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Review

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VOL 6 / NO 1 / 2018

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WINNING STORIES:

EUROPA AWARDS FOR SUSTAINABILITY 2017 Winners share their game plans to address sustainability challenges Stemming the Flow of Illicit Trade

Taxation policies, law enforcement & consumer awareness are ways to curb it

Gig Economy, The Future of Work

Alternative work models replacing full-time traditional employment in Malaysia's metropolitan areas

IoT In Malaysia

IoT trend creates opportunities in a wide market segment spectrum


Review

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CONTENTS 03 04

From The Chairperson Europa Awards For Sustainability 2017

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The Winning Stories, Europa Awards For Sustainability 2017

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KPJ Healthcare Berhad, Malaysia’s Leading Provider of Private Healthcare Services

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GIG Economy, The Future of Work

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Nordic Day

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Europe Day 2018

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Securing The Cyber Space

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Stemming The Flow of Illicit Trade

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Achieving a Successful Digital Economy

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26 IoT In Malaysia, Lots of Room for Expansion

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EU Day Talent Roadshow & Career Fair Pulls in Students

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Finding The Right Talents for Malaysia’s Future

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Networking Cocktail Session Members’ Appreciation Evening

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Corporate Partner News

38 New Corporate Partners

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VOL 6 / NO 1 / 2018


From The Chairperson

The EUMCCI welcomes the smooth democratic change in government. This speaks volumes for the people of Malaysia. As an organisation that believes in the principles of rule of law and free markets, we welcome this new government’s promise of governance and transparency. We look forward to greater transparency of policies and decision-making as this is important for a business friendly Malaysia. We agree with the government’s proposals to improve governance and strengthen Malaysia's public institutions. We welcome the government’s pragmatic plan for its first 100 days in office, which is a responsible approach to managing the Malaysian economy. This is an important milestone for Malaysia and we look forward to continuing our business and investment in Malaysia. TAN SRI REBECCA FATIMA STA MARIA Chairperson EU-Malaysia Chamber of Commerce and Industry (EUMCCI)

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Feature

EUROPA AWARDS FOR SUSTAINABILITY 2017 The awards were a standing ovation to sustainability & empowering business excellence recognising the efforts of businesses in giving back to the Malaysian community.

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he Europa Awards for Sustainability 2017 saw seven leading Malaysian and European companies receive awards for their excellent social, environmental and governance contributions in Malaysia. It was aimed at identifying, qualifying and promoting business excellence in Malaysia in line with the European Union’s sustainable development values. Organised by the EUMCCI, the Awards Gala Night was attended by more than 500 guests. It was officiated by Datuk Isham Ishak, Deputy Secretary General (Trade) of the Ministry of International Trade and Industry (MITI) who represented Dato’ Seri Ong Ka Chuan, Second Minister of MITI. Datuk Isham who delivered Dato’ Seri Ong’s speech said that the successes of businesses in the future would depend on being inclusive and sustainable. “In order to achieve this, the business community and the industry need to ingrain sustainability as a guiding principle in the many choices that each company or organisation makes every day. ”The Europa Awards for Sustainability is a reflection of

Group photo of winners, VIPs and guests.

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efforts incorporating sustainability initiatives into the supply chain for the long term benefit of the Malaysian society and economy,” he added. The event was also graced by Her Excellency Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, who said that EUMCCI’s efforts in addressing key sustainability issues had been instrumental in pushing for more corporate responsibilities through various sectors. “It is important that more and more companies in Malaysia factor sustainability into their overall project and work plans,” added H. E. Maria Castillo. “This is a proud achievement indeed which shows that the Europa Awards have made a substantial initial mark. An increasing number of companies want to show their commitment and achievements in sustainability because they are convinced that this is the right strategic direction to create competitive advantage in the years to come,” said Roberto Benetello, Chief Executive Officer of EUMCCI. The Awards Gala Night was energised by a mesmerising


VIPs and guests standing to attention for the national anthem.

Datuk Isham Ishak, Deputy Secretary General (Trade) of MITI receiving a token of appreciation from Roberto Benetello, CEO of EUMCCI. Looking on are H.E. Maria Castillo Fernandez, EU Ambassador and Head of Delegation to Malaysia (left) and Tan Sri Rebecca Sta Maria, Chairperson, EUMCCI.

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Feature musical performance by the Young Malaysians Go Classic, a 90 piece orchestra and a 48-member choir of young nonprofessional Malaysian musicians. The young musicians enthralled the audience by playing classical tunes including Disney movie favourites such as Mulan; Writings on the Wall, Ameno, Titanic, Pirates and Beethoven’s Ode to Joy. The Europa Awards winners were selected through a stringent process by a panel of judges led by KPMG Malaysia, who reviewed the more than 100 nominations from about 80 local and international companies operating in Malaysia. The awards seeks to recognise companies that have shown exemplary business excellence in the field of sustainability as well as having contributed to the long term benefit of the Malaysian society and economy. The Europa Awards featured five categories with seven awards – Best Sustainability Reporting, Best Innovation in Sustainability, Best Social Impact (awarding large companies & SMEs), Best Environmental Impact (awarding large companies & SMEs), and Best Sustainability Leader (awarding an individual). The Awards were hosted in collaboration with other EU bilateral chambers and MATRADE. The main sponsors for this gala event were Siemens and Sime Darby Group, while other sponsors included Carlsberg Malaysia, Landskap Malaysia and Arla Foods. Supporting partners were MIDA, Hafele, MyData and EventBank. 

WINNERS OF EUROPA AWARDS FOR SUSTAINABILITY 2017 Awards Winners Best Sustainability Reporting

Sime Darby Property Berhad

Best Innovation in Sustainability

Invest Energy Sdn Bhd

Best Environment Impact

Infineon Technologies (Kulim) Sdn Bhd (Large Company)

Biotec International Asia Sdn Bhd (SME) Best Social Impact

KPJ Healthcare Berhad (Large Company)

The Lost Food Project (SME)

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Best Sustainability Leader

Dr Stellios Plainiotis

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Y

CM

MY

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CMY

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Open for Nominations!

SUBMIT YOUR ENTRIES NOW* Award categories and more information: WWW.EUROPAWARDSMALAYSIA.EU Award Ceremony and Gala Event on

22 NOVEMBER 2018

* Terms and conditions apply.

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Cover Story

THE WINNING STORIES EUROPA AWARDS FOR SUSTAINABILITY 2017 Seven winners of the awards presented their winning game plans in driving sustainability and creating innovative technologies to address sustainability challenges.

EUMCCI recently brought together the seven winners of the Europa Awards for Sustainability 2017 in Kuala Lumpur, to share their winning stories and how they have impacted the community and industry with their innovative and sustainable business models.

Group photo of winners and VIPs with Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water.

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BEST SOCIAL IMPACT: KPJ HEALTHCARE BERHAD (LARGE CIMPANY) Winner of the Best Social Impact category, KPJ Berhad is a leading private healthcare services provider in Malaysia with an extensive reach across the nation. The Group has a network of 25 specialist hospitals spread across Malaysia, 2 hospitals in Indonesia, a sizeable share in a hospital in Bangkok, one hospital in Bangladesh and a retirement resort in Australia. Rafeah Ariffin, Senior General Manager, Group Marketing & Communications, in explaining the dynamics of KPJ’s initiatives for social impact, said that KPJ is guided by its 3P model which stands for Planet, People and Profits. In relation to that, their efforts include minimising the environmental impact on the Planet; enhancing People’s quality of life and investing their Profits into community healthcare such as Klinik Wakaf. Testament to the Group’s commitment to impacting society is the Klinik Waqaf An-Nur (KWAN) initiative which is aimed at helping

BEST SOCIAL IMPACT: THE LOST FOOD PROJECT (SME) Winner of the Best Social Impact category, The Lost Food Project (TLFP) is a non-profit NGO established by Parents International Welfare Association of Kuala Lumpur (PINK). TLFP relies on the generosity of donors for funding and rallies the support of volunteers to reach out to the community. TLFP collects surplus food from supermarkets and manufacturers in Malaysia, and distributes the produce to those in need, making a difference to the community and the environment. Angelia Chin Sharpe, Vice President of PINK Malaysia, explained that this innovative initiative is premised on 3 key pillars – Rescue Food, Fight Hunger and Reduce Waste. “It all started in

the impoverished and underprivileged in urban communities by providing a chain of outpatient clinics and dialysis centres. KWAN charges patients a minimal fee of RM5 for normal outpatient treatment inclusive of medication, and RM90 for dialysis services. Patients are treated by qualified medical consultants. To date KPJ has 1 KWAN hospital and 18 KWAN mobile clinics. Starting off with a small KWAN clinic in Johor Bahru in 1998, the KWAN network has grown steadily and today comprises 1 Waqaf An-Nur hospital and 19 clinics, including 5 site clinics and 6 dialysis centres throughout Malaysia. In addition, KPJ also operates two mobile clinics, with the first in operation in Johor since 2012 and the second in Selangor since 2013. Since KWAN’s inception, the Group has successfully reached out to about 1 million patients, and contributes more than RM2million annually to support KWAN activities. Responding to a question on how KWAN has helped with employee retention and engagement, Rafeah said that the Group’s medical staff are ever-willing to lend a helping hand

and this has become part of the culture in KPJ amongst its 13,000 employees, thus culminating in high engagement and retention. To a question on how KPJ justifies its expenditure on social initiatives to its shareholders, Rafeah explained that the Group’s main shareholder is JCorp, which is very supportive of KPJ’s corporate social responsibility initiatives. “In fact, it was the President of JCorp, Tan Sri Ali Hashim’s vision that we reach out to the community in order to be a sustainable business,” she explained.

October 2015 when our founder, Suzanne, was at a local grocer and saw the grocer chopping bruised bananas for disposal. This led to us negotiating with the grocer to give us the unwanted food and find a way to distribute them to homes that actually need it,” shared Angelia. Since its first mission collecting and transporting food by volunteers’ cars, TLFP has grown and now has 3 fulltime employees, 1 warehouse, 2 trucks and an office in Kuala Lumpur. To date, TLFP has rescued 230,000kg of food, and has distributed more than 1 million meals and prevented 42,000kg of greenhouse gases from entering the atmosphere. “We have robust processes in food collection, processing and distribution as well as agreements with charities to not sell our food. Currently, more than 45 charities are receiving food from TLFP,” Angelia shared. On a question on what kind of

social impact TLFP is looking to make, Angelia said there was much work to be done and that TLFP was hoping to replicate this model in other states across Malaysia. She added that TLFP also aims to improve their processes and achieve greater efficiency in this initiative, and eventually reach out to other countries in ASEAN.

Rafeah Ariffin.

Angelia Chin Sharpe.

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Cover Story BEST INNOVATION IN SUSTAINABILITY: INVEST ENERGY SDN BHD Invest Energy Sdn Bhd, the winner of the Best Innovation in Sustainability category, is a growing international

Anand Ramakrishnan.

BEST ENVIRONMENT IMPACT: INFINEON TECHNOLOGIES (KULIM) SDN BHD (LARGE COMPANY) Infineon Technologies (Kulim) Sdn Bhd is a world leader in semiconductor solutions that make life easier, safer and greener. Infineon, which hails from Germany, believes that microelectronics is the key to a better future. Infineon’s global operations encompass the full production value chain and end-to-end semiconductor

Datuk Peter Halm.

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total energy solutions company leading the charge in Renewable Energy Generation, Clean Energy and Energy Efficient Solutions. This is achieved by providing and investing in innovative, cost effective, reliable and proven energy solutions. Anand Ramakrishnan, Managing Director of Invest Energy, explained that this innovative idea stemmed from the realisation of the rising cost of energy. “The award is based on the project which we carried out for Safran, a manufacturer of landing gear for the airline industry,” said Anand. He added that several years earlier, Safran had set up a RM500 million plant in Seremban’s TechValley to cater to the Asian market and was generating process heat and gases which were released into the atmosphere. “Our solution works on the basis that we collect process heat and toxic

gases from large industrial plants and generate electricity and cooling. We put this wastes through a bypass and then through a thermal heater, generating vapour which is then channeled into a turbine to generate electricity and cool air,” Anand shared. To date, Invest Energy has generated a savings of RM5 million per year for Safran in energy costs. The company partners with technology giants such as General Electric and Mitsubishi Electric Company, among others. Convincing investors was a major hurdle and Anand shared, “When we first started, met with 99 investors and only 2 contributed funds to the idea. So I went to more focused funds in the power sector, and targeted investors that had a long-term view; and they liked the long-term nature of this business.”

manufacturing process, and employ about 10,700 employees. The company has 4 factories across the world, of which 3 are in Europe and 1 in Malaysia. Infineon’s wafer fabrication facility in Kulim Hi-Tech Park is the Group’s first and only wafer fabrication plant in Asia, employing more than 2,000 employees. Winner of the Best Environment Impact category, Infineon Technologies (Kulim)’s Vice President and CFO, Datuk Peter Halm said, “Corporate social responsibility (CSR) is a big topic. At Infineon, we include it in our mission and the focus is energy efficiency.” Recognising the challenges that rapid population growth accompanied by higher energy consumption imposes, Infineon believes that the key to managing this efficiently is through microelectronics and processors as well as managed systems. The company’s focus is on the generation and conversion of energy, which can be achieved with semi-conductors. The company’s energy efficient focus has paid off as Datuk Peter explained, “At Infineon, we now need 50% less electricity consumed per square centimeter of processed

wafer; we also need 28% less water; we generate less waste and we conduct a lot of waste recycling activities. Basically, we use resources in a very conscious manner.” The company operates clean rooms where the air is clean and a very controlled environment is established, day and night, all year round. “In order to maintain the clean room despite the changes in the external environment, requires a lot of control systems, which need a lot of energy,” he explained. In Kulim, an energy manager is used – a trained personnel who looks into ways for the company to efficiently burn energy and optimise consumption, which includes optimising machine operations, as well as energy and water consumption. “What we did was to optimise the fan units and cooling units, and recycling of cool air – which requires power. We can also optimise our chillers when there is excess capacity. We look at what we are burning, the power we need and how we can optimise them,” shared Datuk Peter. Today, Kulim’s burning of carbon dioxide in comparison to what can be saved is at a factor of 1 to 41, which is a significant achievement for Infineon.


BEST ENVIRONMENT IMPACT: BIOTEC INTERNATIONAL ASIA SDN BHD (SME) Biotec was established in Belgium in 1984 with the aim of developing appropriate conceptual, technological and methodological tools for tropical regions. The key objectives of the company are to treat wastewater and manage solid organic waste in order to add value to the by-products and use them as industrial, energy and agricultural inputs. Vincent Santantonio, Commercial and Business Development Manager of Biotech International Asia explained that the award is related to the Seraya Palm Oil Mill Biogas project in Tawau, Sabah. “The project is a combination of two elements – a waste management plant and a biogas plant,” said Vincent. By-products of palm oil include liquid and solid wastes and in this project with Seraya, Biotec is focused on liquid waste management. “We

BEST SUSTAINABILITY REPORTING: SIME DARBY PROPERTY BERHAD Winner of the Best Sustainability Reporting category, Sime Darby Property Berhad is a multi-award winning public listed property developer based in Malaysia, involved in property development and property investment as well as asset management. The company has assets in Australia, Singapore, Vietnam and the United Kingdom. Over a span of 40 years, Sime Darby Property has delivered sustainable communities, with 23 active townships/ developments and has approximately 28,000 acres of landbank in four main corridors from Selangor to Johor, of which 10,800 has been earmarked for future development. Sharif James Zainal Aziz, Manager of Corporate Sustainability Unit, Sustainability & Quality Management Department, explained

look at the waste as input that we have to manage. Waste is full of organic matter which has nutrients. Previously, the way to handle this kind of agro waste was to dispose them. What we did was to develop a system to bring back the nutrients and use them as organic fertilizer,” explained Vincent. Biotec also developed technologies to transform the organic matter to fuel. “In this case, we are talking about biogas, which we can turn into electricity or channel back into the industry or be sold for additional income,” said Vincent. Having started its operations in Malaysia in 2008, Biotec is now celebrating its 10th anniversary in the Malaysian market. The company’s treatment of waste water produces gas which can be utilised for other industrial activities. “In Seraya Palm Oil Mill, the mill owner is using the biogas generated from waste to run a biogas generator set. Previously they used diesel and now thanks to biogas they can reduce

the use of fossil fuel and enjoy some savings. Before this, they were burning 1.3 million litres of diesel per year, and this has since been reduced,” shared Vincent.

that the company has a strategic sustainability framework. This helps the company deliver its overarching sustainability purpose: to “contribute to a better society, minimise environmental harm and to deliver sustainable development.” The Group’s sustainability framework has been aligned with the United Nations Sustainable Development Goals (SDGs), of which Sime Darby Property has met 12 out of 17. “Sime Darby does not simply develop housing, we develop townships with a wide range of amenities to build a sense of community and to provide facilities for an active sustainable community,” said Sharif James. The company ensures that its developments have green spaces; areas for outdoor recreation such as parks, allocation for schools, religious buildings and community centres; commercial and retail areas for convenient access to necessities; and essential infrastructure such as

roads, power, telecommunication networks, water and sewage as well as stormwater management. Sharif James explained, “We convert plantation land and don’t cut down forests for our developments.”

Vincent Santantonio.

Sharif James Zainal Aziz.

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Cover Story BEST SUSTAINABLE LEADER: DR. STELLIOS PLAINIOTIS Dr. Stellios Plainiotis is one of Asia’s leading Smart & Sustainable Engineering experts with more than 15 years of experience in the fields of Energy and the Environment. He has consulted over five Green Building projects in Asia and Europe. He is also the co-author of the first Chinese Guidebook on Sustainable Building Design, Design for Sustainability, which is now used as a textbook at the Tongji University in Shanghai and the University of Nottingham, UK. Dr Stellios has produced numerous journals and two books. Dr Stellios is Chief Executive Officer of Neapoli Sdn Bhd with offices in London, Kuala Lumpur, Korea and Hong Kong. Through his company, Dr Stellios has built numerous green and high-performing buildings spanning 25 million square feet of Green Building Space with major sustainable projects across the

world. Dr. Stellios’ projects have been certified under LEED, GBI, Green Mark, GreenRE and MyCREST certification bodies. Speaking on behalf of Dr. Stellios, Michele Ceroni, Building Engineer – Sustainability Consultant, of Neapoli said, “Our core business is in Malaysia but we have projects in Australia and other places. In our projects, we are involved from the early stages right up to the end of the project – from planning to certification.” “Our projects incorporate renewable energy, as well as recycling and conservation of water, among other things. We constantly monitor the specifications of our materials and engage in sustainable purchasing,” added Michele. In Malaysia, Dr. Stellios has contributed to the energy and environmental design aspects of building projects such as Cititower KLCC, Complex Dayabumi Phase 3, Merdeka PNB 118, the Kuala Lumpur International Airport 2, The Westin Hotel, Desaru, Johor, and Rafflesia

Luncheon with Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water EUMCCI hosted Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water (KeTTHA) to a luncheon during the event. In his address Dato’ Seri Ir Dr Zaini, discussed the future of sustainability in the country. “Recently the Prime Minister mentioned TN50 and he has announced the first draft of TN50 sustainability. There are 4 key items in the draft namely Carbon Neutral, Renewable Energy, Energy Efficiency and Top City in the World for Sustainability,” he said. Dato’ Seri Ir. Dr Zaini shared examples of the lack of sustainability in many areas in Malaysia which needs to be addressed and improved. KeTTHA is currently working to improve these areas. He noted that sustainability is not common in Malaysia and there is a lack of awareness. The Green Tech Masterplan was launched six months ago. He added that there is a need to reduce carbon by cutting down the activities that produce carbon. “In Malaysia, only 22% is renewable energy while the rest is largely from fossil fuel,” he said.

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Hill in Johor, among others. On the international front, Dr. Stellios' handy work is seen in the development of the American University of Beirut in Lebanon, Hoxton Square in London, the Taiwan Tower and Crystal Palace Park, among others. In describing Dr. Stellios in his role as a Sustainability Leader, Michele said, “He is very charismatic and passionate about sustainability.” 

“IN MALAYSIA, ONLY 22% IS RENEWABLE ENERGY WHILE THE REST IS LARGELY FROM FOSSIL FUEL.” Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water (KeTTHA)

Michele Ceroni.


Feature

KPJ HEALTHCARE BERHAD

MALAYSIA’S LEADING PROVIDER OF PRIVATE HEALTHCARE SERVICES Since its introduction as the first private specialist hospital in Johor in 1981, KPJ Healthcare Berhad, otherwise known as ‘KPJ’ or ‘the Group’, has been at the forefront of the healthcare industry

D

riven by its core values of Safety, Courtesy, Integrity, Professionalism and Continuous Improvement, KPJ’s integrated network consists of more than 20 specialist hospitals located throughout the nation. With its expansion abroad, the Group currently has two hospitals in Indonesia, a sizable share in a hospital in Bangkok, a hospital in Bangladesh, as well as a retirement and age-care resort in Australia. KPJ’s competitive advantage lies in its extensive reach and presence in the highly competitive private healthcare industry. With its hospitals located in various parts of the nation, the Group’s hospitals are easily accessible and offer a diverse range of medical specialist services, many of which are major firsts in the nation’s healthcare industry. In addition, KPJ has made outstanding inroads in the application of integrated Group-wide technology. The adoption of Cloud Computing has further enhanced the ability of the medical consultants in assessing patient information in real-time to ensure delivery of a seamless service. To further optimise the handling of patients’

records and increase hospital efficiency, continuous improvements are being undertaken to advance the KPJ Clinical Information System (KCIS). Apart from clinical technology located in its hospitals, KPJ is also exploring opportunities to apply digitalised medical technology in everyday life. Among the ventures in the pipeline are KPJ’s E-Pharmacy with online ordering, wearable technology, robotics, Artificial Intelligence (AI) and the Internet of Things (IoT). In October 2017, KPJ became the first provider of private healthcare services in Malaysia to implement the ‘Watson for Oncology’ technology for cancer patients. ‘Watson for Oncology’ is a cognitive computing platform developed by IBM Watson that facilitates oncologists in their efforts to design treatment plans and evidence-based cancer treatment options for each patient. The Group’s extensive experience in hospital development and management spanning more than three and a half decades also means that it is built on strong, dependable fundamentals. These serve as a solid bedrock as the industry continues to evolve and change over time. In growing the health tourism segment, KPJ’s aggressive marketing strategies continue to show stellar results by expanding its footprint in Asia, the Middle East, Africa, Australasia and Kazakhstan (a member of the Commonwealth of Independent States). Apart from hospital-based care, the KPJ Group made its mark in healthcare-related industries, primarily KPJ Senior Living Care services and Healthcare Education. These thriving sub-sectors hold tremendous potential for the future, in line with increasing consumer demand. The hospitals continue to be recognised by accreditation bodies such as the Malaysian Society for Quality in Health (MSQH) and the Joint Commission International ( JCI). KPJ hospitals have been certified by Integrated Management System (IMS) that integrates and emphasises on the Quality Management System (MS ISO 9001:2000);Environment (MS ISO 14001:2004); Occupational Safety and Health (OHSAS 18001:1999) Systems as well as other ISO and SIRIM certifications. KPJ Group continues to touch the lives of the impoverished and underprivileged in communities through its management of the Klinik Wakaf An-Nur (KWAN) initiative. Since the inception of the first KWAN charity clinic in Johor in 1988, it has since served more than one million patients. Today, the KWAN network encompasses one hospital in Johor, 19 clinics throughout Malaysia, as well as four mobile clinics in Kuala Lumpur, Johor and Selangor. 

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Feature

GIG ECONOMY, THE FUTURE OF WORK Advancements in technology and a rise in digital platforms have made it easier for people to make a living without being tied down to one company. Just like the rest of the world, Malaysia has seen exponential growth in the number of independent workers without full time jobs.

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recent forum organised by EUMCCI brought together members of the Government, public and private sectors to discuss the latest trends of the gig economy in Malaysia’s metropolitan areas and its effect on the overall economy. The panel members were Yeoh Chen Chow, Co-founder of Fave; Sam Haggag, Country Manager of Manpower Group Malaysia; Datuk Shamsuddin Bardan, Executive Director of Malaysian Employers Federation; and Tunku Alizakri Raja Muhammad Alias, Deputy CEO (Strategy Department) of the Employees Provident Fund (EPF). The moderator was Roberto Benetello, CEO of EUMCCI. The Intuit 2020 report states that 34% of Americans are working independently in the gig economy while in the European Union independent workers are the fastest growing group in the labour market. Closer to home, EPF reported that Malaysia’s gig economy, also known as the open-talent economy, has grown 31% this year, surpassing the traditional workforce. Yeoh, a co-founder of a startup with 300 full time staff, says that they still use about 200 freelancers. “We lose a lot of our staff to “work and travel”. But how will that affect the workforce today? It’s all about flexibility. People want to be able to do what they want anytime of the day,” he adds. This trend has been prevalent among the younger generation who have also opted for other unusual ways of earning a living such as publishing vlogs (video blogs) on YouTube and being social media influencers and e-teachers. “Full-time, traditional employment is in decline in much of the world. This is giving way to a host of alternative work models – from contract and self-employment, to agency and gig work, and much more,” says Haggag. “However, as these alternative employment models mature, we need to keep their positive aspects, while making

sure we continue to take care of people, invest in their development and provide a path to career security.” Manpower Group surveyed about 9,500 people in 12 countries to find out how they want to work in the future and their views of ‘NextGen’ work. They found that what people want is changing – 87% of those surveyed would consider alternative ways of working in the future, while 90% of those already working this way enjoyed it. “As people work longer and learn more, many are seeking a better balance between work and home. Not everyone wants to engage as a full-time employee and organisations don’t always want that either. In fact, today, more people and businesses than ever want to work differently,” Haggag adds. These added avenues are a positive development for the country’s economy as they help utilise excess labour at a time when youth and graduate unemployment is under a spotlight, says Datuk Shamsuddin. “Perhaps this could be a new way or a paradigm shift in our world view of labour markets where one should not be too fixated on permanent employment. As it is, companies are struggling due to a rise in the cost of doing business, strict regulatory compliance requirements and intense competition in the marketplace. This has led employers to emphasise more on productivity,” he adds. The freedom that comes with being an independent worker, however, has a downside: uncertain income. Not having a full-time employer also means losing out on the employer’s contribution to one’s pension or EPF savings. In other words, there is a heavier burden on the individual to save for his or her own retirement – which is why the existing defined-contribution system needs to be tweaked. Financial insecurity is one worrying finding from a recent survey by INTI International University and

HIGHLIGHTS OF PANEL DISCUSSION SAM HAGGAG • Jobs should provide access to the labour market. • There is a need to fill the void of career guidance. • The need to develop indemand skills, on the job.

YEOH CHEN CHOW • Growing numbers of Malaysians in cities are not working traditional jobs. • Companies should open their policies to more flexible working structures and schemes. • Companies should offer life-work balance for long careers.

DATUK SHAMSUDDIN BARDAN

TUNKU ALIZAKRI RAJA MUHAMMAD ALIAS • The need to focus on a retirement scheme as early as possible. • Supplementing pensions. • Government needs to increase contribution to help the workers of the gig economy.

• Providing labor market

mobility for people and business. • The need to nurture learnability. • Preparing people for disruption from technology, automation and globalisation.

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Feature Colleges. Some 66% respondents did not have a retirement plan, 33% did not have a personal financial plan and 56% had less than three months of financial cushion, versus the recommended six-month financial buffer. In 2010, the government introduced the 1Malaysia Retirement Savings Scheme (SP1M) to cater for the growing number of Malaysians without a fixed monthly income, but who desire a fund to safely grow their savings for retirement. Individuals may voluntarily contribute a minimum of RM50 to their SP1M account up to a maximum of RM60,000 a year. While the number of participants in the scheme has been growing slowly over the past few years to about 90,000, Tunku Alizakri says this was still not satisfactory. “Clearly, everyone knows the issue of low retirement savings by Malaysians. But, why is this so? Is this due to a lack of understanding of the importance of saving for old age? Is it a lack of financial literacy? Or is the rising cost of living making it hard to save?” asks Tunku Alizakri. He says the informal employment sector under the gig economy has been growing at a faster rate than the formal employment sector. “In my opinion, there is a lack of trust among Malaysians in the formal establishment – in both the government and the corporates – which could partly be driving the growth of the informal sector and the gig economy.” A higher burden on independent workers to take care of their own retirement and healthcare insurance also points to the greater need for social security nets and higher utilisation of public healthcare services. The increased public expenditure burden may also be compounded by the under-reporting of taxes by those not in the old-school definition of formal employment. The government is well aware of this and is working on improving tax collection in the new economy, says Datuk Shamsuddin.

At the end of the discussion, it was clear that business leaders and policy makers must collaborate to find the best balance of flexibility and responsibility. Benefits that were once tied to jobs, now need to be able to travel across portfolio careers whether that’s certifications, pensions, training funds and more. Leaders must enable, not prevent the gig economy, and must be responsive to what people want. People are choosing to work differently and new ways of getting work done are on the rise. 

QUESTIONS FROM THE FLOOR

Susan Wan from Alice Smith School Association asked about the skill sets needed to instill in their students to get them ready for the gig economy. Tunku Alizakri says humanity will be lacking in IR4.0, thus skills of instilling this across the board would be crucial. Datuk Shamsuddin says education now can be obtained from everywhere. “We need to educate students to be adaptable to challenges and new frontiers that may not be available now.” Susan Wan On the future of intellectual property in this economy, and if traditional IP will be dispersed, Haggag says remote, contingent workers provide a useful resource for businesses, and their utility is likely to increase as remote working technology evolves. Businesses need to be mindful of protecting proprietary information, including avoiding assumptions that employees and contractors are alike in obligations owed over proprietary information; adequately addressing business protections in written contracts; and carefully considering what information needs to be protected, who should be giving promises about business protection obligations, and where those obligations may need to be enforced.

WHAT PEOPLE IN THE GIG ECONOMY SAY “The feasibility of the gig economy in Malaysia is definitely apparent as we experience an increasing number of Malaysian ‘SupaAgents’ within our task force. The Malaysian government also backs its feasibility by introducing initiatives like the eRezeki programme that heavily promotes Malaysians to be a part of the gig economy and to become a digital worker themselves. With that being said, I believe that there is still a lot that needs to be done as a whole from the government as well as from private businesses. There is still a lack of understanding by the public, compared to countries like Philippines or the USA, on what is expected of a digital worker together with the skills required in order to excel as one.” Greg Meehan, Head of Sales, Supahands

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“I believe there is a lot that the Government can provide to contributors of this special economy. Many of us are highly creative and innovative people who can contribute in great measures to the country’s growth. However, as for the country’s contribution to our future and the security of our family, it is very minimal. I suppose it's because the industry is in its infancy here, and policy making takes time. Just because we work differently, doesn't mean we should be marginalised. Embrace the economy and let's work together to make it better, because I am sure it is here to stay.” V. Kugantharan, Web Specialist and Special Needs Piano Teacher


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NORDIC DAY RECEPTION Five Scandinavian countries jointly celebrate Nordic Day.

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From left: H.E. Dag Anders Juhlin-Dannfelt Ambassador of Sweden to Malaysia, the Honorable James Khor, Honorary Consul General of Iceland in Malaysia, Datuk Ramlan Ibrahim, Secretary-General of the Ministry of Foreign Affairs, H.E. Petri Puhakka Ambassador of Finland to Malaysia, H.E. Gunn Jorid Roset of Norway and H. E. Jesper Vahr Ambassador of Denmark to Malaysia.

he Royal Norwegian Embassy recently joined forces with its Nordic colleagues from Finland, Sweden, Denmark and Iceland, to host the first joint Nordic Day celebration in Kuala Lumpur. More than 300 invited guests attended the event, including the four Nordic Ambassadors to Malaysia and an Honorary Counsul – H. E. Jesper Vahr of Denmark, H.E. Dag Anders Juhlin-Dannfelt of Sweden, H.E. Petri Puhakka of Finland, H.E. Gunn Jorid Roset of Norway and the Honorable James Khor, Honorary Consul General of Iceland in Malaysia. Gracing the event was Datuk Ramlan Ibrahim, Secretary-General of the Ministry of Foreign Affairs Malaysia. H.E. Gunn Jorid Roset, on behalf of the Nordic Ambassadors, raised a toast to the success and prosperity of the member states and its people. H.E. Gunn Jorid Roset, in her address, spoke of the shared economic, historical, cultural and geographical ties of the Nordic countries. The shared values also include good governance, transparency and rule of law, among others. She also expressed confidence in the Malaysian market and strong interest in maintaining a close dialogue with the government. “As a region, the Nordic has a lot to offer Malaysia. We are 27 million people living in what is referred to as the most integrated region in the world. Trade between the five Nordic countries and Malaysia is USD2 billion a year,” she said.  EUMCCI REVIEW

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H.E. Maria Castillo Fernandez and Dato Sri Ramlan Ibrahim with ambassadors of EU countries to Malaysia.

Tan Sri Rebecca Sta Maria, Chairperson, EUMCCI and and spouse Mr Jayasankaran.

EUROPE DAY 2018

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Dato Sri Ramlan Ibrahim, Secretary General of the Ministry of Foreign Affairs, raised a toast to the member states of the EU.

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he European Union celebrated EU Day in full festive mood in Kuala Lumpur on11th May with about 500 people, including EU Ambassadors in Malaysia, and invited guests attending the event which was themed “Year of Cultural Heritage”. Hosted by Her Excellency Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, the event marked the 61st anniversary of the EU’s founding Treaty of Rome which created the European Economic Community, the forerunner of the EU. Guest-of-honour, Dato Sri Ramlan Ibrahim, Secretary General of the Ministry of Foreign Affairs, raised a toast to the prosperity of the member states of the EU and its people. Her Excellency Maria Castillo welcomed the guests and congratulated the people of Malaysia on their peaceful democratic change in government during the 14th General Election, and Prime Minister Tun Mahathir Mohamad on the extraordinary victory of the opposition coalition. “There will soon be a new government, and this means that we can get back to business together. There is a lot to do together: relaunching our Free Trade Agreement negotiations from which we can both benefit; signing our partnership and co-operation agreement which will allow us to engage in both a broader and a deeper co-operation


agenda; and strengthening our regular dialogue on environment and climate change, including sustainability. Both Malaysia and the EU are firmly committed to the Paris Agreement and its implementation.” The EU is one of the largest investors in Malaysia and its third largest trading partner. Guests also witnessed the selected and highly-skilled youth members of the Selangor Philharmonic Orchestra (SPO) perform the official national anthem of the EU, Beethoven’s “Ode to Joy” from Symphony No. 9. In the universal language of music, this anthem expresses the European ideals of freedom, peace and solidarity. More memorably, the SPO’s spirited delivery of “Negaraku” inspired many Malaysians guests present to sing the national anthem in high emotion, with its concluding notes sparking cheers and applause from all present. No doubt, the historic and remarkably peaceful change in the Malaysian government just a day earlier injected extraordinary energy into the often polite observance of national anthems being played. The festive atmosphere was further heightened with a gastronomical fare where guests mingled freely with one another and savoured an expansive range of European food and wine. Several EU countries had booths which provided a variety of wines and delicacies, including cheeses and rich desserts, native to each country. 

Worldchef Congress & Expo 2018 Special Edition 12-14 July 2018 | Kuala Lumpur Convention Centre Tastes of Europe is back with an exciting special edition!

Platinum partners

Supporting partner

CRM partner

SEBSEAM-M partners

Tastes of Europe embodies the European Culture for Food & Beverage in the Klang Valley and connects it with the business world. This year, EUMCCI have decided to take this very special European food festival to a whole new level by participating in the Worldchefs Congress & Expo 2018 in July, 2018. We are expecting 6,000 visitors, 200 exhibiting companies, 20 speakers, and 4,000 chefs from 105 countries. For more information, call us at +603 2162 6298 or email us at pervinder@eumcci.com.

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SECURING THE CYBER SPACE Panel of speakers address cyber risks and cyber security concerns that plague industry 4.0.

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ith industry 4.0 rapidly gaining momentum across the globe, this fourth revolution brings with it a new operational risk for connected, smart manufacturers and digital supply networks. Although industry 4.0 heralds a new era of connectivity, smart manufacturing, responsive supply networks and customised products and services, cyber risks are beginning to threaten the rising revolution. The challenge now is to implement a secure, vigilant and resilient cyber risk strategy that safeguards industry 4.0. Recognising these threats, the EUMCCI in collaboration with TUV Rheinland, recently organised a session on cyber risks in relation to industry 4.0 featuring a panel of speakers who expounded on the various aspects of cyber risks. Alexandra Herbel, Managing Director of TUV Rheinland, in her keynote address gave insights on the development of Cyber Risk Management for industry 4.0, and how this affected businesses. She noted that with a global population of 7.5 billion who are all connected via various devices, cyber risks have increased in recent years. “In 2017, more than USD1 trillion in damages were incurred by cyber attacks,” said Herbel. This called for urgent mitigation to deter or safeguard enterprises and individuals against these crimes. The session also featured Dr. Fadhullah Suhaimi Abdul Malek, Chief Officer Network Security, New Media Monitoring, Compliance and Advocacy, Malaysian Communications and Multimedia Commission. Dr. Fadhullah iterated that the only constant is change considering the drastic changes in industry and technology.

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He expressed that security was a challenge, especially in the cyberspace, since it involved critical information. He too noted that with the global population connected via the Internet, cyber risk is increasingly threatening industries and individuals. “Breach in security is often a result of malware, at a ratio of 1 in 20,” he said. He added that the key to managing cyber risk was to set in place processes, such as an organisational checklist, that everyone within an organisation had to conform to. “This will help to reduce incidents, if not to zero-rise it. Industry has to come together to deter these incidents. Security starts with you,” he stressed. Nigel Stanley, Chief Technology Officer – Industrial, TUV Rheinland, expounded on operational technology amidst cyber risks. He explained how operational technology and industrial security worked hand in hand to detect potential cyber security incidents. He shared about the incidents of cyber security threats that have taken place in recent times, such as the incidents involving San Francisco’s light rail system, the US government’s security site being hacked and breaching of information security at hospitals as well as its medical devices in the US. He explained the lifecycle for functional safety and cyber security which involves hazard and risk analysis as well as risk and threat analysis. He expounded that risk assessment was important for manufacturers, systems operators and systems integrators. Stanley shared about risk assessment approaches such as the NIST, which promotes US innovation and industrial competitiveness by advancing measurement science, standards and technology to enhance economic security and to improve the quality of life. He also


“65%

OF COMPANIES IN MALAYSIA ARE STILL VULNERABLE TO CYBER ATTACKS AND ARE NOT SUFFICIENTLY PROTECTED.” Alexandra Herbel

Dr Fadhullah Suhaimi Abdul Malek

Datuk Seri Panglima Wilfred Madius Tangau

Nigel Stanley

Rajeev Sukumaran

Tarun Gupta

explained the ISA/IEC 62443 which is designed to upskill IT professionals and control system security roles for cyber security purposes. Rajeev Sukumaran, Director Consulting Services, TUV Rheinland, spoke on Automotive Cyber Security and Evolving Threat Landscape. Mr. Sukumaran shared three key concerns which include building a secure and resilient automotive production facility; challenges to connected mobility; and addressing cyber security in industry. “Cyber security incidents are rapidly increasing in the manufacturing environment, especially now that cars are also connected devices. This calls for security in the manufacturing environment especially during the design phase,” he said. Tarun Gupta, Principal Consultant – Industrial Security, TUV Rheinland highlighted critical infrastructure protection for railways and utilities. Gupta aired a video on keeping the railway system safe from cyber attacks and other issues concerning emerging threats, supply chain risks, industrial control threat landscape and information technology security involving operational technology cyber security. On the issue of privacy and security in the IoT world, Urmez Daver, Vice President – Consulting Services, TUV Rheinland, shared insights on the fundamentals of security and privacy for managing cyber risks. He also shared several major incidents of security failure. Key challenges in the world of smart devices includes a lack of standards, increase in complexity and the rapid generation of big data. “Privacy and ethical decision making are also challenges today where devices are subject to security breaches,” he stated. The session ended with a luncheon graced by the Minister of Science, Technology and Innovation, Datuk Seri Panglima Wilfred Madius Tangau. In his address to the guests, Datuk Seri Wilfred said that Malaysia is

~ Datuk Seri Panglima Wilfred Madius Tangau

Urmez Daver

committed towards creating a secure cyber environment. “The Malaysian government is committed to strengthening its cyber space. However, there is more work to be done.” He added that 65% of companies in Malaysia are still vulnerable to cyber attacks and are not sufficiently protected, and this means more education and assistance are required to mitigate this situation. He stated that cyber security will remain a main priority for Malaysia for the next five years. In view of this, the development of homegrown cyber security products and services will be given greater focus in order to enable self-reliance. Datuk Seri Wilfred stressed that the role of cyber security in securing innovation and paving the way in industry 4.0 is an important element in driving the Malaysian economy. He stated that the International Telecommunication Union’s 2017 Global Cybersecurity Index ranked Malaysia as the third most committed country on cyber security, after Singapore and the US. Datuk Seri Wilfred also reiterated that cyber security acts as a shield for the nation’s development and society's wellbeing, therefore the challenge is to create a safe cyberspace for Malaysia by 2020. 

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STEMMING THE FLOW OF ILLICIT TRADE IN MALAYSIA llicit trade in goods such as cigarettes, liquor and Intellectual Property Rights in Malaysia not only robs the Government of valuable tax dollars, it also has other negative consequences for the country.

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ne unexpected result of global trade which has resulted in the free movement of goods and the rise of the Internet and online businesses is the mushrooming of illicit trade. This is a worldwide problem and the cost to affected countries is great. Illicit trade is defined by the World Health Organisation (WHO) as “any practice or conduct prohibited by law and which relates to production, shipment, receipt, distribution, sale or purchase, including any practice or conduct intended to facilitate such activity.” The Organisation for Economic Co-operation and Development (OECD) has estimated the cost of illicit trade to be around US$250 billion, while the International AntiCounterfeiting Coalition (IACC) estimates it to be US$600 billion per annum as of 2015.

MALAYSIA’S LOSS OF TAX REVENUE Illicit trade, although very prevalent in Malaysia, has not been subjected to detailed studies. It is a world that still operates in the shadows. One of the best reports on illicit trade in Malaysia and its effect was done by the Institute for Democracy and Economic Affairs (IDEAS). Titled Illicit Trade in Malaysia: Causes and Consequences, it was

released in October 2017 and clearly shows how illicit trade is depriving the Malaysia government of valuable tax dollars. The report cites the case of Penang, where a study done in 2011 showed that in one year, the state lost around RM16 million in uncollected taxes due to illegal economic activities. This figure undoubtedly would be higher today thanks to the increase in illicit trade. In March this year, The Economist Events hosted the second Global Illicit Trade Summit in Kuala Lumpur, which was attended by over 120 experts from the government, law enforcement agencies, international organisations, industries and academia across the region. Kuala Lumpur was perhaps chosen because Malaysia has gained notoriety as an international hub for counterfeited goods. The European Commission trade website on Malaysia (trade. ec.europa.eu/doclib/docs/2006/october/tradoc_130425.pdf) voiced concern that the pirated optical discs and counterfeit software manufactured in Malaysia are exported around the world including to the EU. At the summit IDEAS Director of Research, Ali Salman, revealed the estimated amount of tax revenue that the Malaysian government lost due to illicit trade to be RM8 billion. Bernama, the national news agency, which carried the story, quoted Ali as saying that the illicit trade in

“LATEST AVAILABLE DATA INDICATES THAT 55.6% OF CIGARETTES SOLD IN MALAYSIA ARE SMUGGLED CONTRABAND PRODUCTS. THIS TRANSLATES INTO ALMOST SIX OUT OF EVERY 10 CIGARETTE PACKS SOLD IN MALAYSIA TO BE ILLEGAL PRODUCTS. BASED ON INDUSTRY ESTIMATES, CONSUMPTION OF ILLEGAL CIGARETTES STOOD AT A STAGGERING 10 BILLION STICKS IN 2017 IN MALAYSIA." Guilherme Silva, Managing Director of JTI Malaysia

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Malaysia is mainly driven by tobacco products, liquor and beer, food and beverages, machinery and motor vehicle parts.

THE WORST AFFECTED INDUSTRIES: TOBACCO AND LIQUOR AND BEER Customs Director General Datuk T Subromaniam in a report published by New Straits Times in May 2017 has been quoted as saying that contraband cigarettes are the most smuggled commodities in Malaysia. The adverse effect of the illegal trade is most felt by the Malaysian tobacco and liquor and beer industries. Guilherme Silva, managing director of JTI Malaysia has some sobering facts on the havoc the illegal trade of cigarettes has had in Malaysia. “Latest available data indicates that 55.6% of cigarettes sold in Malaysia are smuggled contraband products. This translates into almost six out of every 10 cigarette packs sold in Malaysia to be illegal products. Based on industry estimates, consumption of illegal cigarettes stood at a staggering 10 billion sticks in 2017 in Malaysia,” says Guilherme. It is estimated that the government loses close to RM5 billion a year due to illegal cigarette trade and the issue is by far the single largest tax revenue leakage issue in this country, he adds. “Malaysia faces a very serious illegal cigarette trade problem that can only be described as a national problem!” Another industry which has been badly hit by the illicit trade is the liquor and beer industry. Liquor and beer also make up one of the most smuggled goods in Malaysia. The seizure of contraband liquor and beer by enforcement agencies has increased thanks to the launch of anti-contraband Ops Outlet which began in 2010. A Customs Department raid at the Free Zones at the Port of Tanjung Pelepas, Gelang Patah, Johor in April 2017 led to the seizure of RM20 million worth of beer and whiskey in 14 containers. It is estimated that in 2015, the illegal smuggling of these items has resulted in the Malaysian government losing over RM900 million in alcohol tax revenue, including excise and import duties!

HIGH DOMESTIC TAXES Cigarettes and alcohol are often subjected to the ‘sin tax’. Smoking and drinking are considered unhealthy habits and the government would like to see its citizen wean off from these products. Unfortunately, what the citizens want for themselves can be at odds with what the Government wants for them. The huge shadow industry involving the smuggling of cigarettes and alcohol is proof that when there is demand and the price is high, people often look at illegal ways to obtain the goods to satisfy their needs. The government’s intention of discouraging people from smoking by raising taxes on cigarettes and making them very expensive is not working. IDEAS in its report has stated that with the increase in population, the number of smokers has increased from 4.7 million in 2011 to a high of 5 million in 2015. More alarming is the revelation by the Minister of Health that over 52% of people in the country are smoking cheap, illegal cigarettes, which in turn is driving up the smoking prevalence in Malaysia as legal volumes have declined significantly in the recent years. The reason Malaysians are opting for the contraband is because of the price factor. “The high excise increases on cigarettes over the years – 14% increase in September 2013, followed by a 12% increase in November 2014 and a massive 36% hike in November 2015, has subsequently created a huge price gap between the legal and illegal segment,” says Guilherme. For example, a pack of a premium brand of cigarettes cost RM17 while a pack of illegal cigarettes can be easily obtained for as low as RM3 in the market. Higher excise taxes on beer and liquor have pushed the price of alcohol up. Three consecutive tariff hikes from 2004 to 2006 have caused Malaysia to have the second highest duty on beer in the world after Norway. The price hike forces the consumer to look for cheaper alternatives and thus turn to contraband beer.

IPR When it comes to IPR, the biggest problems are piracy and counterfeits. Good are produced locally and exported overseas, including to the EU and they are imported into

“THE ESTIMATED AMOUNT OF TAX REVENUE THAT THE MALAYSIAN GOVERNMENT LOST DUE TO ILLICIT TRADE TO BE RM8 BILLION." Ali Salma, IDEAS Director of Research

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“COUNTRIES MIGHT IMPOSE TARIFFS ON MALAYSIAN GOODS, REDUCE TRADE OR NOT, ENCOURAGE INVESTMENTS INTO THE COUNTRY AS A KIND OF ECONOMIC SANCTION FOR NOT PROTECTING IPR.” Chew Phye Keat, Head of EUMCCI’s IPR committee

Malaysia as well for local use. In Malaysia the illicit trade in IPR involves pirated optical discs, software and electronics. Pirated discs are widely available and sold openly in shops and markets. There is also widespread use of unlicensed software, illegal downloads of films and other copyrighted content. Counterfeit goods such as luxury watches, handbags and textiles are imported from China and Korea and are sold locally. The European Commission trade website also lists other kinds of infringements such as infringement of patents, of design, geographical indications and theft of trade secrets.

EFFECTS ON THE ECONOMY Besides the loss of tax revenue, illicit trade has resulted in closure of factories and unemployment. Two of the biggest international cigarette manufacturers in Malaysia – British American Tobacco (BAT) and JTI Malaysia had ceased its local manufacturing operations in the past two years. The sharp rise of illegal cigarettes was cited as one of the key reasons. “The cessation of the two major manufacturing operations also affected its supporting industries resulting in close to 1,000 workers losing their jobs in the legitimate tobacco industry due to the illegal cigarette trade,” explains Guilherme. As the movement of contraband goods requires a good network of smugglers, informants and corrupt officials, illicit trade contributes to the rise of crime and violence. Many transnational crime syndicates and international terrorist networks rely on the trade of illicit goods as their main source of funding. Malaysia’s standing in the international community will be damaged if it does not control the illicit trade. Chew Phye Keat, Head of EUMCCI’s IPR committee, says other countries might not view Malaysia favourably if it does not act strongly against piracy and counterfeiting. “Countries might impose tariffs on Malaysian goods, reduce trade or not, encourage investments into the country as a kind of economic sanction for not protecting IPR,” says Chew. 

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COMBATING ILLICIT TRADE

There are several measures that need to be taken to curb the illicit trade in Malaysia:

• The government has to review its current

taxation policies to stem the illicit trade, especially for goods such as cigarettes and liquor and beer. At present there is a huge price gap between the legal and illegal products.

• Step up enforcement activities. Stringent

measures should be taken to plug leakages in the system. There should be a strong effort and cooperation from all law enforcement agencies such as the Malaysian Maritime Enforcement Agency (MMEA), Marine Police, Malaysia Border Security Agency and Royal Malaysian Navy.

• Improve border control. “Thanks to the

Customs raids and the anti-infringement actions in court by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC), there has been a reduction of counterfeit and illicit goods,” says Chew. “But the smuggling of illicit goods into the country is still a problem. That’s why it’s very important to have good border control.”

• Improve consumer awareness about IPR and increase consumer ethical standards so that they will not buy pirated goods.


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ACHIEVING A SUCCESSFUL DIGITAL ECONOMY

The Digital Economy has the power to add significantly to economic growth and development. The EU-ASEAN Business Council report on “Ensuring Success for the Digital Economy in ASEAN” explains how the world is embracing the transformation, and offers suggestions to improve it.

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here is no doubt that the Digital Economy has the power to add significantly to economic growth and development in South East Asia. But how successful the region is at embracing the Digital Economy and encapsulating the benefits of it depends on how it approaches the matter as a collective.

FREE FLOW OF DATA There are a number of areas that need to be looked at if ASEAN is to maximise the potential benefits that can be harnessed from the Digital Economy. Putting in place the right ecosystem is of vital importance. It is not just a question of ensuring the right physical infrastructure, such as broadband networks and 4G or 5G data systems, it also requires the right policies and regulations to be developed which will encourage the exchange of data and the movement of goods and services that are sold via digital platforms.

from e-Commerce, and easing cross-border payments so that companies selling goods and services via digital platforms can get paid easier, faster, and more efficiently. These areas have to be considered within the need to support the push by ASEAN’s governments for economic growth, higher levels of living, attractiveness for companies and investments, and also the increased well-being of the people.

DATA LOCALISATION EU-ABC suggests that the goal to encourage privacy and security may not be best achieved by data localisation, but instead by actively maintaining data and taking advantage of updated secured technologies. It is recommended that ASEAN member states permit the free flow of data across borders under explicit consent of the owners to avoid such productivity loss and to the detriment of the ASEAN economy.

DRIVING INNOVATION, DEVELOPMENT AND GROWTH

PAYMENT & SETTLEMENT SYSTEMS

The Digital Economy drives innovation, development and growth for stakeholders in different parties. Data localisation laws and requirements will impact the rate of technological innovation in ASEAN. By avoiding such regulations as far as possible, data can be shared across borders with the explicit consent of the owners. This suggestion aims to support an environment conducive for innovation, incentivise companies to continue to invest and ensure the continuous supply and development of useful products and services that are advantageous to the region. These goods and services are also further improved by the presence of free flowing of data. The free flow of non-personal data is a prerequisite for a competitive Digital Economy. Moves to restrict the free flow of data will, therefore, inhibit the development of the Digital Economy and the ability of businesses, both large and small, to take full advantage of it, to the detriment of customers. The report outlines several worrying aspects and impactful outcomes of data localisation laws in ASEAN. It also deals with other areas that need to be considered when looking at the Digital Economy, namely easing the movement of goods

In a bid to fast-track regional payments integration, reduce inefficiencies in cross-border payments and trade, and include mid-smaller size banks in payments innovation incentives, EUABC recommended a promotion of wide-scale adoption in ASEAN banks of community-based initiatives like SWIFT gpi that are not commercially driven, remain market & segment-neutral, remain fully inclusive and provide a ready platform for regional payments integration within ASEAN markets, and also with extra-ASEAN markets.

E-COMMERCE & THE MOVEMENT OF GOODS A range of recommendations were made, including to introduce simplified clearances for low-value shipments in line with WTO and WCO Guidelines, for example, minimal data elements, consolidated clearance, importer/exporter registration exemptions and common value threshold for such shipments, among others. EU-ABC also suggested the introduction of a requirement that new legislation is evaluated and assessed on its necessity, usefulness and impact before it is implemented.  EUMCCI REVIEW

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IoT IN MALAYSIA – LOTS OF ROOM FOR EXPANSION

The information and communications technology market is poised for growth. Lower costs and efficiency are spurring SMEs, which have long been the backbone of Malaysia’s economy, to look at adopting the Internet of Things.

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he digital economy continues to be a key driver of growth, contributing 18.2% of Malaysia’s GDP in 2017 and is expected to exceed the projected target of 20% earlier than 2020. Malaysia’s ICT spending, combining services, software and hardware, is expected to grow from RM9.1 billion in 2015 to RM10.6 billion in 2020. From this, the government is seen to be the largest software and hardware spender in 2020. Within the IT services, the banking industry would likely be the top spender in 2020 while healthcare costs are driving the growth of solutions in this sector. Other sectors with growing opportunities for the IT sector are transportation, power and manufacturing.

At the recent Asia IoT Business Platform conference organised by the EUMCCI and SEBSEAM-M, and cofunded by the EU, a panel discussion on Overcoming Resistance Adopting IoT Nationwide was held. The panellists were Abdul Karim Abdul Razak, Head of Standards Development, Malaysian Communications and Multimedia Commission (MCMC); Ridzwan Kasim, Senior Director, Standardisation Division, Standards Malaysia; Ching Choon Jeng, Head of Business Development and Partnerships, Internet of Things, Group Enterprise SingTel and Dr Gopinath Rao Sinnah, Chairman of IoT WG Malaysia Technical Standards Forum Bhd. The moderator for the event was Roberto Benetello, CEO of EUMCCI.

WHAT’S THE PROBLEM?

Panel members with Roberto Benetello, CEO of EUMCCI.

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The annual ASEAN Enterprise IoT Survey 2017 reported that 70.7% of businesses and organisations in the region are currently exploring and finding possible solutions for their organisation. The survey revealed that IoT can increase productivity levels (74.8%), reduce operational cost (68%) and improve customer relationship and engagement (61.3%). Despite this there remains three main challenges. Cost (68.9%) is one factor that is holding back businesses from adopting IoT technology. Besides this, security (56.3%) and incompatibility with legacy systems (48.2%) are other deterring factors. The situation in Malaysia


is similar. According to Benetello, while the government advocates Industry 4.0 across different industries there still remain challenges. One challenge that is inherent in both service providers and end-users is the resistance in IoT technology adoption. “The resistance in IoT technology adoption could be due to the inconsistency in the technologies and systems used by different firms, resulting in an ecosystem that is not very cost-friendly to both users and providers. Users may need to own multiple IoT devices from different platforms and providers may need to develop a different system for each market segment that they want to venture into,” he explained.

INTERNET OF HARMONY Abdul Karim concurred that there are different systems and platforms across the various verticals. “All this reflects the country’s readiness. Is the market ready? Do we have national standards?” he asked. He said it is MCMC’s role as a regulatory agent to make sure there is infrastructure readiness. Ridzwan Kasim said Standards Malaysia is developing Malaysian standards and ensuring that the standards mirror international standards. A similar situation was seen in Singapore. Ching Choon Jeng said mobile phone penetration on the island republic stands at 1.6 million. “This means every adult is using two phones. We had too many players in the mobile payment, customers would get confused. With IoT there were also too many standards, too many vertical players. Singtel wanted to provide a single platform but it didn’t want to reinvent the wheels,” he said. The telco, working towards “perfect harmony”, has rolled out a secure and reliable network that helps businesses harness the full potential of the IoT. It has automated the application creation so that companies can create new businesses and services within minutes. “The Singtel IoT-ready network enables businesses to easily tap into our secure ecosystem without needing to build their own infrastructure,” he said. Singtel is able to offer a single bill for multiple products, customers and countries. Besides multiple standards, Dr Gopinath said interoperability is also an issue facing users. “As it stands, IoT implementation is simply not convincing enough for industry players,” he said adding that the private sector must provide feedback so that a standardisation document can be created. However, he finds that organisations are reluctant to share such things. Abdul Karim said that one way the Internet of Things can take off is with coordination and cooperation among industry players.

HEALTHIER COMMUNICATION Ridzwan, meanwhile, stressed that the aim of the exercise is not to gather company or industry standards but Internet standards. He also noted that in Malaysia the government is leading the way in developing these standards but in developed countries, the industry takes the lead. The panellists agreed that improved communication

Abdul Karim Abdul Razak.

Ridzwan Kasim.

Ching Choon Jeng.

Dr Gopinath Rao Sinnah.

between regulators, authorities and the private sector can help IoT technology adoption. Adding to this Benetello said one other factor that stands in the way of growth for the IoT in Malaysia has to do with human capital and talent. This is directly linked to the ecosystem. For the ecosystem to flourish, Malaysia needs capable data scientists, data modellers and analysts. MCMC acknowledged that there is a lack of skilled talent. “Getting the right people for IoT requires companies to have talented people for data manipulation, analytics and writing software. There are not enough people to do these jobs, not only for IoT but also digitalisation in general,” Abdul Karim said. “We need to produce people good in science, engineering and mathematics because Malaysia wants to progress to a high level value-added manufacturing. There are many opportunities for kids who are willing and enthusiastic to learn.” The government has taken steps to address this issue. In the 2017 national budget about RM250 million was allocated for future education of the National Transformation 2050 generation. This would be used to develop Science, Technology, Engineering and Mathematics (STEM) centres and improve Computer Science modules, including for Coding programmes.  EUMCCI REVIEW

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PRIVATE SESSION AIDS WOULD-BE INVESTORS

On the sidelines of the Asia IoT Business Platform event, EUMCCI organised a private information session with the Trade Mission and selected stakeholders. The aim of the session was to aid the six companies that exhibited under the EU banner at the trade fair that ran concurrently with the event. Presenters at the private information session were Muhammad Azrul Abdul Hamid, External Expert of “Southeast Asia IPR SME Helpdesk”; Jesse Chooi, Head of Research and Advisory, Investment and Industry Development division of MDEC; Helmi Halim, Senior Director and Head of Corporate Market Strategies, MIMOS Berhad (which is under the purview of the Ministry of Science, Technology and Innovation) and Vinothan Tulisinathzan, Senior Assistant Director, FDI Division, MIDA.

DRIVING INNOVATION

“WE ARE NOW LOOKING AT BUILDING THE ECOSYSTEM. CURRENTLY THERE IS NO ECONOMY OF SCALE TO TALK ABOUT. BUT WITH A COMMON SERVICE PLATFORM, TELCOS ARE STARTING TO BUILD THEIR NETWORK TO SUPPORT THE INDUSTRY.” Helmi Halim

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Helmi Halim said Malaysia wants to progress into a regional IoT development hub. In order to do this, it must create natural ecosystems to enable the proliferation of use and the industrialisation of IoT as a new source of e-growth. Part of MIMOS’ role is to help companies and industries to digitise their businesses. It does this by strengthening technopreneurs such as SMEs and startups via sandbox exercises, and aligning them to the national initiatives of open community data. Helmi said MIMOS will continue its work of creating awareness on IoT technology. “We are now looking at building the ecosystem. Currently there is no economy of scale to talk about but with a common service platform, telcos are starting to build their network to support the industry. Additionally, the sandbox process will help accelerate the creation of the ecosystem. “In general people do not see IoT as a solution to efficiency and cost. Instead people identify IoT with sensors. The sandbox can fix this.”


IPR STRATEGIES

“MALAYSIA’S IP LEGAL SYSTEM IS IN LINE WITH INTERNATIONAL STANDARDS, AND IS A MEMBER OF MANY INTERNATIONAL IP TREATIES.” Muhammad Azrul Abdul Hamid

Muhammad Azrul said the Helpdesk’s free services for European SMEs include confidential advice and training on IP issues including patents, trademarks, copyrights, licensing and dealing with counterfeiting. Some key sectors in Malaysia requiring particular IP attention include telecommunication equipment (mobile phones), apparel, movies and software. He briefed the participants on Malaysia’s IP legal framework compared to international standards. “Malaysia’s IP legal system is in line with international standards, and is a member of many international IP treaties,” he said. Where copyrights are concerned, he said protection is not permanent. The Malaysian Copyright Act grants copyright protection during the life of the author plus 50 years after his or her death. For unpublished works, copyright protection lasts for 50 years. Participants also learned that patent protection in Malaysia lasts for 20 years from the date of filing. The term of a utility innovation certificate is ten years from the date of application and this term is extendable for another two consecutive five-year terms by filing a formal request for extension.

OPPORTUNITIES FOR INVESTORS

“THE GOVERNMENT HAS ALLOCATED RM245 MILLION WORTH OF MATCHING GRANTS IN BUDGET 2018 TO ALLOW BUSINESSES TO UPGRADE TO SMART MANUFACTURING FACILITIES. FURTHER TO THIS, SHORTAGE OF CHEAP OR LOW-SKILLED LABOUR IN THE LOCAL MANUFACTURING SECTOR WILL PROMPT INDUSTRY PLAYERS TO TURN TO NEW DISRUPTIVE TECHNOLOGIES TO MITIGATE THE PROBLEM.” Jesse Chooi

Jesse Chooi said the four biggest verticals for opportunities offered to investors by Malaysia are transportation, power, manufacturing and healthcare. He elaborated on several low-power wide-area network initiatives such as the country’s first low-power long-range (LoRa) wireless protocol network, the Smart Traffic Management System, the City Brain initiative and the Integrated Fire Detection Solution. Several vibrant startups are also investing in IoT and making headways in the local ICT scene. Companies such as Lockswitch and plantOS are venturing into security and smart farming categories respectively, while FAVORIOT, a middleware platform, supports integration of data from sensors and actuators on the internet. Despite these successes there are a few challenges facing the IoT market such as cybersecurity threats and a lack of technical standardisation, lack of ICT adoption by SMEs, and network availability and quality. Last year, mobile penetration reached 131.8%. Chooi said with the increase in the number of mobile users in urban areas, network congestion can occur with the proliferation of IoT devices. Even with these challenges, he said sophisticated consumers are driving IoT demand in Malaysia. Industry 4.0, the Smart City initiatives and insurance telematics are pushing the boundaries of IoT competitiveness. “The government has allocated RM245 million worth of matching grants in Budget 2018 to allow businesses to upgrade to Smart Manufacturing facilities. Further to this, shortage of cheap or low-skilled labour in the local manufacturing sector will prompt industry players to turn to new disruptive technologies to mitigate the problem,” he said.

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WHY MALAYSIA?

The Malaysian Investment Development Authority (MIDA) is the main government agency responsible for the promotion of investments in the country. “MIDA is the first point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia,” said Vinothan Tulisinathzan. He said the 11th Malaysia Plan (2016-2020) identifies three catalytic subsectors, namely chemical, electrical and electronics, and machinery and equipment, while two subsectors of high potential growth, namely aerospace and medical devices have been identified to drive the growth of the manufacturing sector. "There are ample investment opportunities in the manufacturing sector for EU companies. To achieve a high-income status, Malaysia must attract high-tech based, capital intensive and knowledge-driven industries,” he said. “Here is where Industry 4.0 comes in. Areas such as electrical and electronics, machineries, smart logistics and ICT services and support are vital to this growth. Connectivity, decentralisation and autonomous are fundamentals that can make Industry 4.0 a success for the nation.” He acknowledged that IoT deployment in the country is still at an early stage but Malaysia is seeing steep growth in the category. “For example, BMW Group Malaysia last May opened the door to its new Regional Parts Distribution Centre. It is a pioneer in adopting IoT technology in Malaysia,” he said. Vinothan also pointed out that Malaysia offers some attractive incentives such as business owners can apply for the Pioneer Status to enjoy tax exemption on their income ranging from 70-100% for a period of five or ten years. 

“MIDA IS THE FIRST POINT OF CONTACT FOR INVESTORS WHO INTEND TO SET UP PROJECTS IN THE MANUFACTURING AND SERVICES SECTORS IN MALAYSIA.” Vinothan Tulisinathzan

Malaysia

YOUR PROFIT CENTRE IN ASIA

Malaysia is a vibrant economy. Talk to MIDA and discover how Malaysia can be your Profit Centre in Asia. For more information, please visit www.mida.gov.my or e-mail to investmalaysia@mida.gov.my

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st

Pro-Business Government

Young, Trainable and Educated Labour Force

Liberal Business & Investment Environment

Sound Banking System

Political and Economic Stability

Quality of Life

Follow us on mobile apps & social media

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IP Protection

Well-Developed Infrastructure/ Connectivity

Good Track Record

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nd

“Most Attractive Emerging Market in Asia”

“Ease of Doing Business within ASEAN”

(Bloomberg’s Emerging Market Scorecard, 2018)

(World Bank’s Doing Business Report, 2018)

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nd

“Global Competitiveness among ASEAN Countries” (World Economic Forum’s Global Competitiveness Report, 2017/2018)

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“Global Offshoring Destination” (A.T. Kearney Global Service Location Index 2017)


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EU DAY TALENT ROADSHOW & CAREER FAIR PULLS IN STUDENTS The inaugural EU-Day Talent Roadshow and Career Fair 2018 – a platform for businesses and talent to converge – will likely be the first of many. Held at three locations, both companies and students gave it the thumbs up.

W

hile Malaysia has emerged as a regional hub for some European businesses, foreign companies report that sourcing the right talent has become an issue. “We are seeing a bit of a gap – we don’t find enough talent,” H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, told the EUMCCI Review. The mismatch stems from a number of factors. Among them, places of higher learning churn out bright students who may not be well-equipped to tackle the real challenges at work. “Companies need to convey to places of higher education the requirements and needs of the working world so that universities can adapt their curriculum to suit current needs,” added H.E. Maria Castillo who was the guest of honour at the EU-Day Talent Roadshow and Career Fair 2018 in Taylor’s University recently. “We are

placing businesses and students together. This is the heart of what we are doing here today,” she said, adding that the career fair must also facilitate a continuous dialogue so that talent will remain relevant to companies. At the Talent Roadshow, organised by the EUMCCI and SEBSEAM-M, and co-funded by the EU, Malaysian undergraduate and graduate students from three major universities had the opportunity to get acquainted with top European companies. The event saw up to several European companies setting up booths in Universiti Sains Malaysia, Taylor’s University Malaysia and University of Malaya. Students had the chance to meet recruiters from these companies which offered job and internship opportunities. Some of these companies carried out employer branding to let students know more about the company. The fair also saw a number of 20-minute ‘career talks’. These sessions

L-R: Jari Niemi from the Malaysian Finnish Business Council, H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, Sandy Tan, Director of Career Services – Taylor's University and Prof JS Perry Hobson, Pro Vice Chancellor – Global Engagement, Taylor’s University. Students gather at a booth as they are facilitated by an exhibitor.

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H.E. Dr. Michael Postl, Austrian Ambassador to Malaysia (left) with Daniel Bernbeck and Professor Ir Dr Abdul Aziz (second from right) share a light moment with an exhibitor.

Daniel Bernbeck, Executive Director, Malaysian-German Chamber of Commerce and Industry and board member of EUMCCI (third from left), H.E. Dr. Michael Postl, Austrian Ambassador to Malaysia (second from right) and Professor Ir Dr Abdul Aziz, Dean, Faculty of Engineering, University of Malaya (right) pose with staff of Tencate.

Staff from Siemens Malaysia Sdn Bhd take the time to promote the company to students.

A participant from BMW attends to a student in Taylor’s University.

WHAT SOME OF THE EXHIBITORS SAID • JOWAT GROUP is a global

manufacturer and supplier of industrial adhesives for applications in various

At the BMW booth.

industries. At the fair, Negeri Sembilan-based Jowat Manufacturing (SEA) Sdn Bhd was keen to meet chemical and mechanical engineering students. Sow Cher Wai, HR Manager, was happy with the student turnout. He took to the stage during the afternoon

session and spoke on ‘The Dos and Don’ts during an Interview’.

• SIEMENS is a technology

powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for over 170 years. Susha Rubene HR Talent Acquisition, Siemens Malaysia Sdn Bhd said the company welcomes interns in finance, accounting and engineering.

• TECHNIPFMC is a global

Sow Cher Wai, HR Manager of JOWAT, speaking on ‘The Dos and Don’ts during an Interview’.

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Infineon Technologies encourages students to apply for its internship programme.

leader in subsea, onshore/ offshore and surface projects. Through innovative technologies the company offers solutions for developing oil and gas resources. TechnipFMC Malaysia HR Executive Nur Awatif said the company had openings in its internship programs. Students were encouraged to drop their

CVs at the company’s website. Woo Soo Kheong, Senior Process Engineer, said he was happy to be part of the EU-Day Talent Roadshow in University of Malaya. He joined Technip after the company did a recruitment drive when he was a student in the university several years ago.

INFINEON TECHNOLOGIES, a producer of semiconductor solutions, has 37,500 employees worldwide. Its Malaysian operations, based in Melaka, sees the full production value chain and end-to-end semiconductor manufacturing process. Its portfolio ranges from technologies used in the automotive industry to power management, multimarket, chipcards and security. Intan Senin from the staffing section said the company saw good response from students at


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STMicroelectronics staff at their booth.

TechnipFMC staff took the opportunity to promote the company at the talent fair.

gave students tips on attending interviews, engineering and production trends, and industry innovation. Prof JS Perry Hobson, Pro Vice Chancellor – Global Engagement, Taylor’s University, in his welcoming speech, said the university is taking steps to get its students to become more international. Students are exposed to ‘disruptions’ with new technologies aimed at making them more competent in today’s job market. Jari Niemi from the Malaysian Finnish Business Council, who was at the career fair in Taylor’s, said that there are about 2,000 companies in Malaysia with relations to Europe. It is imperative for today’s workforce to be open to different cultures and to be able to adapt to different working environments. “While good grades are important, companies are also on the lookout for talent that have a good understanding of the region, with a good grasp of the English language as well

the fair, many of whom enquired about the company’s internship programme. Infineon has openings in Engineering, IT and Business Administration.

HAUNI is a supplier of technologies, and technical and consultancy services for the international tobacco industry. The company is the founding member of the Koerber Group, a leading international technology group with 12,000 employees worldwide. Jnee Ng Huey Chen, HR Manager, Hauni Malaysia Sdn Bhd, said several students have registered with the company indicating their interest in working for the company. “We are looking for students with project management knowledge, someone who has the experience to plan, coordinate and execute projects,” she said.

• MÜHLBAUER specialises

in high-tech equipment and automisation solutions for the semiconductor backend industry. Racheal Lim, Human Resources Manager, said the company takes in interns throughout the year. “We want students in the fields of mechanical, electrical and electronics and mechatronics. We are also offering internship programmes for business management and international business.” The company offers the Malaysian Skills Advanced Diploma in Mechatronics. Upon completion of the programme students will be selected for a three-and-a-half-year apprenticeship contract.

• STMICROELECTRONICS, a

French-Italian electronics and semiconductors manufacturer provides a spectrum of

as European languages. It’s not only about technology,” he stressed. Students, he explained, may have the theoretical skills but they do not have the sufficient practical skills needed to succeed in the workforce. Hence, cooperation between places of higher learning and companies is necessary. He said that although the education system in Malaysia has developed a lot, it still has some catching up to do as the workplace is constantly upgrading itself. “It is not enough for graduates to come out of school with all As. They must also be committed to lifelong growth and self-development.” Meanwhile, at the University of Malaya, guest of honour H.E. Dr. Michael Postl, the Austrian Ambassador to Malaysia, urged students to engage with the EU companies that were present at the fair. “A face-to-face meeting is important. This is an opportunity for you, grab it,” he said. Daniel Bernbeck, a board member of the Chambers and Executive Director, Malaysian-German Chamber of Commerce and Industry, was impressed with the setup of booths in University Malaya. “It is important that we offer this platform for industries to meet students and vice versa,” he said. While there is no shortage of talent, he stressed that graduates must improve on their skills level. In this light, internships, practical stints as well as apprentice programmes are key. One plus point the country offers is its multi-ethnic workforce. This should be embraced and used to improve working life, he said. The overall atmosphere at the three universities were positive. The teams from the EU-Malaysia Chamber as well as the places of higher learnings felt that this initiative should be the first of many. “For the future initiative we need to expand to more than this year’s three locations,” said H.E. Maria Castillo Fernandez. 

electronics applications with innovative semiconductor solutions for Smart Driving and the Internet of Things. Its plant in Muar has grown from labour-intensive operations to the current state-of-the-art manufacturing facility. Kasturi Chandran, HR Manager, STMicroelectronics Sdn Bhd, said the company was open to hiring fresh graduates as well as interns. At University Malaya she met quality students in the Engineering line.

TENCATE GEOSYNTHETICS is a multinational company with more than 60 years of global leadership in the geosynthetics industry. Through the processing of synthetic raw materials, TenCate develops, manufactures and provides innovative geosynthetics and industrial technical textiles worldwide.

In Asia, TenCate Geosynthetics is headquartered in Malaysia with manufacturing facilities in Malaysia and China. Lim Chio Choon, HR Manager, said besides promoting the company, it welcomes mechanical and electrical engineering students as interns, and civil engineers to apply for a position.

ROCHE Roche is a pioneer in pharmaceuticals and diagnostics focused on advancing science to improve people’s lives. At the roadshow the company was hoping to pair up with IT and Finance students. Christina Anthony, from the Talent and Acquisition department, said the company is interested in participating in other career fairs with the Chambers. It can hold mock interviews that can benefit the students. EUMCCI REVIEW

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FINDING THE RIGHT TALENTS FOR MALAYSIA’S FUTURE For Malaysia to realise its vision of becoming a developed nation, it must address the problem of talent shortage. The aerospace industry, for example, is expecting to grow, but without the right workers, Malaysia may miss the opportunity to make a mark in this industry.

A

World Bank report cited by The Edge newspaper article titled “Industry Academia Roundtable: Filling the Talent” pipeline for the E&E sector said that 62% of Malaysian firms face difficulty in finding talent with the right skills, while 48% of companies have identified a lack of talent as a constraint for future growth. Ever since the announcement of the Economic Transformation Programme, Malaysia has been in a race to produce a highly skilled workforce. The former Human Resources Minister Datuk Richard Riot was reported in a newspaper as saying that Malaysia is on the right track to produce sufficient skilled workers by 2020 as the country strives to reach a high-income status nation by then. He pointed out that in 2015, only 28% or 3.4 million people out of the 14.8 million workforce in Malaysia were considered skilled. “But in the last two years, we managed to

Naguib Mohd Nor, Managing Director of Strand Aerospace Malaysia.

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raise it to 31% of the workforce presently. The Government aims to increase it to 35% or 5.3 million of the workforce by 2020 in order to be a developed nation,” he said. The Human Resource Development Fund introduced a scheme known as RPEL (Recognition of Prior Experimental Learning Scheme) in 2009 especially for workers in the Bottom 40 (B40) income group. This training programme gives a diploma to skilled workers who have no paper qualification, thus enabling them to join the ranks of skilled workers. This recognition enables them to receive better pay which reflects their skills and experience.

INDUSTRY ACADEMIA COLLABORATION (IAC) IAC has been adapted in many industrialised countries for decades, but in Malaysia it was formally launched in April 2015, a collaborative effort of the Malaysia Investment Development Authority, Ministry of Education and Talent Corporation Malaysia Bhd. IAC’s aim is to “bring employers into universities to hone the technical and soft skills of industry-ready graduates.” IAC gives the opportunity for “employers and universities to work together to address talent policies via both short-term and long-term strategic interventions to accommodate both employers’ different talent policies and universities’ challenges”. On its website, TalentCorp states that IAC currently collaborates with 21 employers and 13 higher learning institutions in two main sectors, Electrical & Electronics and Global Business Services.

AEROSPACE INDUSTRY EXPERIENCE Not many people realise that the aerospace industry in Malaysia is more than 30 years old. Malaysia is currently home to some important local and international players. Some of the international companies that have a presence in Malaysia are Strand Aerospace Malaysia, AgustaWestland, Rolls Royce, RUAG Aviation, Airfoil Services and Safran to name a few. Naguib Mohd Nor, Managing Director of Strand Aerospace Malaysia, in an interview to the website FMT in August 2017, said that Malaysians underestimate the aerospace industry in the country, lamenting that most people think it involves only maintenance, repair and overhaul services. The Malaysian aerospace industry designs and builds key components of some of the world’s most advanced civilian and military aircraft, he revealed. Strand Aerospace for instance, designs components for aircrafts like the Airbus A320, a passenger aircraft used by Air Asia and other airlines. Naguib, who is also the President of Malaysia Aerospace Association, said that the nature of this industry is that it is highly regulated. “There’s only one standard, which everyone has to meet and meeting this standard requires a lot of expertise and experience,” he said. “Malaysia Aerospace Industry Association (MAIA) and the National Aerospace Industry Coordinating Office (NAICO) are working with agencies such as MARA to address the problem of skilled workers in the industry,” he told EUMCCI Review. NAICO is a unit under the Ministry of International Trade and Industry.


The aerospace industry is also involved with the IAC. “There have been multiple programmes such as the Graduate Employability Training Scheme by MARA and the IKTISAS programme by the Selangor Government. These results have met the immediate requirements, but a longer term strategic solution is needed,” he added.

THE EXPECTED BOOM IN THE AEROSPACE INDUSTRY A ready and steady supply of highly skilled workers is needed, especially since Malaysia has an opportunity to get a large size of the pie in the billion-dollar aerospace industry. Asia Pacific is expected to play a huge part in the aerospace industry as it

will account for 40% of the Airbus global market, thanks to Air Asia being Airbus’ largest A320 customer, said Naguib. He urged the relevant authorities to have a “greater momentum in order to offer a timely response to the emerging industrial requirements”. Strong leadership is required to make the right decisions to address this issue if Malaysia wants to realise its dream of becoming an aerospace hub by 2030. The Malaysian Aerospace Council (MAC) works closely with NAICO and MAIA to put forward its ideas and suggestions to the Government. So far the Government has been responsive to the needs of the aerospace industry. Strong leadership and urgency are needed to address this situation. 

SKILLED TALENT IN SHORT SUPPLY IN ASEAN On 15 May 2018, the CIMB Asian Research Institute organised a roundtable titled, ‘Closing the Talent and Skills Gap in ASEAN’ in collaboration with the ASEAN Business Club (ABC). Chaired by Tan Sri Dr Munir Majid, the panel of speakers comprised Dato’ Hamidah Naziadin, Group Chief People Officer from CIMB Group; Shareen Shariza Dato’ Abdul Ghani,CEO, TalentCorp Malaysia; Soon Ghee Chua, Partner at AT Kearney and head of Southeast Asia; and Dato’ CM Vignaesvaran Jeyandran, CEO, Human Resources Development Fund (HRDF) of Malaysia. The roundtable highlighted that the lack of skilled talent and the serious skill divide in ASEAN is a worrying trend and will have far reaching repercussions for the economy in the future if it is not addressed quickly. The report from the World Economic Forum states that ASEAN is facing a serious skill divide: 55% of Singapore workers are highly skilled, followed by Malaysia at 25%, Philippines at 24% and Thailand at 14%. Highly skilled workers in Vietnam, Indonesia, Myanmar, Laos and Cambodia range between 4% and 10% only. Some of the solutions that were put forward to close the skill divide gap and to improve the number of skilled workers in ASEAN were: • It is crucial for the government to introduce education reforms at the national level to produce the workforce that is suitable for Industry 4.0. Encouragement and importance must be given to the study of science, so that students can pursue this at tertiary level. Science students are the pipeline to workers in science, technology, engineering and mathematics (STEM). Quality of teachers has to be improved at school level so that the quality of students who enter the university will be good. • Intra-ASEAN talent mobility, especially for skilled professionals, must be implemented. ASEAN Economic Community (AEC) envisions free movement of skilled labour within the bloc. Unfortunately, this has not been realised yet. “Only with true intra-Asean talent mobility, especially for skilled professionals, will ASEAN be able to fully optimise its human capital potential,” said Tan Sri Dr Munir who chaired the discussion.

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NETWORKING COCKTAIL SESSION

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UMCCI recently hosted a networking cocktail session which brought together European Union exhibitors who took part in the 21st Southeast Asian Healthcare-Pharma & Cleanroom show held at the Kuala Lumpur Convention Centre from 14 to 16 May. The EU Pavilion featured exhibitors from Finland, France, Germany, Latvia, Sweden and UK who showcased their latest products and technologies related to healthcare. More than 50 people including H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, several EU ambassadors, EU Trade Counsellors and exhibitors attended the networking session at the EU Pavilion. H.E. Maria Castillo Fernandez, accompanied by Roberto Benetello, CEO of EUMCCI and other VIPs, also visited the EU exhibitors’ booths. 

MEMBERS’ APPRECIATION EVENING

T

he EUMCCI held its annual year end evening of appreciation for its members and stakeholders at the Sheraton Imperial Hotel in Kuala Lumpur in December. The event was attended by about 80 people who enjoyed the cocktails and fabulous spread of cuisine while mingling and networking with one another. Lucky draws were also held. The main sponsor for the event was Jet Airways and other sponsors were Hammam, Avis and Sheraton Imperial Hotel. 

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Corporate Partner News TAN CHIA MIN & PARTNERS MALAYSIAN BOUTIQUE LEGAL FIRM WITH A GLOBAL PERSPECTIVE Tan Chia Min & Partners, a Malaysian boutique law firm, provides an extensive range of legal and commercial services to local and international corporations with business interests throughout this region. Its principal service area includes Merger & Acquisitions, Corporate Matters, Franchise Law, application for Franchise Licence and & Corporate Litigation cases. Tan Chia Min & Partners is a legal firm with a global perspective that offers customised, practical and high quality legal solutions. This is achieved via three key management principles: recruiting, developing and retaining the best legal professionals to maintain the highest standard of legal services. The firm endeavours to achieve a high degree of business efficiency by maintaining a productive business operation that is capable of continuously generating good quality services for its client. Lastly and most importantly, it observes a high standard of professionalism, integrity and ethics that is expected of the legal profession. It has excellent research facilities for its legal team. Technology is extensively used to improve the quality of legal services it provides to its clients. For instance, the firm’s lawyers have direct access to well-established international online legal research providers such as LexisNexis. It also has a large law library that houses numerous reference texts

which are constantly and consistently updated in line with the latest revisions in law. Its lawyers have a comprehensive continued legal education programme within the firm and are encouraged to attend conferences and seminars to keep abreast with the current legal issues and topics. Tan Chia Min & Partners is also affiliated with the Association of Service Industries in Taiwan to provide legal services and assistance to overseas clientele (which are based in Malaysia) on various legal issues, which they encounter or could potentially encounter in Malaysia.

NEW GM AT DOUBLETREE BY HILTON KUALA LUMPUR Hilton Worldwide recently appointed Stephen Richard Magor as the General Manager of DoubleTree by Hilton Kuala Lumpur. As the new General Manager, he will support Jamie Mead, Regional General Manager for Malaysia, in overseeing all aspects of the 538-room hotel’s operational management. Magor was the General Manager of DoubleTree by Hilton Shenyang, China, prior to his appointment in Kuala Lumpur, and he has more than 30 years’ industry experience having worked in the Middle East, Asia Pacific and Europe. During his tenure at Shenyang, Magor’s relentless drive for achievement had created a service culture at the property that improved overall guest experience, and demonstrated his leadership in rallying his team in achieving results to become the market leader in terms of occupancy and popularity. Magor, who began his career in the hospitality industry as a chef, is expected to continue DoubleTree by Hilton's CARE culture – embodying strong and vibrant tradition of simple, timeless values which vulcanise into the brand’s proud way of doing good business. The CARE culture has been the key behind the formulation and implementation of strategies to deliver product and service excellence crucial to enhancing the property's reputation as a leading accommodation of choice. On his appointment, Magor said, “I look forward to

leading the team at DoubleTree by Hilton Kuala Lumpur. I’m delighted and privileged to continue playing an influential role in the development and look forward to many more fulfilling years of service with the team and reinforce our impressive track record by exceeding guest expectations and offering unique, world-class service for many years to come. I’m ready to take on the responsibility of leading the vision, growth and development of the hotel.”

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New Corporate Partners

GARDEN INTERNATIONAL SCHOOL

REERACOEN MALAYSIA SDN BHD

GIS is one of the oldest and most distinguished schools in Malaysia with two campuses: Primary and Secondary School in Mont Kiara, Kuala Lumpur and an Early Years Centre in Desa Sri Hartamas – providing British-based education for students from 3 to 18 years of age. Accredited by the Council of International Schools, GIS has been teaching the National Curriculum of England and Wales with modifications designed to meet the needs of international students. With over 2,000 students, GIS is also the biggest private co-educational school in Malaysia.

Reeracoen, a subsidiary of Japan-based NEO Career Co. Ltd., is a professional recruitment advisory with a service network encompassing Singapore, Thailand, Indonesia, Philippines, Vietnam, Taiwan, China, Hong Kong and India. Reeracoen Malaysia provides support services for fresh graduates and professional candidates to meet the recruitment needs of Malaysian companies through its domestic branches situated in Kuala Lumpur and Penang.

Person-in-charge: Mr. Mark Ford, Headteacher Address: 16, Jalan Kiara 3, Off Jalan Bukit Kiara,

50480 Kuala Lumpur. Tel: +603 6209 6888 Email: admissions@gardenschool.edu.my Website: www.gardenschool.edu.my

Person-in-charge: Mr. Jordache Wee, Regional Business Development Address: Suite 11.02, Level 11, Menara Weld, No. 76, Jalan Raja Chulan, 50200 Kuala Lumpur. Tel: +603 2020 1885 Email: jordache.wee@reeracoen.com.my Website: www.reeracoen.com.my

SWISS MALAYSIAN BUSINESS ASSOCIATION

JAS WORLDWIDE (M) SDN BHD

The Swiss Malaysian Business Association (SMBA), a non-profit making organisation, was set up in May 2000 to benefit Swiss or Malaysian companies or individuals having an interest to promote business between the two countries. The close and fruitful business ties between the two countries date back to 1887 and was spearheaded by the Swiss trading firm, Diethelm & Co. Another well-known Swiss company, NestlĂŠ, began its operations in Malaysia as the Anglo-Swiss Condensed Milk Company in Penang in 1912. In 1939 Zuellig Pharma established a subsidiary in the Peninsula as a step towards its regional expansion in Southeast Asia. Currently, more than 80 companies with Swiss equity are operating in Malaysia. Among them are Nestle, DKSH, Roche, ABB, Zuellig Pharma and SR Technics.

Established in 2005 in Kuala Lumpur, JAS Malaysia is a privately owned international freight forwarder and logistics provider. The company offers state-of-the art door-to-door air and ocean logistics services, with vertical expertise in various industries such as aerospace, automotive, electronics, EPC projects, fashion, government logistics, oil & energy, and telecommunications. JAS also provides a diverse range of services, including warehousing and distribution, air and sea chartering, brokerage, marine insurance, in-house innovated supply chain software and logistic engineering consulting, among others.

Person-in-charge: Mrs. Aileen Lim Chan Address: B-5-8, Plaza Mont Kiara, 50480 Kuala Lumpur. Tel: +6012 742 8799 Email: info@smba.org.my Website: https://smba.org.my/

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Person-in-charge: Mr. Mervin Lin, Managing Director Address: A-36-1, Tower A, Menara UOA Bangsar,

No. 5, Jalan Bangsar Utama 1, 59100 Kuala Lumpur. Tel: Email: mervin.lin@jas.com / bob.tan@jas.com Website: www.jas.com


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New Corporate Partners

OAKWOOD

ROUNDTABLE ON SUSTAINABLE PALM OIL

Oakwood Hotel & Residence Kuala Lumpur is located on Jalan Ampang, stone’s throw away from KLCC and Bukit Bintang areas. The Hotel offers 71 Deluxe rooms,155 OneBedroom Deluxe Apartments, 25 One-Bedroom Premier Apartments and one Two-Bedroom Apartment. There are also laundry facilities and high speed internet provided for the convenience of the guests. Coffee & tea making facilities and safe deposit boxes are in every room with the addition of a kitchenette in the Deluxe Apartments. The Premier Apartments have a full-sized fridge and stove. Our core business is corporate housing for the expatriate staff for mid to long-term stays. There are also five meeting rooms to host various types of events ranging from seminars to cocktails. The capacity is from 24 to 100 persons and the catering team is always on hand to deliver discreet and efficient service.

Roundtable on Sustainable Palm Oil (RSPO) is a not-for-profit, international membership organisation that unites stakeholders from the 7 sectors of the palm oil industry to develop and implement global standards for sustainable palm oil. The seven sectors are oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/ investors, and environmental and social non-governmental organisations (NGOs). The RSPO has developed a set of economic, environmental and social Principles and Criteria (P&C) which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimise the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

Person-in-charge: Mr. Bennet Chang, General Manager Address: Oakwood Hotel & Residence Kuala Lumpur,

222, Jalan Ampang, 50450 Kuala Lumpur. Tel: +603 2720 3888 Email: general.residence-kualalumpur@oakwood.com Website: www.oakwoodasia.com

Person-in-charge: Ms. Gaya Velayutham Address: A-37-1, No. 5, Jalan Bangsar Utama 1,

UOA Bangsar, 59000 Kuala Lumpur. Tel: +603 2302 1500 Email: gayathri.velayutham@rspo.org Website: www.rspo.org

THE DATAI LANGKAWI

BANYAN TREE KUALA LUMPUR

The Datai Langkawi is a luxury beachfront resort located in Datai Bay, Langkawi which was rated by National Geographic as one of the top 10 beaches in the world. The resort features stylish vistas endowed with a wealth of wildlife of the surrounding ancient rainforest, offering the perfect escape for guests to refresh and reconnect with nature.

Set amidst the heart of Kuala Lumpur's Golden Triangle, Banyan Tree Kuala Lumpur offers a modern city sanctuary with tranquil ambient, iconic towers view and signature local experiences. Opening in June 2018, the urban oasis features 55 rooms and suites with a contemporary flair. It is also home to the award-winning Banyan Tree Spa and four exciting dining venues including a rooftop bar and an exquisite seafood and grill restaurant.

Person-in-charge: Ms. Peggy Foong Address: Jalan Teluk Datai, 07000 Pulau Langkawi, Kedah Darul Aman. Tel: +604 9500 500 Email: reservations@dataihotels.com Website: www.thedatai.com

Person-in-charge: Mr. Anders Dimblad Address: 2, Jalan Conlay, 50450 Kuala Lumpur. Tel: +603 2113 1888 Email: kualalumpur@banyantree.com Website: https://www.banyantree.com/en/malaysia/

kuala-lumpur

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Review

YOUR PARTNER FOR EU-MAL AYSIA BUSINESS

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VOL 6 / NO 1 / 2018

WM RM8.40 / EM RM10.60

WINNING STORIES:

EUROPA AWARDS FOR SUSTAINABILITY 2017 Winners share their game plans to address sustainability challenges Stemming the Flow of Illicit Trade

Taxation policies, law enforcement & consumer awareness are ways to curb it

Gig Economy, The Future of Work

Alternative work models replacing full-time traditional employment in Malaysia's metropolitan areas

IoT In Malaysia

IoT trend creates opportunities in a wide market segment spectrum


Review

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CONTENTS 03 04

From The Chairperson Europa Awards For Sustainability 2017

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The Winning Stories, Europa Awards For Sustainability 2017

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KPJ Healthcare Berhad, Malaysia’s Leading Provider of Private Healthcare Services

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GIG Economy, The Future of Work

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Nordic Day

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Europe Day 2018

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Securing The Cyber Space

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Stemming The Flow of Illicit Trade

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Achieving a Successful Digital Economy

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26 IoT In Malaysia, Lots of Room for Expansion

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EU Day Talent Roadshow & Career Fair Pulls in Students

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Finding The Right Talents for Malaysia’s Future

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Networking Cocktail Session Members’ Appreciation Evening

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Corporate Partner News

38 New Corporate Partners

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VOL 6 / NO 1 / 2018


From The Chairperson

The EUMCCI welcomes the smooth democratic change in government. This speaks volumes for the people of Malaysia. As an organisation that believes in the principles of rule of law and free markets, we welcome this new government’s promise of governance and transparency. We look forward to greater transparency of policies and decision-making as this is important for a business friendly Malaysia. We agree with the government’s proposals to improve governance and strengthen Malaysia's public institutions. We welcome the government’s pragmatic plan for its first 100 days in office, which is a responsible approach to managing the Malaysian economy. This is an important milestone for Malaysia and we look forward to continuing our business and investment in Malaysia. TAN SRI REBECCA FATIMA STA MARIA Chairperson EU-Malaysia Chamber of Commerce and Industry (EUMCCI)

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Feature

EUROPA AWARDS FOR SUSTAINABILITY 2017 The awards were a standing ovation to sustainability & empowering business excellence recognising the efforts of businesses in giving back to the Malaysian community.

T

he Europa Awards for Sustainability 2017 saw seven leading Malaysian and European companies receive awards for their excellent social, environmental and governance contributions in Malaysia. It was aimed at identifying, qualifying and promoting business excellence in Malaysia in line with the European Union’s sustainable development values. Organised by the EUMCCI, the Awards Gala Night was attended by more than 500 guests. It was officiated by Datuk Isham Ishak, Deputy Secretary General (Trade) of the Ministry of International Trade and Industry (MITI) who represented Dato’ Seri Ong Ka Chuan, Second Minister of MITI. Datuk Isham who delivered Dato’ Seri Ong’s speech said that the successes of businesses in the future would depend on being inclusive and sustainable. “In order to achieve this, the business community and the industry need to ingrain sustainability as a guiding principle in the many choices that each company or organisation makes every day. ”The Europa Awards for Sustainability is a reflection of

Group photo of winners, VIPs and guests.

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efforts incorporating sustainability initiatives into the supply chain for the long term benefit of the Malaysian society and economy,” he added. The event was also graced by Her Excellency Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, who said that EUMCCI’s efforts in addressing key sustainability issues had been instrumental in pushing for more corporate responsibilities through various sectors. “It is important that more and more companies in Malaysia factor sustainability into their overall project and work plans,” added H. E. Maria Castillo. “This is a proud achievement indeed which shows that the Europa Awards have made a substantial initial mark. An increasing number of companies want to show their commitment and achievements in sustainability because they are convinced that this is the right strategic direction to create competitive advantage in the years to come,” said Roberto Benetello, Chief Executive Officer of EUMCCI. The Awards Gala Night was energised by a mesmerising


VIPs and guests standing to attention for the national anthem.

Datuk Isham Ishak, Deputy Secretary General (Trade) of MITI receiving a token of appreciation from Roberto Benetello, CEO of EUMCCI. Looking on are H.E. Maria Castillo Fernandez, EU Ambassador and Head of Delegation to Malaysia (left) and Tan Sri Rebecca Sta Maria, Chairperson, EUMCCI.

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Feature musical performance by the Young Malaysians Go Classic, a 90 piece orchestra and a 48-member choir of young nonprofessional Malaysian musicians. The young musicians enthralled the audience by playing classical tunes including Disney movie favourites such as Mulan; Writings on the Wall, Ameno, Titanic, Pirates and Beethoven’s Ode to Joy. The Europa Awards winners were selected through a stringent process by a panel of judges led by KPMG Malaysia, who reviewed the more than 100 nominations from about 80 local and international companies operating in Malaysia. The awards seeks to recognise companies that have shown exemplary business excellence in the field of sustainability as well as having contributed to the long term benefit of the Malaysian society and economy. The Europa Awards featured five categories with seven awards – Best Sustainability Reporting, Best Innovation in Sustainability, Best Social Impact (awarding large companies & SMEs), Best Environmental Impact (awarding large companies & SMEs), and Best Sustainability Leader (awarding an individual). The Awards were hosted in collaboration with other EU bilateral chambers and MATRADE. The main sponsors for this gala event were Siemens and Sime Darby Group, while other sponsors included Carlsberg Malaysia, Landskap Malaysia and Arla Foods. Supporting partners were MIDA, Hafele, MyData and EventBank. 

WINNERS OF EUROPA AWARDS FOR SUSTAINABILITY 2017 Awards Winners Best Sustainability Reporting

Sime Darby Property Berhad

Best Innovation in Sustainability

Invest Energy Sdn Bhd

Best Environment Impact

Infineon Technologies (Kulim) Sdn Bhd (Large Company)

Biotec International Asia Sdn Bhd (SME) Best Social Impact

KPJ Healthcare Berhad (Large Company)

The Lost Food Project (SME)

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Best Sustainability Leader

Dr Stellios Plainiotis

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CM

MY

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CMY

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Open for Nominations!

SUBMIT YOUR ENTRIES NOW* Award categories and more information: WWW.EUROPAWARDSMALAYSIA.EU Award Ceremony and Gala Event on

22 NOVEMBER 2018

* Terms and conditions apply.

TEL: +603 2162 6298 Platinum partners

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Supporting partner

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FAX: +603 2162 6198 CRM partner

Technical partner

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EMAIL: EVENTS@EUMCCI.COM Event partner

SEBSEAM-M partners


IGEM 2017 Highlights TOTAL PROGRAMME

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MOU & PRODUCT LAUNCH

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BUSINESS LEADS

VISITORSHIP

9.129B 34,868

EXHIBITORS

378 BOOTHS

PARTICIPATING COUNTRIES

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COUNTRIES

COUNTRY GROUP PAVILION

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MALAYSIAN STATE PAVILION

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ASEAN’S LARGEST ANNUAL GREENTECH BUSINESS & INNOVATION PLATFORM

Book a space or register as visitor at www.igem.my

7 To exhibit at EUMCCI’s EU Pavilion, call us +603 2162 6298 EUMCCI REVIEW


Cover Story

THE WINNING STORIES EUROPA AWARDS FOR SUSTAINABILITY 2017 Seven winners of the awards presented their winning game plans in driving sustainability and creating innovative technologies to address sustainability challenges.

EUMCCI recently brought together the seven winners of the Europa Awards for Sustainability 2017 in Kuala Lumpur, to share their winning stories and how they have impacted the community and industry with their innovative and sustainable business models.

Group photo of winners and VIPs with Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water.

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BEST SOCIAL IMPACT: KPJ HEALTHCARE BERHAD (LARGE CIMPANY) Winner of the Best Social Impact category, KPJ Berhad is a leading private healthcare services provider in Malaysia with an extensive reach across the nation. The Group has a network of 25 specialist hospitals spread across Malaysia, 2 hospitals in Indonesia, a sizeable share in a hospital in Bangkok, one hospital in Bangladesh and a retirement resort in Australia. Rafeah Ariffin, Senior General Manager, Group Marketing & Communications, in explaining the dynamics of KPJ’s initiatives for social impact, said that KPJ is guided by its 3P model which stands for Planet, People and Profits. In relation to that, their efforts include minimising the environmental impact on the Planet; enhancing People’s quality of life and investing their Profits into community healthcare such as Klinik Wakaf. Testament to the Group’s commitment to impacting society is the Klinik Waqaf An-Nur (KWAN) initiative which is aimed at helping

BEST SOCIAL IMPACT: THE LOST FOOD PROJECT (SME) Winner of the Best Social Impact category, The Lost Food Project (TLFP) is a non-profit NGO established by Parents International Welfare Association of Kuala Lumpur (PINK). TLFP relies on the generosity of donors for funding and rallies the support of volunteers to reach out to the community. TLFP collects surplus food from supermarkets and manufacturers in Malaysia, and distributes the produce to those in need, making a difference to the community and the environment. Angelia Chin Sharpe, Vice President of PINK Malaysia, explained that this innovative initiative is premised on 3 key pillars – Rescue Food, Fight Hunger and Reduce Waste. “It all started in

the impoverished and underprivileged in urban communities by providing a chain of outpatient clinics and dialysis centres. KWAN charges patients a minimal fee of RM5 for normal outpatient treatment inclusive of medication, and RM90 for dialysis services. Patients are treated by qualified medical consultants. To date KPJ has 1 KWAN hospital and 18 KWAN mobile clinics. Starting off with a small KWAN clinic in Johor Bahru in 1998, the KWAN network has grown steadily and today comprises 1 Waqaf An-Nur hospital and 19 clinics, including 5 site clinics and 6 dialysis centres throughout Malaysia. In addition, KPJ also operates two mobile clinics, with the first in operation in Johor since 2012 and the second in Selangor since 2013. Since KWAN’s inception, the Group has successfully reached out to about 1 million patients, and contributes more than RM2million annually to support KWAN activities. Responding to a question on how KWAN has helped with employee retention and engagement, Rafeah said that the Group’s medical staff are ever-willing to lend a helping hand

and this has become part of the culture in KPJ amongst its 13,000 employees, thus culminating in high engagement and retention. To a question on how KPJ justifies its expenditure on social initiatives to its shareholders, Rafeah explained that the Group’s main shareholder is JCorp, which is very supportive of KPJ’s corporate social responsibility initiatives. “In fact, it was the President of JCorp, Tan Sri Ali Hashim’s vision that we reach out to the community in order to be a sustainable business,” she explained.

October 2015 when our founder, Suzanne, was at a local grocer and saw the grocer chopping bruised bananas for disposal. This led to us negotiating with the grocer to give us the unwanted food and find a way to distribute them to homes that actually need it,” shared Angelia. Since its first mission collecting and transporting food by volunteers’ cars, TLFP has grown and now has 3 fulltime employees, 1 warehouse, 2 trucks and an office in Kuala Lumpur. To date, TLFP has rescued 230,000kg of food, and has distributed more than 1 million meals and prevented 42,000kg of greenhouse gases from entering the atmosphere. “We have robust processes in food collection, processing and distribution as well as agreements with charities to not sell our food. Currently, more than 45 charities are receiving food from TLFP,” Angelia shared. On a question on what kind of

social impact TLFP is looking to make, Angelia said there was much work to be done and that TLFP was hoping to replicate this model in other states across Malaysia. She added that TLFP also aims to improve their processes and achieve greater efficiency in this initiative, and eventually reach out to other countries in ASEAN.

Rafeah Ariffin.

Angelia Chin Sharpe.

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Cover Story BEST INNOVATION IN SUSTAINABILITY: INVEST ENERGY SDN BHD Invest Energy Sdn Bhd, the winner of the Best Innovation in Sustainability category, is a growing international

Anand Ramakrishnan.

BEST ENVIRONMENT IMPACT: INFINEON TECHNOLOGIES (KULIM) SDN BHD (LARGE COMPANY) Infineon Technologies (Kulim) Sdn Bhd is a world leader in semiconductor solutions that make life easier, safer and greener. Infineon, which hails from Germany, believes that microelectronics is the key to a better future. Infineon’s global operations encompass the full production value chain and end-to-end semiconductor

Datuk Peter Halm.

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total energy solutions company leading the charge in Renewable Energy Generation, Clean Energy and Energy Efficient Solutions. This is achieved by providing and investing in innovative, cost effective, reliable and proven energy solutions. Anand Ramakrishnan, Managing Director of Invest Energy, explained that this innovative idea stemmed from the realisation of the rising cost of energy. “The award is based on the project which we carried out for Safran, a manufacturer of landing gear for the airline industry,” said Anand. He added that several years earlier, Safran had set up a RM500 million plant in Seremban’s TechValley to cater to the Asian market and was generating process heat and gases which were released into the atmosphere. “Our solution works on the basis that we collect process heat and toxic

gases from large industrial plants and generate electricity and cooling. We put this wastes through a bypass and then through a thermal heater, generating vapour which is then channeled into a turbine to generate electricity and cool air,” Anand shared. To date, Invest Energy has generated a savings of RM5 million per year for Safran in energy costs. The company partners with technology giants such as General Electric and Mitsubishi Electric Company, among others. Convincing investors was a major hurdle and Anand shared, “When we first started, met with 99 investors and only 2 contributed funds to the idea. So I went to more focused funds in the power sector, and targeted investors that had a long-term view; and they liked the long-term nature of this business.”

manufacturing process, and employ about 10,700 employees. The company has 4 factories across the world, of which 3 are in Europe and 1 in Malaysia. Infineon’s wafer fabrication facility in Kulim Hi-Tech Park is the Group’s first and only wafer fabrication plant in Asia, employing more than 2,000 employees. Winner of the Best Environment Impact category, Infineon Technologies (Kulim)’s Vice President and CFO, Datuk Peter Halm said, “Corporate social responsibility (CSR) is a big topic. At Infineon, we include it in our mission and the focus is energy efficiency.” Recognising the challenges that rapid population growth accompanied by higher energy consumption imposes, Infineon believes that the key to managing this efficiently is through microelectronics and processors as well as managed systems. The company’s focus is on the generation and conversion of energy, which can be achieved with semi-conductors. The company’s energy efficient focus has paid off as Datuk Peter explained, “At Infineon, we now need 50% less electricity consumed per square centimeter of processed

wafer; we also need 28% less water; we generate less waste and we conduct a lot of waste recycling activities. Basically, we use resources in a very conscious manner.” The company operates clean rooms where the air is clean and a very controlled environment is established, day and night, all year round. “In order to maintain the clean room despite the changes in the external environment, requires a lot of control systems, which need a lot of energy,” he explained. In Kulim, an energy manager is used – a trained personnel who looks into ways for the company to efficiently burn energy and optimise consumption, which includes optimising machine operations, as well as energy and water consumption. “What we did was to optimise the fan units and cooling units, and recycling of cool air – which requires power. We can also optimise our chillers when there is excess capacity. We look at what we are burning, the power we need and how we can optimise them,” shared Datuk Peter. Today, Kulim’s burning of carbon dioxide in comparison to what can be saved is at a factor of 1 to 41, which is a significant achievement for Infineon.


BEST ENVIRONMENT IMPACT: BIOTEC INTERNATIONAL ASIA SDN BHD (SME) Biotec was established in Belgium in 1984 with the aim of developing appropriate conceptual, technological and methodological tools for tropical regions. The key objectives of the company are to treat wastewater and manage solid organic waste in order to add value to the by-products and use them as industrial, energy and agricultural inputs. Vincent Santantonio, Commercial and Business Development Manager of Biotech International Asia explained that the award is related to the Seraya Palm Oil Mill Biogas project in Tawau, Sabah. “The project is a combination of two elements – a waste management plant and a biogas plant,” said Vincent. By-products of palm oil include liquid and solid wastes and in this project with Seraya, Biotec is focused on liquid waste management. “We

BEST SUSTAINABILITY REPORTING: SIME DARBY PROPERTY BERHAD Winner of the Best Sustainability Reporting category, Sime Darby Property Berhad is a multi-award winning public listed property developer based in Malaysia, involved in property development and property investment as well as asset management. The company has assets in Australia, Singapore, Vietnam and the United Kingdom. Over a span of 40 years, Sime Darby Property has delivered sustainable communities, with 23 active townships/ developments and has approximately 28,000 acres of landbank in four main corridors from Selangor to Johor, of which 10,800 has been earmarked for future development. Sharif James Zainal Aziz, Manager of Corporate Sustainability Unit, Sustainability & Quality Management Department, explained

look at the waste as input that we have to manage. Waste is full of organic matter which has nutrients. Previously, the way to handle this kind of agro waste was to dispose them. What we did was to develop a system to bring back the nutrients and use them as organic fertilizer,” explained Vincent. Biotec also developed technologies to transform the organic matter to fuel. “In this case, we are talking about biogas, which we can turn into electricity or channel back into the industry or be sold for additional income,” said Vincent. Having started its operations in Malaysia in 2008, Biotec is now celebrating its 10th anniversary in the Malaysian market. The company’s treatment of waste water produces gas which can be utilised for other industrial activities. “In Seraya Palm Oil Mill, the mill owner is using the biogas generated from waste to run a biogas generator set. Previously they used diesel and now thanks to biogas they can reduce

the use of fossil fuel and enjoy some savings. Before this, they were burning 1.3 million litres of diesel per year, and this has since been reduced,” shared Vincent.

that the company has a strategic sustainability framework. This helps the company deliver its overarching sustainability purpose: to “contribute to a better society, minimise environmental harm and to deliver sustainable development.” The Group’s sustainability framework has been aligned with the United Nations Sustainable Development Goals (SDGs), of which Sime Darby Property has met 12 out of 17. “Sime Darby does not simply develop housing, we develop townships with a wide range of amenities to build a sense of community and to provide facilities for an active sustainable community,” said Sharif James. The company ensures that its developments have green spaces; areas for outdoor recreation such as parks, allocation for schools, religious buildings and community centres; commercial and retail areas for convenient access to necessities; and essential infrastructure such as

roads, power, telecommunication networks, water and sewage as well as stormwater management. Sharif James explained, “We convert plantation land and don’t cut down forests for our developments.”

Vincent Santantonio.

Sharif James Zainal Aziz.

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Cover Story BEST SUSTAINABLE LEADER: DR. STELLIOS PLAINIOTIS Dr. Stellios Plainiotis is one of Asia’s leading Smart & Sustainable Engineering experts with more than 15 years of experience in the fields of Energy and the Environment. He has consulted over five Green Building projects in Asia and Europe. He is also the co-author of the first Chinese Guidebook on Sustainable Building Design, Design for Sustainability, which is now used as a textbook at the Tongji University in Shanghai and the University of Nottingham, UK. Dr Stellios has produced numerous journals and two books. Dr Stellios is Chief Executive Officer of Neapoli Sdn Bhd with offices in London, Kuala Lumpur, Korea and Hong Kong. Through his company, Dr Stellios has built numerous green and high-performing buildings spanning 25 million square feet of Green Building Space with major sustainable projects across the

world. Dr. Stellios’ projects have been certified under LEED, GBI, Green Mark, GreenRE and MyCREST certification bodies. Speaking on behalf of Dr. Stellios, Michele Ceroni, Building Engineer – Sustainability Consultant, of Neapoli said, “Our core business is in Malaysia but we have projects in Australia and other places. In our projects, we are involved from the early stages right up to the end of the project – from planning to certification.” “Our projects incorporate renewable energy, as well as recycling and conservation of water, among other things. We constantly monitor the specifications of our materials and engage in sustainable purchasing,” added Michele. In Malaysia, Dr. Stellios has contributed to the energy and environmental design aspects of building projects such as Cititower KLCC, Complex Dayabumi Phase 3, Merdeka PNB 118, the Kuala Lumpur International Airport 2, The Westin Hotel, Desaru, Johor, and Rafflesia

Luncheon with Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water EUMCCI hosted Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water (KeTTHA) to a luncheon during the event. In his address Dato’ Seri Ir Dr Zaini, discussed the future of sustainability in the country. “Recently the Prime Minister mentioned TN50 and he has announced the first draft of TN50 sustainability. There are 4 key items in the draft namely Carbon Neutral, Renewable Energy, Energy Efficiency and Top City in the World for Sustainability,” he said. Dato’ Seri Ir. Dr Zaini shared examples of the lack of sustainability in many areas in Malaysia which needs to be addressed and improved. KeTTHA is currently working to improve these areas. He noted that sustainability is not common in Malaysia and there is a lack of awareness. The Green Tech Masterplan was launched six months ago. He added that there is a need to reduce carbon by cutting down the activities that produce carbon. “In Malaysia, only 22% is renewable energy while the rest is largely from fossil fuel,” he said.

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Hill in Johor, among others. On the international front, Dr. Stellios' handy work is seen in the development of the American University of Beirut in Lebanon, Hoxton Square in London, the Taiwan Tower and Crystal Palace Park, among others. In describing Dr. Stellios in his role as a Sustainability Leader, Michele said, “He is very charismatic and passionate about sustainability.” 

“IN MALAYSIA, ONLY 22% IS RENEWABLE ENERGY WHILE THE REST IS LARGELY FROM FOSSIL FUEL.” Dato’ Seri Ir. Dr Zaini Ujang, Secretary General of the Ministry of Energy, Green Technology and Water (KeTTHA)

Michele Ceroni.


Feature

KPJ HEALTHCARE BERHAD

MALAYSIA’S LEADING PROVIDER OF PRIVATE HEALTHCARE SERVICES Since its introduction as the first private specialist hospital in Johor in 1981, KPJ Healthcare Berhad, otherwise known as ‘KPJ’ or ‘the Group’, has been at the forefront of the healthcare industry

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riven by its core values of Safety, Courtesy, Integrity, Professionalism and Continuous Improvement, KPJ’s integrated network consists of more than 20 specialist hospitals located throughout the nation. With its expansion abroad, the Group currently has two hospitals in Indonesia, a sizable share in a hospital in Bangkok, a hospital in Bangladesh, as well as a retirement and age-care resort in Australia. KPJ’s competitive advantage lies in its extensive reach and presence in the highly competitive private healthcare industry. With its hospitals located in various parts of the nation, the Group’s hospitals are easily accessible and offer a diverse range of medical specialist services, many of which are major firsts in the nation’s healthcare industry. In addition, KPJ has made outstanding inroads in the application of integrated Group-wide technology. The adoption of Cloud Computing has further enhanced the ability of the medical consultants in assessing patient information in real-time to ensure delivery of a seamless service. To further optimise the handling of patients’

records and increase hospital efficiency, continuous improvements are being undertaken to advance the KPJ Clinical Information System (KCIS). Apart from clinical technology located in its hospitals, KPJ is also exploring opportunities to apply digitalised medical technology in everyday life. Among the ventures in the pipeline are KPJ’s E-Pharmacy with online ordering, wearable technology, robotics, Artificial Intelligence (AI) and the Internet of Things (IoT). In October 2017, KPJ became the first provider of private healthcare services in Malaysia to implement the ‘Watson for Oncology’ technology for cancer patients. ‘Watson for Oncology’ is a cognitive computing platform developed by IBM Watson that facilitates oncologists in their efforts to design treatment plans and evidence-based cancer treatment options for each patient. The Group’s extensive experience in hospital development and management spanning more than three and a half decades also means that it is built on strong, dependable fundamentals. These serve as a solid bedrock as the industry continues to evolve and change over time. In growing the health tourism segment, KPJ’s aggressive marketing strategies continue to show stellar results by expanding its footprint in Asia, the Middle East, Africa, Australasia and Kazakhstan (a member of the Commonwealth of Independent States). Apart from hospital-based care, the KPJ Group made its mark in healthcare-related industries, primarily KPJ Senior Living Care services and Healthcare Education. These thriving sub-sectors hold tremendous potential for the future, in line with increasing consumer demand. The hospitals continue to be recognised by accreditation bodies such as the Malaysian Society for Quality in Health (MSQH) and the Joint Commission International ( JCI). KPJ hospitals have been certified by Integrated Management System (IMS) that integrates and emphasises on the Quality Management System (MS ISO 9001:2000);Environment (MS ISO 14001:2004); Occupational Safety and Health (OHSAS 18001:1999) Systems as well as other ISO and SIRIM certifications. KPJ Group continues to touch the lives of the impoverished and underprivileged in communities through its management of the Klinik Wakaf An-Nur (KWAN) initiative. Since the inception of the first KWAN charity clinic in Johor in 1988, it has since served more than one million patients. Today, the KWAN network encompasses one hospital in Johor, 19 clinics throughout Malaysia, as well as four mobile clinics in Kuala Lumpur, Johor and Selangor. 

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GIG ECONOMY, THE FUTURE OF WORK Advancements in technology and a rise in digital platforms have made it easier for people to make a living without being tied down to one company. Just like the rest of the world, Malaysia has seen exponential growth in the number of independent workers without full time jobs.

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recent forum organised by EUMCCI brought together members of the Government, public and private sectors to discuss the latest trends of the gig economy in Malaysia’s metropolitan areas and its effect on the overall economy. The panel members were Yeoh Chen Chow, Co-founder of Fave; Sam Haggag, Country Manager of Manpower Group Malaysia; Datuk Shamsuddin Bardan, Executive Director of Malaysian Employers Federation; and Tunku Alizakri Raja Muhammad Alias, Deputy CEO (Strategy Department) of the Employees Provident Fund (EPF). The moderator was Roberto Benetello, CEO of EUMCCI. The Intuit 2020 report states that 34% of Americans are working independently in the gig economy while in the European Union independent workers are the fastest growing group in the labour market. Closer to home, EPF reported that Malaysia’s gig economy, also known as the open-talent economy, has grown 31% this year, surpassing the traditional workforce. Yeoh, a co-founder of a startup with 300 full time staff, says that they still use about 200 freelancers. “We lose a lot of our staff to “work and travel”. But how will that affect the workforce today? It’s all about flexibility. People want to be able to do what they want anytime of the day,” he adds. This trend has been prevalent among the younger generation who have also opted for other unusual ways of earning a living such as publishing vlogs (video blogs) on YouTube and being social media influencers and e-teachers. “Full-time, traditional employment is in decline in much of the world. This is giving way to a host of alternative work models – from contract and self-employment, to agency and gig work, and much more,” says Haggag. “However, as these alternative employment models mature, we need to keep their positive aspects, while making

sure we continue to take care of people, invest in their development and provide a path to career security.” Manpower Group surveyed about 9,500 people in 12 countries to find out how they want to work in the future and their views of ‘NextGen’ work. They found that what people want is changing – 87% of those surveyed would consider alternative ways of working in the future, while 90% of those already working this way enjoyed it. “As people work longer and learn more, many are seeking a better balance between work and home. Not everyone wants to engage as a full-time employee and organisations don’t always want that either. In fact, today, more people and businesses than ever want to work differently,” Haggag adds. These added avenues are a positive development for the country’s economy as they help utilise excess labour at a time when youth and graduate unemployment is under a spotlight, says Datuk Shamsuddin. “Perhaps this could be a new way or a paradigm shift in our world view of labour markets where one should not be too fixated on permanent employment. As it is, companies are struggling due to a rise in the cost of doing business, strict regulatory compliance requirements and intense competition in the marketplace. This has led employers to emphasise more on productivity,” he adds. The freedom that comes with being an independent worker, however, has a downside: uncertain income. Not having a full-time employer also means losing out on the employer’s contribution to one’s pension or EPF savings. In other words, there is a heavier burden on the individual to save for his or her own retirement – which is why the existing defined-contribution system needs to be tweaked. Financial insecurity is one worrying finding from a recent survey by INTI International University and

HIGHLIGHTS OF PANEL DISCUSSION SAM HAGGAG • Jobs should provide access to the labour market. • There is a need to fill the void of career guidance. • The need to develop indemand skills, on the job.

YEOH CHEN CHOW • Growing numbers of Malaysians in cities are not working traditional jobs. • Companies should open their policies to more flexible working structures and schemes. • Companies should offer life-work balance for long careers.

DATUK SHAMSUDDIN BARDAN

TUNKU ALIZAKRI RAJA MUHAMMAD ALIAS • The need to focus on a retirement scheme as early as possible. • Supplementing pensions. • Government needs to increase contribution to help the workers of the gig economy.

• Providing labor market

mobility for people and business. • The need to nurture learnability. • Preparing people for disruption from technology, automation and globalisation.

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Feature Colleges. Some 66% respondents did not have a retirement plan, 33% did not have a personal financial plan and 56% had less than three months of financial cushion, versus the recommended six-month financial buffer. In 2010, the government introduced the 1Malaysia Retirement Savings Scheme (SP1M) to cater for the growing number of Malaysians without a fixed monthly income, but who desire a fund to safely grow their savings for retirement. Individuals may voluntarily contribute a minimum of RM50 to their SP1M account up to a maximum of RM60,000 a year. While the number of participants in the scheme has been growing slowly over the past few years to about 90,000, Tunku Alizakri says this was still not satisfactory. “Clearly, everyone knows the issue of low retirement savings by Malaysians. But, why is this so? Is this due to a lack of understanding of the importance of saving for old age? Is it a lack of financial literacy? Or is the rising cost of living making it hard to save?” asks Tunku Alizakri. He says the informal employment sector under the gig economy has been growing at a faster rate than the formal employment sector. “In my opinion, there is a lack of trust among Malaysians in the formal establishment – in both the government and the corporates – which could partly be driving the growth of the informal sector and the gig economy.” A higher burden on independent workers to take care of their own retirement and healthcare insurance also points to the greater need for social security nets and higher utilisation of public healthcare services. The increased public expenditure burden may also be compounded by the under-reporting of taxes by those not in the old-school definition of formal employment. The government is well aware of this and is working on improving tax collection in the new economy, says Datuk Shamsuddin.

At the end of the discussion, it was clear that business leaders and policy makers must collaborate to find the best balance of flexibility and responsibility. Benefits that were once tied to jobs, now need to be able to travel across portfolio careers whether that’s certifications, pensions, training funds and more. Leaders must enable, not prevent the gig economy, and must be responsive to what people want. People are choosing to work differently and new ways of getting work done are on the rise. 

QUESTIONS FROM THE FLOOR

Susan Wan from Alice Smith School Association asked about the skill sets needed to instill in their students to get them ready for the gig economy. Tunku Alizakri says humanity will be lacking in IR4.0, thus skills of instilling this across the board would be crucial. Datuk Shamsuddin says education now can be obtained from everywhere. “We need to educate students to be adaptable to challenges and new frontiers that may not be available now.” Susan Wan On the future of intellectual property in this economy, and if traditional IP will be dispersed, Haggag says remote, contingent workers provide a useful resource for businesses, and their utility is likely to increase as remote working technology evolves. Businesses need to be mindful of protecting proprietary information, including avoiding assumptions that employees and contractors are alike in obligations owed over proprietary information; adequately addressing business protections in written contracts; and carefully considering what information needs to be protected, who should be giving promises about business protection obligations, and where those obligations may need to be enforced.

WHAT PEOPLE IN THE GIG ECONOMY SAY “The feasibility of the gig economy in Malaysia is definitely apparent as we experience an increasing number of Malaysian ‘SupaAgents’ within our task force. The Malaysian government also backs its feasibility by introducing initiatives like the eRezeki programme that heavily promotes Malaysians to be a part of the gig economy and to become a digital worker themselves. With that being said, I believe that there is still a lot that needs to be done as a whole from the government as well as from private businesses. There is still a lack of understanding by the public, compared to countries like Philippines or the USA, on what is expected of a digital worker together with the skills required in order to excel as one.” Greg Meehan, Head of Sales, Supahands

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“I believe there is a lot that the Government can provide to contributors of this special economy. Many of us are highly creative and innovative people who can contribute in great measures to the country’s growth. However, as for the country’s contribution to our future and the security of our family, it is very minimal. I suppose it's because the industry is in its infancy here, and policy making takes time. Just because we work differently, doesn't mean we should be marginalised. Embrace the economy and let's work together to make it better, because I am sure it is here to stay.” V. Kugantharan, Web Specialist and Special Needs Piano Teacher


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NORDIC DAY RECEPTION Five Scandinavian countries jointly celebrate Nordic Day.

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From left: H.E. Dag Anders Juhlin-Dannfelt Ambassador of Sweden to Malaysia, the Honorable James Khor, Honorary Consul General of Iceland in Malaysia, Datuk Ramlan Ibrahim, Secretary-General of the Ministry of Foreign Affairs, H.E. Petri Puhakka Ambassador of Finland to Malaysia, H.E. Gunn Jorid Roset of Norway and H. E. Jesper Vahr Ambassador of Denmark to Malaysia.

he Royal Norwegian Embassy recently joined forces with its Nordic colleagues from Finland, Sweden, Denmark and Iceland, to host the first joint Nordic Day celebration in Kuala Lumpur. More than 300 invited guests attended the event, including the four Nordic Ambassadors to Malaysia and an Honorary Counsul – H. E. Jesper Vahr of Denmark, H.E. Dag Anders Juhlin-Dannfelt of Sweden, H.E. Petri Puhakka of Finland, H.E. Gunn Jorid Roset of Norway and the Honorable James Khor, Honorary Consul General of Iceland in Malaysia. Gracing the event was Datuk Ramlan Ibrahim, Secretary-General of the Ministry of Foreign Affairs Malaysia. H.E. Gunn Jorid Roset, on behalf of the Nordic Ambassadors, raised a toast to the success and prosperity of the member states and its people. H.E. Gunn Jorid Roset, in her address, spoke of the shared economic, historical, cultural and geographical ties of the Nordic countries. The shared values also include good governance, transparency and rule of law, among others. She also expressed confidence in the Malaysian market and strong interest in maintaining a close dialogue with the government. “As a region, the Nordic has a lot to offer Malaysia. We are 27 million people living in what is referred to as the most integrated region in the world. Trade between the five Nordic countries and Malaysia is USD2 billion a year,” she said.  EUMCCI REVIEW

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H.E. Maria Castillo Fernandez and Dato Sri Ramlan Ibrahim with ambassadors of EU countries to Malaysia.

Tan Sri Rebecca Sta Maria, Chairperson, EUMCCI and and spouse Mr Jayasankaran.

EUROPE DAY 2018

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Dato Sri Ramlan Ibrahim, Secretary General of the Ministry of Foreign Affairs, raised a toast to the member states of the EU.

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he European Union celebrated EU Day in full festive mood in Kuala Lumpur on11th May with about 500 people, including EU Ambassadors in Malaysia, and invited guests attending the event which was themed “Year of Cultural Heritage”. Hosted by Her Excellency Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, the event marked the 61st anniversary of the EU’s founding Treaty of Rome which created the European Economic Community, the forerunner of the EU. Guest-of-honour, Dato Sri Ramlan Ibrahim, Secretary General of the Ministry of Foreign Affairs, raised a toast to the prosperity of the member states of the EU and its people. Her Excellency Maria Castillo welcomed the guests and congratulated the people of Malaysia on their peaceful democratic change in government during the 14th General Election, and Prime Minister Tun Mahathir Mohamad on the extraordinary victory of the opposition coalition. “There will soon be a new government, and this means that we can get back to business together. There is a lot to do together: relaunching our Free Trade Agreement negotiations from which we can both benefit; signing our partnership and co-operation agreement which will allow us to engage in both a broader and a deeper co-operation


agenda; and strengthening our regular dialogue on environment and climate change, including sustainability. Both Malaysia and the EU are firmly committed to the Paris Agreement and its implementation.” The EU is one of the largest investors in Malaysia and its third largest trading partner. Guests also witnessed the selected and highly-skilled youth members of the Selangor Philharmonic Orchestra (SPO) perform the official national anthem of the EU, Beethoven’s “Ode to Joy” from Symphony No. 9. In the universal language of music, this anthem expresses the European ideals of freedom, peace and solidarity. More memorably, the SPO’s spirited delivery of “Negaraku” inspired many Malaysians guests present to sing the national anthem in high emotion, with its concluding notes sparking cheers and applause from all present. No doubt, the historic and remarkably peaceful change in the Malaysian government just a day earlier injected extraordinary energy into the often polite observance of national anthems being played. The festive atmosphere was further heightened with a gastronomical fare where guests mingled freely with one another and savoured an expansive range of European food and wine. Several EU countries had booths which provided a variety of wines and delicacies, including cheeses and rich desserts, native to each country. 

Worldchef Congress & Expo 2018 Special Edition 12-14 July 2018 | Kuala Lumpur Convention Centre Tastes of Europe is back with an exciting special edition!

Platinum partners

Supporting partner

CRM partner

SEBSEAM-M partners

Tastes of Europe embodies the European Culture for Food & Beverage in the Klang Valley and connects it with the business world. This year, EUMCCI have decided to take this very special European food festival to a whole new level by participating in the Worldchefs Congress & Expo 2018 in July, 2018. We are expecting 6,000 visitors, 200 exhibiting companies, 20 speakers, and 4,000 chefs from 105 countries. For more information, call us at +603 2162 6298 or email us at pervinder@eumcci.com.

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Feature

SECURING THE CYBER SPACE Panel of speakers address cyber risks and cyber security concerns that plague industry 4.0.

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ith industry 4.0 rapidly gaining momentum across the globe, this fourth revolution brings with it a new operational risk for connected, smart manufacturers and digital supply networks. Although industry 4.0 heralds a new era of connectivity, smart manufacturing, responsive supply networks and customised products and services, cyber risks are beginning to threaten the rising revolution. The challenge now is to implement a secure, vigilant and resilient cyber risk strategy that safeguards industry 4.0. Recognising these threats, the EUMCCI in collaboration with TUV Rheinland, recently organised a session on cyber risks in relation to industry 4.0 featuring a panel of speakers who expounded on the various aspects of cyber risks. Alexandra Herbel, Managing Director of TUV Rheinland, in her keynote address gave insights on the development of Cyber Risk Management for industry 4.0, and how this affected businesses. She noted that with a global population of 7.5 billion who are all connected via various devices, cyber risks have increased in recent years. “In 2017, more than USD1 trillion in damages were incurred by cyber attacks,” said Herbel. This called for urgent mitigation to deter or safeguard enterprises and individuals against these crimes. The session also featured Dr. Fadhullah Suhaimi Abdul Malek, Chief Officer Network Security, New Media Monitoring, Compliance and Advocacy, Malaysian Communications and Multimedia Commission. Dr. Fadhullah iterated that the only constant is change considering the drastic changes in industry and technology.

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He expressed that security was a challenge, especially in the cyberspace, since it involved critical information. He too noted that with the global population connected via the Internet, cyber risk is increasingly threatening industries and individuals. “Breach in security is often a result of malware, at a ratio of 1 in 20,” he said. He added that the key to managing cyber risk was to set in place processes, such as an organisational checklist, that everyone within an organisation had to conform to. “This will help to reduce incidents, if not to zero-rise it. Industry has to come together to deter these incidents. Security starts with you,” he stressed. Nigel Stanley, Chief Technology Officer – Industrial, TUV Rheinland, expounded on operational technology amidst cyber risks. He explained how operational technology and industrial security worked hand in hand to detect potential cyber security incidents. He shared about the incidents of cyber security threats that have taken place in recent times, such as the incidents involving San Francisco’s light rail system, the US government’s security site being hacked and breaching of information security at hospitals as well as its medical devices in the US. He explained the lifecycle for functional safety and cyber security which involves hazard and risk analysis as well as risk and threat analysis. He expounded that risk assessment was important for manufacturers, systems operators and systems integrators. Stanley shared about risk assessment approaches such as the NIST, which promotes US innovation and industrial competitiveness by advancing measurement science, standards and technology to enhance economic security and to improve the quality of life. He also


“65%

OF COMPANIES IN MALAYSIA ARE STILL VULNERABLE TO CYBER ATTACKS AND ARE NOT SUFFICIENTLY PROTECTED.” Alexandra Herbel

Dr Fadhullah Suhaimi Abdul Malek

Datuk Seri Panglima Wilfred Madius Tangau

Nigel Stanley

Rajeev Sukumaran

Tarun Gupta

explained the ISA/IEC 62443 which is designed to upskill IT professionals and control system security roles for cyber security purposes. Rajeev Sukumaran, Director Consulting Services, TUV Rheinland, spoke on Automotive Cyber Security and Evolving Threat Landscape. Mr. Sukumaran shared three key concerns which include building a secure and resilient automotive production facility; challenges to connected mobility; and addressing cyber security in industry. “Cyber security incidents are rapidly increasing in the manufacturing environment, especially now that cars are also connected devices. This calls for security in the manufacturing environment especially during the design phase,” he said. Tarun Gupta, Principal Consultant – Industrial Security, TUV Rheinland highlighted critical infrastructure protection for railways and utilities. Gupta aired a video on keeping the railway system safe from cyber attacks and other issues concerning emerging threats, supply chain risks, industrial control threat landscape and information technology security involving operational technology cyber security. On the issue of privacy and security in the IoT world, Urmez Daver, Vice President – Consulting Services, TUV Rheinland, shared insights on the fundamentals of security and privacy for managing cyber risks. He also shared several major incidents of security failure. Key challenges in the world of smart devices includes a lack of standards, increase in complexity and the rapid generation of big data. “Privacy and ethical decision making are also challenges today where devices are subject to security breaches,” he stated. The session ended with a luncheon graced by the Minister of Science, Technology and Innovation, Datuk Seri Panglima Wilfred Madius Tangau. In his address to the guests, Datuk Seri Wilfred said that Malaysia is

~ Datuk Seri Panglima Wilfred Madius Tangau

Urmez Daver

committed towards creating a secure cyber environment. “The Malaysian government is committed to strengthening its cyber space. However, there is more work to be done.” He added that 65% of companies in Malaysia are still vulnerable to cyber attacks and are not sufficiently protected, and this means more education and assistance are required to mitigate this situation. He stated that cyber security will remain a main priority for Malaysia for the next five years. In view of this, the development of homegrown cyber security products and services will be given greater focus in order to enable self-reliance. Datuk Seri Wilfred stressed that the role of cyber security in securing innovation and paving the way in industry 4.0 is an important element in driving the Malaysian economy. He stated that the International Telecommunication Union’s 2017 Global Cybersecurity Index ranked Malaysia as the third most committed country on cyber security, after Singapore and the US. Datuk Seri Wilfred also reiterated that cyber security acts as a shield for the nation’s development and society's wellbeing, therefore the challenge is to create a safe cyberspace for Malaysia by 2020. 

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STEMMING THE FLOW OF ILLICIT TRADE IN MALAYSIA llicit trade in goods such as cigarettes, liquor and Intellectual Property Rights in Malaysia not only robs the Government of valuable tax dollars, it also has other negative consequences for the country.

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ne unexpected result of global trade which has resulted in the free movement of goods and the rise of the Internet and online businesses is the mushrooming of illicit trade. This is a worldwide problem and the cost to affected countries is great. Illicit trade is defined by the World Health Organisation (WHO) as “any practice or conduct prohibited by law and which relates to production, shipment, receipt, distribution, sale or purchase, including any practice or conduct intended to facilitate such activity.” The Organisation for Economic Co-operation and Development (OECD) has estimated the cost of illicit trade to be around US$250 billion, while the International AntiCounterfeiting Coalition (IACC) estimates it to be US$600 billion per annum as of 2015.

MALAYSIA’S LOSS OF TAX REVENUE Illicit trade, although very prevalent in Malaysia, has not been subjected to detailed studies. It is a world that still operates in the shadows. One of the best reports on illicit trade in Malaysia and its effect was done by the Institute for Democracy and Economic Affairs (IDEAS). Titled Illicit Trade in Malaysia: Causes and Consequences, it was

released in October 2017 and clearly shows how illicit trade is depriving the Malaysia government of valuable tax dollars. The report cites the case of Penang, where a study done in 2011 showed that in one year, the state lost around RM16 million in uncollected taxes due to illegal economic activities. This figure undoubtedly would be higher today thanks to the increase in illicit trade. In March this year, The Economist Events hosted the second Global Illicit Trade Summit in Kuala Lumpur, which was attended by over 120 experts from the government, law enforcement agencies, international organisations, industries and academia across the region. Kuala Lumpur was perhaps chosen because Malaysia has gained notoriety as an international hub for counterfeited goods. The European Commission trade website on Malaysia (trade. ec.europa.eu/doclib/docs/2006/october/tradoc_130425.pdf) voiced concern that the pirated optical discs and counterfeit software manufactured in Malaysia are exported around the world including to the EU. At the summit IDEAS Director of Research, Ali Salman, revealed the estimated amount of tax revenue that the Malaysian government lost due to illicit trade to be RM8 billion. Bernama, the national news agency, which carried the story, quoted Ali as saying that the illicit trade in

“LATEST AVAILABLE DATA INDICATES THAT 55.6% OF CIGARETTES SOLD IN MALAYSIA ARE SMUGGLED CONTRABAND PRODUCTS. THIS TRANSLATES INTO ALMOST SIX OUT OF EVERY 10 CIGARETTE PACKS SOLD IN MALAYSIA TO BE ILLEGAL PRODUCTS. BASED ON INDUSTRY ESTIMATES, CONSUMPTION OF ILLEGAL CIGARETTES STOOD AT A STAGGERING 10 BILLION STICKS IN 2017 IN MALAYSIA." Guilherme Silva, Managing Director of JTI Malaysia

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Malaysia is mainly driven by tobacco products, liquor and beer, food and beverages, machinery and motor vehicle parts.

THE WORST AFFECTED INDUSTRIES: TOBACCO AND LIQUOR AND BEER Customs Director General Datuk T Subromaniam in a report published by New Straits Times in May 2017 has been quoted as saying that contraband cigarettes are the most smuggled commodities in Malaysia. The adverse effect of the illegal trade is most felt by the Malaysian tobacco and liquor and beer industries. Guilherme Silva, managing director of JTI Malaysia has some sobering facts on the havoc the illegal trade of cigarettes has had in Malaysia. “Latest available data indicates that 55.6% of cigarettes sold in Malaysia are smuggled contraband products. This translates into almost six out of every 10 cigarette packs sold in Malaysia to be illegal products. Based on industry estimates, consumption of illegal cigarettes stood at a staggering 10 billion sticks in 2017 in Malaysia,” says Guilherme. It is estimated that the government loses close to RM5 billion a year due to illegal cigarette trade and the issue is by far the single largest tax revenue leakage issue in this country, he adds. “Malaysia faces a very serious illegal cigarette trade problem that can only be described as a national problem!” Another industry which has been badly hit by the illicit trade is the liquor and beer industry. Liquor and beer also make up one of the most smuggled goods in Malaysia. The seizure of contraband liquor and beer by enforcement agencies has increased thanks to the launch of anti-contraband Ops Outlet which began in 2010. A Customs Department raid at the Free Zones at the Port of Tanjung Pelepas, Gelang Patah, Johor in April 2017 led to the seizure of RM20 million worth of beer and whiskey in 14 containers. It is estimated that in 2015, the illegal smuggling of these items has resulted in the Malaysian government losing over RM900 million in alcohol tax revenue, including excise and import duties!

HIGH DOMESTIC TAXES Cigarettes and alcohol are often subjected to the ‘sin tax’. Smoking and drinking are considered unhealthy habits and the government would like to see its citizen wean off from these products. Unfortunately, what the citizens want for themselves can be at odds with what the Government wants for them. The huge shadow industry involving the smuggling of cigarettes and alcohol is proof that when there is demand and the price is high, people often look at illegal ways to obtain the goods to satisfy their needs. The government’s intention of discouraging people from smoking by raising taxes on cigarettes and making them very expensive is not working. IDEAS in its report has stated that with the increase in population, the number of smokers has increased from 4.7 million in 2011 to a high of 5 million in 2015. More alarming is the revelation by the Minister of Health that over 52% of people in the country are smoking cheap, illegal cigarettes, which in turn is driving up the smoking prevalence in Malaysia as legal volumes have declined significantly in the recent years. The reason Malaysians are opting for the contraband is because of the price factor. “The high excise increases on cigarettes over the years – 14% increase in September 2013, followed by a 12% increase in November 2014 and a massive 36% hike in November 2015, has subsequently created a huge price gap between the legal and illegal segment,” says Guilherme. For example, a pack of a premium brand of cigarettes cost RM17 while a pack of illegal cigarettes can be easily obtained for as low as RM3 in the market. Higher excise taxes on beer and liquor have pushed the price of alcohol up. Three consecutive tariff hikes from 2004 to 2006 have caused Malaysia to have the second highest duty on beer in the world after Norway. The price hike forces the consumer to look for cheaper alternatives and thus turn to contraband beer.

IPR When it comes to IPR, the biggest problems are piracy and counterfeits. Good are produced locally and exported overseas, including to the EU and they are imported into

“THE ESTIMATED AMOUNT OF TAX REVENUE THAT THE MALAYSIAN GOVERNMENT LOST DUE TO ILLICIT TRADE TO BE RM8 BILLION." Ali Salma, IDEAS Director of Research

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“COUNTRIES MIGHT IMPOSE TARIFFS ON MALAYSIAN GOODS, REDUCE TRADE OR NOT, ENCOURAGE INVESTMENTS INTO THE COUNTRY AS A KIND OF ECONOMIC SANCTION FOR NOT PROTECTING IPR.” Chew Phye Keat, Head of EUMCCI’s IPR committee

Malaysia as well for local use. In Malaysia the illicit trade in IPR involves pirated optical discs, software and electronics. Pirated discs are widely available and sold openly in shops and markets. There is also widespread use of unlicensed software, illegal downloads of films and other copyrighted content. Counterfeit goods such as luxury watches, handbags and textiles are imported from China and Korea and are sold locally. The European Commission trade website also lists other kinds of infringements such as infringement of patents, of design, geographical indications and theft of trade secrets.

EFFECTS ON THE ECONOMY Besides the loss of tax revenue, illicit trade has resulted in closure of factories and unemployment. Two of the biggest international cigarette manufacturers in Malaysia – British American Tobacco (BAT) and JTI Malaysia had ceased its local manufacturing operations in the past two years. The sharp rise of illegal cigarettes was cited as one of the key reasons. “The cessation of the two major manufacturing operations also affected its supporting industries resulting in close to 1,000 workers losing their jobs in the legitimate tobacco industry due to the illegal cigarette trade,” explains Guilherme. As the movement of contraband goods requires a good network of smugglers, informants and corrupt officials, illicit trade contributes to the rise of crime and violence. Many transnational crime syndicates and international terrorist networks rely on the trade of illicit goods as their main source of funding. Malaysia’s standing in the international community will be damaged if it does not control the illicit trade. Chew Phye Keat, Head of EUMCCI’s IPR committee, says other countries might not view Malaysia favourably if it does not act strongly against piracy and counterfeiting. “Countries might impose tariffs on Malaysian goods, reduce trade or not, encourage investments into the country as a kind of economic sanction for not protecting IPR,” says Chew. 

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COMBATING ILLICIT TRADE

There are several measures that need to be taken to curb the illicit trade in Malaysia:

• The government has to review its current

taxation policies to stem the illicit trade, especially for goods such as cigarettes and liquor and beer. At present there is a huge price gap between the legal and illegal products.

• Step up enforcement activities. Stringent

measures should be taken to plug leakages in the system. There should be a strong effort and cooperation from all law enforcement agencies such as the Malaysian Maritime Enforcement Agency (MMEA), Marine Police, Malaysia Border Security Agency and Royal Malaysian Navy.

• Improve border control. “Thanks to the

Customs raids and the anti-infringement actions in court by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC), there has been a reduction of counterfeit and illicit goods,” says Chew. “But the smuggling of illicit goods into the country is still a problem. That’s why it’s very important to have good border control.”

• Improve consumer awareness about IPR and increase consumer ethical standards so that they will not buy pirated goods.


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ACHIEVING A SUCCESSFUL DIGITAL ECONOMY

The Digital Economy has the power to add significantly to economic growth and development. The EU-ASEAN Business Council report on “Ensuring Success for the Digital Economy in ASEAN” explains how the world is embracing the transformation, and offers suggestions to improve it.

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here is no doubt that the Digital Economy has the power to add significantly to economic growth and development in South East Asia. But how successful the region is at embracing the Digital Economy and encapsulating the benefits of it depends on how it approaches the matter as a collective.

FREE FLOW OF DATA There are a number of areas that need to be looked at if ASEAN is to maximise the potential benefits that can be harnessed from the Digital Economy. Putting in place the right ecosystem is of vital importance. It is not just a question of ensuring the right physical infrastructure, such as broadband networks and 4G or 5G data systems, it also requires the right policies and regulations to be developed which will encourage the exchange of data and the movement of goods and services that are sold via digital platforms.

from e-Commerce, and easing cross-border payments so that companies selling goods and services via digital platforms can get paid easier, faster, and more efficiently. These areas have to be considered within the need to support the push by ASEAN’s governments for economic growth, higher levels of living, attractiveness for companies and investments, and also the increased well-being of the people.

DATA LOCALISATION EU-ABC suggests that the goal to encourage privacy and security may not be best achieved by data localisation, but instead by actively maintaining data and taking advantage of updated secured technologies. It is recommended that ASEAN member states permit the free flow of data across borders under explicit consent of the owners to avoid such productivity loss and to the detriment of the ASEAN economy.

DRIVING INNOVATION, DEVELOPMENT AND GROWTH

PAYMENT & SETTLEMENT SYSTEMS

The Digital Economy drives innovation, development and growth for stakeholders in different parties. Data localisation laws and requirements will impact the rate of technological innovation in ASEAN. By avoiding such regulations as far as possible, data can be shared across borders with the explicit consent of the owners. This suggestion aims to support an environment conducive for innovation, incentivise companies to continue to invest and ensure the continuous supply and development of useful products and services that are advantageous to the region. These goods and services are also further improved by the presence of free flowing of data. The free flow of non-personal data is a prerequisite for a competitive Digital Economy. Moves to restrict the free flow of data will, therefore, inhibit the development of the Digital Economy and the ability of businesses, both large and small, to take full advantage of it, to the detriment of customers. The report outlines several worrying aspects and impactful outcomes of data localisation laws in ASEAN. It also deals with other areas that need to be considered when looking at the Digital Economy, namely easing the movement of goods

In a bid to fast-track regional payments integration, reduce inefficiencies in cross-border payments and trade, and include mid-smaller size banks in payments innovation incentives, EUABC recommended a promotion of wide-scale adoption in ASEAN banks of community-based initiatives like SWIFT gpi that are not commercially driven, remain market & segment-neutral, remain fully inclusive and provide a ready platform for regional payments integration within ASEAN markets, and also with extra-ASEAN markets.

E-COMMERCE & THE MOVEMENT OF GOODS A range of recommendations were made, including to introduce simplified clearances for low-value shipments in line with WTO and WCO Guidelines, for example, minimal data elements, consolidated clearance, importer/exporter registration exemptions and common value threshold for such shipments, among others. EU-ABC also suggested the introduction of a requirement that new legislation is evaluated and assessed on its necessity, usefulness and impact before it is implemented.  EUMCCI REVIEW

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IoT IN MALAYSIA – LOTS OF ROOM FOR EXPANSION

The information and communications technology market is poised for growth. Lower costs and efficiency are spurring SMEs, which have long been the backbone of Malaysia’s economy, to look at adopting the Internet of Things.

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he digital economy continues to be a key driver of growth, contributing 18.2% of Malaysia’s GDP in 2017 and is expected to exceed the projected target of 20% earlier than 2020. Malaysia’s ICT spending, combining services, software and hardware, is expected to grow from RM9.1 billion in 2015 to RM10.6 billion in 2020. From this, the government is seen to be the largest software and hardware spender in 2020. Within the IT services, the banking industry would likely be the top spender in 2020 while healthcare costs are driving the growth of solutions in this sector. Other sectors with growing opportunities for the IT sector are transportation, power and manufacturing.

At the recent Asia IoT Business Platform conference organised by the EUMCCI and SEBSEAM-M, and cofunded by the EU, a panel discussion on Overcoming Resistance Adopting IoT Nationwide was held. The panellists were Abdul Karim Abdul Razak, Head of Standards Development, Malaysian Communications and Multimedia Commission (MCMC); Ridzwan Kasim, Senior Director, Standardisation Division, Standards Malaysia; Ching Choon Jeng, Head of Business Development and Partnerships, Internet of Things, Group Enterprise SingTel and Dr Gopinath Rao Sinnah, Chairman of IoT WG Malaysia Technical Standards Forum Bhd. The moderator for the event was Roberto Benetello, CEO of EUMCCI.

WHAT’S THE PROBLEM?

Panel members with Roberto Benetello, CEO of EUMCCI.

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The annual ASEAN Enterprise IoT Survey 2017 reported that 70.7% of businesses and organisations in the region are currently exploring and finding possible solutions for their organisation. The survey revealed that IoT can increase productivity levels (74.8%), reduce operational cost (68%) and improve customer relationship and engagement (61.3%). Despite this there remains three main challenges. Cost (68.9%) is one factor that is holding back businesses from adopting IoT technology. Besides this, security (56.3%) and incompatibility with legacy systems (48.2%) are other deterring factors. The situation in Malaysia


is similar. According to Benetello, while the government advocates Industry 4.0 across different industries there still remain challenges. One challenge that is inherent in both service providers and end-users is the resistance in IoT technology adoption. “The resistance in IoT technology adoption could be due to the inconsistency in the technologies and systems used by different firms, resulting in an ecosystem that is not very cost-friendly to both users and providers. Users may need to own multiple IoT devices from different platforms and providers may need to develop a different system for each market segment that they want to venture into,” he explained.

INTERNET OF HARMONY Abdul Karim concurred that there are different systems and platforms across the various verticals. “All this reflects the country’s readiness. Is the market ready? Do we have national standards?” he asked. He said it is MCMC’s role as a regulatory agent to make sure there is infrastructure readiness. Ridzwan Kasim said Standards Malaysia is developing Malaysian standards and ensuring that the standards mirror international standards. A similar situation was seen in Singapore. Ching Choon Jeng said mobile phone penetration on the island republic stands at 1.6 million. “This means every adult is using two phones. We had too many players in the mobile payment, customers would get confused. With IoT there were also too many standards, too many vertical players. Singtel wanted to provide a single platform but it didn’t want to reinvent the wheels,” he said. The telco, working towards “perfect harmony”, has rolled out a secure and reliable network that helps businesses harness the full potential of the IoT. It has automated the application creation so that companies can create new businesses and services within minutes. “The Singtel IoT-ready network enables businesses to easily tap into our secure ecosystem without needing to build their own infrastructure,” he said. Singtel is able to offer a single bill for multiple products, customers and countries. Besides multiple standards, Dr Gopinath said interoperability is also an issue facing users. “As it stands, IoT implementation is simply not convincing enough for industry players,” he said adding that the private sector must provide feedback so that a standardisation document can be created. However, he finds that organisations are reluctant to share such things. Abdul Karim said that one way the Internet of Things can take off is with coordination and cooperation among industry players.

HEALTHIER COMMUNICATION Ridzwan, meanwhile, stressed that the aim of the exercise is not to gather company or industry standards but Internet standards. He also noted that in Malaysia the government is leading the way in developing these standards but in developed countries, the industry takes the lead. The panellists agreed that improved communication

Abdul Karim Abdul Razak.

Ridzwan Kasim.

Ching Choon Jeng.

Dr Gopinath Rao Sinnah.

between regulators, authorities and the private sector can help IoT technology adoption. Adding to this Benetello said one other factor that stands in the way of growth for the IoT in Malaysia has to do with human capital and talent. This is directly linked to the ecosystem. For the ecosystem to flourish, Malaysia needs capable data scientists, data modellers and analysts. MCMC acknowledged that there is a lack of skilled talent. “Getting the right people for IoT requires companies to have talented people for data manipulation, analytics and writing software. There are not enough people to do these jobs, not only for IoT but also digitalisation in general,” Abdul Karim said. “We need to produce people good in science, engineering and mathematics because Malaysia wants to progress to a high level value-added manufacturing. There are many opportunities for kids who are willing and enthusiastic to learn.” The government has taken steps to address this issue. In the 2017 national budget about RM250 million was allocated for future education of the National Transformation 2050 generation. This would be used to develop Science, Technology, Engineering and Mathematics (STEM) centres and improve Computer Science modules, including for Coding programmes.  EUMCCI REVIEW

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PRIVATE SESSION AIDS WOULD-BE INVESTORS

On the sidelines of the Asia IoT Business Platform event, EUMCCI organised a private information session with the Trade Mission and selected stakeholders. The aim of the session was to aid the six companies that exhibited under the EU banner at the trade fair that ran concurrently with the event. Presenters at the private information session were Muhammad Azrul Abdul Hamid, External Expert of “Southeast Asia IPR SME Helpdesk”; Jesse Chooi, Head of Research and Advisory, Investment and Industry Development division of MDEC; Helmi Halim, Senior Director and Head of Corporate Market Strategies, MIMOS Berhad (which is under the purview of the Ministry of Science, Technology and Innovation) and Vinothan Tulisinathzan, Senior Assistant Director, FDI Division, MIDA.

DRIVING INNOVATION

“WE ARE NOW LOOKING AT BUILDING THE ECOSYSTEM. CURRENTLY THERE IS NO ECONOMY OF SCALE TO TALK ABOUT. BUT WITH A COMMON SERVICE PLATFORM, TELCOS ARE STARTING TO BUILD THEIR NETWORK TO SUPPORT THE INDUSTRY.” Helmi Halim

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Helmi Halim said Malaysia wants to progress into a regional IoT development hub. In order to do this, it must create natural ecosystems to enable the proliferation of use and the industrialisation of IoT as a new source of e-growth. Part of MIMOS’ role is to help companies and industries to digitise their businesses. It does this by strengthening technopreneurs such as SMEs and startups via sandbox exercises, and aligning them to the national initiatives of open community data. Helmi said MIMOS will continue its work of creating awareness on IoT technology. “We are now looking at building the ecosystem. Currently there is no economy of scale to talk about but with a common service platform, telcos are starting to build their network to support the industry. Additionally, the sandbox process will help accelerate the creation of the ecosystem. “In general people do not see IoT as a solution to efficiency and cost. Instead people identify IoT with sensors. The sandbox can fix this.”


IPR STRATEGIES

“MALAYSIA’S IP LEGAL SYSTEM IS IN LINE WITH INTERNATIONAL STANDARDS, AND IS A MEMBER OF MANY INTERNATIONAL IP TREATIES.” Muhammad Azrul Abdul Hamid

Muhammad Azrul said the Helpdesk’s free services for European SMEs include confidential advice and training on IP issues including patents, trademarks, copyrights, licensing and dealing with counterfeiting. Some key sectors in Malaysia requiring particular IP attention include telecommunication equipment (mobile phones), apparel, movies and software. He briefed the participants on Malaysia’s IP legal framework compared to international standards. “Malaysia’s IP legal system is in line with international standards, and is a member of many international IP treaties,” he said. Where copyrights are concerned, he said protection is not permanent. The Malaysian Copyright Act grants copyright protection during the life of the author plus 50 years after his or her death. For unpublished works, copyright protection lasts for 50 years. Participants also learned that patent protection in Malaysia lasts for 20 years from the date of filing. The term of a utility innovation certificate is ten years from the date of application and this term is extendable for another two consecutive five-year terms by filing a formal request for extension.

OPPORTUNITIES FOR INVESTORS

“THE GOVERNMENT HAS ALLOCATED RM245 MILLION WORTH OF MATCHING GRANTS IN BUDGET 2018 TO ALLOW BUSINESSES TO UPGRADE TO SMART MANUFACTURING FACILITIES. FURTHER TO THIS, SHORTAGE OF CHEAP OR LOW-SKILLED LABOUR IN THE LOCAL MANUFACTURING SECTOR WILL PROMPT INDUSTRY PLAYERS TO TURN TO NEW DISRUPTIVE TECHNOLOGIES TO MITIGATE THE PROBLEM.” Jesse Chooi

Jesse Chooi said the four biggest verticals for opportunities offered to investors by Malaysia are transportation, power, manufacturing and healthcare. He elaborated on several low-power wide-area network initiatives such as the country’s first low-power long-range (LoRa) wireless protocol network, the Smart Traffic Management System, the City Brain initiative and the Integrated Fire Detection Solution. Several vibrant startups are also investing in IoT and making headways in the local ICT scene. Companies such as Lockswitch and plantOS are venturing into security and smart farming categories respectively, while FAVORIOT, a middleware platform, supports integration of data from sensors and actuators on the internet. Despite these successes there are a few challenges facing the IoT market such as cybersecurity threats and a lack of technical standardisation, lack of ICT adoption by SMEs, and network availability and quality. Last year, mobile penetration reached 131.8%. Chooi said with the increase in the number of mobile users in urban areas, network congestion can occur with the proliferation of IoT devices. Even with these challenges, he said sophisticated consumers are driving IoT demand in Malaysia. Industry 4.0, the Smart City initiatives and insurance telematics are pushing the boundaries of IoT competitiveness. “The government has allocated RM245 million worth of matching grants in Budget 2018 to allow businesses to upgrade to Smart Manufacturing facilities. Further to this, shortage of cheap or low-skilled labour in the local manufacturing sector will prompt industry players to turn to new disruptive technologies to mitigate the problem,” he said.

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WHY MALAYSIA?

The Malaysian Investment Development Authority (MIDA) is the main government agency responsible for the promotion of investments in the country. “MIDA is the first point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia,” said Vinothan Tulisinathzan. He said the 11th Malaysia Plan (2016-2020) identifies three catalytic subsectors, namely chemical, electrical and electronics, and machinery and equipment, while two subsectors of high potential growth, namely aerospace and medical devices have been identified to drive the growth of the manufacturing sector. "There are ample investment opportunities in the manufacturing sector for EU companies. To achieve a high-income status, Malaysia must attract high-tech based, capital intensive and knowledge-driven industries,” he said. “Here is where Industry 4.0 comes in. Areas such as electrical and electronics, machineries, smart logistics and ICT services and support are vital to this growth. Connectivity, decentralisation and autonomous are fundamentals that can make Industry 4.0 a success for the nation.” He acknowledged that IoT deployment in the country is still at an early stage but Malaysia is seeing steep growth in the category. “For example, BMW Group Malaysia last May opened the door to its new Regional Parts Distribution Centre. It is a pioneer in adopting IoT technology in Malaysia,” he said. Vinothan also pointed out that Malaysia offers some attractive incentives such as business owners can apply for the Pioneer Status to enjoy tax exemption on their income ranging from 70-100% for a period of five or ten years. 

“MIDA IS THE FIRST POINT OF CONTACT FOR INVESTORS WHO INTEND TO SET UP PROJECTS IN THE MANUFACTURING AND SERVICES SECTORS IN MALAYSIA.” Vinothan Tulisinathzan

Malaysia

YOUR PROFIT CENTRE IN ASIA

Malaysia is a vibrant economy. Talk to MIDA and discover how Malaysia can be your Profit Centre in Asia. For more information, please visit www.mida.gov.my or e-mail to investmalaysia@mida.gov.my

1

st

Pro-Business Government

Young, Trainable and Educated Labour Force

Liberal Business & Investment Environment

Sound Banking System

Political and Economic Stability

Quality of Life

Follow us on mobile apps & social media

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IP Protection

Well-Developed Infrastructure/ Connectivity

Good Track Record

2

nd

“Most Attractive Emerging Market in Asia”

“Ease of Doing Business within ASEAN”

(Bloomberg’s Emerging Market Scorecard, 2018)

(World Bank’s Doing Business Report, 2018)

2

nd

“Global Competitiveness among ASEAN Countries” (World Economic Forum’s Global Competitiveness Report, 2017/2018)

3

rd

“Global Offshoring Destination” (A.T. Kearney Global Service Location Index 2017)


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EU DAY TALENT ROADSHOW & CAREER FAIR PULLS IN STUDENTS The inaugural EU-Day Talent Roadshow and Career Fair 2018 – a platform for businesses and talent to converge – will likely be the first of many. Held at three locations, both companies and students gave it the thumbs up.

W

hile Malaysia has emerged as a regional hub for some European businesses, foreign companies report that sourcing the right talent has become an issue. “We are seeing a bit of a gap – we don’t find enough talent,” H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, told the EUMCCI Review. The mismatch stems from a number of factors. Among them, places of higher learning churn out bright students who may not be well-equipped to tackle the real challenges at work. “Companies need to convey to places of higher education the requirements and needs of the working world so that universities can adapt their curriculum to suit current needs,” added H.E. Maria Castillo who was the guest of honour at the EU-Day Talent Roadshow and Career Fair 2018 in Taylor’s University recently. “We are

placing businesses and students together. This is the heart of what we are doing here today,” she said, adding that the career fair must also facilitate a continuous dialogue so that talent will remain relevant to companies. At the Talent Roadshow, organised by the EUMCCI and SEBSEAM-M, and co-funded by the EU, Malaysian undergraduate and graduate students from three major universities had the opportunity to get acquainted with top European companies. The event saw up to several European companies setting up booths in Universiti Sains Malaysia, Taylor’s University Malaysia and University of Malaya. Students had the chance to meet recruiters from these companies which offered job and internship opportunities. Some of these companies carried out employer branding to let students know more about the company. The fair also saw a number of 20-minute ‘career talks’. These sessions

L-R: Jari Niemi from the Malaysian Finnish Business Council, H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, Sandy Tan, Director of Career Services – Taylor's University and Prof JS Perry Hobson, Pro Vice Chancellor – Global Engagement, Taylor’s University. Students gather at a booth as they are facilitated by an exhibitor.

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H.E. Dr. Michael Postl, Austrian Ambassador to Malaysia (left) with Daniel Bernbeck and Professor Ir Dr Abdul Aziz (second from right) share a light moment with an exhibitor.

Daniel Bernbeck, Executive Director, Malaysian-German Chamber of Commerce and Industry and board member of EUMCCI (third from left), H.E. Dr. Michael Postl, Austrian Ambassador to Malaysia (second from right) and Professor Ir Dr Abdul Aziz, Dean, Faculty of Engineering, University of Malaya (right) pose with staff of Tencate.

Staff from Siemens Malaysia Sdn Bhd take the time to promote the company to students.

A participant from BMW attends to a student in Taylor’s University.

WHAT SOME OF THE EXHIBITORS SAID • JOWAT GROUP is a global

manufacturer and supplier of industrial adhesives for applications in various

At the BMW booth.

industries. At the fair, Negeri Sembilan-based Jowat Manufacturing (SEA) Sdn Bhd was keen to meet chemical and mechanical engineering students. Sow Cher Wai, HR Manager, was happy with the student turnout. He took to the stage during the afternoon

session and spoke on ‘The Dos and Don’ts during an Interview’.

• SIEMENS is a technology

powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for over 170 years. Susha Rubene HR Talent Acquisition, Siemens Malaysia Sdn Bhd said the company welcomes interns in finance, accounting and engineering.

• TECHNIPFMC is a global

Sow Cher Wai, HR Manager of JOWAT, speaking on ‘The Dos and Don’ts during an Interview’.

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Infineon Technologies encourages students to apply for its internship programme.

leader in subsea, onshore/ offshore and surface projects. Through innovative technologies the company offers solutions for developing oil and gas resources. TechnipFMC Malaysia HR Executive Nur Awatif said the company had openings in its internship programs. Students were encouraged to drop their

CVs at the company’s website. Woo Soo Kheong, Senior Process Engineer, said he was happy to be part of the EU-Day Talent Roadshow in University of Malaya. He joined Technip after the company did a recruitment drive when he was a student in the university several years ago.

INFINEON TECHNOLOGIES, a producer of semiconductor solutions, has 37,500 employees worldwide. Its Malaysian operations, based in Melaka, sees the full production value chain and end-to-end semiconductor manufacturing process. Its portfolio ranges from technologies used in the automotive industry to power management, multimarket, chipcards and security. Intan Senin from the staffing section said the company saw good response from students at


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STMicroelectronics staff at their booth.

TechnipFMC staff took the opportunity to promote the company at the talent fair.

gave students tips on attending interviews, engineering and production trends, and industry innovation. Prof JS Perry Hobson, Pro Vice Chancellor – Global Engagement, Taylor’s University, in his welcoming speech, said the university is taking steps to get its students to become more international. Students are exposed to ‘disruptions’ with new technologies aimed at making them more competent in today’s job market. Jari Niemi from the Malaysian Finnish Business Council, who was at the career fair in Taylor’s, said that there are about 2,000 companies in Malaysia with relations to Europe. It is imperative for today’s workforce to be open to different cultures and to be able to adapt to different working environments. “While good grades are important, companies are also on the lookout for talent that have a good understanding of the region, with a good grasp of the English language as well

the fair, many of whom enquired about the company’s internship programme. Infineon has openings in Engineering, IT and Business Administration.

HAUNI is a supplier of technologies, and technical and consultancy services for the international tobacco industry. The company is the founding member of the Koerber Group, a leading international technology group with 12,000 employees worldwide. Jnee Ng Huey Chen, HR Manager, Hauni Malaysia Sdn Bhd, said several students have registered with the company indicating their interest in working for the company. “We are looking for students with project management knowledge, someone who has the experience to plan, coordinate and execute projects,” she said.

• MÜHLBAUER specialises

in high-tech equipment and automisation solutions for the semiconductor backend industry. Racheal Lim, Human Resources Manager, said the company takes in interns throughout the year. “We want students in the fields of mechanical, electrical and electronics and mechatronics. We are also offering internship programmes for business management and international business.” The company offers the Malaysian Skills Advanced Diploma in Mechatronics. Upon completion of the programme students will be selected for a three-and-a-half-year apprenticeship contract.

• STMICROELECTRONICS, a

French-Italian electronics and semiconductors manufacturer provides a spectrum of

as European languages. It’s not only about technology,” he stressed. Students, he explained, may have the theoretical skills but they do not have the sufficient practical skills needed to succeed in the workforce. Hence, cooperation between places of higher learning and companies is necessary. He said that although the education system in Malaysia has developed a lot, it still has some catching up to do as the workplace is constantly upgrading itself. “It is not enough for graduates to come out of school with all As. They must also be committed to lifelong growth and self-development.” Meanwhile, at the University of Malaya, guest of honour H.E. Dr. Michael Postl, the Austrian Ambassador to Malaysia, urged students to engage with the EU companies that were present at the fair. “A face-to-face meeting is important. This is an opportunity for you, grab it,” he said. Daniel Bernbeck, a board member of the Chambers and Executive Director, Malaysian-German Chamber of Commerce and Industry, was impressed with the setup of booths in University Malaya. “It is important that we offer this platform for industries to meet students and vice versa,” he said. While there is no shortage of talent, he stressed that graduates must improve on their skills level. In this light, internships, practical stints as well as apprentice programmes are key. One plus point the country offers is its multi-ethnic workforce. This should be embraced and used to improve working life, he said. The overall atmosphere at the three universities were positive. The teams from the EU-Malaysia Chamber as well as the places of higher learnings felt that this initiative should be the first of many. “For the future initiative we need to expand to more than this year’s three locations,” said H.E. Maria Castillo Fernandez. 

electronics applications with innovative semiconductor solutions for Smart Driving and the Internet of Things. Its plant in Muar has grown from labour-intensive operations to the current state-of-the-art manufacturing facility. Kasturi Chandran, HR Manager, STMicroelectronics Sdn Bhd, said the company was open to hiring fresh graduates as well as interns. At University Malaya she met quality students in the Engineering line.

TENCATE GEOSYNTHETICS is a multinational company with more than 60 years of global leadership in the geosynthetics industry. Through the processing of synthetic raw materials, TenCate develops, manufactures and provides innovative geosynthetics and industrial technical textiles worldwide.

In Asia, TenCate Geosynthetics is headquartered in Malaysia with manufacturing facilities in Malaysia and China. Lim Chio Choon, HR Manager, said besides promoting the company, it welcomes mechanical and electrical engineering students as interns, and civil engineers to apply for a position.

ROCHE Roche is a pioneer in pharmaceuticals and diagnostics focused on advancing science to improve people’s lives. At the roadshow the company was hoping to pair up with IT and Finance students. Christina Anthony, from the Talent and Acquisition department, said the company is interested in participating in other career fairs with the Chambers. It can hold mock interviews that can benefit the students. EUMCCI REVIEW

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FINDING THE RIGHT TALENTS FOR MALAYSIA’S FUTURE For Malaysia to realise its vision of becoming a developed nation, it must address the problem of talent shortage. The aerospace industry, for example, is expecting to grow, but without the right workers, Malaysia may miss the opportunity to make a mark in this industry.

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World Bank report cited by The Edge newspaper article titled “Industry Academia Roundtable: Filling the Talent” pipeline for the E&E sector said that 62% of Malaysian firms face difficulty in finding talent with the right skills, while 48% of companies have identified a lack of talent as a constraint for future growth. Ever since the announcement of the Economic Transformation Programme, Malaysia has been in a race to produce a highly skilled workforce. The former Human Resources Minister Datuk Richard Riot was reported in a newspaper as saying that Malaysia is on the right track to produce sufficient skilled workers by 2020 as the country strives to reach a high-income status nation by then. He pointed out that in 2015, only 28% or 3.4 million people out of the 14.8 million workforce in Malaysia were considered skilled. “But in the last two years, we managed to

Naguib Mohd Nor, Managing Director of Strand Aerospace Malaysia.

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raise it to 31% of the workforce presently. The Government aims to increase it to 35% or 5.3 million of the workforce by 2020 in order to be a developed nation,” he said. The Human Resource Development Fund introduced a scheme known as RPEL (Recognition of Prior Experimental Learning Scheme) in 2009 especially for workers in the Bottom 40 (B40) income group. This training programme gives a diploma to skilled workers who have no paper qualification, thus enabling them to join the ranks of skilled workers. This recognition enables them to receive better pay which reflects their skills and experience.

INDUSTRY ACADEMIA COLLABORATION (IAC) IAC has been adapted in many industrialised countries for decades, but in Malaysia it was formally launched in April 2015, a collaborative effort of the Malaysia Investment Development Authority, Ministry of Education and Talent Corporation Malaysia Bhd. IAC’s aim is to “bring employers into universities to hone the technical and soft skills of industry-ready graduates.” IAC gives the opportunity for “employers and universities to work together to address talent policies via both short-term and long-term strategic interventions to accommodate both employers’ different talent policies and universities’ challenges”. On its website, TalentCorp states that IAC currently collaborates with 21 employers and 13 higher learning institutions in two main sectors, Electrical & Electronics and Global Business Services.

AEROSPACE INDUSTRY EXPERIENCE Not many people realise that the aerospace industry in Malaysia is more than 30 years old. Malaysia is currently home to some important local and international players. Some of the international companies that have a presence in Malaysia are Strand Aerospace Malaysia, AgustaWestland, Rolls Royce, RUAG Aviation, Airfoil Services and Safran to name a few. Naguib Mohd Nor, Managing Director of Strand Aerospace Malaysia, in an interview to the website FMT in August 2017, said that Malaysians underestimate the aerospace industry in the country, lamenting that most people think it involves only maintenance, repair and overhaul services. The Malaysian aerospace industry designs and builds key components of some of the world’s most advanced civilian and military aircraft, he revealed. Strand Aerospace for instance, designs components for aircrafts like the Airbus A320, a passenger aircraft used by Air Asia and other airlines. Naguib, who is also the President of Malaysia Aerospace Association, said that the nature of this industry is that it is highly regulated. “There’s only one standard, which everyone has to meet and meeting this standard requires a lot of expertise and experience,” he said. “Malaysia Aerospace Industry Association (MAIA) and the National Aerospace Industry Coordinating Office (NAICO) are working with agencies such as MARA to address the problem of skilled workers in the industry,” he told EUMCCI Review. NAICO is a unit under the Ministry of International Trade and Industry.


The aerospace industry is also involved with the IAC. “There have been multiple programmes such as the Graduate Employability Training Scheme by MARA and the IKTISAS programme by the Selangor Government. These results have met the immediate requirements, but a longer term strategic solution is needed,” he added.

THE EXPECTED BOOM IN THE AEROSPACE INDUSTRY A ready and steady supply of highly skilled workers is needed, especially since Malaysia has an opportunity to get a large size of the pie in the billion-dollar aerospace industry. Asia Pacific is expected to play a huge part in the aerospace industry as it

will account for 40% of the Airbus global market, thanks to Air Asia being Airbus’ largest A320 customer, said Naguib. He urged the relevant authorities to have a “greater momentum in order to offer a timely response to the emerging industrial requirements”. Strong leadership is required to make the right decisions to address this issue if Malaysia wants to realise its dream of becoming an aerospace hub by 2030. The Malaysian Aerospace Council (MAC) works closely with NAICO and MAIA to put forward its ideas and suggestions to the Government. So far the Government has been responsive to the needs of the aerospace industry. Strong leadership and urgency are needed to address this situation. 

SKILLED TALENT IN SHORT SUPPLY IN ASEAN On 15 May 2018, the CIMB Asian Research Institute organised a roundtable titled, ‘Closing the Talent and Skills Gap in ASEAN’ in collaboration with the ASEAN Business Club (ABC). Chaired by Tan Sri Dr Munir Majid, the panel of speakers comprised Dato’ Hamidah Naziadin, Group Chief People Officer from CIMB Group; Shareen Shariza Dato’ Abdul Ghani,CEO, TalentCorp Malaysia; Soon Ghee Chua, Partner at AT Kearney and head of Southeast Asia; and Dato’ CM Vignaesvaran Jeyandran, CEO, Human Resources Development Fund (HRDF) of Malaysia. The roundtable highlighted that the lack of skilled talent and the serious skill divide in ASEAN is a worrying trend and will have far reaching repercussions for the economy in the future if it is not addressed quickly. The report from the World Economic Forum states that ASEAN is facing a serious skill divide: 55% of Singapore workers are highly skilled, followed by Malaysia at 25%, Philippines at 24% and Thailand at 14%. Highly skilled workers in Vietnam, Indonesia, Myanmar, Laos and Cambodia range between 4% and 10% only. Some of the solutions that were put forward to close the skill divide gap and to improve the number of skilled workers in ASEAN were: • It is crucial for the government to introduce education reforms at the national level to produce the workforce that is suitable for Industry 4.0. Encouragement and importance must be given to the study of science, so that students can pursue this at tertiary level. Science students are the pipeline to workers in science, technology, engineering and mathematics (STEM). Quality of teachers has to be improved at school level so that the quality of students who enter the university will be good. • Intra-ASEAN talent mobility, especially for skilled professionals, must be implemented. ASEAN Economic Community (AEC) envisions free movement of skilled labour within the bloc. Unfortunately, this has not been realised yet. “Only with true intra-Asean talent mobility, especially for skilled professionals, will ASEAN be able to fully optimise its human capital potential,” said Tan Sri Dr Munir who chaired the discussion.

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NETWORKING COCKTAIL SESSION

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UMCCI recently hosted a networking cocktail session which brought together European Union exhibitors who took part in the 21st Southeast Asian Healthcare-Pharma & Cleanroom show held at the Kuala Lumpur Convention Centre from 14 to 16 May. The EU Pavilion featured exhibitors from Finland, France, Germany, Latvia, Sweden and UK who showcased their latest products and technologies related to healthcare. More than 50 people including H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, several EU ambassadors, EU Trade Counsellors and exhibitors attended the networking session at the EU Pavilion. H.E. Maria Castillo Fernandez, accompanied by Roberto Benetello, CEO of EUMCCI and other VIPs, also visited the EU exhibitors’ booths. 

MEMBERS’ APPRECIATION EVENING

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he EUMCCI held its annual year end evening of appreciation for its members and stakeholders at the Sheraton Imperial Hotel in Kuala Lumpur in December. The event was attended by about 80 people who enjoyed the cocktails and fabulous spread of cuisine while mingling and networking with one another. Lucky draws were also held. The main sponsor for the event was Jet Airways and other sponsors were Hammam, Avis and Sheraton Imperial Hotel. 

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Corporate Partner News TAN CHIA MIN & PARTNERS MALAYSIAN BOUTIQUE LEGAL FIRM WITH A GLOBAL PERSPECTIVE Tan Chia Min & Partners, a Malaysian boutique law firm, provides an extensive range of legal and commercial services to local and international corporations with business interests throughout this region. Its principal service area includes Merger & Acquisitions, Corporate Matters, Franchise Law, application for Franchise Licence and & Corporate Litigation cases. Tan Chia Min & Partners is a legal firm with a global perspective that offers customised, practical and high quality legal solutions. This is achieved via three key management principles: recruiting, developing and retaining the best legal professionals to maintain the highest standard of legal services. The firm endeavours to achieve a high degree of business efficiency by maintaining a productive business operation that is capable of continuously generating good quality services for its client. Lastly and most importantly, it observes a high standard of professionalism, integrity and ethics that is expected of the legal profession. It has excellent research facilities for its legal team. Technology is extensively used to improve the quality of legal services it provides to its clients. For instance, the firm’s lawyers have direct access to well-established international online legal research providers such as LexisNexis. It also has a large law library that houses numerous reference texts

which are constantly and consistently updated in line with the latest revisions in law. Its lawyers have a comprehensive continued legal education programme within the firm and are encouraged to attend conferences and seminars to keep abreast with the current legal issues and topics. Tan Chia Min & Partners is also affiliated with the Association of Service Industries in Taiwan to provide legal services and assistance to overseas clientele (which are based in Malaysia) on various legal issues, which they encounter or could potentially encounter in Malaysia.

NEW GM AT DOUBLETREE BY HILTON KUALA LUMPUR Hilton Worldwide recently appointed Stephen Richard Magor as the General Manager of DoubleTree by Hilton Kuala Lumpur. As the new General Manager, he will support Jamie Mead, Regional General Manager for Malaysia, in overseeing all aspects of the 538-room hotel’s operational management. Magor was the General Manager of DoubleTree by Hilton Shenyang, China, prior to his appointment in Kuala Lumpur, and he has more than 30 years’ industry experience having worked in the Middle East, Asia Pacific and Europe. During his tenure at Shenyang, Magor’s relentless drive for achievement had created a service culture at the property that improved overall guest experience, and demonstrated his leadership in rallying his team in achieving results to become the market leader in terms of occupancy and popularity. Magor, who began his career in the hospitality industry as a chef, is expected to continue DoubleTree by Hilton's CARE culture – embodying strong and vibrant tradition of simple, timeless values which vulcanise into the brand’s proud way of doing good business. The CARE culture has been the key behind the formulation and implementation of strategies to deliver product and service excellence crucial to enhancing the property's reputation as a leading accommodation of choice. On his appointment, Magor said, “I look forward to

leading the team at DoubleTree by Hilton Kuala Lumpur. I’m delighted and privileged to continue playing an influential role in the development and look forward to many more fulfilling years of service with the team and reinforce our impressive track record by exceeding guest expectations and offering unique, world-class service for many years to come. I’m ready to take on the responsibility of leading the vision, growth and development of the hotel.”

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New Corporate Partners

GARDEN INTERNATIONAL SCHOOL

REERACOEN MALAYSIA SDN BHD

GIS is one of the oldest and most distinguished schools in Malaysia with two campuses: Primary and Secondary School in Mont Kiara, Kuala Lumpur and an Early Years Centre in Desa Sri Hartamas – providing British-based education for students from 3 to 18 years of age. Accredited by the Council of International Schools, GIS has been teaching the National Curriculum of England and Wales with modifications designed to meet the needs of international students. With over 2,000 students, GIS is also the biggest private co-educational school in Malaysia.

Reeracoen, a subsidiary of Japan-based NEO Career Co. Ltd., is a professional recruitment advisory with a service network encompassing Singapore, Thailand, Indonesia, Philippines, Vietnam, Taiwan, China, Hong Kong and India. Reeracoen Malaysia provides support services for fresh graduates and professional candidates to meet the recruitment needs of Malaysian companies through its domestic branches situated in Kuala Lumpur and Penang.

Person-in-charge: Mr. Mark Ford, Headteacher Address: 16, Jalan Kiara 3, Off Jalan Bukit Kiara,

50480 Kuala Lumpur. Tel: +603 6209 6888 Email: admissions@gardenschool.edu.my Website: www.gardenschool.edu.my

Person-in-charge: Mr. Jordache Wee, Regional Business Development Address: Suite 11.02, Level 11, Menara Weld, No. 76, Jalan Raja Chulan, 50200 Kuala Lumpur. Tel: +603 2020 1885 Email: jordache.wee@reeracoen.com.my Website: www.reeracoen.com.my

SWISS MALAYSIAN BUSINESS ASSOCIATION

JAS WORLDWIDE (M) SDN BHD

The Swiss Malaysian Business Association (SMBA), a non-profit making organisation, was set up in May 2000 to benefit Swiss or Malaysian companies or individuals having an interest to promote business between the two countries. The close and fruitful business ties between the two countries date back to 1887 and was spearheaded by the Swiss trading firm, Diethelm & Co. Another well-known Swiss company, NestlĂŠ, began its operations in Malaysia as the Anglo-Swiss Condensed Milk Company in Penang in 1912. In 1939 Zuellig Pharma established a subsidiary in the Peninsula as a step towards its regional expansion in Southeast Asia. Currently, more than 80 companies with Swiss equity are operating in Malaysia. Among them are Nestle, DKSH, Roche, ABB, Zuellig Pharma and SR Technics.

Established in 2005 in Kuala Lumpur, JAS Malaysia is a privately owned international freight forwarder and logistics provider. The company offers state-of-the art door-to-door air and ocean logistics services, with vertical expertise in various industries such as aerospace, automotive, electronics, EPC projects, fashion, government logistics, oil & energy, and telecommunications. JAS also provides a diverse range of services, including warehousing and distribution, air and sea chartering, brokerage, marine insurance, in-house innovated supply chain software and logistic engineering consulting, among others.

Person-in-charge: Mrs. Aileen Lim Chan Address: B-5-8, Plaza Mont Kiara, 50480 Kuala Lumpur. Tel: +6012 742 8799 Email: info@smba.org.my Website: https://smba.org.my/

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Person-in-charge: Mr. Mervin Lin, Managing Director Address: A-36-1, Tower A, Menara UOA Bangsar,

No. 5, Jalan Bangsar Utama 1, 59100 Kuala Lumpur. Tel: Email: mervin.lin@jas.com / bob.tan@jas.com Website: www.jas.com


EUMCCI REVIEW

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New Corporate Partners

OAKWOOD

ROUNDTABLE ON SUSTAINABLE PALM OIL

Oakwood Hotel & Residence Kuala Lumpur is located on Jalan Ampang, stone’s throw away from KLCC and Bukit Bintang areas. The Hotel offers 71 Deluxe rooms,155 OneBedroom Deluxe Apartments, 25 One-Bedroom Premier Apartments and one Two-Bedroom Apartment. There are also laundry facilities and high speed internet provided for the convenience of the guests. Coffee & tea making facilities and safe deposit boxes are in every room with the addition of a kitchenette in the Deluxe Apartments. The Premier Apartments have a full-sized fridge and stove. Our core business is corporate housing for the expatriate staff for mid to long-term stays. There are also five meeting rooms to host various types of events ranging from seminars to cocktails. The capacity is from 24 to 100 persons and the catering team is always on hand to deliver discreet and efficient service.

Roundtable on Sustainable Palm Oil (RSPO) is a not-for-profit, international membership organisation that unites stakeholders from the 7 sectors of the palm oil industry to develop and implement global standards for sustainable palm oil. The seven sectors are oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/ investors, and environmental and social non-governmental organisations (NGOs). The RSPO has developed a set of economic, environmental and social Principles and Criteria (P&C) which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimise the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

Person-in-charge: Mr. Bennet Chang, General Manager Address: Oakwood Hotel & Residence Kuala Lumpur,

222, Jalan Ampang, 50450 Kuala Lumpur. Tel: +603 2720 3888 Email: general.residence-kualalumpur@oakwood.com Website: www.oakwoodasia.com

Person-in-charge: Ms. Gaya Velayutham Address: A-37-1, No. 5, Jalan Bangsar Utama 1,

UOA Bangsar, 59000 Kuala Lumpur. Tel: +603 2302 1500 Email: gayathri.velayutham@rspo.org Website: www.rspo.org

THE DATAI LANGKAWI

BANYAN TREE KUALA LUMPUR

The Datai Langkawi is a luxury beachfront resort located in Datai Bay, Langkawi which was rated by National Geographic as one of the top 10 beaches in the world. The resort features stylish vistas endowed with a wealth of wildlife of the surrounding ancient rainforest, offering the perfect escape for guests to refresh and reconnect with nature.

Set amidst the heart of Kuala Lumpur's Golden Triangle, Banyan Tree Kuala Lumpur offers a modern city sanctuary with tranquil ambient, iconic towers view and signature local experiences. Opening in June 2018, the urban oasis features 55 rooms and suites with a contemporary flair. It is also home to the award-winning Banyan Tree Spa and four exciting dining venues including a rooftop bar and an exquisite seafood and grill restaurant.

Person-in-charge: Ms. Peggy Foong Address: Jalan Teluk Datai, 07000 Pulau Langkawi, Kedah Darul Aman. Tel: +604 9500 500 Email: reservations@dataihotels.com Website: www.thedatai.com

Person-in-charge: Mr. Anders Dimblad Address: 2, Jalan Conlay, 50450 Kuala Lumpur. Tel: +603 2113 1888 Email: kualalumpur@banyantree.com Website: https://www.banyantree.com/en/malaysia/

kuala-lumpur

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Supported by

BE PART OF THE GLOBAL EVENT FOR CHEFS IN 2018! Malaysia is delighted to welcome the World Association of Chefs to the vibrant city of Kuala Lumpur. World Association of Chefs, the world-renowned trade association for culinary professionals worldwide, will be hosting their eagerly anticipated biennial event, the Worldchefs Congress & Expo, a truly global gathering of the most influential culinary body worldwide. Previously, the distinguished event has been organised in 36 cities and in 2018, will celebrate its 90th anniversary. It offers a thought provoking educational

ORGANISER • Malaysian Exhibition Services Sdn Bhd (UBM MES) A-8-1, Level 8, Hampshire Place Office, 157 Hampshire, 1 Jalan Mayang Sari, 50450 Kuala Lumpur, Malaysia. Tel : +60 3 2176 8788 Fax : +60 3 2164 8786 E-mail : Vicky.Yap@ubm.com

ORGANISER of the EU Pavilion (EU-MALAYSIA CHAMBER OF COMMERCE & INDUSTRY) Suite 10.01, Level 10, Menara Atlan 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel : +603-2162 6298 Fax : +603-2162 6198 E-mail : pervinder@eumcci.com

programme, the international Global Chef, Pastry Chef and Hans Bueschkens Challenges, as well as international showcase. The Worldchefs Congress & Expo provides a focal point for up to 2,000 international delegates to meet, enhance their industry network and be inspired by the leading professionals in the business. The Congress includes four days of action-packed programming between 11 14 July 2018, while the Expo, featuring world-class exhibitors from across the culinary field, runs between 12 - 14 July 2018.

Asia Sales Office (UBM ALLWORLD)

10, Kallang Avenue #09-15 Aperia Tower 2, Singapore 339510. Tel : +65 6233 6777 Fax : +65 6233 6768 E-mail : Veronica.Tay@ubm.com

International Sales Office (UBM ALLWORLD) 16th Floor, 240 Blackfriars Road, London, SE1 8BF, United Kingdom. Tel : +44 20 7560 4340 E-mail : phil.rusbridge@ubm.com


Supported by

BE PART OF THE GLOBAL EVENT FOR CHEFS IN 2018! Malaysia is delighted to welcome the World Association of Chefs to the vibrant city of Kuala Lumpur. World Association of Chefs, the world-renowned trade association for culinary professionals worldwide, will be hosting their eagerly anticipated biennial event, the Worldchefs Congress & Expo, a truly global gathering of the most influential culinary body worldwide. Previously, the distinguished event has been organised in 36 cities and in 2018, will celebrate its 90th anniversary. It offers a thought provoking educational

ORGANISER • Malaysian Exhibition Services Sdn Bhd (UBM MES) A-8-1, Level 8, Hampshire Place Office, 157 Hampshire, 1 Jalan Mayang Sari, 50450 Kuala Lumpur, Malaysia. Tel : +60 3 2176 8788 Fax : +60 3 2164 8786 E-mail : Vicky.Yap@ubm.com

ORGANISER of the EU Pavilion (EU-MALAYSIA CHAMBER OF COMMERCE & INDUSTRY) Suite 10.01, Level 10, Menara Atlan 161B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel : +603-2162 6298 Fax : +603-2162 6198 E-mail : pervinder@eumcci.com

programme, the international Global Chef, Pastry Chef and Hans Bueschkens Challenges, as well as international showcase. The Worldchefs Congress & Expo provides a focal point for up to 2,000 international delegates to meet, enhance their industry network and be inspired by the leading professionals in the business. The Congress includes four days of action-packed programming between 11 14 July 2018, while the Expo, featuring world-class exhibitors from across the culinary field, runs between 12 - 14 July 2018.

Asia Sales Office (UBM ALLWORLD)

10, Kallang Avenue #09-15 Aperia Tower 2, Singapore 339510. Tel : +65 6233 6777 Fax : +65 6233 6768 E-mail : Veronica.Tay@ubm.com

International Sales Office (UBM ALLWORLD) 16th Floor, 240 Blackfriars Road, London, SE1 8BF, United Kingdom. Tel : +44 20 7560 4340 E-mail : phil.rusbridge@ubm.com


Profile for Harini Management Services Sdn Bhd

EUMCCI Review vol. 6 no. 1 - 2018  

EUMCCI Review magazine is the official publication of the European Union Chamber of Commerce (EUMCCI) in Malaysia, produced by Harini Manage...

EUMCCI Review vol. 6 no. 1 - 2018  

EUMCCI Review magazine is the official publication of the European Union Chamber of Commerce (EUMCCI) in Malaysia, produced by Harini Manage...

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