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EU-Malaysia Trade Issues and Recommendations 2013 book is out! Retirement Age & Minimum Wages Order How it will affect companies

junE – AUG 2013

Cyberjaya as the Global ICT Hub: Tan Sri Mustapha Kamal Abu Bakar’s vision and mission Malaysia’s First LEED building


Global Hub of Opportunities

Cyberjaya is a preferred destination for Shared Services & Outsourcing and Data Centres in the Asia Pacific Region as it offers a unique combination of best people, competitive cost of doing business together with world class infrastructure and business environment. A Safe Haven for Business with more than 600 business entities currently operating in Cyberjaya which includes multinational companies, large local corporations, Government Agencies and SMEs. A Diverse Talent Pool Feeding Eco-system with world class education hub consisting of 4 universities, 2 colleges, 1 International school and 2 Government Secondary & Primary Smart schools.

A Hotspot Development Corridor with 16 major developers further investing RM20 billion to build more offices, commercial & residential units to meet the requirements of the growing population, making Cyberjaya a conducive environment to live, study, work, & play.

For further information, please contact:

The Lodge, Persiaran Multimedia, Cyber 7, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia General Line: +603 8312 8000 | Fax: +603 8312 8100 | Email: |

Setia Haruman is the Master Developer of Cyberjaya entrusted with designing, planning and developing the 7,000-acre land bank in Cyberjaya into an intelligent city with facilities of world class standards.

ED IT OR’S NOT E Forging Ahead



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Greetings! It’s hard to believe that half the year has gone by. It only seemed like yesterday that we said goodbye to 2012 and greeted 2013. In the past six months EUMCCI has been very busy organising a lot of events. The Chamber News (starting page 30) gives you a glimpse of what EUMCCI has been up to. In our March issue, we carried the interview with the Chairman of EUMCCI Mr. Fermin Fautsch. In that interview he said, “We need to position Malaysia as a hub in ASEAN.” Tan Sri Mustapha Kamal, the subject of our cover story too wants to position Cyberjaya, Malaysia’s Silicon Valley, as a hub – as a global ICT hub to be precise. Read about his vision for Cyberjaya in our cover story starting on page 4.






Editor’s Notes

Is Europe’s winter of discontent over? All signs seem to point that way. Dr. Peter Bekx, also known as Mr Euro was down in Kuala Lumpur and he had some very reassuring words to say about Europe’s recovery (page 28).


Cover Story “Cyberjaya: The Global ICT Hub”

EUMCCI’s much awaited book, EUMCCI Trade Issues and Recommendations 2013 is finally out. For more information about the book, turn to page 16. The EUMalaysia Trade Investment Forum 2013 was also successfully held in April. The emergence of the ASEAN Economic Community in 2015 offers a lot of opportunities for European companies in various fields.

14 Cyberjaya: A Lush Green Intelligent City

The next few months are also packed with loads of activities for EUMCCI. I hope that you the reader will be a part of those activities. We strive to make EUMCCI a chamber of distinction that serves its members well.

10 Malaysia’s First LEED Building 12 Roll of Honour

16 EUMCCI Trade Issues and Recommendations 2013 20 AEC 2015: Challenges and Opportunities 24 EU Country Focus: Republic of Sweden 26 Minimum Retirement Age and Minimum Wages Act 28 Europe On The Right Track 30 Chamber News 34 Europe Round-Up 36 Corporate Partner News

I hope you enjoy reading this issue and as always I welcome suggestions on how to make it even better.

39 New Appointments

Minna Saneri

44 Seen and Heard at the Tastes of Europe Fest


40 New Corporate Partners

48 Calendar of Events


CYBERJAYA: THE GLOBAL ICT HUB Tan Sri Mustapha Kamal Abu Bakar, Chairman of Setia Haruman Sdn Bhd, the master developer of Cyberjaya, is determined to let the world know about the Information and Communications Technology (ICT) jewel that is Cyberjaya. He tells Sharmila Valli Narayanan about the advantages that Cyberjaya has over other ICT hubs and efforts being made to ensure there are enough skilled workers to meet the demands of the multinational ICT companies. photography by Zurin Noh


hen Tun Dr Mahathir Mohammad, Malaysia’s fourth Prime Minister launched Malaysia’s version of the Silicon Valley, Cyberjaya in 1997, the 7,000 acre area was at that time an oil palm plantation. Setia Haruman Sdn Bhd was tasked with the responsibility of developing the area. Setia Haruman now is made up of EMKAY group, of which Tan Sri Mustapha Kamal is the founder, which owns 75 per cent of the company while UEM Group holds the remaining 25 per cent. The company had to turn this green field into the country’s first intelligent city and ICT hub. There were many skeptics who thought it could not be done.

are residential areas comprising houses and apartments that have sprung up and many more are also being built. Driving around Cyberjaya one can literally feel the pulse of energy that emanates from the area.

Fast forward to present time. Cyberjaya is abuzz with activity. There is a frenetic activity of construction with lots of new developments mushrooming in the area. There are also many eye-catching office buildings which house thousands of workers; many more office buildings in the process of being built while some are waiting to be occupied. There

However, ever since Mustapha Kamal via EMKAY Group took over Setia Haruman, things have begun moving at a rapid pace in Cyberjaya. One key indicator of Cyberjaya’s growth is its population. In 2004, seven years after the start of Cyberjaya, the day population was 20,000. Between 2005 and 2012, it had expanded to 53,000, an increase of over



It was not always like this. The years soon after the launch of Cyberjaya were not kind due to several economic crisis that hit the world: there was the Asian financial crisis which started in 1997, followed by the dotcom crash in 2000 and the terrorist attacks of 9/11 in the United States. Understandably all these had a major effect on the progress of Cyberjaya as companies opted to rent rather than buy and build their facilities here in Cyberjaya.

30,000 over a seven year period. “Of these, 30,000 are knowledge workers and 21,000 are students,” explains Mustapha Kamal. “There are three international standard universities, two colleges, one international school and three government schools. At present 40 per cent of the students in the universities at Cyberjaya are international students. Two more Malaysian universities will commence operations this year,” he adds. Mustapha Kamal has his eyes on a bigger goal. He wants to position Cyberjaya as a global ICT hub. EUMCCI REVIEW (ER): There’s a new buzz about Cyberjaya. It’s as though the city has a new spring in its step. Why is that?

Mustapha Kamal (MK): A wellplanned city from the start, Cyberjaya is at present being developed under the motto ‘Live, Study, Work and Play’ with the aim of establishing within it the crucial elements that would make it a complete township. To date, 61 per cent (2,230 acres) of Cyberjaya’s land has been sold, with 30 per cent (1,087 acres) already fully developed and 34 per cent (1,258 acres) currently under development or in its planning stage.

had begun buying large parcels of land in Cyberjaya.

It has transformed itself from a quiet city to a ‘Hot Spot Development Corridor’ and has in the process become one of Greater Kuala Lumpur’s success stories. Top private property developers realised the potential of Cyberjaya and from 2009

By the year 2016, most of the development of Cyberjaya that is being developed by the 16 developers is expected to be completed. By then Cyberjaya would be able to comfortably provide all the required amenities for people to live, work and shop here.

“It has transformed itself from a quiet city to a ‘Hot Spot Development Corridor’ and has in the process become one of Greater Kuala Lumpur’s success stories” Today, I am proud to say, there are more than 60 MNCs, government and private data centres, contact centres, shared services, R&D centres as well as other facilities. All in all, over 700 business entities, of which more than 300 are companies with MSC Malaysia Status, have taken root in Cyberjaya, creating jobs that have attracted more than 30,000 knowledge workers. EUMCCI REVIEW



acclaim and has put it on the global map. Everyone knows that the movie Life of Pi won four Oscars for special effects. But did you know that the company that did the special effects for the movie has a branch here in Cyberjaya which did some work for the movie? The same branch in Cyberjaya also did some of the eye popping special effects for the world-wide hit Snow White and the Huntsman.

“Cyberjaya will remain at heart an intelligent city that is clean, green and lush.” The growing number of completed office space in Cyberjaya also reflects this, with a total 11.1 million sq ft spread across more than 60 buildings. Even so, there is a continued increase in the demand for more office space and land here by MNCs who are planning to set up their operations here. For example, companies like IBM Global Delivery Centre (Malaysia) Sdn Bhd and Satyam Malaysia Global Solution Centre Sdn Bhd have indicated that they are going to increase and expand their operations here. What’s interesting is that despite all these developments, 48 per cent of the land in Cyberjaya is -- about 3,300 acres -- reserved for public amenities and greenery. Cyberjaya will remain at heart an intelligent city that is clean, green and lush. (ER): What is the role of Setia Haruman in Cyberjaya? (MK): Setia Haruman is the master developer of Cyberjaya. As the master developer, Setia Haruman was given the responsibility of overseeing the overall development work that included planning, construction of the infrastructure and the exclusive rights to develop and sell land parcels and other real estate developments in Cyberjaya on a fasttrack basis to turn it into an intelligent city with world-class standards and facilities. By 2016 when most of the ongoing projects in Cyberjaya are complete, Cyberjaya will truly be a well-balanced city with ample amenities and conveniences and a conducive eco-system. It will live up to its tag of being a city where people live, work and play. 6


(ER): What are the types of developments taking place in Cyberjaya? (MK): Currently there are about 16 developers who are investing more than RM20 billion worth of development in Cyberjaya. Out of this, EMKAY Group’s investment itself is about RM4.82 billion and Setia Haruman’s is about RM2.1 billion. Setia Haruman currently has four on-going commercial and residential projects. On top of that it is also investing an additional RM400 million for the city’s globally acknowledged world class facility and infrastructure. The investment will be spent on roads and drains the laying of fibre optic, building a water reservoir and a sewage treatment plant. The projects by the various developers include residential, commercial developments and retail options. There will also be many integrated entertainment and lifestyle driven shopping malls in Cyberjaya. The first mall is slated to open its doors next year. Some of these malls when complete will also complement the needs of knowledge workers and the residents within Cyberjaya and its surrounding townships. (ER): Are there any other stakeholders in Cyberjaya besides Setia Haruman? (MK): The other stakeholders are Cyberview Sdn Bhd, a government-linked company and landowner of Cyberjaya. Among its roles is to ensure that Cyberjaya is developed in accordance with MSC

guidelines and to build supporting amenities for the Cyberjaya community; MDeC or Multimedia Development Corp, among other things, promotes MSC Malaysia and acts as a one-stop agency for MSC status company and the Sepang Town Council which is the local planning authority and is the provider of municipal services. Setia Haruman has a development agreement with Cyberview whereby it has the exclusive right to develop and sell the land. It is the cooperation between all the stakeholders that has resulted in the success of Cyberjaya.

(ER): Your company took study tours to visit the two ICT regions in Asia: Dubai and Bangalore. What did you learn from those study tours? (MK): The study tours were fantastic as they made us realise what were the strengths and weaknesses of Cyberjaya in relation to the two cities. What we learned was that world class buildings and infrastructure alone do not guarantee the success of a city as an ICT region. Dubai’s infrastructure is unbelievable: the buildings and infrastructure being developed are described as the eighth wonder of the world. Yet, Bangalore, with its inferior physical infrastructure even when compared to Cyberjaya – the facilities within

the ICT centre is fantastic but outside it, which I call Indian Bangalore, is chaotic! -- is the preferred destination for ICT companies from all over the world. Bangalore is the undisputed Silicon Valley in Asia. The reason for this is simply because India has a large pool of intellectual capital available at a reasonable cost. India churns out three million graduates a year out of which 16 per cent are focused on science and technology. So, how can Cyberjaya reposition itself in the face of competition from Bangalore? Cyberjaya has three things going for it. Firstly, the city’s solid infrastructure is second to none. Cyberjaya is very well connected via highways to the Kuala Lumpur International Airport and Kuala Lumpur city. Its other plus

points are the multilingual population with workers who speak English, Malay, Tamil and Mandarin and vast expanse of land, which is scarce in cities such as Bangalore and Singapore. In Bangalore for instance, if a company wants to expand, it probably has to do it a few kilometres away. In Cyberjaya there are approximately 1,300 acres of land available for future development which are located close to other buildings or companies. If a company buys 10 acres and utilises only five, it still has room for future expansion. Setia Haruman and the city’s stakeholders are focusing on three strategic thrusts to make Cyberjaya the preferred ICT destination in this region. We want to attract more knowledge workers to live and work here through the provision of strong public amenities and support

“The creative multimedia companies have also done Cyberjaya proud as its computer graphics animation have won world-wide acclaim and has put it on the global map”

(ER): What are the types of companies that are in Cyberjaya at the moment? (MK): As I mentioned earlier there are more than 60 MNCs and other companies in Cyberjaya at the moment. These range from data centres, global business delivery centres, creative multimedia companies and other business and support services. There are also a host of government agencies that have set-up their operations here due to the conducive eco-system that is available here. Besides being well known for our collocation Data Centres (currently there are 12 of them), Cyberjaya is fast becoming a ‘Global Business Hub’ as more companies are relocating to or setting up their Global Business Delivery Centres in Cyberjaya. Meanwhile, we are also encouraging home grown industries to be based in Cyberjaya. The creative multimedia companies have also done Cyberjaya proud as its computer graphics animation have won world-wide EUMCCI REVIEW



on the list of top employers in Cyberjaya. The Global Service Centre of the World Health Organisation is also located here. EUMCCI (ER): You are planning to go on a roadshow to Europe about Cyberjaya. Why did you pick Europe and what do you hope to accomplish? (MK): We would like to understand the current and new emerging ‘people and value centric’ trends and developments that are shaping the future cities in other parts of the world that can be incorporated in the review of the planning of the future development of Cyberjaya. At the same time, Cyberjaya has lots to offer to MNCs in Europe who may want to set up their operations here. We want to promote Cyberjaya as a choice location to these companies.

“In Cyberjaya there are approximately 1,300 acres of land available for future development which are located close to other buildings or companies” systems. We are also attracting universities, colleges and institutions of higher learning to partake into the set up of a talent pool feeding eco-system so that we can build a pool of knowledge workers and offer a good blend of targeted jobs at affordable cost. EUMCCI (ER): One of the concerns of companies setting up base in Cyberjaya is whether they will be able to get the skilled workers that they need. How is this problem being addressed? (MK): To realise the vision for Malaysia to be a major global ICT hub, the Government recognises the importance of human capital to meet the demands of the industry. MSC Malaysia Bill of Guarantees offers attractive incentives to investors and companies 8


including unrestricted employment of local and foreign knowledge workers. But we cannot rely on foreign knowledge workers alone. It is imperative that Malaysia produces graduates who meet the needs of the industry. Unfortunately at present this is not happening. Thankfully we the stakeholders have a ‘how to do it’ plan. MDeC champions the Knowledge Workers Development Initiative (KDI), which was set up to meet the demands of the current and future workforce requirement of the local ICT industry. A variety of programmes included under KDI are based on actual industry requirements. KDI also engages other strategic partners such as Talent Corp and the Performance Management and Delivery Unit (PEMANDU) to ensure the objectives

I read with interest the interview with Luc Vandebon, Ambassador and Head of Delegation of the EU in the March issue of the EUMCCI Review. He said that “Malaysian companies regard EU’s health and safety standards as trade obstacles.” I would like to point out that in Cyberjaya Malaysians are more than ready to meet EU’s stringent standards. Proof of that is the construction of the Shell Business Service Centre by EMKAY Group. This is the first Leadership in Energy and Environment Design (LEED) building in Malaysia. LEED, developed by US Green Building Council is an internationally recognised green building

certification system. It won the LEED Gold accreditation (for Core and Shell) and now has attained the LEED Platinium standard for their interior fit-out of this building. It also won the FIABCI Malaysia Property Award for Sustainable Development in 2012. I also agree with the view of the chairman of EUMCCI Fermin Fautsch of the need to position Malaysia as a global ICT hub. I hope my trip particularly to Europe is one of the steps towards this goal. I look forward to working with EUMCCI in ensuring that this goal is met. EU

“Cyberjaya has lots to offer to MNCs in Europe who may want to set up their operations here”

of these programmes are aligned with the current strategic directions of the country. One particular pilot programme that I am personally monitoring is the IndustryAcademia Collaboration (IAC) where students from selected universities are now placed for internship in the ICT companies for six months. Whatever it is, by 2016 when Cyberjaya is fully developed we have to be ready with our pool of knowledge workers to fulfill the expectations of the MNCs. Cyberjaya would have reached a tipping point. For us, as a master developer, failure is not an option. EUMCCI (ER): How many European companies are there currently operating out of Cyberjaya? (MK): There are about 12 European companies and out of this list, four of them – Shell Business Service Centre, HSBC Electronic Data Processing, Ericsson Expertise Centre and RBC Dexia Investor Services – are among the top 10 employers in Cyberjaya. HSBC is the top European employer with 4,000 employees and is second EUMCCI REVIEW




The construction of this building has been a good learning experience for EMKAY Group and for Shell too, says Tan. “Some of the LEED requirements are more suited for temperate countries. EMKAY found ways to adapt those requirements for our equatorial climate and so paved the way for building LEED certified buildings for an equatorial environment. The company has also proven that Malaysian developers can meet the stringent requirements for LEED certification,” she adds.

History was created in the Malaysian property development industry when the Shell Business Service Centre building in Cyberjaya was accredited with the nation’s first LEED Gold certification.


rive through Cyberjaya, the nation’s first Intelligent City, and the visitor is struck by the unique designs of the many office buildings. There is one building in particular that immediately grabs one’s attention thanks to its futuristic design. One design element of the building that immediately catches one’s eyes is the huge hole that is at the centre of the roof of the building. This is one of the features that make this building so iconic in Cyberjaya. The building is the Bangunan Lestari Kumpulan EMKAY and it is currently occupied by Shell Business Service Centre. The building has the distinction of being the first building in the country to receive LEED (Leadership in Energy and Environmental Design) Gold accreditation (for Core and Shell). LEED, developed by the US Green Building Council, is an internationally recognised green building certification system. It has been widely accepted as the benchmark for the design, construction and operation of high-performance green buildings. The building was constructed and developed by Joyful Gateway Sdn Bhd, a subsidiary of the EMKAY Group. The LEED rating system is based on six categories, says Balasundram R, Chief Operating Officer in EMKAY Group.


In 2012, the building won the prestigious FIABCI Malaysia Property Award for Sustainable Development. EU

“These categories are sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation in design. Initially it was a challenge for us to construct this building because we had not done anything like this. It was a learning process for us but in the end we did it beyond our expectations and constructed it within 11 months.”

principles within all its activities to deliver sustainable outcomes. In line with this, all new Shell buildings need to have a minimum of LEED Silver certification. This building is certified gold for the core and shell (base building) when it was handed over to us. In the two years after we have moved in, we have attained LEED Platinum certification for the interior fit-out of this building,”.

Some of the energy saving features of the building include: • An efficacious rainwater harvesting system • The use of native plants that require minimal watering • The building is designed to harvest daylight to reduce lighting energy • The use of under floor air con for a more efficient and effective cooling system • Energy saving lights are used throughout the building • The building materials and products used for the construction of the building have been extracted, harvested or recovered, as well as manufactured, within 500 miles • Low VOC (fumes emittingpaint) has been used throughout the building

Shell places much emphasis on the health and safety of the people working here. “This is evident in the the facilities we provide which includes a commercial grade gym and the strict implementation of safety and security rules throughout the building,” she adds. Mabal Tan, General Manager, Shell Business Service Centre “Shell has been in Malaysia for over 120 years. In Shell, we are committed to the goal of doing no harm to people and protecting the environment, while developing energy resources, products and services consistent with these aims,” explains Mabal Tan, General Manager, Shell Business Service Centre. Shell embraces sustainable development

Contrary to public perception, the cost of building an environmentally friendly building is not astronomical, says Tan. “The cost is not really that high compared to a regular building. Sure it does cost more, for example to invest in energy saving light and a rainwater harvesting system initially but it’s not astronomical. The best part is in the end we save a lot in terms of energy and water consumption. In the long run, maintenance of a green building is more economical.” EUMCCI REVIEW 11


ROLL OF HONOUR Over the years, Setia Haruman Sdn Bhd, the master developer of Cyberjaya has won many awards and achievements for its development of Cyberjaya. Here are some of them:

• 2004 • 2006 • 2007 • 2007 • 2010 • 2011

• 2011 • 2012

: The FIABCI Malaysia Property Award for Best Resort Development : The FIABCI Malaysia Property Award for Best Office Development Category : The Prix d’ Excellence FIABCI Global Property Award under the Office/Industry Category : The Energy Efficient Building under the ASEAN Energy Awards and Tropical Building Category organised by ASEAN Centre for Energy (ACE) for Street Mall : Selected as the Pioneer City to adopt Green Technology agenda by the Prime Minister : Malaysia’s first LEED Gold Building for Bangunan Lestari Kumpulan EMKAY (BLKE) which marked an important milestone for the Group it its quest towards green development in Cyberjaya. : Selected as one of the model “Future Cities” by the Japanese Government to share the City’s leading practices in the field of sustainable city development to the world : The FIABCI Malaysia Property Award for Sustainable Developments for BLKE.

The Top 10 Employers at Cyberjaya NAME OF COMPANY


1.Hewlett-Packard Multimedia Sdn Bhd 2.HSBC Electronic Data Processing (Malaysia) Sdn Bhd 3.Shell Business Service Centre Sdn Bhd 4.T-System Malaysia Sdn Bhd 5.Asia-Pacific Information Services (DHL) Sdn Bhd 6.IBM Global Delivery Centre (Malaysia) Sdn Bhd 7.Dell Global Business Center Sdn Bhd 8.RBC Dexia Investor Services (Malaysia) Sdn Bhd 9.Satyam Malaysia Global Solution Sdn Bhd 10.Ericsson Expertise Centre Sdn Bhd


4,200 4,000 2,000 1,500 1,090 1,000 800 648 600 586

Cyberjaya and Setia Haruman get the thumbs up Here are what some top people are saying about Cyberjaya, Setia Haruman Sdn Bhd and the availability of skilled workforce. “Cyberjaya has met our company’s expectations. We have had fantastic support from the developer and also the Multimedia Development Corporation (MDeC). In our business, power and connectivity are of utmost importance. In that aspect, Cyberjaya has been able to provide us the double ring electricity grid that supports our reliability and fiber connectivity for all our facilities in Cyberjaya. Working with Setia Haruman, the master builders of Cyberjaya, has been a pleasant experience. They have been very supportive of our requests.” – Adrian Yong, CEO of CSF Advisers Sdn Bhd

“NTT MSC, the wholly-owned subsidiary of NTT Communications Corporation, Japan, has been liaising with Setia Haruman since the day the company was established in Cyberjaya in 1997. Cooperation between both parties has continued since then in many events related to the development in Cyberjaya. NTT MSC has always received prompt and positive advice and support from the master developer of Cyberjaya, including activities related to the promotion of our data centres to the market. Apart from that, part of our network services are also going through the metro-E services provided by Setia Haruman Technology, the wholly owned subsidiary of Setia Haruman Sdn Bhd.

“In terms of talents matching the skill set that TM is looking for, there is a good match. It has also helped that recently TM has embarked on programmes sponsored by MIGHT (Malaysian Industry Government Group for High Technology) and MDeC, where they do sort of a bridge training. We have taken on-board approximately 10 students where four or five of them were employed directly in the R&D operations while others were absorbed where they see fit. I also laud the universities for working with people who do training programmes like Juniper to help provide graduates with right skill set for the industry.” – Dr Gopi Kurup, CEO of TM Research & Development Sdn Bhd

NTT MSC was set up in Cyberjaya because Malaysia is an excellent place for international companies seeking to establish a base in Asia as the country is strategically located, it is safe from natural disasters, and its political environment is peaceful and stable, enabling companies to function in peace. The multilingual proficiency of its workforce proves conducive as language isn’t a barrier and makes it easy for companies to hire locals as employees.” – Fumitoshi Imaizumi, President/CEO of NTT MSC Sdn Bhd

“Multimedia University (MMU) serves as a catalyst for the development of the high tech ICT industry of the nation, and works closely with the industry in empowering as well as generating the right sort of knowledge workers. The university has grasped and understood the needs of these companies through discussions with international employers via these companies’ career fairs. MMU has imbued within its students soft skills required by these high value companies which include communications, negotiation and leadership skills. We are also continuously improving our programmes so that our students have the ability to exercise their mental faculties. Thirty per cent of our students get job offers even before their final exams and more than 90 per cent of students who graduate from MMU are employed. MMUs’ trace program, a research to track the MMU student’s progress after graduation, has shown that more than 15 per cent are employed by companies in Cyberjaya. MMU is also host to several renowned training labs and academies, such as Juniper, Huawei, Cisco and Microsoft so that the students are trained to be “industry ready” and can cater to the technology needs of high value companies.” – Prof. Dato’ Dr. Muhamad Rasat Muhamad, President of MMU. EU

“As Malaysia continues its efforts to shape itself into a sustainable k n o w l e d g e based economy, Cyberjaya remains one of its crowning achievements and driving forces. Factors such as state-of-theart infrastructue and growing human capital have helped fuel the growth of the local ICT sector, propelling the township to its position as an icon for the country’s lofty goal. Setia Haruman together with others including MDeC work closely to identify specific ICT business needs and MSC Malaysia incentives to further encourage companies to continue to operate from Cyberjaya and prospective investors to move into this cybercity.” – Datuk Mohd. Badlisham Ghazali, CEO MDeC




Clockwise from top: 01 Cyberview Lodge Resort & Spa 02 The Multimedia University (MMU) 03 Cyberjaya Lake Gardens 04 The waterfall pool at Cyberview Lodge Resort & Spa 05 Cyberjaya Lake Gardens 06 Cyberjaya University College of Medical Sciences 07 Cyberjaya at night 08 The bridge at Cyberjaya 09 Sembunyi Spa 10 Shaftbury Square

A LUSH, GREEN, INTELLIGENT CITY Cyberjaya is not only a place to work. It has many other attractions that make it an ideal place to live, study and play.


rom resort like boutique hotels and spa to vast green parks where one can soak in the beauty of nature to elegant residential and commercial areas and schools and universities, Cyberjaya has them all. Cyberjaya, with its well planned township and facilities is fast becoming one of the most sought after places to live in Malaysia.

as the best kept secret of Cyberjaya. A great place to get away from the hectic life in the city, the hotel also has an award winning spa, the Sembunyi Spa. EU


Cyberjaya Lake Gardens Cyberjaya Lake Gardens is a 400 acre green lung of Cyberjaya. It is a place to relax, exercise and take in the wonders of nature. Some of its attractions include the Ginger Collection Garden, Malaysia’s largest collection of ginger species, an observation tower that, offers a bird’s eye view of the lake with its lotus leaves and blooms. The Cyberjaya Lake Gardens is a popular venue for community activities like fishing competitions.




Shaftsbury Square Shaftsbury Square is the place to go for dining in Cyberjaya as it has a wide range of food and beverages outlets. Shaftsbury Square when fully completed will be a fusion of “art, culture, enterprise and comfort living.” It will be a self-contained area where one can live, work and enjoy recreational activities. When fully completed, Shaftsbury Square will comprise of three office tower blocks, two blocks of luxury SOHO/serviced apartments and one hundred and fifty units of retail shop lots.





Cyberview Lodge Resort & Spa This five-star boutique resort is set amidst lush tropical gardens and is often described 14 EUMCCI REVIEW





EUMCCI TRADE ISSUES AND RECOMMENDATIONS 2013 Launch of EUMCCI Trade Issues and Recommendations 2013 Date : Thursday 18 April 2013 Venue: Hotel Istana KL


he EUMCCI Trade Issues and Recommendations 2013 was launched in style at Hotel Istana. The book was launched during EUMCCI’s Trade and Investment Forum 2013. The launch of the book was preceded by a lively and interesting panel discussion focusing on the ASEAN Economic Community – Single market: Challenges and Opportunities. 01

EUMCCI Trade Issues and Recommendations 2013 was launched by H.E Luc Vandebon, Ambassador and Head of Delegation of the EU. He was accompanied by the EUMCCI Chairman, Mr. Fermin Fautsch at the unveiling of the book in front of an audience that included several Heads of Missions, Trade Counsellors and key stakeholders.

to have a key role to play in introducing Malaysia as a gateway to ASEAN for European companies.”


“GTP and ETP are clearly aimed at creating a paradigm shift in the development of the nation. As such, the recommendations in this book will support the continuing drive to make Malaysia more competitive within the region and attractive for FDI,” he added.

“This book is one of the most important policy documents produced by EUMCCI,” said Luc Vandebon during the launch of the book. He congratulated EUMCCI for coming out with this book which he described as timely.

The book was the result of the collaboration between the 14 Committees in the EUMCCI and the Chamber staff. “I trust that the book may serve as a valuable insight and support for investors from both Europe and Malaysia, EUMCCI corporate partners and our stakeholders,” he concluded.

Many of the issues and recommendations presented in the Trade Issues and Recommendations 2013 are related to issues presented before and also lined to the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP). “Many of the issues previously highlighted by EUMCCI in its annual trade recommendations and advocacy activities are now recognised in government strategies,” said Fautsch. “And we hope that in the view of ASEAN Economic Community (AEC) 2015 and also upon finalising the FTA negotiations between EU and Malaysia, EUMCCI will continue 16 EUMCCI REVIEW

01 Mr. Oliver Goetz, Mr. Luis Lopez, Mr. Fermin Fautsch, Ms Hiswani Harun, Mr. Matthieu Roger and H.E. Luc Vandebon. All the speakers at the EUMCCI’s Trade and Investment Forum 2013 were presented a copy of the book Mr. Fermin Fautsch and H.E. Luc Van Vandebon unveil the EUMCCI Trade Issues and Recommendations 2013

02 H.E Luc Vandebon receives the first copy of the book from Mr. Fermin Fautsch

After the book was launched, Fautsch presented Luc Vandebon with the first copy of the book. Fautsch later presented the book to the four speakers of the panel discussion: Mr. Matthieu Roger, Mr. Luis Lopez, Ms. Hiswani Harun and Mr. Oilver Goetz. Ms. Minna Saneri presented the book to two speakers from Iskandar Regional Development Authority, Ms. GanLow Mei Leong and Dr. Christopher Shun Kong Leng. EU EUMCCI REVIEW 17



ne of EUMCCI’s missions is to facilitate business and investment relations and opportunities between the EU and Malaysia. It is in that spirit that EUMCCI Trade Issues and Recommendations 2013 has been published. Mr. Fermin Fautsch, the Chairman of EUMCCI says in the introduction, “The Trade Issues and Recommendations 2013 focuses on the current status of EU business in Malaysia and presents a compilation of industry specific issues and recommendations, composed by our sectoral committees, to further improve the business environment from a corporate standpoint.” The book provides an overview of the EU Trade with Malaysia and includes the viewpoint of European and Malaysian businesses. Most importantly, it offers key recommendation that encompasses all major points of the Malaysian trade economy. “It is noted that while in certain areas there has been marked progress, for many issues there has been more limited advancement,” says Fautsch. Over the years the EUMCCI Committees within EUMCCI have become strong lobbying tools. At present there are 14 Committees covering various sectors. They are Aerospace, Automative, Corporate Social Responsibility (GSR), Defence and Security, Education, Environment, Energy and Green Technology, Green Building, Healthcare, Human Resources, Intellectual Property Rights, Logistics and Transportation, Oil & Gas, Smart Technologies (Smart Grid) Committee and Wines and Spirits. The Committees are very active. They meet regularly to discuss issues affecting their industries and engage proactively with the Government, academia and the business sectors via seminars, and workshops to lobby with the Government. This book is a compilation of all the Trade Issue and Recommendations papers written by each Committee that outlines the most pressing problems. Most importantly the papers also contain recommendations to the Government on how to reduce these issues. The book is systematically divided into



chapters, making it an easy reference point for readers who are looking for a specific topic. This is a very text heavy book but the clean layout is pleasant on the eyes and makes reading easy. The Appendix is filled with many interesting tables that range from The Global Competitiveness Index 2012-2013 (Malaysia is ranked 25, a drop of four places from 20112012) to the2012 Malaysia-EU trade figures by member states. A positive point about this book is that it is refreshingly forthright in its recommendations; offering praise where it is due and constructive criticism where things can be improved. For example, under the chapter Key Measures under the section on Action on crime, safety and security, the book states, “Despite the published statistics which show falling crime levels, there is a wide perception that there has been a significant increase in crimes throughout the country, whether in urban or rural areas…The persistence of this problem, which has been raised repeatedly by EUMCCI and our members, illustrates points that need to be strengthened in the policing system in Malaysia.” Where there is an improvement and cooperation for the promise of a better future, the book acknowledges this as well: “We have been pleased to see that the Royal Police Force of Malaysia (PDRM) has taken the

Some call it talent management. Let’s call it partnership. effort to engage with us on issues and we look forward to positive working relationship.”

Without the right talent, there will be no transformation. Without transformation, we will not realise our potential as a nation nor achieve Vision 2020. This is why we aspire to make Malaysia a global talent destination by 2020.

It is stated in the book that this document is “circulated among Government administrations, relevant authorities in Malaysia and the European Commission in Brussels.” The general reader too will find the book useful as it is filled with interesting observations made by the Committees on various trade sectors in the country. EU

We make it our mission to build effective partnerships and make a difference in addressing your talent needs as well as Malaysia’s in order to enable the country to reach its aspiration of a high-income nation. TalentCorp is pleased to offer top expatriates flexible long term working and living options in the country. We also look forward to facilitate highly-skilled young foreign talent to work in Malaysia.

For editorial enquiries, or to order a copy of this publication, please call (+60) 03 2162 6298 0r email

The Top 10 EU Trading Partners for Malaysia Country Total Trade Share 30.72% Germany, Federal Republic of 18.48% Netherlands France 14.48 % United Kingdom 10.68% Italy 6.47% Belgium 3.87% Sweden 2.66% Spain 2.24% Austria 1.32% Finland 1.30%

The right talent makes all the difference. We would like to work together with you, as leading employers, to enhance talent availability for your organisation, your sector and the country. To learn more about our foreign talent facilitation initiatives, please visit

Note: Table modified from Table A9: Malaysia-EU Trade Figures by Member State Year 2012 from EUMCCI Trade Issues and Recommendations 2013.



AEC 2015: CHALLENGES AND OPPORTUNITIES The challenges and opportunities for Malaysia when the ASEAN Economic Community (AEC) 2015 becomes a reality were the focus of the fourth EU-Malaysia Trade & Investment Forum 2013.

ASEAN Economic Community 2015: Single Market – Challenges and Opportunities EU-Malaysia Trade & Investment Forum 2013 Date: Thursday 18 April 2013 Venue: Hotel Istana, Kuala Lumpur Organised by: EUMCCI Partners: Siemens, Qatar Airways, Talent Corp Malaysia (EUMCCI Corporate Platinum Partners) and British High Commission Kuala Lumpur


ne of the major events of EUMCCI for the year is the EU-Malaysia Trade and Investment Forum 2013. This year’s event focused on the ASEAN Economic Community (AEC) which is to be implemented in 2015 and the challenges and opportunities that this single market presents for Malaysia and for EU countries in general. The highlight of the event was the panel discussion which featured presenters who were from the transport and service sectors. The presenters were Mr. Matthieu Roger, Head of Trade and Marketing, MYC Cluster Maersk Line; Ms Hiswani Harun, Senior Director Services Sector Development. MITI (Ministry of International Trade and Industry); Mr. Luis Lopez, Spanish Commercial Counsellor and Mr. Oliver Goetz, Head of Transport and Infrastructure – Asia, Rothschild. The special guest of honour for the event was H.E Luc Vandebon, Ambassador, Head of EU Delegationto Malaysia. In his welcome address, the EUMCCI Chairman, Mr. Fermin Fautsch recalled an economic summit that he attended in Vietnam. “One of the key takeaways from the summit in Vietnam was the strong commitment from governments of different ASEAN countries in seeing the AEC becoming a reality,” he said. “Making Malaysia and ASEAN a single


market will present challenges, especially in view of the free movement of skilled labour, but also opportunities for the free movement of capital and goods and services.” He also explained why today’s panel discussion was focused on two issues: infrastructure and connectivity and services. “When AEC comes into effect, one of the key problems faced by ASEAN will be infrastructure and connectivity. Services will also be a key sector for ASEAN. As far as services are concerned, Malaysia is not a major trading partner as yet, but opportunities are increasing due to its liberalization policies,” said Fautsch. H.E Luc Vandebon touched on the importance of trade and investment for growth of countries in his keynote address. “Some people point their fingers at globalization and free trade as the reasons why the economy of some countries are in trouble. This is absolutely not true! Now more than ever, there is a need to keep our markets open to allow the free movement of goods. At the same time there must also be transparency and accountability.” Transport services, logistics and infrastructure Three of the four panelists’ presentation touched on these subjects. Matthieu Roger focused on the shipping industry. “Shipping

industry is the lifeline of the global economy because 90 per cent of goods are carried by ships,” explained Roger. “The Maersk Group operates more than 500 container vessels.” He is confident that the shipping industry will flourish with the advent of AEC. “Container business represents a large share of sea transportation and will benefit from the increase in trade especially intra ASEAN trade. Malaysia is well positioned as a regional hub with its seaports holding a substantial market share of transshipment traffic for ASEAN. Malaysia’s close proximity to manufacturing and consumption locations is also a feature that contributes to making Malaysia a regional hub.” He also outlined some of the challenges that Malaysia faces when AEC becomes a reality. One of it is integrating the connectivity of the various modes of transportation such as ports, road and rail. In some cases, there is no seamless connection between the three. Opportunities and challenges “There will be a lot of collaboration and competition among ASEAN countries in logistics, transport services, equipments and infrastructure with the coming of AEC in 2015,” said Luis Lopez. “An efficient transport system is essential for competitiveness. The Government and the private sector both have a role to play in the development of this sector,” he said. The Government’s role is to be a regulator and foster efficiency while the private sector provides services, equipment and infrastructure. His advice to ASEAN countries is to invest smart, maintain the services of roads, rails, airports and ports very well, open the competition by allowing more players to come in to provide transportation services. Right now in many ASEAN countries, the transport services are monopolized by certain companies. “Having an open and transparent system encourages more FDI, talent and entrepreneurship,” he said.





01 Mr Fermin Fautsch 02 Ms Hiswani Harun 03 H.E. Luc Vandebon 04 Mr Matthieu Roger


Iskandar Malaysia: Poised for ASEAN During lunch, two speakers from IRDA (Iskandar Regional Development Authority) kept the audience engrossed with their presentation on Iskandar Malaysia. The first speaker, Ms GanLow Mei Leong, Senior Vice President, Economic Intelligence, gave an overview of Iskandar Malaysia and outlined the nine economic sectors that are being developed: the financial services, tourism, education, logistics, healthcare, creative industry, manufacturing, food and agro production. These sectors offer plenty of opportunity for European countries to invest in Iskandar Malaysia, she said. Dr. Christopher Shun Kong Leng, Senior Vice President, Economic Intelligence touched on logistics and transport in Iskandar Malaysia. The area is home to two major ports, one airport and is accessible via major highways. Exciting plans are afoot to extend the MRT line from Singapore to Iskandar. There have also been talks about building a high speed railway from Singapore to Kuala Lumpur.

opportunity to enter areas where the European expertise will be needed in the infrastructure boom as in engineering, construction, safety and maintenance of roads, rolling stock assembly and maintenance systems for rails etc. Oliver Goetz also reiterated the point that transport and infrastructure is still lagging in some ASEAN countries. He believes more investments will be made in these areas by the respective Governments. Liberalisation of the Malaysian services sector As far as the services sector is concerned, Malaysia is not a major trading partner as yet. But this is slowly changing due to the Government’s liberalization policy, said Hiswani Harun. ‘The services sector is very important for the country. Presently its GDP contribution in 2012 was 54.6 per cent. Investment in the service sector has also increased from RM36.7 billion in 2010 to RM117.55 billion in 2012,” she informed. Since 2009, the Malaysian Government has taken concrete steps to liberalise its service sector. The first unilateral liberalization was

announced on 22nd April 2009 when 27 services sub-sectors were liberalised. Further 17 services subsectors were liberalised in an announcement on 7th October 2012.

Audience feedback The EUMCCI Review spoke to some of the people who attended the Trade and Investment Forum to get their views.

“On 28th April 2009 the Prime Minister also announced liberalisation of the financial sector by allowing up to five top international law firms with expertise in international Islamic finance to practice in Malaysia. These firms will only be allowed to offer legal services in international Islamic finance,” explained Hiswani.


The liberalization of the services sector has brought along with it issues and challenges. Some ministries and agencies are not prepared to make higher commitments to see these liberalisation process through. Sometimes the problems lie with the stakeholders themselves. “Most stakeholders in the services sectors 08 05 Ms Agnes Yeow-Fournier, Mr Watson Chong, Mr Klaus Landhaeusser, Mr Patrik Jonasson. 06 Mr Luis Lopez, Mr Jan Vejmelka and Mr Miguel Ballasteros Lopez

When AEC becomes a reality, countries in the region will spend more to beef up their infrastructure to facilitate the movement of goods and people. European countries should take this 22 EUMCCI REVIEW




are not fully aware of the impact of services liberalization,” she revealed.


“It was very informative especially the liberalization of the Malaysian services sector. The presentation by the people from Iskandar Malaysia was really interesting.” – Jan Vejmelka, Economic Secretary, Embassy of the Czech Republic. “It was a very well organised event. The speakers were very open and no one was trying to sugar coat the facts. I appreciated the straightforwardness of the speakers.” – Klaus Landhaeusser, Regional Head, Bosch.

Dr. Shun pointed out that if the railway projects take off, Europe would have a golden opportunity for investment in Iskandar Malaysia as Europe is very well versed in high speed rail linkages between different countries in the European continent.

When it comes to Malaysia, the country’s Achilles heel in transportation is the railway network. “There is a need to upgrade the existing railway system. A good railway system is an important factor in developing industries and improving the quality of life of its people. Right now the average Malaysian is spending too much time on the road commuting to work,” said Lopez. And efficient railway system would mean less traffic on the road, which in turn would mean less pollution.

“I found the presentation of the liberalization of the services sector in Malaysia most interesting. I appreciated the update as it’s important for us to know what is happening in this sector. Overall, all the topics presented was interesting. And lunch was great!” – Miguel Ballesteros Lopez, Attache Trade and Economic Relations, European Union Delegation to Malaysia.

Another challenge to liberalization is domestic regulations. “Acts and Regulations governing business and professional services require review,” she said. Other issues and challenges are transparency of rules and regulations and lack of human capital for knowledge intensive sectors.

07 Mr Oliver Goetz 08 Mr Luis Lopez 09 Ms Gan-Low Mei Leong 10 Dr. Christopher Shun Kong Leng The Government has set up MSDC (Malaysia Services Development Council) to look into these problems. MSDC monitors and coordinates the work of ministries implementing the liberalization programme. EU

“I felt most of the presentation was too broad and not focused on the topic – that of ASEAN as a single market.” – Patrik Jonasson, Director, Public Policy International, Asia Pacific, GS1. “I am from the aviation industry and I was hoping to hear what are the implications for the aviation industry under AEC. Unfortunately, there was hardly anything much about aviation. I would like to add that EUMCCI’s events are always done so professionally. I always look forward to EUMCCI events.” – Agnes Yeow-Fournier, Managing Director, Essor Aerospace. “EUMCCI functions are always a great place for networking. One of the reasons why companies like to be associated with EUMCCI is because it is an effective lobby group.” – Watson Chang, President AAAP


Sweden’s contribution to the world: Despite its small population, Sweden has contributed a lot to make the world a better place. Here is a list of famous Swedish inventions and people:



Inventions: • Tetra Pak (an invention for storing, packaging and distributing liquid such as milk, fruit juice etc), zipper, safety matches, dynamite, turbo engines for cars, pacemaker, celsius thermometer, computer mouse and many more especially in the field of engineering.


Music • Sweden is the third largest exporter of pop music in the world after United States and United Kingdom. Some of famous musical acts are ABBA, Roxette, Ace of Bace, Robyn and The Hives to name a few.

hink of Sweden and most Malaysians (and the rest of the world) will think of ABBA, Volvo, The Nobel prize, IKEA and Ericsson, to name a few. Sweden is one of the most developed countries in the world; it is also one of the most innovative countries which records the highest R &D spending in Europe and one of the best countries to live in. An international social scientist once said that being born in Sweden during the 20th century is like hitting the lottery jackpot! The Economist, the influential English language weekly placed Sweden first among the best governed countries in the world. Despite the economic problems that have plagued some European countries lately, Sweden has come out of it relatively unscathed, says Sweden’s ambassador to Malaysia, H.E. Bengt G Carlsson. “Sweden is doing reasonably well when compared to other countries in Europe. Unemployment figures are low by EU standards and our economy has been growing.” Sweden had learned from the mistakes of the past. Twenty years ago, its economy faced serious trouble. The Government acted swiftly to implement reforms in the financial sector and took steps to strengthen the country’s fiscal balance. Sweden is famous for its neutrality and nonalignment. It was one of the very few countries in Europe that was spared the horrors of World War I and World War II. This was not always the case. For many years, – going back as far as 1,000 years – Sweden had a reputation of being a fierce warring race. Europe was terrified of the Viking raids almost a thousand years ago. In the 17th century, Sweden was one of the great powers of Europe. The years of warfare had a devastating effect on the country. By the early 19th century, the country was so impoverished that its people


Cinema • Some of Hollywood’s legendary stars are actually Swedes. Ingrid Bergman, Greta Garbo, Max von Sydow and Ann Margaret are all from Sweden. Ingmar Bergman, a world famous director famous for his movies such as Wild Strawberries, Autumn Sonata, The Virgin Spring and considered by many to be one of the most influential directors of all time.

His Excellency Bengt G Carlsson, Sweden’s Ambassador to Malaysia

realised that they only way they could survive was by embracing peace. Since 1810, it has done that with great success. Its hardworking and industrious people focused their energy on building their country. Within one hundred years the Swedes transformed their country from a backward agrarian country to one of the world’s most advanced and sophisticated industrialised nation and welfare state that has won the admiration of the world. Sweden joined the European Union on 1 January 1995. Malaysia-Sweden trade Much can be done to increase trade between the two countries, says Carlsson. “Malaysia is Sweden’s third biggest trading partner in ASEAN behind Singapore and Indonesia.” Sweden’s exports to Malaysia are machinery, telecommunications, automobiles and trucks and paper and pulp. Malaysia’s imports to Sweden are raw materials such as palm oil and electronic goods, reveals Carlsson. Sweden has a very vibrant SME sector. “The big Swedish companies like IKEA, Ericsson,

Electrolux etc. are already here. We are very interested in helping our SMEs to do business here. The facilities here are top notch and it costs less to manufacture things here or to establish a regional presence,” he says. Tourism and education Carlsson sees a lot of potential for SwedenMalaysia cooperation in these two sectors. “Every year about 400,000 Swedes visit Thailand but only a fraction, about 50,000 visit Malaysia. Much more can be done to attract more Swedish visitors to come to Malaysia,” he says. Since more Swedes are looking to retire overseas, Malaysia’s Malaysia My Second Home programme will be very attractive to Swedes, says Carlsson. The promotion for this programme overseas has piqued the interest of many Swedes to look into making Malaysia as their choice destination for retirement. Carlsson also wants to increase the number of Malaysians who visit Sweden. “Sweden has a lot to offer for the visitor. It’s a very beautiful country with stunning landscapes

Sweden at a glance: Official name Total Area Capital Population Language Form of Government Parliament

: Kingdom of Sweden : 174,000 sq miles (450,000 km²). It is the third largest country in Western Europe : Stockholm : 9.6 million : Swedish; recognised minority languages: Sami (Lapp), Finnish, Meänkieli (Tornedalen Finnish), Yiddish, Romani Chib : Constitutional monarchy, parliamentary democracy : The Riksdag. It has 349 members in one chamber

with a climate that is very different. I am sure Malaysians want to experience what it is like to travel to a cooler climate and experience such things as skiing and skating. Even in the summer, our temperature is much lower than what you have in Malaysia,” explains Carlsson. He continues, “The people are very friendly and almost everyone speaks English. Stockholm is a very beautiful city. Our infrastructure is very good and it is easy to move around anywhere in the country. Sweden is also an exciting cultural hub: its fashion, music and cuisine are loved the world over.” Education is another area that has a lot of potential, he says. There are many Swedish

students who study in Singapore but not many in Malaysia, he reveals. The Malaysian education sector has a good potential to attract Swedes to study here. Malaysians should also look to Sweden as an education destination. “We have some of the top world class universities and good technical schools. We have a track record of producing good engineers. More universities are offering courses in English and this has attracted Asian students to come here.” Carlsson is very optimistic about the future of the Sweden-Malaysia relationship, especially with regards to trade. “I think we can do a lot more to make Malaysia better known in Sweden and vice versa,” he says. EU

Literature • August Strindberg, a 19th century playwright won worldwide fame with his realistic plays; in the 20th century, the children’s author and creator of Pippi Longstocking, Astrid Lindgren, became the first Swedish author to achieve international acclaim. Pippi Longstocking is especially popular in Europe. In recent times, most international audiences have become very familiar with Stieg Larsson, whose Millenium series of crime novels -- The Girl With A Dragon Tatoo, The Girl Who Played With Fire, The Girl Who Kicked The Hornet’s Nest – became world wide bestsellers and put Sweden on the map of popular literature. Awards • The most prestigious award in the world, The Nobel Prize, was established by philanthropist Alfred Nobel, the Swedish inventor of dynamite. It is the most prestigious award in the fields of literature, medicine, physics, chemistry, peace and economics.




MINIMUM RETIREMENT AGE AND MINIMUM WAGES ORDER The Breakfast Talk presentation touched on the changes brought on by these new acts and its effects on employers.

Updates on Retirement Age and Minimum Wage Act Breakfast Talk Date: Wednesday 24th April 2013 Venue: Conference Room, EUMCCI Organised by: EUMCCI

“This act comes into force on 1st July 2013,” explained Ravindra. For many decades, the retirement age in Malaysia was 55 but now thanks to this new Act, the minimum age of retirement of employees shall be upon attaining the age of 60 years, he explained. Once this act comes into force, any employer who forces an employee to retire before the employee attains the minimum retirement age is seen as committing an offence. If convicted, the employer is liable to be fined not exceeding RM10,000. Ravindra pointed out that if an employee’s contract of employment or collective agreement stipulates that the retirement age is less than the minimum retirement age (for example, 55 years), once this Act comes into 26 EUMCCI REVIEW

Employers who would like to defer the Order may make applications to the National Wages Consultative Council not less than 90 days before the applicable commencement date. “If application for deferment is not allowed, the employer is required to implement the minimum wages. The employer may apply to the Council for reconsideration if he can show that he is unable to sustain his business with the implementation of the minimum wages,” said Ravindra. One of the participants wanted to know whether interns and temporary staff too were eligible for minimum wages. This Order does not apply to interns and apprentices, informed Ravindra. “Interns and apprentices do not

have an employer and employee relationship and therefore they cannot be viewed as an employee of the company.” Ravindra acknowledged that the Minimum Wages Order may cause hardship for some industries especially those producing goods where the contracts have already been signed and the price fixed before this Order came into effect. Despite some of the problems that will be encountered by industries, Ravindra remains positive about the Order. “Having minimum wage is essential. There are bound to be some teething problems due to the changes that are being brought about by this Order. But I believe these problems can be sorted out in the long run. The industry needs to look at it in a different light.” EU

Minimum Wages Order 2012


Minimum Retirement Age Act

Another question raised by participants was whether the private sector was happy with this Act. Ravindra revealed that some industries were not happy. “It is easy to hire workers in Malaysia but difficult to fire them,” said Ravindra. “This makes it difficult for employers to deal with workers with poor performance. They can’t be just fired.” In dealing with poor performers, Ravindra stressed the importance of leaving behind a proper paper trail. “Do not reward poor performers with discretionary salary increment – this is different from the contractual increment of say five per cent every year – and performance based bonus. And make sure that his poor performance is recorded in the performance appraisal. Be mindful of how you reward your people.”

Application for deferment

This history making Order has two dates of commencement. The first is on 1st January 2013 and is applicable for an employer who employs more than five employees or an employer who carries out a professional activity classified under Malaysian Standard Classification of Occupations (MASCO), regardless the number of employees.

he year 2013 marks a new beginning for Malaysian employers and employees as it sees two important acts for employees – the Minimum Retirement Age Act 2012 and the Minimum Wages Order, 2012 – come into effect. Mr. R. Ravindra Kumar, Advocate and Solicitor of Raja, Darryl & Loh, gave a presentation on the two Acts and the effects it would have on employers and employees to participants who attended the talk.

or 58, he will or can resign. An an employer, you cannot force an employee to work until sixty,” informed Ravindra.

force, that retirement age shall be deemed to be void and it will be substituted with the new minimum age (60 years) under the Act. This Act does not apply to: (a) Persons who have retired at the age of 55 years and above before the date of coming into force of the Act and is subsequently re-employed after his retirement; (b) Civil servants; (c) Probationers; (d) Apprentices employed under an apprenticeship contract; (e) Noncitizen employees; (f) Domestic servants; (g) A person whose employment is with average hours of work not exceeding 70% of the normal working hours of a full-time employee; (h) Students employed under any contract for a temporary term of employment; and (i) Persons employed under fixed term contracts for not more than 24 months

Mr. Ravindra Kumar Effect on employers There were quite a number of questions from the attendees with regards to the Minimum Retirement Age Act. Most wanted to know whether the company’s handbook had to be updated. Ravindra advised employers whose employees’ contract stipulated the retirement age at 55 to issue a memo to staff telling them that effective 1st July 2013, the retirement age is now at 60 years. “Yes, it’s important to update the company handbook but more importantly issue the memo to all staff and get them to acknowledge it,” he said. “Even if you do not issue the memo, the Act kicks in automatically.” What can an employer do if an employee did not want to work until 60 and wanted to retire earlier after the new Act comes into force? “If there is an optional retirement clause in the employee’s contract, he can opt for it. If someone decides that he wants to retire at 56

The second commencement of the Order is on 1st July 2013 for an employer who employs five employees or less other than an employer who carries out a professional activity classified under MASCO. Ravindra emphasised that this Order does not apply to domestic servants but this Order applies to the employment of foreign employees. Minimum wage rates The minimum wage rates differ for Peninsular Malaysia and East Malaysia which consists of Sabah, Sarawak and the Federal Territory of Labuan. In Peninsular Malaysia, the minimum wage is set at RM900 monthly and the daily wages at RM4.33. In East Malaysia it is at RM800 and RM3.85 respectively. The minimum wage for probationers may be reduced not more than 30 per cent of the minimum wage rate only for the first six months of the probation contract, disclosed Ravindra. “Thereafter, the probationer shall be paid minimum wages of RM900 per month as stated in the Order,” he added.

Participants who attended the Breakfast Talk




Measures taken To help the banks, a number of measures have been put in place, top among them closer supervision of national banks by the ECB (European Central Bank). The ECB announced several measures such as easing of collateral requirements and reducing reserve requirements. Other measures introduced were direct recapitalisation of euro area banks and the use of the EFSF (European Financial Stability Facility) /ESM (European Stability Mechanisms) in a flexible way to stabilise markets.


Despite all the negative reports coming out of Europe, the European Union is still strong and once this crisis is over, it will be stronger, says Dr.Peter Bekx. The European Sovereign Debt Crisis and The Future of the Euro A presentation by Dr. Peter Bekx Date: Friday, 1st March 2013 Venue: The Synergy, Westin, Kuala Lumpur Organised by: EUMCCI, Delegation of the European Union to Malaysia and ASLI (Asian Strategy and Leadership Institute).


he summer of 2012 is one which Europe would like to forget. Unemployment was a record high in countries like Spain and Greece; many EU economies were in trouble and there were ominous voices predicting that some countries would leave the EU. In the midst of all this, came the welcome announcement that the Nobel Peace Prize 2012 was awarded to the European Union for its role over six decades “to the advancement of peace and reconciliation, democracy and human rights in Europe”. This award highlighted the important role played by EU in ensuring a prosperous, peaceful and harmonious Europe. The Norwegian Nobel Committee in a press release reiterated its belief in the relevance of the EU. “The EU is currently undergoing grave economic difficulties and considerable social unrest,” it said. “The Norwegian Nobel Committee wishes to focus on what it sees as the EU's most important result: the successful struggle for peace and reconciliation and for


democracy and human rights. The stabilizing part played by the EU has helped to transform most of Europe from a continent of war to a continent of peace.” Dr. Peter Bekx, Director of International Economic and Financial Relations and Global Governance in the European Commission Directorate General for Economic and Financial Affairs had a similar message about the EU on his whirlwind tour of the Asian region. His message has been consistent: Yes, the EU has some problems but concrete steps have been taken to address these problems and some of the positive effects are being felt. He also reiterated the fact that the current crisis will not lead to the break-up of EU or countries leaving the Eurozone. He was optimistic that Europe will come out stronger and better at the end of this crisis. In March, Dr. Bekx made a brief visit to Malaysia, as part of his visit to this region. One of the highlights of Dr. Bekx’s visit was his presentation at a public event at The Westin. The presentation titled The European Sovereign Debt Crisis and the Future of the Euro was well attended by almost 180 people from the banking and finance industry, business community, universities, think-tanks and government agencies. During the presentation Dr. Bekx touched on the reasons that caused the crisis and measures taken to address them. He highlighted the strategies the EU has put in place to guide the recovery of the European economy. He also touched on why what’s happening in Europe matters to Malaysia. Dr. Bekx is one of the most renowned economists in the European Commission. He graduated in Economics from the Free

Dr. Peter Bekx University of Brussels (VUB), where he also obtained a MSc in Statistics and Econometrics and a doctorate in Economics. He was Professor of Economics at the Free University of Brussels for six years. In 1985, he joined the European Commission, where he held a number of posts in the Directorate General for Economic and Financial Affairs, including a four-year period as the Head of the Economic and Financial section of the Commission’s Delegation in Washington DC. From 2002 to 2006, Dr. Bekx was the deputy head of cabinet of the European Commissioner for Economic and Monetary Affairs. He has also published extensively on various topics related to monetary integration, exchange rate regimes, and econometric modelling. The event started off with a welcoming speech by H.E. Luc Vandebon, Ambassador and Head of Delegation of the EU. EUMCCI Chairman, Mr. Fermin Fautsch served as the moderator for the event.

For dealing with the problem of sovereign debt, an important development was the establishment of ESM in September 2012. ESM acts as a firewall for the eurozone “to safeguard and provide instant access to financial assistance programmes for member states of the Eurozone in financial difficulties with a maximum lending capacity of 500 billion euro.” ESM started operations on 8th October 2012.

improved governance, differentiated fiscal consolidation and quality of public finances and structural reforms. Effect on Malaysia So what do EU’s economic woes mean to Malaysia? According to HE Luc Vandebon, Malaysia’s bilateral trade with Europe will suffer in the short term while Europe’s growth remained sluggish. He revealed this at the press conference held shortly after Dr. Bekx’s presentation. “But in the medium to longer term, Europe’s bilateral trade with Malaysia was expected to grow strongly,” he added. In 2011, EU exports to Malaysia totalled almost 15 billion euros while Malaysian exports to the EU reached almost 18 billion euros. Malaysia’s annual trade surplus with the EU since 2006 has been an average of 5 billion euros. Final word

Measures were also put in place to deal with “vulnerable countries” such as Greece, Ireland, Portugal, Italy and Spain. Talking about Greece, Dr. Bekx stressed that with all the bad news coming out the country, people tend to forget the progress it has made. “Greece has achieved much more than is often recognised in terms of fiscal consolidation and structural reforms,” he said.

“I think, currently, it is safe to say that the worst is over for Europe. But that doesn't mean that we can be complacent or say nothing (bad) is ever going to happen again,” said Dr. Bekx to reporters at a press conference after his presentation. The summer of 2012 was a pivotal time in the EU economic crisis said Dr. Bekx. “The economy had reached the bottom or depth,” he said. The reforms that had been put in place were slowly beginning to take effect. “It’s not perfect yet but we are getting there,” he added.

For stimulating economic growth, some of the measures put in place include

There is now evidence that the EU economy has started moving in the right direction as

proven by key leading indicators such as the consumer confidence index, consumer spending and purchasing managers’ index. Progress is slow but sure. Dr. Bekx said that the European Commission had forecast that the EU economy would come to a stall in 2013, with a growth rate estimated at only 0.1 per cent. The good news is that the economy is expected to recover and register a growth of 1.6 per cent in 2014. For the eurozone (the 17 nations in the region that share a single currency), a contraction of 0.3 per cent was expected for 2013, before its economy is expected to register a growth of 1.4 per cent next year. Dr. Bekx sees a positive outcome from this crisis. The crisis will bring the European countries closer to genuine Economic and Monetary Union (EMU) with “complete banking union.” In an interview with BFM Radio, Dr. Bekx said that eventually all the national banks of different nations will come under the supervision of the ECB, “an institution which is deeply trusted by financial markets.” He further reiterated that, “We are confident [ECB] will execute the banking supervision in an appropriate way.” “The euro is here to stay, no matter what it takes,” concluded Dr. Bekx. A stronger EU economy is a win-win situation for the rest of the world as well as this would mean trade between the EU and the other countries (including Malaysia) can flourish. EU

Tracing the root of the problem The current crisis in several European countries can be traced back to the financial and credit crisis from the United States. Dr. Bekx referred to it as the “US contagion.” This had a severe effect on the three pillars that hold up economies: the banks in some European countries, which in turn slowed down the economic growth in these countries and increased the anxiety towards sovereign or governmental debt. The European Commission was faced with having to deal with not one but three issues simultaneously. Dr. Bekx said that the organisation has risen to the challenge by implementing reforms that break “the negative feedback loop” between the banks, economic growth and sovereign debt.

The audience listening raptly to Dr. Bekx



EUMCCI Review Gets a New Look

Sustainable Business Networking session

From left: Pn Zaiton Hj Idrus, Consultant Newsmonger PR Consultancy, Ms Minna Saneri, General Manager, EUMCCI, Mr V S Ganesan, General Manager, MPH Group Magazine, Mr Fermin Fautsch, Chairman, EUMCCI, Ms Stefanie Braukmann, General Manager, Strategic Public Relations Sdn Bhd, Ms Sharmila Valli Narayanan, Editor, MPH Group Magazine


our Committees of EUMCCI got together to organise the Sustainability Business Networking Session on 14th March 2013 at Hotel Istana. The four EUMCCI Committees were the Green Building Committee, Smart Technologies (Smart Grid) Committee, Logistics and Transportation Committee and Environment, Energy and Green Technology Committee. These EUMCCI Committees represent the key sectors in the EU-Malaysia trade and investment. The networking session was a huge hit as it brought together key Government agencies, stakeholders including policy makers covering specific areas from Urban Public Transport NKRA, Smart Technology & Green Building, Oil & Gas NKEA, NKEA Communications, Content and Infrastructure, renewable energy and energy efficiency and other green environment areas. It was a relaxed and informal session where participants mingled freely to discuss, make new contacts, exchange cards and help themselves to the delicious afternoon tea


spread. The event was especially beneficial for the various environmentally committed businesses that had a chance to meet and link up with other green businesses. It was also a good opportunity for businesses to find out about the latest sustainability news and opportunities, best practice case studies and grants and funding and award schemes. Mr. Bjarne Foldager, Head of Logistics and Transportation Committee, said that the event was an excellent opportunity for the various committees, especially the green committees in EUMCCI to network with various Malaysians partners. “It is a great idea to have an event where the stakeholders and various companies are thrown in together, “ said Mr. Norizal Khushairi Mohamad Zamri, Senior Manager NKEA, PEMANDU. “Some of the stakeholders might know one or two of the green companies but at an event like this, they get a chance to meet so many other players. Most of the companies have sent their top people here. That shows how important this

event is. I must commend EUMCCI on this great idea of having the various Committees and the companies all under one roof.” Professor Cameron Richards of UTM was impressed with the event as well. His specialty is in the development of sustainable policy-building research and strategies. “This is an event which is close to my heart,” he said. “The concept of this event is in line with what UTM believes, which is that Government agencies, businesses and the academic world must and should work and collaborate much more effectively in creating a green and sustainable environment. I would be very interested in linking up with companies especially those that are involved in urban planning, design and architecture and transportation.” Mr. William Tan summed it up the best. “This has been a very good event. I made a lot of good business contacts,” he said. “EUMCCI should have more such events. EUMCCI works very hard to make things happen.” EU

n conjunction with EUMCCI’s 10th anniversary, we decided to revamp our quarterly magazine, the EUMCCI Review. The new look EUMCCI Review was launched during the EU-Malaysia Trade and Investment Forum 2013 on 18th April 2013 at Hotel Istana.

Review is being produced in collaboration with MPH Group Magazine, one of the largest publishing houses in the country. The magazine offers viewpoints from the business community and from our member companies; interviews with key Malaysian and European personalities and other business information.

The magazine now features a modified typography and a clean layout that makes reading the magazine easier on the eye. EUMCCI

The first revamped issue featured interviews with H.E Luc Vandebon (who was also on the cover), the current and past Chairman

of EUMCCI, Mr. Fermin Fautsch and Mr. David Jones. The magazine also pays tribute to EUMCCI’s 10th anniversary by looking back at the people and events at EUMCCI over the last decade. During the launch, H.E. Luc Vandebon complimented the magazine for making him look so good on the cover. The EUMCCI Review will also be available in all the leading bookshops. EU

EUMCCI Defence & Security Committee at LIMA 2013


UMCCI’s presence was felt at the LIMA 2013 thanks to its Defence & Security Committee which represented European companies of the sector. The event held from 26th March until 30th March at Langkawi Island was a huge success. Over the years LIMA has become a highly recognised international trade show.

LIMA 2013 was no exception with 24 signed contracts totaling RM4.271 billion, according to organizers. At the end of the exhibition, the representatives from the Defence & Security Committee received a Certificate of Appreciation from Malaysia’s Minister of Defence, Dato’ Seri Ahmad Zahid Hamidi. EU 02

01 01 The Certificate of Appreciation 01

02 The EUMCCI Defence & Security Committee booth at LIMA 2013



Green Financing

Breakfast Talk: Doing Business in Lao PDR


he Lao People’s Democratic Republic (PDR) is open for business. That’s the message that Mr. Paul Simcock gave guests who attended the breakfast talk organised by EUMCCI on 10th May 2013 at the Conference Room EUMCCI.

Mr. Nigel Boud, Datuk Loo Took Gee and Mr. Mohd Rosli Hj Abdullah


UMCCI held an international workshop titled The Real Effects of Venture Capital and Angel Investing Across the Business Cycle. The workshop was organised by the EUMCCI Green Financing Task Force together with the Ministry of Energy, Green Technolgy & Water (KeTTHA) and Malaysian Green Technology Corporation (MGTC).

The workshop held on 7th March 2013 at The View, Royale Chulan, KL intended to provide Malaysians the latest knowledge in the world of finance. Among the issues discussed at the workshop were on the current developments

in venture capital financing, capital commitment in private equity partnerships and start-up funding. There was also a segment were audiences had a chance to hear first-hand the success stories from Malaysian entrepreneurs who have made it in the world of business.

Finally the event also aimed to streamline initiatives and foster closer collaborations amongst stakeholders in Malaysia and around the region by providing a high-level discussion and networking platform.

The event had a few objectives, among them to increase the awareness and knowledge about the key aspects to successfully get venture funding in Malaysia. It also aimed to inform the audiences on how to tap on the resources provided by EU-ASEAN partners in Malaysia, Hong Kong and around the region.

Some of the VIPs who attended the event included Mr. Nigel Boud, Political & Economic Counsellor, British High Commission KL, Datuk Loo Took Gee, Secretary General, Ministry of Energy, Green Technology and Water and her deputy, Mr. Mohd Rosli Hj Abdullah. EU

Smart Technologies Smart Grid (St-Sg) Committee Dialogue With TNB Steering Committee The TNB Smart Grid Steering Committee was created to drive implementation of the Smart Grid Systems and to coordinate activities in this sector. TNB Smart Grid Steering Committee consists of Research, Transmission, Distribution, Corporate and ICT.


th April 2013 marked a special day for EUMCCI’s Smart Technologies Smart Grid (ST-SG) Committee as it met up with the TNB Smart Grid (SG) Steering Committee at the Berlian Meeting Room, NLDC Building, Tenaga Nasional Berhad in Bangsar.

about its national sustainable development agenda which seeks to reduce the nation’s carbon emission by 40 per cent and jacking up its renewable energy mix to 2,080 MW by 2020 and 4,000 MW by 2030, it has yet to come to terms with adopting the smart grid system.

Although smart grid technology has been embraced in many countries, it has yet to take off in a big way in Malaysia due to the high financial cost of implementing such a system. But if Malaysia is serious

TNB Smart Grid started in November 2009 when TNB decided to implement the Smart Grid Test Systems as demonstration projects on three sites that had been identified for the Smart Gird Test Systems.


EUMCCI’s ST-SG Committee was honoured to have been invited by TNB to discuss among other things, collaboration between both parties on the latest standard and technologies and to communicate effectively with customers and stakeholders. The meeting ended with both parties promising to be more proactive, to share ideas on policies and identifying common standards. The EUMCCI ST-SG Committee will also join the TNB steering committee meeting periodically. EUMCCI ST-SG Committee and TNB will also organise training workshops and forums on Smart Grid. EU

As the whole region awaits breathlessly for the dawn of the upcoming ASEAN Economic Community (AEC) in 2015 when the region’s economy is expected to be integrated, the business opportunities in ASEAN are going to be more attractive than ever. Now is the time to look at the less explored markets of ASEAN seriously. And at the top of the list is Lao PDR. Consider these facts: Lao PDR has an estimated GDP growth of about eight per cent. Unlike other countries in the region, its economy is relatively unaffected by the international economic and financial crisis. The country began moving towards a market-oriented economy in 1986 and has seen an increase in its FDI from 25 million US dollars in 2002 to almost three billion USD in 2011. The economic sectors to invest are in the mining, hydro power, tourism and garment sectors. And no one knows the country better than Simcock who has lived

there for two decades and has represented over 20 companies in Lao PDR. It was a pleasure for EUMCCI to host Simcock, who sits on the board of the European Chamber of Commerce & Industry (ECCIL) in Lao PDR. He gave a comprehensive introduction to the business environment of Lao PDR. He certainly raised the level of interest among the members about doing business in Lao PDR. EUMCCI Chairman, Mr. Fermin Fautsch was also there at the event. EU

Mr. Paul Simcock

Automative (Commercial Vehicles) Meeting with MAI


he newly formed EUMCCI Automative (Commercial Vehicles {CV}) Committee has already gotten down to serious business. It held a meeting with the Malaysian Automative Institute (MAI) on 22nd 2013 April at the MAI office in Century Square in Cyberjaya. The CEO of MAI, Mr. Madani Sahari chaired the meeting. The purpose of the meeting was to discuss the role that CV will play when the AEC becomes a reality in 2015. The Automative (CV) Committee raised several pertinent issues. Among them the lack of incentives to encourage companies to change their old trucks to buy new ones; the very slow and long process (about two months) that it takes for the clearance of sales tax exemption on prime mover for container

haulage and the different criteria that is used in issuing Vehicle Type Approval certification for rebuilt truck (it requires 10 regulations) and new trucks (number of regulations required – 23!). The members wanted to know why the criteria was not the same. After listening to the recommendations of the EUMCCI Automative (CV) Committee, MAI requested that it prepares a position paper to the Government outlining the importance of CV adhering to green issues, the importance of safety and the impact on CV in Malaysia with the coming of AEC. It also requested statistics from various truck companies on the number of employees, the investment done and projected investments for the future, how the companies work with local universities on R&D and increasing safety issues etc.

The Committee was told that this information will help MAI in presenting its case to the Government on the contributions of the CV sector to the country’s economy and strengthen the MAI’s case in ironing out the existing issues in CV so that the sector can grow even more rapidly. After the fruitful discussion, a date was fixed for the next meeting to monitor the follow up. EU EUMCCI REVIEW 33


EUROPE ROUND-UP Europe is the greenest continent 5th June is World Environment Day. The Environmental Performance Index (EPI) released by Yale University and Columbia University every two years is a method of measuring the performance of national governments related to environmental policies. A hundred and sixty three countries are judged according to 25 indicators. The latest EPI released in 2012 shows that Europe leads the rest of the world in being green. Of the top 10 greenest countries in the world, six are from Europe. Of these three countries are from EU with Sweden leading the way. There are no

Asian countries in the list while three South American and one African country have made it to the list. The greenest countries are: 1. Iceland 2. Switzerland 3. Costa Rica 4. Sweden 5. Norway 6. Mauritius 7. France 8. Austria 9. Cuba 10. Columbia EU

Source: International Whale Protection Organisation (IWPO)

World Refugee Day 20th June is World Refugee Day. Here are some sobering figures on refugees: • There are 43.3 million forcibly displaced people. Of these, 27.1 million are internally displaced (IDP) and 15.6 million are refugees • Afghanistan is the leading country of origin for refugees with 2.9 million Afghans living in 71 countries as refugees. Most of them live in Pakistan or Iran. • Eighty per cent or four out of five refugees are settled in developing countries. Sixteen per cent of the refugees are settled in Europe. • Pakistan takes in the highest number of refugees in the world: 1.7 million. EU

Youth in Europe 12th August is International Youth Day. Youth is defined as those who belong to the age group of 15 to 29 years. Here is the state of the youth in Europe today as reported by European Commission EU Youth Report 2012: As of January 2011, there are 95.2 million young people in the 27 EU countries. Youth unemployment in the EU among 15-24 year olds has increased by 50 per cent since the onset of the crisis, from an average of 15 per cent in February 2008 to 22.5 per cent in July this year. Latest figures released by Eurostat show that highest rates are in Greece (53.8 per cent) and Spain (52.9 per cent). Across the EU, more than 30 per cent of the young unemployed have been jobless for more than a year. 34 EUMCCI REVIEW

Despite the gloomy outlook, there are signs that things are improving for European youths. The EU Youth Strategy is being implemented by nearly all the Member States with positive outcome for the youth in terms of more and better opportunities. At the heart of the new EU Youth Strategy for 2014-2020 is the Erasmus for All programme. This proposed new education, training and youth programme envisages a significant increase in funding which would enable up to five million people to receive EU grants to study, train or volunteer abroad. This is nearly twice as many compared with today under the 2007-2013 programmes. The future is looking bright for European youths. EU


Design and technology classes


tudents at the International School @ ParkCity are designing and creating some very interesting products while developing different learning skills thanks to the school’s innovative Design & Technology classes. These classes are providing students with the opportunity to turn innovative ideas into items for practical use. Projects include designing and making a personal wall clock from acrylic (Year 7), researching and constructing a scale model of an energy-saving home (Year 8) and producing a simple electronic radio, complete with its own casing (Year 9). The the and and

Simply the best!


principles. Research, design and a variety of modeling skills are interwoven into each unit of work. Graphic communication and computer-aided designs are used effectively to represent and test initial ideas, produce working drawings and client product mock-ups. The fact that it offers hands-on experience makes Design and Technology a popular subject. It prepares the students to think creatively and translate their ideas to design and build products that reflect their interest and capabilities. EU

n the world of travel, the Skytrax World Airport Awards is one of the most prestigious awards. Skytrax World Airport Awards recognise the very best of products and services of the world airport service industry. This year’s survey was conducted over 10 months, starting from 2012 to February 2013 with more than 12 million nominations from 110 nationalities. At the Skytrax 2013 World Airport Awards, held in April in Geneva, Qatar Airways was honoured with accolades when it retained awards in two key categories. For the third consecutive year, Qatar Airways’ Premium Terminal at Doha International Airport (DIA) was named World’s Best Premium Service Airport, recognised for its superior Five Star service and excellent customer care.

Design and Technology classes allow students to develop their knowledge understanding of materials technology structural, mechanical and electronic

Greening the earth


ow do we green the earth? By planting one tree at a time. That’s what Tesco Malaysia, Malaysia Timber Industry Board (MTIB) and Universiti Pendidikan Sultan Idris (UPSI) have decided to do. Tesco and MTIB signed a Memorandum of Understanding (MoU) with UPSI in Tanjung Malim to mark a partnership to plant 25,000 trees on the latter’s campus. This programme is part of Tesco’s Greener Earth Programme to reduce carbon footprint. The goal is towards planting 500,000 trees by 2014. In conjunction with the MoU signing, Tesco Malaysia also sponsored a green run which was participated by 2,000 UPSI students.EU

Qatar Airways Vice-President Commercial North, South & Western Europe Paul Johannes, collects the award for Best Premium Service Airport on behalf of the airline at the Skytrax 2013 World Airport Awards event held at the Passenger Terminal EXPO in Geneva

Opened in 2006, Qatar Airways’ Premium Terminal became the world’s first dedicated passenger terminal exclusively for First and Business Class travellers and firmly established the airline as an industry innovator. Its worldclass facilities, including fine dining, luxurious spa amenities and business centre make the facility a haven for transiting and departing premium travellers. Since opening three years ago, the 400-room Oryx Rotana remains a favourite among business and leisure travellers arriving in Qatar. EU

Shopping galore Six lucky Malaysians had a chance to live out a dream that most of us can only fantasize about: going into a supermarket and filling up the shopping cart for free! The lucky six who actually did it were winners of the Tropicana Twister/Tesco ‘Shop ‘till you Drop’ contest. The event took place in Tesco Kepong and saw the grand prize winner Sivakumaran Gopal fill his cart with groceries worth RM6,888. The joint second prize winners won shopping spree worth RM3,888 each while the third prize winners were awarded with free shopping spree worthRM1,888 each. All the winners were given only eight minutes each to load their shopping carts with whatever they could lay their hands on.


All of them were happy with their purchases as they must have planned what they wanted to get before hand. They were indeed smart shoppers!

The contest, (the second such contest) which ran from December 2012 to end January 2013, garnered thousands of entries from shoppers. EU





A new training and certification


ÜVRheinland Malaysia Sdn. Bhd. is launching the new Ecodriver Training and Certification service in Malaysia. This service offers state-of-the-art knowledge on best practices from Germany with regards to road safety and fuel efficient driving. The service addresses logistics, transportation companies and companies that have large sales force that travels by car.

New VP for ICT Services

It can also contribute to reduce fuel consumption by up to 15 per cent. The content of the training and certification programme can be customized for the individual needs of the company. The modules included in this programme include theoretical as well as practical training. EU

This service aims to reduce road accidents by deepening the understanding about the vehicle.


ADS Berhad, a managed information and communications technology/ business outsourcing service provider has appointed Fermin Fautsch as its new Vice President for ICT Services.

For more information about this programme please contact the Program Manager at TÜVRheinland, Mr. Marius Stepien at

Before coming to Asia, Fautsch was the CEO of Logica in South America and prior to that, he was the Managing Director of the

Sharing and caring


t’s hard to imagine in prosperous Klang Valley that there are communities that do not have access to basic healthcare. One such community is the Orang Asli community in Kampung Sungai Gabai, Hulu Langat, Selangor. Although only 45 minutes from the city, this small community of 120 has no access to clean treated water or basic health care. Fraser Place Kuala Lumpur teamed up with University Malaya Medical Centre (UMMC) to extend awareness and guidance on general health and sanitation to the Orang Asli community in Kampung Sungai Gabai. A team of the hotel’s personnel, led by director of sales and marketing Mark Chen ventured into this remote community to provide medical attention and educate residents on general health, sanitation, oral hygiene and nutrition intake. The UMMC team of 22

people comprised of doctors, staff nurses, interns from the Dentistry Faculty and the UM Wellness Programme Department of Social & Preventive Medicine. The Fraser Place Kuala Lumpur and UMMC team spent half a day with the community giving free dental inspection, nutrition and general health advice. Fraser Place Kuala Lumpur’s executive chef was on hand to prepare a delicious and nutritious lunch for the community. The visit by the Fraser Place Kuala Lumpur and UMMC team not only brought some cheer to the community, Fraser Place Kuala Lumpur hopes visit such as this highlights the existence of such underprivileged communities and will prompt more organizations to reach out to communities such as this. EU

In the March issue of the Review, there was an error in the spelling of the website of Neapoli. The correct one is We apologise for the error.


Fautsch brings with him more than 30 years of experience in building and managing information technology, operations and consulting businesses across the oil and gas, telecommunications, financial services and utilities industries.

company, overseeing the energy and telecommunications markets in Portugal, Spain, Italy, Africa, Hong Kong and Macau. He was also an Executive Board Member and Chief Information Officer of PT Prime, the corporate telecom services provider of Portugal Telecom. Most recently, he served as the Managing Director, Chief Executive Officer, Partner and Company Director of Logica South East Asia and Hong Kong covering Malaysia, Singapore, Indonesia, Philippines and Hong Kong. He is currently the Director and Chairman of the EU Malaysia Chamber of Commerce and Industry and is also a member of the EUAsean Business Council. Fautsch is a systems engineer by qualification, holds an MBA with honours from the Wharton School of the University of Pennsylvania and an MA in International Economics from John Hopkins University. EU

Director of Benefits Practice


ash Piperdy has been appointed as the Director of Benefits Practice in Malaysia for Towers Watson, a global professional services company. Piperdy will be responsible for client consulting and development and management of the benefits consulting practice. Piperdy has consulted on a wide range of benefits related issues with organisations

Director of HR for Grand Millenium KL


bdul Halik Ibrahim has been appointed as the Director of Human Resources for the Grand Millenium KL a 5-star hotel at the heart of the Golden Triangle in Kuala Lumpur. Abdul Halik has 18 years of experience in HR in the hotel industry. He holds a diploma in HR Management from the Institute of Commercial Management (UK). Abdul Halik who hails from Penang, enjoys cooking and can whip up Thai and Chinese dishes which are his specialty. He is also an active sportsman who loves playing golf, tennis and water sports. EU

across the private and public sector as well as Private Equity firms. His breadth of experience covers International Benefits Strategy, Actuarial Valuations, Retirement Liability Management and pre and post deal M&A advice. More recently, his focus has been on International Benefits and Human Capital costs within M&A. Piperdy is a Fellow of the Institute and Faculty of Actuaries in the United Kingdom and has been consulting for more than 10 years. Prior to being appointed as the Director for Towers Watson’s Benefits Practice in Malaysia, Hash was a senior consulting actuary in London. EU

Director of Marketing and Communications


he Grand Millenium KL has a new Director of Marketing and Communications: Kenny Gordvyn. He comes to the position with 26 years of experience in advertising and marketing under his belt across various industries. He began his career in multinational advertising agencies before moving on to tobacco and oil industries and to international hotel chains. A professed coffee-holic who loves surfing the world wide web and human technology interaction, Kenny’s interests are varied. They range from motorsports, aviation to science fiction. EU



Arkema Thiochemicals Sdn Bhd

With operations in 45 countries, 14,000 employees and 8 research centers, Arkema, France’s leading chemicals producer, generated annual revenue of €6.4 billion. It holds leadership position in all its markets with a portfolio of internationally recognised brands. Arkema has established a new footprint in Asia with the construction of the world’s first Bio-Methionine plant and a Thiochemical Platform. This will allow Arkema to support oil and gas and petrochemicals customers as well as CJ CheilJedang, its Korean partner, in their development in the region.

Person in Charge: Mr Philippe Chartres, Chief Executive Officer Address: A-05-09, No.2, Jalan PJU 1A/7A, Oasis Ara Damansara, Petaling Jaya, 47301 Selangor Darul Ehsan Tel: +603-7839 5888 Fax: +603-7839 5800 Email: Website:

Bureau Veritas Certification Malaysia

Bureau Veritas is a global leader in Testing, Inspection and Certification (TIC), delivering high quality services to help clients meet the growing challenges of quality, safety, environmental protection and social responsibility. Person in Charge: Mr Jean-Daniel Ravier, Project Manager Address: Level 11, Menara Dayabumi, Jalan Sultan Hishamuddin, 50550 Kuala Lumpur - Malaysia Tel: +603-2267 2888 Fax: +603-2267 2889 Email: Website:


Peace of Mind Ltd

Robert Bosch Sdn Bhd

Person in Charge: Mr Totti Karpela, Chief Executive Officer Address: Helsinki and Hong Kong Tel: +852 5329 1183 or +358 40 861 7195 Email: Website:

Bosch also operates joint ventures in Malaysia including BSH Home Appliances Sdn Bhd, FMP Automotive (Malaysia) Sdn Bhd and ZF Steering (Malaysia) Sdn Bhd. In 2011, Malaysia contributed sales of RM 488 million (122 million euros) and employed more than 2,400 associates. Additional information can be accessed at

We help client companies and organizations to deal with exceptionally difficult forms of human behavior. We deal with (internal and external) harassment, stalking, threats and other forms of problematic behavior.

Philip Morris

Philip Morris (Malaysia) Sdn Bhd (PMM) with more than 500 employees in Malaysia today, is an affiliate of Philip Morris International Inc. (PMI). PMI is the leading international tobacco company headquartered in New York, and produces many of the world’s best-selling cigarette brands. Person in Charge: Ms Lilian Ong, Manager Communications Address: 16th Floor, Menara Milenium, No.8, Jalan Damanlela, Bukit Damansara 50490 Kuala Lumpur, Malaysia Tel: +603-2080 5600 Fax: +603-2093 8300 Email: Website:

Bosch has been present in Malaysia since 1923, represented by Robert Bosch Sdn Bhd, with offices located in Selangor and Penang. In Malaysia, Bosch is active in the areas of Automotive Aftermarket, Power Tools, Security Systems, Drive and Control, Packaging Technology, Solar Energy and Thermotechnology. The company has two manufacturing arms in Penang providing car multimedia systems and power tools.

Person in Charge: Mr. Klaus Landhaeusser, Regional Head, External Affairs and Governmental Affairs of Bosch South East Asia Address: No 8A Jalan 13/6, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel: +603-7966 3000 Fax: +603-7958 8833 Email: Website:

TÜV Rheinland Sdn.Bhd.

TÜV Rheinland is a global provider of technical, safety inspection and certification services. Founded 1872 in Germany, today it employs more than 16,000 people in 360 locations in 62 countries. Person in Charge: Mr. Manfred Lottig, Chief Operating Officer Address: No. 26 – 32, Jalan Perindustrian USJ 1/6, Taman Perindustrian USJ 1, 47600 Subang Jaya Tel: +603-8024 2400 Fax: +603-8024 1600 Email: Website:

Worldnet Logistics (Malaysia) Sdn Bhd

WORLDNET LOGISTICS is an independent South African logistics company, offering comprehensive integrated international freight forwarding, logistics and express services for a broad range of industries. As an independent logistics service provider, we actively track and harness the latest technology to bring tailormade integrated solutions specific to your individual needs whilst offering the benefits of a multinational company. Person in Charge: Mr Joerg Friedel, General Manager Address: No.615, Block B, Mentari Business Park Jalan PJS 8/5, Bandar Sunway, 46150 Petaling Jaya, Selangor Tel: +603-5636 2813 Fax: +603-5636 1813 Email: Website:



Exclusive Corporate Partner Benefits Network: With over 30 events each year, the Chamber enables members to meet leaders in business and political spheres. Communicate: The EUMCCI Quarterly Review reaches over 3000 companies, associations and stakeholders in hard copy and online. The EUMCCI e-bulletin is sent to over 6000 business leaders bi-monthly. Exposure: The Chamber is online at www.eumcci. com, on Facebook and Linked In. Advertise with us on our website and in our publications.

Reach Out. Connect. Refer. Every time you refer a new member, you strengthen EUMCCI. A vital and growing EUMCCI membership means greater recognition of our collective VOICE. Why not reach out and share the same valuable opportunities with your colleagues? We know that you understand the value of your EUMCCI membership and now is the perfect time to reach out to your professional contacts and invite them to join EUMCCI. And, when you refer a new member, we want to reward you for every successful sign-up.

Member perks: Attractive discounts from our member companies and vetted partners. Influence: Raise issues via Committees and dialogues.

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EUMCCI Review is a magazine that is the voice of a business community that is vibrant, dynamic and is expected to grow by leaps and bounds. Generally, analysts believe that the EU-Malaysia trade relations is set to see tremendous growth.

EUMCCI Member – Get – Member Campaign 2013

What’s In It for You? You are the greatest testimony to the benefits of being an EUMCCI member. By referring others, you will: • Expand your network of industry peers • Strengthen EUMCCI—A vital and growing membership means greater recognition of the Chamber and OUR collective VOICE • Receive recognition for your recruitment efforts • Receive an exclusive complimentary invitation to our VIP event for every successful sign-up.

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SEEN AND HEARD AT THE TASTES OF EUROPE FEST The 12th annual Tastes of Europe Fest was a great success.

Romanian Wine Appreciation and Ouzo Appreciation Workshop


08 07 Brooke Ferguson and Sari Teerimaki 08 Mircea Tataru

Photography by V. Chanthiran

At the Taste of Europe Fest

Taste of Europe Fest Date: Thursday 30 May 2013 Venue: Taman Mahsuri, Royale Chulan Kuala Lumpur


ne of the most popular and lookedforward to events of EUMCCI is the Tastes of Europe Fest. This annual event now into its 12th year, is organised by EUMCCI together with the European Bilateral Chambers of Commerce and Business Councils. The event provides an opportunity for companies to showcase their products. This is also a great opportunity for the European community and local guests from the diplomatic and business community to get together and network while enjoying a good glass of European beer, wine, cheese and other European delicacies. A lot of products were also on sale at a special price and guests were seen going on a buying spree.













Prior to the main event, there were two workshops: The Romanian Wine Appreciation and the Ouzo Appreciation workshops which were well attended.




Everyone raved about Taman Mahsuri the location of the event – a glass ceiling indoor courtyard. Many guests remarked that it gave a feeling of being in the outdoors with plenty of space to walk about. There were more exhibitors and participants this year compared to last year.

One of the highlights of the event was the lucky draw held towards the end of the day. Many guests walked off with prizes that ranged from bottles of wine, ouzo, olive oil, cheese, chocolates, breads, crystal glasses, holiday vouchers etc. The grand prize a pair of Qatar Airways return tickets to London. EU



05 01 Jari and Linda Niemi 02 Romanian bread and salt 03 Mauro Ianucci and Mihaela Neghina 04 Camelia Narcis Tudose conducted the Romanian wines workshop assisted by Michael Hagerty-Roach 05 Bottles of ouzo 06 Miltos Denediotis explains the finer points of ouzo


01 & 02 Exhibitors setting up their displays 03 Trying out the different breads 04 Desserts served at the event 05 Products from Spain 06 Norwegian salmons were a hit 07 Guests registering for the event 08 Say cheese! 09 It was not just food on display. Crystal wine glasses from Germany 10 Ashley Winter and Arik Vlaanderen 11 A Malaysian fruit corner! 12 Olives from Spain



At the Taste of Europe Fest What they said: “It is a great evening with a variety of wonderful food. I have been coming for this event for the last four years. Every year I wait for this event. This year there is a wider range of products which is great! ” – Rajan Moses. “I always have a good time when I come here and this year is no exception. There is good food and good company.” – Raja Sharidah Raja Sharifuddin “This year’s event is better than last year. There is more variety, choice and exhibitors. I have been coming to this event since it first started. This year I managed to bring along 12 people. I look forward to this event every year.” – Davies Danavaindran


01 08

“I have been coming here for the past four years and definitely it is growing bigger every year.” – Rouvin Thiruchelvam “It’s a fantastic event. I look forward to the cheese; the variety is incredible and all under one roof.” – Joe Cherian


“It is such a lovely event. We love the food. I bought so many things.” – Mary Lou Glanznig “This year’s event is better than last years. I should know as I am an exhibitor.” – Indhra Seghar






“It’s much better this year because of the venue. It feels different as though it is being held outdoors. It’s fantastic! This is how such an event should be done.” – Sue Pike


“I love the venue! It feels as though we are outdoors.” – Lebo Farrell “There are more choices this year. I wish more European chambers would participate in this event. It is really worth it.” – Cyril Quenneville “This is my first time here and I love it! I love the atmosphere, the people and the wide variety of food from Europe.” – Anne Andrado


“I wish there was more entertainment, like a live band perhaps. And I wish there was a sitting area. My knee hurts from all that standing!” – Jeannot Reijnders 13

“I did not expect to win. I’m going to London! It’s fantastic and great.” – Sharon Davies on winning the grand prize. “I was convinced by Minna to come. I met a lot of people I would not have met otherwise from different industries like marine, energy and aerospace.” – Datuk Badlisham Ghazali 04


01 Winner of the grand prize of the lucky draw, Sharon Davies with Minna Saneri and Emmanuel Oswald, the Country Manager for Malaysia/Brunei, Qatar Airways 02 V. Ganesan, Thomas Tan, Dato’ AT Phang and Alex Foo 03 Rajan Moses, Raja Sharidah Raja Sharifuddin, Arief Ahmad Fisal 04 Arnaud Brandt, Jeannot Reijnders and Dr. Ir. Marco Tieman 05 Karina Katzer, Artur Dabkowski and Rafal Szczepkowski 06 Jan Vejmelka, Rosmaliys Hernandez, Sharmilah Perumal and Frank Amptmeijer 07 Siegfried Glanzing and Mary Lou Glanznig 08 Minna Saneri, Datuk Badlisham Ghazali, CEO of MDeC and Datin Rogayah Ibrahim 09 Anne Andrado and Mazdak Mehrpour 10 Asim Khan and Mai Kuen 11 David Choong, Rouvin Thiruchelvam and Joe Cherian 12 David F.J. Davies, Sharon Davies and David Jones 13 All the exhibitors pose for a group photography


C A L ENDA R OF EVE NTS Here is the line of recent and upcoming events organised or supported by EUMCCI.

Recent Events: Online Marketing: How To Get The Most Out Of It Date: 8 May 2013 Time: 9.00am to 11.00am Venue: EUMCCI Conference Room Doing Business in Lao PDR Date: 10 May 2013 Time: 9.00am to 11.00am Venue: EUMCCI Conference Room Biomass Asia Conference 2013 Date: 20 to 22 May 2013 Venue: Sunway Putra Hotel, Kuala Lumpur Host: Biomass-SP Dealing with Internal Conflicts & Interpersonal Threats Date: 29 May 2013 Time: 9.00am to 11.00am Venue: EUMCCI Conference Room Romanian Wine Appreciation workshop Date: 30 May 2013 Time: 4.00pm to 4.50pm Venue: Royale Chulan Kuala Lumpur Ouzo Appreciation workshop Time: 5.00pm to 5.50pm Venue: Royale Chulan Kuala Lumpur Tastes of Europe Fest: Main Event Time: 6.00pm to 10.00pm Venue: Taman Mahsuri, Royale Chulan Kuala Lumpur

Upcoming Events: Logistic & Supply Chain in Malaysia: Issues & Challenges Date: 11 June 2013 Time: 4.00pm to 6.00pm Venue: The Mix, Holiday Inn Glenmarie EUMCCI AGM Date: 14 June 2013 Time: 10.30am to 11.45am Venue: Sheraton Imperial KL Luncheon with Deloitte: Updates on GST Date: 14 June 2013 Time: 12.00pm to 2.00pm Venue: Sheraton Imperial KL Active Life Planning – An Asian Workforce Retirement Perspective Date: 24 June 2013 Time: 12.00pm to 2.00pm Venue: Prince Hotel & Residences KL Public Private Partnership (PPP) Healthcare Infrastructure, Design & Construction Conference & Exhibition 2013 Date: 25 to 26 June 2013 Time: 7.30am to 5.00pm Venue: Hilton Kuala Lumpur Host: Asia Executive Programs Sdn Bhd Sustainable Business Networking Date: 26 June 2013 Time: 4.00pm to 6.00pm Venue: Grand Millennium KL Defence Trade Mission to Czech, Slovakia and Poland Date: 1 to 8 September 2013 IGEM 2013 Date: 10 to 13 October 2013 Time: 10.00am to 6.00pm Venue: Kuala Lumpur Convention Centre Host: Ministry of Energy, Green Technology & Water and Malaysian Green Technology Corporation Defense & Security Committee Golf Date: 19 October 2013 Venue: Staffield Country Resort, Seremban

Note: All events are correct at the time of printing. The events might be subject to change due to unforeseen circumstances. Please check EUMCCI website at for the latest updates on events or direct inquiries to or or call 603 2162 6298


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