MRCA NEWS - Retailing : Franchising : Branding - Vol.1 No.1

Content

Pg5

Credit Page MRCA Board Members & MPH

Pg7

Publisher’s Note Message from President of MRCA, Dato’ Nelson Kwok - His Vision for MRCA

Pg9

MRCA Member’s Logo Page

8

Cover Story MIDAS TOUCH – Poh Kong’s Executive Chairman and Group Managing Director, Dato’ Eddie Choon shares his secret for success in the retail world

Pg

8

Focus Franchising – Interview with En Ismainur Bakeron – Franchise Divison, Ministry of Domestic Trade , Co-operative & Consumerism

12

Licensing – Interview with Lydia Jominin & Saharudin Sahad, Smart Franchise

18

Retail– Interview with Mr HC Chan, Malaysian Malls Association

22

Retail– Interview with Danny Goh, MCT Consortium

26

Feature– Dato’ Lawrence Chan, Personal Development Leadership Management Corporation

30

B-Loyalty

64

Quill’s Q City Mall

66

Pg

2

22

∣MRCA NEWSLETTER∣MAR-MAY 13’

Pg

26

New Members

A Big Welcome To Our New Members Bloyalty Sdn Bhd Rewarding your loyalty!

32

Gift N Logo Sdn Bhd Corporate gifts for any special event

32

Job Hunt Sdn Bhd Human Resources Solutions at hand

33

Planetpop Marketing Sdn Bhd Popping its way into the market

33

YFS Corporate(M) Sdn Bhd The latest ‘IN’ fashion trends

34

Pg

37 For The Record

Updates

MRCA member’s latest news and happenings

Reaching Out

Focus Point Holdings Berhad Focus Point focuses on what matters

36

KK Supermart & Superstore Sdn Bhd A great year for KK Super Mart

36

SEG International Berhad Count on SEGI UNIVERSITY for a quality education

37

Sunrider International (Malaysia) Sdn Bhd Sunrider offers a taste and see experience

37

Gallery

See what we’ve been up to - 20th Anniversary & Awards Banquet - 1st Master Class Series - MRCA’s Got Talent - Business Mission to Cambodia & Vietnam - Intrade - Visit from TAR College Allumni - MRCA and TAR College Collaboration - Chinese New Year Banquet 2013 Courtesy Visits: - Ruyi Holdings Sdn Bhd - FMC Greenland Sdn Bhd (BMS ORGANICS) - Mr Clean Sdn Bhd

58

Keep Up To Date with MRCA’s Monthly Meetings

38 40 42 43 44 46 47 48 50 50 50

MRCA Gives Back!

“We make a living by what we get, but we make a life by what we give.”

- Winston Churchill Hari Raya Visit To Rumah Titian Kasih

60

MRCA CNY Banquet 2012 ‘Charity Karaoke’

60

Visit to Ti-Ratana Welfare Society 2012

60

MRCA 20th Anniversary 20 Charitable Homes Donation

60

MRCA Scholarships for UPSR & PMR 2011

62

Deepavali Visit to Persatuan Penjagaan Kanak Kanak Cacat

62

Christmas Visit to Rumah Caring

62

Visit to Ti-Ratana Welfare Society 2013

62

Talking Point

What do you think? How important are training and education in the retail industry today?

68

Terry Lee (BMS Organics) Roys Tan (Occubite Resources Sdn Bhd) Shirley Tay (Sunrider International) Ricky Thye (101 Haircare)

Launch Pad

Exploring new market trends in the retail industry through training and education -

Mobile App Tech GST Overview Retail Sales Master Success Criteria for Premium Commercial Development - Budget Announcement 2013 - Consumerism Seminar - Tax Audit and Investigation

51 52 53 54 55 56 57

38

Pg

MAR-MAY 13’∣MRCA NEWSLETTER∣

3

LETTER

MRCA IS PUBLISHED BY

Malaysian Retailer-Chains Association

No.15-6, Blk A, Jaya One, No 72A, Jalan Universiti, 46200, Petaling Jaya.

Tel: 603-7955 3526 Fax: 603-7955 3525 Website: http://mrca.org.my

MRCA IS PRODUCED FOR MRCA BY

MPH Group Magazine (M) Sdn Bhd (771396-H)

Lot 1, 1st Floor, Bangunan TH, No. 5 Jalan Bersatu, Seksyen 13/4, 46200 Petaling Jaya, Selangor DE, Malaysia Tel: 603-7960 7334 Fax: 603-7960 3278 E-mail: magazines@mph.com.my

MALAYSIAN RETAILER-CHAINS ASSOCIATION Patron Y.A. Bhg Tun Dr. Mahathir Bin Mohamad

Immediate Past President Dato’ Tay Sim Kim OSIM (M) Sdn. Bhd.

Board of Advisors Y.B. Dato’ Mustapa Bin Muhamad Y.B. Dato’ Sri Liow Tiong Lai Y.B. Senator Tan Sri Datuk Lee Hock Seng JP

Deputy President Dato’ Liaw Choon Liang J.P Focus Point Holdings Berhad

President’s Advisors Dato’ Dr. Jennifer Low JP Dato’ Sri Clement Hii Mr Low Jee Keong

MPH GROUP PUBLISHING General Manager Kuah Sze Mei

Senior Marketing and Sales Executive Lilian Ng

Vice Presidents Dato’ Dahlan Mohd Rashid DR Group Holdings Sdn. Bhd.

Marketing Executive Juan Margrita

Dato’ Garry Chua Rotol Food-Chain (M) Sdn. Bhd.

Founder President Dato’ Eddie Choon Poh Kong Holdings Berhad Life Time Honorary President Mr Albert Chiang Bonia Corporation Berhad

MPH GROUP

Chief Executive Officer Dato’ Ng Tieh Chuan

CREATIVE

Head of Department Amy Heng

Ms Valerie Choo Grand Surf Sdn. Bhd.

Deputy Creative Head (Magazine) Stephanie Yap

Secretary General Mr Andy Goh Fujihome Global Berhad

Mr Lee Hwa Cheng Sinma Jewellery Centre Sdn. Bhd.

Deputy Secretary General Ms Shirley Tay Sunrider International (M) Sdn. Bhd.

President Dato’ Nelson Kwok T.T. J.P. Nelson’s Franchise (M) Sdn. Bhd.

Treasurer General Mr S.Y. Cheah Golden Scoop Sdn. Bhd.

Senior Creative Designers Ng Seng Chee, Ngan Pooi Kuan Creative Designers Norshazila Isamuddin, Lam Po Yee

CIRCULATION & RETAIL DISTRIBUTION General Manager Tai Kwai Meng

General Manager (Finance) Kelvin Chong Council Dato’ Dr Chai Kee Kan KK Supermart & Superstore Sdn. Bhd. Mr Henry Yip Choong Hung Dragon-i Restaurant Sdn.Bhd.

Legal Advisor Dato’ Manjit Singh Manjit Singh Sachdev Mohammad Radzi & Partners.

Mr Lai Sia Ling Econsave Cash & Carry (PD) Sdn.Bhd.

Mr Ringo Low Ringo Low & Assoc.

Mr Ching Kok Cheong Fella Design Sdn. Bhd.

Honorary Auditor Dato’ Raymond Liew McMillan Woods.

Mr Lawrence Ooi In Sim PJ Uniform Sdn.Bhd.

Mr Ler Leong Keh IBDC (M) Sdn.Bhd.

Mr Bruce Lim Aun Choong SEG International Berhad.

Mr Ricky Thye Kok Lam Tangible Aim Sdn.Bhd. Mr Brian Tham Jee Ping Watatime (M) Sdn.Bhd. Ms Choi Wei Yee Sunlight Taxi Sdn.Bhd.

Advertising Enquiries

V S Ganesan / Ng Wee Ming Tel: 603-7960 4278 Fax: 603-7960 3278 E-mail: ganesan@mph.com.my

Manager Koh Sook Khuen

MPH GROUP MAGAZINE

Chief Operating Officer Swaminathan MV

Contributors Patrick Pillai

General Manager V S Ganesan

Sales Managers Ng Wee Ming Faridah Ismail Rebecca Gun

Senior Editor Vimala Seneviratne Editor Aleyann Matthews Production Editor Shamsul Hidzry O Khairuddin

Assistant Sales Manager Keley Lam

FINANCE

Accountant Barbara Tay

Printer MPH Group Printing (M) Sdn Bhd (142270-H) No 31, Jalan 2/148A, Taman Sungai Besi, Industrial Park 57100 K.L Tel: 603-7987 0966 Fax: 603-7984 0966 E-mail: sales@mphprinting.com.my

Distributors (Malaysia)

MPH Distributors Sdn Bhd (5048-A) Ground Floor, Bangunan TH, No. 5 Jalan Bersatu, Seksyen 13/4, 46200 Petaling Jaya, Selangor DE, Malaysia Tel: 603-7958 1688 Fax: 603-7958 1623 E-mail: distributors@mph.com.my Online Partner

All authors automatically agree to indemnify MRCA and MPH Group Magazine Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. Submit your articles to annie9979@ gmail.com. All rights reserved. Copyright © 2013 by MRCA and MPH Group Magazine Sdn Bhd. No part of this publication may be reproduced in any form without NEWSLETTER∣MAR-MAY 13’ in the articles are those of the authors and do not necessarily reflect the views of MRCA and MPH Group prior∣MRCA written permission from the publisher. The views expressed Magazine Sdn Bhd. MRCA and MPH Group Magazine Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.

President’s Note

world. Our magazine covers information and articles on franchising, retailing and licensing and I am proud to say that it is the first of its kind in Malaysia.

For our cover story this issue, the spotlight is on Dato Eddie Choon, Executive Chairman of Poh Kong Holdings Berhad and the founder president of MRCA. Dato’ Eddie’s success story is one of inspiration. It is a story of how hard work, determination and perseverance pay off in the business world. It is also through his vision that MRCA gained the reputation as one of the most influential retail bodies in globalising Malaysian chain retailers and franchisors.

In continuing with this vision, it is my hope that through this magazine, we are able to broaden our exposure and help promote a supportive environment to build retail businesses and pool ideas, experiences and efforts to tap on various opportunities in Malaysia as well as abroad.

To all our members and readers, thank you for your continuous support.

This magazine represents team effort and the dedicated team at MRCA and I look forward to moving forward and upward with you.

We at MRCA also take this opportunity to wish all of you the very best in the Year of the Snake. May it grant you success in all your business and personal endeavours.

From the President

Dato’ Nelson Kwok JP President, Malaysian Retailer-Chains Association

G

reetings from MRCA and a very Happy and Prosperous New Year to all!

This year, I am pleased to say we are off to a thunderous start with our first full-fledged magazine on the shelves. The aim of this magazine is to create awareness, not only for MRCA members but for the general public on the activities and business opportunities available in the retail MAR-MAY 13’∣MRCA NEWSLETTER∣

5

200 Market Market Leaders Leaders & & Popular Popular Brand Brand Names Names 200 10,000 Retail Retail Outlets Outlets Nationwide Nationwide 10,000 100,000 Job Job Opportunities Opportunities 100,000

PANTONE 341 MIX PANTONE 165 MIX PANTONE 485 MIX

preferred logo

LOGOTYPE AND USAGE GUIDELINES LOGO ELEMENTS

P R I M A R Y

E L E M E N T S

The Chinese logotype I

T H E C H I N E S E LOG O T Y P E

The English logotype I The Tree and Roots I T H E S K Y B OX S E C O N D A R Y

T H E T R E E A N D R O OT S

E L E M E N T S

The Sky Box - Ivory I The Earth Box - Burgundy I

T H E E A R T H B OX

P R O C E S S

C O L O U R

Eu Yan Sang Ivory I c6 m 8 y2 3 k 0 P A N T O N E

Eu Yan Sang Ivory I pm s 4 6 8 c

P R O C E S S

C O L O U R

Eu Yan Sang Burgundy I c0 m 1 0 0 y6 5 k 4 7 T H E E N G L I S H LOG O T Y P E

P A N T O N E

Eu Yan Sang Burgundy I pm s 2 0 2 c

H O R I Z O N T A L

S I G N A T U R E

P re fe r re d A p p l i c a t i o n: The corporate logo MUST be used as a whole, comprising all elements.

C . 5 • P. 2

I

EU YAN SANG BRAND

®

COLOR CODE:

PANTONE 187

C: 0

M: 100

Y: 79

K: 20

R: 196

G: 18

B: 48

Pantone 209

The people's paper

Group of Companies retail design

TMS Art

retail design

TM

Royal Blue in RGB : 0 , 14, 40

Pantone 370 C Pantone 485 C

As of 28 February 2013

Growing Opportunities Opportunities Together!

Together! We We Can Can Do Do It! It! Growing

CoverStory

MIDAS

TOUCH

By Aleyann Matthews

Dato’ Eddie Choon Yee Seiong, Executive Chairman and Group Managing Director of Poh Kong Holdings Berhad and founder President of MRCA, shares his secret for success in the retail world.

F

or many, Poh Kong is a must-visit place before a family wedding or special occasion. Since 1976, Poh Kong’s first outlet in PJ State has seen many a blushing bride as she

8

meticulously chose her jewellery for her big day. It was in this small space that Dato’ Eddie Choon, then a 21-year-old, built his jewellery business from the bottom up.

All of us are born with different talents and for Dato’ Eddie Choon it was for designing and the arts. “My father introduced me to the jewellery business because he knew my love for design,” he says.

Poh Kong opened its first outlet at Jalan 52/4, Petaling Jaya in a 55-square-feet rented space. For 10 years, Dato’ Eddie worked behind the counter meeting customers and drawing out jewellery designs with a pencil on just a piece of paper. Today, his passion for design combined with his sharp business acumen has taken the company to greater heights. With over 104 branches throughout the country, Poh Kong is regarded as Malaysia’s largest jewellery retail chain store and is publicly listed in Bursa Malaysia.

As with any new business, he admits that it wasn’t smooth sailing from the start.

He faced many obstacles when he first started out. In the late 70’s, the goldsmith trade in Petaling Jaya was very competitive but Dato’ Eddie believes his hard work and honesty prevailed and he managed to come out on top. When asked about the name Poh Kong, he explained that ‘Poh’ means precious stone and ‘Kong’ means sparkle, hence the name seemed appropriate for a jewellery store.

Is there a secret for the company’s success? Dato’ Eddie explains that one of the reasons Poh Kong has become an established and popular jewellery brand is because of its impeccable service to all their customers.

“When customers came with precious stones and wanted to have them set, I drew the design within 10 minutes, quoted the price and told them when it would be ready,” he explains.

∣MRCA NEWSLETTER∣MAR-MAY 13’

Quality of Jewellery Poh Kong also prides itself in the quality of its jewellery. “We are consistent in our quality in terms of gold content, workmanship and design,” he adds. Apart from developing their own in-house brands, Poh Kong has ventured into distributing worldrenowned international jewellery brands that include Disney, Schoeffel luxury pearls from Germany, Luca Carati, Verdi Gioielli, Moraglione from Italy and Angel Diamond.

“Our customers don’t mind paying a little extra to own international branded jewellery,” says Dato’ Eddie.

Poh Kong strives to keep the designs current and has incorporated white gold and platinum for the younger generation.

However, yellow gold is still the bestseller.

One of the most significant things the brand has achieved is how it has transcended across our multi-cultural Malaysian society.

For many regardless of race, Poh Kong is the choice when it comes to purchasing jewellery.

It continues to introduce new product designs and improve service to attract and retain new customers. “We have created inhouse brands to cater for the different races in Malaysia. For our Malay customers we have the Anggun collection, for our Indian customers we have a special range of Bombay jewellery and for our Chinese customers we have the Happy Love range that includes Feng Shui jewellery pieces.”

Many customers who frequented Poh Kong in the early years were addressed by their name. “These days I have customers who are the 3rd generation of my first customers.

Their children and grandchildren come back to Poh Kong to purchase their jewellery,” he says with pride. “Many of my customers have become good friends throughout the years,” he adds.

privacy. “While many would hang photos of famous people who come to their store, I prefer not to do that. My customers’ privacy is important and I want them to feel comfortable coming to Poh Kong to purchase their jewellery,” he says.

Dato’ Eddie also attributes the success of Poh Kong to support from his family members and the dedication and hard work of all his staff. Ruby Lee, Promotion Manager at Poh Kong Holdings Berhad and one of Dato’ Eddie’s long serving staff members said, “Those days we didn’t have industry training. Whatever we learned, we learned on the job from our boss. In the early days, working long hours to get the job done was normal. If we were in by 9am, Dato’ would be in about the same time too. If we left the store at 9pm that was when Dato’ left. We worked as a team.”

Training & Education are Essential However, in today’s competitive market, training and education are essential and Poh Kong engages the services of expert trainers from overseas to provide product training for all the staff. Poh Kong also provides extra benefits for their employees that include accommodation and meals, jewellery wedding gifts and even bereavement expenses.

This is one of the reasons Poh Kong has many long serving staff. Some of Poh Kong employees have been with the company for over 30 years. Says Lee, “Dato’ is a very humble man and treats all of us as equals. After serving customers he would wipe down the countertops himself. That’s the kind of boss he is.”

Create Network One of the founding members of MRCA, Dato’ Eddie served as the president for seven years.

“The objective of founding the MRCA was to get the owners of retail chains in Malaysia to share their knowledge and experience and to grow and prosper together,” he explains.

Today, MRCA is made up of a very dynamic group of established retailers and has among its members some of the most famous brands in the country.

“In the business world, we need to establish a wide network with top business leaders to create synergy and improve,” he adds. Being a member of MRCA has also helped him expand his own business as the association is recognised by mall managements and land owners. They actively engage MRCA members as tenants.

“New malls would approach MRCA members and many new business relationships were established,” Many retailers want to become MRCA members when they learn they have a better chance for ideal locations to expand their businesses.

As for expanding his business further, he says he takes each day as it comes. “If there is an invitation that is too good to turn down, I will accept the business opportunity extended

Quality of Service Dato’ Eddie stresses the importance of good service. “We have customers who bring jewellery purchased by their parents or grandparents from us, for servicing,” he adds. He even had some of his older customers who came to the shop to show him hand written receipts from Poh Kong, “It brought back a lot of memories. We used to write the receipts by hand those days, long before computers came to the picture.”

Poh Kong has attracted many affluent Malaysians throughout the years but Dato’ Eddie is particular about protecting their MAR-MAY 13’∣MRCA NEWSLETTER∣

9

to me.” Three of his five older children are in the business with him while two others are completing their formal education.

Advice for Entrepreneurs His advice for up-and-coming entrepreneurs?

“Always keep learning the business and think out-of-the-box to develop and differentiate your products from your competitors. Don’t worry too much about the competition because with strategically positioned products you will win customers.

“Also, focus on your business plan and have lots of patience. Many young entrepreneurs have the drive but they dabble in too many projects. As for me, even after 37 years, I have only one business,” he adds.

Dato’ Eddie is a firm believer that honesty is an important element in creating a trusting relationship with customers. “Show your skills, passion and commitment to gain trust. You must also be willing to sacrifice a lot of your time, sometimes you must work 16 hours a day with no holiday,” says Dato’ Eddie who only now makes time to pursue his love for travel, golf and fine dining. He also spends quality time with his family. “I enjoy designing and have fun working with interior designers for the 104 Poh Kong outlets nationwide,” he says. MN

10 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Visit us at: www.pohkong.com.my www.facebook.com/pohkongjewellers

POH KONG’S Favourite Picks

Wealth & Peace 22K Yellow Gold with A grade Jade

The ‘Wealth & Peace’ pendant comes in two sizes, and it is designed to infuse two auspicious elements – the peony flower and vase. The front of the pendant features patterns of the peony while the Chinese characters for ‘wealth’ and ‘peace’ are carved onto the back of the pendant. Encased within the gold casing is a round piece of Grade A jade.

Trendy White/Rose/Rose Gold Two rings from the I Love LOVE Collection. These trendy rings come in 18K rose gold/black gold and white gold with diamonds, and feature hearts connected to symbolise everlasting love.

Schoeffel Luxury Pearl Since 1921

Collier collection – Multicolourd Pearls Strand The necklace, the epitome of pearl luxury, was created using different kinds of pearls cultivated in the South Sea.

MORAGLIONE 1922 SOFIA collection

This collection features three different rings made with yellow, pink and white diamonds encrusted around the outer layer.

The gem stones feature three different combinations – London blue topaz with mother-of-pearl, onyx and rutile quartz, ruby and amethyst.

Ring of Riches 22K Yellow Gold with A Grade Jade

The ‘Ring of Riches’ is a unique ring that has several auspicious elements combined into its design. On one side of the ring, a snake coils itself around a rounded piece of natural Grade A jade to symbolise abundance. A honeycomb pattern is featured on the other side of the ring, and symbolises an abundance of food and clothing. Specially designed for men, this ring represents prosperity.

MAR-MAY 13’∣MRCA NEWSLETTER∣

11

Focus Launch of 1Malaysia Franchise Station on 18th October 2011.

From left, Mr Zolkifli (Long Burger), Mr Razali (Long Burger), YB Dato’ Sri Ismail Sabri bin Yaakob, Minister of MDTCC, YB Datuk Hjh Rohani bin Abdul Karim and YB Dato’ Tan Lian Hoe, Deputy Ministers of MDTCC.

Franchising, the way forward for your business Ismainur Hadi bin Amat Bakeron, Senior Principal Assistant Director for the Franchise Division of the Ministry of Trade, Co-operatives and Consumerism speaks to ALEYANN MATTHEWS about franchise opportunities for Malaysian businesses.

F

ranchising began in the 1850’s when Isaac Singer was looking for ways to market his sewing machines to other parts of the country. He started selling licenses to entrepreneurs to sell and provide training for Singer sewing machines across the US. In 1955, Ray Kroc took over a chain of food stores that is known today as McDonalds, currently recognised as the most successful franchise brand in the world.

Over the years, franchising has proven to be a popular and lucrative business option for many. Many Malaysian businesses have chosen franchising as the way forward, but is it the best choice for your business? Find out how the Franchise division can help you make your choice, register your franchise, help with financial aid and develop your business.

What is the role of the Franchise division?

In 1994, when Tun Dr Mahathir Mohamad went on an official visit to South Korea, Japan and China he saw that franchising worked as a business opportunity in those countries. He took the idea and developed it and the franchise division was formed. Our role is to regulate, develop and nurture the franchise industry. We offer entrepreneurs two development programmes, the first, Franchise Development Programme (FDP) is a marketing programme based on the Malaysia Incorporated concept that aims to develop small

12 ∣MRCA NEWSLETTER∣MAR-MAY 13’

and medium sized entrepreneurs (SMEs) in the commercial, service and industrial sector. Through the FDP, the franchisor will provide comprehensive rights to market/ distribute to SMEs/franchisee to operate a viable and competitive business based on a mutually agreed contract. The second, Local Franchise Development Programme (LFDP) is a programme that provides consultation to local operators that have products with potential to be franchised but needs help and advise on the franchise process.

Franchise Developments Programmes Franchise Development Programme(FDP) Purpose

Requirements

A marketing programme based on the Malaysia Incorporated concept that aims to develop small and medium sized entrepreneurs (SMEs) in the commercial, service and industrial sector.

All franchisor or master franchisee registered under section 6 Franchise Act 1998 are eligible to be considered in Franchise Development Programme by fulfilling the following requirements: • completed BPF 1 form that has been verified.

• audited financial statement from the last 3 years that has been verified and proven viable.

• present a profit/loss projection of the franchisee company for 5 years that has been reviewed and proven to be reasonable.

• own at least 1 franchisee outlet owned by a Bumiputera company that conform to the 30% Bumiputera ratio as stipulated.

How successful is the franchise business here in Malaysia?

Since 1994, we have 643 local franchises.

Out of this, 34 per cent are from the food and beverage sector. We have 46 local franchises that have penetrated 50 countries worldwide. Overall, there are 1424 outlets of Malaysian brand names that are present all over the world.

Is it easy for Malaysian franchise brands to tap the International market?

There is a need to branch out Internationally especially for the food and beverage brands that may experience some saturation in the market locally. For example, as far as kopitiams are concerned, we have quite a few brands in the market already so they have to venture out to develop their brands. Bangi Kopitiam has successfully made it big outside of Malaysia with 18 outlets in Indonesia.

But how will I know if my business is suitable for franchise?

Those days, franchise was seen as an expensive business option or that it was only available for International brands.

Today, we have small businesses like local burger stalls that are successful franchises.

However, to consider franchising, you have to ensure your brand is strong. Appropriate market research on the sustainability of your brand as a franchise must be explored.

Once you have made your decision we will help build your franchise business by offering financial aid through our financial schemes as well as training and education through our development programmes.

Local Franchisor Product Development Programme (LFPDP) Purpose A programme aimed at providing guidance to local operators for products that have the potential to be franchised.

Eligible operators will be guided from the early stages until the opening of a prototype outlet. The entire consultancy course will be fully borne by the MDTCC*.

Requirements

Development Period

Application for product development will be considered if:-

Time Period and Product Development Phases:

• business is original/ from scratch.

• potential to be franchised.

• product is ready to be converted into a franchised product.

• collaboration between PNS and operators.

• business has the potential to be franchised.

Phases take between 7 – 10 months: • preparation of proposal to franchise a business (screening).

• preparation of franchise concept.

• research on prototype outlet.

• development of franchise package.

• launch of prototype franchise.

*The Ministry of Domestic Trade, Co-operatives and Consumerism Only open to bumiputera businesses

What are the drawbacks of choosing franchising as a business option?

Ensuring quality control over all your franchisees is the hardest part. If franchisees fail to follow the standard operating procedure then it may affect your brand name.

MAR-MAY 13’∣MRCA NEWSLETTER∣ 13

How do I register my Franchise?

Since 1 January 2013 applications can be submitted online via our e-services on our website and it takes only seven days unlike before where it took two to three months to process. A franchise application will require audited accounts spanning three years and your business must be registered as a sendirian berhad, not an enterprise.

Could you tell us more about the financial aid offered?

We provide three schemes that provide financial aid. The Franchise Development Aid Scheme (FDAS) helps current franchisors ease their financial burden and helps expand their business. Under this scheme, franchisors must provide their own capital. The second scheme offered is the Franchise Financing Scheme (FFS) where entrepreneurs are able to obtain financing through a financial institution either CIMB Bank Berhad or Maybank Berhad with a low interest rate of three per cent. Maximum loan offered for this scheme is RM7.5 million. The third scheme is the Franchise Micro-Financing Scheme that aims to provide small financial assistance (micro-franchising) to the local franchisee of low and middle income with a maximum financing up to RM50,000.

Financial Schemes Available for Franchisors Franchise Development Aid Fund (FDAF) Purpose

Eligibility

• provides assistance to individual/ entrepreneurs /local companies to ease their burden, as an incentive and provide encouragement to franchise products from local or international businesses in Malaysia.

• franchisors are required to provide their own capital.

• company must be registered under Franchise Act 1998.

• franchises local product/business or wish to be a master franchisee.

• must take part in the Franchise Development Programme (FDP).

• company that is registered with Registrars Of Companies, Malaysian Business Commission/ Appoint consultant firms that are registered with the Ministry of Finance.

• companies without appointed consultant firms may also apply.

• application forms must be submitted.

14 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Requirements • company must be fullyowned by a Malaysian citizen and already has a prototype outlet that is viable and has at least 1 Bumiputra franchisee.

• one company is eligible to receive assistance for 1 product.

Contact To Apply Managing Director Perbadanan Nasional Berhad (PNS) Level 13A, Menara PNS Tower 7, Avenue 7 Bangsar South City No.8 Jalan Kerinchi 59200 Kuala Lumpur 03-208207788 1 800 22 1767 Website: www.pns.com.my Open to all Malaysian franchisors and master franchisees

Franchise Financing Scheme (FFS) Purpose • obtain full financing through specific financial institutions ie CIMB Bank Berhad & Maybank Berhad • interest does not exceed 1.5% on Basic Loan Rate (BLR) of loan provider institution. Real financing cost that is borne by the borrower will be reduced as much as 2% • 6%, whereby MDTCC through CGC will pay that loan interest rate differential.

• CREDIT FACILITY: - Asset Purchasing - Term Loan - Revolving Capital - Overdraft - Trade Financing

Eligibility • have to register with MDTCC under the Franchise Development Programme. Upon confirmation from *MDTCC, borrower’s application will be sent to financial Institution for assessment and approval. The **CGC team will issue a Guarantee Letter for approved applications.

Requirements • business is owned by a citizen or under Malaysian citizen control-registered with Malaysian Business Commission/ local authorities.

• net asset value or shareholders’ funds does not exceed RM 1.5 million.

• total current loan does not exceed RM 7.5 million.

• good loan track records with financial institutions/ government agencies.

• borrower must be directly involved and in a fulltime business.

• must have a specific business location with permit/license that is legal.

Contact To Apply Credit Guarantee Corporation Malaysia Berhad Level 13-16 Bangunan CGC Kelana Business Centre 97, Jalan SS 7/2 47301 Petaling Jaya.

Tel: 03-7880 0088 Faks: 03-7803 0077

*The Ministry of Domestic Trade, Co-operatives and Consumerism **Credit Guarantee Corporation

Franchise Micro-Financing Scheme Purpose • help potential entrepreneurs from middle-income group venturing into franchise businesses and generate additional income which offers a maximum funding up to RM50,000.

Eligibility • 21 years old and above and not more than 65 years on the date of application; • open to local franchisees with a local franchise businesses registered with Registrar of Franchise Application should be made through a limited company / partnership / enterprise; • applicants are entrepreneurs who are owners / operators of the business; • letter of offer from the local franchisors.

Requirements • registered with Companies Commission of Malaysia (CCM); • 100% locally owned business (sole proprietorship / partnership / private ltd.)

• not blacklisted by financial institutions (*CCRIS record shows outstanding installments not exceeding 2 months); • not declared as a bankrupt; • did not deal with any proceedings in court; • business conducted are shariah-based business;Financing exceeding RM10,000 must obtain credit takaful coverage appointed by PNS.

Contact To Apply Perbadanan Nasional Berhad (PNS) Level 13A, Menara PNS Tower 7, Avenue 7 Bangsar South City No.8 Jalan Kerinchi 59200 Kuala Lumpur 03-20827788 1 800 22 1767 website: www.pns.com.my

MAR-MAY 13’∣MRCA NEWSLETTER∣ 15

Briefly explain some of the regulatory processes that the Franchise Division undertakes?

Loopholes in the Franchise Act 1998 were fixed with the new act – Franchise Act 2012 Amended. The amended act states that now, it is the franchisors responsibility to register their franchisees. The reason this is important is so we are able to monitor the actual numbers of franchisees. In the past, anyone could claim to be franchise consultants and charge excessive amounts for their services.

The amended act forces genuine franchise consultants to be registered with us. This is to ensure our industry upholds ethical practices. There will also be punitive action taken against individuals who call their business a ‘franchise’ without registering it first.

Do you provide training and education?

Yes. We have road shows that take us to cities and smaller towns across the country to educate people on franchising and opportunities we have to offer them.

What advice do you have for those who want to franchise their business?

Franchising is a great business model for those who have the discipline and time to see it through. It is definitely a good opportunity for those who want to expand their business. Come and have a chat with us, we will help you through the process from registration and even financial aid if you need. However, first you must ensure that your business is stable and ready to be franchised. MN

For more questions and information on franchising opportunities and financial aid available please contact: En Ismainur Hadi Bin Amat Bakeron Senior Principal Assistant Director Franchise Development Division

Level 1, Tower Block, No 13, Persiaran Perdana, Precinct 2 Federal Government Administrative Centre 62623, Putrajaya, Malaysia Tel: 603-8882 6512 Fax: 603-8882 5583

16 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Detailed Information available @ www.franchisemdtcc.gov.my Like us on facebook: Francais Malaysia Follow us on twitter: Francais_MY

“FRANCHISE & LICENSING IN MALAYSIA” Are you currently running a profitable business?

Ever wonder how to duplicate your business model using a franchise system?

Is your business suitable to use licensing method instead?

… then this session is for YOU! It’s time to bring your business to the next level.

Franchising is the way forward! REGISTER NOW! DATE

TIME

TITLE

VENUE

FEE

SFP Training Center, B-03-13A, SOHO, Empire Shopping Gallery, Jln SS 16/1, 46500 Subang Jaya, Selangor

RM48/ Pax

28 Mar 2013 18 Apr 2013 9 May 2013 30 May 2013 20 Jun 2013

2pm – 5pm

CONVERTING YOUR BUSINESS INTO A FRANCHISE (English session)

FRANCAISKAN PERNIAGAAN ANDA (Sesi Bahasa Melayu)

RSVP your seats at least 7 days before the training date by:  SMS to 010-250 6848 (Your name_hp no_email_no of pax_MRCAN)  EMAIL to training@smartfranchise.com.my (Your name, hp no, email, no of pax, CODE: MRCAN) T&C:

1.

2.

3.

4.

5.

6.

7.

8.

Members of Malaysian Retailer Chain Association (MRCA) are entitled for 30% off the fee.

Payment of fee must be made at least 3 days before the training date.

All payment must be banked in to:• SMART FRANCHISE PARTNER SDN BHD • MAYBANK ACC NO. 5147 2112 1062 Proof of payment must be submitted to SFPSB via: • Scan email to training@smartfranchise.com.my Seats booked is transferrable, but non-refundable.

Notes & light refreshment is provided. No lunch provided.

The management reserve the rights to change the date, venue & content.

Limited seats are available.

Brought to you by, SMART FRANCHISE PARTNER SDN BHD (804238-W) B-03-15, Level 3, SOHO, Empire Shopping Gallery Jln SS 16/1, 46500 Subang Jaya, Selangor (O) 03-5613 1004 Fb.com/smartfranchise.com.my Mobile Apps @ Play Store or Apple Store : Smart Franchise

The Speakers: Lydia Jominin & Sahar Sahad (SFP Principal Franchise Advisers)

Focus From Left : Mr. Andy Wong, Ms Lydia Jominin, Mr Saharudin, Dato’ Nelson Kwok and Mr Albert Chiang.

INSIGHT INTO FRANCHISING

Despite its popularity, few people fully grasp the concept and philosophy behind franchising.To introduce the concept, we approached Smart Franchise Partner, a firm which provides consultancy services in franchising. Its Principal Franchise Advisers, Saharudin Sahad and Lydia Jominin, provide an insight into the franchising world.

By Patrick Pillai

What is a franchise? How does one define a franchise?

A franchise is a business expansion method or strategy which business owners can use to reach out to a wider market. In the Malaysian context, a franchise is a business relationship (excluding a product distribution method) in which the owner (franchisor) grants the rights (trade name, systems, know-how) to a third party (franchisee), for a period of time.

The franchisee is obliged to abide by a set system (Standard Operating Procedure etc) in running the business unit and receiving support from the franchisor. In return, the franchisee has to pay fee(s) to franchisor (one-off or on-going, or a combination of these two) upon and/ or during the duration of the franchise contract. The terms and obligations of the two parties are set in a Franchise Agreement.

Why franchise?

The three most common challenges in business expansion faced by business owners are a lack of suitable manpower, time, and capital. These factors deter most businesses from expanding. Using the franchise method, business owners can leverage on other people’s resources, time and capital and their high commitment to succeed.

18 ∣MRCA NEWSLETTER∣MAR-MAY 13’

How does one know if a business is ‘franchise-able’?

How does one go about franchising a business?

The main criterion is the rights of the business (trademarks, patents, know-how etc) must be owned by the franchisor. In addition the business should be relatively easy to be “duplicated” while end operations should be ‘idiot-proof,’ (i.e. minimal margin for error). In addition the franchisor should continue to control the key elements of the business and naturally creates franchisees dependency on the franchisor. Generally speaking, the training program period to transfer the know-how andrequired skill to run the franchise is less than three months. In other words, should a long period is taken to prepare a person to run the franchise business, the business may not so suitable to be franchise-able in the first place. It should also be a proven business system both operationally and in terms of profitability, with a good projected ROI within relatively shorter period of return on investment comparing to non-franchise business.

Last but not least, all steps and procedures in operations should be well documented and comprehensive in providing operational guidance and instructions to franchisee.

In Malaysia, franchising is governed by the Franchise Act 1998. To be eligible to be a franchisor one must register with the Registrar of Franchise under the Ministry of Domestic Trade, Co-operative & Consumerism (MDTCC).

How does one evaluate a potential franchisor?

From 1 January 2013, all submissions for franchise registration purposes need to be made online through MyFex( http://www. myfex.gov.my).

In general, a potential franchisor must have:

• • • • • •

•

A proven business model – both operationally and financially; A stable organisational structure and sufficient resources in providing support to franchisees; Strong support teams in R&D, procurement, marketing, human resources as well as operations; A clear identity – branding, positioning, target market; Strong market presence. The brand that they carry must at least have wide market acceptance and recognition; Consistent method and result in delivering service to the customer. At franchisee level they must be able to produce the service or product at the same quality level as expected by the franchisor. This can be achieved by having a complete Standard Operating Procedure and holistic training programs; Sound financial projections and analysis. This is because every franchisee he selects is an investor in his/ her own right, who will consider the initial start up cost, ROI, and ongoing cost on a day-to-day basis.

A local company which intends to register its business with the ROF can do it through one of the following ways:

• • •

Direct application to the government through www.franchisemdtcc.gov.my; Going through a consultant Joining the franchise program run by the Ministry. More information on the program is available via www.pns. com.my.

What are some common pitfalls that Malaysian franchisors and franchisees encounter?

In addition to a lack of a clear understanding of the franchising concept and their role as a franchisor, common pitfalls faced by franchisors include:

• • • • • •

Lack of manpower to support growth, especially at HQ level; Lack of capital to perform Research & Development (R&D); Lack of branding power & marketing strategy to outperform their competitors; An inability to provide sufficient operational support to franchisees; Lack of systems and skills to monitor and control the conduct of franchisees; Over-promising and under-delivering.

The franchisees, in addition to lacking understanding of the franchising concept and their roles as franchisees, often lack working capital to sustain the business, especially for the first six months.

What’s the difference between a franchise and a license?

Generally, the main difference is the level of control and support (involvement in franchisee’s/ licensee’s business operations) by the franchisor imposed on the franchisee/ licensee.

MAR-MAY 13’∣MRCA NEWSLETTER∣ 19

A franchise business model is like a three-legged stool, with the followings element representing each leg – element of a common trade name, system, knowhow; the element of fees; and an element of significant control, support, training and guidance. Technically, if you remove any one of these legs, it becomes a licensing system.

Nevertheless, according to the Franchise Act 1998 any business that fulfills all the following elements will be categorised as a franchise business:

•

•

•

• •

A grant of permission/ license to use the Intellectual Property belongs to the ultimate owner (franchisor) e.g Brand name, patent right, copyright, secret and confidential information/ trade secrets etc; A continuous significant control over the business that must adhere to the established business system; Continuous support, guidance, monitoring to operate the business in accordance to the established business system.

These include (but are not limited to) development and research work, market analysis, supply of materials, training, marketing etc; Fees or other form of consideration to the franchisor; There are two separate legal entities (e.g two companies i.e franchisor and franchisee).

How common is it to use licensing as a way to avoid controls imposed by the Franchise Act (FA)?

According to the Franchise Act 1998 and its guidelines, should a business have certain criteria which match those outlined in the Act, (as highlighted earlier), it is a compulsory to register the business with the Registrar. If the business does not meet these requirements, the owners can opt for licensing.

What are the main implications of the FA’s September 2012 amendments on various parties? Any favourable/unfavourable provisions from the viewpoint of franchisor/ franchisees?

Among the key changes is that it requires compulsory registration for franchisees, brokers and consultants.

Is the FA unique to Malaysia?

Not really. But it is not common for countries to have such an Act. Not many countries in the world have a Franchise Act. Nevertheless, we understand that many countries like Indonesia and Vietnam also started developing some rules and guidelines for franchise business systems in their country.

Does the FA impede the entry of new foreign franchisors?

Yes, indirectly. The problem is that some foreign franchisors feel intimidated by the existence of the Act without (we believe) having a full understanding of the actual situation. To promote the franchise system, perhaps the Ministry could consider incentives such as Corporate Tax perks and more liberal import/ levy charges related to franchise-type operations.

Advice to anyone planning to become a franchisor or franchisee, particularly in the Malaysian context A basic pre-requisite is to fully understand and accept the philosophy behind franchising.

The mindset must be right before anyone can become a fanchisor/ franchisee. MN Note: More on the ‘Philosophy behind Franchising’ in the next issue of this magazine.

Benefits of Franchising * Recognition by the Registrar of Franchise under the Ministry which in turn provides public confidence on the brands and business system; * The franchise industry is well promoted by the Ministry; * Financial assistance provided to the franchisors/ franchisees through the Ministry; * Franchisors hold stringent control over the conduct of franchisees; this promotes and maintains consistency and high standards in the business; * The franchise business moves forward as ‘a unit’. Terms and business methods are applied consistently among all franchisees.

Advantages of Licensing

Generally, business owners in Malaysia opt for licensing either because the business failed to meet criteria for franchising, or because they are simply not aware about the requirement and guidelines stated by the Registrar of Franchise.

20 ∣MRCA NEWSLETTER∣MAR-MAY 13’

* Need not seek registration from the Registrar of Franchise; * Has flexibility in setting the structures of the License Agreement and business operations; * Not bound by the requirement to operate profitably for three years before appointing licensees; * No minimum duration for the license agreement; * The terms of agreement are subject to mutual agreement between any particular licensee and the licensor; the licensor is at liberty to dictate the terms without being answerable to the authorities

Focus

Malaysia, a Top Shopping Haven in the World

H.C Chan, President of Persatuan Pengurusan Kompleks Malaysia (PPKM) and CEO of Sunway Pyramid and Sunway Group Of Shopping Malls shares with ALEYANN MATTHEWS the latest trends in the Malaysian shopping mall industry.

“F

rom zero to Hero” that’s how H.C Chan describes the shopping mall boom in Malaysia. “In the last 10 years, 100 shopping malls have been built in Malaysia,” he equates this boom to rapid urbanisation and Malaysia’s move from third world to a developing nation.

Chan believes the reason for the immense popularity of shopping malls today is that globalisation has created a ‘same-page’ generation. “They look at the same page, Facebook. They listen to the same music. They eat at the same places,” he says.

“Shopping malls are the new trend-setters. They are more than just a place to shop. People go there to meet friends for a meal, a cup of coffee, pay bills, watch a movie and perhaps even to visit the dentist. Shopping malls are an important place for public interaction.”

Compared to malls in countries such as Australia, Europe and the US which carry local brand names, Malaysian malls carry International brand names. “Our malls offer range and diversity of products from budget to high commercial brands and luxury brands,” he adds.

Tourism, too, plays a big part in spurring the growth of shopping malls. Malaysia clocked 25 million tourists last year and by 2014 the country is expected to welcome 28 million tourists. “Tourists spend three to five times more than locals,” he states.

22 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Chan’s wealth of experience in this industry comes from a career as old as the industry he loves. “I started my career at Sungei Wang Plaza during its glory days, then I worked at Berjaya Times Square and I’ve been with Sunway for over 14 years now,” states Chan who has been in the industry for over 30 years. He jokes that not many people can claim they started their career in shopping.

Chan is also currently in his second term as President of PPKM. In 1984, the Malaysia Shopping Malls Association or Persatuan Pengurusan Kompleks(PPKM) was formed to create a platform for members to come together for networking, education and representation. “When we first started in the 80s we had members from about 10 to 15 shopping malls,” he says.

Mr H.C Chan He explains that unlike other industries such as banking or insurance that have years of history and experience, shopping mall management is not an industry where one can learn from textbooks.

“That’s why it is important for us to come together to share ideas, important information and to connect,” he adds.

Education is another important pillar of PPKM. “We offer certification courses in mall management covering areas such as marketing and leasing, operations and finance administration. In fact, in the last 10 years, we’ve had over 2,000 candidates who have qualified,” he says.

PPKM has also collaborated with the International Council of Shopping Centres (ICSC) based in the US and have organised seminars with International speakers in the industry. PPKM is currently in talks with local colleges to offer a post graduate course in shopping mall management.

“There is an urgency to provide an educational opportunity in this industry especially seeing Malaysia is moving forward and upward at a rapid pace. The shopping mall industry directly engages half a million people in their workforce which makes us one of the top five contributors towards the Malaysian economy.”

Also, PPKM is a point of representation for all its members on common issues, most recently on standardising parking rates. “Certain issues may crop up and it is our job to represent all our members. For example, with regards to car park security in malls, it was our responsibility to spread the word that shopping malls were, in fact safe and measures were being taken to ensure that safety of visitors to shopping malls,” he adds.

Malaysia’s tropical climate is also an important factor in contributing to the popularity of malls. “Generally, people like to be in a place that has comfortable, cool climate,” Chan says.

Malaysia, has joined the ranks of the big players and was recently named the fourth shopping city in the world by CNN, after New York, London and Tokyo. Three of the 10 largest shopping malls in the world are in Malaysia. “As far as shopping malls go, we are world-class. We are even doing better than our counterparts in Australia, Europe and other parts of the world,” he states. “The reasons are: Malaysia is a favourite for a lot of brand names because of our population base, our influx of tourists and the fact that English is widely spoken here.”

MAR-MAY 13’∣MRCA NEWSLETTER∣ 23

From left to right: Ms Maureen Fung (Hong Kong), Mr Victor Liu (Taiwan), Mr Victor Guo (China), Mr HC. Chan (Malaysia) and Mr Sugwantana Tanto (Indonesia)

Chan’s advise to retailers looking to expand their business into shopping malls is simple: ensure product and services are relevant and appropriate for that particular location.

“Be more selective. Just because you have more outlets does not mean your business becomes more profitable,” he says.

He continues, “Determine your market size, only then can you lock down on appropriate size for your retail space.” He stresses that demographics and price points are also factors that need to be seriously considered. For smaller businesses starting out, he recommends spaces in smaller neighbourhood malls to keep start-up expenses at a minimal level. “It is important to establish the brand first,” he states.

Chan believes that the shopping mall industry will continue to grow at an incredibly fast pace. “It is important that retailers realise how fast the industry is growing and that they need to keep up. Also, in today’s world, branding is everything. It is important for retailers to continuously build their brand to ensure business success,” he stresses. MN

24 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Focus

MCT CONSORTIUM

OneCity, All Set to Take Subang to the Next Level

Executive Director of MCT Consortium Berhad, Dato’ Danny Goh, explains the five success criteria retailers must look for when choosing a commercial retail space and also introduces ALEYANN MATTHEWS to MCT Consortium’s biggest commercial development, OneCity in Subang.

D

ato’ Danny Goh knows a thing or two about the success criteria that needs to be fulfilled to ensure that a commercial development is of premium level.

“For a commercial development to be premium, the three components, retail, office and hotel, have to be doing well and must have high status recognition from the public,” says Goh who has done extensive research over the years to pinpoint certain criteria that the development must meet to be successful.

Retailers, he points out, must have proper knowledge on these five criteria before they choose to buy or rent a retail space. “Whether a retailer is going to buy or rent a space, the decision is crucial as a lot of money is involved,” states Goh. The five criteria are Location, Integration, Design Quality & Layout, Unique Features & Size and Commitment of the Developer.

Location “A good location is a place that attracts a mature crowd, that is, a business crowd, living crowd, student and outside crowd. If the location has all or most of these it will be a success.” Road accessibility too, plays a vital role for a good location.

26 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Integration This refers to a development that incorporates retail, corporate office, SOHO, hotel and entertainment like cinemas/fitness centre/ karaoke/café & pub/seminar & convention centres. “The development must create a prominent address with a good mix of business and leisure activities,” says Goh.

Design Quality & Layout These features create a lasting first impression.

“The best layout is a single corridor. So, long and rectangular shaped layout is better and easier to plan for retailing. The position of corporate office towers, hotel towers and other entertainment and convention components need to be linked well to ensure better traffic flow,” he says.

Uniqueness & Size “Being too small will not be an impact for attraction. Sizeable commercial developments are needed to attract an outside crowd,” he adds.

MAR-MAY 13’∣MRCA NEWSLETTER∣ 27

Commitment of the Developer “A committed developer not only builds and sells, but also developes, co-ordinates, manages, implements and leads the development towards success,” he explains.

It’s obvious that MCT Consortium is in the know of what it takes for a commercial development to be the talk of the town.

The latest and biggest MCT project is OneCity which is located in USJ25. Once completed, it will meet all five of Goh’s success criteria. According to Joe Hue, General Manager, Retail Leasing, the

28 ∣MRCA NEWSLETTER∣MAR-MAY 13’

area within a five-kilometre radius of OneCity provides a catchment area of 1.25 million in population. “We believe we are heading in the right direction with this project. USJ is a populous area but does not have a complete sizable integrated development to cater to the population here. So we can easily draw in the crowd with OneCity”, said Hue. OneCity is built around business, leisure and entertainment with many unique features to complement its already strategic location. Divided into the Garden Shoppe, Sky Park, The Place and The Square, the 12 cinema halls can be converted into

Executive Director of MCT Consortium Berhad, Dato’ Danny Goh

convention halls during the day making complete good use of a convenient space.

OneCity will also boast Malaysia’s largest karaoke lounge with over 200 rooms and the rooftop banquet hall with an outdoor cocktail area. The icing on the cake will be the 12,000 parking bays spread across three levels of basement car park giving visitors a stress-free start and finish to their OneCity excursion.

More importantly, improved infrastructure in the surrounding areas ensure that OneCity is conveniently accessible.

MCT Consortium has spent RM30 million on infrastructure development to increase connectivity to OneCity. The development is accessible via the LDP, Elite Highway, Subang Jaya as well as Putra Heights. All these features combined with its carefully planned layout and attention to detail are abound to make OneCity a popular destination.

MCT began as a civil construction company in 1995 and today have a land bank of more than 970 acres. They currently have on-going projects covering over 90 acres of land in USJ, Putra Heights, Cyberjaya, Bangi, Templer Park and Johor in both commercial and residential developments.

When asked about the challenges faced in development, Goh replies, “It is the lack of land and poor infrastructure planning of the past.” MCT Consortium is moving forward at a fast pace and is headed by Chairman, Tan Sri Dato’ Seri Barry Goh, Managing Director Dato’ Seri Tong Seech Wi and Dato Danny Goh. Equipped with professional expertise and years of property development experience, MCT is passionate about building structures that last.

Recognising that modernisation is crucial in keeping up with today’s communities, MCT is on a continued path of becoming a developer with a concrete plan for success every time. MN

For availability of retail space in OneCity please contact: Joe Hue joehue@mct.com.my or visit www.mct.com.my for more information.

MAR-MAY 13’∣MRCA NEWSLETTER∣29

Focus

PRIDE AND

PERFORMANCE

O

ne of Malaysia’s top motivation experts, Dato’ Lawrence Chan, says retail staff need to develop a high level of self-esteem and pride in their work if they and their companies are to survive and prosper in these increasingly competitive times.

“The average worker in the retail industry does not see his job as a noble career or profession but as a stepping stone to another job,’ he observes. ‘They don’t see themselves as progressing to, say, supervisor, or manager.

This is where systematic career-path planning, training and retraining, and wage incentives will help employers attract, retain and develop motivated retail staff,’” he tells MRCA News.

By Patrick Pillai

The first step to professionalising manpower in the industry, he says, is to establish proper strategies, structures and systems at management level. While this is evident in most well-established retail chains, both local and foreign, the newer and smaller local set-ups still have a long way to go, and struggle with staff shortages, temporary foreign workers and high turnover.

Structural changes at the management and operations level are by themselves insufficient. “It is equally important for employers to impart and instill the thinking, philosophy and branding of the retail chain to each and every employer, right through to the consumer. This will also create uniqueness and a niche value to the product, helping it to stand out from its competitors.”

30 ∣MRCA NEWSLETTER∣MAR-MAY 13’

He cites Subway, which today has 37,000 outlets worldwide, as an example. “People buy their sandwiches with confidence because they know the product is fresh, healthy and well-priced. This is because the philosophy of the founder has been expressed not only in structures and systems of production and control, but in the spirit and self-esteem of the staff, who are proud of what they sell.”

Dato’ Chan, the founder and executive chairman of Personal Development Leadership (P.D.L.) Management Corporation (Malaysia) Sdn. Bhd., a leading Malaysian training provider established in 1974, has been providing training to staff in the retail sector in Malaysia. A trainer for over 37 years, he is an award-winning training consultant, author of several books, hall-of-fame leader, and Olympics peak performance coach.

Dato’ Chan has trained more than 1.5 million people, ranging from national and state leaders, corporate leaders, managers, executives, supervisors and front-line staff, to university, college and school students on how to become more effective leaders and achievers in their respective fields.

His top-selling books include The Route To Success”, “Personal Daily Motivators”, “You Can Make It Happen!”, “Leadership Strategies” (Chapter Contributor), “An Achiever’s Guide for Students”, “The Route To Effective Public Speaking” and “Joy of Humour”.

On 23rd January 2012 he presented a full-day course on sales effectiveness for MRCA members. It was organised by the MRCA Branding Education Charity Foundation, with support from Maxis. It focussed on performance, motivational techniques, personal relationship selling, and showed participants how to respond to different customers using role-playing, among other techniques.

“The average Malaysian salesperson needs to learn how to ask the right questions to understand customer needs. There is also a pressing need to focus on after-sales service and not just on selling; otherwise, you can’t stand out from your competitors.

“Perhaps the most important missing link is pride in their profession. Staff must be motivated from within, but this pride must be instilled by leaders from outside. This is where it is important for employers to treat their staff well, and to truly inspire them.”

He says most entrepreneurs and businessmen in the retail trade are “by themselves outstanding people” but many have been unable to pass down their own passion, commitment and dedication to their managers and staff. This is where Lawrence and his team hope to make a difference. MN MAR-MAY 13’∣MRCA NEWSLETTER∣ 31

New Members

Rewarding your

B

Loyalty Sdn Bhd is a wholly-owned subsidiary of Berjaya Corporation Berhad. BCARD, its customer loyalty program, is Malaysia’s premier lifestyle and brand-focused loyalty program, partnering with merchants from various industries and businesses that offer customers a variety of lifestyle choices. MOL Loyalty Sdn Bhd - MLoyalty, a subsidiary of MOLAccessportal Berhad provides the technical support to set up and operate the BCARD Loyalty Program. Collaborating with external merchant partners with established brand names and wide network presence further adds value to the program and enhances its market presence.

In December 4, 2012, BCARD launched its mobile application, “BRewarded on-the-Go”, the first loyalty program with a mobile application in Malaysia. It is available on the iOS and Android platforms and allows members to be constantly updated on latest promotions, share promotions with their friends, locate the nearest merchants, check their account balance, recent transactions and redeem their rewards, on the go.

loyalty!

Known as the “Card that Keeps On Giving,” BCARD proposes a win-win situation for both customers and businesses. They are on the look- out for like-minded partners to be part of this journey to help engage and build a long term, mutually beneficial relationship with customers. For details log on to www.bcard.com.my. MN

Gary Yeoh, Director of BLoyalty Sdn Bhd with Miss Universe Malaysia 2013 finalists at the launch of the “BRewarded on-the-Go” mobile application on 4 December 2012.

Contact person: Mr. Gary Yeoh

BLoyalty Sdn Bhd

www.facebook.com/BCardRewards | www.twitter.com/BLoyaltyCard

Level 12 (West), Berjaya Times Square, No. 1 Jalan Imbi, 55100 Kuala Lumpur MALAYSIA Tel: 03 2149 1293 Fax: 03 2149 0287 Email: enquiry@bcard.com.my

Corporate gifts for any special event

G

ift N Logo, serves as a one-stop promotional and personalised gifts centre for corporate gifts and promotional merchandise. Importing and manufacturing a wide range of premium gift products, they offer an extensive selection of over 1000 sale and promotional premium gifts.

Their product range covers T-shirts, bags, track-suits, various types of pens, non woven gifts, electronic items, wooden & leather gifts, umbrellas, sunshades, mugs, trophies and many more. All products come with imprinting of company name/logo.

Gift N Logo is actually a succession of Beyond Marketing, established in 1992. In 1999, Gift N Logo was founded in order to meet the needs of corporate gifts and merchandise in Melaka. The first showroom was set up in Mahkota Parade, Melaka, with a complete range of business gifts and promotional merchandise. With Gift N Logo, you can count on professional service with their products, delivery and pricing, every time.

They are continually upgrading their product and service quality to meet customer needs. MN Contact person: Ms. Cherie Tan

Gift N Logo Sdn Bhd 663-B-1, Jln Bukit Melaka 1/6, Taman Bukit Melaka, Bukit Beruang, Melaka, 75450, Malaysia Tel: 06-2327277 Fax: 06-2312727

32 ∣MRCA NEWSLETTER∣MAR-MAY 13’

www.giftnlogo.com

Human Resources

Solutions at hand J

ob Hunt Training Sdn. Bhd (JHT) is a leading provider in executive training which emphasises corporate tool based processes that create knowledgeable employees in areas of strategic priorities of business and corporate management programmes.

JHT offers open enrolment seminars and tailored programmes based on clients’ specific needs, focusing on the challenges, organisations and people encounter every day in the work place.

From leadership to relationship selling, and from presentation skills to teamwork development, JHT designs and delivers programmes that provide a practical approach for individuals and companies to succeed in a competitive environment. They offer a unique training cycle that integrates attitude change, knowledge, practice and skills development that allows newly learned principles to merge with acquired lifelong skills creating a more whole-some training approach. JHT’S “Train & Place Scheme Programme” allows unemployed diploma/degree holders to upgrade their skills. Through this programme, JHT has successfully placed more than 80 per cent of their trainees in various industries.

A licensed corporate trainer with Pembangunan Sumber Manusia Berhad, under the Ministry of Human Resources, JHT’s training programmes are further accredited by Open University Malaya and Asia e University. In line with Vison 2020, JHT’s plans are formulated to reflect the Economic Transformation Plan (ETP) to ensure our Malaysian workforce becomes more skilled towards a higher income bracket nation. MN Contact person: Ms. Linda

www.jhtraining.com.my

Job Hunt Sdn Bhd 1.02A, Level 1, Menara LYL, No12, Jalan 51A/223, 46100 Petaling Jaya, Selangor Tel: 03-79572992 Fax: 03-7955 2993 Email: linda@job-hunt.com.my

Popping its way into the market T

hree young, enterprising Malaysians - Managing Director Alvis Koh, Finance and Business Development Director Charles Hung and Operations Director Cammy Sim introduced Planet Popcorn to Malaysia in 1992.

A Taiwanese brand name, Planet Popcorn emphasises healthy and high quality popcorn for a tasty treat. Using only premium corn from the United States, kernels are carefully selected and sieved before being manually cooked at 200 C by trained professionals. The end result? A trendy snack both delectable and healthy.

Unlike oily and fattening regular popcorn, plump, round handmade Planet Popcorn is manually roasted and does not contain any preservatives, butter, trans fat or artificial flavouring. Customers can choose from eight fascinating flavours for their ultimate popping pleasure: Original, Caramel, Chocolate, Cheese, Seaweed, Curry, Wasabi and Coffee.

Popcorn is delivered daily from the factory to all eight outlets.

Planet Popcorn is committed to quality procedures for the highest level

Planetpop Marketing Sdn Bhd

of tasty indulgence for all their valued customers. Try the delicious crunchy popcorn from any of the Planet Popcorn outlets in Sunway Pyramid, Berjaya Times Square, Pavilion, Setia City Mall, Paradigm Mall, The Mines, i-City and Mid Valley Megamall. MN

Contact Person: Alvis Koh @ 016-356 9901 or Jack Ho @ 012-3150432

my.twplanetpp.com | http://www.facebook.com/planet.popcorn.malaysia

No: A-5-2, Plaza Kelana Jaya, SS7/13A, 47301 Petaling Jaya, Selangor T: 03-74975500

MAR-MAY 13’∣MRCA NEWSLETTER∣ 33

New Members

The

latest‘IN’fashion trends both fashion and product development, making it one of the leading apparel companies in Malaysia. Generating its own production line of design and manufacturing facilities enables YFSCORP to provide top quality, fast supply of fashion clothing at highly competitive prices marketed through an extensive network of licensing agreements nationwide.

YFSCORP is dedicated to providing consumers with an unparallel selection of products that are respected and recognised for their quality, service, creativity and presentation. MN

T

he YFS (YOUNG, FABULOUS & SASSY) Concept Store has become the source for the most current fashions at the greatest value. YFS features a new and exciting store environment with a constant flow of fun and creative clothing designs. There are also accessories to make your look come together, at competitive prices.

YFS Concept Store was developed by the CEO of YFSCORP Nicholas Chong. Founded in 1979, with a retail outlet store in Johor, YFSCORP today has more than 50 outlets and 500 employees. Over the last 30 years, YFSCORP has set several important milestones in Contact person: Mr. Nicholas Chong

www.yfscorp.com

YFS Corporate (M) Sdn Bhd 13A, Jalan Anggerik 1, Taman Kulai Utama, 81000 Kulaijaya, Johor, Malaysia Tel: 607 663 4277 Fax: 607 662 6717 Email: nicholas@yfscorp.com

Want to advertise your business in Malaysia’s 1st franchising, retailing and licensing magazine?

Target Market Business community with interest in the retail, licensing and franchise industry

Distribution • • • • • • •

More than 200 member companies in Malaysia and associates overseas Top management members Relevant ministers, ministries and government agencies including the Malaysia Overseas Trade Office Relevant business organisations and major shopping malls MRCA events Colleges/Universities in Malaysia Sold in all leading bookstores throughout Malaysia

Advertising Rates (Full Colour) Position

Casual Rates

2 Times

4 Times

Inside Front Cover

RM8 000

RM7 000

RM6 000

Inside Back Cover

RM6 000

RM5 000

RM4 000

Outside Back Cover

RM10 000

RM9 000

RM8 000

Full Page - Rob

RM3 500

RM3 325

RM3 150

Half Page

RM2 500

RM 2 375

RM2 250

Quarter Page

RM1 500

RM 1425

RM1 350

For enquiries please call: Ganesan @ 012 3739422 MPH Group Magazine (M) Sdn Bhd (771396-H)

Lot 1, 1st Floor, Bangunan TH, No. 5 Jalan Bersatu, Seksyen 13/4, 46200 Petaling Jaya, Selangor DE, Malaysia Tel: 603-7960 7334 Fax: 603-7960 3278 E-mail: ganesan@mph.com.my

Updates

Focus Point

focuses on what matters Eye Health Awareness Campaign World Sight Day @ Sunway Pyramid Focus Point Vision Care Group, Malaysia’s largest optical chain stores recently launched an eye health awareness carnival in conjunction with World Sight Day at Sunway Pyramid Orange Concourse.

“We aim to raise awareness among consumers on the importance of regular eye checks, and promote knowledge in early detection for myopia as well as other diseases that can cause visual impairment,” said Dato’ Liaw Choon Liang, President and CEO of Focus Point Holdings Sdn Bhd. “As a public listed company and through our Caring Hearts Foundation, Focus Point is committed to support and promote a healthy lifestyle. Eyecare is an important aspect to a healthy lifestyle, as the loss of vision is a major handicap, since the eyes are the soul for everybody” he added.

Focus Point’s 6th Annual Donation Drive @ The Curve Focus Point’s blood donation campaign attracted over 233 people, of which 191 people successfully donated at least a full pint of blood each.

Dato’ Liaw Choon Liang said the company employees are committed to giving back to society in any way possible but priority is given to causes that promote health and well-being.

“What better gift to give humanity than the gift of life. “Together, we can save lives … all in a day’s work,” he said.

Opening of Minori @ Mutiara Damansara

After a month-long renovation, the new chic Japanese dining haven opened its doors to offer patrons the ultimate Japanese dining experience. Minori promises esthetics, practicality and functionality -- giving birth to a more stylish and alluring ambience while retaining the charm and warmth of authentic Japan. Minori is conceived from market sentiment which favours fine Japanese cuisine. Minori simply means ‘harvest’, intended to mirror the passion, diligence, dedication and time to create the finest Japanese cuisine.

A true-blood Japanese food maestro and culinary master with 20 years’ experience, Executive Chef Hideaki Nakajima’s culinary prowess has been recognized by the prestigious Hospitality Asia Platinum Awards, Malaysia Series for Best Executive Chef and Best Asian Cuisine Chef for 2010 - 2012. MN

36 ∣MRCA NEWSLETTER∣MAR-MAY 13’

123th outlet opening in Bandar Banu Nilai.

A great year for

KK Super Mart A Wonderful Year 2012 was a wonderful year. According to the Chinese Lunar Calendar, the DRAGON YEAR brought success and prosperity during its period. True to this belief, KK SUPER MART was blessed with the successful achievement (as of 1 st Dec. 2012) of a chain of 124 outlets including four (4) at the top of the world in Kathmandu, Nepal (where Mount Everest is). They are targeting to cross the 130th mark before the end of 2012!

Success further smiled upon KK SUPER MART with GOLD AWARD recognition from the MRCA fraternity in the NATIONAL GROWTH AWARD category. In the annual GOLDEN BULL AWARD 2012 - a platform organized by Nanyang Siang Pau to benchmark and recognizes nationwide highly successful SMEs - KK SUPER MART was ranked 4th among the top six in a field of 126 qualified GOLDEN BULLs with the SUPER GOLDEN BULL AWARD! KK SUPER MART’S obligation towards Corporate Social Responsibilities is evident with the performance as the main sponsor for the KK-Goju Kai karate tournament that comprises competitions for the various categories and age-groups also the KLBAIKK BASKETBALL CHAMPIONSHIP 2012/2013 is once again sponsored by KK SUPER MART for the 5th time. MN

SUNRIDER offers a taste and see experience Count on

SEGI UNIVERSITY for quality education

SEGi University earns Excellent ratings in SETARA The year 2012 has been one of excellence in education for SEGi University Group (SEGi). As of November 20, there are already a total of 8 winning accolades marking SEGi’s excellence in various areas of higher education. The latest honour bestowed upon SEGi was the Tier 5 SETARA rating which indicates excellence in SEGi University’s quality of teaching and learning, putting SEGi among the best in Malaysia for higher education.

Other awards won by SEGi or by SEGi’s top management include the APEA Award, The Edge Billion Ringgit Club Award, Emerald Award, Honesty Keris Award Asia HRD Award, Icon Brand Laureatte Award and Putra Brand Award.

What speaks even louder than these awards are the many testimonies from SEGi graduates and students: Kedar Chavan, University of Southern Queensland (USQ) MBA graduate top scorer from SEGi University, who hails from India said, “I would recommend SEGi to my friends and relatives anytime. My time at SEGi was thoroughly enjoyable, and I’m satisfied with my educational experience.”

According to top-scoring Master of Pharmacy (MPharm) graduate, Ms Tan Xin Ning, “I would recommend the MPharm 2+2 programme to others who are interested in studying abroad and doing an internationally recognised Pharmacy degree.

Regular visiting lecturers from the University of Sunderland give us a similar experience as those studying the programme in UK.” Accounting degree student, Ms Ooi Lay Pheng, also a topscorer in the Foundation programme at SEGi University said that it was fun studying there, as there were a lot of co-curricular activities to participate in. “The lecturers and study environment at SEGi kept me motivated to study and to do well.,” she added.

SEGi’s associate institutions such as SEGi’s college campuses received multiple awards up to 6-star ratings in 2010/2011 by MyQUEST, another rating system by the Ministry of Higher Education (MOHE) for all registered private colleges in the country. SEGi College Subang Jaya was one of three colleges’ nationwide rated 6 stars and also scored 6 stars for one of the nine cluster categories. The Kuala Lumpur and Sarawak campuses were rated 5-stars while the KL campus scored 6 stars for 4 cluster categories. MN

Sunrider® Retail Store and Sunny Cafe™ Sunrider Malaysia opened its very first concept store in Sunway Pyramid, selling over 400 superb wellness and beauty products and which also incorporates Sunny café serving delicious, healthy food and beverages. The concept store was set up to provide customers the opportunity to see how Sunrider products can be used in their daily meals and drinks. The Sunny Café™ menu serves food and drinks utilising products such as Evergreen® in the beverage called ‘The Shock’ and ‘Lemongrass Shake’, VitaShake® in smoothies, and Korean White Ginseng, Dong Quai and Quinary® in their soups. Hence, the menu gives Sunrider customers a chance to taste how products are incorporated into daily meals to ensure their lifestyle is healthy and rejuvenating. Healthy eating habits are promoted at the café, instead of mayonnaise or butter, low-fat yoghurt dressing is used, so customers are given the whole healthy experience. The store, which is right next door, makes it convenient for customers to purchase products after enjoying a meal. The simple yet effective product demos allow customers to see, touch and experience these superior quality products. The shop and dine experience will give Sunrider customers a real convenient and handson shopping experience. Sunrider hopes to further advocate emphasis on health, beauty and wellness for all Malaysians through this new concept store. MN MAR-MAY 13’∣MRCA NEWSLETTER∣ 37

Gallery

MRCA

celebrates 20 years in one glorious night

M

RCA had much to celebrate after 20 years and we did it with style on 24 October 2012 with a dinner and awards banquet at the Sunway Resort and Spa. Themed ‘20 Years Of Aspiration’, guests were treated to a night full of pomp and glamour from start to end with exciting surprises. It was also an occasion that recognised the continuous contributions from MRCA’s members who have achieved outstanding business growth and contributed significantly towards the retail-chains industry.

Dato’ Mahani Tan Abdullah, Deputy Secretary General of the Ministry of Domestic Trade, Cooperative and Consumerism, stood in for Guest-of-Honour Dato’ Seri Ismail Sabri B. Yaakob, Minister of Domestic Trade, Co-operatives and Consumerism.

A significant moment of the night was the presentation of RM100,000 to 20 charitable homes through the MRCA Branding Education Charity Foundation. MRCA President, Dato’ Nelson Kwok emphasised the need to reach out to those in need and that it was an important part of MRCA’s vision.

38 ∣MRCA NEWSLETTER∣MAR-MAY 13’

The talented ones in the MRCA family were given a chance to show off their skills in singing, dancing and costume designs in the MRCA’s Got Talent. Caryn Teo received the Grand Prize of RM3,000.

Runner-ups and consolation winners also received cash prizes.

The surprise of the night was the ‘Oppa Gangnam Style’ performance by council and committee members complete with the popular K-Pop hit’s signature dance moves.

While the guests enjoyed their scrumptious meal, they were entertained with a duet song performance by Miss MRCA, Jun Yong and Miss Tourism International 2011/12, Gabriella Robinson. Lucky draw prizes saw individuals winning jewellery from Poh Kong, holidays

to Japan and Korea from Apple Vacation, vouchers for furniture from KK Home Deco and Iphones fom Maxis.

More than 1300 guests graced the event giving the industry greats a chance to mingle and network. Apart from members, those in attendance included individuals from the retail and shopping industries; chain retailers, shopping centre managers, supporting business associates, related trade organisations and government industries.

MRCA’s 2012 Corporate Patron was Maxis, and the sponsors were E-pay, JTI, Sunway Berhad, Maarij Development, Allianz Insurance and SKCC Laboratories. MN

MRCA Awards 2012 MRCA aims to recognise and drive Malaysian retail business towards greater success through awards and recognitions. Winners were picked based on a review by MRCA Council members on effectiveness, efficiency, sustainability and overall business growth in the past year.

The Winners: Global Growth Award:

Marrybrown Sdn Bhd National Growth Award:

Platinum: 7-Eleven Sdn Bhd Gold: KK Supermart & Superstore Sdn Bhd Silver: Marrybrown Sdn Bhd Excellent Customer Service Award:

Platinum: Mircoz Cosmetics Sdn Bhd Gold: Rotol Food-Chain (M) Sdn Bhd Silver: Ruyi Holdings Sdn Bhd Best Visual Presentation Outlet Award:

Platinum: Bonia Corporation Sdn Bhd Gold: Mircoz Cosmetics Sdn Bhd Silver: Occubite Resources Sdn Bhd Dato’ Mahani Tan Abdullah, MRCA members and award winners.

Most Supportive Member Award:

Platinum: Mircoz Cosmetics Sdn Bhd Gold: Occubite Resources Sdn Bhd Silver: Fella Design Sdn Bhd Most Supportive Shopping Mall Award:

Sunway Pyramid Best Business Partner Award:

Maxis Berhad CIMB Bank Berhad Extraordinary Performance Award:

99 Speedmart Sdn Bhd Association Elite Award:

Poh Kong Holdings Berhad MAR-MAY 13’∣MRCA NEWSLETTER∣39

Gallery

MRCA, set to educate through the Master Class Series

A

s one of the most influential retail bodies in Malaysia, MRCA plays an important role in supporting the development and globalisation of the retail industry. As such, it held its 1st MRCA Master Class Series on 16 October 2012 at SEGi University, Kota Damansara.

The event was officiated by the Deputy Minister of Higher Education, Dato Saifuddin Abdullah, both Dato’ Nelson Kwok, President of MRCA and Emeritus Professor Dr. Muhamad bin Awang, Vice Chancellor of SEGi University, gave a special opening address.

40 ∣MRCA NEWSLETTER∣MAR-MAY 13’

The 1st master class welcomed over 100 participants, including speakers, business people, retail professionals and university students. The Master Class Series was created in line with the goals of MRCA, the Ministry of Higher Education and Universiti Utara Malaysia (UUM) to develop an Industry Centre of Excellence (ICoE) initiative programme to upgrade the image and profession of the retail industry in Malaysia.

The first in its series, the full-day class focused on HR and Talent Management in the retail sector. The key speakers included Jeannie Khoo of Kelly Services, Dr. Sam Lee Shoo Man, SEGi University, Datuk Steven Sim, Secret Recipe and Professor Datin Dr. Clara Chee, Clara International Beauty Group. An ideal platform to bridge the gap between success and those striving for it, this series was organised for retail chain owners, retail professionals and those interested in pursuing a career or business in the retail industry.

Through this training programme, MRCA hopes to motivate young blood to manage, engage and create a fresh segmentation in the market. MN

Gallery

A talent contest with NO RULES!

S

everal MRCA members of all ages recently showcased their talent ranging from singing to dancing and even costume designing, at the MRCA’s ‘Got Talent’ Contest.

Songbird Caryn Teo emerged the Grand Prize winner at the finals held during MRCA’s 20th Anniversary Awards & Banquet. Teo from Red Box Karaoke, won RM3,000 in cash prize. She was among the five finalists.

Winners from the first round of judging held on 28 September 2012, moved on to the Semi-Finals on 8 October 2012. Both rounds were held at Red Box, Pavillion. MN NO NAME COMPANY NAME Winner

Caryn Teo

Grand Surf Sdn Bhd (REDBOX)

1ST Runner Up

Amy Chiew

Goldsoft Sdn Bhd

2 Runner Up

Lean Wai Kit

Grand Surf Sdn Bhd (REDBOX)

4th Prize

Jacquline Ong

Clara International Beauty Group Sdn Bhd

5th Prize

Yong Choy Peng

One-AP Design Agency Sdn Bhd

nd

42 ∣MRCA NEWSLETTER∣MAR-MAY 13’

MRCA Members Visit Cambodia&Vietnam

I

t was an exciting October for 29 MRCA members led by its President, Dato’ Nelson Kwok when they visited Cambodia and Vietnam on a business mission trip. Dato’ Nelson heeded the call of the government for Malaysian brands to broaden their horizon and gain new business experiences and prospects from other countries. “In response to our government’s call to encourage Malaysian Brands to venture overseas, MRCA, as an established retail chain operators, shall organise more business trips for members to network and gain new knowledge in retail management through overseas study tours,” said Dato’ Kwok.

The five-day trip from 1st to 5th October 2012 gave members a chance to explore business opportunities in Cambodia and Vietnam and further improve Malaysia’s import industry.

The trip, organised with the help of CIMB Bank Berhad and Maxis, was a success. MN MAR-MAY 13’∣MRCA NEWSLETTER∣43

Gallery

MRCA invited

to participate at INTRADE

M

RCA was invited to participate at the 2012 International Trade Malaysia (INTRADE) held from 27 to 29 November at the Matrade Exhibition and Convention Centre.

Themed ‘Energising Export Growth’ the Fair attracted 450 exhibitors from 15 countries including Indonesia, India, Spain, Hong Kong, Korea, UAE, South Africa, Nigeria and Vietnam. Four industry clusters representing the best of Malaysian and International products and innovation were showcased at this year’s event - Manufacturing Support, Automotive, Lifestyle and Electrical & Electronics and Information & Communication Technology. Exhibitors showcased their emerging products and solutions ready to take on the global market. MRCA members, Arori (M) Sdn Bhd, Clara International Sdn Bhd, iFamily and TMS Art Marketing Sdn Bhd were also participants at the exhibition.

The event was supported by the Ministry of International Trade and Industry Malaysia (MITI) and was officiated by its Deputy Minister, Dato Jacob Dungau Sagan, while the welcoming remarks were presented by Dato Mah Siew Keong, Chairman of MATRADE. (Photo 2) A leading regional trade event, INTRADE 2012 is the 6th edition of this annual event that connects local and International trade exhibitors, buyers, suppliers and visitors to this ever-changing global market. MN

44 ∣MRCA NEWSLETTER∣MAR-MAY 13’

2

MRCA booth at INTRADE.

The History

Established in 1957, MYDIN group has grown to become one of Malaysia’s leading home-grown retail chain. The business started from very humble beginnings in Penang almost a century ago. From a piece of plastic sheet to a wooden shop, the family business evolved and gained popularity as a household name due to attractive pricing schemes and a range of products to cater especially for low-income to medium-income earners.

The Business Philosophy

With the tagline “Why Pay More, Buy At Wholesale Prices!”, MYDIN serves different market segments without compromising ‘Halal’ status (permissible) which are well accepted by all races in Malaysia as ‘Halal’ also denotes hygiene, cleanliness, honesty and thriftiness which are also amongst the values practised by MYDIN retail chain in its day to day business operations.

Today, with more than 175 outlets across Peninsular Malaysia, MYDIN is entrusted in delivering value for money products and in doing business the wholesome way by embracing ‘Halal’ products and services. These principles formed a thread and replicated in other business venture ranging from wholesale emporium, hypermarket, 24-hour convenience store, bazaar and minimarket. The world of business is more than just a profit. The heart of MYDIN business is for the people in Malaysia. Over the years, MYDIN has been involved with the community programmes for advancement and improvement of socio economic well-being in Malaysia.

Engaging with the local community is also MYDIN’s essence in business. MYDIN stands at all times for advancement and improvement of socio economic well-being through various Corporate Social Responsibility programs. MYDIN exemplifies a truly Malaysian spirit engraving the tagline ‘Born Malaysian, Still Malaysian’. MYDIN actively supports Small Medium Enterprise (SME) entrepreneurs by providing business opportunities to them to tap the market. TUKAR (Small Retailer Transformation Programme) is part of MYDIN’s participation in government’s Economic Transformation Programme (ETP) to enhance the competitiveness of SMEs and local retailers. The success of TUKAR programme has entrusted the Prime Minister to appoint MYDIN as the operator of The 1Malaysia People’s Shop or Kedai Rakyat 1Malaysia (KR1M). KR1M is the brainchild of the Prime Minister YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak, aims to address the basic concerns of low-income earners in getting basic necessities.

Conclusion

MYDIN stands out as the only local player in the Malaysian retail industry dominated by big foreign names such as Tesco, Giant and Carrefour. MYDIN’s vision is to become the world’s leading distributor of competitive ‘Halal’ goods and services. With its strategic planning for future growth, MYDIN is putting a concerted effort to materialize this vision and bringing Malaysia to the next level of retail world.

BUSINESS NETWORK

Hypermarket

Emporium

Franchise

Bazaar

TUKAR

www.mydin.com.my

MydinMalaysia

MydinMalaysia

Mini Market

24 Hours Convenient Store

Eco-Retail

KR1M

MydinMalaysia

careline 1

300 30 8786

Gallery

TAR College Alumni Visits MRCA

TAR College Alumni, Chairman and eight committee members paid a courtesy visit to MRCA on 25 October 2012.

T

he main purpose of the visit was to discuss the Entrepreneurship for TAR College students in a need to upgrade human capital development and overall profession of the retail industry in Malaysia. To fulfill this need, TAR College and MRCA are planning on activating a series of collaborative initiatives during the TARC-Employers Forum 2012. These initiatives are aimed at enabling the transfer of industry knowledge, technology and best practices to benefit TAR College students thus developing employment-ready graduates for the retail industry.

TAR College and MRCA will form an academic link, promoting co-operation in the following keys areas: 1) Provision of practicum/internship/part-time/ apprenticeship programmes 2) Implementation of technology sharing particularly on the vendor development programme to the MRCA 3) Contribution and sharing of technical expertise/ technological advancement for research and educational purposes as well as staff attachment

This link-up is expected to further enhance the TAR College Retail Management programme with the support and intimate industry knowledge from MRCA which represents more than 220 leading retail chain store operators and franchisors covering 10,000 outlets throughout Malaysia.

MRCA hopes that through this collaboration, talented youth will be motivated to be creative entrepreneurs. MN

46 ∣MRCA NEWSLETTER∣MAR-MAY 13’

MRCA and TAR College help prepare graduates

for the retail world

T

AR College and MRCA recently signed an MOU to activate a series of collaborative initiatives aimed at enabling the transfer of knowledge, technology and best practices to enable the college’s employment-ready graduates to tackle the retail industry.

The event was held in conjunction with TARC-Employers Forum 2012 held on 8 November 2012, Through this collaboration, MRCA and its members will provide TAR College students, internship opportunities as well as employment opportunities upon graduation.

Both MRCA and TAR College will collaborate in education programmes aimed at improving the new breed of retailers.

At the forum, Datuk Dr. Tan Chik Heok, Principal of TAR College gave the welcome address. MRCA President, Dato Nelson Kwok, one of the forum speakers who spoke on ‘Minimum Wages and Manpower Shortages’, hoped that the collaboration would build greater interest in retail management among the youth whilst creating a sustainable supply of high-quality human capital for the industry.

Through this forum and collaboration, TAR College hoped that industry players

would be able to create awareness among retail practitioners, alumni and students in the area of retail industry to transform their creativity, knowledge, entrepreneurship and research creating innovative outcomes for sustainable retail expansion and development.

“MRCA members are rich in knowledge and we are willing to share our current technology and ready to provide more than 1,000 part time job opportunities, 8,000 internship placements and 100 apprenticeship opportunities,” said Dato’ Kwok. MN

MAR-MAY 13’∣MRCA NEWSLETTER∣47

CNY Banquet 2013

MRCA welcomes

the year of the snake with a

Chinese NewYear Banquet

T

he Malaysian Retailer-Chains Association (MRCA) celebrated the Lunar New Year with over 600 hundred members and guests.

MRCA’s Patron and Guest of Honour Tun Dr. Mahathir Bin Mohamad and his wife Tun Dr. Siti Hasmah Binti Haji Mohamad Ali graced the auspicious event on the 19th of February 2013 at One World Hotel, Bandar Utama.

Organising chairperson, Mr. Andy Goh said, “This annual affair is a reunion of one big family providing opportunities for members and guests to take a break from their busy schedules and foster closer relationship with one another.”

Tun Dr. Mahathir Mohamad in his speech voiced his happiness in seeing so many members and guests in attendance.

48 ∣MRCA NEWSLETTER∣MAR-MAY 13’

He reminded us that “Our country is prosperous because of its stability and in business, stability is important.” Tun wished all present a happy and prosperous new year.

MRCA President Dato’ Nelson shared the exciting year ahead for MRCA which included climbing Mount Kinabalu for charity. “I will lead a team of 45 members comprising top Malaysian retailers, to climb Mount Kinabalu from 18th to 22nd March 2013 to place the MRCA flag with its members’ logos at the peak,” he said. He called on members and guests to donate generously towards the cause.

The night was filled with excitement from start to end. Everyone participated in the tossing of the yee sang and guests were entertained by performances throughout the night. Recognition plaques were given out to certain members and scholarships were given out to deserving students by Tun Dr. Mahathir Mohamad. All guests received a surprise ang pau each and some won lucky draw prizes. A fun-filled night was had by all. MN

MRCA WISHES EVERYONE GONG XI FA CAI! MAR-MAY 13’∣MRCA NEWSLETTER∣49

Gallery

MRCA makes courtesy visits to members Visit To Ruyi Holdings Sdn Bhd

7 September 2012 MRCA President Dato’ Nelson Kwok and Joanne Yau from MRCA Secretariat visits Zell-V.

Visit To FMC Greenland Sdn Bhd (BMS Organics)

13 September 2012 A visit to BMS Organics outlet in One Utama was led by MRCA President Dato’ Nelson Kwok and attended by MRCA Deputy Secretary-General Shirley Tan, Datin Carol, MRCA Secretariat Joanne Yau and Gina Robinson.

Visit To Mr Clean Sdn Bhd

5 November 2012 MRCA President Dato’ Nelson Kwok and MRCA member Rand Asia Managing Director, Herald Chia visited Mr Clean Sdn Bhd and met with its owner, Bong. MN

50 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Launch Pad

Mobile Apps

Technology Seminar

M

RCA organised a mobile apps technology seminar on 5th December at the MRCA Secretariat office.

Bernard Hay of Asia Internet Marketing Academy met with 25 MRCA members and explained how Mobile Technology can be used to generate leads and engage customers.

If you’re worried about developing a wide consumer platform and boosting your product attention effectively to maximise client variety at once, it’s about time you opt for the growth of company mobile applications. In this era of laptops, Smart phones have become the best communication method for many people at minimal price compared to other methods of reaching potential buyers.

Reaching many potential customers for your company lies in developing a useful company mobile app. You will be amazed with the advantages offered. You can utilise push announcements, GPS, discounts, activities alerts, app statistics, etc, all available at prices lower than you think.

Even smaller companies can now increase their consumer platform to reach as many targeted clients as possible through a mobile app rather than depend upon strategies that are simply webbased or involve talking to acquire new prospects.

Business mobile apps consist of promotion through Apple’s App Store and Google Play with growth into other markets using systems such as Blackberry mobile phones, Windows and Android

Mobile Apps to MAXIMISE

business potential

By Bernard Hay

systems. This innovative way to use the newest mobile programme and technology will enable your clients to spread your product news and details through their social media sites as well as SMS, email and blogs.

You can benefit from advertising your events, keeping clients informed about newest offers, maintaining regular contact with clients and enabling them to get in touch with you easily while getting reviews within moments.

Asia Internet Marketing Academy is an Internet Training & eSolution company. They help SMEs & SMIs grow their business globally via online and Mobile marketing. MN For a free Mobile App Demo, please contact:

Bernard Hay @ 012-3299608 Website: www.asia-internet-coach.co MAR-MAY 13’∣MRCA NEWSLETTER∣ 51

Launch Pad

A Brief Overview of GOODS & SERVICES TAX (GST) Seminar

P

uan Sabariah Md. Yusof from the Royal Malaysian Customs Department provided MRCA members with an overview of Government Service Tax (GST) and its mechanisms and procedures on November 21, 2012.

GST is a multi -stage consumption tax levied on goods and services at all levels of business transactions. GST replaces the current Sales Tax and Services Tax (SST). It is aimed at making our taxation system more effective, efficient, and transparent as well as business friendly. We need to pay taxes so that the government can finance socio-economic development which includes providing infrastructure, education, welfare, healthcare, national security, etc.

GST is imposed on the value added along the supply chain from manufacturer to wholesaler down to retailer and consumer.

Production and sales go through several stages of GST collection and payment. Everyone in this supply chain pays GST to their suppliers for the goods and services they purchase and charge/ collect GST on the goods/services they sell. At the end of each taxable period, businesses deduct the GST they incurred (input tax) from the GST charged (output tax). If the output tax is greater than the input tax, the difference is remitted to the government. If the input tax is greater than the output tax, the business is able to obtain a refund from the government.

WHAT IS GST AND

HOW DOES IT WORK?

By Sabariah Md Yusof

Input Tax Credit (ITC) Low GST Rate Anti-Profiteering and Monitoring Price Monitoring ZeroRate and exempt supplies

WHY GST? GST is a better and fairer tax system compared to SST as GST will lower business costs, increase global competitiveness, enhance compliance, reduces red tape, creates fair pricing and greater transparency. Suppliers, manufacturers, wholesalers and retailers can recover GST incurred on inputs. This reduces the cost of doing business, thus enabling fairer prices for consumers. MN

52 ∣MRCA NEWSLETTER∣MAR-MAY 13’

For further information, please contact:

Royal Malaysian Customs Headquarters, GST Unit, Level 9 South, Ministry of Finance Complex, No.3 Persiaran Perdana, Precinct 2, 62596 Putrajaya Tel: 03-88822420/7806720 Fax: 03-88822132 Email: gst@customs.gov.my

The Retail

T

Sales Master HOW TO DRAMTICALLY

INCREASE SALES FOR RETAIL COMPANIES Retail selling is defined as an environment where potential customers walk into a retail/ showroom/roadshow to view products the retailer is offering. Apart from shops, there are malls and commercial areas, automobile sales or even property sales all known as retail selling. Though it typically means indoor sales, it does not restrict the retailer to a confined space.

We’ve provided consultation and training for many retail companies and we find there are typically a few types of retail sales people. Majority of sellers are ordertakers, meaning they sit-back and wait for customers to buy seldom engaging in conversation with the customer or actively following sales processes to obtain sales. As a result, most of these situations result in customers walking out of the store without buying anything. Our research indicates most retail sellers are order-takers.

What are some of the challengers of retailers? Besides marketing and loyalty, the biggest challenge is the increasing rental cost. With fixed cost going up, are retailers providing training and education to equip retail sellers with effective selling skills to increase their sales? It appears ONLY larger retailers with multi-national links provide necessary training. A lot of local SMEs don’t do that enough.

he retail sales master seminar was held at the MRCA Secretariat on 10th October 2012. Conducted by Sales Ninja Grandmaster, Hanzo Ng, the 2 1/2 hour long seminar was an exciting and interactive session for MRCA members to master basic skills of retail – selling.

By Hanzo Ng Sales Ninja Grandmaster.

Without the proper training: 1.

Retail sales people don’t greet appropriately. When product differentiation is little, the real differentiation comes from the interaction between the buyer and seller. That’s how meaningful customer experiences are created, not just beautiful interior or good merchandising, but solid people to people customer experiences.

2.

Retail sales people don’t ask enough questions.You won’t understand customer’s needs and requirements. The higher your price, the more you need to understand the customer’s needs and wants. The higher your price, the higher the expectation of professionalism.

3.

Retail sales people are poor at presenting their benefits. What is the difference between a feature and benefit? Once again, the rule of the price is important. The higher the price, the more skillful the retail sales person needs to be. Are your retail sales people selling features or selling benefits?

4.

Retail sales people don’t tackle objections. Whatever the objection, retail sales people typically don’t bother. Why? They lack the training; therefore they do order-taking. Dealing with objections “is a lot of work”.

5.

Retail sales people don’t use closing techniques. Closing is defined as asking the buyers to buy or encouraging the buyers to buy. How many retail sales people do that? Very little. They wait for the buyers to buy.

6.

Sales Ninja specialises in helping multi-nationals like Toshiba, Canon, public listed companies like Hong Leong, Bolton and hundreds of SMEs to increase their sales through sales training and sales consultation services. MN

For more info, please contact: mail@salesninja.asia.

MAR-MAY 13’∣MRCA NEWSLETTER∣ 53

Launch Pad

Success Criteria for Premium Commercial Development Seminar

T

he ‘Success Criteria For Premium Commercial Development’ seminar was jointly organised by Consortium Sdn Bhd and MRCA, held on 9th November 2012 at MCT Consortium Berhad Auditorium. At the seminar, exclusively for MRCA members, Danny Goh, Executive Director for MCT Group of Companies explained the fundamentals of choosing the right commercial property, provided guidelines for future business expansion and identified the success reasons for premium retail and office space available in the market to 32 participants.

How to pick the RIGHT

Commercial Development consists of Retail, Offices and Hotels. Premium Commercial Development means that these three components: Retail, Offices and Hotels are doing well and have high status recognition from the public.

Fellow entrepreneurs, whether you want to buy a commercial property or operate a business in retail outlets the investment amount can be costly amounting from a few hundred thousand to a few million Ringgit. Before making a decision, it’s important to have the knowledge on choosing premium commercial property/ business outlet.

RETAIL SPACE for

your business

By Danny Goh

The Five Success Criteria Are : Location: ‘Location’ is the primary factor for investors. Three factors need to be considered:

The layout of a mall needs to be single corridor, thus a long rectangular shape is better and easier to plan for retailing.

* Matured Crowd - Business, Living, College/ University Students and outside crowd * Highway/ Main road accessibility * Type and Quality of crowd

Unique & Sizeable: A sizeable commercial development is needed to attract an outside crowd. Key elements of the designs and components of a development will attract both locals and foreigners.

A unique development proves highly effective at stimulating desire to purchase. Unique features will be the driving consideration of one development over another. Too small is not an impact for attraction.

Integration: A highly potential development should be integrated to attract good investors. An integrated development that offers a continuous stream of activities throughout the year is certainly a plus point. It will create a prominent address with its good mix of business and leisure activities. It should be about delivering a good experience at all times. The components of this integration are: Retail, Corporate Office, SOHO, Hotel and the entertainment portion like cinema/ fitness center/karaoke/café & pub/seminar & convention centres etc all proportionately balanced.

Design Quality & Layout: First impressions count. Good design and a well planned layout continue to work hand-in-hand to create a lasting perception of a development and therefore, attract visitors again and again. It’s a compelling factor to drive awareness.

54 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Commitment of Developer: Apart from all the success criteria above, the most important part of being the developer is commitment towards the development. A committed developer not only builds and sells but develops, co-ordinates, manages, implements and ensures success. MN For more info, please contact:

MCT Consortium Berhad 25, Jalan USJ 21/10, 47630 UEP Subang Jaya, Selangor Darul Ehsan. Malaysia Email: enquiry@mct.com.my

Impact of Budget 2013 On

Retailers Seminar

Corporate Tax 1.

Budget 2013, the proposed maximum rate of 25 per cent is applicable to chargeable income exceeding RM 250,000.

2. Interest Income:

Current -- Interest income may be treated as business income based on facts of case, such as interest charged for late payments by debtors.

Proposed -- New Section 4B Interest Income shall be treated as business income only if interest is related to stock in trade or interest receivable from business of lending money; and unabsorbed loss and capital allowance from Year of Assessment 2012, interest source can be carried forward to deduct against aggregate statutory income from any other business source in YA 2013.

3. 1Malaysia Training Scheme Programme proposed double deduction granted on training expenses incurred

by Government-linked companies (GLCs) and private companies to provide soft skills training to unemployed graduates.

Personal Tax Personal tax rate is reduced by 1 per cent. Taxpayer is entitled for RM 6,000 relief if deposit in Skim Simpanan Pendidikan National for his/ her child. Child relief is increased from RM 4,000 to RM6,000 for each unmarried child.

Investment Incentives 1. Total investment made by angel investor in a venture company is allowed for deduction against business or nonbusiness income if criteria are fulfilled 2. Double deduction on expenditure incurred for provision and maintenance child care centre and child care allowance given to employees.

3. For those small Malaysian Service Providers who merge into larger entities will be given stamp duty exemption and flat tax rate of 20 per cent for five years.

D

ato’ Raymond Liew and Jason Boey conducted a seminar on the impact of the recent budget on retailers on 28th November, at the MRCA Secretariat office. The seminar was jointly organised by MRCA and McMillan Woods and both speakers touched on how the budget would benefit the taxpayer, the entrepreneur and how it will assist the economy despite the global financial crisis. The half-day seminar covered the overall economic outlook and recent developments as well as the Budget 2013 highlights and its implications.

Labuan: Labuan International Commodity Trading Company (LITC) set up as liquefied natural gas (LNG) business will be given 100per cent tax exemption for first three years.

Real Property Gains Tax 1. Rates have been increased from 10 per cent to 15 per cent (disposed within 2 years); 5 per cent to 10 per cent (within two to five years).

2. If the acquirer fails to withhold and remit the tax due to incorrect or wrong notification, the acquirer will be subject to 10 per cent of penalty.

3. It is proposed that only the director will be liable for any unpaid RPGT compared to current situation where manager or principle officer will be jointly liable.

Petroleum Income Tax 1. It is proposed that any person without proper excuse and who has failed to maintain proper records in accordance with Sections 34A(1),(2),(3),(4),(5) of PITA shall be guilty subject to a fine between RM300 and RM10,000 or imprisonment of no more than one year.

2. Transfer Pricing and Thin Capitalisation provisions under PITA has allowed Director General to make adjustment on transactions between related companies. MN Stamp Duty: Malaysian purchasing first residential property not exceeding RM400, 000 shall be given 50% stamp duty exemption extended to 31 December 2014.

For more information, please email: info@mcmillanwoods.com or visit our global website www.mcmillanwoods.com.

MAR-MAY 13’∣MRCA NEWSLETTER∣ 55

Launch Pad

Consumerism Seminar

by the Ministry of Domestic

Trade, Co-operatives and Consumerism

T

he ‘Consumerism Seminar’ was held at the Renaissance Hotel, Kuala Lumpur on the 18th December 2012 and hosted by The Ministry of Domestic Trade, Co-operative and Consumerism.

MRCA members were invited to attend.

The seminar highlighted the recent amendment to the Consumer Protection Act 1999, as follows:

ENFORCEMENT OF CONSUMER’S PROTECTION ACT 1999

Enforced by the Ministry of Domestic Trade, Co-operatives and Consumerism - Perdagangan Dalam Negeri, Koperasi Dan Kepenggunaan - (KPDNKK), Consumers will get greater protection against misleading or false advertisements in print and electronic media with the enforcement of the recent amendment to the Consumer Protection Act 1999 effective 1st of January 2013. Those found to have put out misleading or false ads in terms of quantity, quality, price, effectiveness and availability of products would be fined up to RM5,000 or jailed up to three years, if found guilty.

Two guidelines were revealed and implemented: Guideline to Prevent False or Misleading Advertising and Guideline on Implementation of Redress. These guidelines were put in place to remind dealers, consumers and other related parties of their responsibilities to provide transparent and accurate information to consumers and to ensure the best consumer protection rules in the practices of redress (repair, replace, exchange or refund policy) and advertisement production. The Act would regulate advertisers comprising manufacturers, service providers and ad agencies who disseminated ads through print, broadcast or electronic media. MN

56 ∣MRCA NEWSLETTER∣MAR-MAY 13’

Tax Audit and

Investigation Seminar

M

RCA and McMillan Woods organised a seminar on Tax Audit and Investigation on the 31st October 2012 at the MRCA Secretariat office. Trainers Dato’ Raymond Liew and Jason Boey were at hand to ensure that members were prepared for a tax audit & investigation of their company’s financial affairs by the IRB. The seminar was held to educate MRCA members on two key points: Enhancing tax compliance and to avoid common mistakes generally committed by staff members and how to survive a tax audit by the IRB.

Some useful information shared at the seminar by McMillan Woods

What is a TAX AUDIT?

What is a TAX INVESTIGATION?

In brief, a tax audit is basically an audit conducted by the Inland Revenue Board (IRB) officers based on a detailed review of the financial statements and affairs of a selected and/or targeted taxpayer of which a selected Year or Years of Assessment are chosen. It is to verify and to corroborate the accuracy and correctness of a taxpayer’s tax liability and also to ensure that the taxpayer complies with his/her tax obligations and compliance. In a tax audit, the taxpayer is notified of the date and the estimated duration of time to complete the tax audit by the IRB officers.

Tax investigation is conducted generally by a surprise visit to taxpayer’s business premises and residence to include offices of the auditors and tax agents. IRB officers would also conduct an interview with the responsible employees of the company for the day-to-day running of the business activities especially directors and senior staff members.

Seizure of all files and records to include removal of computers under tax investigation by the IRB officers is a norm and they can even take possession of all annual reports, accounting books and records; financial statements and any other information deemed necessary.

For individual taxpayer, the IRB officers will ordinarily carry out an interview on the targeted taxpayer and family members pertaining to business activities. IRB officers may request to obtain all relevant statements, bank accounts, cheque books, savings and deposit bank accounts etc. of the taxpayer, spouse and dependent children to review all reports, accounting books and records; financial statements and take possession of them. Lately, depending on the situation, it is also a norm for IRB officers to request for the completion of a Capital Statement over a selected period.

A taxpayer should not confuse a tax audit and a tax investigation. In both circumstances, it may embrace the examination of the taxpayer’s financial reports, accounting books and records; and documents by the appointed IRB’s officers. Nonetheless, the primarily differences are: A tax audit normally commences with a telephone call from the IRB officers making arrangement for a visit on a specific date. MN

The two categories of Tax Audit are: Desk Tax Audit This is a conventional type of audit and it is normally carried out at the IRB’s offices. Such audit is actually based on the verification of the documents submitted and confirmations of the relevant tax returns and computations to include its supporting documents.

Field Tax Audit A contemporary type of audit and it is normally carried out at the taxpayer’s premises at all locations – branches and offices with prior notice of usually 14 days. Such audit is a detailed examination of the primary source of documents to include a meticulous evaluation of the taxpayer’s operations. As a matter of fact, this is a more in-depth audit hence such an audit is conducted by a selected team of trained and experienced IRB officers.

The rates of penalties are very much dependent on the lapsed time between omission and voluntary disclosure. It should be noted that the longer the lapsed time, the higher the rates of penalties. The rate of penalties may vary from 10% to 45 per cent.

For more information on Tax, Assurance & Advisory business services, Strategies or Risk Management please contact:

info@mcmillanwoods.com

or visit our global website

www.mcmillanwoods.com MAR-MAY 13’∣MRCA NEWSLETTER∣ 57

For The Record

Oct

ober MEETING

Nov

ember

MEETING

M

RCA’s monthly meet was hosted by CIMB Bank Berhad on the 22 November 2012.

Beginning with a welcome address from our President Dato’ Nelson Kwok, Secretary-General Mr. Andy Goh followed up with the secretariat report on the past and upcoming events as well as latest government updates.

During the business presentation session, Hendrik Lamsali from Universiti Utara Malaysia spoke on the ‘Doctor of Management Programme’ while a non-member Ravi, shared his mountain climbing experience when he spoke about the ‘Manaslu Expedition.’ Manaslu is

58 ∣MRCA NEWSLETTER∣MAR-MAY 13’

hosted by BMS Organics

B

MS Organics Sdn Bhd hosted MRCA’s monthly meet on 18th Oct at their Shah Alam outlet.

MRCA’s Secretary General Andy Goh chaired the meeting where he presented the secretariat report on past and upcoming events that included the Business Mission Trip and the 20th Anniversary & Awards Night. This was followed by a report from the treasurer.

Three speakers took the stage during the business presentation session. C.H Koh presented ‘Introduction to BAGMAN’, Alen Soong from CIMB Aviva spoke about ‘Ultimate Biz Solutions’ and Terry Lee, from BMS Organics Sdn Bhd spoke on ‘BMS ORGANICS’.

Later, MRCA Council Members presented BMS Organics with an appreciation plaque. Attendees were treated to a healthy, organic dinner at the end of the meeting. As a token of appreciation, MRCA distributed customised name cardholders to all 120 attendees. MN

brought to you by CIMB Berhad

the eighth highest mountain in the world. Dave Yap from NEC spoke about Innovating Retail with SAP and CIMB Bank Berhad ended the session with two topics – ‘Doing Business in ASEAN - How CIMB Can Help’ by Neoh Sze Ming and ‘Retail Capex Solution’ by Michael Lim Chee Long.

CIMB Bank Berhad also shared their latest package, CIMB Retailer CAPEX Solution (Renovation Loan) and announced that MRCA members will be the first to enjoy this exclusive package.

MRCA distributed customised Membership Kits/Document Bags as a special souvenir to all attendees. MN

Dec

ember MEETING

presented by Dragon-I

or the December meeting hosted by Dragon-I Restaurant on 20th December 2012 in Setia Alam, members were briefed about MRCA past events, government meeting updates, seminars, dialogue sessions, council meetings, charity home visitations and upcoming events. MRCA welcomed a new Ordinary Member – YFS Corporate (M) Sdn Bhd and two new associate members – Gift N Logo Sdn Bhd and BLoyalty Sdn Bhd. The three members that took part in the presentation session were American Express’s Joseph Siew enlightened members about ‘American Express Business Card’, Jay Leow of Hai-O spoke about ‘Chinese New Year Hamper’ while Henry Yip of Dragon-I Restaurant highlighted the restaurant’s 2013 promotions.

MRCA members were encouraged to vote their favourite MRCA Logo Design from a list of entries submitted by MRCA members. The designer of the winning logo will receive a cash prize of RM3,000 in addition to having his or her logo design as the official new MRCA Logo.

After the meeting, there was a lucky draw sponsored by Hai-O

Chain Store and Dragon-I Restaurant. Three of the five winners received a RM50 Dragon-I vouchers and the remaining two received Hai-O Healthcare hampers. Members were later treated to a light dinner by the host. MN

F

Jan

uary

MEETING

T

he first MRCA meeting for 2013 was hosted by 101 HaircareTangible Aim at its new premise in Subang on 17th January.

The meeting began with a welcome address by the President, Dato’ Nelson Kwok who stressed the importance of training and education in the industry. He encouraged members to have their staff attend the Sales Performance Course by Dato’ Lawrence to increase productivity in the workplace.

It was also announced that the Chinese New Year Banquet, to be held on 19th February, will be attended by Tun Dr.Mahathir Mohamad and 600 guests. MRCA is hoping to raise RM100,000

with 101 Haircare

through the Mt Kinabalu expedition that will see members scaling the highest peak in Southeast Asia to raise funds for various charitable homes. This year will see MRCA’s newsletter being transformed into a retailing, franchising and licensing magazine that will be sold in MPH bookstores nationwide. The MRCA 52 Branding & Retail Chains Elite Book (Chinese edition) will feature members with outstanding brands. The books will be distributed to the Chinese community. MRCA is also targeting 20 members to participate in the 8TV Entrepreneur Awards. Also in the pipeline for this year are study tours to Japan, the Philippines and Mabuto.

The business presentations for the day began with Mr Michael Lim from CIMB Bank Berhad who spoke on the topic CIMB Retailers CAPEX Solution. This was followed by a presentation by Horst Habbig from Allianz Life Insurance Malaysian Berhad. He gave members some tips on retailers insurance. The presentation ended with Cellyn Chow from 101 Haircare sharing their company info and background.

The council members presented the host Ricky Thye of 101 Haircare with an appreciation plaque. The meeting ended with a scrumptious meal and free hair analysis for the attendees. MN MAR-MAY 13’∣MRCA NEWSLETTER∣59

Reaching Out HARI-RAYA visit to

Charity Visitation:

On 15 August 2012

Welfare Society

RUMAH TITIAN KASEH

TI-RATANA On 17 January 2012

M

ore than 25 members of MRCA including MRCA Founder President Dato’ Eddie Choon, MRCA President Dato’ Nelson Kwok T.T. JP, MRCA Life Time Honorary President Mr. Albert Chiang and MRCA Immediate Past President Dato’ Tay Sim Kim visited Rumah Titian Kaseh (RTK), Tasik Titiwangsa.

This year, MRCA donated more than RM10, 000 worth of daily-needs products and RM5,000 cash on the spot to support the purchase of a new home. In order to prepare for the upcoming Raya, MRCA also gave out ‘Green Packets’ to everyone. In addition, some of our members voluntary donated some of their own goods from Fella Design, Egonutritions, Occubite muffins, Nelson’s ice cream and others.

Rumah Titian Kaseh is now split into three groups of residences; each residence caters for different groups. The boys, girls and OKU (orang kurang upaya) are separated into three different homes accordingly. This is because their old bungalow was put on sale by the owner in 2009 and they were left homeless. They managed to find a new place but sadly transportation between the three residences became a nuisance. MRCA would like to help them get back on their feet.The shelter is home to more than 167 people, from infant as young as 23 days old to senior citizens (warga emas).

M

RCA initiated and successfully organised its first visitation to Ti-Ratana Welfare Society on 17th January 2012.

It was attended by MRCA President Dato’ Nelson Kwok, MRCA Immediate Past President Dato’ Tay Sim Kim, MRCA Life Time Honorary President Mr. Lee Hwa Cheng, MRCA Vice President Miss Valerie Choo, MRCA Council Member and Members from Fella Design Sdn Bhd and FE Brands (M) Sdn Bhd. Ti-Ratana Welfare Society is a community service society set up in the spirit of compassion to both serve and provide shelter, education and care to the underprivileged members of the community. It is also a voluntary, not-for-profit, non-partisan and non-denominational organization offering a wide scope of community services.

MRCA donated daily needs products worth RM 10,000 and also “ang paos” to 240 orphans and 100 old folks in hopes of giving them a wonderful and meaningful Chinese New Year celebration.

MRCA Celebrates 20 Years

by Donating to

20 Charitable Homes On 24 October 2012

CHARITY KARAOKE

for MRCA Branding EDUCATION CHARITY FOUNDATION On 2 February 2012

M

RCA’S Chinese New Year Banquet was held at One World Hotel on 2nd February 2012 and was graced

by Y. B. Senator Dato’ IR Donald Lim Siang Chai, our Deputy Minister of Finance. This event was attended by 520 members and guests providing networking opportunities for all. The Organizing Chairlady was Ms Valerie Choo.

In celebration of MRCA’s Chinese New Year Banquet 2012, MRCA members raised RM180,000 during the ‘charity karaoke’ for MRCA Branding Education Charity Foundation.

60 ∣MRCA NEWSLETTER∣MAR-MAY 13’

D

uring the 20th Anniversary Dinner & Awards banquet held at Sunway Resort Hotel & Spa Ballroom on 24 October 2012, MRCA through their Branding Education Charity Foundation donated RM100,000 to 20 charitable homes.

Reaching Out

Christmas Joy at

Persatuan Rumah Caring

On 17 December 2012

Scholarships to Deserving Students On 16 May 2012

A

nother project through the Branding Education Charity Foundation sees deserving students, irrespective of background, receive education assistance with scholarships from MRCA. Recently, scholarships were given out to the children of MRCA members who achieved excellent results in their 2011 UPSR and PMR. The event was held at Wisma Bentley Music, Mutiara Damansara during MRCA’s monthly meeting on 16 May 2012.

The financial assistance will enable them to achieve primary, secondary, higher education university or post graduate qualification at universities, schools, colleges or other institutions either in Malaysia or abroad.

O

n 17 December 2012, Persatuan Rumah Caring in Taman Muhibbah, Kajang, received RM10,000 worth of goods that consisted of groceries, a motorcycle, personal care products and medicines when MRCA paid them a visit. Eu Yan Sang, one of MRCA’s members’ donated some of their speciality goods as well.

Rumah Caring is home to several people between the ages of 50-92 years, as well as orphans, single mothers and the mentally challenged. The home also provides shelter for former drug addicts and employment opportunities for them.

The home’s founder, Wendy Yap, hopes to realise her dream of building a four-storey building on their own land to provide shelter and welfare for the needy. She says there is an urgent need for more space and raising funds is challenging to meet the running costs of three homes under her care.

Deepavali visit to

Persatuan Penjagaan

Kanak-Kanak Cacat On 7 November 2012

O

n 7 November 2012, more than 25 members of MRCA took time out from their busy schedule to bring Deepavali cheer to children from Persatuan Penjagaan Kanak-Kanak Cacat in Klang, Selangor.

MRCA President Dato Nelson Kwok, MRCA Life Time Honorary President Lee Hwa Cheng, MRCA Deputy President Dato Liaw Choon Liang and Council Members were among those who visited the children.

In their continued effort to give back to society, MRCA donated more than RM10,000 worth of goods that included groceries, stationeries, personal care products, medicines and others to the home. In addition, some MRCA members from 99 Speed Mart Sdn Bhd, PlanetPop Marketing Sdn Bhd and Rand Asia Sdn Bhd, donated goods for the children. Ang paus were also given to the children.

62 ∣MRCA NEWSLETTER∣MAR-MAY 13’

MRCA Brings New Year Cheer to

TI-RATANA COMMUNITY CENTRE On 30 January 2013

M

RCA’s first charitable visit of 2013 was to Ti-Ratana Community Centre in Cheras on 30 January 2013.

The MRCA team brought with them RM14,000 worth of curtains and also more than RM3,000 in Ang Paus for Ti-Ratana’s 130 old folks as well as 200 orphans. A lot of support was generated from members KK Supermart, Econsave, Subway, OSIM, BMS Organics, Sunrider International, Fella Design and other members sponsoring kids’ clothes, footwear, medicine, groceries and much more to this charity home.

From 18-22 March 2013, MRCA, through a charity climb up Mount Kinabalu, hopes to raise RM100,000 for charitable homes as part of their Branding Education Charity Foundation activities for 2013.

BCARD the loyalty card that keeps on

giving

B

Loyalty Sdn Bhd, a wholly-owned subsidiary of Berjaya Corporation Berhad, owns and operates a customer loyalty program known as BCARD. Partnering with merchants from various industries and businesses that offer customers a variety of lifestyle choices, consumers can now finally enjoy a loyalty card with a difference! The BCARD integrates two unique factors that gives consumers even more rewards. First, consumers are able to collect points both during purchase and redemption. Second, the points are exchanged at a fixed value rate, RM 1 per 100 BPoints so that consumers can ensure their deserved rewards.

BCARD is the first loyalty card in Malaysia to have a mobile app - “BRewarded on-the-Go”.

The app is available on the iOS and Android platforms allowing members to be constantly updated on the latest promotions, share the promotions with their friends, locate the nearest merchants, check their account balance and recent transactions and also redeem their rewards on the go. The app also features the virtual BCARD that is currently accepted at selected F&B outlets in

The Cardiff City FC ‘Swipe & Win’ Contest

Berjaya Times Square and shall be accepted at other participating Klang Valley merchant outlet in the next phase, providing further convenience to BCARD’s members.

For those who love participating in contests, BCARD, in collaboration with Cardiff City FC is running the ‘Experience the Fire and Passion of Cardiff City Football Club’ Contest - BCARD Swipe & Win’ campaign from 16 February to 31 March 2013. Through this contest, BCARD is providing its members and Cardiff City fans the opportunity of a lifetime to win a holiday getaway to experience the Cardiff City FC final home game live in Cardiff City, Wales on the 27th April 2013.

Other exciting collaborations include those with movie distributors like Tayangan Unggul Sdn Bhd and Nusantara Edaran Filem Sdn Bhd most recently for movies such as Twilight: Breaking Dawn Part 2’, ‘Hantu Kak Limah 2: Husin, Mon dan Jin Pakai Toncit and Awan Dania.

BCARD proposes a win-win situation for both customers and businesses. Through this win-win spirit, they are continuing to seek out like minded partners to be part of their journey to engage and build a long term and mutually beneficial relationship with customers. MN

‘Experience the Fire and Passion of Cardiff City Football Club’ Contest - BCARD Swipe & Win’ press conference on 6 February 2013.

64 ∣MRCA NEWSLETTER∣MAR-MAY 13’

For details visit us at www.bcard.com.my BLoyalty Sdn Bhd Level 12 (West), Berjaya Times Square No. 1 Jalan Imbi, 55100 Kuala Lumpur MALAYSIA

A Destination in Kuala Lumpur’s Golden Triangle

I

ntroducing the latest thriving commercial and residential address located along Jalan Sultan Ismail, comprising a retail mall, residential building and office tower that is set to become a major attraction reshaping Kuala Lumpur’s skyline.

Dato Dr Jennifer Low, J.P, Quill Group MD, calls Q City Mall a future city within a city that can sustain its population and economic activities because of its strategic location. Located on Jalan Sultan Ismail, Q City Mall provides total connectivity via its surrounding road network which links all major areas in Kuala Lumpur.

The Medan Tuanku Monorial Station directly connects level two & three of the mall through a sheltered bridge. Ample parking space of 2400 lots are available making it a convenient shopping destination for urbanites.

“When Q City Mall was conceived some 15 years ago under the Vision City concept, it was to be a premier mall designed to meet the shopping trends at the time. Now, it has been

66 ∣MRCA NEWSLETTER∣MAR-MAY 13’

given a contemporary design in line with current lifestyle trends, catering for the middle-upper market segment,” she explains. Dato Dr Low was the first woman to ever win the FIABCI Property Person Award 2011.

All 7-storey of the Q City Mall offers an eclectic mix of dining, shopping, entertainment and leisure facilities for both locals and tourists.

This prestigious urban development embodies a vibrant and modern way of life where people can meet and socialize making it a must-go major shopping, dining and entertainment destination. The dynamic design of the mall creates a statement along Jalan Sultan Ismail creating high visibility with an uninterrupted façade that runs for 300 metres. Exciting

and unique features that include the 1st sky alfresco and floating media pod creates a new and different shopping experience. Integration at its best, the residential building rising 37-storey combines modern architecture with tastefully designed and low-density units of glass and stone, resulting in an iconic building with contemporary design. Also, the 40-storey office tower offers a panoramic view of the city and includes a distinctive exterior and fantastic on-site amenities.

The Quill Group was established in 1987 and has since built a brand that represents global standards in product quality and service delivery. The core business of the Quill Group is property development and construction.

However, they have recently moved to diversify their business operations and make inroads into the retail business. They have made significant investments in the automobile sector by associating with BMW and Rolls Royce. Partnering global brands is consistent with the Quill Group’s vision to provide customers with highest quality products and services. Having received various recognition and awards for their work and contributions to the property and development industry, they are confident that Q City development is well on its way to becoming the next go-to destination, the ideal place to shop, live and work in the heart of Kuala Lumpur. Given the strategic location of the Q City Mall project, the objective is to expand retail space and more importantly to cater to a new market, providing a different customer experience that would add to the attractions of KL city centre. Come and be a part of the experience! MN MAR-MAY 13’∣MRCA NEWSLETTER∣67

Talking Point

How IMPORTANT are training and education in the retail industry today?

RoysTan CEO Occubite Resources Sdn Bhd

“The retail industry is very much a service and knowledge-based industry.

Training and education are of paramount importance to the industry players as their business will only flourish if their customers are pleased with the service rendered and the knowledge imparted by the staff members. With continuous training and education provided on product knowledge, the customers’ behaviour and needs, market trend etc, the retail players can then be assured of good business through customers who make return visits to their stores as well as make recommendations to their families and friends.”

“Competition in the local / overseas market is competitive and fastmoving nowadays. In order to move forward, more training and education is needed. Today’s technology has changed the landscape of retailing with e-commerce, mobilecommerce, global commerce, brand development, etc. People in retailing must incorporate all up-to-date technology to be more competitive.”

ShirleyTay Director of Regional Operations-South Asia Sunrider International (Malaysia) Sdn.Bhd

“Training and education are critical in any company. Service and professionalism are keys to raising customer satisfaction and keeping complaints at bay. Training cultivates knowledge, passion and commitment amongst staff. This encourages taking ownership and accountability towards what they do for their customers. For us at 101 Haircare, we have a customer base that relies heavily on our staff for professional advice which is a motivating force for staff to work enthusiastically and have a sense of belonging.” MN

Terry Lee Director BMS Organics

“Training and education are very important to maintain a professional team that provides good service, upholds the company image and has a productive work culture.”

RickyThye Director,101 Haircare

68 ∣MRCA NEWSLETTER∣MAR-MAY 13’

“WHEN WE FOUND FASTER INTERNET, WE ALSO FOUND A FASTER WAY TO MAKE A SALE” In retail, every minute is a sales opportunity. With over 40 branches nationwide, it’s crucial that all our stores receive the latest information on camera models, accessories and offers as fast as possible. Maxis Business Fibre Internet has provided us with high speeds and bandwidth, great after-sales service and more competitive pricing, so our customers get the best deals, quicker.

For more details on Maxis Business Fibre Internet, call us at 1800 82 1919 or visit maxis.com.my/business

MR. LIAU SIANG CHAI

Maxis Broadband Sdn. Bhd. (234053-D)

IT Manager Fotokem Sdn. Bhd.

BUSINESS SOLUTIONS MADE FOR YOU

21