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Volume VIII No. 2 April 2012

The Business Digest of the European Union-Malaysia Chamber of Commerce and Industry

Islamic Finance

Ethical Financing the Way of the Future? KDN PP 14083/07/2012(030511)


Ethics & Finance The way forward in banking? The last quarter has been a busy one for the Chamber with many of our signature events taking place in the last few months. February saw the annual luncheon talk by EU Ambassador H.E. Vincent Piket, where he gave a candid and positive update on the EU situation for 2012, as well as many events by our EUMCCI Sectoral Committees, including a breakfast talk by CEO of Sustainability Energy Development Authority of Malaysia (SEDA) , Puan Badriyah Hj. Abd Malek, introducing the feed-in tariff and outlining the mandate of SEDA. In March we held the second in our series of Quarterly Financial Panel Discussions, with the focus this time being Islamic Finance. More in depth than the previous event in the series, the Islamic Finance dialogue – ‘Islamic Finance: The New Frontier of Financing of MNCs’ was a full day event, with a keynote speech by Tan Sri Dr. Zeti Akhtar Aziz, Governor, Bank Negara Malaysia. Whilst technical in some aspects, the event also posed the question of whether Islamic Finance is something that is, or should be solely confined to those companies with Islamic beliefs. What is becoming clearer is that many companies – MNCs included – are finding that Islamic financing is an effective and successful model for their business finance needs and that the possible stigma or reticence attached to the practice is possibly in many cases unnecessary and the result of a lack of information about the practice and products that it affords. Islamic Financing is growing despite this, and Malaysia is emerging in this market as a rising star, with many of the developments in new products and education being made in Malaysia. The Islamic Banking and Finance Institute Malaysia is an industry-owned institute dedicated to producing well-trained, high competence personnel and executives with the required talent in the Islamic finance industry and as such produce high level content within the sector and are the feature story for this issue of Review. Finally, in April, the Chamber held the third annual Trade and Investment Forum. An all day event, themed ‘Enhancing Cooperation: Innovation, Industry and Investment’, the forum featured discussion panels on key trade and investment topics – ICT, Trade Growth, Financial Intelligence and the Manufacturing and Services sectors, with a key note speech by YBhg Datuk Rebecca Sta Maria, Secretary General (Trade), Ministry of International Trade and Industry (MITI). In the same occasion we also launched the 4th edition of “EUMCCI Trade Issues and Recommendations” book, which comprises of position papers from our sectoral committees. I would like thank all the committees for their hard work on this document, which is valuable information for all businesses, European or Malaysian. Minna Saneri General Manager



Published by EU-Malaysia Chamber of Commerce & Industry (EUMCCI) Office Address Suite 3.03, Menara Atlan (Naluri) 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel: +603-2162 6298 Fax: +603-2162 6198 E-mail: EUMCCI Board Chairman David Jones Honourary Treasurer Dato’ Robert Teo Austria: Franz Schröder Czech Republic: Jan Vejmelka Denmark: Bjarne Foldager France: David Attar Finland: Jari Niemi Germany: Alexander Stedtfeld Greece: Stellios Plainiotis Ireland: Ron Anderson Italy: Massimo Giannelli Malaysia: Loong Caesar The Netherlands: Marco Winter Poland: Artur Dabkowski Spain: Luis Lopez Editorial Committee Minna Saneri – Editor Rebecca Simmonds Stefanie Braukmann – SPRG Contributing Editors Stefanie Braukmann Submissions Articles and other materials of interest to the general membership are actively solicited and may be sent to the Chamber. All materials submitted for publication are subject to editorial review and revisions. Reproduction No part of the EUMCCI Review may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission.

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Contents 3 EDITORIAL

22 EU & MALAYSIA NEWS 6 CHAMBER IN FOCUS 26 FEATURE 14 EVENTS VIP Luncheon with H.E. Vincent Piket

Circulation 3,000 copies of the EUMCCI Review are distributed, on a quarterly basis to EUMCCI members, all Embassies, industry associations and government officials with whom the Chamber has dealings as well as to European Chambers Worldwide.

EUMCCI Celebrates Malaysian and European Excellence in Creativity and Innovation at 2012 Europa Gala

Subscription Service Subscriptions from non-members are also accepted at RM80.00 (€28.00 abroad) for 4 issues. Individual copies may be purchased at RM25.00 (€8.00 abroad).

Quarterly Economic Panel Discussion 2012 – Islamic Finance: The New Frontier of Financing for MNCs

Designed by UR Graphic Sdn Bhd Printed by Anekaprint & Packaging Sdn Bhd No. 6 & 8, Jalan Asa 8, Taman Asa Jaya 43000 Kajang, Selangor

Enhancing Cooperation: Innovation, Industry and Investment

The Challenge of Becoming a Global Islamic Finance Hub – A Malaysian Perspective Global Sentiment is Improving but Challenges Lie Ahead GREENEVO Project - A Perfect Example of Public and Private Cooperation in Poland


On the cover: Tan Sri Dr. Zeti Akhtar Aziz, Governor, Bank Negara Malaysia

Chamber in Focus

2012 Europa Award Winners Shell Malaysia

Taking place on 29th February 2012, the Europa Awards 2012 yielded winners in two categories: Shell Malaysia who triumphed in the category Long Term Excellence in EU Malaysian Trade/Investment and DiGi Telecommunications who were awarded the accolade Highest Excellence Trade/Investment into Malaysia by European Investor. Both companies have the congratu­lations of the EUMalaysia Chamber of Commerce and Industry and thanks for taking part in this year’s event.

With a workforce of 6,500 employees, Shell Malaysia is a member company of Shell Group. The parent company of the Shell group is Royal Dutch Shell plc, which is incorporated in England and Wales. Backed by over a century of presence in the country, the Shell operations in Ma­laysia include our Upstream, Downstream and Projects & Technology businesses. Shell is the petroleum retail market leader in Malaysia, catering to one-third of Peninsular Malaysia and half of Sabah and Sarawak’s market requirements. Apart from managing one of the country’s largest networks of retail stations, and a robust upstream exploration and pro­ duction business, our operations also include the world’s first commercial gas to liquids plant of its kind in Bintulu, Sarawak, and a refinery in Port Dickson, Negeri Sembilan. We also provide technical, human resources, financial and business support



services and expertise to the Shell Group via the Shell Business Service Centre Kuala Lumpur. We aim to have a Health, Safety, Security and Environment performance that we can be proud of, to earn the confidence of customers, shareholders and society at large, to be a good neighbour and contribute to sustainable development. In pursuing high standards of per­formance, we seek a long term presence in Malaysia; striving to help all our stake­ holders, improving their quality of life, while contributing to the nation’s progress. Upstream Our Upstream operations have been in Malaysia for over 100 years, focussing on the efficient development and extraction of crude oil and natural gas offshore Sarawak and Sabah. Under production sharing contracts with PETRONAS, we are the largest natural gas producer in Malaysia.

Chamber in Focus

Shell’s recent venture into the relatively more challenging and costly deepwater exploration and production in Sabah and Sarawak, is an affirmation of its long-term stance in the upstream oil and gas industry.

DiGi Telecommunications

In Bintulu, our gas to liquids (GTL) plant is capable of converting natural gas into 14,700 barrels of GTL products a day. Virtually free from sulphur and aromatics, and highly biodegradable, GTL products are marketed to over 40 countries. We are also a partner in two joint ventures that convert natural gas to liquefied natural gas (LNG). Downstream In Downstream, Shell’s main activity is in refining, supply, trading and shipping of crude oil and petroleum products through the sales and marketing of transportation fuels, lubricants, specialty products and technical services. Shell is the petroleum retail market leader in Malaysia, and has one of the largest networks of retail stations in the country. The Shell Group has over 200 years of experience developing the technology and services that make it a leading provider of innovative fuels today. Projects & Technology Our Projects & Technology business pro­ vides technical services, technology capability and major project delivery in both Upstream and Downstream activi­ ties. It also oversees safety and environ­ ment performance and procurement processes across Shell. Shell Business Service Centre Shell Business Service Centre Kuala Lumpur (SBSC KL) is the second largest centre in Shell, supporting the Group with expertise in shared service delivery, drive discipline and core processes by partnering with the business to ensure optimisation of the entire network. Based in Cyberjaya, SBSC KL brings together these functions under a single shared services framework: Finance Operations, Customer Service, Supply & Distribution, Contracting & Procurement, Human Resources and Information Technology.

DiGi provides mobile voice and internet services. It is committed to driving Malaysia’s growth by building a mobile internet environment that enables true connectivity, creates socio-economic development, and helps businesses grow. DiGi continues to be a game-changer for the Malaysian telecommunications industry, with a solid history of product and service innovation, and is a leader in driving progressive and responsible business practices. Listed on Bursa Malaysia, it is part of global telecommunications provider Telenor Group. DiGi’s Director of Corporate Affairs Zaiton Hj Idrus who represented the Company at the Europa Awards ceremony said, “DiGi is part of the Telenor global network which is one of the leading mobile operators in the world with over 140 million mobile subscriptions.

Telenor has mobile operations in 11 markets in Europe and Asia. “Being part of this global network allows us to tap on best practises in various areas of the business, benefit from global initiatives and transfer of knowledge and technology for Malaysia in general and our people in particular. We will continue to leverage on this expertise to support the government’s aspiration for a connected Malaysia,” added Zaiton. For more information about DiGi, please visit

For further coverage of the Europa Awards, turn to page 15.



Chamber in Focus

SEDA Breakfast Puan Badriyah, CEO of the Sustainable Energy Development Authority of Malaysia (SEDA) gave a presentation of the SEDA portfolio an overview of the organisation’s Strategic Focus. At the event hosted by the EUMCCI Energy, Environment, and Green Technology Committee, Puan Badriyah gave a comprehensive run though of the mandate and the aims of SEDA in the coming year. Formed under the Sustainable Energy Development Authority Act last year, SEDA is the body governing the management and adminis­tration of the implementation of the feed-in tariff (FiT) mechanism as applied to small scale hydro and solar power, biogas, and biomass.

Giving an overview of the newly minted Renewable Energy Act and the funding and incentives available for RE projects, Puan Badriyah answered questions from the floor including the queries regarding the 20122014 solar FiT quotas, a concern of many that the current allocations are not sufficient to meet demand. With targets set at increasing the RE

contribution to Malaysia’s power mix to 10% by 2020, Puan Badriyah was confident that whilst currently an ambitious target it was one that was attainable with the help of individuals, businesses and communities investing in RE.

For more information on the FiT or SEDA visit:

What Companies Want and What Can Universities Provide? The EUMCCI Education Committee hosted a workshop to explore how universities and other tertiary level institutions can build on the ETP process to provide education programmes that produce the human capital and human resources required for sustainable socio-economic development, and create a workforce that is immediately employable, skilled, hard working, creative, inventive, productive, adaptable and flexible. With a presentation by a delegation from Polytechnic of Braga (IPB), Portugal, the event considered the differences and similarities between the university education in both Malaysia and Europe.



Education is seen as a central component of Malaysia’s aim to be a high-income country by 2020. Designated as a National Key Eco­ nomic Area (NKEA) within the Economic Transformation Programme (ETP), the Education indus­ try has been targeted to raise its total contribution to Gross National Income (GNI) from RM27.1 billion in 2009 (around 4% of GNI) to RM60.7 billion in 2020 (around 6% of GNI). This target also aims to create 535,000 new jobs in education and to increase student enrolment by 200,000 in higher education. The promotion of the Malaysian education system overseas will be a key

driver of this growth with plans to increase international students from 16,000 in 2009 to 74,000 by 2020. Attended by H.E. Vincent Piket, Prof.Datuk Dr. Md. Zabid Haji Abdul Rashid, President/ Vice Chancellor, UNIRAZAK and Tan Sri Datuk Eugenio Campos, Honourary Consul of Consulate of Portugal, the event saw a signing of an MOU between UNIRAZAK and IPB for a new study scholarship for members of the Portuguese settlement in Malacca.

Chamber in Focus

Automotive Committee The goals of the EUMCCI Automotive Committee are to raise the issues related to automotive industry with the Malaysian authorities, and build a constructive working relationship to ensure a cooperative approach with market access or regulatory issues.

“The goals of the EUMCCI Automotive Committee are to raise the issues related to automotive industry with the Malaysian authorities ...”

Committee aims: • To review the current import duties and tariffs imposed on imported and CKD vehicles. This is important given the opening of the ASEAN market under AFTA. • To review current non-tariff barriers local standards, specifications and tests imposed • To review current protection of limited spare part manufacturers (such as light manufacturers etc) • Improving the safety standard of all vehicles e.g crash testing • To debate imposition of CO2 emission regulations and other ‘green’ regulation anomalies including definition of a hybrid vehicle • Working with the government to review road safety measures

Healthcare Committee

“The aim of the EUMCCI Healthcare Committee is to be at the centre of debate in order to identify and prioritize key issues in the Healthcare industry”

The aim of the EUMCCI Healthcare Committee is to be at the centre of debate in order to identify and prioritize key issues in the Healthcare industry, including issues relevant to the EU-Malaysia FTA negotiations. The Committee acts as a forum to discuss and facilitate business and to propose an environment in which to improve business conditions as well as acting as a conduit, raising issues and creating a clear and transparent relationship with Malaysian Government. The Committee also functions as a lobbying tool for European companies to improve interrelation and communication with the stakeholders and other related government agencies.



Chamber in Focus

EUMCCI Launches Key Logistics Spots in Malaysia Map

EUMCCI Chairman Mr David Jones and MIDA CEO Dato’ Noharuddin Nordin.

The EU-Malaysia Chamber of Commerce and Industry (EUMCCI) in conjunction with the EUMCCI Logistics Committee, the EU Delegation and partners, launched the Key Logistics Spots in Malaysia map. An event attended by the heavy hitters in logistics in Malaysia and stakeholders in the logistics sector, the launch was opened by EUMCCI Chairman Mr. David Jones, who welcomed the timely release of the map. “Given the importance of the current FTA discussions between the EU and Malaysia and the growing strategy importance of Malaysia’s placement within the region, the Key Logistics Spots in Malaysia map will be a crucial resource for both businesses in Malaysia and those looking to invest.” Co-funded by the EU Services Sector project, the EU Ambassador was also present at the launch. “The Logistics Map and Report are two tools which open roads for greater EU-Malaysia cooperation. We are very keen to work with the different logistics stakeholders, including the Transport Ministry, to achieve a logistics environment of international

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standards. The EU is open to sharing with Malaysia our own experiences in a host of relevant policy areas from multimodal transport to green logistical corridors and beyond. This will help Malaysia reap benefits from the ASEAN Economic Community,” said H.E. Vincent Piket, Ambassador and Head of the European Union Delegation to Malaysia. The Key Logistics Spots in Malaysia map is a compilation of the data collected from a survey conducted by the EUMCCI Logistics Committee in 2011, amongst the logistics sector in Malaysia. The information was

Press conference with event keynote speakers.

collected with the help of Joint Initiative Part­ ners: Federation of Malaysian Manu­ facturers (FMM) and Malaysian-German Chamber of Commerce & Industry (MGCC) and Joint-Initiative Partners such as: Federation of Malaysia Freight Forwarders (FMFF), Asian Trucker, Malay­ sian Ship­ owners Association (MASA), Malaysia International Chamber of Commerce & Industry (MICCI), Maritime Institute of Malaysia (MIMA), Sarawak Timber Asso­ ciation (STA) and Sabah Timber Industries Association (STIA). The key nodal points highlighted on the map and the strengths listed are based on relevant and tested data from the logistics community. As Head of Logistics Committee, Mr. Marco Tieman highlighted, “The Key Logistics Spots in Malaysia map will provide both local companies and potential sources of FDI with an important reference, as transportation and facilitation of freight traffic will be at the epicentre of the ASEAN Economic Community (AEC), which we hope will be a reality by 2020. Malaysia’s logistics sector, strengthened by the capitalisation on the country’s

Chamber in Focus

competitive advantages could become the next leading logistics and warehouse hub in ASEAN and this is supported by the results of the EUMCCI’s Survey carried out in 2011.”

supporter for this project and we believe this will serve both as a business and marketing tool for the MIDA and Malaysia External Trade Development Corpora­ tion (MATRADE) offices locally and abroad.

Available in both hardcopy and digital formats, the map will be distributed through the EUMCCI and the communication channels of project partners both in Malaysia and abroad. It will serve as an important informative tool for students and researchers, transport and supply chain management and for potential FDI investors both from Europe and round the world.

The map was produced with the support of the EU Delegation, and the following sponsors: BNP Paribas, Building Logistics Blocks, Conference of Asia Pacific Express Carriers (APEC), Kuehne + Nagel, Maps Globe, MIDA and The Zon. Project Partners:

The interactive map available on the EUMCCI Services Sector website ( was produced under EU funded project Enhancing EU-Malaysia Cooperation and Business Dialogue. The printed map now is on sale at RM100, please contact to purchase.

Investment Partner:

The Malaysian Investment Development Authority (MIDA) is an instrumental

Amendments to the Employment Act 2012 Ms. Swee Hwa, Head of the EUMCCI HR Committee on 25th April opened the HR Employment Seminar, held at the Melia Hotel, Kuala Lumpur. Focused on termination of employment, detailing the procedure, effect, consequences and new developments in the Law, the session was conducted by two representatives from law

firm Raja, Darryl and Loh (RDL). Outlining elements of the law that often confuse, Mr. Ravindra Kumar, Partner at RDL and EUMCCI HR Committee Deputy Head, spoke on the intricacies of the procedure required in a dismissal followed by Mr. Deepak Mahadrean, Associate, who

outlined the details of the amendments to the Employment Act including the changes regarding sexual harassment. A half day event, the seminar covered a lot of information and received a positive response from attendees, given the detailed and technical subject matter.

Cyber Security and Online Child Safety The ICT Committee hosted a workshop on Cyber Security, focusing on the aspect of child protection, on the 18th April 2012. A panel of lead by ICT Committee Head Mr. Harith Menon set out the current risks and

Attendees at the Cyber Security panel discussion.

regulations associated with children and online security. Mr. Menon was joined on the panel by Lt Col. Dato Hussin Jazeri, CEO of Cyber Security of Malaysia (CSM), Mr. Ola Jo, Director of Corporate Responsibility from Telenor Group and Mr. Harjeet Singh, TKSU of Ministry of Women and Children Development. Mr. Singh outlined the position of the Ministry of Women and Children and highlighted the portions of the Child Protection Act geared towards online security and the safety of children in this particular arena. Lt Col. Dato Hussin Jazeri spoke on the

difficulties of proceeding with prosecution of criminals in this particular field and of the importance of prevention rather than cure, whilst Mr. Ola Jo of the Telenor Group outlined the specific steps taken in other countries, in particular Norway, with a focus on cyber bullying and online grooming – the areas that children themselves have identified as the most worrying dangers of being online. Mr. Jo also highlighted the DiGi Cybersafe campaign, fashioned after the Telenor model that is currently being launched in Malaysia in conjunction with SKMM, Cyber Security Malaysia and Childline. For more information on the CyberSafe programme visit:

EUMCCI Review 11

Chamber in Focus

OffShore Asia 2012 Attracts Thousands Offshore Asia, came to Malaysian shores – Kuala Lumpur Convention Centre specifically, in April for a three day event that encompassed both exhibition and conference. With over 4000 attendees from 49 countries, the event was held on the 21st -23 rd February. Both exhibition and conference were supported by The Malaysia Oil & Gas Services Council (MOGSC), Sabah Oil & Gas Contractors Association, Malaysian Society for Engineering & Technology and MATRADE. The exhibition saw over 60 exhibitors including Lima Bintang Shipping and Fowarding Sdn Bhd, Technip, Cameron and Maps & Globe Specialist Distributor Sdn. Bhd (partner for the EUMCCI Key Logistics Spots in Malaysia Map). The two-day conference opened with keynote addresses by Chen Kah Seong, Head of Petroleum Engineering Division at

PETRONAS Development & Production, Will Rowley of Acteon Group and Atsunori Takeuchi from Tokyo Gas Co. Ltd. The focus of the conference was divided into two tracks – E&P and LNG with more than 30 international speakers from contributing to provide a comprehensive and in depth overview of the sector’s pertinent issues. Presentations coveried all aspects of offshore technology exploration and production issues and challenge, including oil & gas exploration and production as well as the rapidly expanding LNG industry.

Clearly whilst the Oil and Gas industry is one of the most lucrative in the world, the problems faced by other sectors in regards to human capital and risk are still evident. The keynote speech given by Mr. Will Rowley of Acteon Group highlighted the biggest challenges of the sector – access to reserves, operational challenges and the human capital deficit. Despite this and the environmental and economic issues associated with Oil and Gas, the offshore oil industry is in an upward trend and this is foreseen to continue well into the next decade. Given the positive indications for the sector, OffShore Asia will be back in Kuala Lumpur in 19-21st February 2013. For information on participating visit:


EUMCCI Now Available in Print and Online

This quarter sees the release of a number of EUMCCI publications, namely the 2012 EUMalaysia Chamber of Commerce and Industry Trade Issues and Recommendations book, the EU-Malaysia Chamber of Commerce and Industry Key Logistics Spots in Malaysia map and the EU-Malaysia Chamber of Commerce and Industry Business Directory 2012/2013. Available in both hard copy and digital formats, details for all three publications can be found at

SPECIAL OFFER – purchase the EUMCCI Directory and receive the Key Logistics Spots in Malaysia map free!

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For more information or to order a copy of any of these publications please contact or


VIP Luncheon with H.E. Vincent Piket

Wednesday 22nd February 2012

Held at the Crowne Plaza Mutiara Kuala Lumpur, co-organised by MBDC, MFCCI and MGCC, the annual VIP luncheon with the EU Ambassador to Malaysia was well attended as interest members took the opportunity to converse with the Ambas­ sador regarding the economic situation in Europe and the impact this can expect to have on European countries operating in Malaysia, this year and in the near future. On the EU Crisis: “In 2012 the EU’s first priority is to get our economic house in order. We are determined to take the necessary actions needed to stabilise the debt situation, to stem the impact on the financial markets and bring us back to economic growth. Growth that is structural, sustainable and inclusive.” Mr. Piket acknowledged that the outlook for the euro in the past 6 months has been uncertain, but that the European Union government has taken steps to rectify this, citing new rules for Economic Governance, firewalls for against future crises and structural reform as just three of the major lines that the EU has set upon to re`establish financial stability within the Union. EU and Global Involvement: “The solution [to the crisis] is not in closing up but in staying engaged with the entire world. Through trade and investment. Through dialogue and collaboration.” Whilst the domestic workload of the EU will be significant, Mr. Piket confirmed that the way

EUMCCI Chairman Mr David Jones and EU Ambassador H.E. Mr Vincent Piket

forward remains in maintaining engagement with the wider world, both in business and in negotiations regarding issues such as climate change and aid. Given the FTA agreement in negotiation with Malaysia, EU is obviously open to business within the Asian region, and Mr Piket emphasized this interest, “This is going to be the Asian century, and the political and economic centre of gravity is shifting in this direction. EU wants and needs to be engaged with that. We want to be part of the growth of Asia’s emerging economies, through trade and investment.”

year, the EU was the third largest investor in the manufacturing sector with RM3.65bn of approved investment projects.” The relationship between the EU and Malaysia with the conclusion of the FTA agreement will continue to grow and develop – despite the sensitive nature of some of the topics being negotiated, all reports confirm that the current discussions are processing well, with Mr. Piket envisaging “the Malaysia – EU relationship [at] a wholly new level, with tangible benefits for governments, companies and citizens on both sides.”

EU and Malaysia: “Companies from EU member states continue to actively invest in Malaysia. Last

EUMCCI Events: Recent Activities: 22nd February 2012 VIP Luncheon with H.E. Vincent Piket, EU Ambassador and Head of the EU Delegation 29th

February 2012 Europa Awards Gala Dinner 8th March 2012 EUMCCI Quarterly Economic Panel Discussion

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20th March 2012 Breakfast Dialogue with Puan Badriyah, CEO of SEDA

20th April 2012 Panel Discussion on Trade Descriptions Act

26th March 2012 Panel Discussion on What Companies Want and What Can Universities Provide?

24th April 2012 Launch of EUMCCI Key Logistics Spots in Malaysia Map

18th April 2012 Panel Discussion on Cyber Security

26th April 2012 Trade and Investment Forum 2012


EUMCCI Celebrates Malaysian and European Excellence in Creativity and Innovation at 2012 Europa Gala

Wednesday 29th February 2012

The EU-Malaysia Chamber of Commerce (EUMCCI) showcased the excellence in creativity and innovation of European and Malaysian businesses at its Europa Gala night on February 29th 2012, with award winners Shell Malaysia and DiGi Telecommunications emerging as the top rated companies of the evening. The event, held at Hotel Istana in Kuala Lumpur, was a platform for EUMCCI to promote and showcase the growth of

will have a special category for creativity and innovation. Given today’s compe­titive business envi­ ronment, inno­ vation and creativity are key drivers in determining the success of any company,” he added. In the past, three categories have been recognised for the Europa Awards. This year, the categories voted on by the judges were Excellence in Trade/ Investment into the EU by a Malaysian company; Highest Excellence in Trade/

EUMCCI Chairman Mr David Jones

keynote speaker, gracing the event for the second year in a row. The Minister recognised the importance of trade and investment between Malay­sia and Europe, stating “the relationship between Malay­sia and Europe will continue to grow, especially with the successful conclusion of the FTA negotiations. Our two regions have a great deal to offer each other and will benefit greatly from continued collaboration.”

Europa Award Winners receive their prize

creativity and innovation among European and Malaysian companies and individuals. EUMCCI Chairman, Mr. David Jones said, “The awards are an acknowledgement of the contribution and collaboration of EU and Malaysian companies working to improve and increase trade between the two territories, using creativity and innovation as their tools.” “While we have always recognized excellence in trade and investment during the Europa Gala night, this year’s event

Investment into Malaysia by a European Investor; and the Long-Term Excellence in EU- Malaysian Trade and Invest­ ment. Whilst DiGi Telecommu­ni­cations emerged victorious in the Excellence in Trade/ Investment into Malaysia by a European Investor cate­gory, and Shell Malaysia took home the award for Long-Term Excellence, none of the shortlisted companies met the stringent conditions required for the third award.

With spectacular shows by Broadway Academy, a musical production company based in Petaling Jaya and cultural entertainment, in the form of a fashion show featuring innovative designs by EcoLifestyle Inter­national Movement and jewellery by Suhara Lifestyle, and an art exhibition featuring art by European artists, the event was an enjoyable evening for all. For more pictures from the event visit and look for the Event Gallery

The Minister of International Trade, YB Dato’ Mustapha Mohamed, was the

EUMCCI Review 15


Quarterly Economic Panel Discussion 2012 –

Thursday, 8th March 2012

Islamic Finance: The New Frontier of Financing for MNCs The EU-Malaysia Chamber of Commerce & Industry (EUMCCI) recently hosted the Quarterly Financial Panel Discussion 2012 entitled “Islamic Finance: The New Frontier of Financing for MNCs”. This Quarterly Roundtable and seminar brought together European, Middle East and ASEAN bankers, CEOs, finance experts and industry leaders from MNCs to speak on the role that Islamic finance might have on

“Very insightful dialogue sessions.” Azrina Mohd Isa, Senior Associate, SKRINE

facilitating greater trade and investment between EU and Malaysia. It commenced with a keynote address by Tan Sri Dr. Zeti Akhtar Aziz, Governor of Bank Negara Malaysia (Central Bank of Malaysia) who highlighted to all delegates that Islamic finance, which was previously domesticcentric, is now increasingly providing financial solutions for cross-border trade and investment. The Governor stressed that Islamic finance has thus become an increasingly important channel for the efficient allocation of funds across borders and the diversification of risks. The Governor also highlighted that the establishment of Islamic finance in key financial centres, namely London and Luxembourg, presents opportunities for businesses in the EU to raise funds using Islamic financial instruments such as the

“It was an event well organised and would like to congratulate EUMCCI and their team for the job well done. On behalf of Trasset, I would like to say thank you for the opportunity to work with EUMCCI and their team as their Corporate Partner. We look forward to working with EUMCCI again in the near future” Ms. Sherri Goh, Managing Director, Trasset International, Malaysia”.

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Tan Sri Dr. Zeti Akhtar Aziz, Governor of Bank Negara Malaysia

sukuk, and to diversify investment portfolios with Islamic fund and wealth management products. The development of Islamic finance has also been initiated in several other European economies. The Governor confirmed that Malaysia has entered into a number of collaborative arrangements in the areas of talent development and expertise, business linkages, and infrastructure development which led to

“Thank you very much for an excellent forum! It was very informative and useful for people – like me - who want to learn more about the industry.” Åshild Kjøk, Chargée d’affaires a.i. Royal Norwegian Embassy

Malaysia having signed Memorandums of Understanding in the area of Islamic finance with the UK, France and Luxembourg. The keynote address was followed by an address by our invited Plenary Speaker, Encik Zainal Izlan Zainal Abidin, Executive Director, ICM Business Group, Securities Commission, Malaysia who shared with the

delegates how Securities Commission had invested a significant amount of efforts and resources to develop the Islamic Capital Market. His address touched on three pertinent areas (1) Malaysia’s experience in building and developing a comprehensive Islamic capital market; (2) the major elements necessary to ensure its relevance and sustainability in this continuously evolving global financial market; and (3) its overall growth potential which involved the value proposition of several segments within the Islamic capital market. The CEO Roundtable Dialogue chaired by Mohammad Faiz Azmi, Global Islamic Finance Leader, PricewaterhouseCoopers provided an opportunity to raise issues and debate on the benefits and challenges of Islamic finance for MNCs amongst prominent Discussion Leaders such as Daud Vicary Abdullah, CIFP, President & CEO, INCEIF, The Global University of Islamic Finance, Tariq al-Rifai, Director Islamic Market Indexes, Down Jones Indexes from Dubai, Syed Alwi Mohamed Sultan, Head of Islamic Finance Asia Pacific, BNP Paribas Malaysia and Angus Salim Amran, Vice President and Head of Treasury and Capital Markets, Cagamas Berhad. This was followed by two highlight


sessions delivered by Ernö Kiss, Director, Trasset International, Italy and Ahmad Nasri Abdul Wahab, Partner in Islamic Finance Practice, KPMG Malaysia who spoke about (1) Shariah compliant capital flows and financial software solutions for Islamic banking systems implemented in Kuwait, Jordan, Saudi Arabia and Malaysia and (2) The benefits of Shariah auditing for financial institutions in Malaysia and how it enhances the banker-client confidence between the financial institutions and their MNC clients when conducting business transactions in Malaysia. The Closing Dialogue was a Panel Discussion on “How MNCs can tackle legal and tax challenges in Islamic Financing in their cross border business

“Relevant topics, good set of speakers, constructive discussion, and overall very well organized event.” Syed Alwi Mohamed Sultan, Head of Islamic Finance Asia Pacific, BNP Paribas Malaysia

addressed the tax and regulatory challenges affecting internationalization of Islamic Finance and she covered jurisdictions like Malaysia, Singapore and Australia, Dr. Aida Othman, Partner, Zaid Ibrahim & Co gave a short presentation of

Dato’ Maznah Abdul Jalil, Executive Chairman, Moore Stephens AC Advisory Sdn Bhd and Dato’ Dr. Jennifer Low, J.P, Group Managing Director, Quill Group of Companies.

“It was a good session, I enjoyed it very much as well! I look forward to more cooperation with EUMCCI.” Mr. Yee Wing Peng, Managing Director, International Tax, Deloitte Malaysia

We would like to thank The Asian Institute of Finance, our Strategic Partner, our Corporate Partner, Trasset International, Italy, BNP Paribas, our Programme Sponsor, our Official Web TV, Amilin TV and our Lead Media Partner, the REDMoney Group. We would also like to thank our Supporting Organisation such as: Islamic Banking & Finance Institute Malaysia (IBFIM), INCEIF – The Global University of Islamic Finance, Malaysia International Chamber of Commerce & Industry (MICCI), the British Graduates Asso­ c iation of Malaysia (BGAM) and CPA Australia. transactions. This was chaired by Mr. Yee Wing Peng, Managing Director, International Tax, Deloitte Malaysia. Experts such as Nicholas Edmondes, Co-Head, Islamic Finance Group, Trowers & Hamlins LLP provided case studies on deals he handled both in the UK, the Middle East and their relevance to Malaysia,  Jennifer Chang, Senior Executive Director – Tax Financial Services Pricewaterhouse Coopers Platinum Patners:

an Islamic finance transaction involving European and Malaysian counterparts and Dr. Mohd Daud Bakar, Chairman, Shariah Advisory Council, Securities Commission highlighted the real working of Fatwa and Shariah interpre­ tations in cross border transactions, its implications and best practices of Shariah compliance.

Corporate Partner:

Supporting Organisations:

Strategic Partner:

Programme Sponsor:

Official Web TV:

For further information on the next quarterly dialogue, please contact Ms. Jacqueline Chang, Policy & Project Manager, EU Services Sector Projects at or Ms. Geetha Veerasamy at events@

Lead Media Partner:

EUMCCI Review 17


Enhancing Cooperation: Innovation, Industry and Investment

Thursday 26th April 2012

From left to right: Mr. Fermin Fautsch, CEO, Logica Malaysia Sdn Bhd, Mr. Phang Ah Tong, Deputy CEO II, MIDA, Mr David Jones, EUMCCI Chairman, YBhg. Dato’ Sri Esa Mohamed, Co-chair of the National Export Promotion Council for Professional Services (NAPSEC) Ms. Asa Larsson, Senior Director, Corporate Public Policy - Southeast Asia, Deutsche Post, DHL.

The third annual EU-Malaysia Chamber of Commerce and Industry Trade & Investment Forum, in conjunction with the EU Dele­ gation, strategic partner, Asian Institute of Finance and supporting organisations MIDA and Matrade was held at the Royal Chulan Hotel Kuala Lumpur on 26th April 2012. Titled ‘Enhancing Cooperation: Innovation, Industry and Invest­ment’, the Trade Forum opening addresses were given by EUMCCI Chairman Mr. David Jones, EU Ambassador and Head of the EU Delegation to Malaysia, H.E Vincent Piket, and YBhg. Datuk Dr. Rebecca Fatima Sta Maria, Secretary General (Trade), Minister of International Trade and Industry (MITI), highlighting the continuing cooperation between the EU and Malaysia. The EU remains one of Malaysia’s largest foreign investors and the sectors in which that investment manifests are con­tinually expanding. The services sector is still growing with sectors such as Oil and Gas and ICT showing the most promise. EUMCCI Chairman David Jones elucidated on the factors drawing EU companies to

18 EUMCCI Review

Malaysia. “Despite the current issues in Europe, EU companies are facing the pro­ blems positively and are looking to expand into countries like Malaysia, which offer good logistics, infrastructure and a stable base of operations for their business.” The event saw the release of the third EUMCCI Trade Issues and Recommen­ dations book. An annual compilation of the

government development pro­ grammes, such as the Government Trans­formation Plan and the Economic Trans­ formation Plan. EUMCCI chairman Mr. David Jones said many of the issues EUMCCI has previously highlighted in the annual book are now recognized in government strategies.

“The EU remains one of Malaysia’s largest foreign investors and the sectors in which that investment manifests are continually expanding.” position papers from the 14 EUMCCI Sectoral Committees – including this year a special paper on Green Financing - the Trade Issues and Recommendations book is a barometer for the position and opinions of EU and local companies across sectors, on the issues that matter to their busi­ nesses. Many of the issues and ongoing recommen­ dations in the book are related to recent

“With developments like the introduction of the FiT and the debate on the amendments to the Employment Act, it is encouraging to see that the concerns raised by companies in Malaysia are being recognised.” Presented to all government depart­ments, agencies and stakeholders in Malaysia, the EUMCCI Trade Issues and Recommen­ dations book is recommended reading for


services sector and increased business opportunities bet­ w een European and Malaysian companies espe­cially in view of the ongoing FTA negotia­tions. This is a positive area of growth as YBhg Datuk Rebecca Sta Maria highlighted in her keynote address; Malaysia recorded a record FDI per­formance in 2011 with a figure of RM32.9 billion, as well as a GDP growth of 5.1% overall. A full day event, in conjunction with EU project partners the EU Delegation, MGCC and FMM, strategic partners AIF and sup­ porting organisations, MIDA and Matrade, the Trade & Investment Forum 2012 featured panelists from top companies such as Logica Malaysia, KMPG, BNP Paribas and EUMCCI Europa 2012 winners DiGi Telecommunications.

H.E. Mr Vincent Piket, YBhg. Datuk Dr. Rebecca Fatima Sta Maria and Mr. David Jones

those currently in business or con­sidering business in Malaysia. The ten key recommendations in the book are: • Ensure policy consistency and provide clear direction in development of policies • Develop IPR protection and enforcement

logistics, construction and building materials, ICT, air transport, oil and gas, financial services and education. These committees function as platforms for the EU and Malaysian companies to interact and to engage with the authorities in highlighting issues and recommen­dations and in organising informative events. EUMCCI’s prime focus remains on the services sector through the ‘Enhancing

“EUMCCI’s prime focus remains on the services sector through the ‘Enhancing Business Dialogue and Cooperation in the Services Sector’ project” • Review the equity conditions • Develop a competitive taxation and tax incentive climate • Develop human capital • Improve security level in Malaysia • Liberalization of services • Enhance transparency and minimize the level of corruption • Create a more conducive environment for innovation and creativity • Foster awareness of climate change and incentivize and speed up implementation of green technology

Business Dialogue and Cooperation in the Services Sector’ project, co-financed by the European Commission and the EUMCCI Trade and Investment Forum is part of this project. EUMCCI expects this project to translate into the enhanced competitiveness of Malaysia as a destina­tion for FDIs in the

Project Partners:

The Plenary speaker was Mr. Pascal Kerneis, Managing Director, European Services Forum, who gave an overview of the joint achievements between the EU and Malaysia in the EU Services Sector and presented a scenario for future of the trade and investment relations in in the services sector in the Asean Economic Community (AEC). A series of panel discussions through the day, touched on topics such as the services sector, financial intelligence for global trade, digital lifestyle initiatives and of course, trade and investment. All panels were supported by discussion leaders from government stakeholders.

For more information please visit the websites indicated. To order the EUMCCI Trade Issues and Recommendations 2012, please contact:

Supporting Organisations:

EUMCCI has established committees and working groups in many sectors such as

EUMCCI Review 19

EU Countries in Focus


Home to one of only 15 NATO cyber excellence centres in the world, Estonia is a small country with a big reach, thanks to its early and farsighted investment in the internet.

A member of the European Union and NATO since 2004, Estonia is a country that has embraced its autonomy since the fall of the Soviet Union and has made great progress economically, adopting the Euro as its official currency on 1st January 2011.

communications sectors. The internet is what has fuelled Estonia’s development as a country, providing a way for a very small population to strive for success as the nation was finding its feet after inde­ pendence.

One of the few countries in Europe with low public debt, the Estonian government has worked to sustain high growth rates for the country’s economy and despite a slump at the beginning of the Euro Zone crisis in 2009, Estonia currently has the highest GDP growth rate of the union, mainly due to a rise in exports and foreign direct investment.

As early as 1995, it was realized that computers and the internet would play a very big part in the development of Estonia and the government implemented a program to ensure this resource was available to all. If you visit Estonia now, there is free Wi-Fi available all the time, to everyone and public access points to the internet for those who wouldn’t be able to access it at home.

© European Union

The investors have been drawn to Estonia due to its strong electronics and tele­

20 EUMCCI Review

E-services in Estonia are far more prevalent and advanced than in many other countries, with banking, healthcare, taxes, and even voting amongst the services that are available electronically. 77% of the popu­ lation between the ages of 16-74 use the internet and 71% of all households have access to the internet (with most connections being made via broadband). All schools in Estonia are connected to the internet and this has been the case since 1997. With a paperless system in place in the government and a ranking of 26th in the networked Readiness Index – the highest ranking Central and Eastern European country – Estonia is understandably viewed as a frontrunner in the quest for a completely digital ready society. The second of the Chamber’s 2012 trade missions will be to Estonia and Finland. For more information, please contact Jacqueline Chang: Sources: CIA Factbook, Wikipedia,

EU Countries in Focus


Located near the crossroads of Europe and Asia, Greece is one of the cradles of European civilisation, whose city-states were pioneers in developing democratic forms of government. The historical and cultural heritage of Greece continues to resonate throughout the modern world - in literature, art, philosophy and politics.

Modern Greece has a republican structure based on the constitution of 1975. In 1981, Greece joined the EC (now the EU); it became the 12th member of the European Economic and Monetary Union in 2001. More than 50% of Greek industry is located in the Greater Athens area and the country’s main economic sectors are agriculture, tourism, construction and shipping. In 2010, as an outcome of the economic crisis, the Greek government adopted a medium-term austerity program that included cutting government spending, decreasing tax evasion, reworking the health-care and pension systems, and reforming the labor and product markets. To support the Greek government’s efforts to get its economy back on track, euroarea Member States agreed on 2 May 2010

on a three-year programme, providing a total of EUR 80 billion in bilateral loans. Together with EUR 30 billion from a standby agreement with the IMF, a loan package of EUR 110 billion was made available to the country in staged increments, in response to certain targets being met. Greece, struggled to meet 2010 targets set by the EU and the IMF. On 2 May 2010, the Eurogroup agreed to provide bilateral loans pooled by the European Commission for a total amount of EUR 80 billion to be disbursed over the period May 2010 through June 2013. The financial assistance agreed by euro-area Member States is part of a joint package, with the IMF financing additional EUR 30 billion under a stand-by arrangement (SBA).

The massive austerity cuts are lengthening Greece’s economic recession and depressing tax revenues. Athens is pushing efforts to increase tax collection, privatize public enterprises, and rein in health spending, in order to give the country more time to reestablish its economy and finances. Many investors doubt that Greece can sustain fiscal efforts in the face of a bleak economic outlook, public discontent, and political instability.

© European Union

On 21st March 2012, interim Prime Minister Lucas Papademos appointed former banker, Deputy Minister Filippos Sachinidis, Finance Minster of Greece, to facilitate the morphing of the receipt of the IMF rescue package into a repair of Greece’s economy. Seen as a safe pair of hands, it will be down to Mr. Sachinidis to ensure that the austerity measures that many Greeks feel are too extreme, will be worth it, with a return of the Greek economy.

EU Partliament President Martin Shulz and Speaker of Greek Parliament Philippos Petsalnikos

Greece & Malaysia Greek Ambassador to Malaysia: H.E. Mr Dimitrios Tsikouris Source: , CIA Factbook

EUMCCI Review 21

EU & Malaysia News

ZAB Promotes the State of Brandenburg in Kuala Lumpur Despite the uncertainty of the economic climate in the European Union community, the stable economic conditions in Germany have enabled it to weather the global financial crisis. The rapidly growing BerlinBrandenburg capital region is a focal point of European Business today. Brandenburg on a regional basis has proved steadfast, paving the way for it to be awarded the “European Entrepreneurs Region (EER)” and the “Leader of sustainable development and renewable energy” within Germany. In the run-up to the opening of the capital region’s new international airport, the Brandenburg Economic Development Board (ZAB) held an investment talk in Kuala Lumpur on 15 February 2012. “Apart from the investment potential within a 30 minute radius of Europe’s most modern airport, we will also be advocating the capital’s new exhibition centre located on the airport’s western boundary which will be the new home of the German Air Show (ILA)”, said Managing Director of ZAB, Dr. Rolf Strittmatter at the Executive Luncheon. The event organised by the Economic Development Board of Brandenburg (ZukunftsAgentur Brandenburg / ZAB) and the Malaysian-German Chamber of Commerce and Industry (MGCC) drew potential Malaysian investors from the aviation, logistics and automotive sector. Speaking at the media briefing, H.E. Dr. Gunter Grüber, Ambassador of the Federal Republic of Germany to Malaysia said, “Trade is followed by investment, and more and more Malaysian companies realize the opportunity of not only doing business in Germany but also investing there”.

From left to right: Alexander Stedtfeld (Executive Director, MGCC), H.E. Dr Günter Gruber (Ambassador of the Federal Republic of Germany to Malaysia), Jan Ernst (Senior Consultant, Brandenburg Economic Development Board), Dr. Rolf Strittmatter (Managing Director, Brandenburg Economic Development Board), Roland Folger (President, MGCC) at a press conference

As Europe’s newest airport the Berlin Brandenburg Airport (BER) comes into operation in June 2012, this dynamic economic factor will further increase the attractiveness of the region. This new generation airport will be setting new standards by providing business travellers, tourists and companies with an airport that offers the best connections, international flights, direct motorway access, and a railway station directly below the terminal. Moreover, this largest infrastructure project of eastern Germany is an inexpensive, functional and cosmopolitan architecture. “It is a very innovative and dynamic economy, and that’s what makes it an attractive location for business and investment, said Strittmatter, adding that

the airport opened a new chapter in investment opportunities. Participants had the opportunity to meet with regional business development authorities and companies executives who have been successful in Brandenburg. The Brandenburg Economic Development Board (ZAB) is a one-stop agency for a variety of business support services. It provides assistance in pursuing investment projects in Brandenburg, the German capital region, located between the Western European business locations, and the emerging markets in Central and Eastern Europe.

“Energising Develop­ment”: Commission’s New Initiative to Help Achieve Energy Access for All by 2030 A new EU energy initiative which will provide access to sustainable energy for an additional 500 million people in developing countries by 2030 was announced by European Commission President, José

22 EUMCCI Review

Manuel Barroso at the EU Sustainable Energy for All Summit in Brussels on 16th April 2012. The President unveiled this EU commitment in the framework of the Sustainable Energy for All Initiative (SE4All)

launched by UN Secretary-General Ban Ki-moon last year. The Commission’s proposals include a new EU Technical Assistance Facility worth €50

EU & Malaysia News

million over the next two years, which will support those developing partners that “opt in” to the initiative by providing EU expertise in the field; thereby promoting sustainable development and inclusive growth.As the largest provider of development assistance in the world, the EU plays a crucial role in efforts to end energy poverty around the globe. European Commission President José Manuel Barroso said: “The link between energy and development is fundamental. Without energy access, we simply will not meet the Millennium Deve­ lopment Goals. That’s why we’ve organised today’s summit – we are committed to the aim of providing universal access to sustainable energy for all by 2030. By bringing together our partners, the private sector and civil society, we will work shoulder to shoulder to make this aim a reality. With today’s strong pledge that we will assist developing countries in providing energy access for 500 million people by 2030, we are demonstrating our own

commitment and hope that others will join us in making sure that by 2030, energy access is no longer a privilege but the right of all.” UN Secretary-General, Ban Ki-moon said: “I welcome the commitment by the European Commission in support of the Sustainable Energy for All initiative. Its strong leadership in making energy central to its development policies, and for advancing the issue of energy access, helps place energy at the forefront of the global development agenda.”

The new EU “Energising Development” initiative will also focus on expanding and improving EU innovative financial instru­ ments to make sure that the billions of Euros that they leverage result in real change on the ground. This could include, for example, support to develop publicprivate partnerships on energy access in developing countries or setting up risk guarantee schemes in developing countries with a bank. This could potentially result in substantial investments, as it would provide investors with some assurance that their money is secure. The EU is the world’s leading donor on energy. In the recent Agenda for Change Communication in which the EU Commission sets out the bases for a reinforced development policy, energy was confirmed as one of its key priorities. Source:

EU Adopts Blueprint for open and Stable Investment Climates In April 2012, EU Trade Commissioner Karel De Gucht and Deputy Assistant to the President of the United States Michael Froman agreed on an ambitious set of investment principles and openly invited other countries to follow suit. In the framework of the Transatlantic Economic Council (TEC), the EU and the US have developed a blueprint for creating and maintaining stable, predictable and transparent investment regimes. The principles cover the elements which the EU believes are necessary to attract long-term sustainable investment.

to maintain open, transparent and nondiscriminatory investment climates. Simultaneously it confirms that govern­ ments can commit to a high level of investment protection and still maintain the right to regulate in order to pursue legitimate public policy objectives. In the view of the EU, such objectives include the environment, health, safety, labour or cultural diversity. The Statement also stresses that governments should not lower their standards, for example in relation to human rights or the environment, in order to attract foreign direct investment.

“Open investment markets generate growth and jobs – and these investment principles will support such an open investment climate,” said EU Trade Commissioner Karel De Gucht. “It’s another example of where the EU and the US are working together to keep trade and investment flowing worldwide.”

The EU and US have implemented these principles in their own respective investment regimes and call on other countries to consider them with a view to strengthening international investment markets.

The Statement on Shared Principles for International Investment urges governments

The EU tops the tables as largest source and destination for FDI in the global economy and after a severe decline in 2009, FDI flows are now slowly recovering. Global FDI inflows rose 5% to €930 billion

in 2010, according to the United Nations Conference on Trade and Development (UNCTAD) and are considered to be rising slowly towards the pre-crisis levels. According to the 2011 UNCTAD’s World Investment Report: • EU investors invested €305 billion outside the EU in 2010; • EU investors control about €6.7 trillion in FDI stock assets overseas, equivalent to about 60% of EU’s GDP; • Foreign investors invested a total of €229 billion in the EU in 2010 and control about €5.25 trillion of assets. For more information visit: april/tradoc_149331.pdf april/tradoc_149332.pdf Source:

EUMCCI Review 23

EU & Malaysia News

European Commission Plans to Establish a European Cybercrime Centre Due to rapid technological progress in this area, it is difficult to provide a single, definition of what ‘cybercrime’ entails. In general, however, the term may be divided into two categories: • Crimes that target computers directly; • Crimes facilitated by computer networks or devices (classic online fraud). Some examples of cybercrime include: • “Phishing” – making users reveal passwords or sensitive data through fake emails. • “Identity theft” – breaking into computer networks to steal personal data in order to sell it on. • “Computer virus” - computer programme with replicating ability, often with malicious intent. In the UK alone, cybercrime costs up to 30 billion euro every year, whilst the costs of identity theft are estimated at 1.7 billion euro. In Belgium, authorities reported an increase in computer crime offences and internet

fraud from just above 4000 in 2008 to over 7000 in 2010. In Germany, the Federal Criminal Police Office (BKA) recorded over 5000 cases of ‘phishing’in 2010. Given the nature of cybercrime and difficulty in establishing jurisdictional borders, the European Commission plans to create a European Cybercrime Centre. Fulfilling one of the priorities of the Internal Security Strategy, the Centre shall be at the heart of the European Union’s fight against cybercrime. Combining information from open sources, private industry, police and academia, the Centre will warn EU Member States of potential cybercrime threats and identify weaknesses in their online defences. The Centre’s four main tasks shall be to: • Serve as a focal point for European cybercrime information. • Pool European cybercrime expertise to support Member States.

© European Union

• Provide support to Member States’ cybercrime investigations. • Become the collective voice of European cybercrime investigators across law enforcement and the judiciary. The centre is expected to start operations in January of next year. An implementation team will be established soon to start the Centre’s set-up within Europol. Source:

International Mobile Roaming to Become Less Expensive within Europe Data roaming and phone calls abroad should be much cheaper this summer due to a deal to be brokered by MEPs and the Danish Presidency of the Council of Ministers in March and due to be approved by the rest of Parliament in May 2012. If approved, the new rules would take effect on 1 July 2012. “I am satisfied that the Council approved Parliament’s approach to tackle very high prices of phone calls, SMS and in particular of data roaming. The proposed price caps

ensure a sufficient margin between wholesale and retail prices to assure a level of competition that will enable new players to enter the market. Parliament succeeded in its call for cheaper data roaming for customers. This agreement increase transparency and consumer protection to prevent bill shocks, so that EU consumers no longer need to worry about accidentally running up huge bills when using their mobile devices both within and outside the

EU”, said Angelika Niebler (EPP, DE), Parliament’s rapporteur for the draft legislation. The new prices if the deal is passed in May are detailed in the table below: The current legislation capping roaming charges for phone calls, SMS messaging expires in 30 June 2012.

Retail ceilings (charged to consumers) excluding VAT Data (per megabyte) Phone calls made (per minute) Phone calls received (per minute) SMS (per SMS)

Current None 35 cents 11 cents 11 cents

1 July 2012 70 cents 29 cents 8 cents 9 cents

1 July 2013 45 cents 24 cents 7 cents 8 cents

1 July 2014 20 cents 19 cents 5 cents 6 cents

1 July 2013 15 cents 10 cents 2 cents

1 July 2014 5 cents 5 cents 2 cents

Wholesale ceilings (charged between operators) excluding VAT Data (per megabyte) Phone calls (per minute) SMS (per SMS)

24 EUMCCI Review

Current 50 cents 18 cents 4 cents

1 July 2012 25 cents 14 cents 3 cents


The Challenge of Becoming a Global Islamic Finance Hub – A Malaysian Perspective We need to corroborate because this is neither a one man nor a one nation show, this is at the end of the day for the greater benefit of global harmony and peace. So much is the potential of a working Islamic financial industry’s future

The current global crisis has seriously highlighted the importance of corporate governance that has been sidelined in order to make way for profits, which has brought nothing but detrimental consequences, the world over. The Islamic Finance tenets lie in transparency and corporate governance and have been seen in a new light with these current crises, but in order for Islamic Finance to develop further it needs to face its most crucial challenge, that is to supply a competent stable of talent relevant to the global market. At present, the Islamic Finance sector is in dire need for a talent capital management framework because without it won’t be able to stay nimble, innovative and relevant with the reality of the global market. The fact of the matter is, Islamic Finance education has been initiated spuriously all over the centres of Islamic Finance and at present enjoys a very special focus because of its potential to drive the economy and eventually contribute to the country’s GDP. In terms of talent demand for the overall financial sector, it is anticipated that over the next 10 years, a workforce of about 200,000 employees would be required, which is an increase of 56,000 people from the current 144,000 employees. There will therefore be strong demand across the financial sector, particularly for specialised skills in high growth and niche areas such

26 EUMCCI Review

as wealth management, Shariah advisory, corporate finance and investment advisory services. In Malaysia, the Islamic Finance sector has grown from only 6.9% in 2000 to 22% in 2011 and accounting for 2.1% share to the country’s GDP in 2009, as compared to only 0.3% in 2000. This has led to greater job creation where employment in the Islamic financial industry accounts for 11% of total employment in the financial sector. The Malaysian Islamic banking industry indeed has shown impressive and steady growth over the last decade - growing from 6% in 2001 to 22% of the banking sector by the end of 2011. The previous Financial Sector Master Plan 2000-2010 targeted a 20% market share for the industry. Malaysia itself, has focused its talent development in Islamic Finance efforts into four main categories that is tertiary education, workforce retraining, research and industrial link up and feedbacks. In Malaysia, several dedicated institutions for human capital development in Islamic Finance have been established to manage the sector’s talent pool. In terms of industry training, Islamic Banking and Finance Institute Malaysia (IBFIM) has to date, trained 32% of the total Islamic Finance industry workforce. The launch of IBFIM’s flagship programme - the Islamic Finance


strategize on new ideas to ensure quality education for Islamic Finance can truly be brought to the next level where our graduates are recognized globally and relevant in today’s demanding market. The internet and its technologies have made this goal a possibility. Webinars and real time lectures can be live streamed with a fraction of the cost and much less hassle than ever thought before. Apple for instance, has brought iTunes U, where selected free podcast and videos are shared for consumption for a global audience that seeks knowledge in various subjects. Islamic Finance experts and training centers should make a way to ensure that there are such opportunities for a truly global audience to reach us. This will assist to not just promote the fine Islamic Finance Education institutions but at the same time pooling a global base of Islamic Finance enthusiasts that could spearhead and shape Islamic Finance’s digital presence in years to come. Qualifications Framework and Progression Route - is part of this strategy for upgrading the skills and competencies of the existing talent in the industry. It provides a progressive structured route to the acquisition of the relevant knowledge for the different levels throughout the career of the workforce in the industry. IBFIM’s Certified Qualification in Islamic Finance (CQIF) framework was developed to ensure Islamic Finance industry’s capital is comprehensive and holistic in meeting the requirements for all levels. IBFIM is also now the leading Shariah Adviser particularly for the country’s Shariah-based unit trust funds and asset management companies. Overall, IBFIM caters to all four sub-sectors of Islamic finance: banking, takaful, capital market and wealth management. Its services cover almost all spectra of industry needs from training, to Shariah advisory, to consultancy, to knowledge management; each enriches the other. IBFIM is industryowned and Regulator-linked. This is a powerful characteristic that lends credibility to the institute. The next vital step is to consolidate a collaborative framework to foster knowledge sharing and networking for all Islamic Finance education centers. There is a need to leverage on all our expertise,

The pertinent question is “Where is the axis, focal point of reference or so called nexus for Islamic Finance education?” Right now, to the astute observer our state of Islamic Finance education is in disarray. There is no consensus on moving forward. Maybe we have all waited too long and each from the deep sense of responsibility guilt has spurred these efforts in the hope to contribute to the greater good. This is all good but this is not the smartest way forward, we need to strategise. Our task today is to challenge the perception that the Islamic Finance education hub is constricted to just physical structures and make it more abstract as to make it more accessible to further interpretation. When we are able to counter this mental block and perception we will award ourselves with a freedom to be creative in realizing a concept that is mutually beneficial to the whole industry. IBFIM CEO Dato’ Adnan was quoted saying that “We have to run away from constrictive

“We have to run away from constrictive perception that comes from geographical borders and limitations and accept the fact that we have the power to change whatever weaknesses into strengths...”

Besides extensive networking among education and training centres, that will of course refine the quality of our talents for the Islamic Finance industry, we must not forget to foster greater ties still with the industry players itself, which to whom we are supplying our graduates. As the industry moves into greater heights, greater demands for innovations and tactical market understanding is needed, who more able to supply us with this important info apart from the industry themselves. This industry and education ‘osmosis’ relationship is vital and needs to further develop a cohesive blueprint. The industry may need to seriously consider investing in setting up centres for research and developments to elevate further quality of the facilities knowing that the governments can only do so much.

perception that comes from geographical borders and limitations and accept the fact that we have the power to change whatever weaknesses into strengths. We need to corroborate because this is neither a one man nor a one nation show, this is at the end of the day for the greater benefit of global harmony and peace. So much is the potential of a working Islamic financial industry’s future”. Islamic Banking and Finance Institute Malaysia is an industry-owned institute dedicated to producing welltrained, high competence personnel and executives with the required talent in the Islamic finance industry. For more information visit

EUMCCI Review 27


Global Sentiment is Improving but Challenges Lie Ahead There has been a significant improvement in sentiment towards the global economy in the first few months of the year. Even though this improvement can be easily explained, it needs to be kept in context. There are still considerable challenges ahead.

When considering the economic outlook, we must not lose sight of two key influences. The first is the shift in the balance of economic and financial power, highlighted by the emergence of China, India and Brazil – not to mention a host of other economies across Asia, Africa and the Middle East. This shift is a strong, positive driving force. The second factor is shorter-term in its influence, but is negative. This is the overhang of debt that continues to weigh on the recovery in Europe and the US. The need to deleverage – as people, firms and governments pay off debt – points to a steady but unspectacular recovery in the US, and signals further problems in the euro area. It is against this backdrop that one needs to view the recent improvement in financial-market sentiment across the globe. At the end of last year, a number of factors were weighing on the world economy. Lest we forget, the markets feared a double-dip recession in the US, a hard landing in China and a collapse of the euro. None of these fears materialised. Thankfully, I did not share the markets’ views about the US or China, but I was pessimistic about the euro, expecting a muddle-through. The fact that economic data from both the US and China was better than expected helped sentiment, but the actions of the European Central Bank (ECB) were key.

28 EUMCCI Review

The ECB did a great job pulling the euro area back from the brink by providing cheap three-year money in both December and February. The ECB averted a bank collapse and a credit crunch, which in turn helped sentiment. As profound and necessary as the ECB’s actions were, the short-term relief it has provided should not be seen as a longer-term cure for Europe’s problems. This year, the world economy still faces significant challenges. Let me highlight the main ones. The first is the euro. The euro area is in recession. With the exception of France, most major European economies con­ tracted in the last three months of 2011. This included the peripheral euro-area countries of Ireland, Italy, Spain, Portugal and Greece. There is every likelihood that this contraction will have continued in the first quarter, and perhaps even in the first half of this year. In short, the periphery is seeing a double-dip recession. The ECB’s actions may have averted a credit crunch, but they will not prevent a credit squeeze where funds are still hard to come by. Moreover, the euro area is focusing on the wrong problem. Although debt levels are high, the biggest challenge is the lack of growth. Europe needs a growth strategy. It does not have one. Instead, it is cutting public spending and raising taxes to reduce debt. This is a long and painful process.


Unless private spending picks up, economies will be weak. The trouble is, with demand sluggish, many firms are thinking twice about increasing their spending. The result is a continuation of the difficulties that have engulfed the euro area in recent years. This means further problems for Greece, and future worries for Spain, Portugal and Italy, as they will be in recession, probably this year and next. Another challenge is the US. I am positive about America’s long-term prospects. If there were to be a pleasant surprise this year, with US growth being much higher, it would be because big companies whose balance sheets are in good shape decided to go out and invest. Instead, they seem reluctant, either because they fear demand will be weak, or because they are worried about the regulatory outlook following this year’s presidential election in November. Confidence, of course, is an impossible thing to predict. It would be pleasing if a rebound in confidence did allow corporate America to go on a spending spree. Yet, if it does not, then the backdrop for the average American will be one of only modest employment growth, a small rise in wages and a still-weak housing market. Americans still need to save more and spend less. This leads to the issue of energy and food prices. A year ago, rising food and energy prices added to inflation pressures across the globe, justifying higher interest rates in many growing economies. Now, rising oil prices appear more like a tax on global growth, eating into spending power in the US and Europe, and hitting many Asian economies at a time when they are slowing. The impact of oil prices on the global economy can never be underestimated. Rising oil prices are usually the biggest threat to continued global growth. There can often be a big difference between oil prices being driven higher by strong demand and by supply shocks. If strong demand is driving prices, then at least when oil prices rise, there is also increased spending and trade. In the past, demand-

driven spikes in oil prices would come late in an economic cycle. Now, it is demand from Asia and the Middle East that is driving oil prices up, and thus Western economies may not be in a strong position to cope. The more oil prices rise this year, the weaker the economic outlook will be in the West. This vulnerability is worse now, as supplyside worries surrounding Iran have led to a large risk premium, pushing oil prices up. Oil prices appear to have a firm floor because of strong demand, and a soft ceiling because of geopolitics. It is not just the West that watches prices closely. So, too, does China. Over the past year, China’s authorities have tightened policy in order to squeeze inflation. Their main focus appears to have been on property prices, yet they have also been keen not to see a wage-price spiral develop.

Thankfully, China has enough room for policy manoeuvre to cope with any setback, although that setback seems unlikely to occur this year. As the Chinese economy cools, one should expect further, gradual policy easing that allows for a rebound later this year. Over all, this should prove to be another challenging and interesting year for the world economy. In the immediate aftermath of the financial crisis, the world economy contracted in 2009, its first fall since the Second World War. In 2010, there was a strong rebound, with the world economy growing 4.4%, led by policy stimulus in the West, and by the strength of China and the emerging econo­ mies. But in 2011, the pace of growth slowed as the policy stimulus in the West started to wear off and as more economies in Asia and Latin America raised interest

“The impact of oil prices on the global economy can never be underestimated. Rising oil prices are usually the biggest threat to continued global growth.”

As has so often been the case in recent years, the Chinese authorities have handled things well. But the challenges are not getting any easier. China’s economy is cooling, not collapsing, and it is having a soft, not a hard, landing. At this year’s National People’s Congress, Premier Wen Jiabao sensibly cut the growth projection to 7.5% from 8%. Although I remain posi­ tive about China’s longer-term prospects, it is important to stress that, at some stage, China will have a setback. This should be seen as a feature of China’s likely development. As the economy grows bigger, it becomes harder to manage than in the past. Moreover, the need to switch from investment- to consumption-led growth poses many challenges.

rates to curb inflation. Last year, the world economy grew by 3%. This year, the good news is that there will be growth, but the challenge is that it seems difficult for it to be any higher than it was in 2011. Europe faces further chal­ lenges. America still has a debt mountain to climb. And many emerging economies have been slowing in the early months of the year. The economic story is one of a fragile West and a resilient East. Dr Gerard Lyons is Chief Economist at Standard Chartered Bank. For more information regarding Standard Chartered Bank visit

EUMCCI Review 29



Innovation is the key to success for many countries. Poland boasts great potential, especially in technical areas, and patented solutions are exported to markets abroad that serve to satisfy demand there and support economic development here. The quality of Polish scientific and technical thought is proven by the fact that the largest global corporations locate their Research and Development centres here. It is important to support the potential of creative people, and to encourage them to transform their knowledge into concrete accomplishments. What is GreenEvo? www.greenevo. GreenEvo – Green Technology Accelerator is an innovative project of the Ministry of the Environment, designed to promote Polish environmental technologies and support the development of enterprises in this field. The aim of the project is to assist Polish companies involved in the development of green technologies in their operations on international

30 EUMCCI Review

markets and their preparations for competitive management of their projects. The task of the GreenEvo is to ensure the support of a public institution in the process of preparing a technology for its transfer abroad in the future and for finding foreign partners. The project was prepared at the Ministry of the Environment as part of the activities serving the Polish Presidency of COP 14 in Poznan´ , i.e. the United Nations Climate Conference, which was convened in Poland in December 2008. GreenEvo is consistent with the idea of the Poznan´ Strategy for Technology Transfer; a document, the adoption of which was one of the achievements of the Poznan´ COP 14 th. Conference. It provides for the enhancement of the efficiency of technology transfer, through good identification of the needs of developing countries in this area. Basic tools for implementing the objectives: • Identification of the situation on the environmental technology market in Poland; • Advisory support (promotion and legal advice on mobilising financial resources for development) for selected companies

and ensuring their free access to expertise; • Integration and application of existing tools for supporting companies as applied by different Ministries and institutions; • Promotion abroad, using the channels for promoting companies, supported e.g. by the Ministry of Foreign Affairs, the Ministry of Economy and the Polish Agency for Enterprise Development; • Preparation of a catalogue for promoting technologies, along with a report on the environmental technology market in Poland, which will become a tool for promoting the technologies abroad and facilitating their development. GreenEvo Editions – 1st, 2nd … After the success of the 1st edition of GreenEvo (2010), the time has come to select new leaders of Polish green tec­ hnologies. Strict assessment and selection of the submitted technologies has been carried out over several months. The solutions proposed by Polish com­ panies represent a very broad spectrum,


(Municipal, industrial, medical, hazardous waste management, Recycling, Software supporting waste management); • Solutions supporting energy saving, including: (Energy storage, Energysaving sources of light, Solutions supporting energy-saving in the construction industry, Software supporting optimization of energy consumption); • Systems supporting monitoring and collection of the information on the natural environment. Since August 2011 the laureates of both project editions have taken part in a range of trade and economic missions as well as in numerous exhibitions and conferences. They have presented their technologies in India, Ukraine, Russia, Vietnam, Kazakhstan, Algeria so far and they have other visits planned (to the Emirates, Armenia, Azerbaijan or to Moldova). They had the opportunity for match-making, business talks, exchange of knowledge and experience. The experts of GreenEvo project have provided them with support in technology transfer issues (advisory). GreenEvo Accelerator – support including, among others, such areas as energy saving solutions, renewable energy sources, water and sewage technologies, reclamation of lakes, as well as technologies supporting waste management and air protection. These include an innovative method of disposal of hazardous waste, hybrid drying of sludge, driver for remote control of electrical equipment or wireless power system with eco-fuel cell. In May and June 2011, their representatives held a series of training courses organized by the Ministry of the Environment on the international sale of green technologies, professional presentation techniques, professional sales techniques and public support instruments for companies. After deliberations and analysis of docu­ mentation, a specially appointed, inde­ pendent Jury selected 17 most competitive and innovative Polish pro-environmental technologies. In October 2011 Minister of Environment granted awards to the following companies: APANET S.C. Andrzej Lis, Piotr Leszczyn´ ski, APS Energia S.A., ATONHT S.A., Chemadex S.A., CTE

Carbotech Engineering Sp. z o.o., DAGAS Sp. z o.o., EKOTOP Roman Sobczyk, Fu-Wi Sp. z o.o., MULTICHEM Eko Sp. z o.o., NMG Sp. z o.o., POLIMAT EKO Sp. z o.o., PROCOM SYSTEM S.A., PROTE Technologie dla S´ rodowiska Sp. z o.o., REDOR Sp. z o.o., WSK Kraków Sp. z o.o. and Zespół Innowacyjny PROMIS Sp. z o.o. Their technologies aim at decreasing negative human impact on the environment. Areas of environmental technologies in the 2nd edition: • Renewable energy sources, including: (Biofuels and biomass, Liquid and solid fuels, Fuel cells, Water power engi­ neering, Wind power engineering, Photovoltaics and solar collectors, Geothermal power engineering); • Air protection, including: (Capturing and storage of carbon dioxide, Reduction of industrial pollutant emissions, Reduction of greenhouse gas emissions); • Water and sewage management, including: (Municipal sewage treatment, Industrial sewage treatment, Water treatment); • Waste management, including:

for companies

The companies which participate in GreenEvo – the Green Technology Accelerator are able to use different forms of support. Support tools available A representative of one of the companies participating in the first edition of the Accelerator suggested that entrepreneurs needed “conditions of support for exports which are not too bureaucratic”. Despite the rich variety of support instruments offered by the Polish public administration, entrepreneurs do not make use of all the opportunities available. The aim of the Accelerator is to make it easier for compa­ nies to find the appropriate sources of cofinancing for the projects which they under­ take. Due to their cooperation with the National Fund for Environmental Protection and Water Management, the Ministry of Economy and the Polish Agency for Enterprise Development, entrepreneurs can find their way through a maze of legislation, rules and regulations in order to use the forms of support available to the producers of environmental solutions.

EUMCCI Review 31


GreenEvo brand Some companies participating in the Accelerator have pointed out that many foreign buyers are suspicious about technically advanced solutions originating from Poland. We will attempt to change this by building the GreenEvo brand as a sort of guarantee for the quality of green tech­ nologies “made in Poland”. The Accelerator competition makes it possible to make up a list of the best green technologies deve­ loped in Poland. The competition winners will be able to use the GreenEvo brand and the related values, which would make their solutions credible on international markets. Leading Polish solutions will also be promoted in the course of international meetings of the representatives of the public administration. The Acceleratorrelated marketing materials will promote the winning companies. In turn, the companies will be able to use the GreenEvo visualisa­ tion in their own promotion activities. Marketing support Polish green technologies are often cheaper than their foreign counterparts and many solutions have no direct counterparts at all. But what can potential customers think when they hear that a given technology is distinguished by a low price and uniqueness? Can they definitely understand the real benefits offered by the solution offered? The companies participating in the Accelerator are assisted in the preparation of company promotional materials. They are able to take part in training courses on the presentation of the benefits, rather than only the parameters of functional techno­ logical solutions. Experts are helping them identify the features which make their technologies different and prepare pro­ motion materials for foreign customers. Commercial missions abroad The basic aim of the Accelerator is to support the international operations of the participating companies and the exports of Polish technologies. The participating companies have been divided into groups on the basis of their experiences to date and their capacity to operate on their own in foreign markets. The “sink or swim” approach cannot be applied to all the companies, as some of them can become excellent swimmers, whereas others may wish to make use of the assistance offered. In turn, the Accelerator can help the more independent companies identify favourable directions of foreign expansion for their

32 EUMCCI Review


existing solutions - and not the ideas and concepts

supporting environment protection in a broad sense


commercialized and implemented in real customers

...Polish... ...for export...

contribution of the native technological idea and not distribution of someone else’s products support for the Polish export and not sale in Poland or import

technologies. The companies participating in the Accelerator is planned to use the commercial missions abroad, and organisational support for their participation international fairs. They will also be able to seek co-financing to cover the costs of these activities within the framework of export support instruments available from the Ministry of Economy and the Polish Agency for Enterprise Development. Specialist training courses The companies participating in the Accelerator can use the training courses available, e.g. on: • Techniques for sales of complex technological solutions and the shift from price-based competitiveness to value based competitiveness; • Development of marketing messages addressed to customers and journalists; • Preparation of business plans for new undertakings; • Mobilisation of resources for development and implementation of projects (also within the framework of the Operating Programmes: Infrastructure and Environment and Innovative Economy); • Patent protection of inventions in Poland and abroad. The training courses will be delivered by external experts and experienced public administration staff. Further development One of the participants in the Accelerator noted already at the outset of cooperation that “the qualification for GreenEvo brings benefits in itself. The participation incites the management to review its strategy, reminds it of its chances on foreign markets and mobilises it to take action. Knowledge of foreign markets The entry of a technological company to a

foreign market requires the knowledge of specific provisions of law, rules and technical standards, often the adaptation of the technologies offered to them, as well as the passing of certification processes. It becomes a challenge to find partners and to check whether the selected companies can be trusted. Not all companies can aptly use securities for export transactions. Some projects to implement Polish techno­ logies can count on co-financing from foreign funds and development aid programmes. The Accelerator experts and partners assist companies to collect the necessary information concerning selected foreign markets and the conduct of operations on these markets. In many situations, the Trade and Investment Promotion Sections and the Economic Sections of the Embassies of the Republic of Poland turn out to be indispensable sources of information. Protection of industrial intellectual property A commercial success of Polish techno­ logies will be short lived if their international sale is not accompanied by the appropriate protection of intellectual property. The companies which develop unique tech­ nologies sometimes forget that by offering them on foreign markets they run the risk that their ideas may be stolen and their solutions may be copied; unfortunately, the possession of Polish patents will not protect them against such abuse. The protection under international patents can safeguard intellectual property rights, but can sometimes be expensive. Therefore, in cooperation with the Patent Office of the Republic of Poland, the most appropriate form of protection of a technology can be chosen and options for its financing considered.

Questions to

What do you consider to be your biggest challenges and opportunities in your current role as MD of Schenker Malaysia? I believe challenges are quite important in today’s environment and should not be seen as a stumbling block. Malaysia is a growing market and this is beneficial for players in the logistics industry.

Wolfgang Laabs Managing Director of DB Schenker Interview by Firdaus Khan, SPRG Malaysia

There are plenty of business opportunities out there and we as a company need to ensure that we set our targets and follow our own strategy; the challenge here is to ensure that we are on track and do not lead in the opposite direction. The company strategies and goals are actually developed within the senior management group. It is not the typical top-down approach as we take into account feedback from the ground, prior to setting the goals, targets and direction of the company; it is really focused on the spirit of working together. Our senior management team meets regularly to ensure that we are on the right track and provide direction as the business environment changes for the respective business year, but of course, also looking ahead three to four years in advance. This is the second time that you are returning to Malaysia, the first was 1993 to 2002, and then you came back in 2006. In that context, is there any area of your work here that you did not expect before you came to Malaysia and how different it is to functioning in the same role in Germany?

and making decisions. Employees in Europe are much more challenging, they challenge their superiors and debate on the direction of the company. They do not accept decisions simply on face value. On the other hand, in Asia, the employees are much more respectful of their seniors and will adhere to all instructions without

“Schenker is a global organisation with its head office in Germany, which naturally means that many of our customers are global corporations with global needs� I would say it is the most important task of a Managing Director to ensure that you develop a team that is motivated from within, with a lot of its own energy and I think this is something that takes a lot of time and effort. This method is particularly important in Asia to run a company. The key difference between the employees in Asia to Europe is questioning authority

questioning. I started to shift this mindset, to get the employees to make their own decisions; when they come in with a problem, instead of providing the solution, I will lead them to find the answer and decide. I refrain from really responding, sometimes it is hard, and I am quite sure in the beginning most of the employees thought that I was incompetent

and did not know a thing when they came in with a question and I questioned them in turn. We have come a long way since then and needless to say, it has been fun. When we discussed growth and development, you commented on the people element. How difficult is it to recruit and maintain the right talent for your company? I think it is important for any good leader to really understand the needs of employees. Personally I have developed the ability to sense whether an employee is vulnerable and somehow is not happy with the job or their role in the company. We have been blessed by the fact that fluctuation among our management team has been next to zero. We have stability in the integral management team of 12 general managers and 7 directors and this is something that has helped us tremendously. If you look at all our branch

EUMCCI Review 33

Questions to

driver to the senior manager is required to go for few days training to increase their knowledge or sharpen their skills. Looking at the recent Free Trade Agreement between Malaysia and the EU, do you see a stronger growth potential for logistics and if so, how is Schenker positioned to take advantage of such growth? Free trade in our industry is definitely beneficial because less custom duties and taxes, coupled with less hindrances will encourage trade. Schenker is a global organisation with its head office in Germany, which naturally means that many of our customers are global corporations with global needs.

managers, whether in Penang, Port Klang or KLIA, you would discover that they have worked for us, on average for more for than 10 years. On the other hand, yes it is extremely difficult to hire qualified people to be a part of the larger team. It is very costly for companies in Malaysia because most of the companies I am talking to have the same scenario on staff retention. There is simply no other remedy to this except to rehire and

retrain. During our last Regional Management Meeting which is held twice a year, one of the main topics was talent management and retention. As part of this, we are offering regional and global training programs. It is a clear commitment from Malaysia and the region as a whole, to allocate more time and money to have a higher budget on training. Today, each of Schenker’s employees, from the forklift

So organisational and trade growth resulting from the FTA is definitely being accelerated. We take advantage of this growth potential by providing services to our clients who operate globally, have investments in Malaysia and of course have trade relations to Europe but also into Asia. This is evident from the amount of cargo movement within intra-Asia which is actually growing faster than the direct exchange of goods from Europe into Far East.

EUMCCI Corporate Partners Enjoy Special Benefits on

QATAR AIRWAYS Great savings on all Qatar Airways European/USA/South America destinations through authorized agents. For more details please contact the authorized travel agent:

34 EUMCCI Review

Diethelm Travel Malaysia Sdn. Bhd. • For Ticketing Email Phone 03-2715 7878 PIC 8 consultants at service • For Enquiry (besides ticketing/bookings) Email Phone 03-2715 7878 PIC Raimond Wee

Corporate Partner News

Qatar Airways Opened New Premium Lounge at London Heathrow London, UNITED KINGDOM – Qatar Airways is has opened its new Premium Lounge at London Heathrow, reinforcing the importance of one of the airline’s busiest routes. The Premium Lounge at Terminal 4 will be the airline’s first dedicated facility for First and Business Class passengers outside its Doha hub. The carrier currently operates the award-winning Premium Terminal at Doha International Airport, exclusively for use by passengers travelling in First or Business Class. The opening marks the start of another busy year for the carrier, with the launch of new routes, as well as additional capacity on the London Heathrow – Doha route, being stepped up from four to five flights a day, effective March 25.

lounge, discreet power sockets at every seat and a business centre that includes PCs and printers.

Middle East, Africa, Asia Pacific, North America and South America with a modern fleet of 104 aircraft.

Qatar Airways Chief Executive Officer Akbar Al Baker said that the new lounge reflected the importance of extending the airline’s award-winning service beyond the signature Premium Terminal in Doha.

Qatar Airways has orders worth over US$ 50 billion for more than 250 aircraft, including Boeing 787s, 777s, Airbus A350s, A380s and A320 Family of aircraft.

“London has long been one of our best-performing routes, so Heathrow was an obvious choice for our first Premium Lounge outside Doha,” he said.

Following a landmark year in 2011, which saw Qatar Airways introduce 15 new destinations to its network and win the coveted Skytrax Airline of the Year Award, the airline’s new Heathrow lounge is set to become the benchmark for international airport lounges. Designed to resemble a boutique hotel or private member’s club rather than a conventional airport lounge, the new Qatar Airways Premium Lounge at Heathrow has been created to provide the ultimate in luxury and Five-Star service. Qatar Airways recruited lounge staff from Five Star hotels and restaurants to work in the theatre-style Global Brasserie kitchen and innovative Delicatessen.

“With the London 2012 Olympic and Paralympic Games taking place this summer, the international spotlight will be on the British capital and we look forward to the increase in capacity and welcoming more premium travellers on our high demand services to London.

The lounge also includes private shower facilities, with heated floors and mirrors, hotel-style towels and luxury brand toiletries and amenities.

During 2012, Qatar Airways will launch flights to nine new destinations: Baku (Azerbaijan), Tbilisi (Georgia), Kigali (Rwanda), Gassim (Saudi Arabia), Helsinki (Finland), Zagreb (Croatia), Mombasa (Kenya), Zanzibar & Kilimanjaro (Tanzania), Erbil & Baghdad (Iraq), Yangon (Myanmar), Belgrade (Serbia), Perth (Australia).

Business and leisure travellers can stay connected with free Wi-Fi throughout the

Qatar Airways currently operates scheduled flights to 110 destinations across Europe,

The rapid expansion of Qatar Airways prompted the State of Qatar to embark on one of its biggest projects – the construction of a brand new international airport in Doha, which is scheduled to open in 2012.

For further information Qatar Airways Group Corporate Communications Tel: +974 – 44302072 Fax: +974 – 44302069 E-mail: Website:

EUMCCI Review 35

Corporate Partner News

A Jewel in the Heart of Malaysia InterContinental Kuala Lumpur is set to debut a new lobby and guest experience in May 2012. Upon entering the lobby, guests will experience a spectacular illusion of floating jewels. The dazzling chandelier, comprised of thousands of crystals cascading down from the ceiling, is an example of modern yet elegant design. The signature element to the new lobby design will be the Concierge Lounge. The first of its kind in Malaysia, this lounge will feature cozy sofas in an interactive seating design with the latest technology availablefor guest use, including iPad and iPod docking stations.

The new Concierge Lounge showcases the brand position “In The Know” where InterContinental Hotels & Resorts are dedicated to providing local, authentic and enriching travel experiences to guests around the world. At the Concierge Lounge the knowledgeable concierge team will supply guests with tips on how to truly explore the city as a local.

For more information, please contact Michelle Gregory; michelle.gregory@

New arrival at The Prince Hotel Prince Hotel & Residence Kuala Lumpur has a new Director of Rooms, Mr. George Kenton. He has been with the hotel since November 2011 and has settled into the role, assuming smooth operation of guest services in an attentive and courteous manner while also maximizing room revenue and productivity. Coming to the Prince Hotel & Residence from Emerald Hotel & Conference Centre - a boutique hotel in New Zealand - as their General Manager and Mr. Kenton has also previously worked with Hilton, Marriott, Accor and Radisson Brands in various roles including Purchasing Manager, Front Office Manager, Director of Rooms, Director of Food & Beverage and Executive Assistant Manager. With over 25 years experience in the industry across Europe, Australia and New Zealand as well as a core background in rooms operations he developed a passion

36 EUMCCI Review

for food while at Hilton Adelaide as Director of Operation where he worked with Cheong Liew, a native of Kuala Lumpur who has been honored as one of the ten hottest chefs alive. “I started as a pot washer and server at a local Italian restaurant and soon found that making people happy made me feel good so I started studying, got a full time job at an international hotel and the rest is history,” Mr. Kenton added that making people feel welcome and doing things for people makes hospitality employees feel good which the basic essence of the industry is. Prince Hotel & Residence Kuala Lumpur, a member of WORLDHOTELS, is an international 5-star hotel which is located in Kuala Lumpur’s Golden Triangle. Recently, Prince Hotel & Residence Hotel Kuala Lumpur was awarded as one of the Top 25 Luxury and Bargain Hotels in

Malaysia 2012 as acknowledged by and was also awarded Outstanding Hotel Partner 2011 by For enquiries, please contact 03- 2170 8888 or email:

New Corporate Partners

New Oil & Gas Products from De Lorenzo DE LORENZO, an Italian company and a leader in the field of technical and vocational training and famous worldwide for their expertise and products’ quality in many different fields, such as electrical and electronic engineering, automation, process control, renewable energies, power engineering, and much more, is once again leading the way for education. DE LORENZO , has recently opened a new line of didactic products for the Oil & Gas industry. Details of the proposed equipment are now available on a dedicated page of the website On this section of the DE LORENZO website, it is possible to find a set of

Atos Services (M) Sdn Bhd

De Lorenzo SpA

Grand Hyatt Kuala Lumpur

machines and equipment that are commonly used in the oil industry: compressors, different types of pumps, etc.

petrochemical plants that are most used in the treatment of oil: absorption/desorption, distillation columns, reactors, gas purification, liquid-liquid and solid-liquid extractors, heat exchangers, etc., plus a number of trainers for the study of

In particular, it is worth highlighting the Cathodic Protection trainer, a very high standard and specialized didactic tool that teaches the two most effective methods for preventing or delaying corrosion in expensive metal structures, such as oil platforms, pipelines, refineries tanks, etc.: the sacrificial anodes and the impressed current methods.

For more information, please visit:

1st Floor, 2310 Century Square Jalan Usahawan 63000 Cyberjaya, Selangor Tel: +603-8316 0288 Fax: +603-8318 6001/6002 Email: / Website:

Point of Contact: Mr Magnus Alvarsson, Head of Country

Viale Romagna 20-20089 Rozzano (Milan) Italy Tel: +39 02 8254 551 Fax: +39 02 8255 181 Email: Website:

Point of Contact: Mr Enrico Selva Bonino, Sales Manager (Asia Pacific)

12, Jalan Pinang 50450 Kuala Lumpur Tel: +603-2182 1234 Fax: +603-2182 1288 Email: Website:

Point of Contact: Mr Robert Dallimore, General Manager

Brief Company Profile: Atos is an international information technology services company. It is focused on business technology that powers progress and helps organizations to create their firm of the future.

Brief Company Profile: De Lorenzo, established in 1951, manufactures and sells technical training equipment for: Universities, Technical Colleges, Polytechnics, Technical Schools, Vocational Schools, Education Centres and Teacher Training Centres.

Brief Company Profile: Grand Hyatt Kuala Lumpur is a 412-room hotel that is ideally located in the city centre and adjacent to the Kuala Lumpur Convention Centre (KLCC). The hotel features a sky lobby, 3 restaurants, 35,530 square feet of event space including the Grand Residence and a spa with 11 treatment suites.

EUMCCI Review 37

New Corporate Partners

Jacob Fleming Asia Sdn Bhd

2501, Central Plaza 34, Jalan Sultan Ismail 50250 Kuala Lumpur Tel: +603-2141 5319 Fax: +603-2141 5350 Email: Website:

Point of Contact: Mr Silvester Pullman, Managing Director

Pan Pacific Kuala Lumpur International Airport

Jalan CTA 4B, 64000 KLIA Sepang Selangor, Malaysia Tel: +603-8787 3333 Fax: +603-8787 5555 Email: Website:

Point of Contact: Mr Hans Winsnes, General Manager

Trasset Software Development & Services Sdn Bhd

A-22-3 Menara UOA Bangsar Jalan Bangsar Utama Kuala Lumpur, Malaysia Tel: +603-2201 0819 Email: Website:

Point of Contact: Mr Erno Kiss, Director

38 EUMCCI Review

Brief Company Profile: Established in Slovakia the orchestra of 34 nationalities distributes the cutting-edge information to business authorities. Since 2004 we encourage decision makers in sharing their experience. The annual audience of 10,000 Banking, Defence, Energy, Oil&Gas, Pharma, Telco and Transport peers benefit from insights on industry trends when applying them into their business life.

Brief Company Profile: Inspired by the KL International Airport’s “airport in the forest and forest in an airport” theme, our awardwinning hotel is linked to the airport via a skybridge. Everything about the hotel is designed to meet the needs of the business traveler. From a convenient check-in counter at International Airport,buggy service to and from the hotel, secretarial services at all hours of the day and night, 24 hour health club, sumptuous food and beverage outlets to wireless broadband internet access. We have our warm and friendly associates to accommodate to your every need.

Brief Company Profile: TRASSET is a leading software solution provider for banking and financial institutions delivering proven software and quality services. We have a very rapidly growing customer base, which includes big banners like ING Bank, Raiffeisen Bank, AXA, Allianz, Al Rajhi Bank etc. More than 100 Banking and financial Institution sites run on our suite of Banking and financial products, managing assets worth billions of Dollars. Currently, we have operations in 15+ countries spanning across Europe, M.E and Asia Regions and have massive expansion plans to have a global coverage through strong alliances with leading system integrators offering solutions to BFSI domains across the Globe.

EUMCCI Corporate Partner Benefits Network: With over 30 events each year, at all levels, the Chamber allows members to meet leaders in business and political spheres. Communicate: The EUMCCI Quarterly Review is sent to over 3000 companies, in hard copy and online. The EUMCCI e-bulletin is sent to over 6000 business leaders bi-monthly. Exposure: The Chamber is online at, on Facebook and Linked In. Advertise with us on our website and in our publications. Member perks: Attractive discounts from our member companies and vetted partners. Influence: Raise issue via Committees and dialogues. Online listing: All members are entitled to a listing in our online directory with a weblink directory to your own website.

‘It is pleasing to see the EUMCCI ICT Committee taking a proactive role in raising key issues and driving relevant industry activities over the year with the intent of raising the profile of European companies in Malaysia’ – Mr Harith Menon, Head, Marketing and Corporate Affairs, Nokia Siemens Networks

‘The EUMCCI helps us to open doors and broaden our network of partners through a variety of platforms’ – Simon Burley, General Manager, M+W Group, Malaysia

Qatar Airways – EUMCCI Platinum Partner

To become a Corporate Partner contact us:, +603-2162 6298 or visit our website to sign up online

Qatar Airways privileges for EUMCCI Corporate Partner include: Year round discounted prices to select destinations

Profile for EUMCCI

EUMCCI Review - April 2012  

Coverage of the EUMCCI Quarterly Financial Panel Discussion and a main feature from IFBIM.

EUMCCI Review - April 2012  

Coverage of the EUMCCI Quarterly Financial Panel Discussion and a main feature from IFBIM.

Profile for eumcci