency, the Malaysia External Trade Development Corporation (MATRADE). Malaysian brands are developed not just for the local market but with the intention that they would be good enough too to penetrate international markets.

Traditionally, SMEs lack sufficient strategic management expertise resulting in them missing out on globalization.

A basic tool used extensively by larger corporations like a SWOT 3 analysis may hinder their taking maximum use of the opportunities that are rising with globalization, simply they do not have easy access to such expertise know-how.

Language barrier is also another major setback for SMEs. Many SMEs owners started their business straight from school or college. A majority inherit the business from their parents or family members. As such, many do not have the exposure working for other companies to brush up their knowledge.

Many also find it difficult to use beyond rudimentary English.

Additionally, the SME Masterplan (2012-2020) has also outlined a High Impact Programme – Going Export Programme to focus on addressing challenges faced by local SMEs on entering overseas markets such as high upfront costs and lack of knowledge about target markets and the local competitors.

The initiative is targeted at first time exporters or existing ones who wish to venture into new markets or introducing new products.

A lot of SMEs are also in existence for more than one or two generations. This situation gives the false sense of security that the business is stable and growing as long as they continue to do what their predecessors have done. They are ill-prepared for any changes, globalization being one of them. When the waves come crushing down, they find themselves searching for a float which may not have been prepared or there at all.

Moreover, the concept of globalization was quite alien and irrelevant to many SMEs when the trend has been `buzzing’ so much earlier. The rise in interest and action have been passive and slower. As such, many may find that their forestalled entry into lucrative markets may be complicated due to the intensity of competition.

SME Corp’s other strategic approaches include the signing of agreements with international counterparts agencies from Iran, Thailand, Japan, Syria, Korea, Bangladesh, Pakistan, Turkey, Brunei and Egypt. These agreements cover areas of cooperation including exchange of information on policy measures adopted for the promotion of SMEs, establishment of business contacts, linkages and networking, and co-organising trade promotion activities in the respective countries.

Nonetheless, as the saying goes, better late than never.

Companies with products that are promising and with good potential can step on board much quicker and easier.

(Source: SME Corporation Malaysia)

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>>>>>>>>GLOBALIZATION • SME Loans / Grants for Export Market >>>>>>>>>>>>>>>>>>>>>>>>>>>

SME Loans / Grants

For Export Market SMEs in the country enjoy many levels of training, learning or upskilling either internally or from external sources, both consisting combinations of formal and informal learning activities. ...........................................................................................................................................

MATRADE is the one-stop centre for export information and assistance in the country.

Even successful exporters need all the support they can get at any level of their business operations.

According to the Department of Statistics, Malaysia’s total exports for 2013 is RM398.51 billion. The exports components for 2013 are as follows:• Agricultural Goods - RM38.58 billion (9.7%) • Mining Goods - RM87.02% (21.8%) • Manufactured Goods - RM269.83 billion (67.7%) • Others - RM3.11 billion (0.8%)

MATRADE also confers awards to Malaysian companies which have performed exceptionally well in exports and branding.

The Export Excellence Award honours local exporters who have performed well globally. The Brand Excellence Award is to recognize companies that have invested in developing Malaysian brands and their commitment in promoting their brands in the international level.

Malaysia’s total trade was valued at RM651.05 billion for the first half of 2013, sustained at the same level compared with the same period in 2012. Exports declined by 3.8% to RM337.82 billion while imports expanded by 4.4% to RM313.23 billion.

Trade surplus of RM24.58 billion was recorded for the period.

GROOMBIG PROGRAMME Groombig is an initiative by the Ministry of International Trade (MITI) since 2006 to encourage, nurture and develop SMEs. It is aimed at making SMEs think BIG so that they can be groomed into big entities with the ability to compete and progress in open and export markets.

There are many reasons why companies export their products and services. Revenue expansion is one major attraction as well as to diversify markets and enhance competitiveness through economies of scale and product improvement.

In implementing the Groombig Programme, MITI collaborates with various government agencies, government-linked companies, chambers of commerce and industry, research and development institutes, universities and business experts in order to assist entrepreneurs increase their competitiveness so that their products can penetrate international markets.

BANK NEGARA MALAYSIA SME SPECIAL FUNDS Bank Negara Malaysia’s special funds for SMEs are aimed at enhancing access to financing at reasonable costs with lending rates ranging from 3.75% to 6%. The funds are channelled through participating financial institutions comprising banking institutions and development financial institutions.

Rehabilitation Fund For Small Businesses The Fund is to assist viable SMEs that are constrained by non-performing loans through the Small Debt Restructuring Scheme by facilitating their request for loan restructuring and arranging for new financing where necessary. It is available to all sectors for the purposes of business expansion and working capital. It is however not meant to be used to refinance existing credit facilities.

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a permanent establishment situated in the other contracting country, tax is levied in the other country on the profits as is attributable to or derived by the permanent establishment in the country where the permanent establishment is situated.

BILATERAL PAYMENTS ARRANGEMENTS (BPA) BPA main objectives are to promote trade to diversify Malaysia’s trade to include non-traditional markets as well as to foster closer economic and banking relationships between Malaysia and participating countries. There are two types of BPA signed by Bank Negara Malaysia:• The Iranian Model where central banks are not involved in the settlement of financial claims arising from trade.

The central banks guarantee to pay the respective foreign exporter for the export value in the event of default by the importer in their country. The five participating countries are Bosnia Herzegovina, Botswana, Iran, Fiji and Mozambique.

• The Aladi Model where central banks pay their exporters for the export value in domestic currency through designated banks (for exports). For imports, the central banks will settle the net amount due in an agreed currency on a periodic basis. There are 18 participating countries – Albania, Algeria, Argentina, Chile, Indonesia, Kyrgyz Republic, Laos, Mexico, Peru, Philippines, Romania, Seychelles, Thailand, Tunisia, Turkmenistan, Venezuela, Vietnam and Zimbabwe.

Fund For Small & Medium Industries 2 The Fund is to ensure eligible SMEs in both the export and domestic-oriented sectors have access to financing at reasonable costs. The Fund is open to all economic sectors for the purposes of expanding production capacity, working capital or a combination of both.

TAX INCENTIVES Tax incentives granted under the Promotion of Investment Act 1986 (PIA) such as the Double Deduction for Promotion of Exports, Tax Exemption, Investment Tax Allowance, Capital Allowance and Special Incentives are aimed at encouraging greater export promotion activities overseas.

Exporters can apply for this facility from all Malaysian domestic banks. Further details on BPA can be obtained from the International Department at Bank Negara Malaysia or through e-mail bpa@bnm.gov.my.

TAX RELIEF Organisers of international trade exhibitions in Malaysia are eligible for tax exemption on income earned from organising such events. Respective organisers have to apply for a letter from MATARDE to certify that the fair(s) is approved by MATRADE. In addition, the organisers will also need to bring in at least 500 foreign trade visitors event.

CERTIFICATE OF FREE SALE (CFS) MATRADE issues CFS to facilitate Malaysian exporters in exporting local household products to countries which require such certificate. It assures the importing countries that the products exported there have been sold freely in this country. The CFS is only meant for finished household products manufactured locally and those not covered under or by the Ministry of Health (MOH) or any other government agencies in Malaysia. Information of CFSs issued by MOH or other respective agencies can be obtained directly from the agencies under the Ministries.

DOUBLE TAXATION AGREEMENTS Double taxation agreements are signed to avoid double taxation on international incomes i.e. business profits, dividends, interests and royalties derived in one country and remitted to another country. The initiative gets rid of the ‘tax barriers’ apparent and common in international trade and investment.

(Source: Bank Negara Malaysia & Malaysian External Trade Development Corporation) SME

Under the double taxation agreements, business profits are taxed only in the country in which the business or company is situated. Where the enterprise carries on business through

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>>>>>>>>GLOBALIZATION • Embracing Business Tourism >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Embracing

Business Tourism International business tourism visitors’ arrival to Malaysia have increased by an estimated 133% since 2003. The latest figures provided by Tourism Malaysia shows that tourist arrival in Malaysia for the period January to June 2013 was 12,552,731 compared to 11,632,478 visitors the corresponding period in 2012, recording a growth rate of 7.9%. ...........................................................................................................................................

Malaysia has been named the World’s Friendliest Country in 2012 by Forbes Online and the 12th Most Competitive Economy in the World for Doing Business by the World Bank’s Doing Business Report 2013 edition.

Business tourism is a lucrative revenue generator for the country’s economy. The average spending per trip for international business visitors is estimated to be around RM7,418. The average spend per trip for international business visitors is estimated to be at least three times more than the average leisure visitors (RM2,257).

Business tourism is part of the wider tourism industry. It is the provision of facilities and services to delegates or individuals who annually attend meetings, conventions, exhibitions, business events, incentive travels, corporate hospitality and congresses. It also refers to people travelling for purposes related to their work.

MALAYSIAN CONVENTION & EXHIBITION BUREAU (MyCEB) MyCEB was established by the Ministry of Tourism in 2009 to further promote Malaysia internationally as a preferred destination for meetings, incentives, conventions and exhibitions (MCICE). Its role is to assist local and international meeting and event planners to bid for, secure and hold their international events in Malaysia.

Malaysia hopes to increase its focus on high-yield travellers particularly in the business tourism sector. The Malaysian Convention and Exhibition Bureau (MyCEB)’s target is to increase international business tourism visitors from 1.2 million or 5% to 2.9 million or 8% by 2020. With the burgeoning Malaysian enterprises, local businesses are becoming more globally aware and are increasingly seeking and making their presence at trade fairs and conventions across the world.

MICE IN MALAYSIA MICE is one of the fastest growing segment in the tourism industry. MICE is the abbreviation for meetings, incentives, conferences/conventions and exhibitions and refers to a specific form of business tourism that is associated with the activities of groups of business persons travelling for business purposes as opposed to individual business travellers.

According to the International Congress and Convention Association (ICCA)’s Country and City rankings Report 2012, Malaysia was ranked 35th in the world for association meetings and 9th in the Asia Pacific and Middle East regions while Kuala Lumpur is ranked 8th.

Malaysia is working to become the choice and preferred MICE destination, paying attention to our offerings of unique geographical location, affordable world class accommodations, local attractions and diverse cultures, and modern amenities and infrastructure, etc. The 10th Malaysia Plan (2011-2015) recognises business tourism as a catalyst for economic growth. Beside the main MICE events, it is also a service industry that also incorporates trade, finance, transportation, food and beverage, travel and a host of related business activities. The MICE industry is extremely attractive as it offers large revenues, huge opportunities for employment and large industry associations. SME

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SME MALAYSIA 2014

>>>>>>>>GLOBALIZATION • Franchise Your Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Franchise

Your Business It is only natural that businesses want to expand and grow. Franchising is one good way your business can grow fast. ...........................................................................................................................................

Franchising is a way of doing business. It is a business system that consists of a brand name, a format on the distribution of product or service through a network and the replication every time a new business partner invests and becomes another member of the network. A franchise is a licence or right granted by one business to another business to make or sell products or services. A franchisor is the owner or grantor of the licence who gives the rights of the brand to another party for a certain amount of money while the franchisee is the person who purchases the business name.

The licensing of intellectual property is an important element of any franchise agreements which covers trademarks, copyrights and know-hows.

TO FRANCHISE OR TO TAKE UP A FRANCHISE Business owners wanting to turn their businesses into franchise systems must understand their own business well, inside out.

Business owners, in particular SMEs are mostly used to running their businesses on intuition and informal methods. As such, many do not have the detailed list of procedures and processes outlines. This may pose difficulties for franchisees who do not have the freedom to improvise as they follow everything from the ‘business model’ supplied by the franchisor.

Franchising was first applied in the United States. The franchise word originated from the French word “affanchir” meaning freedom or liberty.

The International Franchise Association (IFE) defines franchise as “A franchise operation is a contractual relationship between the franchisor and the franchisee in which the franchisor offers or is obliged to maintain continuing interest in the business of the franchisee in such areas as know-how and training, wherein the franchisee operates under a common trademark, format or procedure owned or controlled by the franchisor, under which the franchisee has or will make a substantial capital investment in his business from his own resources.”

Franchising offers an excellent opportunity to expand rapidly without the need to source for enormous capital. One of the greatest advantages is the full commitment from the franchisees, who because of their stake in the business, will work for the success of the business rather than employees who simply work for a salary.

A franchisor needs to ensure that the proposed business model is aptly researched and refined, covers everything but also simple enough to be able of being replicated and followed.

Franchising in Malaysia is regulated by the Franchise Act 1998 which came into effect on 8 October 1999, setting out a legal definition of franchises and regulate those business models that fall within the legal definition of franchise. It is compulsory for all franchise businesses in Malaysia to register with the Registrar of Franchise as authorised by the Franchise Act 1998.

Incompliance is an offence. Besides regulating the franchising industry, the Act also controls the terms of any franchise agreement and implements a systematic registration for all parties to a franchise; although may be interpreted as keeping a tight rein on the franchising industry, it offers significant protection and security for businesses, especially SMEs. Registration of franchises are also spelt out in the Franchise Act. There is a distinctive differences on the requirements and conditions between Malaysian and foreign franchisors. The complete contents of the Franchise Act 1998 can be viewed from the portal of the Attorney General’s Chambers @ http:// www.agc.gov.my

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The business system must be able to cater to every aspect of the business. It is also important to note that while franchising is a good option for business expansion, it is not a shortcut to make money quickly but rather a sensible way to expand with equally same-minded and committed people.

To a franchisee, franchising offers an opportunity to own a business without having to start from scratch or going through the riskier parts of starting a totally new business off the ground.

This is because franchising allows you to follow a tried and tested business system, where all the teething problems have already been ironed out by the ‘founder’. Buying a franchise also comes with a business manual on how to operate the business such as ordering of stock, customer service, operations and marketing so that sales and profitability can be maximised. A franchisee is more or less paying for the name and business system that have been tested and tried. Help too is easily available as the franchisor will provide training, marketing and operational support all way through.

cost management system based on the Operating Manual and Franchise Agreement. Nonetheless, not every franchisee is equally committed or possess the ability to succeed, as such the franchisor’s selection process must be thorough.

Nonetheless, success does not come without sweat.

Franchising may provide a proven system and structure but the business still requires an entrepreneur’s own hard work and effort to make it work. Before paying for a franchise, take time to assess if you have the right skills for franchising, evaluate the franchisor and the business and seek professional advice on the legal aspect of the franchise documents and agreement.

Do some market research to learn about the different franchise options.

Franchised networks expand quicker than company-run networks. Franchises are replicates of established and successful business models. Coupled with the correct advertising and promotional activities, the brand can expand, increase sales volume and provide stronger purchasing power to command greater discounts from its suppliers.

The franchisor can be spared from the time consuming and tedious task of continually recruiting manages for its’ branches/new units. The franchisee is taking care of their own recruitment. If they want to sell the franchise investment prematurely or at the right time, it is their own responsibility to find a suitable buyer instead of the franchisor.

WHY FRANCHISE YOUR BUSINESS Instead of having employees to manage extra outlets for you, franchisees will make an initial payment in return for becoming a part of your business. They will also continue to pay a percentage of their revenues throughout the duration of the Franchise Agreement. The costs of starting a new branch (franchise) are borne by the franchisee. Hence, franchising is seen as a cost effective channel for business development and expansion. This however depends on the willingness of the franchisor to invest time and money into creating an attractive franchise in the first place.

TYPES OF FRANCHISES Business format franchise is the most common and popular form of franchising. It is where the franchisor grants a licence to the franchisee to use its brand name, trademark and trade name as well as marketing and operating procedures and formats of conducting the business. In return, the franchisee pays an initial fee to the franchisor plus a percentage of the sales revenue. The franchisee owns the outlet they run but the franchisor controls how products are sold and business ideas are used. A legally binding contract known as a franchise agreement is signed between the parties and shall contain standard terms relating to grant clause, payments, obligations of franchisor and franchisee, support facilities, procedures, assignment, cession, termination, disclosure, provisional period, etc. Well known examples of business format franchise are McDonalds and Wendy’s.

As franchisees invest time and money into the franchise, they are keen to manage the day-to-day operations of the business with zest and pride. Their commitment is greater than that of employees who have no such obligation and are guaranteed to receive a basic salary at the end of the month. This commitment is also a loyalty encouragement for the franchisor’s brand as it now is also the franchisee’s brand too. Franchisees also do not require the in-depth level of management needed for employees as they require only a simplified and relatively low

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In a product distribution franchise, the franchise sells the franchisor’s products in a supplier-dealer relationship. The franchisor licenses its trademark and logo to the franchisee but usually not an entire system for running the business although the franchisee is required to adhere to a few guidelines such as selling the franchisor’s brand exclusively. This type of franchising is commonly found in the automobile, oil, computers or soft drinks industries. The franchisee enjoys a certain level of independence compared to running a business format franchise. Examples of this kind of franchise are Pepsi and Goodyear Tyres.

A management franchise is an arrangement where the franchisee provides the management expertise and format for conducting the business. Examples are Hilton and American Idol.

Sometimes, different types of sales relationships are also referred to as franchises. For example, a self-employed distributor can sell products on a manufacturer’s behalf. Aside from getting commission on any sales made, he can also make money from the sales made by other distributors he recruits.

This is usually seen in multi-level marketing companies.

An agency is another form of sales relationship where the entrepreneur sells goods or services on behalf of the supplier.

in a defined area and also the right to sell franchises to other people within the territory. This is the obvious difference between an area developer and a master franchisee. The master franchisee perform many of the tasks and duties of the franchisor and enjoy the benefits. This master franchisee also provides training and support as well as the right to collect fees and royalties.

FRANCHISE ARRANGEMENTS

NATIONAL FRANCHISE DEVELOPMENT BLUEPRINT (NFDB) 2012-2016

Due to the number of franchisors, industries and investment options that are possible, there are different types of franchise arrangements available to entrepreneurs. These can be either single-unit franchise or multi-unit franchise.

The NFDB lays out three phases to help the Malaysian franchise industry move forward with the target of making Malaysia a leading franchise hub in South East Asia with better inroads to the Middle East countries by 2020. NFDB aims to have 860 franchisors by 2016 and 1,140 by 2020.

A single-unit franchise is an agreement where the franchisee is given rights by the franchisor to open and operate only one franchise unit. This arrangement is the simplest and most common form of franchise in the market. A multi-unit franchise is an agreement where the franchisee is given the rights to open and operate more than one franchise unit, often in the same geographical area. It is also possible for a franchisee to operate additional single-unit franchises if or once the original franchise unit becomes successful. This is then considered a multiple single-unit franchise relationship.

• Phase 1 (2012-2014) involves the strengthening of franchise players/industry and the franchise development framework.

• Phase 2 (2015-2016) involves working towards a vibrant and robust domestic franchise industry.

• Phase 3 (2017-1010) involves creating Malaysia as a franchise hub.

There are two ways a multi-level franchise system can be achieved. One is through the area development franchise system where the franchisee is given the rights to open more than one unit of the same business during a specific time within a specified area. The other one is through the master franchise or sub-franchising system where the franchisee enjoys more rights than the former. In this agreement, the franchisee can open and operate a certain number of units

NFDB sets out four strategic thrusts, covering mainly Phases 1 and 2. The four strategic thrusts are supported by 36 strategies and 140 programmes and initiatives.

The government is targeting a 9.4% contribution from the franchise industry to the country gross domestic product (GDP), driving the average per capita income of industry players to more than RM2,990 a month in 2020.

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ADDITIONAL INFORMATION The Franchise Development Programme is implemented through the Local Franchise Development Programme (PPFT) and the Franchise Business Aid Fund (DBPF).

Malaysian Franchise Express (MyFEX) is an online franchise registration system developed by the Domestic Trade, Cooperatives and Consumerism Ministry to improve the manual system to register businesses. Applications via MyFEX can be performed any time and not only during office hours as in the manual system. To encourage the use of the online system, the processing fees charged are lower than in the manual system with the Government bearing RM0.50 of the administrative charge for every transaction via the Financial Process Exchange (e-FPX) or 1.8% for payment via credit cards.

i. PPFT offers a platform for local entrepreneurs with products that have the potential to be franchised to change their conventional businesses to franchises. Local entrepreneurs can appoint qualified franchise consultants to guide them through the process such as proper business system documentation and establishing a prototype outlet until registration as a franchisor. The cost of the consultation is borne by the programme. ii. The DBPF is an incentive to encourage local entrepreneurs to convert their conventional business into franchises, allowing qualified franchises to receive loans up to 90% for a maximum amount of RM100,000.

Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK) through Akademi Perbadanan Nasional Berhad (PNS) provides training for franchisors, franchisees, franchise consultants and the general public on franchising. PNS also provides funding, support and consultancy services to franchise businesses.

The Malaysian Franchise Association (MFA) is a nongovernmental organisation that cooperates with the Government to develop the local franchise industry. MFA members often act as mediator between the Government and the franchise industry.

The Graduate Franchisee Programme and the Women Franchisee Programme are designed to attract graduates and women to venture into the franchise industry. These are packaged programmes that include seminar sessions, training, evaluations, interviews and business matching.

Through the franchise entrepreneurship training, participants will be matched with suitable franchisors at the end of the programmes and be eligible for franchise financing schemes offered by PNS.

The Community Franchise Programme, organised by the Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK), was introduced in 2011 to promote micro franchising so that more franchising is more affordable especially with franchise businesses under RM50,000. It aims at encouraging medium and low income groups to venture into business. Target groups such as self-employed, retirees, single mothers, OKU or fresh graduates will be exposed to some of the business opportunities available with the right information.

Related Information: Malaysian Franchise Association Tel Fax E-mail Website

: 603 - 2697 1557 : 603 - 2697 1559 : secrtmfa@mfa.org.my : www.mfa.gov.my SME

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>>>>>>>>GLOBALIZATION • E-Commerce Is Emerging Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

E-Commerce Is

Emerging Business Online payment is an essential extension in e-commerce or online business. Businesses are adopting IT solutions and embracing e-commerce as a business channel to reduce marketing, transportation and distribution costs.. ...........................................................................................................................................

Electronic commerce (e-commerce) should not be seen as just another option of doing business, but a survival requirement.

The onslaught and continued development of Information and communication technologies (ICT) are making electronic commerce possible and almost changing completely how business are conducted.

The e-commerce relationships can be in the forms of Business to Business (B2B), Business to Customer (B2C) or Customer to Customer (C2C). B2B forms the bulk of all e-commerce activities.

At the 3rd Asia E-Commerce Conference held in Kuala Lumpur on October 2013, it was revealed that approximately 60% of SMEs in Malaysia do not own a website. SMEs therefore must follow the latest trend in doing business in order not to be left behind in era of globalisation. E-commerce enables manufacturers the privilege to deal directly with customers through online services. According to the Nielson-PayPal Analysis, the mobile e-commerce market size in Malaysia was RM467 million in 2011 with 72% spent via smartphones while 23% via tablets. A web traffic analysis tool, StatCounter, revealed that mobile usage in Malaysia increased from 10% in May 2012 to 20% in May 2013. Such data delivered one simple message to businesses; that tablets and smartphone are poised to replace desktops and laptops. Local entrepreneurs must seek new ways to explore the opportunities from the emerging and potential m-commerce market.

E-commerce or m-commerce, there is one underlying message – that wireless business transactions is on an uptrend mode and business must leverage on the vast opportunities in these areas in order to maintain, increase or capture new markets.

Consumers no longer confine their shopping to when they are have free time but are now able to shop around at their leisure at any time and at their comfort with virtually no costs compared to the conventional physical shopping. Everything is about consumers’ convenience.

THE YESs & NOs The Yes… • Faster selling and buying procedures and turnover.

• Buying and selling can be done any time, any day without any adherence to office, mall or shop hours.

• Low operational costs as business owners can operate their business from home or any location as long as there are internet connection. This cannot be done in conventional business as location always tops the list of importance for any business.

• E-commerce allows smaller businesses greater visibility to a greater audience and a higher possibility of expanding existing markets and customer bases.

SMEs in general are in a better position to adopt and adapt to wireless business as they can adapt faster than larger companies which may be bogged down by bureaucracy and inflexibilities. E-commerce offers SMEs more avenues to find new customers and suppliers especially in a ‘borderless market’ where reaching out to international or global markets is no longer impossible.

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Holding Back…

• Security is one of the most raised issues and highest concerns. Many business owners hesitate to embrace e-commerce due to their concerns about security, whether it is safe to conduct online transactions. Other security concerns include crime, loss of sensitive business information, brand name, theft or data loss, computer viruses, etc. These core issues hold back many SME entrepreneurs, preferring to stay in the conventional but tested method of doing business.

• Digital literacy is also a hindrance to adoption of e-commerce among SMEs such as employees without IT skills and the time and cost to train them • Concerns about setup and running costs

Do You Know That…

• With effect from 1 July 2013, all businesses and services conducted online must comply with the Consumer Protection (Electronic Trade Transactions) Regulations 2012, a regulation under the Consumer Protection Act 1999. Under the regulation, an online marketplace operator is required to, among others, to provide their full details, terms of conditions of sale, rectification of errors and maintenance of records.

• It is always cheaper and easier to service existing customers than finding new ones. Keeping track of customers is much easier and faster as what it takes is a click of a mouse to connect with your customers, anytime, anywhere. Video conferencing even allows you to see and discuss directly with them.

• Enables business owners to manage inventory in a more cost effective and efficient way as they can get supplies and products more quickly compared to traditional means.

The new law applies to two persons:• A person who operates a business for the purpose of supply of goods or services through a website or in an online marketplace (online business owners). Online marketplace refers to a website where goods or services are marketed by third parties for the purpose of trade. This can include your regular blog shops and seller with accounts with eBay, Lelong or Mudah online stores.

• A person who provides an online marketplace (online marketplace operator). This may include group buying websites operators such as GroupOn, auction and listing websites such as eBay, Lelong and Mudah, and online shopping websites where third party products as sold such as Zalora.

The Nos… • Mechanical failures or glitches can cause unpredictable effects on business.

• Easier for your competitors to copy your business ideas and concept in a very short time. There is no intellectual property protection.

• Many business owners overlooked or underestimate the costs of deliveries and logistics which can be costly and complicated.

• Payment gateways or e-commerce sites are prone to hackers’ attacks • Less personalisation may hamper businesses in the long run as e-commerce restrict personal interaction. Although many may adopt personal web tools, accounts or offer personalised product recommendations, the lack of human touch prevents personal selling and service experience to customers.

• As customers cannot physically feel, see, touch or smell the products, this may lead to returns as they cannot try on the products, sample the food or look closely before buying.

Product returns take time and money away. Customers may go elsewhere or worst, make negative comments about your products online which can spread faster than wildfire.

Failure to disclose the detail information or providing false or misleading information is an offence. Online business suppliers also need to provide appropriate means to enable the buyers to rectify any errors prior to the confirmation of the order made by the buyer, and acknowledge receipt of the order to the buyer without undue delay.

For online marketplace operators, they are required to take reasonable steps to keep and maintain a record of the names, telephone numbers and address of the person who supplies goods or services in the online marketplace for a period of two years.

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Business owners who are selling online, are offering online payments as part of their business activities or need to accept online payments through credit cards, need to sign up on an Online Payment Gateway Services. There are a few in Malaysia, entrepreneurs can simply choose one that best suit their needs. Some of the local and international gateways that Malaysian companies can use to process their online payments are:-

The order and the acknowledgement of receipt shall be deemed to have been received by the person who operates a business for the purpose of supply of goods or services through a website or in an online marketplace and the buyer, respectively, when the person and the buyer are able to access to such order and the acknowledgement of receipt.

As the first offence will be liable to a fine of up to RM100,000, online business is serious business.

iPay88 iPay88 is one of the Bank Negara-supervised online payment gateway solutions in Malaysia. It processes all major credit cards and merchants can transfer their funds into local bank accounts. It is PCI compliant, has a fraud prevention scheme and there is no need to install software or hardware. It offers two subscription plans - the SME Plan and SOHO Plan.

Customers can pay in RM. Some of its features are:-

In addition to the terms and conditions, online business owners and online marketplace operators must also comply with the Notice and Choice Principal provided by the Personal Data Protection Act 2010 by inserting a privacy notice, in the National and English languages, on their websites before the collection of any personal data.

• Initial set-up fee is RM488 • SME Plan costs RM500 per year; SOHO Plan is free • Transaction fees - 3% for SME Plan and 4% for SOHO Plan • Payment hold period is 5 working days • Minimum withdrawal is RM100 • No withdrawal fees • A one-time fee of RM900 for merchants wanting to obtain approval for credit card transactions on their storefront • Accepts Ringgit Malaysia Only (separate application for US Dollars) • Supports Visa, MasterCard, Mobile Money, PosPay and major payments from Malaysian banks

MOLPay MOLPay, formerly known as NBePay, is one of the earliest online payment gateways in the country. The company behind is NetBuilder which started as a web design and hosting company before venturing into e-commerce. It is one of the Bank Negara-supervised online payment gateway solutions in Malaysia. Some of its features are:-

ABOUT ONLINE PAYMENT SERVICES Online payment services enable businesses and consumers to exchange money electronically through the internet. It can be divided into:-

• Accept payments from Visa, MasterCard or PaypPal, Malaysian banks, CIMB Clicks, Alliance Online, AliPay,

• Local financial institutions where online credit card payments are made through acquirer merchant bank accounts, links through GHL systems, PayDirect or financial link payment gateway to MEPS (Malaysia Electronic Payment System). Besides online credit card payments, online payment methods are also available through direct debit in internet banking or mobile phones such as Mobile Money Weblink.

• International online payment providers such as PayPal or WorldPay.

RHB and Union Pay. • Setup fees are RM499 for Lite Package and RM899 for Premium Package • Provides online payment, online shop and e-catalogues • A one-time fee of RM900 for merchants wanting to obtain approval for credit card transactions on their storefront • No merchant account is required • Transaction fees – 3% + RM1.50 for MOLpay Standard

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• Integrates with most major shopping card providers • Processes manual payments, refunds and generate reports • Supports recurring billing and batch processing • Provides IVR-Telepay option • Setup fee is $150. Monthly fee starts at $50 and overage fee of $0.50 (includes 100 transactions)

WorldPay WorldPay, a US payment processors that allows Malaysian merchants to receive credit card payments online. Some of its features are:• No setup fees • Annual fees – USD140 (first year) and USD280 (subsequent years) • Transaction fees – 3.95% +USD0.10 • Supports multi currencies including Ringgit Malaysia • Funds can be transferred to local banks • Payment hold period is 4 weeks • Withdrawal processing is 5-7 days • Minimum withdrawal is USD180, withdrawal fee is USD18 • Accepts Ringgit Malaysia only

PayPal

• Withdrawal fee is RM2

PayPal, owned by eBay, is a global e-commerce business offering payments and money transfers through the internet.

Some of its features are:-

• Payouts made once a week • Offers international online payments, domestic e-payment solutions, mobile payment solutions and physical

• No setup, maintenance or annual fees

payment solutions

• Transaction fees – 3.4% + RM2 (domestic); 3.9% + RM2

• Supports multi-currency payments

(cross borders) • No limit on withdrawal frequency

MasterCard Internet Gateway Service (MiGS)

• No withdrawal fees (except for less than RM40, there is a

MasterCard Internet Gateway Service (MiGS) is a service offered by MasterCard. It enables Malaysian merchants to accept credit cards online. Some of its features are:-

fee of RM3) • Allows transfers to local banks (on request) • No payment hold period

• Accepts most major credit and debit cards and more than

• Withdrawal processing time is 2-3 days

145 currencies including Ringgit Malaysia • 3-D secure card holder authentication

Successful e-commerce solutions are always within reach of SMEs. It is a matter of jumping into the bandwagon or be left behind on foot. Being competitive and resilient to changes, so to speak, are SMEs’ advantages. SME

• Compliance with PCI DSS

Payment Express Payment Express is a Visa and MasterCard certified solution developed by New Zealand’s DPS. The connectivity in Malaysia is provided through a cooperation between First Data and Standard Chartered Bank. Some of its features are:• Plans – hosted and merchant hosted • Payments are processed in real-time • 3D secure and supported by CVV2 verification • PCI DDS Compliant

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>>>>>>>>GLOBALIZATION • Innovation in Business for Competitive Edge >>>>>>>>>>>>>>>>>>>>>>

Innovation in Business

For Competitive Edge It is almost imperative to keep up with global challenges to enhance and strengthen the competitiveness of SMEs by acknowledging the importance of innovation for a sharper competitive edge. ...........................................................................................................................................

Today’s dynamic and uncertain business environment needs more than strategic strategies. Businesses must be capable enough to evolve in co-ordination with the conditions. One important way is through the ability to innovate. Innovation can be through the introduction of new or better products and services, methods of production, opening of new markets or new source of raw materials.

innovate, particularly in the face of competition so their products can be better than their competitors in order to claim a bigger share of the market.

Innovation provides the ability to be different especially for start-up businesses searching a place in a highly saturated and competitive market. Established businesses or businesses with a long presence in the market also need to maintain or expand their share of the market from being ‘snatched’ away by new entries; and innovation is the formula if they need to be above the rest.

Malaysian SMEs need to be promoted to enhance their competitive advantages, more so if the country wishes to create more home bred multinational corporations (MNCs).

One way is through the effective utilisation of resources and enhance innovativeness of the SMEs. Many know about it but not many are successful at actually doing it either because they do not know how to innovate or how innovativeness can influence performance and productivity.

Innovation is not for big corporations alone. Groundbreaking and revolutionary products and services can be created by all businesses, simply by being innovative.

The Organisation for Economic Cooperation and Development (OECD) defines innovation as, “… the introduction of a new or significantly improved product, process, marketing method or organisational method in business practices, workplace organisation or external relations”.

As much as it is being perceived, innovation has little to do with state-of-the-art technologies but rather a state of mind, a way of doing business and change the business according to changes in the environment. Regardless how outstanding the technology used, the success or failure of an innovation very much depends on the acceptance or rejection by the market. In fact, SMEs are in an advantageous position where innovations are concerned.

SMEs, because of their size and built-up can react quicker to new ideas, can develop and implement them in shorter time.

The decision making process is also shorter as businesses are usually managed by the owner with less bureaucratic red tapes. Their smaller overhead costs make them more specialized in implementing innovations at lower costs than their larger counterparts.

Innovation is the key for the durability of any business.

Innovation to SMEs usually only begins when there is a need to be so. They produce or serve what the consumers need and always seize the chance to fulfil those needs. Along the way, these solutions will get better and easier as small entrepreneurs come up with the improved solutions. Entrepreneurs will

At the same time, SMEs often face disadvantages in access to financing which limits their budget to fund innovations.

This shortcoming also hampers their ability to take on a few innovation projects at the same time.

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HOW TO BE INNOVATIVE

TO INNOVATE AND TO BE INNOVATIVE

• Do research on customers and market to find out what products or services they need and cannot get.

• Study existing trends in the market that can be exploited or improvised.

• Keep a lookout for what the competitors are doing i.e. adopt their successful approaches and learn from areas they are not doing well by doing better, improving them or abandon them.

• Review existing procedures and processes to search for areas for improvement • Capture new ideas through conventional and not so conventional mediums such as through organising events, workshops or brainstorming sessions.

• Working with other businesses does not mean they will steal your ideas. Collaboration helps especially if the business does not have the time nor money to ride the risk or burden. In cases where both are facing similar shortages and issues it is a viable solution to work together to overcome them.

Listen to the consumers. This is where creating an online strategy or one that includes extending into social media may be an effective way to collect ideas and connect with the customers. Connecting with customers may involve conducting a market survey to understand, with facts and figures, the environment in which the business is operating in and the competitors. This step also offers customers channels to offer feedback on the products and services of the company.

Innovation begins internally, from within the company. The business culture of the company must thrive in innovation; not afraid of risk-taking, promotes new ideas, adaptable and flexible. Business owners need to be willing to adopt positive attitudes and mentality to enhance competitiveness through innovation. In simpler terms, not being stubborn or fixed in the old ways, and treat changes as losing out, in face and money.

Get exposed to events, seminars and workshops to build up knowledge in innovation. Skills, like being innovative needs continuous sharpening and enhancement.

One of the most elementary skills in business is to know the target market. Although this in its own is not fundamental in being innovative, learning how to know the ideal audience is as the knowledge is the footing for innovative, successful brands today. To innovate is to be, to do and to think differently from others, out of the box. Understanding your audience habits and preferences, in short, what drives them to buy, helps in positioning your brand as an innovator. And this is your own niche market from being innovative.

WHY INNOVATION IS IMPORTANT • Innovation helps businesses to discover existing opportunities or those likely to emerge in future, enabling them to stay ahead of competition as markets, technologies and trends change with times.

• Constantly innovation can help to improve business practices which in turn can enhance the chances of recruiting better workforce and retaining them. Innovation drives sustainability.

• Innovation, when maximised creatively can provide a commercial advantage as consumers often regard innovation as plus points that adds value to a company or its products. Consumers are also more willing to pay more for well-designed and innovative products, services or marketing strategies.

• Innovation is also includes maximising social media for managing, motivating and promoting the business. Used effectively, it can allow businesses to draw ideas for the business, learn what customers are saying about the company’s products or services and their responses to new products, new branding or new marketing strategies of the company. Many a time, innovation in keeping with times can grow and enlarge the market size, simply through the ‘invisible’ arms of social networks.

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All businesses require some form of assistance from the Government at some point along the road. The Government’s policies and agendas must support and speak the language of innovation. Simultaneously, geographical culture, economic and market conditions play crucial roles in driving innovation among business people. For example, innovation dries out faster when the market conditions are unfavourable - when there are major layoffs or retrenchments, when businesses can barely break even or when people and businesses start to play safe and reduce or stop taking risks. Innovation should not stay complacent. Oddly, every so often businesses can get ‘the most innovative’ when they are faced with hardships.

When there’s no other choice, they start to innovate in order to change.

Detailed information on these programmes by Genovasi Malaysia can be obtained from:-

GENOVASI MALAYSIA

HPI School Of Design Thinking @ Genovasi

Genovasi Malaysia is spearheaded by Unit Inovasi Khas (UNK) under the Prime Minister’s Department.

Tel Fax E-mails Website

Genovasi is a transformative learning institution trying to cultivate young minds to think out of the box with programmes focused on the cultivation of innovation competencies so that talents can be harnessed from various disciplines and backgrounds and provide them with skills that will make them catalysts for innovation.

: 603 – 7954 0628 : 603 – 7954 0793 : info@genovasi.my (general enquiries) : www.genovasi.my

(Source: Genovasi Malaysia)

ADDITIONAL INFORMATION THE MALAYSIA DESIGN INNOVATION CENTRE (MDI)

At HPI School of Design Thinking @ Genovasi, a humancentred approach to innovation that employs multidisciplinary teams, flexible environments and a creative process to generate user-focused products, services or experiences, known as the Design Thinking is advocated. It has been used successful by companies as part of their business strategy and a challenge— solving tool for developing user-centric solutions.

The MDI is a government-private sector initiative to drive creativity and innovation to advance business in an intensely competitive globalized environment. It is the professional arm of LimKokWing University College of Creative Technology and will house some major Malaysian companies, which together with other incubation units set up by the University are where students learn to create and manage products and services.

There is also the Innovation Ambassador Development Programme (IADP) to help individuals discover that with the right tools, their imagination and ideas can bring about purposeful solutions. The programme teaches Design Thinking, a methodology to uncover the potential in innovating userfocused services, products and experiences. Participants get to experience how to get to the source of the challenge/problem by going out in the field to find out true needs, ideate and then prototype or build low-resolution solutions to test on users.

With the feedback gained, they will then refine the solution by reiterating the process in meeting the user needs based on the challenge. Participants shall be working in multi-disciplinary teams with team members consisting of engineers, dancers, artists, accountants, marketers or IT experts. They will also be working in partnership with Malaysia’s top organisations to help solve real world issues contributed by them, for the project.

MDI helps businesses to generate ideas on building and managing brands, on achieving brand promise and on sharpening brand presence in their markets. MDI is also forging strategic alliance with design guilds, universities and professional institutions to enable business and industry to tap the world’s network of designers, engineers and specialists.

Among some of MDI’s services are product design, packaging design, exhibition design, advertising, brand development, capacity development, etc.

Tel : 603 – 8317 8888 Fax : 603 – 8317 8988 Website : www.malaysia-innovation.com SME

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>>>>>>>>GLOBALIZATION • What is ISO? >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

What

is ISO? International Standards bring many technological and economic benefits as they help to standardise the technical specifications of products and services, thus making industries more efficient. Compliance with international standards reassure consumers that your products are safe and efficient. ...........................................................................................................................................

Standards are documents that provide individuals or organisations with a set of requirements, guidelines and specifications to ensure that the materials, processes, products and services are fit for the respective requirements.

Many bodies publish these kinds of standards but the most prominent and sought after is the International Organisation for Standardisation or famously known as ISO. There are many different international standards that begin with ISO followed by a code, for example ISO 9000 or ISO 26000. The International Organisation for Standardisation is the largest developer of voluntary International Standards in the world.

ISO International Standards enable consumers to know that the products or services concerned are safe, reliable and of good quality. Businesses acquire these International Standards as strategic tools to reduce costs through the minimisation of waste and error, and increase productivity. These Standards enable companies to penetrate new markets, especially for those from developing countries as Standards can help to break down international trade barriers. This in turn can facilitate a free and fair global trade.

It started back in 1946 when delegates from 25 countries met at the Institute of Civil Engineers in London and decided to create a new international organisation to ‘facilitate the international coordination and unification of industrial standards’. The new organisation, ISO, began operations in February 1947. Current memberships totalled 164 countries and 3,368 technical bodies to take care of the development of standards. The ISO’s Central Secretariat is based in Geneva, Switzerland.

The ISO is a worldwide federation or network of national standards bodies that represent the ISO in their country which also make up the overall ISO memberships (one from each country). Established in 1947, it is a non-governmental organisation to promote the development of standardisation and related activities in the world. ISO’s work results in international agreements which are published as International Standards. ISO does not perform certification. Organisations wanting to be certified to an ISO standard must contact an independent certification body.

Individuals or companies cannot become ISO members. There are three member categories with each enjoying different levels of access and influence over the ISO system.

• Full members or member bodies can influence the development and strategy of ISO standards by participating and voting in ISO technical and policy meetings. They can sell and adopt ISO International Standards nationally.

There are currently 114 full members in the ISO. Malaysia is a member body of the ISO. • Correspondent members observe ISO standards development and strategy by attending ISO technical and policy meetings as observers only. They can also sell and adopt ISO International Standards nationally. There are 46 correspondent ISO members today.

• Subscriber members can keep up to-date about ISO’s work but cannot participate in any of them. They also cannot sell or adopt ISO International Standards nationally. At present, the ISO has four subscriber members.

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WHY STANDARDS?

THE DEPARTMENT OF STANDARDS (STANDARDS MALAYSIA)

Standards are necessities to trade in the increasingly competitive, globalised and challenging world markets.

Standards safeguard and make sure that any businesses offering any products, services or processes are credible, costeffective, time efficient, safe and commercially practical.

Standards Malaysia, established in 1996, is governed by the Standards of Malaysian Act 1996 (Act 549). It is an agency under the Ministry of Science, Technology and Innovation (MOSTI). The Malaysian Standard is a consensus document developed by the Standards Development Committee in the Malaysian Standards Development System with approval by the Minister of MOSTI. A standard becomes mandatory when a regulatory agency enforces its use through the relevant Acts and Regulations.

Companies use standards to ‘win and maintain’ consumers’ confidence as Standards are used as a benchmark for quality, competence or safety considerations. They are also a way to overcome technical barriers in international trade due to the differences in technical regulations and standards which are developed independently by every country or company. The establishment of International Standards is an effective way to overcome this problem.

Malaysia, through Standards Malaysia is a member of the ISO and International Electro-technical Commission (IEC). As such, the Malaysian Standards are recognised by many countries in the world. Standards Malaysia is also a signatory to these bodies, which have helped to open up doors of opportunities for Malaysian-made products and services:-

For manufacturers, standards can help to eliminate, reduce or discourage wastes in labour, raw materials or resources.

Most importantly, they can reduce manufacturing costs as well as rationalising the whole manufacturing processes. For the consumers, standards are assurance on the quality of the goods and services purchased and received besides providing better value for their money as they are able to compare the compatibility between products. As standards promote fair competition, consumers can enjoy lower prices for goods and services produced by certified companies. Companies which possess certification for certain areas such as environmental protection serve as guidelines for consumers looking for suitability of products for specific needs like children or the elderly. Standards related to the environment like air, water and earth, gas emissions, radiation or environmental aspects can contribute to efforts to preserve, conserve and protect the world’s environment.

Mutual Recognition Arrangement (MRA) • Asia Pacific Laboratory Accreditation Cooperation (APLAC) • International Laboratory Accreditation Cooperation (ILAC)

Multilateral Recognition Arrangement (MLA) • Pacific Accreditation Cooperation (PAC) • International Accreditation Forum (IAF) The sustainability of standardisation depends crucially on copyright protection due to the significant number of Standard users breaking copyright laws through reproduction or redistribution of Standards. Additionally, the Standards also face risks of tampering or modifications.

The public can purchase the Malaysian Standards online at www.sirim.my or at the SIRIM Library.

Standards on aspects such as terminology, compatibility and safety also provide support for innovation from original concept to market. They speed up the often long periods of development of prototypes or ideas into marketable, commercially and manufacturing viable products.

Contact Details: Standards Malaysia Tel Faxx E-mail Website

ISO’s scope is not limited to any particular sector or industry as it covers all standardisation fields except electrical and electronic engineering. These two fields are the responsibility of the International Electro-technical Commission, IEC. The work in the information technology field is carried out by a joint ISO/IEC technical committee.

: +603 – 8318 0002 : +603 – 8319 3131 : central@jsm.gov.my : www.jsm.gov.my

The Government, with effect from the 2004 assessment year, offers a tax deduction for expenditures incurred by the private sector when they participate in international standardisation activities. The participations must be verified and approved

by Standards Malaysia. An amendment was also made to the Income Tax Act 1967 through the inclusion of paragraph 34(6)(o) which states, “…an amount equal to the expenditure incurred by a company in the relevant period for participating in international standardisation activities approved by the Department of Standards Malaysia”.

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POPULAR STANDARDS Iso 9000 – Quality Management

ISO 14000 – Environmental Management The ISO 14000 family of International Standards relates to various aspects of environmental management, setting out requirements and practical tools for companies and organisations on what they can do to minimise the harmful effects their activities have on the environment and to achieve continual improvement on their environmental performance.

The ISO 9000 family of standards is applied to quality management systems. They are designed to be used by organisations and companies to ensure that they meet both the needs of customers and statutory and regulatory requirements on their products. A quality management system creates more effective and efficient operations and is a reflective representation of what a company does to fulfil customers’ quality requirements, enhance customers’ satisfaction and achieve continual improvement of its performance.

• The ISO 14001:2004 and ISO 14004:2004 focus on environmental management systems. ISO 14001:2004 spells out the requirements for an environmental management system that demands objective evidence which can be audited to prove that the environmental management system in place is operating effectively to conform to the standard. On the other hand, ISO 14004:2004 specifies the guidelines on the elements of an environmental management systems, its implementation and principal issues involved. The usage of ISO 14001:2004 brings about some benefits, including the reduced cost in waste management, savings in consumption of energy and materials, lower distribution costs and an improved corporate image.

• Other standards in this family deals with specific environmental aspects such as labelling, performance evaluation, life cycle analysis, auditing and communication.

ISO 9000, first published in 1987, comprises of many standards such as:• ISO 9001:2008 is a world-wide accepted standard that sets out the criteria or requirements of a quality management system. It is used by any companies regardless of size or activities, not merely confined to quality control alone.

The standard is based on several quality management principles such as strong customer focus, motivation of top management, process approach and strong customer improvement.

• ISO 9000:2005 covers basic concepts and language • ISO 9004:2009 covers on how to make a quality management system to be more efficient and effective • ISO 19011:2011 provides guidance on internal and external audits of quality management systems.

ISO 31000 – Risk Management ISO 31000 helps organisations to increase their possibilities of achieving their objectives, improve identification of opportunities and threats as well as being able to allocate and use resources for risk treatment effectively. It is applied to public, private or community enterprises, associations, groups or individuals. Although ISO 31000 cannot be used for certification purposes, it does provide guidance for internal and external audit programmes. Organisations can use it to compare their risk management practices with an internationally recognised benchmark which can provide sound strategies for effective management and corporate governance.

There may be differences in the labelling; ISO 9000 and ISO 9001:2008 are used interchangeably but all refer to the same ISO 9001:2008 standard.

Some of the standards related to risk management are:• ISO Guide 73:2009, Risk Management - Vocabulary complements ISO 31000 through the provision of terms and definitions relating to risk management • ISO/IEC 31010:2009, Risk Management - Risk Assessment Techniques focuses on risk assessment which can help decision makers understand the risks that could affect the achievement of objectives and the competence and suitability of control methods already in place. Simply put, it is directed at risk management concepts, processes and the selection of risk assessment techniques.

• ISO 31000:2009, Risk Management - Principles and Guidelines provides the principles, process and framework to manage risks.

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ISO 26000 – Social Responsibility ISO 26000 sets out the guide on how businesses and organisations can operate their business activities in a more socially responsible way such as adopting ethical and transparent business practices that can contribute to the health and welfare of the society.

ISO 26000:2010 provides guidance only, rather than setting out the requirements. Due to this, unlike other ISO standards, it cannot be certified but merely helps to clarify what social responsibility is. It assists businesses and organisations to translate principles into effective practical actions and shares best practices that are related to social responsibility, aiming at all types of organisations regardless of their activities, sizes or locations.

ISO 22000 – Food Safety Management

ISO 50001 – Energy Management

The ISO 22000 family of International Standards addresses issues related to food safety management by helping organisations to identify and control food safety hazards.

Globalisation and advancement in global transportation have enable food products to cross borders quickly and in huge quantities. International Standards are required to ensure the safety of the global food supply chain.

ISO 50001 encourages and supports all organisations in all sectors and industry to utilise energy more efficiently through the development of energy management systems (EnMS). The ISO 50001 is based on the management system model of continual improvement used in other well-known standards like ISO 9001 or ISO 14001. This move enables organisations to easily integrate energy management into their overall efforts to improve quality and their environmental management.

The ISO 22000 comprises many standards with each of them focusing and addressing different aspects of food safety management such as:-

The ISO 50001:2011 specifies the criteria to establish, implement, maintain and improve an energy management system. It provides a framework to enable an organisation to follow a systematic approach to achieve continual improvement of energy performance, energy efficiency, energy use and consumption including fixing targets and objectives to meet the policy. It also enables an organisation to use data to better understand and make decisions about their energy use and subsequently measure the results to see how well the policy works to continue improving their energy management.

• ISO 22000:2005 - overall guidelines for food safety management • ISO/TS 22004:2005 - guidelines for applying ISO 22000 • ISO 22005:2007 - traceability in the food and feed chain • ISO/TS 22002-1:2009 - specific prerequisites for food manufacturing • ISO/TS 22002-3:2011 - specific prerequisites for farming • ISO/TS 22003:2007 - specific guidelines for audit and certification bodies

ISO 27001 – Information Security

Similar to other ISO management system standards, although the ISO 50001 certification is possible, it is not compulsory.

Some implement the standards due solely to the benefits it offers while some get the certification for increased corporate image, to show external parties that they have implemented an energy management system.

The ISO 27000 series of standards are reserved for security matters. This family of ISO 27000 International Standards helps organisations to keep information asset secured.

Organisations can use the standards to manage the security of their assets including financial information, intellectual property, employees’ particulars or third party information entrusted or kept by the organization. They are also aligned with several other standards such as the ISO 9000 (quality management) and ISO 14000 (environmental management).

Although designed to be used independently, ISO 50001 can be integrated or aligned with other management systems. Its implementation is intended to promote and effectively lead to reductions in energy costs, greenhouse gas emissions and other related environmental impacts through the systematic management of energy.

The most well-known standard in the ISO 27000 family is the ISO/IEC 27001:2007 which provides requirements for an information security management system (ISMS). ISMS

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THE MALAYSIAN STANDARDS ON LIGHT EMITTING DIODES (LEDs) LEDs or solid-state lighting solutions were developed amidst the concerns of the effects of energy bulbs on the environment, driving consumers globally to seek for better alternatives in energy-efficient bulbs. The popularity of LEDs stems from their ability to deliver longer life span, low energy usage, minimal maintenance and flexible lighting output.

LED products need proper standards to ensure that they conform to safety requirements and standards. Standards can also measure the performance of LED-related products such as control gears, lamps, modules and luminaries. These Malaysian Standards on LEDs are published to cover the safety and testing, performance and control gears of LEDs. • MS IEC 60598-1:2012 (P), Luminaires - Part 1 : General requirements and tests • MS IEC 60838-2-2:2008, Miscellaneous lamp holders - Part 2-2 : Particular requirements - Connectors for LEDmodules • MS IEC 61347-1:2012 (P), Lamp control gear - Part 1 : General and safety requirements • MS IEC 61347-2-13:2012 (P), Lamp control gear - Part 2-13 : Particular requirements for d.c. or a.c. supplied electronic control gear for LED modules • MS IEC 62031:2011, LED modules for general lighting – Safety specifications • MS IEC 62384:2012 (P), DC or AC supplied electronic control gear for LED modules - Performance requirements • MS IEC 62560:2012 (P), Self-ballasted LED-lamps for general lighting services by voltage > 50 V - Safety specifications • MS 62504:2012 (P), General lighting - LEDs and LED modules - Terms and definitions • MS 62612:2012 (P), Self-ballasted LED-lamps for general lighting services - Performance requirements • MS 62717:2012 (P), LED modules for general lighting Performance requirements • MS 62722-1:2012 (P), Luminaire performance-Part 1:General requirements • MS 62722-2-1(P), Luminaire performance-Part 2-1: Particular requirements for LED luminaires

refers to a systematic approach to manage sensitive company information so that they remain secured. ISO/IEC 27001:2007 ensures the selection of adequate and proportionate security controls to protect information assets, thus providing confidence to relevant parties that the availability, integrity and privacy and confidentiality of information are secured.

Similar to other ISO management system standards, ISO/ IEC 27001 certification, although possible is not obligatory.

Again, some may implement the standard to benefit from its best practices while some may also get certified to reassure their customers that its recommendations have been followed.

Some other standards in this family are:• ISO/IEC 27002:2007 which focuses on establishing guidelines and general principles to initiate, implement, maintain and improve an organisation’s information security management. It includes best practices of control objectives and controls in many areas of information security management.

• ISO/IEC 27005:2012 supports the general concepts specified in ISO/IEC 27001. Its objective is to facilitate the satisfactory implementation of information security based on a risk management approach by providing guidelines for information security risk management in an organization.

Nonetheless, it does not provide specific methods for information security risk management but rather leave it to organisations to define their approach to risk management depending on their context of risk management, industry sectors or scope of their ISMS.

(Source: International Organisation for Standardisation, Malaysian Department of Standards, Ministry of Science, Technology & Innovation, SIRIM Berhad) SME

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>>>>>>>>SPECIAL FOCUS • Going For A Halal Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Special Focus

 Going For A Halal Business - Funding, Support & Assistance For Halal Businesses  Business in Agriculture - Agribusiness - Funding, Support & Assistance For Agribusiness  Green Technology - Supporting Green Technology  All About Biotechnology - Supporting Biotechnology  Budget 2014 Highlights for SMEs 112

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>>>>>>>>SPECIAL FOCUS • Going For A Halal Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Going For A

Halal Business The Arabic word Halal means lawful, allowed or permitted for Muslims, to that which is permitted by Syariah. It originated from the word Halalan Thoyiban. Halal, used in conjunction with the economy refers to business conducted in a manner permissible in Islam. When used in relation to food, it refers to food which is in compliance with the laws of Islam. ...........................................................................................................................................

Malaysia contributes about 1.25% to the global halal trade of US$2.3 trillion. Although we seem to be still quite lagged behind other countries in spurring and growing the halal market, we have been aggressively promoting ourselves as can be seen in Malaysia’s halal initiatives such as strict halal certification processes which is accepted across all Muslim countries, including the Middle East. We now have SMEs exporting to Gulf Co-operation Countries (GCC) because of the Malaysia Halal logo which is at par with others. The halal industry is expected to contribute 8.5% to the country’s total exports by 2020.

The concept of Halal has slowly become accepted as a lifestyle choice covering not only religious practices and food but has also span finance and non-food products. The common understanding of halal being limited to religious needs and only applicable to Muslims is fast changing and due to this shift, the prospects of this industry is deemed gigantic.

Small and medium enterprises (SMEs) should take advantage of the lucrative potentials within the burgeoning and flourishing global halal market. This is deemed the ‘in’ and ‘it’ business strategy especially when conventional and existing markets seem saturated and crowded. The halal industry is also driven from the enormous business opportunities offered by the global Muslim population of about 1.8 billion or 23% of the world’s population, which is growing daily. Malaysia’s export value for halal products in 2011 was RM35.4 billion.

The halal industry is the blue ocean.

Contrary to past perception, the halal sector covers more than food products but also includes various types of services. It is also more than being compliant with regulations to obtain the halal certification to sell halal products but that these products or services must also meet international standards and consistency applied in international markets.

The Malaysia Department of Islamic Development (JAKIM) is the main agency managing Islamic affairs at the Federal level and is also the secretariat to the National Council for Islamic Affairs Malaysia (MKI). The main functions of JAKIM are:• Legislation and standardization of Islamic law • Islamic administration coordination • Adjustment and development of Islamic education

OBTAINING MALAYSIAN HALAL CERTIFICATION Applications for the Halal Certification can be made directly to the Division of Islamic Food and Consumption of JAKIM. JAKIM also conducts site inspection outside the country for accreditation purposes since there are imported products in the country that carry the halal stamp. These inspections do not however determine whether the sites should cease operations or otherwise. In the event that JAKIM finds substantial evidence that a site breaches Islamic rules, JAKIM may disallows the sale of such products in Malaysia as halal.

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• Product must be clean and free from non-halal ingredient during preparation, handling, processing, packaging or transportation processes.

• Apparatus and facilities in the premises must be clean and free from contamination by substance considered as najis (filthy) or harmful to health.

• Transportation used is only for halal products.

• Company must ensure the cleanliness of tools, transportation, production and surrounding areas are in line with Good Manufacturing Practices (GMP) • Workers are required to practise specific code of ethics and good hygiene such as:- Obtain medical injection (TY2) from medical centres recognised by the Government.

- Practice good health care and personal hygiene especially those production operators.

- Sick or injured workers whom may affect product quality are not allowed to work until they recover.

- Not allowed to touch bare-handedly any raw material or semi-finished product.

- Activities affecting production quality i.e. smoking, eating, drinking, etc. must be done in a special area, away from the production area.

- Anybody entering the production are must wear special or decent attire that follows healthcare procedures and personal healthcare. Applicable to all permanent and temporary workers, management staff, visitors, etc.

- Workers must wear suitable attire, head and mouth covers, suitable gloves and shoes.

- Wash hands with soap before starting any food handling activity, after using the toilet and after handling raw materials or contaminated substances.

• Workers are not allowed to wear any jewellery or accessories, watch, etc. in the food processing area which may cause contamination to the food product.

• Workers must always be working and functioning at designated places.

• Workers must be committed and responsible with the stipulated halal policy.

• Religious worshipping items are strictly forbidden in the premise / food processing area.

WHAT ARE THE GUIDELINES? • Must only produce / manufacture / sell / distribute halal products only.

• Applicants must ensure that sources of ingredients are halal, deal with suppliers which supply halal materials or the suppliers are holders of halal certification certificate.

• Company must abide to all procedures in all aspects are spelt out in the Manual Procedures.

• Companies classified under Multinationals and SMEs must form an internal Halal Audit Committee and appoint one Islamic Affairs Executive to handle and ensure compliance of halal certification procedures.

• At least two full time Malaysian Muslim workers employed in the kitchen / handling / processing of food.

Further Information: Jabatan Kemajuan Islam Malaysia (Jakim) – Halal Hub Division Tel : 603 – 85315 0200 Hotline : 1-800-880-555 (within Malaysia), 603 – 8313 7280 (outside Malaysia) Fax : 603 – 8318 7044 E-mail : ehalal@islam.gov.my Website : www.islam.gov.my

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RELATED INFORMATION

• MS 2393:2010(P), Prinsip Islam dan Halal - Definisi San Penjelasan Istilah • MS 2200-2:2012, Barangan Gunaan Islam - Bahagian 2: Penggunaan Tulang, Kulit Dan Bulu Haiwan - Garis Panduan Umum

Malaysia currently recognises 75 Islamic bodies in 49 countries worldwide as certification bodies for products imported into Malaysia.

- Australia - Austria - Argentina - Bangladesh - Belgium - Brazil - Canada - China - Chile - France - Germany - India - Indonesia - Italy - Japan - Kenya - Korea - Netherlands - New Zealand - Pakistan - Philippines - Poland - Singapore - South Africa

- Sri Lanka - Sudan - Switzerland - Taiwan - Thailand - Turkey - United Kingdom - United States of America - Vietnam - Burkina Faso - Brunei - Egypt - Gambia - Guinea - Kuwait - Mali - Mozambique - Oman - Qatar - Senegal - Yemen - UAE - Morocco - Iran

These MSs can be purchased online @ www.msonline.gov.my or directly from:

Department Of Standards Malaysia Tel Fax Website E-mail

: : : :

603 – 8318 0002 603 -8319 3131 www.standardsmalaysia.gov.my central@standardsmalaysia.gov.my

The accreditation process by JAKIM involves site inspection by competent Malaysian officials and the appointment of an Islamic Organisation entrusted to supervise and monitor the halal status of the site. For the beginning, the halal status is conferred on an approved site or establishment, for a period of one year. During the period, the Islamic Organisation will constantly monitor the site. In order to maintain the halal status, the establishment will be subjected to inspections by officials biennially. Failure of the Islamic Organisation to monitor or supervise any site or establishment will result in annulment of its accreditation and withdrawal of the halal certification awarded to the site.

Malaysia has been a pioneer in the development of Halal standards and have published Malaysian Standards (MSs) on Halal:• MS 1500:2009, Halal Food - Production, preparation, handling and storage • MS 2200 : Part 1:2008, Islamic Consumer Goods - part 1: Cosmetic & personal care - General guidelines • MS 1900 : 2005, Quality management systems - Requirements from Islamic perspectives • MS 2300 : 2009, Value-based management system - Requirements from an Islamic perspective • MS 2424: 2012 Halal pharmaceuticals - General guidelines • MS 2400 series on Halalan - Toyyiban Assurance Pipeline > MS 2400-1 : 2010, Halalan-Toyyiban Assurance Pipeline Management System Requirements For Transportation Of Goods > MS 2400-2:2010, Halalan-Toyyiban Assurance Pipeline - Management System Requirements For Warehousing And Related Activities > MS 2400-3:2010, Halalan-Toyyiban Assurance Pipeline - Management System Requirements For Retailing

The Halal Fiesta Malaysia, HALFEST, is a trade show featuring quality halal-certified products and services by Malaysian SMEs. The inaugural HALFEST was held at the Putra World Trade Centre in October 2011 and has since been an annual event. HALFEST is hosted by the Halal Industry Development Corporation (HDC) in collaboration with JAKIM, Muslim Consumers Association of Malaysia (PPIM), Majlis Amanah Rakyat (MARA) and CIMB Islamic Bank Berhad.

HALFEST is organised and managed by Sharpers Malaysia which founded the Malaysia International Halal Showcase.

The event is open to the public. It is a fantastic medium for SMEs to strengthen their brand development and establish their mark in the local market before embarking on their halal expansion globally.

(Source: Malaysia Department of Islamic Development & Halal Industry Development Corporation) SME

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>>>>>>>>Going For A Halal Business • Funding, Support & Assistance for Halal Businesses >>>>>>>>

Funding, Support & Assistance

For Halal Businesses Public and private support for halal businesses are important not only because of its importance to Muslims but also needed because of the huge potential the industry has in generating employment and national revenue. ...........................................................................................................................................

The Malaysian Halal logo is accepted and considered the most reliable in the world. Entrepreneurs producing, exporting or selling halal products must take advantage on the myriads of loans, grants and facilities offered by the Government, its agencies and the private sector to increase their production of halal products especially in capturing the overseas market, reputed to worth over RM3 trillion.

Malaysia’s seriousness to be a leading halal hub is also seen in the target set in the Third Industrial Masterplan. Several federal agencies, such as SME Corporation, have been tasked to undertake this responsibility as evidenced by the strong institutional support by the Government to develop and promote the halal industry.

Unfortunately, not many SMEs are aware of financial assistance or support provided by the Government related to halal. These support, monetary or otherwise, is being used appropriately can reduce operating expenses so that business can be expanded. The Government has, is and will be promoting initiatives and programmes, financial or otherwise to promote the halal industry.

According to the Halal Industry Development Corporation (HDC), the key challenges faced by halal industry players are:• Highly competitive market • Very few companies have export potential • Competition in pricing • Few companies with HACCP and GMP certification • Production of low value products • Lack of product innovation and branding

HALAL INDUSTRY DEVELOPMENT CORPORATION (HDC) HDC’s capacity building initiatives aim to support the Government’s agenda in developing SMEs as the engine of growth and innovation.

Some of the key roles are:• To promote and create awareness of Malaysian Halal products and services.

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• To establish engagement with key stakeholders to identify challenges and opportunities so that structured action plans can be implemented accordingly.

• To coordinate capacity building activities in the areas of improvement of SMEs’ manufacturing capabilities, facilitation in business expansion and providing marketing channels and industry linkages.

• To support and facilitate initiatives on halal standard development and Syariah advisory according to the needs of the industry.

• To identify potential Malaysian companies to be nurtured and developed as a world class players i.e. Halal Champions.

The Halal Professional Programme (HPP) covers:• HPP 01 : Professional Halal Trainer Workshop • HPP 02 : Professional Halal Auditors Workshop • HPP 03 : Refresher Course For Halal Consultants Consultancy services provided by HDC are:• Halal compliance advisory services which include assistance in halal certification application, halal preaudit, non-performance findings rectification exercise and follow-up on the halal requirements.

• Internal organisation competency development which covers the enhancement of knowledge, expertise and technology to meet the current demands.

• Establishment of halal industry development system where HDC shares and consults with other organisations globally who are intended to be a qualified certification body. There is also sharing of business data for the purpose of enhancing business contact between local and international industry players.

• Supply chain business process improvement where HDC established relationships with various international organisation so that local industry players are able to extend or market their products and services through the initiative.

• Commercialisation of R&D where opportunities are created for industry to promote halal products that can benefit consumers.

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halal products and services. Halal Champions are supported and given assistance in accelerating their growth through market expansion. Companies are selected based on profile, products, performance and successful vendor programmes.

Halal Champion programme aims to create companies that can help to nurture other Malaysian businesses such as suppliers and contract manufacturers within their network.

Contact Details: Halal Industry Development Corporation Tel : 603 – 7965 5555

Hotline

Fax Website

: 1–800– 80–555 (within Malaysia) / 603 – 7965 5400 (outside Malaysia) : 603 - 7965 5500

: www.hdcglobal.com

MALAYSIAN INTERNATIONAL HALAL SHOWCASE (MIHAS) HALAL PARKS, HALMAS & HALAL CHAMPIONS What Is A Halal Park?

A Halal Park is a community of halal-oriented businesses, both manufacturing and services, built or located on a common property. Companies are provided with infrastructure and service support to market, manufacture and sell their halal products. By working together, the tenants in halal parks can enjoy enhanced environmental, economic and social performance through collaboration in managing halal products and resources issues.

At present, there are 24 halal parks in the country of which 13 have been awarded HALMAS status. Each halal park is focused on specific industries such as biotechnology, food and beverages, pharmaceutical and education. More than 140 companies mostly SMEs and 15 multinationals are operating in various halal parks throughout the county. Halal parks spans from 0.8ha to more than 40.4ha.

What Is HALMAS? HALMAS is an accreditation given to Halal Park operators who have successfully complied with the requirements and guidelines stipulated under the HDC designated Halal Park Development. Operators, industry players and logistic operators bestowed with the HALMAS status are able to enjoy incentives given by HDC to help existing and would be players in the halal industry.

What Are Halal Champions?

Halal Champion is a status awarded by HDC to qualified local halal certified SMEs. It gives recognition to companies that have demonstrated a staunch commitment towards promoting

MIHAS, the largest congregation of halal industry players, is hosted by the Ministry of International Trade and industry (MITI) and organised by the Malaysian External Trade Corporation (MATRADE). It started in 2004 with the sole aim to facilitate the sourcing and selling of quality halal consumables, products and services globally – from pharmaceuticals and herbal products, cosmetics and health care to Islamic investment, banking and takaful.

Through the MATRADE-MIHAS Incoming Buying Mission Programme, more than 500 buyers from around the world are brought into the country to converge at the exhibition to establish business networking with local businesses and agencies involved in the halal industry.

Contact Details: Malaysian International Halala Showcase (MIHAS) Tel : 603 - 6203 4433

Fax : 603 - 6203 4422

E-mail : enquiry@halal.org.my Website : www.halal.org.my

TEKUN NASIONAL Tabung Ekonomi Kumpulan Usaha Niaga (Tekun Nasional) or Entrepreneurs’ Economic Fund was established in 1998 under the purview of the Ministry of Entrepreneurial and Cooperative Development. It provides easy and quick capital for Bumiputeras to do small-scale businesses. Similar assistance is also offered to Indian entrepreneurs, with an allocation of RM180 million for young Indian entrepreneurs for 2013. In 2009, Tekun Nasional was officially placed under the responsibility of the Agriculture and Agro-based Ministry.

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Since 1998, Tekun has issued a total of RM2.7 billion loans involving 258,676 operators with repayment of RM1.58 billion. The biggest sector is services (45%), followed by retail (35%), agriculture and agro-based enterprises (10%), manufacturing (8%) and construction and sub-contractors (2%).

The incentives for the production of halal food for the export market and to increase the use of modern and state-of-theart machinery and equipment in producing high quality halal food that comply with international standards are given to companies which have already obtained the halal certification from JAKIM.

Tekun provides loan amounts from RM1,000 to a maximum of RM50,000 for repayment terms of between 6 months to 5 years. Its loan repayments offer interests as low as 4%.

Additionally, companies producing halal food will be given Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred within a period of five years. The allowance can be set-off against 100% of statutory income in each year of assessment. Any unutilised allowance can be carried forward to subsequent years until the whole amount has been fully utilised.

Contact Details: Tekun Nasional Tel : 603 - 9058 8550

Fax : 603 – 9059 5777

E-Mail : mailbox@tekun.gov.my Website : www.tekun.gov.my

Applications can be submitted to MIDA directly.

Contact Details: Malaysian Industrial Development Authority (MIDA) Tel : 603 - 2267 3633

MALAYSIA INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA) To enhance competitiveness of local halal products in the global market, special deductions are given for halal certification, quality system or standard certification from companies incurring expenses in:• Expenses in obtaining quality system, standard certification and halal certification from JAKIM / Jabatan Agama Islam Negeri / Majlis-Majlis Agama Islam Negeri • Expenses in obtaining international quality system and standard certification

Fax : 603 - 2274 7970

E-mail : investmalaysia@mida.gov.my Website : www.mida.gov.my

(Source: Malaysian Industrial Development Authority)

SME BANK MALAYSIA SME Bank is one of the driving forces behind Malaysian SMEs in their venture into the global halal market. The lucrative global halal industry is also attracting non-Muslims to tap into its potentials.

SME Bank under its Halal Industry Fund provides funding for SMEs to add value or improve their halal products. This initiative is created in collaboration with strategic partners such as Islamic Development Bank, Malaysia External Trade Development Corporation (MATRADE) and Halal Industry Development Corporation (HDC) in developing the Young Entrepreneur Fund (YEF). YEF aims to assist youths aged 1830 years old to venture into entrepreneurship with minimum financing of RM50,000 up to a maximum of RM100,000.

SME Bank has a specialised SMEs and Development Financial Institutions training, consultancy and research centre called CEDAR (the Centre for Entrepreneur Development and Research). CEDAR was launched in 5 November 2012 and fully incorporated as a subsidiary of SME Bank on 16 April 2013. CEDAR offers SMEs a hassle free way of attaining halal certification from JAKIM. CEDAR provides consulting services and facilitation to businesses for halal certification of their products and services, advising manufacturers on promotion of halal products through supply chain management of global

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halal market as well as consultation services to attain greater acceptability of their products and higher profits if they obtain certified halal labels. Focus industries are food, cosmetics and personal care, pharmaceutical and logistics. The scope of activities covers pre-audit, training, e-halal application, document preparation, physical preparation, surveillance and maintenance of halal certification.

EQUITY FUND

Contact Details: SME Bank Tel : 1800 88 3131

Fax : 603 - 2691 2707

E-mail : customercare@smebank.com.my Website : www.smebank.com.my

HDC is also joining hands with SME Corp. to enhance the capability of SMEs, nurture and develop them through the provision of financial and non-financial services to become bigger players and exporters who can generate more export revenue.

DEPARTMENT OF ISLAMIC DEVELOPMENT MALAYSIA (JAKIM) JAKIM, under the Prime Minister’s Department, establishes the Malaysia Halal Logo and implements the Halal Certification System. It also issues halal certificates for local and export markets as well as monitors and enforces of halal guidelines.

HALAL INDUSTRY MASTER PLAN 2008-2020 The Halal Industry Masterplan is a comprehensive blueprint consisting of a three-phase roadmap for the development of Malaysian halal industry. The Masterplan has entrusted the Halal Development Corporation (HDC) to identify and grow halal-certified companies in the country into ‘halal champions’ in the global market under the Champion Development Programme.

The Plan is divided into three phases:• First Phase from 2006-2010 • Second Phase from 2011-2015 • Third Phase from 2016-2020 The Plan is now in its second phase which will focus on industrial development so that halal industry can contribute to the local economy, in trade, investment and employment. The third phase will focus on widening the access of halal exportready companies worldwide.

During the World Halal Week Conference 2013, it was announced that a RM1.55 billion (US$500 million) private equity fund would be set up to focus on global opportunities in the halal industry, to be raised over the next three years. It would be raised by Azka Capital, a private equity advisory firm that focuses on halal industry initiatives.

Additionally, Azka Capital will also provide solutions for halal industry players including advisory services in assisting them to have better access to the halal market. The fund would be raised mainly in the Gulf Cooperation Council (GCC) countries and Asia. It will not be open to the public and is for high net worth individuals and institutions.

Azka Capital is one of the latest initiatives to be jointly developed by the World Halal Forum. The company is advised by practitioners from the halal food sector, Syariah advisory services from Amanie Advisors and Dubai-based Dar Al Shariah.

SIRIM SIRIM-QAS International, a wholly owned subsidiary of SIRIM Berhad has been appointed by HDC as a partner to assist in auditing the good manufacturing practice component of halal compliance of companies. This ensures more SMEs are groomed to become export-ready and capable of achieving the quality and standards required, and to be more resilient in the highly competitive global halal market. (See advertisement page 26 & 27).

(Source: Halal Industry Development Corporation, JAKIM, SME Bank & Malaysian Industrial Development Authority) SME

Over the near term, the Halal Development Corporation (HDC) plans to promote 20 successful local companies abroad so that they are able to get greater exposure and increase commercialization of their products catering for the global market.

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>>>>>>>>SPECIAL FOCUS • Business in Agriculture - Agribusiness >>>>>>>>>>>>>>>>>>>>>>>>>>>>

Business in Agriculture

- Agribusiness Malaysia is not a global heavyweight in the agricultural sector, as according to World Bank it accounts for only 11.9% of GDP, with a large proportion coming from palm oil revenues. Palm oil is the country’s main commodity and contributes 9% to the GDP. Agriculture employs nearly 11% of the labour force in Malaysia. ...........................................................................................................................................

There is a significant agricultural policy in place from 2013 onwards. It is the abolishment of the tax-free quota for 3.0mn tonnes of crude palm oil exports. This policy will allow Malaysian refiners to compete better against other lowercost refiners from abroad like Indonesia. The country is also moving to reduce our reliance on food and agricultural imports as can be seen from state-specific policy to increase livestock rearing and investments in genetically modified crops. The latter is due to produce results by 2018-2020. All these signifies the importance in of agriculture, a once main industry and economic activity of the country.

Agribusiness is more than land farming or rearing animals.

Many agribusinesses buy from or sell their products directly to farmers and many provide services to farmers to keep them in business. Starting any type of agribusiness needs researching so that the business can be profitable from start-up.

Develop a marketing plan that defines the business, identify potential markers and ways to reach customers. In this age of technology and speed, creating a website for the agribusiness is an added advantage.

• Globalisation and media, especially social media have exposed people to be familiar with different cultures and foods. As a result, there is varied demand for food of all ethnicity which can be easily found in mainstream supermarkets.

There is a considerable market potential for agribusiness in Malaysia in order to access the vast market, entrepreneurs must move with change, customising products according to market demands and adhere to global food safety, practices and environmental requirements.

AGRICULTURE UNDER THE NATIONAL KEY ECONOMIC AREA (NKEA) The Agriculture NKEA focuses on transforming the traditionally small-scale, production-based sector into a large scale agribusiness industry that can contribute to economic growth and sustainability. Transformation is based on an integrated and market-centric model that focuses on economies of scale and value chain integration.

Global food demand is expected to increase by 10% between 2010-2015 as compared to production and supply which will only increase by a mere 1.6%. Although taken on its own may spell good news for potential agribusiness, many factors are influencing changes in the demand for agriculture produce, mainly due to increased consumer affluence and response toward climate changes. Understanding these changing trends and consumption habits are vital in ensuring potential entrepreneurs in agribusiness can produce what the market needs and in turn, able to generate profit from the business.

The Agriculture NKEA also focuses on selected sub-sectors which have high-growth potential – aquaculture, seaweed farming, swiflet nests, herbal products, fruits and vegetables and premium processes food.

• Growing concern for health and food safety as consumers are looking for food that are low in fat, less sugar and free from harmful chemicals.

• Organic food is the ‘in’ thing.

• Demand for convenience as busier lifestyles and increased costs of eating out make ready-to-eat products popular.

• Concerns for environmental sustainability leads to retailers and producers having to adopt business or farming practices that minimize the negative impact on the environment.

Agribusinesses are being influenced by rapid changes in the competitive business environment. As a result, the challenge for agribusiness managers is to formulate strategies to accommodate these changes, such as the concept of supply chain management to assist in this process. SME

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The transformation strategy comprises 4 key themes:• Capitalising on competitive advantages • Tapping premium markets • Aligning food security objectives with increasing gross national income (GNI) • Participation in regional agriculture value chains

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>>>>>>>>Agribusiness • Funding, Support & Assistance for Agribusiness >>>>>>>>>>>>>>>>>>>>>>>

Funding, Support & Assistance

For Agribusiness Agriculture is a fundamental part of Malaysia. Agriculture supports not only the rural communities but many other businesses along the supply chain and related industries.

From small family-owned farms to large operated commercial farms through to businesses in agribusiness, support in many forms is important to ensure the viability and sustainabibilty of this industry. ...........................................................................................................................................

MINISTRY OF AGRICULTURE & AGRO BASED INDUSTRY (MOA)

Non Fiscal Incentives Incentives meant to motivate and change the direction from traditional farmer to commercial farmer and subsequently improve and develop the farming produce into agro food sector.

MOA provides both development funds and incentives for entrepreneurs and businesses involved in agribusiness.

LKIM Fisherman Fund An easy credit fund especially for fishermen to increase their income and catch productivity.

MAYBANK AGRO FUND SDN BHD The objective of Maybank Agro Fund is to invest in agriculture, aquaculture and bioterch based private businesses. The investment focus is to create and develop an ‘integrated agro’ concept that benefits not only large industry players but also creating a spill over effect for traditional farmers, breeders and fishermen.

• Integrated Fisheries • Integrated Liovestock Farming • Integrated Horticulture Crop Farming • Biotechnology & Food Technology

TechnoFund The TechnoFund scheme is for the development of new technology and enhancement of technology produced through R&D projects financed by the ScienceFund Scheme.

Fiscal Incentives They are investment incentives for agriculture and agriculture based industries.

• Deduction and exemption payment of income tax.

• Exemption of sales tax and duty.

Contact Details: Maybank Ventures Sdn Bhd Tel : 603 – 2032 2188 Fax : 603 – 2031 2188 Website : www.mayban-venture.com.my

MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (MIDA) Under the Promotion of Investments Act 1986, ‘company’ in relation to agriculture refers to:• Agro-based cooperatiove societies and associations • Sole proprietorships and partnerships engaged in agriculture

Contact Details: Malaysian Investment Development Authority (MIDA) Tel : 603 - 2267 3633 Fax : 603 - 2274 7970 Website : www.mida.gov.my

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MALAYSIAN AGRIFOOD CORPORATION (MAFC)

Agricultureal products under FAMA service’s field are vegetable, fruits, grain and herbal, livestock and aquaculture.

The Malaysian Agrifood Corporation (MAFC), established in 2006, is a government-lined corporation (GLC) which is fully commercial in nature. MAFC is set up to support the country’s agriculture and food supply chain, act as a catalyst for improved agriculture production and create value at every level of food supply chain.

Contact Details: Federal Agricultural Marketing Authority (FAMA) Tel Fax E-mail Website

MAFC’s focus is to reform the food supply chain by catalysing the production of fresh produce and integrating various components based on the principle of “farm to fork” such as product quality, type, variety, packaging, grading and pricing.

AGROBANK Agrobank is a Government-linked company under the Minsiter of Finance Incorporated. Agrobank’s financing of the agriculture sector is driven by a policy set forth by MOA.

MAFC also sets up building facilities such as Consolidation, Processing and Packaging Centre (CPPC), Collection Centres (CC) and Distribution Centres (DC) around the country to efficiently handle even high midstream management of perishable foods. Its processing activities range from basic grading and sorting of fresh produce to packaging and labelling, operating in compliance with global best practices in food safety standards, including HACCP and GMP.

Contact Details: Agrobank Tel : 603 - 2731 1600 Fax : 603 - 2691 4908 Website : www.agrobank.com.my

Contact Details: Malaysia Agrifood Corporation Berhad Tel Fax E-mail Website

: : : :

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD (CGC)

603 – 5623 5000 / 603 – 5623 5155 CSC 603 – 5623 5100 customerservice@magc.com.my www.mafc.com.my

The Enhancer Islamic Scheme (Enhancer-i) assists entreprenurs who have viable projects but lack the collateral to obtain the required financing amount. Eligible borrowes are Malaysian individuals or group of individuals, Malaysian-controlled or Malaysian-owned companies and SMEs.

TEKUN NASIONAL

Contact Details: Credit Guarantee Corporation Malaysia Berhad (CGC)

TEKUN is an acronym for Tabung Ekonomi Kumpulan Usaha Niaga, an agency under the Ministry of Agriculture and AgroBased Industry. The objective of TEKUN is to provide simple, easy and quick financing facilities to bumiputeras to kickstart and expand their businesses. Total financing is between RM1,000 to RM50,000. Repayment period is from 6 months up to five years.

Tel : 603 - 7806 2300 Fax : 603 - 7806 3308 Website : www.cgc.com.my

RELATED INFORMATION

Contact Details: Tekun Nasional Tel Fax E-mail Website

: 603 - 6126 2020 : 603 - 6138 3650 : fama@fama.gov.my : www.fama.gov.my

The National Agro-Food Policy was approved by the Malaysian Cabinet on 28 September 2011 to replace the National Agriculture Policy. The policy guarantees a sufficient amount of food supples which would also be safe consumption in the country and to turn agro-food into a competitive and sustainable industry. It is expected to run for a decade from 2011-2020.

: 603 - 9058 8550 / 8999 : 603 - 9059 5777 : mailbox@tekun.gov.my : www.tekun.gov.my

FEDERAL AGRICULTURAL MARKETING AUTHORITY (FAMA)

The National Agro-food Policy is hoped to increase the revenues of farmers as well as agro-entrepreneurs, in line with the Government’s effort to develop Malaysia into a high income status nation by 2020. SME

FAMA is a marketing agency established under MOA, formed to monitor, coordinate and develop product marketing of Malaysian Agriculture including export and import.

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>>>>>>>>SPECIAL FOCUS • Green Technology >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Green

Technology Green technology is technology whose use is intended to mitigate or reverse the effects of human activities on the environment…

- Oxford Dictionaries. ...........................................................................................................................................

Green technology has been explained in many ways.

Malaysia’s Ministry of Energy, Green Technology and Water (KeTTHA) defines it as “the development and application of products, equipment and systems used to conserve the natural environment and resources, which minimize and reduce the negative impact of human activities.” Green technology can also be said as environmentally friendly technology based on its production process or supply chain which is less harmful to the environment than traditional methods of burning with fossil fuels.

Unlike other technologies, green technology is very much material science based. The purpose of this technology is to create new technologies or alternative sources of energy that do not damage or deplete the earth’s natural resources, thus reducing global warming as well as the greenhouse effect.

In order to be qualified as green technology products, equipment or systems, they must satisfy the following criteria:• It minimises the degradation of the environment.

• It has a zero or low greenhouse gas (GHG)emission.

• It is safe for use and promotes healthy and improved environment for all forms of life.

• It conserves the use of energy and natural resources.

• It promotes the use of renewable resources.

The application of green technology has grown over the years, encompassing basic recycling efforts or energy saving light bulbs. Whatever the definition, green is ‘the way’ to go today and it is staying put.

Low Carbon Economy can be best understood as the range of activities which are materially supported by the need to reduce the release of GHG into the atmosphere Source: UN, Global Compact

At the United Nations Climate Change Conference at Copenhagen, Denmark on 17 December 2009, Prime Minister Dato’ Sri Mohd Najib Tun Razak delivered Malaysia’s stand to reduce its carbon dioxide emission up to 40% in terms of emission intensity of GDP by 2020 compared with its 2005 levels, subject to assistance from developed countries (United Nation data showed Malaysia’s carbon emission in 2006 stood at 187 million tonner or 7.2 tonnes from each Malaysian).

Energy is one the most urgent issues for green technology especially in areas of developing alternative fuels and new means of energy generation which also promotes energy efficiency. Another is in the area of nanotechnology which is the manipulation of materials at the scale of the nanometer, one billionth of a meter. Green nanotechnology applies the principles of green chemistry and green engineering.

Today’s lives have become more technologically advanced but most of the time at the cost to the environment. One does not need to be a rocket scientist or an environmentalist to understand all about utilising green technology such as adopting some easy environmentally friendly solutions – use less plastics or seek out products that support green technology are some examples.

Sectors that can embrace green technology are agriculture, energy, water and waste management, building and transportation.

It is expected that only 5.5% of Malaysia’s total energy will come from renewable sources by 2015.

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One of the impacts of the policy is a minimum RM2.1 billion savings of external cost to mitigate carbon dioxide emissions (total 42 million tonnes avoided from 2011 to 2020 on the basis of RM50 per tonne of external cost).

Emerging green technologies are shaping lives and how people use energy such as:• Smart lighting is gaining ground when compact florescent lights (CFLs), although may cost more but have longer lifespans than incandescent bulbs – eight or more incandescent bulbs to match the life span of a CFL. • Daylight harvesting is a popular concept in new and modern buildings where the power of natural lighting is used. Intelligent self-sensing controllers are used to make the most use of natural light.

• Electric cars which are powered by thousands of Li-lon batteries can perform 0 to 60mph in four seconds.

• High-tech recycling where mixed recycling materials on a conveyer belt can be swished through a series of smart sensors and sorters. Magnets are used to segregate iron from other non-metals like paper or plastic. Shakers are used to separate other materials.

• Green computing where computer components are made from recycled materials for easy recycling.

The objectives of the RE Policy are:• To increase RE contribution in the national power generation mix.

• To facilitate the growth of the RE industry.

• To ensure reasonable RE generation costs.

• To conserve the environment for future generation.

• To enhance awareness on the role and importance of RE.

Malaysian National RE Targets Year

Cumulative RE Capacity

RE Power Mix

2015 2020 2030

985 MW 2,080 MW 4,000 MW

5.50 % 11 % 17 %

Cumulative CO2 Avoidance 11.1 mt 42.2 mt 145.1 mt

Green Building Index & Green Township

GREEN TECHNOLOGY IN MALAYSIA

The Green Building Index (GBI), launched in 2009, is a green building rating tool in Malaysia recognised by the World Green Building Council. It was developed with the Malaysian Institute of Architects and the Association of Consulting Engineers Malaysia in 2009 to create an environmentally friendly approach in the property industry.

National Green Technology Policy The National Green Technology Policy was introduced in July 2009 in which green technology shall be the driver to accelerate the national economy and promote sustainable development. Green technologies are to be developed in four core sectors-energy, buildings, water and waste management, and transport.

Green Township is one of the initiatives of KeTTHA to combine all the key sectors outlined in the National Green Technology Policy.

The five objectives:• To minimise growth of energy consumption while enhancing economic growth.

• To facilitate the growth of the green technology industry and enhance its contribution to the national economy.

• To increase national capability and capacity for innovation in green technology development and enhance Malaysia’s competitiveness in green technology in the global arena.

• To ensure sustainable development and conserve the environment for future generations.

• To enhance public education and awareness on green technology and encourage its widespread use.

Putrajaya is also planned as a garden and intelligent city with 38% of its areas is reserved for green spaces through the emphasis on enhancement of natural landscape.

International Greentech And Eco Products Exhibition And Conference Malaysia (Igem) The IGEM series, launched by KeTTHA in 2010, is the region’s largest green technology and eco products exhibition to promote Malaysia as the green technology hub. It paves way for entrepreneurs, students, producers and manufacturers to know about the opportunities in the green sector.

Activities organised are:• Exhibitions • Conferences / Seminars • Cooperation between local and foreign universities • Workshops • Documentaries / Videos • Business Matching Sessions • Business Networking

National Renewable Energy Policy The National Renewable Energy Policy Energy Policy aims to enhance the utilisation of indigenous renewable energy resources to contribute towards national electricity supply security and sustainable socio-economic development.

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• Green technology enables businesses the ability to meet strict product specifications in foreign markets as many manufacturers especially in developed countries impose stricter environmental requirements and specifications for imports, vice versa.

The seven focus areas are energy, manufacturing, buildings, information and communications technology (ICT), water, waste and transport.

SMES & GREEN TECHNOLOGY

• The use of green technology can improve production efficiency through reduction in input costs, energy consumption and maintenance costs. Reducing energy bills is one of the main reasons small businesses implement green technology in their business operations.

Although the “green thing” has been going abuzz for some time, there is actually many SMEs which do not know how to “go green”. SMEs should take green seriously especially with the Government’s move to reduce the country’s reliance on subsidies for fuel.

• Green technology also provides a natural and easier alternative to expensive chemicals, for example, in encouraging sustainable and greener farming.

SMEs need to rethink and replan their business principles and strategies to accommodate the need for energy efficiency and sustainability as these are the business practices of the future, as well as a mean to control costs. Rising costs in energy is a challenge for SMEs as they struggle to stay afloat and ahead in increasingly competitive markets, more so without the economies of scale that larger corporations easily enjoy.

• The Green Business Bureau reports that promoting a healthier workplace sees a 20% decrease in the number of employees’ sick days which can translate into increased productivity and savings in paid out medical benefits.

The implementation of the minimum wage system and the hike in fuel prices pose the need cut costs and one of the important step in being energy efficient.

• Business sustainability can be a powerful marketing strategy to promote customer loyalty and stronger brand identity.

Many people are passionate about the environment and keep to anything labeled as “organic” or “environmentally friendly material”. Many modern consumers go for companies with more sustainable models.

What and how can SMEs leverage on the benefits of going green; by adopting green technology in their business practices?

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• Companies like manufacturers may switch to green technologies to reduce our carbon footprints on the environment which is an essential part of any company’s corporate social responsibility (CSR). CSR is now an expected report from companies and they have to be comprehensive as financial reports too.

• Companies utilising green technology are eligible for tax incentives and rebates by the Government in tandem with its plan to cut down on energy subsidies and raising prices to normal market rates by 2016; companies must learn how to reduce their energy consumption now so that they can enjoy market advantage in lower operational costs and free up the budget for other expenses.

GREEN TECHNOLOGY CHALLENGES Green business is smart business…

• Get everybody in the company to be involved so that they can feel a part of the process rather than feeling that going green is the responsibility of the boss only.

• Regulating standby power consumption has been recognised as one of the most cost effective potential enduse energy efficiency measures. Staff must be reminded and trained to always turn off electrical appliances that are not in use - standby power accounts for 10% of overall total energy consumption. Or use energy-saving devices like motion detector lighting in areas that are not used regularly.

• Make recycling a rule and business philosophy

To move towards greener business practices requires training of workers’ skills and knowledge. This is quite a challenge for SMEs where, due to limited resources, often encounter problems in training, recruitment and retaining of talent.

SMEs’ participation at training and development has always been lower than larger corporations, many hence do not keep abreast of the latest news and technologies around for them to change.

Many SMEs are relatively unaware about the technological and operational adjustments required to adopt low-carbon business practices. Many are unaware of the availability of resources or assistance for them in this field, or have little awareness and interests about the future needs for green skills, green investments or green business strategies.

Some of the common barriers are:• Lack of alternatives to current chemical, raw materials or methods resulting in companies continuing with what they are doing or using • Relatively high implementation costs of changing to green technology • The uncertainty shrouding the use of green technology such as the end-results, impact or effects on business turnovers and revenues which may due to lack of clear precedence or data for reference

Companies must know that going green involves more than cutting down on paper usage or dump your chemical or industrial wasters properly. In this digital age, almost a third of a company’s energy consumption is generated from IT and office equipment. In times to come, companies may need a lot of servers to store all the data of their businesses such as invoices, customer databases, reports or forms and documents; all these need to be stored digitally. Hence, it is no longer about using environmentally friendly equipment or products but how to ensure the most efficient use of energy.

Going green is something that does not produce immediate effects, something unattractive to small businesses like SMEs which need to decide whether they want short-term profits or long-term sustainability. The lack of concern should not continue until the Government discontinues with the energy subsidies because it could be too late then. Profits made in the short period may even be short of paying for the rising energy bills, what more adopting green technologies. SME

Take little steps…

Going green need not cost an arm and a leg. Do with little steps that can go a long way.

• Check the current energy use to monitor areas where spending is top to keep track of what energy is costing most. Simple habits like servicing the air-conditioners regularly may give immediate energy savings.

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>>>>>>>>Green Technology • Supporting Green Technology >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Supporting

Green Technology For businesses, small or big, incentives particularly monetary are great motivators to encourage them to go green.. ...........................................................................................................................................

GREEN TECHNOLOGY FINANCING SCHEME (GTFS)

MYHIJAU

The Green Technology Scheme was announced in the Budget 2010 to improve the supply and utilisation of green technology, benefitting companies who are producing green technology and users of green technology, with a total financing amount of RM1.5 billion. In Budget 2013, the fund was increased to RM 2 billion and the application period extended for another three years ending 31 December 2013.

MyHijau, established in 2012, is the ‘brand name’ for a clutch of programmes that have or are being developed to support the goals and aims of the National Green Technology Policy.

They are:• MyHijau Directory - a listing of certified green products by companies • MyHijau Labelling – a national green endorsement and

GTFS is a soft loan which is similar to normal loans but is supported by the government where the borrower must repay the loan to the bank throughout the tenure period.

labelling programme • MyHijau SMEs – a programme to build the capacity of SMEs to manufacture eco-labelled products • MyHijau Procurement – being developed by KeTTHA and the Minsitry of Finance to be implemented in government agencies

The Government will bear 2% of the total interest/profit rate and provides a guarantee of 60% on the financing amount via Credit Guarantee Corporation Malaysian Berhad (CGC) while the remaining 40% financing risk is borne by participating financial institutions.

Contact Details: Kementerian Tenaga, Teknologi Hijau dan Air (GTFS) Tel : 603 - 8889 3712

Contact Details: Green Technology Financing Scheme (GTFS) Tel : 1 800 88 4837

Email : webmaster@kettha.gov.y Website : www.kettha.gov.my

Email : feedback@gifts.my Website : www.gtfs.my

MALAYSIAN GREEN TECHNOLOGY CORPORATION The Malaysian Green Technology Corporation popularly known by its acronym GreenTech Malaysia was established on 12 May 1998 as the Malaysian Energy Centre (PTM) focusing on the development of the energy sector particularly on technological research and demonstration of renewable energy and energy efficiency. When the national Green Technology Policy was launched in 2009, PTM was restructured as GreenTech Malaysia as the implementing arm for KeTTHA. The services offered by GreenTech Malaysia are:• Consultancy and advisory services on green technology financing, SME business development, green procurement, energy audit, product certification, labelling, etc. It also compiles information, statistics and data on green technology projects and roadmaps.

• Acting as the secretariat for the Working Committee of Green Technology and Climate Change Council, Green Technology Financing Scheme, Clean Development

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•

•

•

•

Mechanism and coordinates national green technology initiatives and projects.

Energy audit and energy management consultancy services to building owners, industrial players and facility maintenance companies.

Conducts green technology learning programmes for individuals, school programmes and eco-camps to create awareness on green knowledge. Training modules for adults are geared to develop core capabilities in energy management, green lean sigma, environmental fiscal reforms, green building management and fundamental principles behind green technology such as greenhouse gas and climate change.

Certifications and endorsements on green technology products and services under Green Labelling, Green Tag and Green Directory.

Provides a directory for green businesses to advertise and promote eco-products and services.

Contact Details: Malaysian Green Technology Corporation Tel Fax E-mail Website

: 603 – 8921 0800 : 603 – 8921 0801 : info@greentechmalaysia.my : www.greentechmalaysia.my

GOVERNMENT INITIATIVES • Pioneer tax incentives for companies involved in energy conservation and generation, renewable energy, waste recycling, natural gas vehicles and hybrid cars.

• 100% import duty waiver for electric and hybrid cars until end of 2013, after which the National Automotive Policy will be announced to help spur the growth of electric and hybrid cars.

GREEN LED /SSL PROGRAMME The Green LED/SSL Prohramme is one of the Entry Point Projects under the National Key Economic Areas (NKEAs) to spearhead growth strategies to position and promote Malaysian LED products in global markets. Solid-state lighting (SSL) products including light-emitting diodes (LEDs) have been receiving considerable attention due to their potential advantages over conventional lighting technologies.

• Building owners who obtain green building certification from 24 October 2009 until 31 December 2014 are given income tax exemption equivalent to the additional capital expenditure in obtaining such certificates.

Launched in 2012, the Green LED/SSL programme is in line with the Government’s directive to promote LED/ SSL lighting as a cost and energy efficient lighting solution.

Additionally, starting 2014, the Government will ban/phase out all incandescent/conventional lights in building/property projects.

• Buyers purchasing green building certification from developers are given stamp duty exemption on instruments of transfer of ownership, which is equivalent to the additional cost incurred in obtaining the green building certification for the period 24 October 2009 until 31 December 2014.

The scope of funding includes:• Funding for the development or improvement of activities

• Recognising and promoting green townships through the introduction of the Green Building Index to implement the Low Carbon City Framework in order to promote low carbon development in cities and townships.

for commercially viable SSL products • Partial/matching grant for the purchase or improvement of manufacturing equipment, testing, processes or monitoring techniques to obtain international certifications

(Source: Ministry of Energy, Green Technology & Water and Ministry of Finance) SME

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>>>>>>>>SPECIAL FOCUS • All About Biotechnolgy >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

All About

Biotechnology Biotechnology is the use of living systems and organisms to develop or make useful products, or “any technological application that uses biological systems, living organisms or derivatives thereof, to make or modify products or processes for specific use”…

- UN Convention on Biological Diversity, Art. 2. ...........................................................................................................................................

Simply put, biotechnology is technology based on biology.

In general, biotechnology is divided into two major branches:• Non-gene biotechnology deals with whole cells, tissues or individual organisms. This is more popular and some examples of these biotechnology practices are the cultivation of plant tissues, hybrid seeds, or microbial fermentation.

• Gene biotechnology which involves gene manipulation, cloning, etc.

The term biotechnology was coined by a Hungarian agricultural engineer, Karl Ereky (1878-1952) in 1917 to describe the merging of biology and technology. He foresaw the timewhen biology could be used for turning raw materials into useful products. That vision has now been turned into reality through the existence of a growing list of biotechnology products such as medicines, medical devices, diagnostics, biofuels, biomaterials, more-resilient crops, etc.

Biotechnology has applications in four major industrial areas – healthcare or medical, crop production and agriculture, nonfood or industrial uses of crops and other products such as biodegradable plastics, and environmental uses. Many terms have been coined to identify and differentiate the different branches of biotechnology such as:-

Modern biotechnology have revolutionised the products and technologies to combat devastating or rare diseases, reduce environmental effects, energy savings, etc.

Biotechnology studies innovation and progress in agriculture, food technology, medicine and science so that the products made from or through biotechnology can improve the quality of human lives.

• Bioinformatics is an interdisciplinary field addressing biological problems using computational techniques. It is a field that develops and improves on the methods for storing, retrieving, organising and analysing biological data through the use of computer science, mathematics and engineering to process these data. Bioinformatics is a key component in the biotechnology and pharmaceutical sector.

• Blue biotechnology is used to describe marine and aquatic applications. It is rarely use though.

• Green biotechnology is biotechnology that is applied to agricultural processes by using genetically altered plants or animals to produce more environmentally friendly farming solutions such as agriculture, horticulture and animal breeding. For example, plant engineering to express a pesticide, thereby ending the need of external application of pesticides.

• Red biotechnology is related to the discovery and development of innovative drugs and treatments in medicine such as designing organisms to produce antibiotics or vaccines, or engineering genetic cures through genetic manipulation, or for use in forensics through DNA profiling.

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>>>>>>>>SPECIAL FOCUS • Business in Agriculture - Agribusiness >>>>>>>>>>>>>>>>>>>>>>>>>>>>

Business in Agriculture

- Agribusiness Malaysia is not a global heavyweight in the agricultural sector, as according to World Bank it accounts for only 11.9% of GDP, with a large proportion coming from palm oil revenues. Palm oil is the country’s main commodity and contributes 9% to the GDP. Agriculture employs nearly 11% of the labour force in Malaysia. ...........................................................................................................................................

There is a significant agricultural policy in place from 2013 onwards. It is the abolishment of the tax-free quota for 3.0mn tonnes of crude palm oil exports. This policy will allow Malaysian refiners to compete better against other lowercost refiners from abroad like Indonesia. The country is also moving to reduce our reliance on food and agricultural imports as can be seen from state-specific policy to increase livestock rearing and investments in genetically modified crops. The latter is due to produce results by 2018-2020. All these signifies the importance in of agriculture, a once main industry and economic activity of the country.

Agribusiness is more than land farming or rearing animals.

Many agribusinesses buy from or sell their products directly to farmers and many provide services to farmers to keep them in business. Starting any type of agribusiness needs researching so that the business can be profitable from start-up.

Develop a marketing plan that defines the business, identify potential markers and ways to reach customers. In this age of technology and speed, creating a website for the agribusiness is an added advantage.

• Globalisation and media, especially social media have exposed people to be familiar with different cultures and foods. As a result, there is varied demand for food of all ethnicity which can be easily found in mainstream supermarkets.

There is a considerable market potential for agribusiness in Malaysia in order to access the vast market, entrepreneurs must move with change, customising products according to market demands and adhere to global food safety, practices and environmental requirements.

AGRICULTURE UNDER THE NATIONAL KEY ECONOMIC AREA (NKEA) The Agriculture NKEA focuses on transforming the traditionally small-scale, production-based sector into a large scale agribusiness industry that can contribute to economic growth and sustainability. Transformation is based on an integrated and market-centric model that focuses on economies of scale and value chain integration.

Global food demand is expected to increase by 10% between 2010-2015 as compared to production and supply which will only increase by a mere 1.6%. Although taken on its own may spell good news for potential agribusiness, many factors are influencing changes in the demand for agriculture produce, mainly due to increased consumer affluence and response toward climate changes. Understanding these changing trends and consumption habits are vital in ensuring potential entrepreneurs in agribusiness can produce what the market needs and in turn, able to generate profit from the business.

The Agriculture NKEA also focuses on selected sub-sectors which have high-growth potential – aquaculture, seaweed farming, swiflet nests, herbal products, fruits and vegetables and premium processes food.

• Growing concern for health and food safety as consumers are looking for food that are low in fat, less sugar and free from harmful chemicals.

• Organic food is the ‘in’ thing.

• Demand for convenience as busier lifestyles and increased costs of eating out make ready-to-eat products popular.

• Concerns for environmental sustainability leads to retailers and producers having to adopt business or farming practices that minimize the negative impact on the environment.

Agribusinesses are being influenced by rapid changes in the competitive business environment. As a result, the challenge for agribusiness managers is to formulate strategies to accommodate these changes, such as the concept of supply chain management to assist in this process. SME

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The transformation strategy comprises 4 key themes:• Capitalising on competitive advantages • Tapping premium markets • Aligning food security objectives with increasing gross national income (GNI) • Participation in regional agriculture value chains

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>>>>>>>>Agribusiness • Funding, Support & Assistance for Agribusiness >>>>>>>>>>>>>>>>>>>>>>>

Funding, Support & Assistance

For Agribusiness Agriculture is a fundamental part of Malaysia. Agriculture supports not only the rural communities but many other businesses along the supply chain and related industries.

From small family-owned farms to large operated commercial farms through to businesses in agribusiness, support in many forms is important to ensure the viability and sustainabibilty of this industry. ...........................................................................................................................................

MINISTRY OF AGRICULTURE & AGRO BASED INDUSTRY (MOA)

Non Fiscal Incentives Incentives meant to motivate and change the direction from traditional farmer to commercial farmer and subsequently improve and develop the farming produce into agro food sector.

MOA provides both development funds and incentives for entrepreneurs and businesses involved in agribusiness.

LKIM Fisherman Fund An easy credit fund especially for fishermen to increase their income and catch productivity.

MAYBANK AGRO FUND SDN BHD The objective of Maybank Agro Fund is to invest in agriculture, aquaculture and bioterch based private businesses. The investment focus is to create and develop an ‘integrated agro’ concept that benefits not only large industry players but also creating a spill over effect for traditional farmers, breeders and fishermen.

• Integrated Fisheries • Integrated Liovestock Farming • Integrated Horticulture Crop Farming • Biotechnology & Food Technology

TechnoFund The TechnoFund scheme is for the development of new technology and enhancement of technology produced through R&D projects financed by the ScienceFund Scheme.

Fiscal Incentives They are investment incentives for agriculture and agriculture based industries.

• Deduction and exemption payment of income tax.

• Exemption of sales tax and duty.

Contact Details: Maybank Ventures Sdn Bhd Tel : 603 – 2032 2188 Fax : 603 – 2031 2188 Website : www.mayban-venture.com.my

MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (MIDA) Under the Promotion of Investments Act 1986, ‘company’ in relation to agriculture refers to:• Agro-based cooperatiove societies and associations • Sole proprietorships and partnerships engaged in agriculture

Contact Details: Malaysian Investment Development Authority (MIDA) Tel : 603 - 2267 3633 Fax : 603 - 2274 7970 Website : www.mida.gov.my

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White biotechnology is also known as industrial biotechnology as it is applied to industrial processes. For example, using micro-organisms and enzymes to produce chemical products.

New biotechnological methods and processes enable these products to be produced more efficiency and use fewer resources than conventional processes. One of the very first goals of white technology was in the production of biodegradable plastics.

In recent times, advances in the field of biotechnology are helping to prepare for and meet society’s pressing challenges such as:• Gene therapy, where genes are inserted into the cells of patients to replace defective genes with new, functional one. A fairly new approach in medicine but are progressing fast since the first clinical trial in 1990.

• Stem cells, unspecialised cells that can mature into different types of functional cells to replace diseased tissues with new, healthy ones. These can be cultured in a laboratory into the desired cell types which are them surgically implanted into patients.

• Nano medicine, manipulates molecules and structures on an atomic scale. For example, the use of nanoshells (metallic lenses) to convert infrared light into heat energy to destroy cancer cells.

• Other new drug delivery systems such as microscopic particles (microspheres) with holes barely large enough to dispense drugs to the targets. Microsphere therapies are now continuously being investigated and researched for the treatments of various types of cancers and diseases.

It is estimated that by 2020, biotechnology will employ up to 160,000 people, contribute up to 5% to the GDP and generate RM248 billion in revenues for Malaysia…

BIO-XCELL Bio-XCell, located in Nusajaya, is a custom built ecosystem for industrial and healthcare biotechnology, with a focus on manufacturing and research and development. It is developed

by Malaysian Bio-Xcell Sdn Bhd, a joint venture company between Malaysian Biotechnology Corporation and UEM Land Berhad in 2009.

Some of the common challenges and problems faced by biotech companies are:• Shortage of talents and expertise hinders progress as the quality and quantity, and availability of human capital are

Some of the significant R&D includes the assembly and annotation of the oil palm genome which was a collaboration between ACGT (a BioNexus company) and the J. Craig Venter Institute. An international team of researchers led by Universiti Sains Malaysia has also decoded the first draft genome of the rubber tree, empowering Malaysia to remain as the leader in rubber research and at the forefront of the global rubber industry.

crucial in the development of the biotechnology industry.

• The collaboration between Government, private sector and research institutions are still modest.

• A limited number of global companies to raise standards and create healthy competition.

• Large capital requirements hamper or hold-back entrepreneurs to invest in the biotechnology industry or biotechnology related sectors.

Another BioNexus company, GranuMaS, in collaboration with the International Islamic University Malaysia, has produced a bone graft substitute using calcium phosphate ceramics, which is an excellent alternative for the repair of bone defects. This product alleviates concerns over halal and ethical issues. Medical Biotherapy, also a BioNexus company, has developed larval therapy in wound healing.

Malaysia is one of the 17 mega-diverse countries identified by the United Nations Environment Programme (UNEP) as harbouring the majority of the earth’s species, which may have immense benefits for have immense benefits for the future generations – the country is well-endowed with natural resources in agriculture, forestry and minerals.

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NATIONAL BIOTECHNOLOGY POLICY

RELATED INFORMATION

The National Biotechnology Policy aims to build a conducive environment for research and development, and industry development through the leverage on the country’s existing areas of strength. Its goal is to position biotechnology as the new economic engine to enhance prosperity and wellness of the nation by 2020.

The SME Innovation Award, inaugurated in 2010, is a premier award to acknowledge the most innovative SMEs out of six sectors. One of the award categories is ‘Best Innovation in Biotechnology and Agro Technology’. The Award is developed to identify suitable and capable SMEs which are eligible to be placed in the Fast Track Programme/Green Lane Policy to shorten time-to-market through provision of ready access to capital risk, including for technology acquisition.

The SME Innovation Award provides a RM1 million for the top prize winner and RM200,000 for category winner.

There are nine thrusts:• • • • • • •

Thrust 1 – Agriculture Biotechnology Development Thrust 2 – Healthcare Biotechnology Development Thrust 3 – Industrial Biotechnology Development Thrust 4 – R&D and Technology Acquisition Thrust 5 – Human Capital Development Thrust 6 – Financial Infrastructure Development Thrust 7 – Legislative and Regulatory Framework Development • Thrust 8 – Strategic Positioning • Thrust 9 – Government Commitment

The BioInnovation Awards is held concurrently with the BioMalaysia & Bioeconomy Asia Pacific Conference and Exhibition. The Awards was created by the Malaysia Association of Research Scientists (MARS) and PROTEMP Exhibitions Sdn Bhd, an ISO 9001 certified exhibitions, conference and events management company. It is a recognition for the top inventions presented by universities, research institutes and prominent individual scientists. The Awards covers five categories – agriculture/agro-based industry, industrial research, medical research, healthcare and pharmaceutical, and waste to wealth.

We are currently in Phase 2 of the Policy, to be implemented throughout 2011-2015, with emphasis of turning science into business. The Phase 2 covers these areas:

(Source: Malaysian Biotechnology Corporation & Ministry of Energy, Green Technology and Water) SME

• Develop expertise in drug discovery and development based on natural resources • New products development • Technology acquisition • Intensify investment promotions • Intensify spinning-off companies • Strengthen branding • Develop capacity in technology licensing • Knowledge-intensive jobs creation

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>>>>>>>>Biotechnology • Supporting Biotechnology >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Supporting

Biotechnology Biotechnology is a crucial field towards the creation of a ‘sustainable economy’ for the country, especially through bioeconomy, which are all economic activities derived from the commercial applications of biotechnology. Support, assistance and of course, funding are all needed to propel biotechnology as a ‘game-changer’ and ‘trend-setter’ for future businesses. ...........................................................................................................................................

MALAYSIAN BIOTECHNOLOGY CORPORATION (BIOTECH CORP)

Bionexus BioNexus is a special status awarded to qualified local and international biotechnology companies and endow them with special fiscal incentives, grants and guarantees to assist their growth. The status is given to companies undertaking valueadded biotechnology and/or life sciences activities.

BioTechCorp is an agency under the purview of the Ministry of Science, Technology and Innovation (MOSTI). It is owned by the Minister of Finance Incorporated and the Federal Lands Commissioner. BioTech Corp is governed by the Biotechnology Council and advised by the Biotechnology International Advisory Panel, both chaired by the Prime Minister.

At present, there are 225 BioNexus Status Companies with a combined total revenue of RM3.5 billion…

Biotechnology Commercialisation Fund

BioTechCorp facilitates the development of BioNexus companies in Malaysia.

BioNexus companies receive continuous support and assistance from BioTechCorp on immigration related matters, IP advisory and regulatory services and employment related matters.

The Biotechnology Commercialisation Fund is a programme under the 10th Malaysian Plan to facilitate on-going commercialisation of biotechnology products and services and/or expansion of existing biotechnology business. It is managed by BioTechCorp as part of the overall incentives for BioNexusSstatus companies. The fund is a scheme combining term loan and grant.

BioTechCorp also provides capacity building programmes to assist biotechnology entrepreneurs in managing their business locally and internationally.

Contact Details: Malaysian Biotechnology Corporation Tel : 603 – 2116 5588 Fax : 603 – 2116 5411 Website : www.biotechcorp.com.my

GRANTS BY THE MINISTRY OF SCIENCE, TECHNOLOGY & INNOVATION (MOSTI) At present, MOSTI provides three grants schemes directly related to biotechnology towards developing commercially valuable innovations.

ScienceFund ScienceFund provides funding for research and development in applied sciences, with focus on high impact and innovative research than can lead to the innovation of products or processes. The research priorities areas cover a range of disciplines including life sciences, agriculture sciences, engineering and social science.

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TechnoFund

BIOTEK MALAYSIA

TechnoFund aims to fund technology development by Malaysian technology enterprises by supporting development up to pre-commercialisation and requires an established Proofof-Concept. The fund is ideal for start-up companies looking to acquire technology and preparing for commercialisation.

The quantum of funding for each project is between RM1.5 million to RM3 million depending on the merit of the proposal.

BIOTEK is the National Biotechnology Division in MOSTI, responsible for steering the national biotechnology agenda through these programmes:• Research and development in identified biotechnology areas and human capital with expertise in biotechnology and contributing to national development through k-economy. Activities include international collaboration, research funding, acquisition of technology platforms and, national and international networking.

InnoFund InnoFund funds the innovation of new or existing products. It is a small grant to encourage individuals and companies to find creative solutions and improvements to existing technologies, services or processes. InnoFund can be categorised into Enterprise InnoFund and Community InnoFund.

• Technology development programmes that encompass the use of natural bio-resources, new knowledge and technologies and new products and processes. BIOTEK manages and facilitates funding for those with the expertise to carry out research on platform technologies.

These also include joint researches between local and international institutions and training and development for cutting edge technologies.

Contact Details: Ministry of Science, Technology & Innovation Tel : 603 - 8885 8163/8820/8896/8754 Fax : 603 - 8889 2994 Website : www.mosti.gov.my

• Biotechnology awareness and promotion programmes to provide the latest information and discoveries of research to create awareness in the industry and public. Activities carried out are like organising and participating in conferences, seminars, expositions, forums and education programmes for rural areas and schools.

Contact Details: Ministry Of Science, Technology & Innovation Tel Fax E-mail Website

: 603 - 8885 8187 : 603 - 8881 0579 : info_biotek@mosti.gov.my : www.biotek.gov.my

NATIONAL INSTITUTES OF BIOTECHNOLOGY MALAYSIA (NIBM) In 2009, three interim laboratories were set up to provide research infrastructure for the 8th Malaysia Plan for National Biotechnology Agenda led by the Biotechnology Cooperative Centres. In 2005, these laboratories were inaugurated as National Biotechnologies Institutes to lead, coordinate and implement the national biotechnology agenda through research, development, innovation and commercialisation activities. In 2011, the three institutes were restructured and placed under an autonomous organisation called the National Institutes of Biotechnology Malaysia or NBIM.

Malaysia Agro-Biotechnology Institute (ABI) ABI, established in 2006, is located in the Malaysia Agricultural Research and Development Institute (MARDI)

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consisting of four building blocks – an administration block and three research centre blocks (plant biotechnology centre, animal biotechnology centre and food biotechnology centre).

ABI undertakes research development and commercialisation projects related to agro-biotechnology in cooperation with universities, research institutions and industry players.

Contact Details: Agro-Biotechnology Institute (ABI) Tel Fax

: 603 - 8949 5600 : 603 - 8938 1026

Malaysia Genome Institute (Genom Malaysia)

IPHARM also builds strategic partnerships with academic and industrial organisations to promote R&D and technology acquisition as well as human capital development. Among IPHARM’s current collaborative partners are:• Drugs for Neglected Diseases Initiative • Swiss Tropical Institute • Pan Asian Natural Products Drug Discovery Consortium

Genom Malaysia is a network-based non-profit organization undertaking basic and translational research aimed at generating new intellectual properties and technologies for economic development via large-scale collaborative projects in:• Comparative Genomics and Genetics • Structural and Synthetic Biology • Computational and Systems Biology • Metabolic Engineering

Contact Details: Malaysian Institute Of Pharmaceuticals & Nutraceuticals Tel : 604 - 652 1200 Fax : 604 - 656 3021 Website : www.ipharm.gov.my

Its core facilities are in genomics (microarray and DNA sequencing), protein expression and purification and proteomic laboratory.

Contact Details: Malaysian Genome Institute Tel Fax E-mail Website

: : : :

BIOECONOMY TRANSFORMATION PROGRAMME (BTP)

603 – 8926 7446 603 – 8926 7972 azira@genomemalaysia.gov.my www.genomemalaysia.gov.my

The Government provides the Bioeconomy Transformation Programme (BTP) as a platform for the private sector to channel and maximise commercial opportunities in biotechnology. The Government and leading industry players will work in tandem to set national goals for the applications of biotechnology in the areas of agriculture production, industrial manufacturing and human health.

Malaysia Institute Of Pharmaceuticals & Nutraceuticals (IPHARM) IPHARM is a multidisciplinary research institute focusing on drug discovery and development through high impact R&D activities and strategic alliances with world-class research institutions. IPAHRM’s aim is to develop new pharmaceutical and nutraceuticals with commercialisation potential.

• • • • • •

The BTP is also one of the implementation strategies under the Economic Transformation Programme (ETP) with a vision to develop Malaysia as a global high income status nation by 2020 by harnessing the potentials of bioeconomy. At the 7th Meeting of the Biotechnology International Advisory Panel 2013 in San Francisco, the Government has announced almost RM85 million for the BTP funds.

R&D priority areas undertaken by IPHARM are in:Assay Development Bioscreening Hits to Lead Lead Optimisation Bioprocess

(Source: Ministry of Science, Technology & Innovation, Malaysia Industrial Development Corporation & Malaysia Biotechnology Corporation) SME

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>>>>>>>>SPECIAL FOCUS • Budget 2014 - Highlights for SMEs >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Budget 2014

Highlights for SMEs The Honourable Prime Minister, Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak tabled the Budget 2014 on 25 October 2013. ...........................................................................................................................................

The following are highlights from Budget 2014 themed “Strengthening Economic Resilience, Accelerating Transformation and Fulfilling Promises”. The theme outlines five main thrusts:• Thrust 1 – Invigorating Economic Activity • Thrust 2 – Strengthening Fiscal Management • Thrust 3 – Inculcating Excellence in Human Capital • Thrust 4 – Intensifying Urban and Rural Development • Thrust 5 – Ensuring Well-Being of the Rakyat The 2014 Budget allocates a total of RM264.2 to implement programmes and projects – RM217.7 billion is for Operating Expenditure and RM46.5 billion for Development Expenditure.

Under Operating Expenditure:• RM63.6 billion is allocated for Emoluments • RM36.6 billion is allocated for Supplies and Services • RM114.5 billion is allocated for Fixed Charges and Grants • RM1.4 billion is allocated for the Purchase of Assets • RM1.5 billion is for Other Expenditure

• Export of goods expected to grow at 2.5%.

• Construction sector expected to grow at 9.6% and services at 5.7%.

• Unemployment rate is estimated at 3.1% while inflation rate remains lowest at 2% and 3%.

• The per capita income for 2014 is expected to reach RM34,126 which is 37% higher than the RM24,879 in 2009.

• The Federal Government fiscal deficit will further decline from 4% of GDP in 2013 to 3.5% in 2014.

• Private investment is expected to reach RM189 billion in oil and gas, textile, transportation and property, contributing 17.9% to GDP. • Public investment is expected to reach RM106 billion.

• The domestic economy is projected to grow at a stronger pace of 5 - 5.5%.

TAX Goods & Sales Tax (GST)

Under Development Expenditure:• RM29 billion is allocated to the economic sector • RM10.5 billion is allocated to the social sector for education and training, health, welfare, housing and community development • RM3.9 billion is allocated to the security sector • RM1.1 billion is allocated for general administration • RM2 billion for contingencies Brief facts at a glance:• The Federal Government’s revenue collection is estimated at RM224.1 billion in 2014 which is an increase of RM4 billion from 2013.

• The domestic economy is expected to expand between 4.5% and 5% for 2013.

• Growth supported by private investments increasing 16.2% to estimated RM165 billion • Nett foreign direct investment (FDI) was at RM18.2 billion in the first half of 2013 compared to RM15.9 billion during the same period in 2012.

• Private and public consumption expected to grow between 7.4% and 7.3% respectively, supported mainly by strong domestic economic activities.

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• The abolishment of the 10% sales tax and 6% service tax (SST) with effective from 1 April 2015. A sales and service tax (GST) of 6% shall be introduced to replace the SST. • Products and services exempted from GST: - basic food items such as rice, sugar, salt, flour, cooking oil, lentils, herbs and spices, salted fish, cencalok, budu and belacan

- piped water supply and the first 200 units of electricity per month for domestic consumers

- services by the Government such as issuance of passports, licences, health services and school education

- transportation services such as bus, train, LRT, taxi, ferry, boat, highway tolls, education and health services

- sale, purchase and rental of residential properties and selected financial services • A training grant of RM100 million is provided to businesses that send their employees for GST training in 2013 and 2014.

• Small and medium enterprises shall be provided financial assistance amounting to RM150 million for the purchase of accounting software in 2014 and 2015.

• Upon the implementation of GST in 2015, the Government will provide a one-off payment of RM300 cash assistance to households who are BR1M recipients, individual tax rates

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to be reduced by 1-3 percentage points for all taxpayers and a review of the individual income tax structure.

• The establishment of a GST Monitoring Committee to be chaired by Second Minister of Finance to ensure smooth implementation of GST

Corporate Tax • Corporate income tax to be reduced by 1% from 25% to 24% for taxable income above RM500,000 and 20% to 19% for taxable income between RM0 and RM500,000.

• The income tax rate for small and medium companies will be reduced by 1% from 20% to 19% from the year of assessment 2016 (tax earners in 2015).

• Tax deduction for companies investing to acquire technology platform in bio-based industry.

• Exemption on import duty on R&D equipment for companies investing in pilot plants for the purpose of precommercialisation in Malaysia.

• Difference in minimum wages paid by employers for 1 January 2014 to 31 December 2014 will be given further tax deduction.

• Secretarial fees and tax filing fees are allowed as tax deductions from year of assessment 2015.

• Costs of purchasing ICT equipment and software are given Accelerated Capital Allowance until year of assessment 2016.

Income Tax • A decrease in income tax rates across bands from assessment year 2015 onwards.

• The addition of two more tax bands, with two top earners now at RM100,001 – RM250,000 and RM250,001 – RM400,000.

• Employees in private and public sectors are now not required to submit tax forms (Borang BE) if they pay their taxes through the companies’ PCB/MTD deduction systems.

• A special tax relief of RM2,000 for taxpayers with a monthly income of up to RM8,000 received in 2013 (tax savings of up to RM480). This group is already enjoying tax savings up to RM475 on income received in 2013 with the reduction of tax rates announced in the last Budget.

• To facilitate taxpayers with employment income whose MTD have been made, these taxpayers are not required to submit tax returns if satisfied that their MTD is a final tax.

This takes effect from year assessment 2014.

DOING BUSINESS • The implementation of the 1Malaysia Entrepreneurs (1MeT) to give entrepreneurs exposures in business.

• A RM50 million fund is allocated under the Graduate Entrepreneurship Fund to provide soft loans of up to RM500,000 at an interest rate of 4% to encourage graduates to do business and reduce graduate unemployment.

• A National Entrepreneur Development Centre to be established to plan and coordinate all activities related to entrepreneurship.

• An allocation of RM50 million for Malaysian Global Innovation and Creativity Centre (MaGIC). Committed IMalaysia Entrepreneurs (1MeT) will be given further guidance at MaGIC. • The Government targets around 5,000 young entrepreneurs to be trained annually.

• Some incentive under the Green Lane Policy programme to be extended until 31 December 2017.

• An allocation of RM20 million for the Rural Business Challenge Programme.

• Expenses incurred by anchor companies, especially GLCs, are to given double tax deduction to enhance vendor development programmes.

• An allocation of RM50 million to be provided through Skim Pembiayaan Muda India (SPUMI) under TEKUN (Loans for Malaysian Indian entrepreneurs are also available through Amanah Ikhtiar Malaysia).

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SMEs • An allocation of RM120 million for an integrated package to increase innovation and productivity of SMEs which will provide financing for mechanisation automation and upgrading capacity of SMEs. • Assistance and incentives under the Green Lane Policy for financing, tax incentives and procurement including: - Subsidy on interest rate of 2% or a maximum of RM200,000 per year.

- Stamp duty exemption for loan agreements under the soft loan incentive scheme.

- Tax deduction on expenses incurred for obtaining 1-InnoCERT certification.

- Government procurement incentives encompassing approved manufacturers status company registration without site visit as well as bonus marks given in technical evaluation.

- Priority incentives to participate in procurement exercise

by Minister of Finance Incorporated Companies

- Incentives until 31 December 2017.

• To encourage compliance with the Minimum Wage Policy and to reduce the financial impact to SME employers, co-operatives, societies and associations, the difference in the wages paid by employers for the period of 1 January 2014 to 31 December 2014 will be given further tax deduction.

• An allocation of RM100 million for the establishment of a Night Market Traders Entrepreneur Scheme under Bank Simpanan Nasional. The soft loans will carry a 4% interest rate, with maximum loans of up to RM30,000. The facility is to cover business costs such as revolving capital, site rental, raw materials and business equipment.

• The setting up of the Bumiputera Start-Up Scheme (SUPERB) with a RM30 million initial fund.

• Soft loan facilities for SMEs from Amanah Ikhtiar Malaysia (RM300 million fund) and TEKUN (RM700 million fund).

ENVIRONMENT BUMIPUTERA

• Investment tax allowance for companies that purchase green technology equipment and income tax exemption on the use of green technology services and systems.

• To encourage a greener lifestyle, the Malaysian Green Foundation will be established to promote and enhance the usage of green technology by the corporate sector and general public. A launching grant of RM15 million will be provided for the Foundation.

• To establish a SRI Fund (Social Responsible Investment) to be invested in listed companies • The setting up of the National Conservation Trust Fund, Environmental, Social and Governance Index (ESG) and National Carbon Reporting Programme (MyCarbon).

• Valuecap to allocate RM1 billion to invest in companies that score high on the Environment, Social and Governance Index (ESG).

• An allocation of RM40 million to widen and deepen Sungai Bertam.

• Bumiputera equity holdings and property ownerships to be increased through the Skim Jejak Jaya Bumiputera, Skim Amanah Saham Bumiputera 2 and strengthening of Bumiputera real estate institutions.

• SME Bank to establish a Bumiputera Equity Fund (Equibumi) with an allocation of RM300 million to provide loans to credible Bumiputera companies to take over listed companies or companies with potential to be listed on Bursa Malaysia.

• A RM200 million loan facility by SME Bank for development programmes for Malay Reserve Lands in strategic areas such as Kampung Baru, Kampung Pandan and Kampung Datuk Keramat.

• Aware that the Bumiputera minority particularly in Sabah and Sarawak face challenges in owning customary land, the Government will allocate RM50 million for land surveying and customary land ownership verification.

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<SPECIAL FOCUS • Budget 2014 - Highlights for SMEs <<<<<<< 137

SME MALAYSIA 2014

AGRICULTURE • To allocate RM243 million for rubber, palm oil and cocoa replanting and forest plantation programmes.

• Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.

• An allocation of RM6 billion for the implementation of high value-added and commercially viable agriculture programmes.

• The establishment of a Food and Agro Council for Export (FACE) to be chaired by the Minister of Agriculture and Agro-based Industry. The Council will act as a facilitator to increase exports of local agriculture produce.

• To ensure fair prices of food products by opening an additional 60 farmers’ markets, 50 fish markets, 50 agriculture caravans and 100 fresh fruit stalls nationwide to be undertaken by FAMA and LKIM. • An allocation of RM2.4 billion for subsidies and incentives including subsidies for fertilisers, seeds, price of paddy and rice as well as incentives for higher production of paddy and fish landing.

• An allocation of RM634 million under the National Key Economic Area for high demand produce such as paddy and fish cage farming, seaweed and birds’ nest, highvalue herbs, vegetables and fruits for the export market.

• To implement a lobster rearing project at Semporna, Sabah in collaboration with a multinational company to produce 18,000 metric tonnes yearly which will create 20,000 jobs.

• To promote the development of bioeconomy, the following R&D incentives for viable projects will be provided to be assessed by BiotechCorp: - tax deduction for companies that invest to acquire technology platform in bio-based industry.

- exemption on import duty on R&D equipment for

companies that invest in pilot plants for the purpose of pre-commercialisation in Malaysia.

- special incentive to companies to partially cover the operational costs for human capital development for Centre of Excellence for R&D. - Incentives are applicable for applications received by Biotech Corp from 1 January 2014 to 31 December 2018.

HUMAN RESOURCE & TRAINING • A provision of RM400 million from the Human Resource Development Fund for upskilling and reskilling programmes of employees of registered companies, to train apprentices and future workers.

• The establishment of an Integrity Management Unit in each ministry to enhance integrity with officers form the Malaysian Anti-Corruption Commission to be represented in the unit.

• The implementation of a single tier for the Malaysian Skills Certificate course levels 1 – 3 for six months in all Industrial Training Institutes under the purview of the Manpower Department (JTM).

• To upgrade and replace equipment at JTM training institutes with the latest technology involving an allocation of RM178 million • An allocation of RM330 million to the Skills Development Fund under the Ministry of Human Resource. The fund will provide loans for SPM leavers to enrol in skills training courses.

• An allocation of RM200 million to upgrade and implement a two-shift approach at the National Youth Skills (IKBN). Among areas identified include automotive, marine maintenance, welding and electrical wiring.

(Source: Prime Minister’s Office & Ministry of Finance)

SME

>>>>>>>>SPECIAL FOCUS • Budget 2014 - Highlights for SMEs >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 138

SME MALAYSIA 2014

>>>>>>>>OVERVIEW OF SMES IN MALAYSIA • SME Masterplan >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

PRODUCTS & SERVICES SECTION

This section includes: • advertisements of SMEs and products & services providers.

• catalogues over 100 companies segregrated by industry groups

DISCLAIMER: Every effort has been made to ensure that all information contained within is current at the time of printing. However, changes to the information may have occurred since going to press.

While every care is taken in the preparation of this publication, Tourism Publications Corporation Sdn Bhd (TPCSB) shall not be held responsible for any inaccuracies, cancellations or omissions that may occur.

Readers are advised to enquire from the relevant sources, should they wish to rely on any information contained herein. The publisher shall not be liable for any damages suffered (including direct, indirect, consequential, special, incidental and exemplary) as a result of any inaccuracies in the information.

139

Products & Services Listings Abrasives Kovax (Malaysia) Sdn Bhd

PLO 415 Jalan Emas 2 Kawasan Perindustrian Pasir Gudang Pasir Gudang 81700 Johor Malaysia Tel: 607 251 0525 Fax: 607 251 0527

Practical System Sdn Bhd

15 & 17 Jalan Sri Wangi 1/1 Kawasan Perindustrian Desa Plentong Masai 81750 Johor Malaysia Tel: 607 388 5593 Fax: 607 388 4594

Zirco-Blast Sdn Bhd

Lot 4703 Kawasan MIEL Batang Kali 44300 Selangor Malaysia Tel: 603 6057 9691 Fax: 603 6057 9694

Accountancy Body GDC Corporate Services Sdn Bhd

5A Jalan 16/155C Bandar Bukit Jalil Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 8994 0733 Fax: 603 8994 0732

LB Management Services

37-01-1 Lorong Batu Nilam 3A Bandar Bukit Tinggi Klang 41200 Selangor Malaysia Tel: 603 3325 7692

Steven Lim & Associates

Level 1-3 No 33 Jalan 4/93 Taman Miharja Cheras Kuala Lumpur 55200 Wilayah Persekutuan Malaysia Tel: 603 9282 8688 Fax: 603 9282 6118

The Chartered Institute of Accountants, Malaysia Division

Lots 1.03b & 1.05 Level 1 KPMG Tower 8 First Avenue Bandar Utama Petaling Jaya 47800 Selangor Malaysia Tel: 603 7723 0230 Fax: 603 7723 0231

YL Chee & Co

12A-2 Jalan PJU 8/5C Perdana Business Centre Damansara Perdana Petaling Jaya 47820 Selangor Malaysia Tel: 603 7729 2731 Fax: 603 7726 3422

Accountants &/Or Auditors Adrian Yeo & Co

63A-C Jln SS25/2 47301 Taman Bukit Emas Petaling Jaya 47400 Selangor Malaysia Tel: 603 7806 5555 Fax: 603 7806 3500

CK Koh Management Services

12 (1st Floor) Jalan Delima 8 Taman Gunung Emas Labis 85300 Johor Malaysia Tel: 607 925 2388 Fax: 607 925 2378

Crowe Horwath AF 1018

Chung Keu Marketing Sdn Bhd

Chartered Accountants KL Ofc Lvl16 Tower C Megan Avenue II 12 Jalan Yap Kwan Seng 50450 Kuala Lumpur Malaysia Tel: 603-2788 9999 Fax: 603-2788 9998 Email: info@crowehorwath.com.my URL: www.crowehorwath.com.my Managing Partner / Tax Partner: Mr Poon Yew Hoe Partner: Mdm Mok Wai Ling Business: Crowe Horwath AF 1018 is the 5th largest accounting firm in Malaysia and a member of Crowe Horwath International which is a top 10 global accounting network. The firm in Malaysia is represented in 12 locations, employs over 830 staff, serves mid-to-large companies that are privately-owned, publicly-listed and multinational entities, and is registered with the Audit Oversight Board in Malaysia and the Public Company Accounting Oversight Board in US. Globally, Crowe Horwath International has 167 member firms covering 650 offices in 109 countries around the world. Crowe Horwath taps on its global resources and strategic competencies in audit, tax and advisory to become the leading firm of choice for fast growing businesses looking for high quality, a market driven approach and personalised service. Our core competencies include Audit (Statutory, Due Diligence, Reporting Accountants), Tax (Compliance and Advisory), Corporate Advisory (Transactions Support, Mergers & Acquisitions, Valuation Services, Corporate Recovery Services, Insolvency Services) and Risk Advisory (Internal Audit, Corporate Governance Advisory, Technology Risk Services, Fraud Investigation and Forensic Accounting Services). Crowe Horwath Offices in Malaysia: Kuala Lumpur, Klang, Penang, Johor Bahru, Melaka, Muar, Kuching, Sibu, Bintulu, Miri, Kota Kinabalu, Labuan.

Hero Ventures Sdn Bhd

No 40-2 Jalan 14/48A Sentul Raya Kuala Lumpur 51000 Wilayah Persekutuan Malaysia Tel: 603 4041 0000 Fax: 603 4042 0723

Synergy Corporate Avenue

Suite 33-01 33rd Floor Menara Keck Seng 203 Jalan Bukit Bintang Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 2149 9390 Fax: 603 2116 5999

Adhesives & Glues Amerseal Industrial Sdn Bhd

2A Jalan IM3/6 Kawasan Perindustrian IM3 Bandar Indera Mahkota Kuantan 25200 Pahang Malaysia Tel: 609 572 1063 Fax: 609 572 1066

Central Industrial Corporation Bhd

Lot 77 & 78 Persiaran 11 Kawasan Prusahaan Bakar Arang Sungai Petani 08000 Kedah Malaysia Tel: 604 422 7888 Fax: 604 421 7888

SME MALAYSIA

Wisma Chung Keu No 1 Jalan Selangat Taman Pertama Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9285 1298 Fax: 603 9285 1268

Dardanchem Sdn Bhd

20 Jalan Sementa 27/91 Section 27 Shah Alam 40000 Selangor Malaysia Tel: 603 5191 2311 Fax: 603 5191 2149

GRP Sdn Bhd

Lot 1569 Jalan Kusta Kawasan Perindustrian Kampung Jaya Sungai Buloh 47000 Selangor Malaysia Tel: 603 3176 5146 Fax: 603 3176 5150

Hardex Corporation Sdn Bhd

2B Jalan IM3/6 Kawasan Perindustrian IM3 Bandar Indera Mahkota Kuantan 25200 Pahang Malaysia Tel: 609 572 1060 Fax: 609 572 1062

J.C Industrial Marketing Sdn Bhd

Advertising Agencies & Counsellors Addaudio Post Sdn Bhd

11 Jalan 17/56 Petaling Jaya 46400 Selangor Malaysia Tel: 603 7956 0600 Fax: 603 7956 9581

Adrenaline Communications Sdn Bhd D-10-09 Block D Casa Suites Damansara Intan No 1 Jalan SS20/27 Peataling Jaya 47400 Selangor Malaysia Tel: 603 7725 7245 Fax: 603 7725 7246

Adwizard Sdn Bhd

Suite 3.3 3rd Floor Wisma TCL No.470 Batu 3 Jalan Ipoh Kuala Lumpur 51200 Wilayah Persekutuan Malaysia Tel: 603 4045 8971 Fax: 603 4045 8975

AQM Creative & Communication Sdn Bhd

9A Jalan Chung Ah Meng Ipoh 31650 Perak Malaysia Tel: 605 242 3367 Fax: 605 255 6480

332 & 334 Jalan Midah Besar Taman Midah Cheras Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 9179 5100 Fax: 603 9179 5101

PS Global Enterprise

ARC Worldwide Sdn Bhd

21 Jalan TBK 1/4 Taman Bukit Kinrara Puchong 47100 Selangor Malaysia Tel: 603 8070 1069 Fax: 603 8070 5516

Rovski Sdn Bhd

Lot 561 Jalan Persiaran Subang 3 Subang Jaya Industry Park Subang Jaya 47610 Selangor Malaysia Tel: 603 5633 2908 Fax: 603 5634 1186

Rovski Technology Sdn Bhd

Lot 561 Jalan Subang 3 Subang Jaya Industry Park Subang Jaya 47610 Selangor Malaysia Tel: 603 5633 2908 Fax: 603 5634 1186

Saiyakaya (M) Sdn Bhd

7 Jalan 11 Taman Kepong Kuala Lumpur 52100 Wilayah Persekutuan Malaysia Tel: 603 6272 1668 Fax: 603 6272 1696

Tesa Tape (M) Sdn Bhd

Level 5 Menara Olympia 8 Jalan Raja Chulan Kuala Lumpur 50200 Wilayah Persekutuan Malaysia Tel: 603 2031 0998 Fax: 603 2031 0995

Artscript Sdn Bhd

18 Lorong 6C/91 Taman Shamelin Perkasa Off Jalan Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9285 9333 Fax: 603 9282 7377

Arturn Advertising (M) Sdn Bhd

38-3 Jalan Radin Anum Bandar Baru Sri Petaling Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 9057 9018 Fax: 603 9058 7564

Asatsu-DK (M) Sdn Bhd

Level 18 Menara Merais 1 Jalan 19/3 Petaling Jaya 46300 Selangor Malaysia Tel: 603 7954 0388 Fax: 603 7954 0266

49 Jalan P10/21 Taman Industri Selaman Seksyen 10 Bandar Baru Bangi Bangi 43650 Selangor Malaysia Tel: 603 8927 3010 Fax: 603 8927 3028

ASPATI Advertising Sdn Bhd

Wilron Products Sdn Bhd

B & B Advertising

5 Jalan Pelabur 23/1 Section 23 Shah Alam 40300 Selangor Malaysia Tel: 603 5541 0612 Fax: 603 5541 0132

Yureka Sdn Bhd

16 Jalan Jalak 2 Taman Seri Bahtera Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9131 9055 Fax: 603 9131 9056

140

3E Jalan Morib 28/6 Taman Alam Megah Shah Alam 40400 Selangor Malaysia Tel: 603 5192 5010 Fax: 603 5192 5011

3A-15 Block A Level 4 Kelana Centre Point 3 Jalan SS7/19 Petaling Jaya 47301 Selangor Malaysia Tel: 603 7804 8382 Fax: 603 7804 8362

Baron Advertising Sdn Bhd

Damai Complex 32 Jalan Lumut Kuala Lumpur 50400 Wilayah Persekutuan Malaysia Tel: 603 4042 8085 Fax: 603 4041 5898

Products & Services Listings Tourism Publications Corporation Sdn Bhd

Wizart Sdn Bhd

Unit 711 Level 7 Block A Damansara Intan 1 Jalan SS20/27 Petaling Jaya 47400 Selangor Malaysia Tel: 603 7710 3268 Fax: 603 7118 3301

Unit 6.02 Level 6 Menara Maxisegar Jalan Pandan Indah 4/2 Pandan Indah Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 4292 8251 Fax: 603 4292 6251 Email: enquiry@integratedinfo.com.my URL: www.integratedinfo.com.my Business: Tourism Publications Corporation Sdn Bhd, a publisher of tourism and corporate magazines, directories, and maps that focuses on businesses in Malaysia and Singapore for both online and print advertisements.

World Communications Network Resources (M) Sdn Bhd

Tourism Publications Corporation Sdn Bhd

6.02 Level 6 Jalan Pandan Indah 4/2 Menara Maxisegar Pandan Indah Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 4292 8251 Fax: 603 4292 6251 Email: enquiry@integratedinfo.com.my URL: www.integratedinfo.com.my Business: Tourism Publications Corporation Sdn Bhd, a publisher of tourism and corporate magazines, directories, and maps that focuses on businesses in Malaysia and Singapore for both online and print advertisements. _________________________

A-3-6 Megan Avenue 1 189 Jalan Tun Razak Kuala Lumpur 50400 Wilayah Persekutuan Malaysia Tel: 603 2166 3661 Fax: 603 2166 4661

WPP Marketing Communications (M) Sdn Bhd-Mindshare Level 10 Menara Milenium 8 Jalan Damanlela Damansara Heights Kuala Lumpur 50490 Wilayah Persekutuan Malaysia Tel: 603 2718 8688 Fax: 603 2711 1615

Xuan Works Sdn Bhd

28 Jalan Mahir Taman Connaught Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 9102 6008 Fax: 603 9102 6007

Advertising - Directory & Guide

Uberfusion Sdn Bhd

11-G Ground Floor Block A Zenith Corporate Park Petaling Jaya 47301 Selangor Malaysia Tel: 603 7880 6580 Fax: 603 7880 6590

Uptown Communications Sdn Bhd

Unit 212 2nd Floor Damansara Intan Block C 1 Jalan SS20/27 Petaling Jaya 47400 Selangor Malaysia Tel: 603 7118 8833 Fax: 603 7118 2533

Virus Communications Sdn Bhd

Unit 107 1st Floor Damansara Intan Block C 1 Jalan SS20/27 Damansara Utama Petaling Jaya 47410 Selangor Malaysia Tel: 603 7118 2080 Fax: 603 7118 2090

Wellad Communications Sdn Bhd

C303 3rd Floor Block C Kelana Square 17 Jalan SS7/26 Petaling Jaya 47301 Selangor Malaysia Tel: 603 7804 5122 Fax: 603 7804 5177

Agricultural Equipment & Supplies

Elite Scientific Instruments Sdn Bhd

No 69 KM 1 Jalan Silam Taman Hing Nam Lahad Datu 91100 Sabah Malaysia Tel: 6089 88 4191 Fax: 6089 88 1426

7 Jalan Nilam 1/8 Taman Perindustrian Teknologi Tinggi Shah Alam 40000 Selangor Malaysia Tel: 603 5637 1367 Fax: 603 5637 1373

Halex (M) Sdn Bhd

9 Jalan Taruka Tampoi Industry Estate Johor Bahru 81200 Johor Malaysia Tel: 607 237 1543 Fax: 607 237 0276

Hien Huat Seeds (SABAH) Sdn Bhd Lot 11 Megah Light Indst Estate Jalan Labuk Sandakan 90000 Sabah Malaysia Tel: 6089 66 7889 Fax: 6089 66 6889

Madu Kota Entreprise

Lot 10-2 2nd Floor Lintas Square Block E Jalan Lintas Kota Kinabalu 88300 Sabah Malaysia Tel: 6088 24 7587 Fax: 6088 23 4520

Stopest (M) Sdn Bhd

No 10 Jalan Mega 7 Taman Mega Jaya Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 4292 2227 Fax: 603 4292 6914

Syarikat Jun Chong Sdn Bhd Always your guide of choice

5-1 & 7-1 1st Floor Jalan Radin Anum Sri Petaling Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 9051 2288 Fax: 603 9051 2200

Agro Chem Supplies (LD) Sdn Bhd

1/2km Jalan Sungai Buloh/Subang Sungai Buloh 47000 Selangor Malaysia Tel: 603 6156 1152 Fax: 603 6156 1206

Gremont Agrochem (M) Sdn Bhd

6.02 Level 6 Jalan Pandan Indah 4/2 Menara Maxisegar Pandan Indah Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 4292 8251 Fax: 603 4292 6251 Email: enquiry@integratedinfo.com.my URL: www.integratedinfo.com.my Business: Integrated Information Sdn Bhd has been providing effective publications and related advertising services to businesses in Malaysia and Singapore both online and in print. _________________________

Zeenex (M) Sdn Bhd

CCM Fertilizers Sdn Bhd

16 Jalan Mutiara Emas 7/10 Kawasan Perindustrian Ringan Taman Mount Austin Johor Bahru 81100 Johor Malaysia Tel: 607 352 5192 Fax: 607 352 5193

Integrated Information Sdn Bhd

No 4 Jalan TSB 10 Taman Industri Sungai Buloh Sungai Buloh 47000 Selangor Malaysia Tel: 603 6157 3040 Fax: 603 6156 9016

Advanced Agriecological Research Sdn Bhd

Brightonmax Sdn Bhd

Trapper Media Services (M) Sdn Bhd

3A-22 & 3A-22A Perdana Business Centre Jalan PJU 8/3 Damansara Perdana Petaling Jaya 47820 Selangor Malaysia Tel: 603 7728 5089 Fax: 603 7728 5067

Agricultural Chemicals

Wastech Engineering Sdn Bhd

18 Jalan Lambak Kluang 86000 Johor Malaysia Tel: 607 772 5188 Fax: 607 772 4490

143

Lot 200 Pesiaran Selangor Shah Alam 40000 Selangor Malaysia Tel: 603 5163 2288 Fax: 603 5543 2988

B-LG-06 Block B Serdang Perdana Selatan Seri Kembangan 43300 Selangor Malaysia Tel: 603 8945 6100 Fax: 603 8945 7100

Epsilon International Sdn Bhd

Lot 5271 Jalan Prusahaan 3 Kamunting Industrial Area Kamunting 34600 Perak Malaysia Tel: 605 891 3158 Fax: 605 891 1266

ESI Sdn Bhd

B-LG-06 Block B Section 1 Serdang Perdana Selatan Seri Kembangan 43300 Selangor Malaysia Tel: 603 8945 6100 Fax: 603 8945 7100

Fijiliam Enterprise Sdn Bhd

100 & 101 Taman A S T Jalan Sungai Ujong Seremban 70200 Negeri Sembilan Malaysia Tel: 606 763 6666 Fax: 606 763 3036

Lian Giap & Co (Hardware) Sdn Bhd Blok 98 Jalan 4 Off Jalan Chan Sow Lin Kuala Lumpur 55200 Wilayah Persekutuan Malaysia Tel: 603 9221 4604 Fax: 603 9221 8710

Modipalm Engineering Sdn Bhd

Lot 4 Jalan Waja 15 Kawasan Prusahaan Telok Panglima Garang Telok Panglima Garang 42500 Selangor Malaysia Tel: 603 3122 8899 Fax: 603 3122 9152

Mycrop Sdn Bhd

36 Laluan Perindustrian Silibin 2 Off Jalan Jelapang Ipoh 30020 Perak Malaysia Tel: 605 528 5281 Fax: 605 528 4281

Teratai Way Sdn Bhd

PT 6234/1A Jalan Bunga Raya Sungai Besar 45300 Selangor Malaysia Tel: 603 3224 2828

Products & Services Listings Ara Borgstena Sdn Bhd

Henikwon Corporation Sdn Bhd

Arise Automation (M) Sdn Bhd

IAM Control Engineering Sdn Bhd

Lot 100 Batu 15 3/4 (Km 26) Jalan Klang Banting Jenjarom Kuala Langat 42600 Selangor Malaysia Tel: 603 3191 6068 Fax: 603 3191 6066

11 Jalan TS 6/4 Subang Industry Estate Petaling Jaya 47510 Selangor Malaysia Tel: 603 5634 3488 Fax: 603 5637 3488

Auto Antenna Manufacturer Sdn Bhd 33 Jalan Sungai Rasau Section 16 Shah Alam 40200 Selangor Malaysia Tel: 603 5512 3388 Fax: 603 5512 2680

Lot 16 Jalan Teknologi Selangor Science Park 1 Kota Damansara Petaling Jaya 47810 Selangor Malaysia Tel: 603 6140 8000 Fax: 603 6140 8508

Lot 7 Jalan Teluk Gadung 27/93 Section 27 Shah Alam 40460 Selangor Malaysia Tel: 603 5525 1665 Fax: 603 5525 3937

12 Jalan Sena 14 Taman Rinting Masai 81750 Johor Malaysia Tel: 607 387 2950 Fax: 607 387 3190

6 Jalan Rajawali 1A Bandar Puchong Jaya Industrial Park 13 Kilometer Jalan Puchong 47100 Selangor Malaysia Tel: 603 8075 6500 Fax: 603 8075 6505

7 Jalan Desa 5/2 Taman Desa Kluang 86000 Johor Malaysia Tel: 607 774 3327 Fax: 607 774 3329

Tan Lan Holdings (M) Sdn Bhd Meier-Tech Sdn Bhd

100-1 Jalan PJU 1/3B Sunway Mas Commercial Centre Petaling Jaya 47301 Selangor Malaysia Tel: 603 7880 6120 Fax: 603 7880 7310

Lot 1446 No 232 Mukim 9 Jalan Bagan Ajam Butterworth 13000 Pulau Pinang Malaysia Tel: 604 333 1601 Fax: 604 332 4987

Avialite Sdn Bhd

21 Jalan PBS 14/3 Taman Perindustrian Bukit Serdang Seri Kembangan 43300 Selangor Malaysia Tel: 603 8941 4227 Fax: 603 8941 5227

Lot 110 Jalan Tampin Kawasan Perindustrian Ringan Sri Senawang Seremban 70450 Negeri Sembilan Malaysia Tel: 606 679 6122 Fax: 606 679 5472

Enge Plas Automation Sdn Bhd

24 Jalan Lombong Emas 7 Seremban Light Industrial Park Seremban 70200 Negeri Sembilan Malaysia Tel: 606 761 2333 Fax: 606 761 4133

Ganda Maju Industries (M) Sdn Bhd

PT 38870 Jalan Hala Perusahaan Menglembu Kawasan Perindustrian Menglembu Ipoh 31450 Perak Malaysia Tel: 605 281 6255 Fax: 605 281 3255

12 Lot 2562 Jalan Haji Abdul Karim 341 KS02 Taman Perindustrian Sungai Jati Klang 41200 Selangor Malaysia Tel: 603 3323 0689 Fax: 603 3323 0691

Up-Packing Sdn Bhd O E Manufacturing Sdn Bhd

33 Jalan Sungai Rasau Section 16 Shah Alam 40200 Selangor Malaysia Tel: 603 5512 3366 Fax: 603 5512 6633

Cooltec Industries Sdn Bhd

45 Jalan Sesama Taman Perusahaan Ringan Batu Caves 68100 Selangor Malaysia Tel: 603 6186 9969 Fax: 603 6186 6086

Lot 3528 Jalan 1/2 Bukit Rawang Jaya Rawang 48000 Selangor Malaysia Tel: 603 6092 4848 Fax: 603 6092 7878

Ultimate Status Sdn Bhd Myrex Dynamic Industrial Automation

Azman Hamzah Plastik Sdn Bhd

10 Jalan Bursa 23/4 Shah Alam 40300 Selangor Malaysia Tel: 603 5542 5413 Fax: 603 5542 1968

Lot 80 Jalan Degong Kampar 31900 Perak Malaysia Tel: 605 466 1560 Fax: 605 466 3450

Tractor-Line Industries Sdn Bhd MKP Auto Parts Sdn Bhd

483 Kawasan Industrial Sungai Siput 31100 Perak Malaysia Tel: 605 598 1006 Fax: 605 598 4931

UWC Holdings Sdn Bhd Oriental Summit Industries (Manufacturing) Sdn Bhd

Lot No 2 Bandar Proton Behrang Stesen Tanjung Malim 35900 Perak Malaysia Tel: 605 458 5623 Fax: 605 458 5250

Ozonetech (M) Sdn Bhd

12A Batu 9 1/2 Jalan Megah 23 Cheras 43200 Selangor Malaysia Tel: 603 9080 4839 Fax: 603 9080 4764

Prestar Precision Tube Sdn Bhd Lot 1298 Jalan Ipoh Batu 16 1/2 Rawang Industry Estate Rawang 48000 Selangor Malaysia Tel: 603 6090 2776 Fax: 603 6092 4507

YAC Auto (M) Sdn Bhd

75 76 77 Jalan Sri Ehsan 4 Taman Sri Ehsan Kepong Kuala Lumpur 52000 Wilayah Persekutuan Malaysia Tel: 603 6272 9933 Fax: 603 6272 3932

797 Jalan Perindustrian Bukit Minyak 7 Mukim 13 Kawasan Industrial Bukit Minyak Bukit Mertajam Seberang Perai Tengah 14000 Pulau Pinang Malaysia Tel: 604 507 8086 Fax: 604 507 9298

Value-Added Industries (M) Sdn Bhd

Lot 16434 Jalan 4 Taman Perindustrian Selayang Batu Caves 68100 Selangor Malaysia Tel: 603 6120 1133 Fax: 603 6120 6672

VIPA Sdn Bhd

Automotives - Repairs & Servicing Angkatan Hebat Sdn Bhd

Sze Chuan Sdn Bhd

Mei Auto Accessory Industries Sdn Bhd

Automotive Industries Sdn Bhd

Lot 9 Jalan Puchong Lion Industry Park Section 22 Shah Alam 40300 Selangor Malaysia Tel: 603 5191 8487 Fax: 603 5192 5337

No 7911 Jalan Selat Selatan 23 Pandamaran Port Klang 42000 Selangor Malaysia Tel: 603 3168 5489 Fax: 603 3168 9720

Rotork Actuation Sdn Bhd

Auto Tech Car Servicing

72 Jalan 1/76D Desa Pandan Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 9287 9818 Fax: 603 9287 9818

Rigida (Malaysia) Sdn Bhd

D-2-56 IOI Boulevard Jalan Kenari 5 Bandar Puchong Jaya Puchong 47100 Selangor Malaysia Tel: 603 8076 5571 Fax: 603 8076 5491

8th Floor Bang BSN Jalan Kemajuan Karamunsing Kota Kinabalu 88000 Sabah Malaysia Tel: 6088 26 6663 Fax: 6088 26 6686

Jecmetal Industries Sdn Bhd

K96 Kawasan Perindustrian Tanjung Agas Muar 84000 Johor Malaysia Tel: 606 951 3369 Fax: 606 952 6818

Kumpulan Jebco (M) Sdn Bhd

Lot 1569 Jalan Kusta Kawasan Perindustrian Kampung Jaya Sungai Buloh 47000 Selangor Malaysia Tel: 603 6157 8282 Fax: 603 6157 0702

N.S. Auto Parts Industries Sdn Bhd

(15969-H) Lot 64 Senawang Industrial Estate 70450 Seremban Negeri Sembilan Malaysia Tel: 606-677 0926 Fax: 606-677 1516 Email: general@nsautoparts.com URL: www.nsautoparts.com Managing Director: Mr Ong Yoke Choon General Manager: Mr Ong Guan Beng Business: Manufacturers & Suppliers of Pistons and Cylinder Liners for Internal Combustion Engines: Heavy, Medium & Light Commercial Vehicles, Passenger Vehicles & Pickups, Motorcycles.

Paduan Moden Manufacturing Sdn Bhd

140 Taman Perindustrian Bahau Bahau 72100 Negeri Sembilan Malaysia Tel: 606 454 6519 Fax: 606 454 9616

Power Plus Technical & Engineering

No 6 Jalan Velox 2 Taman Velox Rawang 48000 Selangor Malaysia Tel: 603 6092 2468 Fax: 603 6092 2469

The answer to all your convention and exhibition needs.

For more information:

Tourism Publications Corporation Sdn Bhd (182603-D) Tel: +603-4292 8251 Fax: +603-4292 6251 Email: enquiry@integratedinfo.com.my

146

Products & Services Listings Super Tune Auto Service Sdn Bhd

16 Jalan SS3/41 Petaling Jaya 47300 Selangor Malaysia Tel: 603 7876 6680 Fax: 603 7876 6681

TS Automation Sdn Bhd

PT 1626 Kawasan Perindustrian Krubong Mukim Krubong 75250 Melaka Malaysia Tel: 606 336 3518 Fax: 606 334 4008

Bakers’ Equipment C & N United Corporation Sdn Bhd 38 Jalan Bagan Nira 26/8 Seksyen 26 Shah Alam 40000 Selangor Malaysia Tel: 603 5192 3922 Fax: 603 5192 8722

KBP Multiprocess Machinery Sdn Bhd 67 Jalan P10/21 Seksyen 10 Bandar Baru Bangi 43650 Selangor Malaysia Tel: 603 8922 3222 Fax: 603 8925 1800

Lian Huat Machinery Sdn Bhd

Lot 1921 Jalan Batu Putih 56 Kampung Peserai Kecil Mukim 3 Simpang Lima Batu Pahat 83020 Johor Malaysia Tel: 607 413 8300 Fax: 607 413 7600

Murni Bakery Equipments Sdn Bhd

No 35 & 37 Jalan Mega B1 Taman Industry Mega Off Bandar Technolgy Kajang Semenyih 43500 Selangor Malaysia Tel: 603 8723 0945 Fax: 603 8727 1255

Songein Sales & Services

No 47-1 Jalan 10/91 Taman Shamelin Perkasa Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9200 1229 Fax: 603 9200 4922

Ben Fortune Pastry Manufacturing (M) Sdn Bhd

19 1st Floor Jalan USJ 10/1E Subang Jaya Petaling Jaya 47610 Selangor Malaysia Tel: 603 5633 3688 Fax: 603 5633 9788

Quality Fine Foods Distributors Sdn Bhd

Green House Ingredient Sdn Bhd

Rizqin Products Sdn Bhd

Harvest Bakery Ingredients Sdn Bhd

Roti Sedap Sdn Bhd

Lot 23 Jalan U5/15 Seksyen U5 Shah Alam 40150 Selangor Malaysia Tel: 603 7846 1008 Fax: 603 7846 5496

Lot 60957 / 70958 Jalan Wawasan 4A/KU7 Sungai Kapar Indah Jalan Kapar Klang 42200 Selangor Malaysia Tel: 603 3291 4151 Fax: 603 3290 6463

Huasin Food Industries Sdn Bhd

Roti Segar (M) Sdn Bhd

Lot 5066 Jalan 18/64 Taman Sri Serdang Seri Kembangan 43300 Selangor Malaysia Tel: 603 8943 5068 Fax: 603 8941 5066

CAF Food Products Sdn Bhd

30 Jalan P4/8 Bandar Teknologi Kajang 43500 Selangor Malaysia Tel: 603 8723 3888 Fax: 603 8723 8096

Chuan Bee Bakery & Confectionery Sdn Bhd 56 58 & 60 Jalan Pee Kang Hai Kampung Abdullah Segamat 85000 Johor Malaysia Tel: 607 932 1552

Lot 11 West Industrial Area Jinjang North Kuala Lumpur 52000 Wilayah Persekutuan Malaysia Tel: 603 6258 6608 Fax: 603 6259 4653

Daily Bakery Sdn Bhd

2 & 4 Jalan Canggih 9 Taman Perindustrian Cemerlang Ulu Tiram 81800 Johor Malaysia Tel: 607 861 1678 Fax: 607 861 3976

5 Jalan Belati Kawasan Perindustrian Maju Jaya 81300 Johor Malaysia Tel: 607 558 4399 Fax: 607 557 5567

9 Jalan Korporat KU 9 Taman Perindustrian Meru Klang 42200 Selangor Malaysia Tel: 603 3393 1001 Fax: 603 3393 1002

Golden Donuts Sdn Bhd

4 Lorong Enggang 37 Ulu Kelang Indutry Area 54200 Selangor Malaysia Tel: 603 4256 0688 Fax: 603 4256 9588

Berry’s Cake House (Kl) Sdn Bhd

De-Luxe Food Services Sdn Bhd

PKB Food Sdn Bhd

PT 8266 Kawasan Perindustrian Pinggiran Senawang Seremban 71450 Negeri Sembilan Malaysia Tel: 606 677 7878 Fax: 606 677 9882

23 & 25 Jalan PJS 11/16 Sunway Technology Park Bandar Sunway Petaling Jaya 46150 Selangor Malaysia Tel: 603 5635 1120 Fax: 603 5636 1512

Delicia Sdn Bhd

Foodteller Sdn Bhd

Sydney Cake House Sdn Bhd

King’s Confectionary Sdn Bhd

Tegas Laksana Sdn Bhd

12A Jalan USJ 21/3 Subang Jaya 47620 Selangor Malaysia Tel: 603 8023 1205 Fax: 603 8023 1214

Eminent Seasons Sdn Bhd

Le Petit Four Sdn Bhd

Bagus Marketing Sdn Bhd

English Hotbreads (Sel) Sdn Bhd

Michigan Pastries Sdn Bhd

52-58 Jalan Rugbi 13/30 Section 13 Shah Alam 40100 Selangor Malaysia Tel: 603 5511 0688 Fax: 603 5511 0689

18 Jalan Perdagangan 16 Taman Universiti Industrial Park Skudai 81300 Johor Malaysia Tel: 607 521 3810 Fax: 607 521 1407

1 & 3 Jalan Emas Satu Taman Emas Cheras 43200 Selangor Malaysia Tel: 603 9075 2769 Fax: 603 9076 7176

Bakels (Malaysia) Sdn Bhd

Family Bakery Sdn Bhd

Barkath Foods Sdn Bhd

FFS Marketing (M) Sdn Bhd

Lot 2 Jalan Pendamar 27/90 Section 27 Shah Alam 40400 Selangor Malaysia Tel: 603 5191 6396 Fax: 603 5191 6399

3rd Floor 21 Beach Street Bang Barkath 10300 Pulau Pinang Malaysia Tel: 604 262 6252 Fax: 604 261 9721

31 & 33 Jalan Meru Indah 20 Taman Perindustrian Meru Indah Kapar Klang 42200 Selangor Malaysia Tel: 603 3393 1436 Fax: 603 3393 1435

8 & 10 Jalan Budi 17 Taman Perindustrian Wawasan Batu Pahat 83000 Johor Malaysia Tel: 607 428 6677 Fax: 607 428 9677

Lot 1 Tapak Industry Ringan Changkat Cermin Ayer Tawar Manjong 32400 Perak Malaysia Tel: 605 376 1128 Fax: 605 376 2750

Khiazh Marketing Sdn Bhd

Backofen Trading Sdn Bhd

11 Jalan 10/108C Taman Sungai Besi Kuala Lumpur 57100 Wilayah Persekutuan Malaysia Tel: 603 7983 6677 Fax: 603 7983 3603

13 Dataran Perpaduan 1 Taman Bercham Raya Ulu Kinta 31150 Perak Malaysia Tel: 605 313 9952 Fax: 605 548 6642

Silver Bird Group Bhd

7 & 9 Jalan PJU 3/47 Sunway Damansara Petaling Jaya 47810 Selangor Malaysia Tel: 603 7805 5339 Fax: 603 7805 5393

A25 Jalan Kuang Bulan Taman Kepong Kuala Lumpur 52100 Wilayah Persekutuan Malaysia Tel: 603 6272 3633 Fax: 603 6272 3622

Bakery Products

25 Lorong Setiabistari 2 Kuala Lumpur 50490 Wilayah Persekutuan Malaysia Tel: 603 2093 9133 Fax: 603 2096 2242

HYT Food Industries Sdn Bhd

Early Bird Bakery Sdn Bhd

3 Jalan Taman Sri Ehsan 1 Kepong Kuala Lumpur 52100 Wilayah Persekutuan Malaysia Tel: 603 6277 6716

10 & 12 Jalan Langsat Taman Tan Sri Yacoob Skudai 81300 Johor Malaysia Tel: 607 512 1511 Fax: 607 232 1900

2 Jalan 6/152 Batu 6 Jalan Puchong Taman Perindustrian OUG Kuala Lumpur 58200 Wilayah Persekutuan Malaysia Tel: 603 7783 2328 Fax: 603 7783 1575

38 Jalan Bertam 5 Taman Daya Johor Bahru 81100 Johor Malaysia Tel: 607 353 9620 Fax: 607 355 2711

Nature’s Bake Sdn Bhd

35 Jalan Perindustrian 5 DI Jalan Haji Abdul Manan Batu 51/2 Meru Klang 41050 Selangor Malaysia Tel: 603 3392 0182 Fax: 603 3392 0073

Nice Victory Sdn Bhd

2 Jalan Bistari 4 Taman Industry Jaya Skudai 81300 Johor Malaysia Tel: 607 511 1833 Fax: 607 577 1737

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Lot 72 Persiaran Jubli Perak Section 21 Shah Alam 40000 Selangor Malaysia Tel: 603 5192 2888 Fax: 603 5192 2266

13-17 Jalan Warden U1/76 Seksyen U1 Taman Perindustrian Batu 3 Shah Alam 40150 Selangor Malaysia Tel: 603 5519 1562 Fax: 603 5519 2063

22A-2 Jalan USJ 21/3 4 UEP Subang Jaya Subang Jaya 47630 Selangor Malaysia Tel: 603 8024 0635 Fax: 603 8024 0684

The Baker’s Cottage Sdn Bhd

PT No 19243 Jalan Haji Abdul Manaf Off Jalan Meru Klang 42200 Selangor Malaysia Tel: 603 3392 7631 Fax: 603 3392 7633

The Bakery Talk Enterprise

23G Jalan Kenari 4 Bandar Puchong Jaya Puchong 47100 Selangor Malaysia Tel: 603 5882 7072

Today Bakeries Products (Klang) Sdn Bhd

114-122 Jalan Sungai Keramat 3 Taman Klang Utama Batu 5 Off Jalan Kapar Klang 42100 Selangor Malaysia Tel: 603 3291 4843 Fax: 603 3291 4845

Today Ingredients Sdn Bhd

6 Jalan Sungai Keramat 3 Taman Klang Utama Batu 5 Off Jalan Kapar Klang 42100 Selangor Malaysia Tel: 603 3291 7544 Fax: 603 3291 4845

Products & Services Listings Business & Trade Organisations Action Coach

Suite 322 Level 3 Menara Mutiara Majestics No 15 Jalan Othman Petaling Jaya 46000 Selangor Malaysia Tel: 603 7785 1300 Fax: 603 7785 1302

Arab Malaysian Chamber of Commerce

21.02&03 21 Floor Menara Haw Par Jalan Sultan Ismail Kuala Lumpur 50250 Wilayah Persekutuan Malaysia Tel: 603 2078 9990 Fax: 603 2078 0991

Koperasi MCOB Malaysia Berhad

Malaysia External Trade Development Corporation (MATRADE)

Menara MATRADE Jalan Khidmat Usaha Off Jalan Duta 50480 Kuala Lumpur Malaysia Tel: 603-6207 7077 Fax: 603-6203 7037 Email: info@matrade.gov.my URL: www.matrade.gov.my ( See Advertisement Page 23 )

Malaysian Cocoa Board

Tingkat 5 & 6 Wisma SEDCO Lorong Plaza Wawasan Off Coastal Highway Kota Kinabalu 88999 Sabah Malaysia Tel: 6088 23 4477 Fax: 6088 23 9575

Block Santubong G Floor Bangunan Mcoba 42 Jalan Syed Putra Kuala Lumpur 50460 Wilayah Persekutuan Malaysia Tel: 603 2260 1225 Fax: 603 2272 1769

Kuala Lumpur & Selangor Indian Chamber of Commerce & Industry

Lot 1115 Jalan Utama P O Box 1653 93916 Kuching Sarawak Malaysia Tel: 6082-33 1811 6082-36 2764 Fax: 6082-36 2580 6082-33 6877 Email: info@mpb.gov.my URL: www.mpb.gov.my Senior Director, Trading: Mr Othman Sajili Senior Director, Market Development: Mr Larry Sait Muling Business: Malaysian Pepper Board is a government agency with its objectives to promote pepper planting, research on pepper and pepper products and to develop and promote pepper industry in Malaysia. The Board also involves in pepper trades. ( See Advertisement Page 152 )

Malaysian Pineapple Industry Board connect you with ready buyers

116 2nd Floor Jalan Tuanku Abdul Rahman Kuala Lumpur 50100 Wilayah Persekutuan Malaysia Tel: 603 2693 1033 Fax: 603 2691 1670

Connect you with ready buyers

Malaysian Pepper Board

Wisma Nanas No 5 Jalan Padi Mahsuri Bandar Baru UDA Johor Bahru 81200 Johor Malaysia Tel: 607 236 1211 Fax: 607 236 5694

Sabah Rubber Industry Board

Call 03-4292 8251 to find out more

Aras 3 Wisma Pertanian Sabah Jalan Tasik Luyang Kota Kinabalu 88999 Sabah Malaysia Tel: 6088 21 2311 Fax: 6088 23 4940

Selangor & Kuala Lumpur Stationers & Booksellers Association 10A Jalan Kancil Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 2142 0307

Technopreneurs Association of Malaysia

Unit 204 Plug & Play Tech Gardenia Level 7 The Gardens South Tower Mid Valley City Kuala Lumpur 59200 Wilayah Persekutuan Malaysia Tel: 603 2264 5320 Fax: 603 2264 5321

Vistage Malaysia Sdn Bhd

Suite B-19-2 Wisma Pantai No 5 Jalan 4/83A Off Jalan Pantai Baru Kuala Lumpur 59200 Wilayah Persekutuan Malaysia Tel: 603 2284 2176 Fax: 603 2284 2100

ZHR Management Services

47A Jalan Cangkat Permata Taman Permata Kuala Lumpur 53300 Wilayah Persekutuan Malaysia Tel: 603 4147 3244 Fax: 603 4105 3244

Cable Services - Electric Array Metal (M) Sdn Berhad

6 Lorong Telok Batu 4A Batu 4 1/2 Off Jalan Kebun Seksyen 36 Taman AMJ Shah Alam 40460 Selangor Malaysia Tel: 603 5161 3146 Fax: 603 5161 2016

Building Equipment Services Sdn Bhd Seksyen 16 PT 250 Jalan 32 Kawasan Perindustrian Sungei Rasa Klang 41300 Selangor Malaysia Tel: 603 3344 5888 Fax: 603 3344 6722

Davis Quantec Systems (Asia) Sdn Bhd

Lot 526 Jalan Rantau Panjang Batu 11 Teluk Panglima Garang Kuala Langat 42500 Selangor Malaysia Tel: 603 3122 2488 Fax: 603 3122 2482

Federal Power Sdn Bhd

8 Jalan Ragum 15/17 Shah Alam 40200 Selangor Malaysia Tel: 603 5518 3600 Fax: 603 5519 8020

Gigaspeed Technology Sdn Bhd

7-1 Jalan Puteri 4/1 Bandar Puteri Puchong 47100 Selangor Malaysia Tel: 603 8060 2233 Fax: 603 8060 3232

Iryas Incorporation (M) Sdn Bhd

Wisma Iryas No 2 Jalan SS 13/6B Subang Jaya Industry Estate Subang Jaya 47500 Selangor Malaysia Tel: 603 5633 0668 Fax: 603 5633 0606

Syarikat Lan-Ric Industries Sdn Bhd Plot 171 Hala Prusahaan Menglembu 1 Falim Ipoh 30200 Perak Malaysia Tel: 605 282 2362 Fax: 605 282 2363

Tai Sin Electric Cables (Malaysia) Sdn Bhd

Lot PTD 37433 & 37434 Off Jalan Perindustrian Senai 3 Kawasan Perindustrian Senai II Senai 81400 Johor Malaysia Tel: 607 599 8888 Fax: 607 599 8898

Tenaga Cable Industries Sdn Bhd

Lot 2 Section 10 Jalan P/12 Kawasan Perusahaan Bandar Baru Bangi Bangi 43650 Selangor Malaysia Tel: 603 8922 2678 Fax: 603 8925 5911

Canned Goods - Whsle KJ Can (Selangor) Sdn Bhd

Lot PT 5141 Jalan Jenjarum Satu 28/39A Seksyen 28 Shah Alam 40000 Selangor Malaysia Tel: 603 5191 8519 Fax: 603 5191 8535

Marushin Canneries (Malaysia) Sdn Bhd

PLO 213 Jalan Timah Satu Kawasan Perindustrian Pasir Gudang Pasir Gudang 81700 Johor Malaysia Tel: 607 251 4802 Fax: 607 251 4798

The answer to all your convention and exhibition needs

152

Products & Services Listings Muar Ban Lee Engineering Sdn Bhd

Prismach Technology Sdn Bhd

Sime Darby Engineering Sdn Bhd

VLP Engineering Sdn Bhd

Mui Fatt Marketing Sdn Bhd

ProEight Offshore Engineering Sdn Bhd

SMP System Sdn Bhd

Wan-Ra Engineering (M) Sdn Bhd

Stauff South East Asia Sdn Bhd

YS Engineering

JR52 Lot 1818 Jalan Raja Kawasan Perindustrian Bukit Pasir Muar 84300 Johor Malaysia Tel: 606 985 9998 Fax: 606 985 8889

Lot 11793 Jalan Pengkalan Nelayan Telok Gong Port Klang 42000 Selangor Malaysia Tel: 603 3134 3888 Fax: 603 3134 3889

Nusa Damai (M) Sdn Bhd

5 Jalan Pinggiran 1 Medan Damai Ukay Ulu Kelang Ampang 68000 Selangor Malaysia Tel: 603 4256 7164 Fax: 603 4256 7019

Oriental Sheet Piling

16th Floor Surian Tower No. 1 Jalan PJU 7/3 Mutiara Damansara Petaling Jaya 47810 Selangor Malaysia Tel: 603 7949 6000 Fax: 603 7949 6111

Oriental Surface Finishing Sdn Bhd

35 Jalan 5 Bukit Kemuning Electro Plating Park Off Jalan Bukit Rimau Shah Alam 42450 Selangor Malaysia Tel: 603 5122 8282 Fax: 603 5122 1688

PLT Engineering

53 Wisma PLT Jalan Haji Abu Muar 84000 Johor Malaysia Tel: 606 954 7933 Fax: 606 953 0676

33 Jalan BP 5/6 Bandar Bukit Puchong Puchong 47120 Selangor Malaysia Tel: 603 8061 3639 Fax: 603 8061 2639

16 Jalan Setiawangsa 10 Taman Setiawangsa Hulu Klang Kuala Lumpur 54200 Wilayah Persekutuan Malaysia Tel: 603 4251 5808 Fax: 603 4251 5608

PWS Manufacturing Sdn Bhd

Lot 19 Jalan Anggerik Mokara 31/47 Seksyen 31 Kota Kemuning Shah Alam 40460 Selangor Malaysia Tel: 603 5121 5480 Fax: 603 5121 5680

Seremban Precision Components Sdn Bhd

33-35 Jalan SJ8/8A Taman Seremban Jaya Seremban 70450 Negeri Sembilan Malaysia Tel: 606 679 8854 Fax: 606 678 8115

Seri Zenith Engineering Sdn Bhd Lot 24 Seksyen 4 Jalan Balakong Batu 11 Cheras 43200 Selangor Malaysia Tel: 603 9074 9999 Fax: 603 9074 0312

PLO 336 Jalan Suasa P O Box 55 Pasir Gudang 81707 Johor Malaysia Tel: 607 253 8000 Fax: 607 253 8005

10 Jalan Sungai Batu 6 KU/6 Kawasan Perindustrian Klang Utama Klang 42100 Selangor Malaysia Tel: 603 3290 3009 Fax: 603 3291 5630

2nd Floor Lot 834 Jalan Subang 7 Kawasan Perindustrian Subang Off Persiaran Subang Subang Jaya 47500 Selangor Malaysia Tel: 603 8024 6168 Fax: 603 8024 8168

Thermo Compressor Engineering Sdn Bhd

12 Jalan SL 7/22 Bandar Sungai Long Kajang 43000 Selangor Malaysia Tel: 603 9076 8018 Fax: 603 4251 8085

TQC Automation & Technology (M) Sdn Bhd

No 31 33 35 Jalan Utama 2/32 Taman Perindustrian Puchong Utama Puchong 47100 Selangor Malaysia Tel: 603 8068 7668 Fax: 603 8068 7768

Connect you with ready buyers

SME MALAYSIA

187

30 Jalan PJU 10/10D Saujana Damansara Petaling Jaya 47830 Selangor Malaysia Tel: 603 6148 3304 Fax: 603 6148 3305

37 Jalan Pentadbir Seksyen U1/30 Hicom Glenmarie Industrial Park Shah Alam 40150 Selangor Malaysia Tel: 603 5569 3644 Fax: 603 5569 3645

6-10 Pangsapuri Segar Jaya Jalan Bagan Lallang Butterworth 13400 Pulau Pinang Malaysia Tel: 604 332 5899 Fax: 604 332 5899

Enviromental &/Or Pollution Control - Plant Equipment Supplies Aerofume Sdn Bhd

16 Jalan BA/12 Kawasan Perusahaan Bukit Angkat Kajang 43000 Selangor Malaysia Tel: 603 8739 9000 Fax: 603 8733 6117

Calsonic Compressor (Malaysia) Sdn Bhd PLO 673 Jalan Keluli 3 Pasir Gudang Industrial Estate Johor Bahru 81700 Johor Malaysia Tel: 607 256 2288 Fax: 607 256 2233

Products & Services Listings Seri Johore Bahru (Hup Kee) Lorry Svc Sdn Bhd

10 Jalan Pandan 3/6A Pandan Jaya Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 9285 3143 Fax: 603 9286 4998

Sim Poh Boon & Sons Sdn Bhd

Lot 250 Block 12 MCLD Riam Road (Opposite Hilltop Garden) Miri 98007 Sarawak Malaysia Tel: 6085 41 6987 Fax: 6085 41 3048

Sin Nam Ann Transport Sdn Bhd

Lot 1255-0-8 Capital Industrial Centre Batu 6 3/4 Jalan Sungai Besi Kuala Lumpur 57100 Wilayah Persekutuan Malaysia Tel: 603 9057 1889 Fax: 603 9058 3199

Success Lorry Agency Sdn Bhd

24 Jalan Pudu Hulu Batu 3.5 Jalan Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9284 2231 Fax: 603 9281 0435

Sunship (M) Sdn Bhd

15 Ground Floor Wisma Sunship Jalan TP5 Taman Perindustrian Sime UEP Subang Jaya 47620 Selangor Malaysia Tel: 603 8023 8699 Fax: 603 8023 6339

Syarikat Borcos Shipping Sdn Bhd

No 3 Jalan Krokop P O Box Miri 98007 Sarawak Malaysia Tel: 6085 41 9954 Fax: 6085 41 8854

Tiong Soon Trading & Transport Sdn Bhd 60 Batu 3 1/2 Jalan 8/91 Taman Shamelin Perkasa Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9285 6885 Fax: 603 9285 7572

Wilhelmsen Ships Service (M) Sdn Bhd

18 Floor 1 Sentral Jalan Travers Kuala Lumpur 50470 Wilayah Persekutuan Malaysia Tel: 603 2092 6600 Fax: 603 2092 6602

WTO Logistics (Malaysia) Sdn Bhd

27-5 Jalan USJ 9/5Q Subang Business Center Subang Jaya 47620 Selangor Malaysia Tel: 603 8024 4748 Fax: 603 8023 4748

Lubricating Devices & Equipment Arox Lubricants Sdn Bhd

17 Jalan SB Jaya 5 Taman Industry Sungai Buloh Jaya Sungai Buloh 47000 Selangor Malaysia Tel: 603 6156 7202 Fax: 603 6156 7213

Far East Oil Terminal Two (Malaysia) Sdn Bhd Pulau Indah Lot 55710 Jalan Kenanga 1 Pelabuhan Barat Pulau Indah Pelabuhan Klang 42009 Selangor Malaysia Tel: 603 3102 1100 Fax: 603 3102 1103

Inter-Pacific Advantage Sdn Bhd

Lot 30 Section 51-A Jalan 223 Petaling Jaya 46100 Selangor Malaysia Tel: 603 7957 1726 Fax: 603 7956 0843

Lion Petroleum Products Sdn Bhd

Wisma Posim Lot 72 Persiaran Jubli Perak Section 21 Shah Alam 40000 Selangor Malaysia Tel: 603 5191 8599 Fax: 603 5191 7750

Lubrimaxx Manufacturing Sdn Bhd

2159 Al 114 Kampung Baru Sungai Buloh 47000 Selangor Malaysia Tel: 603 6140 2346 Fax: 603 6140 2346

Sukimi Lube (M) Sdn Bhd

No 1 Block F Jalan Saujana Indah 10 Taman Perindustrian Saujana Indah Shah Alam 40150 Selangor Malaysia Tel: 603 7842 2170 Fax: 603 7842 2179

Syntomax Industries Sdn Bhd

7 Jalan Anggerik Mokara 31/46 Seksyen 31 Kota Kemuning Shah Alam 40460 Selangor Malaysia Tel: 603 5122 4208 Fax: 603 5122 5975

Machinery Adroit Advance Agro Sdn Bhd

Lot 108 MDLD 7016 Lorong Bandar Perdana 3 Sri Bandar Perdana Lahad Datu 91100 Sabah Malaysia Tel: 6089 86 2060 Fax: 6089 86 2059

218

Agro-Industrial Supplies (M) Sdn Bhd Lot 25-28 & 32 Kawasan Perusahaan Bandar Darulaman Kubang Pasu Jitra 06000 Kedah Malaysia Tel: 604 917 9591 Fax: 604 917 9596

Airgens Machinery Sdn Bhd

1 & 5 Jalan Industri Cherok Tokun 3 Taman Tokun Jaya Alma Bukit Mertajam 14000 Pulau Pinang Malaysia Tel: 604 540 3131 Fax: 604 540 3133

Axis Industrial Machinery Sdn Bhd 2412 Mk 1 Jalan Perusahaan Prai Industrial Estate 13600 Prai Penang Malaysia Tel: 604-390 7440 Fax: 604-399 6561 Email: info@axismachinery.com URL: www.axismachinery.com Person To Contact: Mr Benny Koay Mdm Tan Seok Huah Business: Marketing of CNC and conventional Machine for Metal Working Industries. ( See Advertisement Page 218 )

Classa Industrial (M) Sdn Bhd

Lot 5358/5359 Lorong Jerawat Dua Seberang Jaya Seberang Perai Tengah 13700 Pulau Pinang Malaysia Tel: 604 399 5449 Fax: 604 399 9577

Products & Services Listings Easy Pack Machinery Sdn Bhd

Lot 210A Jalan Perindustrian Bukit Minyak 6 Kawasan Perindustrian Bukit Minyak Seberang Perai Tengah 14000 Pulau Pinang Malaysia Tel: 604 501 9898 Fax: 604 501 9899

Mentakab Agricultural Machinery Sdn Bhd 7 & 8 Jalan Industri 6 Taman Perindustrian Temerloh Mentakab 28400 Pahang Malaysia Tel: 609 270 1818 Fax: 609 270 1819

GM Glotech Sdn Bhd

309 Block B Kelana Square 17 Jalan SS7/26 Petaling Jaya 47301 Selangor Malaysia Tel: 603 7803 0510 Fax: 603 7803 0520

Hi Tech Electrical Enterprise

8A-G Jalan Tun Dr Awang Bayan Lepas 11900 Pulau Pinang Malaysia Tel: 604 644 2909 Fax: 604 644 2909

Kendek Industry Sdn Bhd

Lot 1032 Jalan KB 2/15 Balakong Seri Kembangan 43300 Selangor Malaysia Tel: 603 8961 1100 Fax: 603 8961 1119

MH Multipack Sdn Bhd

(573640-D) 20 22 & 24 Lorong IKS Juru 3 Simpang Ampat Bukit Mertajam 14100 Pulau Pinang Malaysia Tel: 604 507 7706 Fax: 604 507 6577 Email: mhooi@mh2u.com Managing Director: Mr Ooi Meng Huat Business Director: Mr Chong Chin Guan Business: Specialize in OGMP Pharmaceutical & Cosmetic Packaging Machinery. ( See Advertisement Page 219 )

Sam McCoy Manufacturing Sdn Bhd

Bakat Industri Sdn Bhd

Seepex (M) Sdn Bhd

Brac Engineering (M) Sdn Bhd

10 Jalan Sepintas 26/13 Shah Alam 40400 Selangor Malaysia Tel: 603 5191 7711 Fax: 603 5191 7722

Dataran Prima 59-1 Jalan PJU 1/37 Petaling Jaya 47301 Selangor Malaysia Tel: 603 7880 6951 Fax: 603 7880 6959

SPLS Technology Sdn Bhd

33 35 36 37 Lorong Sungai Tukang 1/4 Kawasan Perindustrian Sungai Tukang Sungai Petani 08000 Kedah Malaysia Tel: 604 423 6618 Fax: 604 423 6619

UIS Technologies Sdn Bhd

80 Jalan IKS Bukit Tengah Taman IKS Bukit Tengah Bukit Mertajam Seberang Perai 14000 Pulau Pinang Malaysia Tel: 604 501 2999 Fax: 604 501 2995

Mackessen Sdn Bhd

18 Jalan Anggerik Mokara 31/44 Seksyen 31 Kota Kemuning Shah Alam 40460 Selangor Malaysia Tel: 603 5121 8948 Fax: 603 5121 8941

Markaids (Malaysia) Sdn Bhd

6 Lorong 19/1A Petaling Jaya 46300 Selangor Malaysia Tel: 603 7957 9733 Fax: 603 7957 9722

Machinery Tools

Quality Polymer Sdn Bhd

Acme Engineering Sdn Bhd

Plot 333 Jalan Perak 3 Pasir Gudang 81700 Johor Malaysia Tel: 607 252 9703 Fax: 607 252 9261

Rida Automatic Machinery Sdn Bhd

E7 Bangunan Khas Lorong 8/1E Petaling Jaya 46050 Selangor Malaysia Tel: 603 7956 3630 Fax: 603 7955 7659

20 Jalan Cenderai 26 Taman Perindustrian Kota Putri Masai 81750 Johor Malaysia Tel: 607 388 6599 Fax: 607 388 2433

Asian Grinding Technology Sdn Bhd Lot 23 Jalan Lada Hitam 16/12 Kawasan MIEL Shah Alam 40000 Selangor Malaysia Tel: 603 5511 5895 Fax: 603 5511 5899

219

1 Jalan TPP5/14 Taman Perindustrian Puchong Puchong 47100 Selangor Malaysia Tel: 603 8061 2893 Fax: 603 8061 2608

13-2 Jalan SP 2/1 Taman Serdang Perdana Section 2 Seri Kembangan 43300 Selangor Malaysia Tel: 603 8945 1161 Fax: 603 8945 1136

CKL Multimix (M) Sdn Bhd

21 & 23 Jalan Industri Mas 12 Taman Mas Puchong 47100 Selangor Malaysia Tel: 603 8051 3940 Fax: 603 8051 4867

Cosmo Engineering Sdn Bhd

30 Jalan Taming 4 Taman Taming Jaya Off Balakong Balakong 43300 Selangor Malaysia Tel: 603 8961 4981 Fax: 603 8961 3310

EDM Tools (M) Sdn Bhd

6 & 8 Jalan TPP 1/1A Taman Industry Puchong Puchong 47160 Selangor Malaysia Tel: 603 8062 5918 Fax: 603 8060 3117

Enco Systems Sdn Bhd

Lot 43 Rawang Integrated Industrial Park Mukim Of Rawang Rawang 48000 Selangor Malaysia Tel: 603 6091 3223 Fax: 603 6091 3222

Products & Services Listings

222

Products & Services Listings Aver Asia Sdn Bhd

26 Jalan Bukit 8 Kawasan MIEL Bandar Seri Alam Phase IV Masai 81750 Johor Malaysia Tel: 607 388 9966 Fax: 607 388 2888

Daifuku (Malaysia) Sdn Bhd

27 Jalan PJS 11/14 Bandar Sunway Petaling Jaya 46150 Selangor Malaysia Tel: 603 5632 1842 Fax: 603 5632 1843

De Tag Industry Sdn Bhd

17 Jalan Beranang Dua 27/14B Section 27 Shah Alam 40000 Selangor Malaysia Tel: 603 5191 2280 Fax: 603 5191 2290

EP Equipments

65 Jalan Mutiara Emas 6/6 Mount Austin Industrial Park Johor Bahru 81100 Johor Malaysia Tel: 607 353 2098 Fax: 607 352 1097

Eureka Equipment Sdn Bhd

Lot 5520 Balakong Jaya Light Industry Balakong Seri Kembangan 43309 Selangor Malaysia Tel: 603 8942 8788 Fax: 603 8942 8988

Liftrac Industrial Equipment Sdn Bhd

405 2nd Mile Jalan Kapar Klang 41400 Selangor Malaysia Tel: 603 3343 3726 Fax: 603 3343 3724

Likas Resources Sdn Bhd

Lot 7 Lorong Tonguzu Industry Center P O Box 10363 Kota Kinabalu 41240 Sabah Malaysia Tel: 6088 38 7777 Fax: 6088 42 7711

P & N Industrial Trdg Sdn Bhd

10 Jalan Penaga 5 Kawasan Perindustrian Kota Puteri Masai 81750 Johor Malaysia Tel: 607 387 9991 Fax: 607 388 1991

Pamitran Sdn Bhd

49 Jalan Segambut Selatan Segambut Kuala Lumpur 51200 Wilayah Persekutuan Malaysia Tel: 603 6252 5316 Fax: 603 6252 5197

Procan Industries (M) Sdn Bhd

7935 Jalan Bukit Cheraka Kampung Baru Subang Shah Alam 40150 Selangor Malaysia Tel: 603 7845 9866 Fax: 603 7845 9867

Reach Technologies Sdn Bhd

6 Jalan Bagan Nira 28/6 Hicom Industry Estate Shah Alam 40400 Selangor Malaysia Tel: 603 5191 2208 Fax: 603 5191 2088

Seratech Systems (M) Sdn Bhd

15 Jalan Industri PBP 9 Taman Perindustrian Pusat Bandar Puchong Puchong 47100 Selangor Malaysia Tel: 603 5885 0988 Fax: 603 5885 0933

Ukai (Malaysia) Sdn Bhd

Max Food Enterprise (M) Sdn Bhd

7 & 9 Jalan Kuchai Maju 17 Kuchai Entrepreneurs Park Off Jalan Kuchai Lama Kuala Lumpur 58200 Wilayah Persekutuan Malaysia Tel: 603 7981 9808 Fax: 603 7981 9809

Lot 33 Jalan Sri Ehsan 1 Taman Sri Ehsan Kepong Kuala Lumpur 52100 Wilayah Persekutuan Malaysia Tel: 603 6276 0300 Fax: 603 6277 6498

Perusahaan Makanan Sinar Kita Sdn Bhd 91 Jalan 1/154 Taman Bukit Anggerik Cheras Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 8945 8075 Fax: 603 8945 8073

UMW Industries (1985) Sdn Bhd

(003470-X) 14 Jalan Utas 15/7 P O Box 7052 40915 Shah Alam Selangor Malaysia Tel: 603-5163 3800 Fax: 603-5519 1550 Email: umwi-infodesk@umw.com.my URL: www.umw.com.my Executive Director: Mr Lee Chin Min Senior General Manager: Mr Gan Kim Teck General Manager: Mr Lee Chong Kuan Business: Distributes wide range of material handling & industrial floor cleaning equipment, spares & provides after sales services. ( See Advertisement Page 222 )

Sri Segar Food Corporation Sdn Bhd Lot 522 3rd Mile Jalan TUDM Kampung Baru Subang Shah Alam 40150 Selangor Malaysia Tel: 603 7845 9888 Fax: 603 7845 9555

Suraya Food Industries Sdn Bhd 401 Jalan P4/4 Bandar Teknologi Kajang Semenyih 43500 Selangor Malaysia Tel: 603 8723 6873 Fax: 603 8723 6773

Medical Equipment & Supplies ADVENTA Health

1 Jalan 8 Pengkalan Chepa 2 Industrial Zone Kota Bharu 16100 Kelantan Malaysia Tel: 609 774 7171 Fax: 609 774 7757

11 Jalan Kangkong Simpang Empat Alor Setar 06650 Kedah Malaysia Tel: 604 764 1828 Fax: 604 764 4818

Bolton Optical Sdn Bhd

35-2 Jalan 8/146 Bandar Tasik Selatan Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 9056 2222 Fax: 603 9057 7199

Cemara Agro Sdn Bhd

70 Jalan Dagangan 2 Pusat Bandar Bertam Perdana Kepala Batas 13200 Pulau Pinang Malaysia Tel: 604 573 6111 Fax: 604 573 1089

Dindings Poultry Processing Sdn Bhd 22nd Floor Wisma MCA 163 Jalan Ampang Kuala Lumpur 50450 Wilayah Persekutuan Malaysia Tel: 603 2170 0999 Fax: 603 2164 1062

Bumi Medik Artificial Limb Center Sdn Bhd

163 4th Floor Jalan Teratai 1/2 Ampang 68000 Selangor Malaysia Tel: 603 4296 8809 Fax: 603 4296 0876

Dispo-Med Marketing (M) Sdn Bhd

9 Jalan PJU 3/40 Sunway Damansara Technology Park Petaling Jaya 47810 Selangor Malaysia Tel: 603 7885 0866 Fax: 603 7885 0855

Enhance Famous Sdn Bhd

73 Jalan Cemerlang Taman Perindustrian Cemerlang Ulu Tiram 81800 Johor Malaysia Tel: 607 861 6073 Fax: 607 861 9773

Foresight Industries Sdn Bhd

23 & 25 Jalan Perdagangan 16 Taman Universiti Industrial Park Skudai 81300 Johor Malaysia Tel: 607 520 6779 Fax: 607 520 6780

6 Jalan TIAJ 2/6 Taman Industri Alam Jaya Bandar Puncak Alam Shah Alam 42300 Selangor Malaysia Tel: 603 6038 8808 Fax: 603 6038 8908

Fu Frozen Enterprise (M) Sdn Bhd

Massa United (M) Sdn Bhd

Lot 9224 4 1/2 Mile Panchang Bedena Sungai Besar 45300 Selangor Malaysia Tel: 603 3224 2045 Fax: 603 3224 2253

41 43 45 47 Jalan Tayar 34/12 Bukit Kemuning Light Industrial Park Jalan Bukit Kemuning Shah Alam 40470 Selangor Malaysia Tel: 603 5880 6477 Fax: 603 5880 6467

Orthomedic Medical Devices Sdn Bhd 188-D Jalan Sultan Azlan Shah Sungai Tiram Bayan Lepas 11900 Pulau Pinang Malaysia Tel: 604 644 5139 Fax: 604 644 9139

OSA Technology Sdn Bhd

Block C UKM-MTDC Smart Technology Centre II UKM Bangi 43600 Selangor Malaysia Tel: 603 8926 1351 Fax: 603 8926 1361

Soma Medical Sdn Bhd

92A Lorong Maarof Bangsar Park Kuala Lumpur 50450 Wilayah Persekutuan Malaysia Tel: 603 2287 4790 Fax: 603 2287 6790

UMI Medical & Life Science Sdn Bhd

Bismi Cergas Sdn Bhd

Figo Foods Sdn Bhd

MEDAN International Medical Manufacturing (M) Sdn Bhd

11-G & 11-1 Jalan PPAJ 3/1 Pusat Perdagangan Alam Jaya Bandar Puncak Alam 42300 Selangor Malaysia Tel: 603 6038 8368 Fax: 603 6038 8369

Fusipim Sdn Bhd

Lot 9224 4 1/2 Mile Panchang Bedena Sungai Besar 45300 Selangor Malaysia Tel: 603 3224 2045 Fax: 603 3224 2253

SME MALAYSIA

connect you with ready buyers

223

Lot 5074 Batu 5 1/2 Jalan Meru Klang 41050 Selangor Malaysia Tel: 603 3168 8999 Fax: 603 3167 7999

Y.S.P Southeast Asia Holdings Bhd

16th Floor Plaza VADS No.1 Jalan Tun Mohd Fuad Taman Tun Dr Ismail Kuala Lumpur 60000 Wilayah Persekutuan Malaysia Tel: 603 7727 6390 Fax: 603 7727 6701

Medicines - Patent & Proprietary Whsle & Mfrs Eagle & Pagoda Brand Teck Aun Medical Factory Sdn Bhd

686-686A Jalan Perindustrian Bukit Minyak Taman Perindustrian Bukit Minyak Bukit Mertajam 14100 Pulau Pinang Malaysia Tel: 604 508 8888 Fax: 604 508 5555

Hong Kong Ban Kah Chai Med Fty Sdn Bhd

Lot 427-430 Lorong IKS Tasek 5 Jalan Industri Padang Lallang Seberang Perai Selatan 14120 Pulau Pinang Malaysia Tel: 604 588 6328 Fax: 604 588 2328

New Group Medicine Sdn Bhd

15 Jalan Jintan Taman Supreme Cheras Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9130 3544 Fax: 603 9131 9949

The answer to all your convention and exhibition needs To advertise, call 03-4292

8251

Products & Services Listings Metal Fabrication Alpha Master (M) Sdn Bhd

Plot 109 Lorong Perusahaan Utama 2 Prai Industrial Estate 4 Bukit Tengah 14000 Bukit Mertajam Penang Malaysia Tel: 604-507 7811 Fax: 604-507 2150 Email: chaioo@pd.jaring.my URL: www.alphamaster.com.my Person To Contact: Mr Tan Waing Huat Mr Tan Chai Oo Business: Precision Machining and Metal Fabrication. ( See Advertisement Page 224 )

Broad-Line Electronics Sdn Bhd

25 Jalan Radin Anum 2 Taman Sri Petaling Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 9057 0091 Fax: 603 9059 3273

Babu Dagang Sdn Bhd

213 Jalan Sentul Persiaran Raja Muda Musa Port Klang 42000 Selangor Malaysia Tel: 603 3167 9324 Fax: 603 3168 0210

Camwell Sdn Bhd

No 21 Jalan Mutiara Emas 5/25 Taman Mount Austin Johor Bahru 81100 Johor Malaysia Tel: 607 351 9928 Fax: 607 351 8928

DZ Capital Sdn Bhd

Metalworks Engineering Sdn Bhd

Shapana Corporation Sdn Bhd

Eastern Soldar (M) Sdn Bhd

MIMOS Semiconductor (M) Sdn Bhd

Sun Sung Lee Engineering Sdn Bhd

Lot 17239 Oakland Industrial Park Seremban 70200 Negeri Sembilan Malaysia Tel: 606 764 6699 Fax: 606 762 7500

Technology Park Malaysia Kuala Lumpur 57000 Wilayah Persekutuan Malaysia Tel: 603 8995 5000 Fax: 603 8996 2755

1521 Ladang Valdor Sungai Bakap Sungai Jawi Seberang Perai Selatan 14200 Pulau Pinang Malaysia Tel: 604 582 8282 Fax: 604 582 8383

EMS Automation Sdn Bhd

MiTek Asia Sdn Bhd

Teck Ping Engineering Works

Lot 3A Seksyen 23 Jalan Pasaran 23/5 Kawasan MIEL Shah Alam Shah Alam 40300 Selangor Malaysia Tel: 603 5542 3000 Fax: 603 5542 6525

65 Jalan PM2 Taman Perindustrian Merdeka Batu Berendam 75350 Melaka Malaysia Tel: 606 317 2213 Fax: 606 317 2296

Industrial Concrete Products Bhd

2nd Floor Wisma IJM Jalan Yong Shook Lin Petaling Jaya 46050 Selangor Malaysia Tel: 603 7955 8888 Fax: 603 7958 1111

Malayan Metal Works Sdn Bhd

2444 Lorong Perusahaan Satu Kawasan Perusahaan Prai Prai 13600 Pulau Pinang Malaysia Tel: 604 390 7476 Fax: 604 399 6705

Metal Work Pneumatic (Malaysia) Sdn Bhd

No 52 Jalan TPJ 5 Taman Perindustrian Jaya Subang Jaya 47200 Selangor Malaysia Tel: 603 7845 4228 Fax: 603 7845 0228

2 Jalan 2/2A Taman Industry Selesa Jaya Balakong 43300 Selangor Malaysia Tel: 603 8961 6779 Fax: 603 8961 6773

Lot 15 Jalan Sultan Mohd 5 Bandar Sultan Sulaiman Port Klang 42000 Selangor Malaysia Tel: 603 3176 7473 Fax: 603 3176 7640

Multi Resources Industries Sdn Bhd Lot 1311 Pending Industrial Estate Kuching 93450 Sarawak Malaysia Tel: 6082 33 1267 Fax: 6082 48 7301

NCM Global Sdn Bhd

M5 Skypark Terminal Sultan Abdul Aziz Shah Airport Subang Jaya 47200 Selangor Malaysia Tel: 603 7845 2067 Fax: 603 7845 1588

Seremban Engineering Sdn Bhd

Lot 1A - 1C Lorong Bunga Tanjung 1/3 Senawang Industrial Park Seremban 70400 Negeri Sembilan Malaysia Tel: 606 677 5898 Fax: 606 677 5162

224

19 Solok Sungai Pinang 5 11600 Pulau Pinang Malaysia Tel: 604 282 2402 Fax: 604 282 2403

33 GL Floor Mission Road(Back Portion) Sibu 96000 Sarawak Malaysia Tel: 6084 32 0727 Fax: 6084 32 0727

Metal Specialties Alpha Precision Turning and Engineering Sdn Bhd

Lot 2A Jalan Lunas Kulim Industry Estate Kulim 09000 Kedah Malaysia Tel: 604 489 1891 Fax: 604 489 1885

Atryz (M) Sdn Bhd

P T 1 Jalan P/7 Off Jalan Besar P/1 Kawasan Perusahaan Peringkat Ke 2 Section 13 Bandar Baru Bangi Bangi 43650 Selangor Malaysia Tel: 603 8925 0201 Fax: 603 8925 0203

SME MALAYSIA

Products & Services Listings Dragon Power Plantations Sdn Bhd Bengkel 6-8 Jalan Kampung Raja Kampung Raja Cameron Highlands 39010 Pahang Malaysia Tel: 605 498 1944 Fax: 605 498 1854

Fimin Sdn Bhd

33 Jalan SS20/11 Damansara Utama Petaling Jaya 47400 Selangor Malaysia Tel: 603 7727 9277 Fax: 603 7728 0193

Hock Wee Nurseries Sdn Bhd

Room 201 2nd Floor 52B Jalan Sutera Taman Sentosa Johor Bahru 80150 Johor Malaysia Tel: 607 883 6291 Fax: 607 883 5026

Irriquip Supply Sdn Bhd

Canon Marketing (Malaysia) Sdn Bhd

Block D Peremba Square Saujana Resort Section U2 Shah Alam 40150 Selangor Malaysia Tel: 603 7844 6000 Fax: 603 7845 0505

IME Technology Sdn Bhd

30 Jalan PJS 1/46 Petaling Utama Petaling Jaya 46150 Selangor Malaysia Tel: 603 7783 3350 Fax: 603 7783 4384

COE Marketing (M) Sdn Bhd

Kian (Penang) Sdn Bhd

Eurocoin Sales & Services Sdn Bhd

Konica Minolta Business Solutions (M) Sdn Bhd

27 Jalan SS21/34 Damansara Utama Petaling Jaya 47400 Selangor Malaysia Tel: 603 7729 1311 Fax: 603 7729 1308

9-19 Jalan IKS Simpang Ampat 1 Taman IKS Simpang Ampat 14100 Pulau Pinang Malaysia Tel: 604 587 1855 Fax: 604 587 1918

35 Jalan SS15/4C Subang Jaya 47500 Selangor Malaysia Tel: 603 5637 3000 Fax: 603 5637 1000

Extra Idea Office System Sdn Bhd

1 Jalan 13/6 Petaling Jaya 46200 Selangor Malaysia Tel: 603 7801 2611 Fax: 603 7957 3029

Meidi Millen Sdn Bhd

218C Jalan Batu Unjur 7 Bayu Perdana Klang 41200 Selangor Malaysia Tel: 603 3324 3033 Fax: 603 3324 1686

Lot 2765 Kampung Baru Sungai Buloh 47000 Selangor Malaysia Tel: 603 6156 1233 Fax: 603 6156 4739

Malesiana Tropicals Sdn Bhd

Hytech Office Automation (M) Sdn Bhd

Oritronic Sdn Bhd

ID System Solutions Sdn Bhd

Panacom Sales & Services (HQ) Sdn Bhd

1st Floor Lot 4909 Section 64 Upland Shophouse Jalan Upland Kuching Kuching 93300 Sarawak Malaysia Tel: 6082 41 9290 Fax: 6082 42 3494

Merry Horticultural Development Sdn Bhd

7 Jalan Kluang Parit Raja 86400 Johor Malaysia Tel: 607 454 1008 Fax: 607 454 1333

Microgreen Bio-Industrial Bhd

35 Jalan Pluto U5/AZ Bandar Pinggiran Subang Shah Alam 40150 Selangor Malaysia Tel: 603 7846 2273 Fax: 603 7846 6680

11A Jalan TPP 1/13 Taman Industry Puchong Puchong 47100 Selangor Malaysia Tel: 603 8062 2681 Fax: 603 8060 3681

9 Jalan 8/125D Taman Desa Petaling Kuala Lumpur 57100 Wilayah Persekutuan Malaysia Tel: 603 9057 6200 Fax: 603 9057 6211

40 Jalan Industri USJ 1/11 Taman Perindustrian Head Office No.18A 1st Floor Persiaran Zaaba USJ 1 Subang Jaya 47600 Selangor Malaysia Taman Tun Dr Ismail Kuala Lumpur 60000 Tel: 603 8023 0950 Wilayah Persekutuan Malaysia Fax: 603 8023 0952 Ricoh_QPV.pdf 1 11/29/13 2:39 PM Tel: 603 7727 2888 Fax: 603 7727 9729

C-710 Kelana Square Jalan SS7/26 Kelana Jaya Petaling Jaya 47301 Selangor Malaysia Tel: 603 7494 2666 Fax: 603 7494 2555

MPR Manufacturing Sdn Bhd

No 11A Jalan Kelumpang 27/41A Hicom Town Centre Seksyen 27 40400 Selangor Malaysia Tel: 603 5191 8200 Fax: 603 5191 9200

SJH Nursery & Landscaping Sdn Bhd

Ricoh (Malaysia) Sdn Bhd

(10078-W) Ground Floor & Level 3 Axis Plaza No 5 Jalan Penyair U1/44 Off Jalan Glenmarie 40150 Shah Alam Selangor Malaysia Tel: 1300 88 8228 Fax: 603-5569 7758 URL: www.ricoh.com.my ( See Advertisement Page 227 & Inside Front Cover )

TO Office Furniture Sdn Bhd

49 Jalan Jejaka 7 Taman Maluri Cheras Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 9284 6933 Fax: 603 9284 6934

Versalink Marketing Sdn Bhd

Lot 6119 Jalan Haji Salleh Batu 5 1/2 Off Jalan Meru Klang 41050 Selangor Malaysia Tel: 603 3392 6888 Fax: 603 3392 3377

Willy Steel Sdn Bhd

Lot 244 Kawasan Perindustrian Batu 22 Jalan Ijok Bestari Jaya 45600 Selangor Malaysia Tel: 603 6286 3666 Fax: 603 6286 3688

Worklink Equipment (Malaysia) Sdn Bhd M2-B-23 Jalan Pandan Indah 4/1A Pandan Indah Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 4294 1872 Fax: 603 4296 1152

Writebest Sdn Bhd

High-quality Interactive Whiteboard RICOH D5500

12A Jalan Omar Parit Penyengat Parit Jawa Muar 84150 Johor Malaysia Tel: 606 987 4702 Fax: 606 987 5271

Lot 2954 Jalan 3A Kawasan Perindustrian Y.K.L Jalan Tekali Batu 1 1/2 Hulu Langat 43100 Selangor Malaysia Tel: 603 9021 7288 Fax: 603 9021 6400

Yosogo Writing Instrument Sdn Bhd

5500 Jalan Mak Mandin Mak Mandin Industrial Estate Butterworth 13400 Pulau Pinang Malaysia Tel: 604 332 1133 Fax: 604 332 7278

Oil & Gas IndustriesConsultants Smooth Handwriting

Office Products & Supplies

Dexter Marketing Sdn Bhd

The VERVA IOI 2-23 Jalan Merbah 3 Bandar Puchong Jaya Puchong 47100 Selangor Malaysia Tel: 603 8071 1040 Fax: 603 8071 1024

Amble Sparkle Sdn Bhd

772 Sublot 2 Jalan SS 13/1K Sungai Penaga Industry Park Petaling Jaya 47500 Selangor Malaysia Tel: 603 5635 6807 Fax: 603 5634 9750

AZZA Industries Sdn Bhd

1 Jalan 5 Off Jalan Sungai Puloh Batu 6 Jalan Kapar Klang 41400 Selangor Malaysia Tel: 603 3291 4521 Fax: 603 3291 9830

Beyen Sales & Services (M) Sdn Bhd 15 Jalan Cahaya 15 Taman Cahaya Ampang 68000 Selangor Malaysia Tel: 603 9284 7076 Fax: 603 9284 7070

Outstanding Quality

INTECSEA Malaysia

19th Floor Sunway Tower 86 Jalan Ampang Kuala Lumpur 50400 Wilayah Persekutuan Malaysia Tel: 603 2032 2488 Fax: 603 2032 3488

Real-time, remote communication

Ricoh brings yet another revolutionary product to the business, industrial and educational worlds: the Interactive Whiteboard D5500. This remarkable innovation will make your business meetings, teleconferences, collaborative presentations and classroom training sessions so much more productive and cost-efficient.

RICOH (MALAYSIA) SDN. BHD. (10078-W)

Axis Plaza, Ground Floor & Level 3, No.5, Jalan Penyair U1/44, Off Jalan Glenmarie, 40150 Shah Alam, Selangor Darul Ehsan.

Customer Service Hotline: 1 300 88 8228 l www.ricoh.com.my

227

UMW Oil & Gas Bhd

Suite 3A Level 18 Plaza Sentral Jalan Stesen Sentral 5 KL Sentral Kuala Lumpur 50470 Wilayah Persekutuan Malaysia Tel: 603 2096 8788 Fax: 603 2096 8716

Products & Services Listings Kaoten Packaging Sdn Bhd

Lot 31 Kawasan MIEL Alor Gajah Industrial Estate Alor Gajah 78000 Melaka Malaysia Tel: 606 556 4522 Fax: 606 556 4521

Kheng Hwa Paper Products Sdn Bhd

Lot 320-321 Mukim 1 Kawasan Perusahaan Prai Seberang Perai Tengah 13600 Pulau Pinang Malaysia Tel: 604 390 7962 Fax: 604 399 7143

Kooka Paper Manufacturing Sdn Bhd Lot 841 Jalan Subang 7 Taman Perindustrian Subang Sungai Penaga Subang Jaya 47500 Selangor Malaysia Tel: 603 8023 3468 Fax: 603 8023 1540

L.P. Pacific Films Sdn Bhd

Plo 540 Jalan Keluli 3 Pasir Gudang 81700 Johor Malaysia Tel: 607 251 2941 Fax: 607 251 2940

Master-Pack Sdn Bhd

1574 Jalan Bukit Panchor Nibong Tebal Seberang Perai Selatan 14300 Pulau Pinang Malaysia Tel: 604 593 1550 Fax: 604 593 1552 Connect you with ready buyers

Nuko Marketing (M) Sdn Bhd

Henry Goh & Co Sdn Bhd

Synthese (M) Sdn Bhd

Intellect Worldwide Sdn Bhd

Theen Seng Paper Manufacturing Sdn Bhd

IP Advantage Sdn Bhd

Lot 7 9 1/2 Mile Tangga Batu Industrial Estate Tangga Batu 76400 Melaka Malaysia Tel: 606 351 6888 Fax: 606 351 7878

32nd Mile Jalan Ipoh Rasa Hulu Selangor 44200 Selangor Malaysia Tel: 603 6057 3101 Fax: 603 6057 3250

Pascorp Paper Industries Sdn Bhd

Lot 1A Kawasan Perindustrian Bentung Bentong 27800 Pahang Malaysia Tel: 609 222 3355 Fax: 609 222 2266

Ron-Seng Paper Products Sdn Bhd

23 Jalan Sibu 17 Taman Wahyu Batu 6 Jalan Ipoh Kuala Lumpur 68100 Wilayah Persekutuan Malaysia Tel: 603 6251 0100 Fax: 603 6257 5863

Semi Convertor Industries Sdn Bhd

ST Paper Industry Sdn Bhd

Jalan Bukit 2 MIEL Seri Alam Masai 81750 Johor Malaysia Tel: 607 386 4023 Fax: 607 386 4026

No 4 Lorong Nagasari 26 Taman Nagasari 13600 Perai Penang Malaysia Tel: 604-390 9100 Fax: 604-390 7100 Email: nuko@calvin-production.com URL: www.calvin-production.com Managing Director: Mr Calvin Kwan Executive Director: Ms Sandy Chang Business: Advertising, Marketing & Manufacturing. ( See Advertisement Page 232 )

Lot 27 Jalan Industri 3/1 Kawasan Perindustrian Gopeng Gopeng 31600 Perak Malaysia Tel: 605 357 7041 Fax: 605 357 7046

House of Henry Goh 217 Jalan Imbi Kuala Lumpur 55100 Wilayah Persekutuan Malaysia Tel: 603 2118 8688 Fax: 603 2118 8777

IPeople House 7A Clove Hall Road George Town 10050 Pulau Pinang Malaysia Tel: 604 210 0026 Fax: 604 228 2100

Jalan Kledang Timur 1 Bandar Baru Menglembu Ipoh 31450 Perak Malaysia Tel: 605 282 6981 Fax: 605 282 2981

KASS International Sdn Bhd Thong Guan Plastic & Paper Industries Sdn Bhd

Lot 52 Jalan PKNK 1/6 Kawasan Perusahaan Sungai Petani Sungai Petani 08000 Kedah Malaysia Tel: 604 441 7888 Fax: 604 441 9888

Patent Trademark & Copyright Service Agencies DW Intellect Sdn Bhd

4B (1st Floor) Jalan BK 5B/3 Bandar Kinrara Puchong 47100 Selangor Malaysia Tel: 603 8070 9513 Fax: 603 8070 7425

232

Suite 8-7-2 Menara Mutiara Bangsar Jalan Liku Off Jalan Riong Kuala Lumpur 59100 Wilayah Persekutuan Malaysia Tel: 603 2284 7872 Fax: 603 2284 1125

Pintas IP Group Sdn Bhd

19 Jalan SS 1/36 Petaling Jaya 47300 Selangor Malaysia Tel: 603 7876 5050 Fax: 603 7876 2678

Rockwills Corporation Sdn Bhd

Wisma Rockwills 62 Jalan 2/131A Off Jalan Klang Lama Kuala Lumpur 58200 Wilayah Persekutuan Malaysia Tel: 603 7781 1993 Fax: 603 7781 2993

Products & Services Listings Petroleum Products Autolub System Engineering

26 Jalan Industri PBP 6 Taman Industry Pusat Bandar Puchong Puchong 47100 Selangor Malaysia Tel: 603 5882 1756 Fax: 603 5882 6901

BP Castrol Lubricants (Malaysia) Sdn Bhd Level 22 Quill 7 No 9 Jalan Stesen Sentral 5 Kuala Lumpur Sentral Kuala Lumpur 50470 Wilayah Persekutuan Malaysia Tel: 603 2272 7272 Fax: 603 2272 6868

ExxonMobil

Menara ExxonMobil Kuala Lumpur City Centre Kuala Lumpur 50088 Wilayah Persekutuan Malaysia Tel: 603 2380 3000 Fax: 603 2353 3000

IEV Group Of Companies

Block B Level 2 Dataran Hamodal 4 Jalan Bersatu 13/4 Petaling Jaya 46200 Selangor Malaysia Tel: 603 7960 9109 Fax: 603 7960 9108

Kemaman Technology & Industrial Park Sdn Bhd

PT 11254 Taman Industry Paka Paka Dungun 23100 Terengganu Malaysia Tel: 609 827 4027 Fax: 609 827 6049

UT United (Malaysia) Sdn Bhd

H20 Jalan Perusahaan Indah 3 Kawasan Perindustrian Taman Sejati Indah Sungai Petani 20800 Kedah Malaysia Tel: 604 422 9939 Fax: 604 422 9933

Pharmaceutical Products Whsle & Mfs Academy Of Phytobiophysics Sdn Bhd

22 Lengkok Canning Ipoh Garden Ipoh 31400 Perak Malaysia Tel: 605 546 5297 Fax: 605 546 3142

Ashley Dermacare Laboratory Sdn Bhd

173 Jalan Ipoh Kuala Lumpur 51200 Wilayah Persekutuan Malaysia Tel: 603 4041 0433 Fax: 603 4041 9523

ASP Medical Clinic Sdn Bhd

10th Floor Menara SME Bank Jalan Sultan Ismail Kuala Lumpur 50250 Wilayah Persekutuan Malaysia Tel: 603 2692 2677 Fax: 603 2692 2399

Bosland Corporation (M) Sdn Bhd 1 Pt4006 Jalan Perusahaan 5 Kawasan Perindustrian Kamunting Kamunting 34600 Perak Malaysia Tel: 605 891 2004 Fax: 605 891 2009

Era Edar Marketing Sdn Bhd Liftech Engineering (KL) Sdn Bhd

10 & 12 Jalan TPP 5/8 Taman Perindustrian Puchong Seksyen 5 Puchong 41700 Selangor Malaysia Tel: 603 8061 9598 Fax: 603 8061 9597

Olijaya Engineering Sdn Bhd

13 Block B Lot 756 Jalan Subang 3 Off Persiaran Subang Subang Jaya 47610 Selangor Malaysia Tel: 603 5633 5255 Fax: 603 5634 0764

Pandamaran Synergy Petroleum Sdn Bhd 15 Jalan Batu Nilam 34/1 Bandar Bukit Tinggi Klang 41200 Selangor Malaysia Tel: 603 3325 9158 Fax: 603 3325 9157

PETRONAS Dagangan Berhad

Lot 4&6 1st Floor Bandar Darul Aman Jitra Jitra 06000 Kedah Malaysia Tel: 604 919 9044 Fax: 604 919 9912

Fulijaya Manufacturing Sdn Bhd

30 Lorong Makmur 13/1 Taman Makmur Industrial Estate Kulim 09000 Kedah Malaysia Tel: 604 484 3024 Fax: 604 484 4882

Ginvera Marketing Enterprise Sdn Bhd

Siang Peng Pharmaceutical Sdn Bhd

Ivy Six Body Care & Trading Sdn Bhd

Sireh Emas Marketing Sdn Bhd

B-3A-07 Jalan 19/1 Petaling Jaya 46300 Selangor Malaysia Tel: 603 7958 1077 Fax: 603 7960 0943

11 Jalan 2a/1 Taman Bandar Baru Selayang Fasa 2A Batu Caves 68100 Selangor Malaysia Tel: 603 6189 4857 Fax: 603 6187 2124

Jin Bin Corporation Sdn Bhd

623 Kawasan Perusahaan Tandop Baru Alor Setar 05400 Kedah Malaysia Tel: 604 772 5088 Fax: 604 771 3088

Laffair Corporation Sdn Bhd

Lot 61 Jalan BP5 Bandar Bukit Puchong Puchong 47120 Selangor Malaysia Tel: 603 8061 8181 Fax: 603 8061 8186

Madu Pak Long Sdn Bhd

ST524 Lot A-1 Section 4 Jalan Tunas Baru Kawasan Perindustrian Pengkalan Balak Masjid Tanah 78300 Melaka Malaysia Tel: 606 384 3928 Fax: 606 384 5798

Natural Wellness Industries Sdn Bhd 78 Jalan Kilang Midah Taman Midah Cheras Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 9171 5329 Fax: 603 9171 4073

Nova Nutritional Supplies Sdn Bhd

9 Jalan PJS 11/14 Bandar Sunway Petaling Jaya 46150 Selangor Malaysia Tel: 603 5637 8232 Fax: 603 5633 0319

Orgapharma Herbal Manufacturing Sdn Bhd

83 Jalan Kesuma 2/3 Fasa 5D Bandar Tasek Kesuma Tekno Park Beranang 43700 Selangor Malaysia Tel: 603 8723 1439 Fax: 603 8723 1413

Perwanza Enterprise (M) Sdn Bhd

Lot 2297 Bukit Angkat Sungai Chua Kajang 43000 Selangor Malaysia Tel: 603 8733 3878 Fax: 603 8733 9693

Block H Unit M15&M17 Plaza Suria Jalan PJU 10/4B Damansara Damai 47837 Selangor Malaysia Tel: 603 6141 3093 Fax: 603 6141 4678

Global Vision & Resource

Pharmaniaga Manufacturing Bhd

20 Hala Rapat Baru 23 Kawasan Perindustrian Ringan Kinta Jaya Ipoh 31350 Perak Malaysia Tel: 605 313 5158 Fax: 605 311 5158

Level 30-33 Tower 1 Petronas Twin Towers Kuala Lumpur City Centre Kuala Lumpur 50088 Wilayah Persekutuan Malaysia Tel: 603 2331 7866 Fax: 603 2331 3662

Golden Hope Bioganic Sdn Bhd

Sunmaju Sdn Bhd

Herbalceutical (M) Sdn Bhd

999 Jalan Subang Kampung Baru Sungai Buloh Seksyen U19 Shah Alam 40160 Selangor Malaysia Tel: 603 6156 5601 Fax: 603 6157 6608

HOE Pharmaceuticals Sdn Bhd

Batu 9 Jalan Klang-Banting Telok Panglima Garang Industrial Estate Kuala Langat Kuala Langat 42500 Selangor Malaysia Tel: 603 3122 6302 Fax: 603 3122 0782

33 Jalan Metro Perdana Timur 10 Kepong Entrepreneurâ&#x20AC;&#x2122;s Park Kuala Lumpur 52100 Wilayah Persekutuan Malaysia Tel: 603 6257 1811 Fax: 603 6257 2293

11A Jalan P/1 Bandar Baru Bangi Kajang 43650 Selangor Malaysia Tel: 603 8925 7880 Fax: 603 8925 6177

Royce Pharma Manufacturing Sdn Bhd PT 1663 Nilai Industrial Estate Nilai 78800 Negeri Sembilan Malaysia Tel: 606 799 5999 Fax: 606 799 4999

Shitek Micro Algae Sdn Bhd

5 Jalan TPK 2/5 Taman Industry Kinrara Kuala Lumpur 47100 Wilayah Persekutuan Malaysia Tel: 603 8075 4985 Fax: 603 8075 4475

233

7 Jalan 1/5 Taman Industry Selesa Jaya Balakong 43300 Selangor Malaysia Tel: 603 8961 8537 Fax: 603 8961 7537

9-11 Block B Kilang SME Bank Jalan Saujana Indah 8 Taman Perindustrian Saujana Indah Shah Alam 40150 Selangor Malaysia Tel: 603 7842 2558 Fax: 603 7842 2557

SKY Resources Sdn Bhd

1720 LPU 1 MK 11 Kawasan Perindustrian Bukit Tengah Bukit Mertajam 14000 Pulau Pinang Malaysia Tel: 604 501 5188 Fax: 604 501 5183

Symbiotica Speciality Ingredient Sdn Bhd 3-9-B NB Plaza Jalan Baru Prai 13700 Pulau Pinang Malaysia Tel: 604 397 9799 Fax: 604 397 9799

Taisho Pharmaceutical (M) Sdn Bhd Lot 9 Seksyen 10 Jalan P/12 Kawasan Prusahaan Bandar Baru Bangi Bangi 43650 Selangor Malaysia Tel: 603 8926 1228 Fax: 603 8926 1788

Tong Ah Pengarakan Sdn Bhd

1-G Jalan 1/114 Kuchai Business Centre Jalan Kuchai Lama Kuala Lumpur 58200 Wilayah Persekutuan Malaysia Tel: 603 7984 6811 Fax: 603 7984 9811

WHITE HERON Pharmaceutical Sdn Bhd Jalan KIP 3 Taman Perindustrian KIP Sri Damansara Kuala Lumpur 52200 Wilayah Persekutuan Malaysia Tel: 603 6280 2162 Fax: 603 6280 3162

Xepa-Soul Pattinson (Malaysia) Sdn Bhd 1-5 Cheng Industrial Estate Cheng 45250 Melaka Malaysia Tel: 606 335 1515 Fax: 606 335 5829

Photographer Ceechuck Resources

(SA0253214-T) No 75 Jalan Resak Taman Palm Grove 41200 Klang Selangor Malaysia Tel: 6010 225 8775 (Kelvin Tea) 6016 3459163 (Larry Chew) Email: hello@ceechuck.com URL: www.ceechuck.com Director: Mr Kelvin Tea Business: We provide service for coorporate video, event video highlight, Annual dinner video and livefeed.

Also all video and photo related. We do project management for events as well.

Products & Services Listings Pressure Vessels - Whsle & Mfrs Ikatan Engineering Sdn Bhd

Lot 51 IGB International Industrial Park Jalan Kuala Kangsar Ipoh 31200 Perak Malaysia Tel: 605 291 1273 Fax: 605 291 1296

Inmech (M) Sdn Bhd

94 Jalan SS24/2 Taman Megah Petaling Jaya 47301 Selangor Malaysia Tel: 603 7804 5555 Fax: 603 7804 0555

Ace Printers Sdn Bhd

Copytex Sdn Bhd

Art Printing Works Sdn Bhd

CPP Printers Sdn Bhd

Lot 5 & 7 Lorong 227C Petaling Jaya 46100 Selangor Malaysia Tel: 603 7956 8370 Fax: 603 7956 8076

29 Jalan Riong Kuala Lumpur 59100 Wilayah Persekutuan Malaysia Tel: 603 2282 3233 Fax: 603 2282 7230

Artworld Technology Sdn Bhd

Lot 1624 MARA Industry Lots MK8 Pongsu Seribu Seberang Perai 13200 Pulau Pinang Malaysia Tel: 604 5756218 Fax: 604 5756217

Asia Printed Circuit Sdn Bhd

203 Jalan Tembusu (Industrial Area) Taman Melayu Jaya Kampar 31900 Perak Malaysia Tel: 605 466 5611 Fax: 605 466 6931

Printers

26 Jalan PBS 14/13 Taman Perindustrian Bukit Serdang Seri Kembangan 43300 Selangor Malaysia Tel: 603 8945 5399

DYIT Solutions Sdn Bhd

12 Jalan 14/118B Desa Tun Razak Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 9172 5411 Fax: 603 9172 6477

Amcorp Tower Amcorp Trade Centre Suite 1208 12 Persiaran Barat Petaling Jaya 46050 Selangor Malaysia Tel: 603 7948 5317 Fax: 603 7955 6363

Aupac Industry Sdn Bhd

Galaxy Automation Sdn Bhd

Avo Cetek Sdn Bhd

Gillin Printers Sdn Bhd

Printed Circuit Boards A.J.V. Electronic Devices (M) Sdn Bhd

10-12 Regat Sri Cempaka Taman Cempaka Ipoh 31400 Perak Malaysia Tel: 605 547 7822 Fax: 605 549 6513

Lot 727 Jalan Seri Emas 50 Taman Seri Telok Mas Telok Mas 75460 Melaka Malaysia Tel: 606 261 0679 Fax: 606 261 0198

Jalan Puchong Batu 7 1/2 Puchong 47100 Selangor Malaysia Tel: 603 8070 1675 Fax: 603 8070 5221

BHS Book Printing Sdn Bhd

Lot 17-22 & Lot 17-23 Jalan Satu Bersatu Industrial Park Cheras Jaya Cheras 43200 Wilayah Persekutuan Malaysia Tel: 603 9074 7558 Fax: 603 9074 7573

Global Business Park Block A 8 Jalan 19/1 Section 19 Petaling Jaya 46300 Selangor Malaysia Tel: 603 7954 4303 Fax: 603 7957 7942

28 Jalan Vivekananda Brickfields Kuala Lumpur 50470 Wilayah Persekutuan Malaysia Tel: 603 2273 1189 Fax: 603 2273 1190

Helipro Enterprise

14 Jalan Manis 4 Taman Segar Kuala Lumpur 56100 Wilayah Persekutuan Malaysia Tel: 603 9131 4073 Fax: 603 9131 0522

HIZI Print Sdn Bhd

No 19 Jalan P/19 Selaman Industrial Park Bandar Baru Bangi 43650 Selangor Malaysia Tel: 603 8926 9896 Fax: 603 8926 9897

KHL Printing Co Sdn Bhd

(235060-A) Lot 10 & 12 Jalan Modal 23/2 Seksyen 23 Kawasan MIEL Phase 8 40000 Shah Alam Selangor Malaysia Tel: 603-5541 3695 603-5541 3634 Fax: 603-5541 3712 Email: annie@khlprint.com URL: www.khlprint.com.sg Managing Director: Mr Dennis Tan Senior Sales Executive: Ms Annie Yap Finance Manager: Mr Kelvin Choong Business: One Stop Printing Solutions Provider. ( See Advertisement Page 236 )

Kinta Premier Print Sdn Bhd

30 Jalan Nadchatiram Taman Taynton View Kuala Lumpur 56000 Wilayah Persekutuan Malaysia Tel: 603 9133 2828 Fax: 603 9133 2323

KHL PRINTING CO SDN BHD (235060- A)

WEB SITE: www.khlprint.com.sg

EMAIL: enquiry-my@khlprint.com

ISO14001:2004

236

ISO9001:2008

Products & Services Listings Welding Equipment & Supplies Ampweld Marketing Sdn Bhd

28 Laluan Perindustrian Silibin 2 Jelapang Industrial Esate Ipoh 30020 Selangor Malaysia Tel: 605 529 2368 Fax: 605 529 2366

Ecis (M) Sdn Bhd

A4380 Lorong Seri Kuantan 22 Off Jalan Teluk Sisek Kuantan 25000 Pahang Malaysia Tel: 609 567 2922 Fax: 609 567 6203

Longlife Weld Sdn Bhd

(153435-W) 203 Jalan Pasir Puteh 31650 Ipoh Perak Malaysia Tel: 605-254 7484 Fax: 605-255 8923 Email: kengfu@longlifeweld.com.my URL: www.longlifeweld.com.my General Manager: Mr Leong Keng Fu Business: Sole Agent WIM Welding Machine, Robot Arm, Kleentek Electrostatic Liquid Cleaner, Plasma Cutting Systems, WASP CNC Plasma & Oxy Fuel System.

Saf-Oerlikon Malaysia Sdn Bhd

10 Jalan TPP 5/1 Taman Perindustrian Puchong Section 5 Puchong 47100 Selangor Malaysia Tel: 603 8060 8638 Fax: 603 8060 8583

Southern Wire Industries (Malaysia) Sdn Bhd Lot 4808 Jalan Utas 15/7 Shah Alam 40000 Selangor Malaysia Tel: 603 5519 1501 Fax: 603 5519 3369

TSM Welding Technology Sdn Bhd

44 Jalan Pengasah 3 Batu 4 Jalan Kapar Klang 42100 Selangor Malaysia Tel: 603 3290 3311 Fax: 603 3290 3322

TTMC Welding Supplies Sdn Bhd 13 & 15 Jalan BP 5 Bandar Bukit Puchong Puchong 47100 Selangor Malaysia Tel: 603 8060 6131 Fax: 603 8060 6639

Welding Alloys (Far East) Sdn Bhd

28 Jalan Riang 21 Taman Gembira Johor Bahru 81200 Johor Malaysia Tel: 607 332 3753 Fax: 607 331 9473

Planning an event?

963 Kampung Baru Sungai Buloh Sungai Buloh 47000 Selangor Malaysia Tel: 603 6156 5249 Fax: 603 6156 5287

J K Sumi Wire Harness Sdn Bhd

7 Jalan Firma 2/2 Kawasan Perindustrian Tebrau 1 Johor Bahru 81100 Johor Malaysia Tel: 607 354 8886 Fax: 607 354 8597

BPT Enterprise Sdn Bhd

2A Jalan Ampang Jaya Taman Ampang Jaya Batu Pahat 83000 Johor Malaysia Tel: 607 434 3375 Fax: 607 434 3375

Teetronics Industrial (M) Sdn Bhd

Deguan Marketing Sdn Bhd

(308167-A) 6 Lorong Zainal Abidin 13 Off Jalan Pendamar Pendamar 41200 Klang Selangor Malaysia Tel: 603-3168 3986 Fax: 603-3166 2599 Email: sales@teetronics.com URL: www.teetronics.com Managing Director: Mr Tee Beng Hok Sales & Marketing & Engineering General Manager: Mr Tee Ling Huat Business: Wire Harness For Electronics & Electricals, Automotive, Machinery, Moulded Parts and Power Cord.

Lot 16 Towering Industrial Center Mile 4 Jalan Penampang Penampang 88300 Sabah Malaysia Tel: 6088 71 2438 Fax: 6088 71 2021

Eleplas Industries Sdn Bhd

Lot 3029 Kampung Melayu Batu 5 Sri Lalang Kluang 86000 Johor Malaysia Tel: 607 759 5811 Fax: 607 759 5812

Euro Bench Office System Sdn Bhd 1660 Jalan Raya 1 Seri Kembangan 43300 Selangor Malaysia Tel: 603 8948 3339 Fax: 603 8948 4807

Wire Products

Fong Mao Timber Industries Sdn Bhd

Lot 19 Kawasan Industrial Kuala Ketil Kuala Ketil 09300 Kedah Malaysia Tel: 604 416 3567 Fax: 604 416 3189

W.T. Wire Mesh Trading Sdn Bhd

(530651-T) Lot 253 Kawasan Perindustrian Bukit Rambai Fasa 4B 75250 Melaka Malaysia Tel: 606-351 6378 606-351 6379 Fax: 606-351 6380 Email: spsh@streamyx.com Manager: Mr Wong Tiang Office Executive: Ms Toh Lee Lee Business: Wire Fencing, Chicken Wire Mesh, BRC Mesh & Barbed Wire.

Greenwood Interdesign Sdn Bhd

2 Jalan Meranti Jaya 16 Taman Perindustrian Meranti Jaya Puchong 47100 Selangor Malaysia Tel: 603 8062 1803 Fax: 603 8063 2803

HeveaPac Sdn Bhd

PT 403 406 & 411 Kawasan Perindustrian Sungai Gadut KM 11 Jalan Tampin Seremban 71450 Negeri Sembilan Malaysia Tel: 606 679 3775 Fax: 606 679 1382

Hong Tai Furniture

Wood Processing Equipment & Supplies

3A Jalan Seri Sulong Utama Taman Industri Seri Sulong Batu Pahat 83500 Johor Malaysia Tel: 607 410 1991 Fax: 607 410 1926

Adeqres Holdings Sdn Bhd

Unit G707 Block G Pusat Dagangan Phileo Damansara 1 No 9 Jalan 16/11 Off Jalan Damansara Petaling Jaya 46350 Selangor Malaysia Tel: 603 7958 4600 Fax: 603 79582600

Hup Chong Furniture Sdn Bhd

PT 1652 Batu 5 1/4 Jalan Kapar Klang 41400 Selangor Malaysia Tel: 603 3291 5001 Fax: 603 3291 4621

Hup Lim Enterprises Sdn Bhd

ALT Manufacturers Sdn Bhd

11 Jalan Apollo U5/187 Bandar Pinggiran Subang Seksyen U5 Shah Alam 40150 Selangor Malaysia Tel: 603 7846 8481 Fax: 603 7846 8497

Artmatrix Technology Sdn Bhd always your guide of choice

Benli Machinery Sdn Bhd

Wire Harnesses Electrical

23A Kawasan 16 Jalan Batai Laut Taman Intan Klang 41400 Selangor Malaysia Tel: 603 3341 2950 Fax: 603 3341 7712

Kaliman Timber Corporation Sdn Bhd

Lot 32789 Jalan 5/1A Taman Perindustrian Selesa Jaya Balakong 43300 Selangor Malaysia Tel: 603 8962 2286 Fax: 603 8961 8862

Sublot 18A-20A Pearl Commercial Centre 1st Floor Block C Jalan Tun Razak Kuching 93450 Sarawak Malaysia Tel: 6082 33 2136 Fax: 6082 33 5136

249

Kim Heng Industries Sdn Bhd

PLO 453 Jalan Wawasan 14 Kawasan Perindustrian Sri Gading Fasa II Mukim Simpang Kanan Batu Pahat 83300 Johor Malaysia Tel: 607 455 9340 Fax: 607 455 7343

Kin Ho Timber Manufacturing Sdn Bhd

PTD 13435 3 Jalan Selatan 8 Taman Perindustrian Ringan Pulai Johor Bahru 81300 Johor Malaysia Tel: 607 557 6443 Fax: 607 557 7090

L & T Marketing Sdn Bhd

60-62 Jalan TSB 3 Taman Industry Sungai Buloh Jalan Subang Petaling Jaya 47000 Selangor Malaysia Tel: 603 6157 2158 Fax: 603 6156 9279

Matrix Group Sdn Bhd

193 Jalan SS 2/24 Petaling Jaya 47300 Selangor Malaysia Tel: 603 7958 3717 Fax: 603 7958 2300

Soon Onn Brothers Furniture Sdn Bhd

Lot 168 Jalan Tan Sri Ong Kee Hui Kuching 93350 Sarawak Malaysia Tel: 6082 41 8468 Fax: 6082 61 2029

Sri Anika Enterprise Sdn Bhd

141 Jalan Raja Musa Aziz Ipoh 30300 Perak Malaysia Tel: 605 241 2228 Fax: 605 253 7688

Sykt Chow Fong Trading Sdn Bhd

P O Box 61 Batu 4 Jalan Karak Mentakab 28400 Pahang Malaysia Tel: 609 277 0928 Fax: 609 277 4228

Tai Ye Famewoods (M) Sdn Bhd

Plot 41 Jalan Johan 2/3 Kawasan Perindustrian Pengkalan ll Pusing 31550 Perak Malaysia Tel: 605 366 2333 Fax: 605 366 2666

Tandem Holdings Sdn Bhd

6478 5 3/4 Miles Off Jalan Kapar Klang 41400 Selangor Malaysia Tel: 603 3291 5055 Fax: 603 3291 5060

Up Rate Timber Industrial Sdn Bhd

44 Kawasan Perindustrian Ringan Sungai Siput 31100 Perak Malaysia Tel: 605 598 1960 Fax: 605 598 6960

U-Timber Industries Import & Export Sdn Bhd

22 1st Floor Jalan Bawal 1 Taman Kahang Baru Kahang 86700 Johor Malaysia Tel: 607 788 1928 Fax: 607 788 1901 Connect you with ready buyers

Products & Services Listings Ho Yow Turnparts Industrial Sdn Bhd Lot 2115 Block D Jalan BS7/2 Kawasan Perindustrian Bukit Serdang Seri Kembangan 43300 Selangor Malaysia Tel: 603 8948 4911 Fax: 603 8942 1520

Huat Ming Enterprise Sdn Bhd

16 Likas Baharu Miles Jalan Tuaran Lorong Tongkuzu Kota Kinabalu 88430 Sabah Malaysia Tel: 6088 42 0999 Fax: 6088 42 2222

Imaxtech Electronics Sdn Bhd

15-02-27 Bayan Point Medan Kampung Relau Bayan Lepas 11900 Pulau Pinang Malaysia Tel: 604 645 6080 Fax: 604 645 5312

IMES System Sdn Bhd

72 Jalan TS 6/4 Taman Industri Subang Subang Jaya 47510 Selangor Malaysia Tel: 603 5631 4577 Fax: 603 5631 4599

Indkom Engineering Sdn Bhd

Lot 2 Jalan Asam Jawa 16/15 Section 16 Shah Alam Industrial Area Shah Alam 40200 Selangor Malaysia Tel: 603 5543 2388 Fax: 603 5543 2377

Inverter Technology (Asia) Sdn Bhd

3 Jalan Mutiara 5 Taman Perindustrian Plentong Plentong 81750 Johor Malaysia Tel: 607 356 2200 Fax: 607 355 6200

J Foong Technologies Sdn Bhd

Lot 6 Jalan Teknologi 3/6 Taman Sains Selangor 1 Kota Damansara Petaling Jaya 47810 Selangor Malaysia Tel: 603 6140 8668 Fax: 603 6140 9899

Lee Huat Chai Electrical Works

Multi-Contact Malaysia c/o MultiContact (SE Asia) Pte Ltd

9 Lorong Mohd Tahir 20A Taman Jati Klang 41200 Selangor Malaysia Tel: 603 3374 7735 Fax: 603 3374 7735

3rd Floor Wisma RKT 2 Jalan Raja Abdullah Off Jalan Sultan Ismail Kuala Lumpur 50300 Wilayah Persekutuan Malaysia Tel: 603 2695 3237 Fax: 603 2694 1133

Maxitulin Sdn Bhd

Kami Electronics Industry (M) Sdn Bhd

29 Jalan Puteri 5/16 Bandar Puteri Puchong 47100 Selangor Malaysia Tel: 603 8062 2255 Fax: 603 8062 2277

No 7 Jaln Bakti Larkin Industrial Estate Johor Bahru 80350 Johor Malaysia Tel: 607 237 8405 Fax: 607 237 8406

Multitone Electronics Sdn Bhd

Batu Berendam Free Trade Zone Phase 1 Batu Berendam 75350 Melaka Malaysia Tel: 606 232 8266 Fax: 606 234 7870

MEMC Electronic Materials Sdn Bhd

1 Jalan SS8/2 Sungai Way Free Industrial Zone Petaling Jaya 47300 Selangor Malaysia Tel: 603 7877 3277 Fax: 603 7874 5246

Khind-Mistral Industries Sdn Bhd 2 Jalan Perusahaan 2 Sekinchan 45400 Selangor Malaysia Tel: 603 3241 1991 Fax: 603 3241 1500

MicroEngine Technology Sdn Bhd

Knowledge Energy Solutions Sdn Bhd

300-X Level 2 Jalan Datoâ&#x20AC;&#x2122; Ismail Hashim Sungai Ara 11900 Penang Malaysia Tel: 604-641 4516 Fax: 604-643 9732 Email: enquiry@my-knowledge.com.my URL: www.my-knowledge.com.my Director: Mr ED Kiew Mr / Ms Kim Lee Business: Energy effieciency, power savings management reactive power solutions. Power quality analysis.

Infrared thermography services. Electrical recalibration and maintenance services. 3640 ( See Advertisement Page 184 )

Unit 13-01 Block B Phileo Damansara 2 Section 16 Jalan 16/11 Petaling Jaya 46350 Selangor Malaysia Tel: 603 7874 5246 Fax: 603 7957 2332

Mobile Concepts (M) Sdn Bhd

58 Jalan TSB 9 Taman Industry Sungai Buloh Sungai Buloh 47000 Selangor Malaysia Tel: 603 6156 0118 Fax: 603 6157 8489

Panasonic Malaysia Sdn Bhd

Lot 10 Jalan 13/2 Petaling Jaya 46200 Selangor Malaysia Tel: 603 7809 7888 Fax: 603 7958 4977

PenangStore.com

2204-05 22nd Floor Ismail Central Plaza 34 Jalan Sultan Kuala Lumpur 50250 Wilayah Persekutuan Malaysia Tel: 603 2143 3829 Fax: 603 2144 3829

Muar Tools Manufacturer Sdn Bhd

NLH Technology Sdn Bhd

16 Jalan Betek Taman Sri Jaya Bukit Mertajam 14000 Pulau Pinang Malaysia Tel: 6016 444 3736

Progana Corporation Sdn Bhd

BDS Lot Plo 112 Jalan Perindustrian 9 Kawasan Perindustrian Tanjong Agas Muar 84000 Johor Malaysia Tel: 606 951 2341 Fax: 606 952 6378

Lot 2637 Kampung Baru Sungai Buloh 47000 Selangor Malaysia Tel: 603 6157 8148 Fax: 603 6156 9149

Energy Management Equipment

ULTRA

Save a minimum of 11% of power through current optimization* *on inductive loads, 8% on complex loads (inductive and resistive)

Revolutionary Technology

Easy installation

ULTRA is the premier Electric Current Optimization system that compensates for energy that is normally lost in Alternating Current (AC) systems without dropping voltage. A magnetic interaction in the ULTRA generates magnetic wave energy that is supplied to the AC circuit optimizing its electron flow.

Rapid ROI

Low maintenance exclusive distribution by Knowledge Energy Solutions Sdn. Bhd. certified by:

184

www.my-knowledge.com.my

Pembangunan Sumber Manusia Berhad (545143-D) Do You Know?

The Human Resources Development Fund (HRDF) is administered by Pembangunan Sumber Manusia Berhad (PSMB), an Agency under the Ministry of Human Resources, via the Pembangunan Sumber Manusia Berhad Act, 2001.

The HRDF was established in 1993 with the aim of developing quality human capital and a world-class workforce in achieving a high income economy based on knowledge and innovation in the nation’s quest to attain the status of a developed country by the year 2020.

Vision To be the Driving Force in Training and Development of the Workforce.

Mission To Enhance the Knowledge and Skills of the Workforce Through Effective Management of the Human Resources Development Fund.

Objective To encourage employers covered under the Pembangunan Sumber Manusia Berhad Act, 2001 to retrain and upgrade the skills of their employees, apprentices and trainees in line with their business needs and the development strategy of the country Excerpt from Budget 2014 Speech “HRDF will provide RM400 million for registered companies to give opportunities to employees to enrol in upskilling and reskilling programmes. The allocation can also be used by these companies to train apprentices and future workers”.

Y.A.B. Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak Prime Minister of Malaysia

Call 1800 88 4800 now visit www.hrdf.com.my or drop by at any of our offices below: Main office

PEMBANGUNAN SUMBER MANUSIA BERHAD (545143-D) (Ministry of Human Resources)

Wisma HRDF, Jalan Beringin Damansara Heights, 50490 Kuala Lumpur, Malaysia.

Fax: (03) 2096 4999 PSMB Website: www.hrdf.com.my

“Everyone Can Learn!”

NORTHERN BRANCH Tingkat 2, Wisma PERKESO Lebuh Tenggiri 2, Bandar Seberang Jaya 13700 Pulau Pinang Tel : 04-397 0779, 04-398 7350, 04-398 0081 & 04-398 4697 Fax : 04-398 7350

JOHOR BRANCH No. 50 & 50-01, Jalan Setia 3/7, Taman Setia Indah, Johor Bahru, 81100 Johor Tel : 07-353 8121, 07-353 8131 Fax : 07-353 8217

MELAKA BRANCH Lot 4-04, Wisma UTC Jalan Tan Chay Yan Off Jalan Hang Tuah 75300 Melaka Tel : 06-282 1537 Fax : 06-282 1536

Like us on SABAH BRANCH Lot B5, Tingkat 5 Bangunan KWSP Kota Kinabalu 88598 Sabah Tel : 088-260 114, 088-263 114 Fax : 088-252 114

: MY HRDF

SARAWAK BRANCH No. 6, Lot 2338, Tingkat 1 Bormill Estate Commercial Centre Jalan Tun Ahmad Zaidi Adruce 93150 Kuching Sarawak Tel : 082-254 721, 082-254 564 Fax : 082-254 795